Late
last week, Senate efforts to reach a bipartisan agreement on an energy and other tax extenders bill
succeeded. This plan includes extensions for popular, bipartisan energy
tax incentives and other tax credits such as the research and development
(R&D) tax credit and the alternative minimum tax (AMT) "patch." The sticking point between Republicans and
Democrats had been whether or not to "offset" the tax extensions and it seems a
compromise was reached: the energy extensions are fully offset and the other
incentives are only partially offset.
Regarding the energy tax provisions, the agreement includes
a one year extension of CREBs, $800 million in new bonding authority and the
technical changes NEPPA, APPA and others are seeking. It also includes a one-year extension of the
production tax credit (PTC) for wind and refined coal, a two-year extension of the PTC for
other renewables and an eight-year extension of the investment tax credit (ITC) for
solar energy property and fuel cells.
As of this
afternoon (9/23), the Senate was working toward expected final passage of the
bill (H.R. 6049, a previously passed House bill). They are expected to strip the House language
and substitute the energy package and the one-year AMT patch and
individual/business extenders package. This morning (9/23), the Clean Energy Now
coalition sent a letter to Senate Finance Committee and party leaders, with
more than 100 industry signatories (including NEPPA), supporting action on H.R.
6049 in order to pass the energy tax extender package.
The bill will have to be sent back
to the House for consideration. Although
Senate Majority Leader Harry Reid (D-NV) urged House lawmakers to avoid
altering the tax bill, the House plans to pass an energy tax bill Wednesday (9/24)
that complies with the pay-as-you-go rule, and to consider the AMT
patch other items separately later this week. Action on the latter portion is uncertain,
given that it is not "paid for" and House Democrats, especially the fiscally
conservative Blue Dog coalition, still seem resistant to departing from the
"pay-as-you-go" rules.
Meanwhile,
the White House said it supports the Senate compromise, even though it strongly
disagrees with several provisions.