FIA Sends Letter to Congress in Support of Tech-Neutral Tax Credits

On January 7, the Fusion Industry Association (FIA) sent a letter to Congress supporting the technology-neutral clean energy generation tax incentives enacted in the Inflation Reduction Act (IRA) of 2022. For the first time, fusion power can benefit from the same financial incentives long enjoyed by other clean technologies encouraging development in the US. This provides crucial support as the global race to fusion deployment continues.

As fusion moves from research to commercialization, the inclusion of fusion in the Treasury Department’s rulemaking is already shaping FIA members’ plans for first-generation fusion power plants. With companies planning to build within the next decade, the § 45Y and § 48E credits are vital incentives to encourage development in the US. A technology-neutral approach is crucial. Denying fusion access to these credits would harm the industry and could drive global leadership in fusion to other nations. Maintaining these credits sends a strong signal to investors, suppliers, and project financiers, enabling more investment and industry acceleration in fusion today.

The FIA strongly supports the desire of Congress for a technology-neutral approach towards energy and energy security policy. As such, it’s vital that Congress maintain tax credit equity for fusion energy, compared to other energy technologies. This will directly incentivize private sector investment, driving the US toward global leadership in the future of firm, clean, and safe energy.

You can read the full letter below, or download here, sent to Chairman Smith and Ranking Member Neal of the House Committee on Ways and Means, and Chairman Crapo and Ranking Member Neal of the Senate Committee on Finance.