President Biden unveiled a revised $1.75 trillion spending plan on Thursday that ditches many provisions of an original $3.5 trillion plan, but still calls for investments in clean energy technology.
The fate of the so-called Build Back Better framework proposal is still up in the air as dozens of House Democrats decide if it remains progressive enough for them to agree to vote in favor of a separate infrastructure bill valued at up to $1.2 trillion for roads, bridges and transportation among other improvements. The Senate has approved the infrastructure bill, but would need to pass a scaled back Build Back Better bill.
Among the $555 billion clean energy initiatives in the $1.75 trillion plan are $110 billion in incentives to spur new domestic supply chains and technologies for solar, batteries and advanced materials. Also, $105 billion is recommended for addressing extreme weather with the creation of a Civilian Climate Corps staffed by 300,000 people.
Clean energy tax credits valued at $320 billion would promote clean energy transmission and storage for homes and utilities along with passenger and commercial vehicles and manufacturing.
The White House said rebates and credits would cut the cost of installing rooftop solar on a home by 30%. An electric vehicle tax credit would lower the cost of an EV that is made in America with American materials and union labor by $12,500 for a middle-class family.
The framework’s $555 billion for clean energy is the largest single investment in the nation’s clean energy economy. It sets the U.S. on course to meet climate targets of a 50% to 52% reduction in greenhouse gas emissions below 2005 levels in 2030, the White House said.
The White House said the president is confident the framework in legislative language can pass both houses of Congress and urged quick action on it as well as the infrastructure act. Members of Congress began reviewing the legislative language for Build Back Better with House votes on both measures expected in coming days..
Other measures in the framework include two years of free preschool for every 3 and 4 year old in America and expansion of the affordable health care coverage to 4 million uninsured people in states where they aren’t covered by Medicaid.
Notably, President Biden promised nobody earning less than $400,000 would pay more in taxes. The framework calls for a 15% minimum tax on corporate profits over $1 billion as well as a 15% country-by-country minimum tax on foreign profits of U.S. corporations.