A "corporate tax reform bill"-containing a stopgap extension of the wind energy production tax credit (PTC) (through 12/31/04)-became bogged down in the Senate this week over unrelated issues involving overtime pay for workers.
After failing to gain the 60 votes needed to limit debate and move forward on the corporate tax bill, Senate Majority Leader Bill Frist (R-Tenn.) chose to stop action on that bill rather than be forced to allow a vote on Sen. Tom Harkin's (D-Iowa) overtime pay amendment. The upshot is that a key avenue for gaining a PTC extension this year-outside of stalled energy policy legislation-has been blocked at least temporarily.
Dorgan/Coleman 3-Year PTC Amendment was Ready to Go had the corporate tax bill (S. 1637) remained under consideration on the Senate floor, Sens. Byron Dorgan (D-N.D.) and Norm Coleman (R-Minn.) were prepared to offer an amendment to extend the PTC for a full three years (through 12/31/06). Also joining in support of this bipartisan amendment were Sens. Maria Cantwell (D-Wash.), Patty Murray (D-Wash.), Jeff Bingaman (D-N.M.) and Ben Nelson (D-Neb.).
The Dorgan/Coleman amendment-which may be brought up during future consideration of the corporate tax bill or other legislation-calls for:
– Extending the PTC through 12/31/06 (a 3-year extension); – Maintaining the PTC inflation adjustment provision;
– Creating an exemption from the requirements of the Alternative Minimum Tax (AMT) for the first four years of turbine operation;
– Expanding the PTC to include solar, geothermal, small irrigation hydro power, municipal solid waste, and additional forms of biomass; and
– Allowing municipal and cooperative utilities access to tradable PTCs (no other entities would be eligible for such treatment)
AWEA continues to support passage of the energy policy bill (S. 2095) and is working every available avenue to gain the longest possible PTC extension at the earliest possible time.
IRS Sets PTC Inflation Adjustment at 1.8 Cents for 2004
In a separate development, the PTC will remain at 1.8 cents for calendar year 2004. The announcement was made March 24 by the Internal Revenue Service, which is required to recalculate the inflation adjustment factor once every year.
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