House committee’s Green Act proposes greater support for renewable energy
With the introduction of the Growing Renewable Energy and Efficiency Now (GREEN) Act by the House Ways and Means Committee, Congressional leaders have proposed to more deeply support renewables in the United States.
That support can be seen in the tying of that bill to the overall $1.5 trillion House infrastructure package released earlier this week. Dubbing it a comprehensive approach to tackling climate change using the tax code, House Ways and Means Select Revenue Measures Subcommittee Chairman Mike Thompson (D-CA) and 47 other members of Congress introduced the measure.
“This bill uses our tax code to expand the deployment of renewable energy by extending and expanding the federal tax incentives to promote clean energy technologies and supports widespread deployment of zero-emissions vehicles,” Thompson said. “All this is an investment in creating new efficiency and emissions models to reduce our carbon footprint. And it’s a down payment on our work to tackle climate change and pass on a better world to our children and grandchildren.”
For solar, the bill would include direct pay while extending the solar Investment Tax Credit (ITC) through 2025, at 30 percent. A two-year step-down period would follow, beginning in 2026 at 26 percent, then to 22 percent in 2027, and down to 10 percent in 2028 for commercial and utility-scale solar projects and 0 percent for residential solar. It also creates a new investment tax credit for energy storage with an additive measure that would increase the value of the ITC by 10 percent, supposing companies meet certain labor requirements.
“We’re heartened that members of Congress are stepping up to fight for American jobs by growing solar energy at this critical moment,” Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), said. “These leaders recognize that we can achieve our economic goals while also tackling long-standing issues in our country, such as climate change and the inherent inequalities of our energy economy. It’s time for us to translate these good intentions into action.”
The bill does not neglect wind power, either. The American Wind Energy Association (AWEA) has likewise backed the measure for its efforts to extend the expiring Renewable Energy Production Tax Credit and ITC for five years for both onshore and offshore wind energy. Other energy sources have permanent tax credits. The measure would also allow direct payment worth 85 percent of the credit values to help companies use the credits.
“Federal incentives for renewable energy sources have proven their value, helping our country usher in millions of dollars in economic investments and reach over 120,000 jobs in the onshore wind industry alone,” AWEA CEO Tom Kiernan said. “This legislation continues these successful policies and helps unlock the full economic and environmental potential of the American wind industry.
Some 72,000 solar jobs have so far been lost due to the COVID-19 pandemic, SEIA noted, and that pain has been exacerbated by drying up tax equity markets. The AWEA has reported similar challenges caused by the disease but argued that quick action could provide another 83,000 jobs and $25 billion of annual economic output over the decade.
