Energy

Regional Clean Hydrogen Hubs

The Regional Clean Hydrogen Hub program will fund grants or cooperative agreements for six to ten hydrogen hubs, which are intended to develop a network of hydrogen producers, consumers, and transportation infrastructure. The Department of Energy (DOE) must fund at least one hub using fossil fuels, nuclear energy, and renewable energy and at least one […]

Biofuel Infrastructure and Agriculture Product Market Expansion

The Inflation Reduction Act provided $500 million for grants intended to “increase the sale and use of agricultural commodity-based fuels through infrastructure improvements for blending, storing, supplying, or distributing biofuels.” Past U.S. Department of Agriculture subsidies for similar projects (such as specialized gasoline pumps designed to dispense higher blends of ethanol) have primarily benefited first-generation […]

Alternative Fuel and Low-Emission Aviation Technology Program

The Inflation Reduction Act created a new $297 million grant program for projects related to the production, transportation, blending, and storage of sustainable aviation fuels, in addition to developing, demonstrating, or applying low-emission aviation technologies. The program will be administered by the Department of Transportation. While qualifying sustainable aviation fuels must reduce lifecycle greenhouse gas […]

Sustainable Aviation Fuel Credit

The Inflation Reduction Act created a new tax credit of up to $1.75 per gallon for sustainable aviation fuel. The credit begins on January 1, 2023, and ends on December 31, 2024. Thereafter, a new “clean fuel” tax credit is due to begin in 2025, providing similar subsidies for sustainable aviation fuel. Fuels qualifying for […]

Clean Fuel Production Credit

New production tax credit of at least $0.20 per gallon, up to $1 per gallon, adjusted for inflation, for fuel produced from 2025-2027. Sustainable aviation fuel could receive credit of up to $1.75/gallon. Tax credit would enter into force after biomass-based diesel tax credit expires in 2024. Carbon intensity of fuels must be less than […]

Passive Loss Limitations Exemption

Passive business activity refers to any activity in which a taxpayer has an economic interest but does not “materially participate.” Normally, taxpayers are allowed to deduct the losses they incur from passive activities (passive losses), but only an amount equal to income generated from the activity. Any excess of passive losses over passive income in […]

Gas Royalty Relief – Deep and Shallow Water Gas

Oil and gas companies that drill on public lands or in federal waters pay royalties for the oil and gas they extract. The amount of royalties they pay depends on the amount extracted, the market price for oil and gas, and the royalty rate. The Deepwater Royalty Relief Act of 1995 (DWRRA) allowed the Secretary […]

Amortization for Certain Pollution Control Facilities

Amortization for certain pollution control facilities provides an option to amortize investments in pollution control equipment for coal-fired electric generation plants over seven years. Amortization is a method of depreciation that recovers investment costs evenly (i.e., straight line depreciation) over the recovery period. The standard recovery period for the conventional type of electric generating equipment […]