Just
before the summer recess in Congress was declared, the Senate Finance Committee
passed a measure including a one year extension of production tax credits for
wind and geothermal energy projects, making the incentive applicable to
projects breaking ground any time until the end of 2013. The credit is set to
expire at the end of 2012 unless both houses of Congress pass the measure,
cobbled together by Senate Finance chairman Max Baucus and ranking member Orin
Hatch. Reported out of the Senate Finance Committee on a bipartisan vote of
19-5, the bill includes a total of $205 billion in tax cut extensions for
individuals and businesses.
While
Committee passage of the bill is welcomed by energy businesses, some renewable
energy advocates mourn that it does not go far enough. “A temporary tax
provision I don’t think provides enough incentive for capital investment, and
that’s what our industry needs,” according to Associated General Contractors of
America Senior Executive Director of Governmental Affairs Jeff Shoaf.
American
Council of Engineering Companies Vice President of Governmental Affairs Steve
Hall, says the tax credits are “absolutely essential” for the health of the
renewable energy economy.
The
fate of this legislation when Congress reconvenes after the summer break is
still uncertain. Tax credit extensions are just the first step in comprehensive
reform of the Internal Revenue Code, and all such legislation may well be
pushed back on the Congressional calendar until after the November elections.
Furthermore, should some sort of tax cut extender bill get passed when Congress
comes back into session, there will be heated debate over, and revisions to,
the contents of this bill before anything reaches the Oval Office for
signature.
