Congress approves tax credits boost for US wind
US Congress approved support for wind, solar and other renewable energy technologies as part of a $2.3 trillion pandemic relief package
by Craig Richard
Both the US Senate and House of Representatives passed the bill on Monday (21 December) (pic: US government)
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US Congress has agreed on Covid-19 omnibus legislation that includes targeted renewable energy initiatives, including a one-year extension of the production tax credit.
The production tax credit for onshore wind will remain at 60% before decreasing again at the beginning of 2021, instead of the previous deadline at the end of this year.
Solar will benefit from a two-year extension of the investment tax credit at 26% and offshore wind will benefit from a 30% investment tax credit for projects that commence construction until 31 December 2025.
The tax credit extensions form part of a $1.4 trillion federal spending and tax extension package in conjunction with a $900bn coronavirus rescue deal.
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During the early afternoon of Dec. 21, Congress unveiled its nearly 5,600-page bipartisan stimulus package and government funding bill that includes many energy provisions lawmakers have sought for months, if not years. Both the U.S. House and Senate are expected to vote on the bill late the same day.
The massive bill includes the Energy Act of 2020, legislation containing numerous energy bills that House and Senate negotiators sought to include in a spending package.
Senate Minority Leader Chuck Schumer, D-N.Y., said the proposal seeks to modernize energy innovation programs at the U.S. Department of Energy, authorizing $35 billion in federal research and development funding. He called the bill a significant step in the right direction in tackling the climate crisis.
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The Energy Act of 2020 includes a two-year extension of the investment tax credit (ITC) used by solar power generators (keeping the ITC at 26% through year-end 2022 instead of falling to 22% in calendar year 2021), a one-year extender for the production tax credit (PTC) used by wind developers, and a new 30% ITC for offshore wind projects that commence construction by the end of 2025.
Wind and solar generation, energy efficiency and carbon capture all won tax break extensions in the massive stimulus and budget bill that was poised for approval by Congress Monday night.
The Energy Act of 2020 includes a two-year extension of the investment tax credit (ITC) used by solar power generators (keeping the ITC at 26% through year-end 2022 instead of falling to 22% in calendar year 2021), a one-year extender for the production tax credit (PTC) used by wind developers, and a new 30% ITC for offshore wind projects that commence construction by the end of 2025.