DETAILS OF ENERGY TAX LEGISLATION UNVEILED
Senate Finance Chairman Max Baucus (D-Mont.) and House Ways and Means Chairman Charles Rangel (D-N.Y.) today unveiled details a package of energy tax legislation. The House is expected to vote this week on the $21 billion package, which would provide long-term extensions of tax credits for renewable electricity. The Clean Renewable Energy and Conservation Tax Act of 2007 would extend the placed-in-service date for the Section 45 renewable energy production tax credit for four years through December 31, 2012 for qualifying facilities: wind; closed-loop biomass; open-loop biomass; geothermal; small irrigation hydropower; landfill gas; and trash combustion facilities. The measure would also create a new category of qualifying facilities – those that generate electricity from marine renewables. The package would cap the aggregate amount of tax credits that can be earned for qualifying facilities placed in service after December 31, 2008 to an amount that has a present value equal to 35 percent of the facility’s cost. The proposal to extend and modify the production tax credit is estimated to cost $6.6 billion over 10 years. The bill would also extend the 30 percent investment tax credit for solar and fuel cells, and the 10 percent credit for microturbines for eight years through December 31, 2016 and create a new 10 percent investment tax credit for combined heat and power property. The measure would also increase the cap on fuel cell credits from $500 per half kilowatt hour to $1,500. The investment tax credit extension is estimated to cost $602 million over 10 years.