Renewable Energy Tax Credit News Briefs – July 2019

Tuesday, July 9, 2019

Sen. Ron Wyden, D-Ore., and 24 co-sponsors introduced May 2 legislation to create a clean energy production tax credit (PTC) and investment tax credit (ITC) that would consolidate the 44 current energy incentives. The Clean Energy for America Act of 2019 would create a PTC of up to 2.4 cents per kilowatt-hour for facilities that are at least 35 percent cleaner than average and a 30 percent ITC for facilities with zero carbon emissions. The bill would also provide a tax credit for fuels that are at least 25 percent cleaner than the average. The co-sponsors released a one-page summary and a section-by-section summary of the legislation. Similar legislation was released in the previous session of Congress. The bill is available at www.energytaxcredits.com.

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Senate Finance Committee Chairman Chuck Grassley, R-Iowa, and Ranking Member Ron Wyden, D-Ore., May 16 formed five task forces to examine expired and expiring tax extenders. The task forces will cover workforce and community development, health taxes, energy, business cost recovery and individual excise taxes and other temporary policies. There will be a sixth task force for related issues of temporary disaster tax relief. The new markets tax credit is set to expire after the 2019 round of allocations and the renewable energy ITC and PTC are in phasedowns, while the Section 45L credit for energy efficient homes and the Section 179D energy-efficient commercial buildings deduction both expired at the end of 2017. Grassley and Wyden in February introduced legislation to extend 29 expired provisions.

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Reps. Earl Blumenauer, D-Ore., and Darin LaHood, R-Ill., May 14 introduced the Renewable Energy Transferability Act, which would allow the transfers of the renewable energy ITC and PTC. Provisions would apply to taxable years beginning after the date of the bill’s enactment.

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Reps. Jeff Van Drew, D-N.J., and Mike Kelly, R-Pa., introduced May 31 the Commercial, Low Emissions and Net Energy Reduction Buildings Act of 2019. The bill would extend the tax deduction for energy efficient commercial buildings in Internal Revenue Code Section 179D. Section 179D offers a tax deduction to building owners and businesses for energy efficiency improvements such as lighting, heating and cooling, hot water systems, ventilation or the building envelope such as insulation or windows.

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