To amend the Internal Revenue Code of 1986 to expand the meaning and eligibility of energy communities for purposes of the increased renewable electricity production and increased clean electricity investment credit rates.
Summary
H.R. 6474 aims to amend the Internal Revenue Code of 1986, specifically targeting sections related to energy communities and their eligibility for increased renewable electricity production and clean electricity investment credit rates. The bill seeks to broaden the definition of 'energy communities' to include non-metropolitan statistical areas. This expansion intends to incentivize renewable energy projects in a wider range of locations.
Expected Effects
The primary effect of this bill would be to extend eligibility for certain tax credits to renewable energy projects located in non-metropolitan statistical areas. This could lead to increased investment in renewable energy infrastructure in these areas. It may also shift investment away from areas that were previously eligible but no longer have a relative advantage.
Potential Benefits
- Increased renewable energy development in non-metropolitan areas.
- Potential for job creation in rural communities through renewable energy projects.
- Greater energy independence by diversifying energy sources.
- Reduced carbon emissions through increased renewable energy production.
- Attract investment in non-metropolitan areas.
Potential Disadvantages
- Potential shift of investment away from metropolitan areas.
- Possible increased complexity in tax code administration.
- Uncertainty regarding the actual impact on renewable energy production.
- The effectiveness of the tax credits depends on project viability and market conditions.
- Potential for unintended consequences due to the change in eligibility criteria.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the General Welfare Clause (Preamble), as it aims to promote economic development and energy independence. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts, and excises, which provides the constitutional basis for the tax credits modified by this bill. There are no apparent infringements on individual rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).