Sponsors (4)
The bill trades clearer, simpler statutory language and some administrative predictability (including a specific benefit for Alaska Native Corporations) against the removal of multiple energy and investment tax credits that will raise costs for project owners, likely slow clean-energy deployment, limit certain refundable/transferable credit pathways, and create short-term tax administration burdens.
Taxpayers: the bill simplifies the Internal Revenue Code by removing a number of overlapping energy and investment credit provisions, reducing compliance complexity for some filers.
State and local governments: clarifying the timing and irrevocability rules for Sec. 6417 elections improves administrative predictability when claiming credits.
Alaska Native Corporations: an explicit statutory cross-reference clarifies eligibility under Sec. 6417, reducing ambiguity for ANCs.
Owners, developers, and taxpayers: repeal or removal of multiple energy and investment tax credits raises after-tax costs, reduces returns on renewable and carbon-capture projects, and is likely to slow clean-energy deployment and private investment.
Recipients of refundable or transferable producer credits: changes to Sec. 6417 and 6418 may limit or complicate access to refundable/transferable credit pathways, reducing liquidity and financing options for projects and small businesses.
Tax administration and taxpayers: repeals and conforming edits will create short-term transition costs and require Treasury/IRS rulemaking, increasing administrative burden and taxpayer uncertainty for returns filed after 2024.
Based on analysis of 2 sections of legislative text.
Repeals multiple federal energy and investment tax credits and makes conforming edits across the Internal Revenue Code to remove those credits.
Introduced January 9, 2025 by Scott Perry · Last progress January 9, 2025
Repeals a broad set of federal energy and investment tax credits and makes many conforming and technical edits across the Internal Revenue Code to remove references to those credits. The bill eliminates multiple specified investment and energy credits from the general business credit rules and updates cross‑references and definitions so the tax code reflects those repeals. The changes directly affect taxpayers who claim these credits, businesses and projects that rely on them (notably in energy and housing), financial intermediaries that monetize credits, and the Treasury/IRS which must implement and administratively adjust. The text does not specify an effective date in the provided summary, so timing and transition rules are unclear from the excerpt provided.