Law unleashes clean energy technologies, advanced energy manufacturing, and transportation electrification while creating millions of good jobs for Tennesseans and all Americans

Media Contact: Elena Brennan, elena@piper-communications.com 

Knoxville, Tenn. (August 31, 2022) — The Tennessee Advanced Energy Business Council (TAEBC), a business-driven organization that champions advanced energy as a job creation and economic development strategy, applauded the passage and signing into law of H.R. 5376, Inflation Reduction Act of 2022, which includes $369 billion in funding for clean energy incentives and technologies, advanced energy manufacturing, and transportation electrification. 

Cortney Piper, Executive Director of the Tennessee Advanced Energy Business Council, issued the following statement in response to the newly-signed law.

“This law is a windfall for Tennessee’s thriving advanced energy economy. The significant climate and energy transformative provisions – including clean energy and carbon management tax credits, investments in energy efficiency and low-carbon materials, energy innovation and cleantech programs, national laboratory infrastructure, clean energy financing, and more – will help expand and strengthen advanced energy entrepreneurs, businesses, and industries, and will serve as a catalyst for job creation and economic development here in Tennessee and throughout the nation.” 

Some of the key advanced energy provisions in the law include:

  • Clean Energy Production Tax Credits
    • New Clean Hydrogen Production Tax Credit (45V)
    • New Advanced Manufacturing Production Tax Credit (45X)
    • New Nuclear Power Production Tax Credit (45U)
    • Extension of Renewable Electricity Production Tax Credit (Section 45)
    • New Clean Electricity Production Tax Credit (45Y)
  • Clean Energy Investment Tax Credits
    • Extension of Energy Investment Tax Credit (Section 48)
    • New Clean Electricity Investment Tax Credit (48E)
    • Extension of Advanced Energy Project Credit (48C)
  • Fuel Tax Credits
    • New Clean Fuel Production Credit (45Z)
    • New Sustainable Aviation Fuel (SAF) Credit (40B)
    • Extension of Second Generation Biofuel Incentives
    • Extension of Biodiesel and Renewable Diesel Credit
  • Clean Vehicle Tax Credits
    • Changes to the Clean Vehicle Credit (30D)
    • New Previously Owned Clean Vehicle Credit (25E)
    • New Commercial Clean Vehicle Credit (45W)
    • Extension of Alternative Fuel Refueling Property Credit (30C)
  • Carbon Management Provisions
    • Enhancement of Carbon Capture and Sequestration Tax Credit (45Q)
    • Funding for Low-Carbon Materials & Buildings programs
    • Funding for Biomass, Carbon Removal, and Forest Management programs
  • Residential Energy Efficiency Provisions
    • Extension and expansion of Credit for Residential Clean Energy (25D)
    • Extension and expansion of Credit for Energy Efficiency Home Improvements (25C)
    • Funding for Home Energy Performance-Based Whole House Rebates (HOMES)
    • Funding for new High-Efficiency Electric Home Rebate Program
    • Grants for Energy Efficiency Contractor Training
  • Energy Innovation Provisions
    • Funding for New Advanced Industrial Facilities Deployment Program under under the Office of Clean Energy Demonstration (OCED) 
    • Funding for infrastructure improvements at the Department of Energy (DOE) National Laboratories
    • Additional funding for DOE’s Advanced Nuclear Fuel Availability program to increase availability of High-Assay Low-Enriched Uranium (HALEU)
  • Clean Energy Financing
    • Additional funding for DOE Loan Programs Office (LPO)
    • New Energy Infrastructure Reinvestment Financing program 
    • Creation and funding of EPA’s Greenhouse Gas Reduction Grant Fund
    • Domestic Manufacturing Conversion Grants to retool existing auto manufacturing facilities for clean vehicles
    • Expanded use of the Defense Production Act for advanced energy products
    • Funding to EPA to support advanced biofuel infrastructure

According to a new analysis, the dollars in the Inflation Reduction Act, when paired with the funds for advanced energy in the 2021 bipartisan Infrastructure Investment and Jobs Act, will deliver a six-fold return on investment of federal dollars in advanced energy growth. 

For more information on advanced energy provisions in the Inflation Reduction Act of 2022, click here. 

About Tennessee Advanced Energy Business Council

TAEBC champions advanced energy as an economic development and job creation strategy. Advanced energy is technology neutral and includes electricity and transportation. Anything that makes energy cleaner, safer, more secure or more efficient is in the tent. No other entity in the state concentrates specifically on this robust sector. We educate public officials and business leaders about Tennessee’s advanced energy economy, establish strategic partnerships to connect assets with opportunities, and inform policy that expands and strengthens the industry. For more information, visit: https://tnadvancedenergy.com/.