Tax Scams, the $1.5 Trillion Farm Bill, and Solar Manufacturing and Development
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Tax Policy/News:
May 21: Congressmembers laud success of IRS Free Direct File, push for permanency
Over 130 members of Congress have praised the Internal Revenue Service's (IRS) Free Direct File Program and are advocating for its permanence in a letter to U.S. Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel.
Launched as a pilot initiative, the Direct File program allowed taxpayers in 12 states to file their returns directly with the IRS at no cost.
Lawmakers commended the program's success, with taxpayers claiming over $90 million in tax refunds and saving an estimated $5.6 million in filing fees during the pilot phase.
They urged the expansion and enhancement of the program, emphasizing taxpayers' desire for a free and user-friendly filing option.
The program, initiated by the Biden administration in May 2023, received positive feedback from users, with 90% rating their experience as "excellent" or "above average."
May 20: A tax vote incoming
Outside groups advocating for the bipartisan tax bill, designed to benefit both businesses and working families, continue to press Senate leaders to advance the Wyden-Smith plan, which has been stalled in the Senate for nearly four months.
The National Association of Manufacturers, joined by 47 state partners, is among the latest to urge Senate Majority Leader Chuck Schumer and Senate Minority Leader Mitch McConnell to schedule a prompt vote, citing the need to compete with China's more generous tax regime.
The bill proposed by Wyden and Smith aims to allow immediate write-offs for most research investments and bring back favorable deductions for interest and capital investments.
Advocates argue that failure to reinstate these tax policies hampers U.S. manufacturers' ability to create jobs, innovate, and compete globally.
Despite ongoing discussions between Wyden and Schumer, it remains uncertain what might prompt a vote on the bill, especially amid competing priorities and potential divisions within Senate Democrats.
The IRS issued a consumer alert warning taxpayers about tax scams and misleading social media advice that led to inflated refund claims during the recent tax season.
The scams targeted credits such as the Fuel Tax Credit, Sick and Family Leave Credit, and household employment taxes, resulting in delayed refunds and the need for legitimate documentation.
Despite legitimate tax provisions, most claims didn't qualify, with themes including incorrect use of credits for self-employed individuals and fictitious household employees.
The IRS has frozen refunds for questionable claims and is urging affected taxpayers to resolve issues promptly to avoid penalties and potential audits. Taxpayers are advised to verify their eligibility, submit accurate returns, and consult trusted tax professionals.
Economic News/Policy:
May 20: Janet Yellen says America won't back a billionaire tax
U.S. Treasury Secretary Janet Yellen has stated that the U.S. will not support discussions about implementing a global wealth tax, expressing reluctance to pursue a common global arrangement for taxing billionaires.
The proposal, backed by several countries including Brazil, France, Spain, Germany, and South Africa, suggests imposing a 2% tax on billionaires' total wealth annually.
This plan, similar to the global minimum corporate tax, aims to raise substantial revenue, with estimates suggesting it could generate close to $250 billion annually from less than 3,000 individuals.
Despite Yellen's involvement in the corporate tax deal, the U.S. Congress has yet to pass legislation to enact it, amidst Republican opposition.
May 17: House unveils $1.5 trillion farm bill after long delay
House Agriculture Chair G.T. Thompson has unveiled a $1.5 trillion farm bill that significantly increases farm safety net programs but clashes with two Democratic priorities, setting the stage for a clash with the Senate.
The bill is expected to attract some Democratic votes but faces opposition from party leaders urging support for a rival proposal.
While some Democrats view certain provisions, like immediate access to SNAP benefits for those with past felony drug convictions, favorably, others oppose measures like limiting updates to the Thrifty Food Plan and removing climate-smart requirements for conservation funding.
Senior Democrats are pushing members to oppose Thompson's bill, confident they can block it on the House floor. Thompson defends the bill as a robust proposal that addresses key agricultural concerns.
Technology:
The U.S. Department of Commerce's National Institute of Standards and Technology (NIST) has granted over $1.2 million to 12 small businesses across eight states as part of the Small Business Innovation Research (SBIR) Program.
These awards aim to support research and development endeavors in crucial areas such as cybersecurity, quantum computing, healthcare, and semiconductor manufacturing.
