For instance, in December 2023 we discovered how restrictions within the EV tax credit will have an effect on autos with parts made in China. Because of this, beginning in 2024 some car fashions grew to become ineligible for the credit, together with the Ford Mustang Mach-E. (The corporate hasn’t stated precisely why the mannequin misplaced eligibility, however some reporting has advised it’s seemingly as a result of the lithium iron phosphate batteries used within the autos come from the Chinese language firm CATL.)
A few of these specifics get actually sophisticated. The hydrogen tax credit might get twisted up in authorized battles. The total guidelines on credit for sustainable aviation gasoline raised issues that fuels that don’t assist a lot with emissions will nonetheless get funding. The credit for crucial minerals apply solely to processing, to not mining efforts, as my colleague James Temple detailed in his story a few Minnesota mine earlier this yr.
Trying forward, the destiny of the IRA’s applications could rely on the result of the presidential election in November. Vice President Kamala Harris, the Democratic nominee, solid the tie-breaking vote to go the legislation, and he or she would seemingly hold the applications going. In the meantime, Donald Trump, the Republican nominee, has been overtly concentrating on lots of its provisions, and he might do some harm to most of the tax credit included, despite the fact that it might require an act of Congress to really repeal the legislation. (For extra on what a second Trump presidency may imply for the local weather legislation, try this nice deep dive from James Temple.)
The motion definitely isn’t slowing down on the planet of local weather expertise. Trying forward, one main piece of the puzzle we’ll be watching is a possible change to how new initiatives get accredited. There’s a allowing reform bundle winding its means by way of the federal government now, so keep tuned for extra on that, and on every little thing local weather tech.
Associated studying
At our ClimateTech occasion final yr, Leah Stokes, an environmental coverage professor at UC Santa Barbara who was carefully concerned with growing the IRA, spoke with us concerning the legislation. For extra on the way it got here to be and what adjustments we’ve seen to this point, try her phase right here.
