Apr 1, 2024 - Energy & Environment

Biden's latest climate move: $4B in "clean" tax credits

Illustration of two people's hands at a table covered in blueprints and a model windmill surrounded by graphic shapes filled with contour lines pattern

Illustration: Annelise Capossela/Axios

The Biden administration hopes to provide $4 billion in tax credits for over 100 projects across 35 states to boost manufacturing of "clean" energy equipment and other uses.

Why it matters: The announcement, which came on Friday from the Energy and Treasury Departments, marks the latest push to distribute unprecedented incentives (and cash) for climate-friendly domestic projects.

State of play: The so-called 48C tax credit selections span hydrogen-related equipment like electrolyzers; grid and offshore wind components; battery equipment and much more, per the Energy Department.

  • Other uses include critical materials-related projects and industrial decarbonization.

Zoom in: It's from a credit program created in 2009, but infused with $10 billion under the 2022 climate law. A big chunk is slated for projects in areas with closed coal mines or plants.

Flashback: It comes just days after the Energy Department announced preliminary selections for up to $6 billion in grants to help slash carbon from heavy industries like metals, cement and chemicals.

Yes, but: We don't yet know the full specifics of projects that will receive this round of the 48C investment tax credits of up to 30%, a reveal that comes later in the process.

What's next: To get the tax subsidy, selected projects have a two-year window to submit more info, and once "certified," they must be running within two more years.

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