[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Page S4212]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    INFLATION REDUCTION ACT OF 2022

  Ms. CORTEZ MASTO. Madam President, I rise to enter into a colloquy 
with the chairman of the Finance Committee, Senator Wyden, to discuss 
sections 13701 and 13702 of the Inflation Reduction Act. These sections 
establish new sections 45Y and 48D of the Tax Code that provide new tax 
credits for, respectively, production from and investment in clean 
electricity resources that are placed in service after December 31, 
2024.
  Mr. WYDEN. I am pleased to join the senior Senator from Nevada in 
this colloquy today to discuss sections 13701 and 13702 of the 
Inflation Reduction Act. These sections of the Inflation Reduction Act 
reflect the work of a variety of Members, but few Members have been as 
focused on geothermal energy than the Silver State's senior Senator.
  Ms. CORTEZ MASTO. As the chairman of the Finance Committee knows 
well, the Inflation Reduction Act includes new and improved clean 
energy tax credits, and I commend Senator Wyden for leading the effort 
to simplify the Tax Code's incentives for clean electricity. These 
credits will advance our transition to a clean energy future and are a 
key part of this legislation's goal of reducing carbon emissions from 
the electricity sector more than 40 percent by 2030.
  The 45Y and 48D provisions expressly make geothermal energy eligible 
for critical tax credits, and I appreciate the chairman's attention to 
this issue given its importance to Nevada's economy. Nevada is a leader 
in geothermal energy and the industry provides critical jobs and 
revenues for my State and others across the country. Geothermal 
resources also provide clean power, and they are essential to meet the 
emissions reduction goals of this legislation. As the current chairman 
of the Finance Committee and former chairman of the Energy and Natural 
Resources Committee, can Senator Wyden comment how this legislation 
intends to spur the deployment of this critical clean energy 
technology?
  Mr. WYDEN. I appreciate the question. For those unfamiliar with 
geothermal energy, it is generally produced by delivering geothermal 
brine and steam from underground reservoirs to the surface, where the 
resource then runs turbines to generate electricity. In some cases, 
there is a de minimis of amount of naturally occurring noncombustion 
emissions released in the renewable generating process and the 
electricity produced is considered emissions free.
  Thanks in part to the relentless efforts from Senator Cortez Masto, 
the Inflation Reduction Act provides the same incentives for geothermal 
energy resources placed in service after December 31, 2024, as it does 
for electricity produced by solar, wind, and other renewable resources. 
Indeed, all geothermal energy is included among the resources meeting 
the definition of ``qualified facility'' for the purposes of the new 
sections 45Y and 48D included in the Inflation Reduction Act.
  I thank my colleague from Nevada for her dedication to and leadership 
on geothermal energy incentives. I am pleased to have worked with her 
on these incentives, and I most certainly agree that electricity 
produced from geothermal resources property qualifies for the 
production and investment incentives provided by sections 13701 and 
13702 of the Inflation Reduction Act. That has been my intent 
throughout the course of drafting this legislation. Geothermal 
resources are critical to our clean energy future, and I thank my 
colleague for her collaboration in developing these robust new tax 
credits for clean energy.
  Ms. CORTEZ MASTO. I thank the chairman of the Finance Committee and 
my friend from Oregon for his comprehensive answer, his commitment to 
solving for climate change, and for joining me today in this colloquy.

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