No fix yet for solar, wind credits in Senate tax bill

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Later today, we will find out if the Investment Tax Credit (ITC) for solar and the Production Tax Credit (PTC) for wind will be rendered largely useless, when the Senate tax bill comes to a vote under a self-imposed deadline which allows only 20 hours of debate in the chamber.

And as we come towards this deadline, it is unclear if Solar Energy Industries Association (SEIA) and American Council on Renewable Energy (ACORE) will be able to get an exemption to from the Base Erosion Anti-Abuse Tax (BEAT) for the ITC and/or PTC.

“We’re still working hard and hope to know more after the roll call votes start at 11 am,” ACORE VP of Communications Gil Jenkins told pv magazine.

SEIA, ACORE and the American Wind Energy Association (AWEA) have stated in a joint letter that the provision could be “devastating” for solar and wind deployment, and multiple parties have confirmed to pv magazine that the biggest providers of tax equity financing for solar projects would be unable to make use of the credit under the new rules.

As has been widely covered, the bill has larger problems. The tax reform effort ran into trouble yesterday when it was revealed that Senate rules would not allow a mechanism to increase taxes in combing years if the bill fails to boost the economy enough to cover the significant tax cuts it plans.

As of this morning, Republicans were attempting to hastily assemble a plan to fill the projected budget deficit that the bill would create. pv magazine will provide more information today as the bill comes to a vote.

 

For more information on the BEAT provision please see our interview with Keith Martin of Norton Rose Fulbright.

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