Final Version of Tax Bill Preserves Renewable Energy Incentives

Final Version of Tax Bill Preserves Renewable Energy Incentives

In a sign of green energy’s growing clout, the final Republican tax bill preserves most of the wind and solar incentives.

We’d previously reported that the House bill dramatically slashed renewable energy incentives including tax credits for residential solar, the wind developer Production Tax Credit, and the $7,500 electric vehicle tax credit.

But after reconciling the Senate and House versions of the bill, lawmakers – many from states that depend on green energy – left the incentives intact. And renewable energy’s political clout has never been higher – Iowa, for example, gets 1/3 of its electricity from wind turbines.

“As wind and solar projects have soared in the U.S., in both red and blue states, so has the industry’s influence in Washington, D.C.,” said Dan W. Reicher, director of Stanford’s Center for Energy Policy and Finance.

But the green energy sector had a mixed reaction to the final bill – it still retains the Base Erosion Anti-Abuse Tax which, as previously noted, applies a 100% tax on tax credits earned by companies with overseas operations.

“We remain concerned about the potential impacts of the new Base Erosion Anti-Abuse Tax (BEAT) on renewable energy finance,” said Gregory Wetstone, President and CEO of the American Council on Renewable Energy. Whetstone added that the bill doesn’t cover the full duration of the wind production tax credit (PTC).

The final draft also opens Alaska’s Arctic National Wildlife Refuge to drilling.

The House will vote on the final version of the tax bill tomorrow (Thursday 12/21) morning before it lands on President Trump’s desk for approval.