The U.S. House Ways and Means Committee on Thursday approved the $20 billion in energy tax credits and incentives proposed in the Obama administration's economic stimulus package.
A party-line vote of 24 to 13 approved the tax cuts for alternative energy including a multiyear extension of the production tax credit for wind, geothermal, hydro power and bioenergy.
The bill extends by three years, to the end of 2012, the in-service deadline for renewable power facilities, such as wind, geothermal and biomass. Those in operation before that date will be eligible for the production tax credit (PTC).
The proposed legislation also would allow such facilities in place by 2010 to temporarily claim a 30% investment tax credit (ITC) instead of the production tax credit. the PTC is normally payable over a 10-year period, the more immediate ITC would assist projects that are struggling to find financing in the current market.
In the Senate, Finance Committee Chairman Max Baucus unveiled a $275 billion package, that reportedly contains $30 billion for similar tax breaks and incentives, suggesting that the two legislative chambers may be well on their way to reaching agreement on the measures.
