A number of renewable energy tax credits are set to expire on December 31, 2013. Neither the House nor Senate has introduced legislation or amendments that would likely advance before the end of the year. The expirations will affect multiple industries, including wind, biofuels, and other renewable energies.
Overview
More than a dozen tax credits for the renewable energy industry are set to expire at the end of the year – including credits for wind and biofuels. Given the current congressional environment, many – if not all – of these credits will be allowed to expire. Congress will have several policy options moving forward. The tax provisions could be a part of comprehensive tax reform, tax extender, or retroactive extension legislation. Several lawmakers have proposed a Debt Ceiling “Grand Bargain” that would include tax reform. The President’s FY 2014 budget could permanently extend several credits. In addition, a bipartisan proposal to permanently transition the renewable energy industry to a structure with similar mechanisms as those for fossil fuels is gaining traction in both the House and the Senate.
Key Takeaways:
-More than a dozen renewable energy tax credits are set to expire on December 31, 2013
-Given the congressional climate, it is likely that most of these credits will be allowed to expire, with near-term impact to industry
-Policy options moving forward include structural changes that could result in increased long-term stability
