Revised ‘Build Back Better’ bill retains most ESG tax proposals, adds new credits

In brief

The ‘Build Back Better’ reconciliation bill (the bill) currently under consideration in the House includes numerous incentives for clean energy.

The bill retains, with some modifications, nearly all of the clean energy incentives included in the version of the bill approved by the House Ways and Means Committee on September 15 (the Ways and Means bill). For prior coverage, see PwC’s Tax Insight, Ways and Means reconciliation bill includes numerous ESG tax proposals, September 23, 2021. Under the ‘rule’ adopted for House consideration, the current version of the bill reflects (1) a November 3 substitute amendment making changes to the earlier October 28 version of the bill released by the House Rules Committee, and (2) a ‘chairman’s amendment’ offered by House Budget Committee Chairman John Yarmuth (D-KY).

This PwC Tax Insight highlights the changes to the clean energy provisions from the Ways and Means bill. 

The bill also includes several new credits:

• advanced manufacturing investment credit
• advanced manufacturing production credit
• clean electricity production and investment credits (as well as an increased clean energy investment credit for facilities connected to low-income communities)
• clean fuel production credit.