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The ‘Build Back Better’ reconciliation bill approved September 15 by the House Ways and Means Committee (the bill) includes numerous incentives for clean energy.

According to the section-by-section summary of the bill released by Ways and Means Chair Richard M. Neal (D-MA) on September 13, the bill would structure many new and existing renewable-energy and energy-efficiency tax incentives as two-tiered incentives with a ‘base rate’ and a ‘bonus rate.’ The base rate would equal 20% of the bonus rate, which would be an increased rate for projects that meet prevailing wage and apprenticeship requirements. For incentives that would phase down in 2032 and 2033, the phase-down rate would apply proportionally to the base rate and the bonus rate. Some of the credits in the bill also would include bonus rates based on the domestic content of the property to which the credit would apply.