Future Unclear for ‘Orphaned’ Renewable Energy Tax Credit Expirations

Published by Michael Novogradac on Wednesday, April 27, 2016 - 12:00am

Since December, members of the renewable energy community have been working to extend the renewable technologies that weren’t included in December’s legislation that extended the investment tax credit. The affected technologies include fuel cells, small wind projects and geothermal heat pumps, among other renewable resources.

While it’s unclear if those technologies were deliberately left out of December’s extenders package or if it was an oversight, supporters of the technologies in question have worked to get them extended as part of other legislation. As discussed in this week’s Tax Credit Tuesday podcast, there was some hope extension legislation would be included in the bill to reauthorize the Federal Aviation Administration (FAA) but the FAA bill passed last week, without provisions that address renewable technologies.

Sen. John Thune, R-S.D., chairman of the Commerce, Science and Transportation Committee and member of the Senate Finance Committee, told reporters last week that it’s possible that the so-called orphaned technologies could still be extended before the end of the year. The earlier an extension is passed the more certainty it would provide for renewable energy investors, but it’s most likely the tax credits will not be extended until the technologies get closer to their Dec. 31 sunset date.

In the meantime, Novogradac & Company has created a summary chart of renewable energy tax credit provisions and their current expiration dates for reference.