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- The Treasury Department issued new details on President Biden’s Made in America tax plan.
- The elimination of subsidies on fossil fuels is a key component.
On Wednesday, the U.S. Department of Treasury released new details on President Biden’s Made in America tax plan.
Among some of the pillars of the plan are tax incentives for clean energy production as a replacement for fossil fuel subsidies.
By eliminating the fossil fuel subsidies, the new tax plan will support the adoption of burgeoning green technologies like adopting electric vehicle usage and sustainable sources of energy like wind and solar power.
“The President’s tax plan would remove subsidies for fossil fuel companies, while providing incentives to reposition the United States as a global leader in clean energy and to ensure that our infrastructure is resilient to storms, floods, fires, and rising sea levels,” the report reads. “Targeted investments in a clean and resilient energy future would also boost jobs for American workers and address environmental injustices.”
In conjunction with a 10-year production tax and investment tax credit for clean energy generation and storage, the tax plan is slated to help the U.S. become carbon neutral by 2035, a Biden campaign promise.
Polluting entities would also have to pay fines to the U.S. Environmental Protection Agency (EPA) depending on damages.