Monday, November 13, 2017

Senate tax bill much kinder to renewables than House's

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

Emma Foehringer Merch reports for gtm:



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.
The bill does extend a $6 billion nuclear credit to benefit the one nuclear project now underway, Georgia’s Vogtle plant.
The Senate’s bill is decidedly more gentle. It keeps the $7,500 EV credit and the previously established credit step-down for solar and wind agreed to in 2015.
“The Senate bill, if passed as-is, I imagine would have no impact on the Investment Tax Credit or the Production Tax Credit,” said Gerald Feige, counsel in the tax group of Shearman & Sterling LLP.
Under the current agreement, wind projects that begin construction in 2017 receive 80 percent of the original tax credit, 60 percent in 2018 and 40 percent in 2019, before the credit expires. For solar, projects receive a 30 percent investment tax credit through 2019, 26 percent in 2020, and 22 percent in 2021. Past that year, commercial solar projects maintain a tax credit of 10 percent, while residential projects get zero.
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