GOP Senators urge Treasury secretary to provide additional regulatory relief
Three Republican U.S. Senators are urging Treasury Secretary Steven Mnuchin to provide additional regulatory relief for companies through the energy investment tax credit (ITC) and production tax credit (PTC).
“At a time when the renewable energy industry is facing significant challenges, these steps will help protect American jobs and provide investor certainty as we work to rebuild our economy,”
Sens. Lisa Murkowski (R-AK), Susan Collins (R-ME), and Thom Tillis (R-NC) wrote in a letter to Mnuchin.
Specifically, they requested an extension of the start of construction safe harbor regulations for the ITC and PTC to account for equipment delivery delays stemming from the COVID-19 pandemic. Further, the senators asked for modification of physical work test requirements to allow continuous efforts to qualify for relief. This is due to the fact that many projects are unable to maintain continuous construction due to COVID-19 and other delaying factors.
“A large number of new renewable energy projects, particularly solar projects, began construction at the end of 2019 in order to qualify for the full 30 percent ITC. While many projects officially started construction by paying for equipment at the end of 2019, many developers did not receive equipment by the 105-day deadline due to COVID-19 related disruptions. Ongoing uncertainty over equipment delivery in 2020 could lower investment in new projects, as well,” they wrote.
Last month, a bipartisan group of senators, including Murkowski, requested a more narrow change to ITC and PTC continuity safe harbor regulations.
Murkowski chairs the Senate Energy and Natural Resources Committee.
