The 30% cash grant program for U.S. renewable energy projects is set to expire at the end of 2012. Renewable energy advocates are lobbying for a two-year extension of the program, but politics on Capitol Hill might prevent it, according to a Washington Post article.
The program is part of the federal stimulus package passed by Congress in 2009. It allows renewable energy developers to receive up-front cash for capital costs, instead of recouping the funds through a 30% tax credit after completion of the project.
The program has been an undeniable success–especially in the wind industry–kick starting numerous developments that otherwise would have languished in the tight credit market.
There appears to be bipartisan support to extend the cash-grant program, but finding a larger bill to attach it to will be the problem. Divisive party politics in the U.S. Senate has stalled movement on energy legislation, and unless Democrats and Republicans can find some common ground on other issues, the cash grant program is likely to end, at least temporarily, at the end of this year.
Read the full story at the link below.
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This summary states that the tax credits won’t expire until 2012…and that they’re fighting for two more years beyond that. The WP article suggests they end in 2010, and legislators are trying to extend them to 2012.