On the ninth try in lss than a year, the Senate finally passed a bill yesterday that extends federal tax credits for renewable energy yesterday, by an overwhelming vote of 93-2.
The extensions were part of a larger bi-partisan tax relief bill proposed by Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa).
Under the Senate bill, the solar investment tax credits (ITC) will be extended for 8 years, for both commercial and residential consumers. This includes a complete elimination of the $2,000 cap for residential systems and an allowance for utilities to make use of the commercial credit.
The production tax credit (PTC) for wind power will be extended for one year. The credit for other renewable sources, such as hydro and geothermal projects, will be extended for two years.
However, the bill first must be pass the House. Although the house has approved extensions of the tax credits in the past, many representatives have expressed concern over provisions of the Senate bill that support "dirty" energy sources, such as liquid coal.
In addition, other measures in the Senate bill are not fully paid for, and House Democrats have taken a strong stance against further deficit spending.
The extension of the renewable energy tax credits is paid for by a tightening of tax benefits for the oil and gas industries on income earned overseas. The bill also freezes the tax deduction oil and gas companies receive for their domestic manufacturing operations at 6%. And finally, it requires oil producers to pay a larger amount to the Oil Spill Liability Fund.
Surprisingly, Senate Republicans agreed to these provisions, which derailed earlier attempts to pass the tax credit extensions.
The Whitehouse has urged lawmakers to remove the provisions, but has not threatened a veto.
With time running out in this Congressional sesion, Senate leader Harry Reid (D-Nev) has urged the House to pass the bill as is, noting the difficulty the Senate has had in passing the legislation.
However, it is more likely that the two chambers will pass the legislation back and forth in an attempt to find common ground.
Other measures in the bill include a $7,500 credit for taxpayers who purchase plug-in electric vehicles and a one-year adjustment to the alternative minimum tax (AMT), tax breaks for people paying state and local general sales tax and for natural disaster victims.
Loading...