Renewable Energy Tax Credit News Briefs – December 2017

Friday, December 8, 2017

The Renewable Electricity Tax Credit Equalization Act (H.R. 4137) was introduced by Rep. Elise Stefanik, R-N.Y., Oct. 25. The bill would amend the Internal Revenue Code of 1986 to modify the credit for electricity produced from certain renewable resources and the investment credit for open-loop biomass, closed-loop biomass, hydropower, geothermal and waste-to-energy technologies. 

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The Louisiana Department of Revenue announced the deadline to submit supporting documentation for solar energy tax credits was Nov. 1. The deadline applies to taxpayers who purchased qualifying systems and submitted their initial claims on or before Aug. 31. Homeowners who received notification from the Louisiana Department of Revenue that their claims require additional supporting documentation had until that date to submit the information, or their claims will be denied. The department sent two follow-up letters and placed phone calls to every homeowner who had not submitted the required documentation. 

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The American Wind Energy Association (AWEA) announced Oct. 26 that the United States reached 29,634 megawatts (MW) of wind power under development. This according to AWEA’s U.S. Wind Industry Third Quarter 2017 Market Report. The report provides insight into U.S. wind industry activity and trends. AWEA stated that this number reached the highest level since this statistic was first measured at the beginning of 2016. The report also stated that the combined pipeline of 29,634 MW of wind capacity includes 13,759 MW under construction and 15,875 MW in advanced development, defined as not yet under construction, but having signed a power purchase agreement, proceeding under utility ownership or announcing a firm turbine order. In addition, within the pipeline, new third-quarter activity represents 4,248 MW of capacity entering advanced development and 638 MW beginning construction.

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Scott Pruitt, Environmental Protection Agency administrator, said Oct. 9 that tax incentives for the wind industry should be eliminated. Pruitt stated the energy sources should compete in the market as opposed to using tax incentives and other types of credits that occur at both the federal and state levels. Congress voted to extend tax credits for both the wind and solar industries in 2015. The wind industry’s 2.3-cent-per-kilowatt hour tax credit began phasing down this year and expires in 2020. The solar industry’s 30 percent tax credit winds down and expires in 2022.

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