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 automobile fashions turned ineligible for the credit, together with the Ford Mustang Mach-E. (The corporate hasn’t mentioned precisely why the mannequin misplaced eligibility, however some reporting has prompt it’s seemingly 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 sophisticated. The hydrogen tax credit might get twisted up in authorized battles. The total guidelines on credit for sustainable aviation gasoline raised issues that fuels that don’t assist a lot with emissions will nonetheless get funding. The credit for essential minerals apply solely to processing, to not mining efforts, as my colleague James Temple detailed in his story a few Minnesota mine earlier this yr.
Trying forward, the destiny of the IRA’s packages might rely on the end result of the presidential election in November. Vice President Kamala Harris, the Democratic nominee, forged the tie-breaking vote to cross the regulation, and she or he would seemingly hold the packages going. In the meantime, Donald Trump, the Republican nominee, has been brazenly focusing on lots of its provisions, and he might do some injury to lots of the tax credit included, though it might require an act of Congress to really repeal the regulation. (For extra on what a second Trump presidency may imply for the local weather regulation, try this nice deep dive from James Temple.)
The motion actually isn’t slowing down on the earth of local weather know-how. Trying forward, one main piece of the puzzle we’ll be watching is a possible change to how new tasks get authorised. There’s a allowing reform package deal winding its method by the federal government now, so keep tuned for extra on that, and on every part local weather tech.
Associated studying
At our ClimateTech occasion final yr, Leah Stokes, an environmental coverage professor at UC Santa Barbara who was intently concerned with growing the IRA, spoke with us concerning the regulation. For extra on the way it got here to be and what modifications we’ve seen to date, try her section right here.