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For instance, in December 2023 we discovered how restrictions within the EV tax credit will have an effect on autos with elements made in China. Because of this, beginning in 2024 some car fashions turned ineligible for the credit, together with the Ford Mustang Mach-E. (The corporate hasn’t stated precisely why the mannequin misplaced eligibility, however some reporting has prompt it’s possible as a result of the lithium iron phosphate batteries used within the autos come from the Chinese language firm CATL.)
A few of these specifics get actually difficult. The hydrogen tax credit may get snarled in authorized battles. The total guidelines on credit for sustainable aviation gasoline raised considerations that fuels that don’t assist a lot with emissions will nonetheless get funding. The credit for important minerals apply solely to processing, to not mining efforts, as my colleague James Temple detailed in his story a couple of Minnesota mine earlier this yr.
Trying forward, the destiny of the IRA’s applications could rely on the result of the presidential election in November. Vice President Kamala Harris, the Democratic nominee, solid the tie-breaking vote to cross the regulation, and she or he would possible maintain the applications going. In the meantime, Donald Trump, the Republican nominee, has been brazenly focusing on lots of its provisions, and he may do some harm to most of the tax credit included, regardless that it will require an act of Congress to truly repeal the regulation. (For extra on what a second Trump presidency may imply for the local weather regulation, take a look at this nice deep dive from James Temple.)
The motion actually isn’t slowing down on the earth of local weather expertise. Trying forward, one main piece of the puzzle we’ll be watching is a possible change to how new initiatives get authorised. There’s a allowing reform package deal winding its method by way of the federal government now, so keep tuned for extra on that, and on all the pieces local weather tech.
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At our ClimateTech occasion final yr, Leah Stokes, an environmental coverage professor at UC Santa Barbara who was intently concerned with creating the IRA, spoke with us in regards to the regulation. For extra on the way it got here to be and what adjustments we’ve seen thus far, take a look at her phase right here.
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