tax credits
Newsletter
Credit: David Thielen/Unsplash
Biden's climate law may boost oil production through enhanced recovery
Oil companies could use tax credits from the Inflation Reduction Act to extract more crude from existing wells through enhanced oil recovery, which injects CO2 underground to dislodge oil.
In short:
- The Inflation Reduction Act boosts tax credits for storing CO2, incentivizing its use for oil recovery.
- Critics argue weak oversight allows companies to claim tax benefits without effectively storing CO2.
- Environmentalists say enhanced oil recovery (EOR) undermines climate goals by encouraging fossil fuel production.
Key quote:
“There’s a lot of money from the [Inflation Reduction Act], and a lot of concerns that taxpayer money is going out the door to industry that hasn’t proven EOR to be an efficient climate solution.”
— Autumn Hanna, vice president of Taxpayers for Common Sense
Why this matters:
EOR could help oil companies extend well production while claiming climate-friendly tax credits. Without better oversight, it’s unclear whether this will actually reduce carbon emissions.
Related: Biden faces challenges in curbing US oil production
Keep reading...Show less
Top Story
Credit: Erik Mclean/Unsplash
Upper-income households capture most Biden energy tax credits
A significant portion of tax credits aimed at promoting energy efficiency under Biden’s administration is disproportionately benefiting wealthier households, leaving lower-income families with minimal support.
In short:
- The top 25% of households received 66% of the $5.5 billion in energy efficiency tax credits in 2023.
- Lower-income families, earning less than $25,000, received just $32 million, highlighting a significant disparity.
- Critics argue this imbalance undermines efforts to make climate policy more equitable and could hurt public support.
Key quote:
“These tax credits don’t increase the affordability for families making over $500,000. They can already afford it. And they get lower energy prices.”
— Mark Wolfe, executive director of the National Energy Assistance Directors Association
Why this matters:
The unequal distribution of tax credits could erode public confidence in climate policies designed to reduce carbon emissions, making it harder to achieve widespread support for future initiatives.
Related: Millions of households receive energy tax credits for upgrades
Keep reading...Show less
Newsletter
Photo by Raze Solar on Unsplash
Millions of households receive energy tax credits for upgrades
More than 3.4 million American households claimed $8 billion in energy tax credits last year for efficiency and renewable upgrades, cutting costs through the Inflation Reduction Act.
In short:
- The Treasury Department reports 3.4 million homes received $8 billion in tax credits for energy upgrades like solar panels and efficient windows under the Inflation Reduction Act.
- California led with 400,000 claims, followed by Texas and Florida, showing bipartisan appeal despite political differences.
- Nearly half of credit recipients earned less than $100,000 annually, aligning with Biden’s goal of aiding lower-income households in energy transitions.
Key quote:
“Those significant numbers show that these credits are more popular than initially projected.”
— Wally Adeyemo, Deputy Treasury Secretary
Why this matters:
The expanded tax credits promote renewable energy use, significantly cutting costs for American families and encouraging a shift toward more sustainable energy practices. This approach not only aids in reducing household expenses but also contributes to environmental goals by promoting clean energy solutions.
Related:
Keep reading...Show less
Newsletter
Credit: Wolterk/Big Stock Photo
Oil companies pushed ineffective carbon capture while reaping tax benefits
A congressional investigation found that oil companies misled the public about the effectiveness of carbon capture technology while benefiting from substantial tax credits.
In short:
- The fossil fuel industry promoted carbon capture as a key solution to climate change despite knowing its limited effectiveness.
- Internal documents revealed ExxonMobil and other companies were aware that carbon capture technology could only minimally reduce emissions.
- The industry lobbied for and profited from increased tax credits for carbon capture, despite minimal environmental benefits.
Key quote:
“What the IPCC actually said in its mitigation report was that carbon capture might be necessary for hard-to-abate industries, but that it’s one of the most expensive options and it only equates to small emissions reductions.”
— Paul Blackburn, an environmental lawyer and advisor to the Bold Alliance
Why this matters:
The promotion of carbon capture as a viable climate solution diverts attention and resources from more effective strategies like renewable energy. Taxpayer money is being used to fund these technologies, which may not significantly reduce overall carbon emissions.
Keep reading...Show less
Photo by Michael Marais on Unsplash
Fewer electric vehicles will qualify for U.S. tax credits in 2024
Purchases of popular models like the Tesla Model 3 and the Ford Mustang Mach-E may no longer entitle buyers to tax savings because the cars do not meet tougher sourcing requirements.
Credit: Christopher Halloran/Big Stock Photo
California county's plan to utilize federal funds for carbon capture raises concerns
Kern County, California, aims to harness federal tax credits to build facilities that produce and store carbon dioxide, a move critics view as counterproductive to tackling climate change.
In short:
- Kern County proposes building facilities to create and bury carbon dioxide using federal tax incentives.
- Critics argue that this plan paradoxically leads to more carbon production, with oil companies benefiting financially.
- The primary goal is to sustain the local economy as oil production declines.
Key quote:
Kern’s carbon park has "no purpose except to keep the oil and gas companies in business."
— Mark Jacobson, Stanford University engineering professor
Why this matters:
The plan's focus on producing more carbon to utilize sequestration tax credits challenges traditional approaches to reducing greenhouse gases. How do you think local economies dependent on fossil fuels should transition to sustainable practices without compromising their financial stability?
Californians living within miles of oil and gas wells have toxic air
Keep reading...Show less
Three big reasons Americans haven't rapidly adopted EVs
US consumers are buying electric vehicles – just not at the pace some analysts predicted. A few core reasons keep the average consumer from moving past petrol.
ORIGINAL REPORTING
MOST POPULAR
CLIMATE
