Efforts to Extend Federal Renewable Energy Tax Credits
The latest House bill to extend various renewable energy production tax credits (HR 5351) is an important lynchpin to keeping the country moving forward as it weans itself from fossil fuels. The bill deserves the support of everyone interested in renewable energy and sustainability issues. The current bill would extend the production tax credit (used mostly for wind, biomass and landfill gas projects) to December 31, 2011, and would extend the investment tax credit (used primarily for solar projects) to December 31, 2016. It also would create a new, 50 cent-per-gallon tax credit to produce cellulosic ethanol, a $4,000 tax credit for plug-in hybrid vehicles, and modify various other, smaller renewable energy tax credit and bond programs.
As with similar legislation that stalled in 2007, the bill pays for the cost of these tax credits by repealing certain tax deductions enjoyed by the oil and gas industries. Repeal of these deductions was the source of Republican and administration opposition in 2007, and a repeat of those objections should be expected this year.
Posted by David J. Petersen, partner practicing in the Sustainability and Real Estate & Land Use Practice Groups.
