H.R.3330 - Energy Freedom Act (119th Congress)
Summary
H.R.3330, the Energy Freedom Act, seeks to repeal various green energy tax subsidies within the Internal Revenue Code of 1986. The bill targets credits and incentives for energy-efficient home improvements, renewable energy, clean vehicles, alternative fuels, sustainable aviation fuel, and carbon sequestration, among others. It aims to eliminate government support for these initiatives, potentially shifting the energy market dynamics.
Expected Effects
If enacted, the Energy Freedom Act would eliminate numerous tax credits and incentives designed to promote green energy technologies and practices. This could lead to reduced investment in renewable energy sources and a potential increase in reliance on traditional fossil fuels. The repeal would also impact consumers and businesses that have benefited from these subsidies.
Potential Benefits
- Potential reduction in government spending and national debt.
- Could lead to a more market-driven energy sector, potentially fostering innovation without subsidies.
- May lower energy costs in the short term if fossil fuels become more competitive.
- Could simplify the tax code by removing numerous energy-related provisions.
- Might encourage energy companies to become more efficient and competitive without relying on government support.
Most Benefited Areas:
Potential Disadvantages
- Reduced investment in renewable energy and clean technologies.
- Potential slowdown in the transition to a sustainable energy economy.
- Increased reliance on fossil fuels, potentially exacerbating climate change.
- Job losses in the renewable energy sector.
- Higher long-term energy costs if renewable energy development is stifled.
Constitutional Alignment
The bill's alignment with the Constitution primarily concerns Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. The repeal of tax credits falls under Congress's authority to modify the tax code. The debate centers on whether these subsidies promote the general welfare or distort the market.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).