Overview

Title

To amend the Internal Revenue Code of 1986 to extend the energy credit for qualified fuel cell property.

ELI5 AI

The bill wants to extend the amount of time people can get a tax break for using a special kind of energy called "fuel cell" from 2025 all the way to 2033, which means they can save money on their taxes for using this type of clean energy.

Summary AI

S. 1043 aims to amend the Internal Revenue Code of 1986 by extending the energy credit for qualified fuel cell property. The bill proposes changing the expiration date for the tax credit from January 1, 2025, to January 1, 2033. This extension would apply to properties whose construction starts after December 31, 2024.

Published

2025-03-13
Congress: 119
Session: 1
Chamber: SENATE
Status: Introduced in Senate
Date: 2025-03-13
Package ID: BILLS-119s1043is

Keywords AI

energy credit fuel cell property internal revenue code tax credit extension federal budget impact renewable energy incentives legislative amendment s. 1043 united states senate construction start date

Sources

Bill Statistics

Size

Sections:
1
Words:
188
Pages:
2
Sentences:
6

Language

Nouns: 58
Verbs: 16
Adjectives: 6
Adverbs: 1
Numbers: 14
Entities: 20

Complexity

Average Token Length:
4.22
Average Sentence Length:
31.33
Token Entropy:
4.33
Readability (ARI):
17.49

AnalysisAI

Summary of the Bill

The proposed bill, titled S. 1043, aims to amend the Internal Revenue Code of 1986 by extending the energy credit related to qualified fuel cell property. Specifically, it proposes to extend the expiration date of this credit from January 1, 2025, to January 1, 2033. This adjustment targets properties whose construction commences after December 31, 2024.

Significant Issues

One of the main issues with this bill is the lack of clarity on the expected financial impact on the federal budget due to this extension. Without a detailed assessment, it is difficult to determine whether prolonging the energy credit is fiscally responsible. Additionally, there is a concern that the bill does not specify if it intends to advantage any particular organizations or individuals, which might suggest potential lobbying or preferential interests. The legislative language, while clear in its legal terms, may be complex for the general public, possibly obscuring the bill's direct effects on individuals. Lastly, the rationale for choosing specific dates for the extension isn't provided, which might be perceived as arbitrary without further context.

Impact on the Public

Broadly, this bill could promote the continued development and use of qualified fuel cell technologies by extending financial incentives. This move might encourage more construction projects involving fuel cells, potentially boosting clean energy adoption and contributing positively towards environmental sustainability. However, the absence of explicit financial analysis in the proposed amendment raises questions about the long-term economic impacts of such an extension, especially regarding its cost-effectiveness and any potential liabilities it might create for taxpayers.

Impact on Stakeholders

For stakeholders in the clean energy sector, particularly those involved in fuel cell technology, the bill represents a significant opportunity. It allows companies extra time to invest in and develop qualified fuel cell projects, leveraging the energy credit to potentially reduce costs and increase competitiveness. Conversely, without knowing the specific cost implications, other taxpayers could be indirectly affected if the extension results in unforeseen budgetary constraints or shifts public funds away from other critical needs.

In summary, while the bill presents potential benefits for advancing clean energy technology, there is a pressing need for a comprehensive evaluation of its financial ramifications as well as transparency about who benefits most from these tax credits. This would ensure that the amendment serves the broader public interest effectively and equitably.

Issues

  • The amendment extends the energy credit period significantly from 2025 to 2033 (Section 1), which may lead to prolonged budgetary allocations without a clear evaluation on its long-term benefits or impacts.

  • The amendment (Section 1) does not specify the expected financial impact or cost to the federal budget due to the extension of the energy credit, making it difficult to assess potential fiscal responsibility.

  • There is no clarification in Section 1 on whether the extension aims to benefit any specific organizations or individuals that might already have vested interests in such fuel cell property, raising concerns about potential lobbying or preferential treatment.

  • The language used in Section 1 is precise in legislative terms but may be difficult for the general public to fully understand, especially how it affects them directly.

  • The section (Section 1) lacks a rationale for why the particular dates January 1, 2025, and January 1, 2033, were chosen, which can appear arbitrary without further context.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Extension of energy credit for qualified fuel cell property Read Opens in new tab

Summary AI

In this section, the expiration date for the energy credit related to qualified fuel cell property in the tax code is extended from January 1, 2025, to January 1, 2033. The extension applies to properties whose construction starts after December 31, 2024.