Renewable Energy News Briefs - April 2021

Wednesday, April 7, 2021

Rep. Mike Thompson, D-California, and 24 co-sponsors reintroduced the Growing Renewable Energy and Efficiency Now (GREEN) Act Feb. 4. The legislation would extend the renewable energy production tax credit (PTC) and investment tax credit (ITC) for certain resources, including wind and solar. The GREEN Act, which was also introduced in the previous session of Congress, would extend the 30% ITC for solar and geothermal through the end of 2025 before beginning a phasedown. Other property currently eligible for the ITC would be extended through the end of 2026, then begin a phasedown, while energy storage technology and linear generators would become eligible for the ITC. The Section 179D energy-efficient commercial buildings deduction would increase from $1.80 to $3 per square foot starting in 2022 and the Section 45L new energy-efficient home credit would be extended through 2026. The bill would also extend the PTC for wind energy at the current level of 60% through the end of 2026. The PTC for landfill gas, trash, qualified hydropower and marine and  hydrokinetic renewable energy facilities would also be extended.

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Legislation introduced in the House of Representatives March 3 would extend the renewable energy ITC for 10 years at a 30% rate. The Sunshine Forever Act (H.R. 1557), introduced by Rep. Charlie Crist, D-Florida, would extend the ITC through 2034 at the pre-phasedown rate of 30%. The ITC is now at 26% with further phasedown coming to 10% in 2024. The Sunshine Forever Act would reinstate the 30% credit for properties placed in service from 2021 through 2034.

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Sen. Debbie Stabenow, D-Michigan, introduced legislation March 1 to provide a 30% tax credit for manufacturers to retool or build new facilities to produce advanced energy parts or technology. According to a press release by Stabenow’s office, the American Jobs in Energy Manufacturing Act would provide the tax credit to companies that make batteries, electric and fuel cell vehicles, semiconductor chips, components to produce renewable energy and more. Half of the funding would go to projects in communities where coal mines or coal plants have been closed and the communities did not receive the Section 48C advanced energy manufacturing tax credit, part of the American Recovery and Reinvestment Act in 2009. The text of the bill was not immediately available.

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A bill was introduced in the Ohio Senate Feb. 24 to extend the state’s payment in lieu of taxes program through 2030 for qualified renewable energy developments. S.B. 89 would also make the 8.5% renewable energy portfolio standards permanent.

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A bill introduced in the Indiana House of Representatives Jan. 14 would provide certainty and structure to the valuation of land when it is used for solar generation purposes. H.B. 1438 would formalize the land valuation method for assessments after Dec. 31, 2021, to include solar generation facilities in the definition of public utility companies, which are generally assessed more favorably than commercial or industrial facilities. This legislation would allow the Indiana Department of Local Government Finance to set median tax value for county assessors for three regions on an annual basis.

Journal Category: 
Renewable Energy Tax Credits
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