In the latest evidence of the need for stable federal tax policy, a major solar project in California was abandoned in part due to uncertainty around whether the project would be placed in service in time to qualify for the investment tax credit (ITC), which expires at the end of 2016. Numerous tax credits for advanced energy development expired at the end of last year, and a bill to extend them has passed the Senate Finance Committee but not yet come to the floor. This abandoned solar plant shows that even a credit facing an expiration date that has not yet arrived can stymie projects with long development timelines – a problem that could be alleviated by a simple change in qualification for the tax credit from “placed in service” to “commenced construction,” as was done for the production tax credit in its most recent extension.Recent Posts
In the latest evidence of the need for stable federal tax policy, a major solar project in California was abandoned in part due to uncertainty around whether the project would be placed in service in time to qualify for the investment tax credit (ITC), which expires at the end of 2016. Numerous tax credits for advanced energy development expired at the end of last year, and a bill to extend them has passed the Senate Finance Committee but not yet come to the floor. This abandoned solar plant shows that even a credit facing an expiration date that has not yet arrived can stymie projects with long development timelines – a problem that could be alleviated by a simple change in qualification for the tax credit from “placed in service” to “commenced construction,” as was done for the production tax credit in its most recent extension.Topics: Federal Policy
Congress will return to Washington on Monday, but expectations for action are low. With the mid-term elections two months away, Congress will be in session for only 12 days in September and October this year. It’s likely most major issues will be punted until the lame duck session in November. To avoid another government shutdown, Congress is expected to pass a short-term continuing resolution. Major appropriations issues and any tax extenders are likely to be held off until at least after Election Day 2014 and could be postponed until 2015.
Topics: Federal Policy
The past couple weeks brought two federal regulatory victories for the advanced energy industry. First, on August 8, the Internal Revenue Service released new guidelines that will make it easier for projects to qualify for the renewable energy production tax credit (PTC), which is critical for the wind power industry and other renewable technologies. Then, on August 15, a federal appeals court unanimously affirmed the Federal Energy Regulatory Commission’s (FERC) Order 1000, which will change the way regional transmission projects move forward and ultimately lead to more advanced energy on the grid.
Topics: Federal Policy
U.S. Environmental Protection Agency held regional hearings on its draft rule for carbon emissions from the electric power system – called the Clean Power Plan – this week, and AEE, our Partners, and our members were well represented. As incumbent energy interests decried imagined impacts and environmental groups touted health and climate benefits, AEE and its allies testified that EPA’s emissions targets would be “easy to achieve” with advanced energy technologies – and spark investment to modernize the electric power system for the 21st century and spur economic growth.
Topics: Federal Policy
Over the last week, the U.S. House of Representatives moved two spending bills forward that would be harmful to advanced energy interests. In the Senate, a long confirmation process came to an end with Cheryl LaFleur and Norman Bay confirmed as commissioners of the Federal Energy Regulatory Commission (FERC) but only after the White House committed to keeping LaFleur as the chair for nine months before elevating Bay to the role. Meanwhile, DOE’s Loan Program Office offered $4 billion in loan guarantees for the “next wave” of innovative energy technologies.
Topics: Federal Policy