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Renewable Energy Tax Credits News Briefs - May 2015

U.S. Bancorp and ONIX USA Corporation, an investment company, announced March 16 the closing of U.S. Bancorp’s first renewable energy syndication. The syndication is expected to enable Solar City to install nearly 2,500 solar power systems in homes and businesses in nine states: Arizona, California, Colorado, Connecticut, Hawaii, Massachusetts, Maryland, New Jersey and New York. The syndication is anticipated to finance more than $100 million in solar projects. The installations are expected to create more than 350 construction and installed jobs, as well as produce $76 million in local salaries and secondary spending.

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Utah S.B. 14 was enacted March 24. The bill, effective for taxable years beginning on or after Jan. 1, 2015, eliminates the term “business entity” from all renewable energy tax credit (RETC) provisions. The bill clarifies that taxpayers other than business entities are able to claim Utah’s corporate tax credit renewable energy systems. The bill provides that any taxpayer, not solely a business entity, that owned a commercial energy system could claim the credit.

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On March 24, Michael L. Connor, deputy secretary of the Interior, Franklin M. Orr, undersecretary for the Office of Science and Energy and Jo-Ellen Darcy, assistant secretary of the Army, signed the renewal of a memorandum of understanding (MOU), and a new five-year action plan designed toadvance hydropower across the United States. In signing the MOU, the three agencies represented agreed to extend their existing partnership to support the production of hydropower over a five-year period. The MOU builds on a previous agreement signed March 24, 2010. The signing took place at the U.S. Department of the Interior.

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South Dakota S.B. 180 was signed into law March 13. The bill revises certain provisions regarding the production tax credit for wind energy facilities and to declare an emergency. S.B. 180, effective April 1, also eliminates the escalator provision and reduces the base annual tax to $.000651/KW for wind farms put in use before April 1 and to $.00045/KW for wind farms put in use after April 1.

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On March 12, the U.S. Department of Energy (DOE) released the report, “Wind Vision: A New Era for Wind Power in the United States.” The report analyzes trends in the wind industry up to 2050. The report covers cost reductions and investments that the wind industry has made and will continue to make, provided that the wind’s position in the marketplace grows. The DOE says it intends to inform a broad set of stakeholders, including the industry, policymakers and the public, on the implications of continued U.S. wind deployment. The analysis assesses the costs associated with the deployment of wind power as a major part of the nation’s energy future. The report is available at the Department of Energy website.

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North Dakota H.R. 1228 was signed into law April 2. The bill amends and re-enacts the North Dakota Century Code, relating to the carryforward period for excess geothermal, solar, wind or biomass energy device income tax credits. The bill provides that any excess tax credits earned for wind energy devices installed after Sept. 30, 2008, and before Jan. 1, 2012, may be used as a credit carryover to each of the 30 succeeding taxable years. H.R. 1228 is effective for taxable years beginning after Dec. 31, 2014.

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On March 17, Interior Secretary Sally Jewell spoke at the Center for Strategic and International Studies (CSIS) about the benefits of energy. She discussed tax reform and what she hopes will come out of legislative change. In her remarks, Jewell called for Congress to make tax credits for renewable energy long-term and predictable. She said the government should be investing in incentives for industries that are still getting their foothold in our nation’s energy sector, like wind and solar. She closed by saying the nation’s policies should accelerate American innovation and entrepreneurism, not blunt them. For more information about Jewell’s speech, go to the Department of the Interior.

Journal Category:

Renewable Energy Tax Credits

Authors:

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