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The Treasury Department's proposed regulations categorize certain traditional clean energy technologies, like wind and solar, as zero-GHG emissions facilities. However, some technologies, such as qualified biogas projects, may not qualify under the new credits due to their emissions profiles. The impending changes in administration and Congress composition add uncertainty to the future of these credits.
Understanding the implications for specific projects is crucial, as clean energy projects are capital-intensive with long lead times. Companies must model different scenarios to determine eligibility and financial impacts. Political and legislative uncertainties, including potential changes under the incoming Trump administration, further complicate the outlook. Businesses should prepare for various scenarios and engage with policymakers to navigate the evolving landscape of clean energy tax credits.
In an article originally published in Environment+Energy Leader, Aruna Kalyanam and Aparna Koneru of EY discuss what organizations operating in this space should consider as a new Congress and administration begin to shape their policy agenda.