Sponsors (7)
The bill offers substantial federal support to accelerate low‑carbon industrial deployment and jobs while imposing large upfront taxpayer costs and design conditions that could favor larger firms, create regulatory complexity, and leave some international commitments dependent on uncertain revenues.
Manufacturers, energy workers, and related firms will get up to $75 billion (FY2027) in grants, rebates, and low‑interest loans to adopt low‑carbon industrial technologies, supporting jobs and U.S. competitiveness.
New low‑carbon producers (including smaller firms) will face lower revenue risk because covered contracts guarantee per‑unit payments tied to strike prices, encouraging deployment and investment.
Workers and nearby communities will benefit from required prevailing wages and community benefits agreements tied to awards, which support local labor standards and community investment.
Taxpayers face large upfront federal spending (roughly $75B at DOE plus $25B for State) that increases federal outlays and could strain budgets if program revenues or returns fall short.
If the carbon intensity charge revenues underperform, the State Department assistance pool and some appropriations are contingent and could be reduced to $0, undermining program continuity and international commitments.
Requirement that eligible firms provide at least 50% project cost‑share may favor larger companies and limit smaller firms' ability to participate.
Based on analysis of 4 sections of legislative text.
Adds a carbon-intensity charge to the tax code and creates a DOE competitive grant/loan program to fund advanced industrial decarbonization.
Official title: To amend the Internal Revenue Code of 1986 to create a carbon border adjustment based on carbon intensity, and for other purposes.
Introduced December 17, 2025 by Suzan K. Delbene · Last progress December 17, 2025
Creates a new carbon-intensity charge in the Internal Revenue Code and sets up a Department of Energy competitive program to fund investments in advanced industrial technologies that lower facility-level carbon intensity. It defines key terms, assigns enforcement/administration roles (EPA as Administrator; Secretary of the Treasury for tax valuation; DOE for grants/loans), and establishes program rules for grants, rebates, and low-interest loans to eligible industrial facilities and operators.