H.R.549 - To amend the Internal Revenue Code of 1986 to repeal the clean fuel production credit. (119th Congress)
Summary
H.R. 549 proposes to repeal Section 45Z of the Internal Revenue Code of 1986, which pertains to the clean fuel production credit. This credit incentivizes the production of clean fuels. The bill aims to eliminate this incentive, effective for taxable years beginning after December 31, 2024.
The bill was introduced in the House of Representatives by Ms. Van Duyne and referred to the Committee on Ways and Means. The repeal would remove a specific tax benefit designed to promote clean energy production.
This action reflects a shift in policy regarding support for clean fuel initiatives, potentially impacting the economics of clean fuel production.
Expected Effects
Repealing the clean fuel production credit would likely increase the cost of producing clean fuels. This could lead to decreased investment in clean fuel technologies and production. It might also affect the price of clean fuels for consumers.
Without the tax credit, companies may find it less financially attractive to produce clean fuels. This could slow the transition to cleaner energy sources. The immediate effect would be felt by businesses involved in clean fuel production.
Longer term, the repeal could impact environmental goals and energy independence efforts.
Potential Benefits
- Potentially reduces government spending and simplifies the tax code.
- May lead to a more level playing field among different energy sources by removing a specific subsidy.
- Could encourage innovation in clean fuel technologies that are economically viable without subsidies.
- The removal of the tax credit could lead to a decrease in the tax burden on other sectors or taxpayers.
- The repeal could free up resources for other government priorities.
Most Benefited Areas:
Potential Disadvantages
- Could slow down the development and adoption of clean fuels, hindering efforts to reduce carbon emissions.
- May increase the cost of clean fuels, making them less competitive with traditional fossil fuels.
- Could negatively impact companies and jobs in the clean fuel industry.
- May discourage investment in renewable energy and sustainable technologies.
- Could lead to increased reliance on fossil fuels and contribute to climate change.
Constitutional Alignment
The bill falls under the purview of Congress's power to levy taxes and regulate commerce, as outlined in Article I, Section 8 of the Constitution. The Constitution grants Congress the authority to make laws related to taxation and spending. There is no explicit constitutional provision requiring or prohibiting clean fuel production credits.
The repeal does not appear to infringe upon any specific constitutional rights or freedoms. The bill does not violate any amendments, including the First Amendment regarding religion or speech, or the Second Amendment regarding the right to bear arms.
Therefore, the bill is likely constitutional, as it concerns taxation and does not violate individual rights.
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).