The U.S. Senate approved a climate bill yesterday that will significantly help certain business sectors.
The bill, if passed by the House and signed by President Joe Biden, is wide-ranging—on energy, climate, taxes, health care, and more. Approximately $370 billion in funding will go toward clean energy. And companies in this sector will likely benefit from it.
The bill that passed with the tie-breaking vote of Vice President Kamala Harris contains benefits for electric-vehicle (EV) makers, solar and renewable energy providers, and oil companies.
There is a $7,500 tax credit that will benefit EV manufacturers such as Tesla, General Motors, Ford Motor, and Toyota.
The bill will provide tax credits that will mean homeowners could be reimbursed up to 30% of the cost of installing a rooftop solar system. On average, rooftop solar systems cost $20,000, according to Solar Energy Industries Association.
Solar energy companies like Sunrun Inc., First Solar, and Momentum Solar could also benefit from the new bill. The stock of solar maker First Solar popped more than 7% today on the news.
Energy storage provider Stem Inc. will benefit from a growth in alternative energies. As will hydrogen-cell provider Plug Power. There are also many tax credits incentivising homeowners to convert to more energy efficient air conditioners, windows, and electric appliances.
Nuclear power providers such as Southern Co., Constellation Energy Corp., and Public Service Enterprise Group Inc. also received a tax credit of $30 billion.
Companies like Exxon Mobil and Occidental Petroleum Corp. will receive benefits from tax credits for carbon capture in the bill. More federal oil and gas lease sales could also be mandated in the bill.