Close
Close

Dems propose expanding green energy tax breaks

RFP
Tax Hot Topics newsletter Democrats on the House Ways and Means Committee have released a discussion draft of legislation to extend and enhance a number of alternative energy incentives.

The Growing Renewable Energy and Efficiency Now (GREEN) Act includes provisions that would:

  • Extend the production tax credit under Section 45 for most property types through 2024, but at reduced levels for wind and enhanced for geothermal (with exceptions for offshore wind)
  • Extend the ability to claim the investment tax credit under Section 48 in lieu of the production tax credit under Section 45
  • Extend the investment tax credit under Section 48 for geothermal, solar, fuel cell, microturbine, small wind and combined heat and power property at the 30% rate through 2024 with various phasedowns thereafter, and expend the credit to include storage technology, waste energy recovery, biogas and linear generators
  • Extends the credits for biodiesel and biodiesel, renewable diesel and alternative fuels at current rates through 2021, with phasedowns thereafter
  • Extend the energy efficient commercial building deduction under Section 179D through 2024.
  • Revive the qualified advanced energy property credit with an allocation of $2.5 billion in additional credits from 2020 through 2024

The bill also extends the plug-in electric drive motor vehicle credit so that a $7,000 credit is provided for 200,000 to 600,000 electric vehicles per manufacturer and allows master limited partnerships to engage in certain activities generating renewable tax. The draft did not include any revenue raisers, with those to be provided later.

Republicans did not immediately dismiss the legislation, with House Ways and Means Chair Kevin Brady, R-Texas, saying they may be willing to negotiate over some of the provisions on a year-end extenders package if the revenue raisers were reasonable and the enhancements remained narrow.

Contact:
Dustin Stamper
Managing Director
Washington National Tax Office
T +1 202 861 4144

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.