{"id":48025,"date":"2025-03-05T00:01:06","date_gmt":"2025-03-05T00:01:06","guid":{"rendered":"https:\/\/saperemarketing.com\/clearpath\/?p=48025"},"modified":"2025-03-10T15:42:16","modified_gmt":"2025-03-10T15:42:16","slug":"tax-incentives-can-help-achieve-energy-dominance","status":"publish","type":"post","link":"https:\/\/saperemarketing.com\/clearpath\/our-take\/tax-incentives-can-help-achieve-energy-dominance\/","title":{"rendered":"Tax Incentives Can Help Achieve Energy Dominance"},"content":{"rendered":"\n<p>The Trump administration has propelled an American energy dominance agenda poised to cement U.S. leadership in all forms of energy production. As the administration seeks to break down permitting barriers and accelerate the buildout of new energy infrastructure, <a href=\"https:\/\/saperemarketing.com\/clearpath\/policy\/tax-policy\/\">tax incentives<\/a> can play an important role in accelerating American innovation, lowering prices <em>and<\/em> reducing global emissions. With proper incentives in place for innovative emerging energy technologies, America\u2019s private sector will continue to deliver reliable, affordable, clean energy to power our economy.<\/p>\n\n\n\n<a href=\"https:\/\/youtu.be\/1yHthSjiQ8E?si=_5Ks-oSIvxlKxnmk\"><aside class=\"float-right\" style=\"text-align: center;padding-left:20px\"><img decoding=\"async\" class=\"clearpath-lightbox-img alignnone wp-image-5112 size-full lazyload\" data-src=\"https:\/\/saperemarketing.com\/clearpath\/wp-content\/uploads\/sites\/67\/2025\/03\/public-private-whiteboard-thumb.jpg\" alt=\"\" width=\"500\" height=\"240\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 500px; --smush-placeholder-aspect-ratio: 500\/240;\"><\/aside><\/a>\n\n\n\n<p>ClearPath has long supported innovation over regulation, with a strong preference for incentives for new clean energy technologies rather than higher taxes on American energy producers. Public-private partnerships for research and development have catalyzed many world-changing American innovations. The U.S. shale boom is a <a href=\"https:\/\/saperemarketing.com\/clearpath\/our-take\/a-natural-gas-innovation-success-story-from-public-private-partnerships\/\">prime example<\/a>, where the private sector developed new drilling technology in partnership with the U.S. Department of Energy in the 1980s when the U.S. was struggling to compete with foreign adversaries. Congress then enacted a new production tax credit to scale up adoption rapidly. Once the technology sufficiently matured, the tax credit reasonably expired. As a result, U.S. consumers now have abundant, affordable, reliable natural gas produced through hydraulic fracturing. This private-public partnership has delivered a <a href=\"https:\/\/saperemarketing.com\/clearpath\/tech-101\/hydraulic-fracturing-a-public-private-rd-success-story\/\">10-time return on investment<\/a> of taxpayer resources. This is just one example of how American innovation not only increases reliability and affordability for US consumers but gives the U.S. a competitive edge in the global market for energy exports. The same success story is already playing out in Europe, as countries like <a href=\"https:\/\/saperemarketing.com\/clearpath\/our-take\/international-financial-institutions-in-an-era-of-great-power-competition\/\">Poland and Romania<\/a> look to the U.S. for advanced reactor technology.<\/p>\n\n\n\n<p>Today, there is a similar dynamic at play as the U.S. experiences unprecedented energy demand growth related to data centers, artificial intelligence and an American manufacturing resurgence. These factors could push U.S. energy demand up by as much as 18% over the next decade, according to the <a href=\"https:\/\/www.nerc.com\/pa\/RAPA\/ra\/Reliability%20Assessments%20DL\/NERC_Long%20Term%20Reliability%20Assessment_2024.pdf\">latest data<\/a> from the North American Electric Reliability Council. To meet rising demand and preserve grid reliability, the U.S. needs to rapidly deploy 24\/7 reliable power, like <a href=\"https:\/\/saperemarketing.com\/clearpath\/our-take\/terrapower-breaks-ground-in-wyoming-clearing-path-for-new-nuclear\/\">advanced nuclear<\/a>, geothermal and natural gas with carbon capture.<\/p>\n\n\n\n<p>Tax credits can help new technologies overcome initial hurdles and rapidly reduce the cost of deployment. Early support for new technologies can be part of a comprehensive strategy to unlock domestic energy resources and make American manufacturing more competitive globally. Once technologies are proven domestically, they can rapidly reshape the global energy market, <a href=\"https:\/\/saperemarketing.com\/clearpath\/our-take\/where-american-gas-goes-other-clean-energy-can-follow\/\">just as U.S. LNG exports have<\/a>. Above all, tax credits should promote the uptake of new technologies as they become cost-competitive and not relied on as a permanent subsidy for uneconomic resources.