Renewable Energy Tax Credits At Risk?
A few nights ago I attended an event with Sen. Max Baucus (D-MT), chair of the influential Senate Finance Committee which will consider extension of the federal production and investment tax credit that benefits the deployment of renewable energy sources. The extension has been held up in part due to disagreements over oil drilling.
Baucus, who was joined at the Portland event by his Senate Finance Committee colleague, Sen. Ron Wyden (D-OR), confidently assured that the extension would be passed before the current Congress adjourns. He was optimistic that an agreement on the extension could be reached and passed perhaps even before Election Day.
This year Congress is weighing extensions of tax credits totaling more than $50 billion over the next decade. The renewable energy production tax credit would cost $7 billion and two solar investment credits would cost $2.7 billion over 10 years. Despite the certainty Baucus expressed on the likelihood of an extension of the production and investment tax credits, Baucus cautioned that the total cost of the extension, and thereby the full availability of credits, might be reduced from current proposed levels in order to reach consensus.
Posted by Jack Isselmann, partner practicing in the Government Relations and Public Policy and Sustainability Practice Groups.
