Energy Sector Innovation Credit Act of 2021

Hozzl · 2022-12-31T05:05:01Z

Explore the details of House Bill 4720 Energy Sector Innovation Credit Act of 2021 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Taxation. Stay informed on legislative developments.

12/31/2022, 5:05 AM

Summary of Bill HR 4720

Bill 117 HR 4720, also known as the Energy Sector Innovation Credit Act of 2021, aims to provide tax credits to companies that invest in innovative energy technologies. The bill focuses on promoting the development and deployment of clean energy solutions to reduce greenhouse gas emissions and combat climate change.

Under this legislation, companies that invest in qualifying energy projects, such as renewable energy sources like solar and wind power, energy storage technologies, and energy efficiency improvements, would be eligible for a tax credit. The goal is to incentivize private sector investment in clean energy innovation and accelerate the transition to a more sustainable energy system.

The Energy Sector Innovation Credit Act of 2021 also includes provisions to support research and development in emerging energy technologies, as well as measures to promote workforce training and job creation in the clean energy sector. By encouraging investment in clean energy innovation, the bill aims to drive economic growth, create new job opportunities, and reduce the environmental impact of the energy sector. Overall, Bill 117 HR 4720 represents a bipartisan effort to address the urgent need for innovation in the energy sector and transition to a more sustainable and resilient energy system. It seeks to harness the power of the private sector to drive progress towards a cleaner, more efficient, and more secure energy future for the United States.

Congressional Summary of HR 4720

Energy Sector Innovation Credit Act of 2021

This bill adds new tax credits for investment in qualified emerging technology energy property and for the production of electricity from emerging energy technology. The bill defines qualified emerging energy property as property that is constructed, reconstructed, erected, or acquired by the taxpayer and is (1) a facility for the production of electricity from emerging energy technology, (2) carbon capture equipment, or (3) energy storage technology.

The bill also adds a new tax credit for the production of electricity from clean hydrogen. The bill defines clean hydrogen as hydrogen that is produced through a production method for which the rate of the greenhouse gas emission is greater than zero and not greater that 2,500g CO2-e per kilogram of hydrogen produced, or is equal to or less than zero.

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Current Status of Bill HR 4720

Bill HR 4720 is currently in the status of Bill Introduced since July 27, 2021. Bill HR 4720 was introduced during Congress 117 and was introduced to the House on July 27, 2021. Bill HR 4720's most recent activity was ASSUMING FIRST SPONSORSHIP - Mr. Schweikert asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 4720, a bill originally introduced by Representative Reed, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection. as of July 28, 2022

Bipartisan Support of Bill HR 4720

Total Number of Sponsors

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Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

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Policy Area and Potential Impact of Bill HR 4720

Primary Policy Focus

Taxation

Potential Impact Areas

Administrative law and regulatory proceduresAdvanced technology and technological innovationsAir qualityAlternative and renewable resourcesBuilding constructionBusiness expensesClimate change and greenhouse gasesCongressional oversightElectric power generation and transmissionEnergy efficiency and conservationEnergy pricesEnergy researchEnergy storage, supplies, demandEnvironmental technologyGovernment information and archivesIncome tax creditsIndustrial facilitiesNuclear powerProduct development and innovationResearch and developmentRetail and wholesale tradesState and local government operationsTax-exempt organizationsWater use and supply

Alternate Title(s) of Bill HR 4720

To amend the Internal Revenue Code of 1986 to provide investment and production tax credits for emerging energy technologies, and for other purposes.Energy Sector Innovation Credit Act of 2021Energy Sector Innovation Credit Act of 2021

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