<\/p>\n\n\n\n<p style=\"color:#9d1c20;text-align:center;font-size: 26px;font-family:\u2019Marydale-Bold\u2019\"><span class=\"md-bold\" style=\"color: #9d1c20\">Tax Credits Help Push Technologies up the Innovation Curve<\/span><\/p><img decoding=\"async\" data-src=\"https:\/\/saperemarketing.com\/clearpath\/wp-content\/uploads\/sites\/67\/2025\/03\/innovation-global-s-curve-tax-blog.jpg\" alt=\"\" class=\"wp-image-5112 clearpath-lightbox-img aligncenter lazyload\" style=\"--smush-placeholder-width: 1000px; --smush-placeholder-aspect-ratio: 1000\/569;width:800px;padding-right:20px;text-align:center\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/>\n\n\n\n<p>As part of a tax policy deal this year, Congress can use targeted policies to best position the U.S. to lead the world in energy production and prevail against China. Many of these credits have received bipartisan support in the past, which is vital to provide durable policy incentives over long investment horizons. Below are three areas for Congress to consider taking action on this year:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fix the 45Q credit for carbon sequestration by indexing it to inflation. <\/strong>The carbon capture and sequestration credit provides a 12-year incentive to remove emissions from point sources or through direct air capture. The captured CO2 can then be used in enhanced oil recovery, utilized in new products, or permanently stored. This credit has been revised and extended on a bipartisan basis in past Congresses, but recent amendments made by the Inflation Reduction Act (IRA) have eroded up to 20% of the credit\u2019s value due to high inflation. Recent efforts like the Enhancing Energy Recovery Act (S. 425) would help create parity between enhanced oil recovery and utilization the same as the tax credit for storage.&nbsp;<\/li>\n\n\n\n<li><strong>Preserve the 45Y\/48E tech-neutral clean electricity credits to support the quicker scale up of new generation, including advanced nuclear and next-generation geothermal. <\/strong>These credits support the production of (or investment in) zero-emissions electricity generation or storage. The tech-neutral structure allows all zero-emissions technologies to compete equally, rather than picking winners and losers. For the first time, advanced nuclear energy is now on a level playing field with wind and solar. This is similar to past bipartisan efforts like the <a href=\"https:\/\/saperemarketing.com\/clearpath\/our-take\/the-missing-market-signal-to-the-clean-energy-puzzle\/\">Energy Sector Innovation Credit (ESIC)<\/a>.&nbsp;<\/li>\n\n\n\n<li><strong>Broaden the 45X advanced manufacturing credit to support grid reliability:<\/strong> The 45X credit created a domestic production incentive that is currently limited to wind, solar, and battery components, along with critical mineral processing. There is an opportunity to amend the credit to include U.S.-made components for reliable, clean energy sources like <strong>advanced nuclear, fusion energy, hydrogen, advanced transmission conductors and geothermal drilling.<\/strong> This would build on <a href=\"https:\/\/www.cortezmasto.senate.gov\/news\/press-releases\/cortez-masto-moran-introduce-legislation-to-expand-production-of-electric-distribution-transformers\/\">recent bipartisan proposals<\/a> to expand 45X to additional supply chain components.<\/li>\n<\/ul>\n\n\n\n<p>To build on President Trump\u2019s goal to make American energy dominant, the private sector needs all tools available, including tax incentives and faster permitting, to meet the goals of increasing power production and lowering costs for consumers.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Trump administration has propelled an American energy dominance agenda poised to cement U.S. leadership in all forms of energy production. As the administration seeks to break down permitting barriers and accelerate the buildout of new energy infrastructure, tax incentives can play an important role in accelerating American innovation, lowering prices and reducing global emissions. [&hellip;]<\/p>\n","protected":false},"author":296,"featured_media":48022,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"ngg_post_thumbnail":0,"wds_primary_category":19,"footnotes":""},"categories":[19],"tags":[36],"class_list":["post-48025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-our-take","tag-permitting"],"acf":[],"_links":{"self":[{"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/posts\/48025","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/users\/296"}],"replies":[{"embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/comments?post=48025"}],"version-history":[{"count":0,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/posts\/48025\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/media\/48022"}],"wp:attachment":[{"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/media?parent=48025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/categories?post=48025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/saperemarketing.com\/clearpath\/wp-json\/wp\/v2\/tags?post=48025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}