Update: As of 16 August 2022 the federal tax credit for solar has been extended. This article has been updated to show the new rates.
President Joe Biden has released a $2 trillion proposal for the American Jobs Plan to rebuild the economy and invest in new jobs. The package would mean major investment in infrastructure and new energy technologies. Ultimately President Biden hopes this would help to rebuild the economy in a sustainable way using while creating more jobs. Perhaps one of the most exciting things included in this proposal is clean energy investments. The American Jobs Plan may mean a bright future for solar energy!
What would The American Jobs Plan invest in?
Funding from the plan would go toward new energy technologies including transportation, housing, and new technologies. President Biden’s goal is to create new American jobs while supporting green industries. Here are some green initiatives the plan would invest in.
The energy grid
For starters, President Biden wants to invest $100 billion in the grid to transmit cheaper, cleaner energy. His plan would incentivize 20 gigawatts of high voltage transmission. It would establish a Grid Development Authority at the Department of Energy to facilitate new power projects.
A new Energy Efficiency and Clean Electricity Standard (EECES)
The EECS would promote healthy energy market competition, lower electricity bills, and incentivize efficient use of existing infrastructure. It would cut electricity pollution and leverage carbon pollution-free energy from hydropower and nuclear sources. New standards would help improve worker and public safety and promote environmental justice.
Clean Energy Incentive Extension
The Investment Tax Credit* (ITC) and Production Tax Credit (PTC) are government-backed incentives that help taxpayers install wind and solar energy systems. The PTC is typically for wind projects. The ITC is an attractive tax incentive for homeowners who go solar. It allows them to deduct up to 30% off their federal taxes. Biden’s new proposal would extend these incentives for 10 additional years!
Electric Vehicles (EVs) and transportation
There would also be a $174 billion investment to support electric vehicle technology and jobs. The investment would help support EV companies in producing new vehicles and batteries. A portion of the investment would go toward consumer rebates and tax incentives to make EVs affordable for everyone. The plan also includes funding a national network of 500,000 EV chargers by 2030. For public transportation, the plan would replace 50,000 diesel transit vehicles and 20% of yellow school buses with electric alternatives. The goal is to eventually have 100% electric school buses. Finally, the US Postal Service would also get funding to electrify their fleet, as well as other federal vehicles.
Environmental Conservation
The plan dedicates $10 billion toward new jobs to conserve public lands and waters. It would create a Civilian Climate Corps to advance environmental justice while creating new union jobs for Americans. The plan would also provide funding for water efficiency and recycling programs. Learn more about recycling and what you can do.
Energy-efficient infrastructure
Affordable housing was a priority during his presidential campaign, but Biden now looks to take it a step further to provide energy-efficient affordable housing. Energy-efficient homes and buildings, including schools, are part of the rebuilding plan. Electrified housing units would be made available to underserved communities nationwide. Additionally, $100 billion would go toward modernizing schools to make them safer and more energy efficient. Community college infrastructure would receive $12 billion to improve energy efficiency and safety.
How would The American Jobs Plan help the environment?
The green stimulus in 2009 was the last big clean energy spending bill, and it dramatically boosted solar and wind energy. Environmentalists hope this plan will have a similar effect, especially for solar energy. By investing in clean energy, President Biden would help reduce GHG emissions such as carbon dioxide and methane. A stronger energy grid along with support for solar would help many homeowners make the switch and contribute to the fight against climate change. New charging stations and electric car investments would help incentivize more people to invest in an electric car, cutting tons of pollution annually.
How is this The American Jobs Plan different?
The Biden administration is working toward uniting both parties through this heavily infrastructure-based plan. Biden’s predecessor President Trump actually began the conversation of infrastrastructure investments, gaining the support of the Republican party. President Biden now hopes to bring that support to a new plan that invests in infrastructure sustainably and in favor of green energy. He is also taking a different approach than Barack Obama. During his presidency, Obama passed the Clean Power Plan which regulated greenhouse gas emissions (GHG) from power plants. President Biden hopes that investing into new technology and clean energy hardware will ultimately lead to a reduction of GHGs and a net-zero country by 2035.
Where is the funding coming from?
The proposal is still early in the works but the Biden administration is looking to fund the infrastructure plan through a corporate tax increase from 21% to 28% for 15 years. President Biden would also set a 21% minimum tax on global corporate earnings. These taxes would be enough to fund the jobs plan without other tax* increases.
Freedom Forever is excited for the bright future The American Jobs Plan could bring
You may not be surprised to hear that Freedom Forever is excited for the potential infrastructure plan. Not only does it address many environmental concerns, but it puts clean energy at the top of the list. We support any initiatives that make clean energy affordable and available to homeowners nationwide. Clean energy, such as solar, is key to fighting the climate crisis. We are happy to help you throughout your solar journey and your fight against climate change.