Congress Working On Green Energy Bill

by Leroy Baker, Tax-News.com, New York

21 July 2010

Sander M. Levin, chairman of the House of Representatives tax committee, is working on the legislative text of a new bill that will extend tax incentives for investment by industry in green technology initiatives.

The USD22bn bill will extend the 'Section 48C' manufacturing credits until the end of 2014 and it is expected to be released in draft form by House Ways and Means Committee chairman Levin in the coming days.

The Advanced Energy Manufacturing Tax Credit was created by the American Recovery and Reinvestment Act of 2009 and authorizes the Treasury Department to provide developers with an investment tax credit of 30% for investments in new, expanded, or re-equipped advanced energy manufacturing projects.

Qualifying manufacturers must produce: solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. Projects must be completed within four years of acceptance and tax credits will cover only future expenditures and not past investments.

Levin's bill is expected to receive the backing of President Obama, who has placed renewable energy and 'green' jobs at the center of his economic agenda.

Last January, the President announced the awarding of USD2.3bn in Advanced Energy Manufacturing Tax Credits. According to the White House, the tax credits will help to leverage nearly USD7.7bn in private investment into 183 clean energy technology projects across 43 states.

Following talks on the proposed legislation between Ways and Means Committee Democrats, Levin commented that: “We had a very productive discussion and I expect to continue working on a package of tax incentives to spur job creation and enhance domestic manufacturing of renewable energy technology and conservation."

"I will release a Chairman’s discussion draft with legislative language in the next few days. I will also continue discussions with the Chairman of the Senate Finance Committee regarding this legislation," he further informed.

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