The legislation would extend the Production tax credit for geothermal
On Monday evening, November 26, the House Ways and Means Committee unveiled its draft of the Taxpayer First Act of 2018, which would retroactively extend several dozen tax credits that expired at the end of 2017 as well as make additional technical corrections to the Tax Cuts and Jobs Act (comprehensive tax reform legislation enacted in December 2017).
The House proposal reinstates and provides a one-year, retroactive extension of expired energy tax credits. Introduction of the bill is promising in that it sets the stage for potential action on tax extenders. However, the affected energy industries are seeking multi-year extensions to provide more certainty for businesses and investors. The bill also does not address the energy technologies currently excluded from the tax code, such as storage and waste heat to power.
The legislation would extend the Production tax credit for geothermal (Sec. 45(d) and the ability to use the investment tax credit (Sec. 48) in lieu of the production tax credit through the end of 2018.
