Connect with us

Hi, what are you looking for?

CleanTechnica
With the Senate Republican tax bill racing towards a contentious vote despite numerous obstacles, a group of American energy trade bodies have penned an open letter raising urgent concerns that claim a provision, if it remains as-written, would have dire impacts on the country's renewable energy industry. 

Clean Power

US Energy Bodies Unite Against Senate Tax Bill

With the Senate Republican tax bill racing towards a contentious vote despite numerous obstacles, a group of American energy trade bodies have penned an open letter raising urgent concerns that claim a provision, if it remains as-written, would have dire impacts on the country’s renewable energy industry. 

With the Senate Republican tax bill racing towards a contentious vote despite numerous obstacles, a group of American energy trade bodies have penned an open letter raising urgent concerns that claim a provision, if it remains as written, would have dire impacts on the country’s renewable energy industry.

The issue in question is the current language of the Base Erosion Anti-Abuse Tax (BEAT) provisions in the jauntily named Senate Tax Cuts and Jobs Act (also known in some circles as the Donor Relief Act). The joint letter — signed by the American Council on Renewable Energy (ACORE) together with the American Wind Energy Association (AWEA), Citizens for Responsible Energy Solutions, and the Solar Energy Industries Associations (SEIA) — claims that, “As drafted, the BEAT program would have a devastating, if unintended, impact on the wind and solar energy investment and development.”

The US renewable energy industry has already won one fight over the Republican tax plans, with House Republicans’ plans to devastate tax credits for wind, solar, and electric vehicles, removed by the Senate. However, the BEAT provisions as currently drafted undermine the US renewable energy industry’s capacity to use renewable energy tax credits. According to the joint letter (PDF), “multi-national companies covered under the BEAT provisions, the renewable tax credits would, as drafted, be subject to a new 100 percent tax.”

“It is important to note that, while the BEAT provisions are intended to promote U.S. investment and job growth, the program’s treatment of renewable energy tax credits — which are generated exclusively through investment in U.S. projects — would have the opposite impact, dramatically reducing American wind and solar energy investment and job creation. These sectors are important national economic drivers, generating nearly $50 billion in annual U.S. investment.”

“Renewable tax credits, which are already phasing down, would be subject to a new 100% tax under the Senate bill, while the array of tax benefits for fossil fuels, in some cases more than 100 years old, remain untouched,” said ACORE CEO Gregory Wetstone. “If this bill passes as drafted major financial institutions would no longer participate in tax equity financing, which is the principal mechanism for monetizing credits. Almost overnight, you would see a devastating reduction in wind and solar energy investment and development.”

 
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
 

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Advertisement
 
Written By

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.

Comments

You May Also Like

Cars

Electric vehicles could soon be roaring around the track at a NASCAR venue near you, and Ford is already jockeying for the pole position.

Clean Power

Georgia Public Service Commission votes unanimously to establish clean energy working group, but rejects expansion of popular rooftop solar program

Clean Power

By U.S. Solar Energy Industries Association (SEIA) As the solar industry continues to grow and America moves toward a bright clean energy future, there’s...

Clean Power

The wrath of the US solar industry is raining down upon an anonymous group of solar tariffs petitioners against unfair Chinese imports.

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.