President Biden’s $2.3 trillion infrastructure plan would supercharge an already booming clean-power sector by expanding subsidies and addressing key bottlenecks impeding the shift to a greener grid.
The plan, unveiled Wednesday, calls for the creation of a new tax credit to support the construction of high-voltage transmission lines, a major roadblock for the build-out of renewable energy.
It also proposes a 10-year extension of wind, solar and battery tax credits, which are currently set to be phased out in coming years.
Tax credits have “been very effective at reducing costs for wind and solar, and they could do the same for transmission,” said Trey Ward, chief executive of Direct Connect Development Co., which is building a $2.5 billion line to take green power from Iowa into the Chicago suburbs. “It is very simple: If you want more renewables, you need more transmission.”
Renewable-energy companies—from wind and solar farm developers to rooftop solar providers—cheered the proposed extension of the tax credits.