Renewable Energy Tax Priorities

Published by Michael Novogradac on Thursday, June 2, 2011 - 12:00am

At a House of Representatives hearing on June 1, the wind and solar energy industries had an opportunity to publicly state their major tax legislative initiatives for 2011.

Wind Industry

The wind energy industry emphasized extension of the production tax credit beyond 2012. Roby Roberts, Co-Chairman, Legislative Committee, American Wind Energy Association, said:

“The biggest roadblock facing the wind energy industry right now is the lack of a consistent and long-term federal policy to support renewable energy. Despite bipartisan support, tax credits for wind and other forms of renewable energy have been on-again, off-again. The production tax credit, which is the key existing federal tax incentive for wind energy development, expires at the end of 2012. . . .  We request that Congress . . . extend the production tax credit for wind energy this year. Given lead times for project development, it is important to act now to avoid a lull in development post-2012. Business decisions for 2013 are already being made.”

Solar Industry

The solar industry opted to push extension of the Section 1603 cash grant program past the end of this year.  Rhone Resch, President and CEO, Solar Energy Industries Association, made five recommendations, one of which was:

“Extend the 1603 Treasury Program, which allows solar and other renewable energy developers to receive a direct federal grant in lieu of taking the investment tax credit, which is already in place.”

It was a House Committee hearing