House clean energy package pledges new, expanded renewable energy tax incentives
The House Ways and Means Committee released Tuesday a discussion draft of a sweeping clean energy tax package that pledges action on climate change through a five-year extension of the solar Investment Tax Credit (ITC) and a slew of new incentives linked to energy storage.
The Growing Renewable Energy and Efficiency Now (GREEN) Act was introduced by Select Revenue Measures Subcommittee Chairman Mike Thompson and committee Democrats. It is a means to climate action through the tax code and combines a mix of extensions for current efforts — as in the case of the existing 30 percent ITC — and plans for new ones.
“Estimates say that climate change will cost Americans more than $500 billion each year by the end of this century,” Thompson said. “We cannot afford to wait any longer to address this existential threat. Today I am proud to lead my colleagues in unveiling the GREEN Act, a comprehensive approach to addressing the threat of climate change through our tax code. This bill will build on existing tax incentives that promote renewable energy and increase efficiency and create new models for technology and activity to reduce our carbon footprint.”
Specifically, the GREEN Act would use new and existing tax benefits to promote green energy technologies and incentivize the reduction of greenhouse gas emissions. It represents a push to increase efficiency and green efforts in both residential and commercial buildings while supporting zero-emission efforts in the transportation industry — electric vehicles — and tax credits for environmental justice via research and academic programs.
The GREEN Act also seeks to revamp the workforce through energy credits for manufacturers, such as in the labor costs of installing mechanical insulation property and extension of the advanced energy project credit. On the federal side of things, it would also require the Treasury Department to analyze the feasibility of a price on greenhouse gas emissions, through a mechanism known as the Greenhouse Gas Reporting Program.
The GREEN Act has already received backing from at least 20 organizations.
“This is a positive development for everyday Americans who want access to affordable clean energy,” Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), said of the package. “The Solar Investment Tax Credit (ITC) enjoys bipartisan support in the House and is responsible for making solar energy an American economic success story. An ITC extension will create thousands of jobs, add billions of dollars in private investment to the economy, and reduce emissions. These benefits will be further accentuated with the inclusion of storage in a clean energy tax package.”
Beyond the SEIA, the discussion draft has received support from groups including: Alliance to Save Energy, American Biogas Council, American Council on Renewable Energy (ACORE), American Public Power Association, American Wind Energy Association, Baseload Power Association, Biomass Power Association, Citizens’ Climate Lobby, Electric Drive Transportation Association, Energy Storage Association, Environmental Defense Fund, Fuel Cell and Hydrogen Energy Association, League of Conservation Voters, National Hydropower Association, National Resource Defense Council, National Wildlife Federation, Sierra Club, Union of Concerned Scientists and U.S. Green Building Council.
“The Ways and Means Committee GREEN Act Discussion Draft represents a thoughtful, constructive and forward-looking approach to clean energy tax policy,” Gregory Wetstone, president and CEO of ACORE, said. “We are particularly encouraged by the stable tax platform this proposal would bring to the renewable sector, and its critical support for emerging markets like energy storage, electric vehicles, and offshore wind.”
Lisa Jacobson, president of the Business Council for Sustainable Energy, called the measure both comprehensive and inclusive, as well as predictable — in a way that would provide market signals capable of spurring private sector investment.
“The GREEN Act includes measures to retroactively extend expired credits, to extend and improve soon to be expiring measures and to address new areas of focus,” Jacobson said. “Federal tax policy has been an effective driver of investment and deployment for a broad range of clean energy technologies, resulting in significant benefits to the environment and the American economy.”
