Tax Package Changes – Renewable Energy Programs are Back in Business

Missing in action

You won’t see a renewal of the Advanced Energy Manufacturing Tax Credit (48C), which helped manufacturers build or retrofit factories to build clean energy products. It would be a shame to have that lapse as well – but according to Politico, it just wasn’t palatable to Republicans.

Also, there had been talk of pushing for a National Renewable Energy Standard that would require utilities to include a minimum percentage of renewable energy (probably 3 percent for starters). Despite support from a bi-partisan group of Senators, there’s no mention of that, either. We’ll probably have to wait another two years for a Congress that would pass that one.

The rundown

Here’s a complete summary of environmental provisions, from Harry Reid’s office, courtesy of Jamie Dupree at the Atlanta Journal Constitution:

Section 1603. The bill extends for one year the start-of-construction deadline for the cash grant in lieu of tax credit program, established in Section 1603 of the American Recovery and Reinvestment Act. (This is a crucial piece in moving forward on wind power.)

Biodiesel and renewable diesel. The bill extends through 2011 the $1.00 per gallon production tax credit for biodiesel, as well as the small agri-biodiesel producer credit of 10 cents per gallon. The bill also extends through 2011 the $1.00 per gallon production tax credit for diesel fuel created from biomass.

Refined Coal. The bill extends through 2011 the placed-in-service deadline for qualifying refined coal facilities.

Extension of energy-efficient new homes credit. The bill extends through 2011 the credit for manufacturers of energy-efficient residential homes.

Alternative fuels credit. The bill extends through 2011 the $0.50 per gallon alternative fuel tax credit. The bill does not extend this credit any liquid fuel derived from a pulp or paper manufacturing process (i.e., black liquor).

Extension of special rule for sales of electric transmission property. The bill extends through 2011 the present law deferral of gain on sales of transmission property by vertically integrated electric utilities to FERC-approved independent transmission companies.

Extension of special rule for marginal wells. The bill extends through 2011 the suspension on the taxable income limit for purposes of depleting a marginal oil or gas well.

Ethanol. The bill extends through 2011 the per-gallon tax credits and outlay payments for ethanol.  The bill also extends through 2011 the existing 14.27 cents per liter (54 cents per gallon) tariff on imported ethanol and the related 5.99 cents per liter (22.67 cents per gallon) tariff on ethyl tertiary-butyl ether (ETBE).

Energy-efficient appliances. The bill extends through 2011 and modifies standards for the Section 45M credit for US-based manufacture of energy-efficient clothes washers, dishwashers and refrigerators.

Energy-efficient existing homes. The bill extends the credit under Section 25C of the Code for energy-efficient improvements to existing homes, reinstating the credit as it existed before passage of the American Recovery and Reinvestment Act. Standards for property eligible under 25C are updated to reflect improvements in energy efficiency.

Alternative vehicle refueling property. The bill extends through 2011 the 30% investment tax credit for alternative vehicle refueling property.

Extension of expensing of environmental remediation costs. The bill extends for two years (through 2011) the provision that allows for the expensing of costs associated with cleaning up hazardous sites.

More: Alternative Renewable Energy

(Indiana wind farm image Some rights reserved by clarkmaxwell)