On March 31, 2021, President Biden released a fact sheet on his proposed $2.3 trillion initiative known as the American Jobs Plan. The plan includes spending to upgrade the electric grid and promote renewable energy. Highlights of the plan include the following:
- Increase the corporate income tax rate from 21 percent to 28 percent
- Targeted investment tax credit that incentivizes the buildout of at least 20 gigawatts of high-voltage-capacity power lines
- 10-year extension and phasedown of an expanded direct-pay investment tax credit and production tax credit for clean energy generation and storage
- Pair investment in 15 decarbonized hydrogen demonstration projects in distressed communities with a new production tax credit to spur capital-project retrofits and installations
- Establish 10 pioneer facilities that demonstrate carbon capture retrofits for large steel, cement and chemical production facilities
- Reform and expand the Section 45Q tax credit, making it direct pay and easier to use for hard-to-decarbonize industrial applications, direct air capture and retrofits of existing power plants
