Senate Tax Bill Brings Good News for Renewables

 Unlike the House bill, the Senate’s proposal keeps renewable tax credits in place.

After the the House’s version of a tax overhaul bill slashed clean energy credits, the industry expressed widespread anxiety. But the Senate’s draft mostly spares incentives for clean energy projects. 

The House bill proposed slashing the Production Tax Credit (PTC) for wind by over a third. It also eliminates a $7,500 credit for electric-vehicle purchases. The solar industry would see an end to the Investment Tax Credit after 2027 for commercial and utility-scale solar projects, and an end to the 10 percent credit for residential projects (which is already set to expire in 2021). Under current law, commercial projects would still benefit from a 10 percent tax credit after 2021.

Legislators Heed Solar Sector's Clarion Call To Modify ITC

If several recently introduced legislative bills give any indication, Congress has heard the call from solar energy advocates to modify the investment tax credit (ITC).

The ITC, which expires Dec. 31, 2016, currently pays a credit of 30% for qualifying projects. If no changes are made, the credit shrinks to 10% in 2017.

In recent months, both the House and Senate have introduced legislation that not only calls for an ITC extension but also stipulates that solar projects should qualify for the tax incentive based on when they start construction, as opposed to when they are placed

 into service.                                  

US Senators Introduce Energy Storage Bill

U.S. Senators have introduced a Storage Technology for Renewable and Green Energy Act for 2013. This Act, also known as the STORAGE Act, will promote the deployment of energy storage technologies in the U.S. All storage technologies are supported by the bill.

The Act provides a 20% investment tax credit of up to US$40 million per project for storage systems that are connected to the grid and distribution system.The total amount available for these projects is capped at $1.5 billion.

New legislation proposes slashing 'Big Oil' subsidies to promote renewables

For some solar policy advocates, a recent bill introduced in Congress would appear to represent their dream legislation. After all, its purpose, as summarized simply in its introduction, is "to provide incentives for clean energy and to repeal fossil fuel subsidies for big oil companies."

This bill, called the Investing to Modernize the Production of American Clean Energy and Technology Act of 2012 (IMPACT Act), made an appearance on the U.S. House of Representatives' floor last week, when it was introduced by Reps. Ed Markey, D-Mass.; Henry Waxman, D-Calif.; John Larson, D-Conn.; Earl Blumenauer, D-Ore.; and Bill Pascrell Jr., D-N.J.

New Florida law creates renewable energy production tax credit

New legislation, which was allowed to become law without Florida Gov. Rick Scott's signature, contains several provisions relating to renewable energy, energy efficiency and alternative fuels for motor vehicles.

Among these provisions is a renewable energy production credit against the corporate income tax based on $0.01/kWh of renewable energy produced. The cap is $1 million per corporation and $5 million for state fiscal year 2012-2013, which is increased to $10 million for 2013-2014 through 2016-2017, with provisions for prorating credits if claims exceed the annual cap.

Florida energy bill becomes law, includes biofuel tax exemptions

New energy legislation in the state of Florida became law April 14 despite Florida Gov. Rick Scott’s failure to sign the bill. The legislation, HB 7117, contains several measures aimed to encourage the development and expansion of the renewable energy sector within the state, including biofuels production and distribution. The bill also addresses policies and restrictions for growing certain strains of algae and cyanobacteria.

The bill specifically addresses biodiesel, ethanol and renewable fuel, which is defined as a fuel produced from biomass that is used to displace fossil transportation fuels. Under the legislation, a sales tax exemption is established for materials used in the distribution of B10-B100, E10-E100 and other renewables. 

ESA applauds bipartisan Gibson-Thompson Bill to create energy storage ITC

The Electricity Storage Association (ESA) applauded news this week that U.S. Reps. Chris Gibson (R-NY) and Mike Thompson (D-CA) introduced legislation that would create an investment tax credit (ITC) for energy storage technologies of all types and help jumpstart an industry that has enormous potential to increase the reliability, security, and efficiency of the nation's electric grid.  The Storage Technology for Renewable and Green Energy Act (STORAGE) Act (H.R. 4096) is the House companion legislation to S. 1845, introduced by Sens. Ron Wyden (D-OR), Jeff Bingaman (D-NM), and Susan Collins (R-ME). 

ESA applauds bipartisan Gibson-Thompson Bill to create energy storage ITC

The Electricity Storage Association (ESA) applauded news this week that U.S. Reps. Chris Gibson (R-NY) and Mike Thompson (D-CA) introduced legislation that would create an investment tax credit (ITC) for energy storage technologies of all types and help jumpstart an industry that has enormous potential to increase the reliability, security, and efficiency of the nation's electric grid.  The Storage Technology for Renewable and Green Energy Act (STORAGE) Act (H.R. 4096) is the House companion legislation to S. 1845, introduced by Sens. Ron Wyden (D-OR), Jeff Bingaman (D-NM), and Susan Collins (R-ME). 

"We are delighted that Rep. Chris Gibson, who has championed energy initiatives and transmission issues in his Congressional district, and Rep. Mike Thompson, a staunch supporter of clean energy technologies, understand the value of energy security and have taken such a strong interest in energy storage," said Brad Roberts, Executive Director of the ESA. "Energy storage technologies help all resources – whether renewable, natural gas, coal, or nuclear – run more smoothly. Our innovations have been tested on the grid and proven to be of enormous benefit; this tax credit will help developers secure private sector equity and debt financing for their projects."

USA: Extending the Renewable Energy PTC

Rep. Dave Reichert (R-WA) and Earl Blumenauer (D-OR) have introduced legislation aimed at extending the Production Tax Credit, or PTC. 

First conceived in 1992 as part of the Energy Policy Act (H.R. 776), the PTC has been renewed year after year and also incorporated into the Energy Policy Act of 2005 as part of that Act’s Renewable Energy Production Incentives. The PTC currently provides a 2.2-cent per kilowatt-hour (kWh) on wind, closed-loop biomass, and geothermal resources for the first decade of a renewable energy facility’s life. Other renewable forms of energy receive a tax credit of 1 cent per kWh.