The chosen projects, awarded under Phase I SBIR, were selected based on their innovative proposals addressing technical needs in alignment with NIST's research domains.
The program serves to establish the feasibility, merit, and commercial potential of the projects, with awardees eligible to apply for Phase II funding for further development.
The projects range from the development of advanced SEM simulation software for semiconductor industry applications to the creation of innovative solutions for cybersecurity, quantum waveguide infrared photodetectors, and personalized sensor-independent efficiency guides for households to reduce energy consumption.
May 13: Schumer’s long-awaited AI ‘road map’ is coming this week. It will cost billions.
A bipartisan group of senators, led by Majority Leader Charles E. Schumer, is set to unveil a comprehensive "road map" for regulating artificial intelligence (AI), aiming to allocate billions of dollars towards AI research and development while addressing potential risks.
The plan, anticipated to be released this week, is expected to urge Congress to allocate around $32 billion for AI R&D, based on recommendations from the 2021 National Security Commission on Artificial Intelligence.
It will call for sector-specific regulations, testing, and transparency measures, and ensure military competitiveness in AI.
While receiving bipartisan support, skepticism remains regarding Congress's ability to enact comprehensive AI legislation amidst political polarization. The plan also includes backing for existing bipartisan bills like the Create AI Act and emphasizes worker training amidst concerns about AI's impact on employment.
Schumer's initiative follows months of consultations with tech executives, civil rights leaders, and researchers, aiming to accelerate AI regulation in the United States.
Energy and Environmental Policy/News:
As part of President Biden's Investing in America agenda, the U.S. Department of Energy (DOE) has announced a $71 million investment, with $16 million from the Bipartisan Infrastructure Law, to support research, development, and demonstration projects aimed at expanding the domestic solar energy supply chain.
These projects will address gaps in solar manufacturing capacity, including equipment, silicon ingots, wafers, and solar cell manufacturing, with a focus on dual-use photovoltaic applications.
The initiative aligns with the Biden-Harris Administration's goal of achieving net-zero emissions by 2050 and its Justice40 initiative to prioritize benefits for disadvantaged communities.
Secretary of Energy Jennifer M. Granholm emphasized the administration's commitment to building an American-made solar supply chain to drive innovation, reduce costs, and create jobs nationwide.
Selected projects include those fostering silicon solar manufacturing and advancing thin-film PV technologies, such as cadmium telluride and perovskites, to improve efficiency, reduce costs, and bolster domestic production of solar panels.
May 15: DOE unveils a second chance to access $6 billion for carbon capture tech
The Biden administration is leveraging carbon capture and storage (CCS) as a crucial tool to expedite the country's decarbonization efforts, with recent policies and funding initiatives aimed at subsidizing the marketplace and incentivizing industrial decarbonization projects.
Notably, the Environmental Protection Agency's power plant rules mandate the installation of CCS technology or closure for fossil fuel power plants by 2039, while the Department of Energy (DOE) has allocated nearly $6 billion in tax credits through the Qualifying Advanced Energy Project Credit Program (48C).
The 48C tax credit targets industrial facilities aiming to reduce emissions by at least 20%, with retrofits eligible for credits distributed by the IRS, emphasizing the deployment of CCS technology and other emissions reduction measures.
Prospective projects must meet specific qualifications, including expanding clean energy manufacturing or reducing greenhouse gas emissions.
The DOE 48C Portal will open on May 22, 2024, for concept paper submissions, a necessary first step in the application process, with a deadline of June 21, 2024.
For Fun:
May 16: Eurasian jays possess the ability of ‘mental time travel’
A study led by the University of Cambridge reveals that Eurasian jays possess a form of episodic-like memory, previously thought unique to humans, allowing them to recall incidental details of past events.
The experiment involved jays remembering the locations of hidden food under cups with unique visual characteristics, even after a 10-minute delay and rearrangement of the cups.
This suggests the birds can encode and retrieve incidental information, akin to human episodic memory, aiding them in locating food stores.
Eurasian jays, highly intelligent birds native to Europe and western Asia, exhibit complex behaviors, including problem-solving and future planning.
The study, published in PLoS ONE, sheds light on the cognitive abilities of non-human animals and underscores the importance of further research in understanding their memory processes.