The bigwigs over at the U.S. Treasury dropped a little hint on Friday. They’re gonna spill more deets on those eco-friendly tax perks by the end of this year. And guess what’s cooking? A little something to keep companies from getting too cozy with Chinese suppliers. Sneaky, huh?
Lily Batchelder, the Treasury’s go-to gal for all things tax, played it cool and didn’t give us a heads up on the exact timings. She’s keeping it hush-hush about the whole “foreign entity of concern” buzz. But between you and me, she did let it slip that we’d get the inside scoop before this year’s curtains close. And that’s not all! They’re also cooking up info on this mysterious “45X” tax thingy for eco-friendly gizmos like solar panels, windmills, and those fancy battery thingamajigs.
Now, if you’re a car buff, perk up those ears! Car companies are all ears, waiting to see if they’ll score big with these tax breaks, especially as they’re racing to swap out gas-guzzlers for electric rides. And here’s a kicker: by 2024, all those shiny new batteries need to follow the new rules, and by 2025, those magical minerals powering them do too.
And oh boy, there’s a juicy bit of gossip! Ever heard of Ford Motor? Apparently, they’re in cahoots with a Chinese battery maker called CATL. Big question: will they get a thumbs up from the Treasury to cash in on those tax breaks? Some folks in suits and ties at the Capitol Hill are raising eyebrows, wondering if it’s all above board.
But wait, there’s more! Lily, being the tease that she is, hinted that the Treasury’s soon gonna dish out advice on tax breaks for jazzing up your home to be energy-smart and for using planet-friendly airplane fuel. Rad, right?
By the time we hit the New Year’s Eve party, we might also hear about the Section 48 clean power tax deal and some sweet perks for clean hydrogen.
Now, hold onto your hats for this last bit. When the Inflation Reduction Act (sounds fancy, huh?) rolled out last year, the green for these clean tax breaks was pegged at a whopping $369 billion over a decade. But with everyone and their grandma wanting in on the action, some big-brained folks think it might shoot up to a mind-blowing $1 trillion. Yowza!
So, grab some popcorn and keep those eyes peeled. It’s gonna be a wild ride!