Renewable Energy Sector Likely to be hit by New US Tax Reform Bill

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In a recent move, the U.S Senate has passed its version of a tax reform bill pertaining to Investment Tax Credit (ITC) and Production Tax Credit (PTC). Unlike changes in the bill passed by the U.S. House of Representatives, the one passed by the U.S. Senate is free of changes on which solar and wind energy developers depend for help to finance projects. Howbeit, the bill does make changes in the way corporations can use tax equity via a provision called BEAT. This, however, is a concern among stakeholders that it may result in significant loss of tax equity finance available in the market.

Advanced Energy Economy Opines Tax Reform to Risk Investments, Jobs in Renewable Energy

As per stipulations in the bill, most U.S. corporations would move from regular corporate income tax to alternative minimum tax, as stated by an associated with a law firm. Moreover, not all tax credits can be utilized against the minimum tax, and depreciation needs to be calculated at a slow pace.

As stated by an associate at Advanced Energy Economy, the version of tax bill passed by the U.S. could put investments up to US$200 billion at stake. The organization opposes any legislation that could risk billions of dollars of investment and thousands of American jobs. AEE intends to continue to work with the Senate and the House in a bid to ensure that the tax bill sent to the President is favorable for an advanced energy industry that employs 3 million people across the country.

As further stated by AEE associate, congress needs to stop attacks on competitive markets quoting statutes of Perry Energy Tax now prior to Federal Energy Regulatory Commission.

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As one of the lead news writers on CMFE News, Hiren’s specialization lies in the science and technology domains. His passion for the latest developments in cloud technology, connected devices, nanotechnology, and virtual reality, among others, shines through in the most recent industry coverage he provides. Hiren’s take on the impact of digital technologies across the science, technology, and business domains gives his writing a fresh and modern outlook.

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