# Plain Language Summary: The GREEN Act of 2021

This bill is designed to encourage Americans to switch to renewable energy and energy-efficient technologies by offering tax breaks and credits. Think of it as the government saying "we'll help pay for it" if you invest in cleaner energy solutions. The bill extends and expands various tax incentives that were set to expire, giving people and businesses more time and bigger financial reasons to go green.

The bill covers a lot of ground. If you're thinking about installing solar panels on your home, buying an electric vehicle, or upgrading your heating system to be more efficient, this bill could put money back in your pocket through tax credits. For businesses, there are incentives for building renewable energy projects like wind farms or solar installations, as well as credits for companies that invest in energy storage systems and biogas technology. The bill also makes it easier for people to get tax breaks for making their homes more energy efficient, whether that's better insulation, new windows, or heat pumps.

Beyond individual homeowners and businesses, the bill includes provisions aimed at creating jobs in the green energy sector and ensuring that communities that have historically dealt with pollution get a fair share of the benefits from clean energy investments. It also extends tax credits for alternative fuels like biodiesel and renewable diesel, and provides incentives for buying used electric vehicles, not just new ones. Additionally, the bill encourages employers to support bicycle commuting by allowing tax-free benefits for employees who bike to work.

The key takeaway is that this bill makes going green financially more attractive by extending tax credits through the late 2020s and, in some cases, increasing the amount of money you can get back. Whether you're an individual homeowner, a business owner, or a company investing in renewable energy infrastructure, there are likely tax benefits available to help offset the costs of switching to cleaner energy sources.

GREEN Act of 2021

Thompson, Mike

Growing Renewable Energy and Efficiency Now Act of 2021 or the GREEN Act of 2021 This bill provides tax incentives for investment in renewable energy resources and energy efficiency programs. Among other provisions, the bill <ul> <li>extends for five years the tax credit for production of electricity from certain renewable resources (e.g., wind facilities, biomass, landfill trash facilities), allows an election to treat certain tangible property as energy property for purposes of the energy tax credit, and modifies certain provisions of the energy tax credit and expands the credit for four years;</li> <li>expands the 30% energy tax credit to include energy storage technology or qualified biogas property; </li> <li>extends for one year the tax credit for carbon oxide sequestration; </li> <li>allows elective payments in lieu of certain energy-related tax credits; </li> <li>modifies the phaseout provisions of the income and excise tax credits for biodiesel and renewable diesel and alternative fuels and extends the termination date for such credits;</li> <li>extends and increases the tax credits for nonbusiness energy property and the new energy efficient home tax credit;</li> <li>extends for five years the residential energy efficient property tax credit; </li> <li>increases the tax deduction for energy efficient commercial buildings; </li> <li>modifies the limitations on new qualified plug-in electric drive motor vehicles tax credit and allows a new credit for such vehicles that are previously-owned; </li> <li>allows a new tax credit for zero emission heavy vehicles (vehicles with a gross weight rating of not less than 14,000 pounds and not powered by an internal combustion engine); </li> <li>extends for five years the tax credits for qualified fuel cell motor vehicles and alternative fuel cell refueling property; </li> <li>provides for additional allocations of the advanced energy project tax credit; </li> <li>allows a new tax credit for the labor costs of installing mechanical insulation property; </li> <li>allows a new tax credit to promote environmental justice programs (programs to improve health and economic outcomes of individuals residing in low-income areas or areas populated disproportionately by racial or ethnic minorities); and </li> <li>requires the Department of the Treasury to report on the utility of data from the Greenhouse Gas Reporting Program for determining the amount of greenhouse gases emitted by taxpayers for purposes of imposing a fee on them for such emissions.</li> </ul>