Renewable Electricity Tax Credit Equalization Act introduced in House
Reps. Elise Stefanik (R-NY) and Scott Peters (D-CA) recently introduced the Renewable Electricity Tax Credit Equalization Act, which would extend 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.
This bill equalizes the treatment of renewable technologies by eliminating the 50 percent reduction of the production credit for these technologies.
“I’m proud to introduce this legislation to stop the federal government from picking winners and losers among renewable energy production and to incentivize the utilization of clean, renewable energy to bolster both our economy and environment,” Stefanik said. “Unfair tax policies have hampered efforts to work toward a clean energy future for far too long, and I’m proud to lead the effort to ensure equal treatment from the government within renewable energy production. This bipartisan bill will benefit our workforce, economy, and environment for many years to come.”
Extensions have been provided for various renewable technologies, but tax incentives for electricity produced from closed-loop biomass, open-loop biomass, geothermal, municipal solid waste, qualified hydropower facilities and marine and hydrokinetic facilities have been expired for the last two years.
The Renewable Electricity Tax Credit Equalization Act extends the production tax credit (PTC) and the election to take the investment tax credit (ITC) to be available for qualified facilities on which construction begins before 2025.
“NHA appreciates Representatives Stefanik and Peters for offering a bill to eliminate unfair tax policies and enable hydropower and marine energy to play a larger role in America’s clean energy future,” Malcolm Woolf, president and CEO of the National Hydropower Association, said. “The disparity in the tax code puts hydropower at an economic disadvantage and stymies new infrastructure investment. We urge Congress to move quickly to pass this bill so hydropower can make a greater contribution to the decarbonization of the U.S. energy mix, grid resiliency and reliability, as well as electrification of the transportation sector.”
