Leftovers Pile up for Year-End Tax Bill Menu

by Laura Weiss (The Hill) There's bipartisan interest in certain tax, trade provisions left out of budget, competitiveness bills -- Tax credits for increasing home energy efficiency, building energy-efficient new homes, hydrogen-fueled vehicles, electric motorcycles, biofuel and alternative fuels like hydrogen or natural gas, along with their refueling property, also expired at the end of 2021. Biodiesel incentives fall off at the end of this year.

There’s a history of GOP support for offering companies tax breaks on clean energy investments, particularly with an all-in approach. The Senate Finance Committee’s top Republican, Michael D. Crapo of Idaho, introduced a bipartisan bill last year to create tax credits for power-producing sites that use emerging energy technology; carbon capture equipment, which can block emissions from burning oil and coal; energy storage technology; and electricity made from clean hydrogen.

Republican Sen. Charles E. Grassley, who’s described himself as “father” of a tax credit for producing wind energy, said he’s interested in the biodiesel tax credit and incentivizing ethanol-based airplane fuel. Grassley’s home state of Iowa is a top producer of ethanol and biodiesel as well as corn and soybeans, the main feedstocks for the two biofuels.

Crapo named R&D expensing as his top priority for a year-end package, and Grassley said it should be the motivator for a deal. READ MORE