ABB_id2059
in News Departments > Policy Watch
print the content item

Chairman of the Senate Committee on Energy and Natural Resources Jeff Bingaman, D-N.M., is urging Congress to include a new incentive program for renewable energy in the economic recovery package. The plan would stimulate renewable energy production by offering an alternative to tax equity financing, while ensuring protection for taxpayers.

To help meet President Obama's goal of doubling renewable energy production in three years, Bingaman plans to advance a proposal to enable renewable energy producers to claim a 30% cash grant from the U.S. Treasury Department in lieu of the 30% investment tax credit. Under this plan, the Treasury secretary would award the grant only after determining that the producer has taken adequate actions to protect taxpayers.

Bingaman noted that domestic demand for solar, wind and other renewable resources has grown rapidly over the past few years, and faster growth is anticipated in the near future - especially with the expected enactment of a national renewable portfolio standard.

Bingaman contrasted his approach with a provision in the House stimulus bill, which would allow for similar grants, but would be administered through the Department of Energy and not require participating firms to make trade-offs to participate.

"The House approach to addressing renewable energy financing is inadequate because it fails to protect the taxpayer and because it needlessly involves the Department of Energy," Bingaman says. "My proposal finds common ground by offering an alternative to financing through the tax equity markets in a manner that protects the taxpayer and doesn't create a refundable tax credit in disguise."

Congress has generally not permitted corporate taxpayers to refund tax credits, Bingaman notes. His proposal is modeled on the Emergency Economic Stabilization Act, which created the Troubled Asset Relief Program.

SOURCE: U.S. Senate Committee on Energy and Natural Resources


Hybrid Energy Innovations 2015

Trachte_id2056
Latest Top Stories

The Song Remains The Same: AWEA Says Stable Policy Can Protect U.S. Wind Investment

Although the U.S. wind industry added more than four times the amount of wind in 2014 compared with 2013, predictable policy is needed to sustain its long-term success.


High Net-Worth Investors Claim 'All Of The Above' On Energy, Renewable And Otherwise

According to a recent Morgan Stanley poll, high-dollar investors favor investment in renewable energy technologies, such as wind and solar.


U.S. Wind Power Installations Surpassed 4.7 GW Last Year, Although China Still Leads

Bloomberg New Energy Finance reports that U.S. wind installations came back in a big way from a disappointing 2013.


IRS Specifies Performance, Quality Standards For Small Wind Turbines

The Internal Revenue Service (IRS) recently issued guidelines creating safety and performance standards for small wind turbines to be eligible for the 30% investment tax credit.


Hot Times North Of The Border: Canada Tops Previous Record For Installed Wind Capacity

For the second consecutive year, Canada's wind market has bested the country's previous mark for new installations.

Hybrid Energy Innovations 2015