USA: Legislation Would Extend Tax Credits for Investments in Qualified Renewable Energy Production Including Geothermal

Renewable Electricity Tax Credit Equalization Act introduced in House (News Release)

Congresswoman Elise Stefanik

Today, Congressman Scott Peters (CA-52) and Congresswoman Elise Stefanik (NY-21) introduced the bipartisan Renewable Electricity Tax Credit Equalization Act, which extends tax credits for investments in qualified renewable energy production, including closed-loop biomass, open-loop biomass, geothermal, municipal solid waste, qualified hydropower, and marine and hydrokinetic. The bill also eliminates the arbitrary 50 percent reduction of the production credit for these baseload technologies to incentivize development of all renewable energy technology.

Tax incentives for electricity produced from closed-loop biomass, open-loop biomass, geothermal, municipal solid waste, qualified hydropower facilities, and marine and hydrokinetic facilities expired two years ago, while other renewable technology received extensions.

Renewable baseload technologies play an indispensable role in maintaining a reliable and functioning electrical grid system; They also support the integration of additional wind and solar electricity into the grid. The Renewable Electricity Tax Credit Equalization Act levels the playing field and provides certainty to spur necessary investments in clean energy:

• Extends both the production tax credit (PTC) and the election to take the investment tax credit (ITC) to be available for qualified facilities on which the construction begins before 2025.
• Equalizes the treatment of renewable technologies by eliminating the arbitrary 50 percent reduction of the PTC for these technologies.

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