S.jres39 - Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to Section 45Y Clean Electricity Production Credit and Section 48E Clean Electricity Investment Credit. (119th Congress)
Summary
Senate Joint Resolution 39 (S.J. Res. 39) proposes congressional disapproval of a rule submitted by the Internal Revenue Service (IRS) concerning Section 45Y Clean Electricity Production Credit and Section 48E Clean Electricity Investment Credit. The resolution aims to nullify the IRS rule, preventing it from having any legal effect. This action is taken under chapter 8 of title 5, United States Code, which provides a mechanism for congressional review of agency rulemaking.
Expected Effects
If the resolution passes both the Senate and the House of Representatives and is enacted, the IRS rule regarding clean electricity production and investment credits would be invalidated. This would likely lead to uncertainty for businesses and investors planning projects based on the credits outlined in the disapproved rule. It could also necessitate the IRS to revise or reissue the rule, potentially delaying or altering the implementation of the clean energy tax credits.
Potential Benefits
- Potentially allows Congress to exert greater control over the implementation of tax credits related to clean energy.
- Could lead to a more carefully considered and debated rule-making process regarding clean energy incentives.
- May address concerns that the IRS rule exceeds the scope of authority delegated by Congress.
- Could offer an opportunity to revise the rule to better align with congressional intent or address unintended consequences.
- Provides a check on executive branch agencies through the Congressional Review Act.
Potential Disadvantages
- Creates uncertainty for businesses and investors in the clean energy sector, potentially delaying or discouraging investments.
- May hinder the deployment of clean energy technologies and the achievement of climate goals.
- Could lead to legal challenges and further delays in implementing the clean energy tax credits.
- Potentially undermines the expertise and authority of the IRS in interpreting and implementing tax law.
- May be perceived as politically motivated, undermining confidence in the stability of government incentives.
Most Disadvantaged Areas:
Constitutional Alignment
The resolution invokes Congress's legislative powers under Article I, Section 1 of the Constitution, which vests all legislative powers in Congress. The Congressional Review Act, under which this resolution is brought, is intended to provide a check on the executive branch's regulatory authority, ensuring that agencies do not exceed the authority delegated to them by Congress. The resolution itself does not appear to violate any specific constitutional provision, as it is an exercise of Congress's power to review and disapprove agency rules.
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).