Stop the Subsidized Green Energy Scam Act
Summary
H.R. 4118, the "Stop the Subsidized Green Energy Scam Act," proposes to amend the Internal Revenue Code of 1986 to terminate certain production and investment tax credits for wind, solar, and battery energy storage facilities. The bill targets facilities where construction begins after the enactment date of the Act. It aims to eliminate tax credits outlined in sections 48(a)(3), 45Y(b)(1), and 48E(b)(3) of the Internal Revenue Code.
Expected Effects
If enacted, this bill would likely increase the cost of new wind, solar, and battery energy storage projects. This could slow down the development and deployment of these renewable energy technologies. It may also shift investment towards other energy sources.
Potential Benefits
- Potentially reduces government spending and the national debt by eliminating tax credits.
- Could lead to a more level playing field for different energy sources, allowing market forces to determine the most competitive options.
- May incentivize innovation in energy technologies that do not rely on government subsidies.
- Could reduce the complexity of the tax code by removing specific energy-related credits.
- Might decrease the influence of special interest groups seeking to benefit from renewable energy subsidies.
Most Benefited Areas:
Potential Disadvantages
- Could slow down the transition to renewable energy sources, potentially hindering efforts to combat climate change.
- May increase the cost of electricity for consumers if renewable energy projects become more expensive.
- Could lead to job losses in the wind, solar, and battery energy storage industries.
- May reduce investment in energy storage technologies, which are crucial for grid stability and reliability.
- Could make the US less competitive in the global market for renewable energy technologies.
Constitutional Alignment
The bill falls under the purview of Congress's power to tax and spend, as outlined in Article I, Section 8 of the Constitution. The Constitution 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 decision to provide or terminate tax credits is a fiscal policy choice within this constitutional framework. However, the bill's potential impact on interstate commerce and environmental protection could raise questions related to other constitutional considerations.
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).