Congress is inching closer to passing a tax bill, according to reports. Clean energy advocates are watching closely to see what industries will benefit from extended tax incentives.
The biggest concern for the renewable energy industry is that the
Treasury Grant Program (TGP) will likely be left out of the bill. The
program, which has widely been credited with keeping renewable energy
projects in development through the economic crisis, expires at the end
of the year.
Senator Dianne Feinstein published an editorial on Politico
arguing that TGP must be extended. "If Congress allows taxes to
increase on renewable development, momentum could be lost. The future of
renewable energy may be jeopardized," she states.
So far it appears likely that the biodiesel production tax credit, which has been lapsed for nearly a year, WILL be reinstated, along with incentives for purchasing hybrid vehicles and making home improvements for energy efficiency.
Some reports also suggest a blending tax credit for ethanol will likely make it into the final bill. However it is unclear whether the subsidy will be extended at its current level of 50-cents-per-gallon, or at a lower level of 36 cents per gallon, which has been proposed by several Democrats.
Kerry and Lieberman Ready to Give it Another Shot
Senator John Kerry (D-Mass.) aknowledged that the tax package is likely to come up short for clean energy programs. But he insisted that there will be a “huge energy debate” early next year in the Senate. Likewise, his climate bill legislative partner Senator Joseph Lieberman (I-Conn.), said he is gearing up for another run at an energy bill next year. This time, he says he will include nuclear energy, in an effort to draw Republican support.
Read full coverage on The Hill at the link below.
Loading...