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Manchin Opposing Direct Payments for Clean-Energy Developers (1)

June 23, 2022, 3:37 PM

Senator Joe Manchin’s opposition to giving clean-energy developers direct payments may significantly reduce the tax credits they could get from Democrats’ reconciliation package, according to analysts.

The West Virginia Democrat is opposed to making the credits refundable, the so-called direct-pay option that would let developers avoid pursuing complicated tax-equity financing, according to two people familiar with his views.

If direct pay isn’t available, tax-equity deals may net developers 20% to 50% less in some cases, according to Sasha Mackler, executive director of the Bipartisan Policy Center’s energy program. That could hinder deployment of some clean-energy projects.

“The ...