S.1043 - To amend the Internal Revenue Code of 1986 to extend the energy credit for qualified fuel cell property. (119th Congress)
Summary
S.1043 proposes to amend the Internal Revenue Code of 1986 to extend the energy credit for qualified fuel cell property. Specifically, it changes the expiration date of the energy credit from January 1, 2025, to January 1, 2033. The amendment applies to property where construction begins after December 31, 2024.
Expected Effects
The extension of the energy credit aims to incentivize investment in fuel cell technology. This could lead to increased development and deployment of fuel cell systems. Ultimately, it may foster innovation in clean energy and reduce reliance on traditional energy sources.
Potential Benefits
- Encourages investment in fuel cell technology, potentially leading to technological advancements.
- Supports the growth of the clean energy sector, creating new business opportunities.
- May contribute to reduced greenhouse gas emissions and improved air quality.
- Could enhance energy security by diversifying energy sources.
- Provides long-term certainty for businesses in the fuel cell industry.
Potential Disadvantages
- Potential cost to taxpayers due to the extension of the tax credit.
- Possible market distortion if fuel cell technology is favored over other clean energy alternatives.
- Risk that the extended credit may benefit companies without significant environmental improvements.
- Complexity in administering and monitoring the credit to ensure compliance.
- Opportunity cost, as the funds could be used for other energy or environmental initiatives.
Constitutional Alignment
The bill falls under the powers granted to Congress in Article I, Section 8 of the Constitution, which includes 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 extension of energy credits can be seen as promoting the general welfare by encouraging the development and use of cleaner energy sources. There are no apparent conflicts with specific constitutional limitations or protections.
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).