Environmental Law

Despite Setback for Renewable Bill, Senator Vows to Keep Pushing

By Dennis Pfaff and Kevin Livingston, Editors

The U.S. Senate, fresh from dealing a blow to an effort to extend renewable energy tax incentives, might not be done with the issue just yet.

Senate Finance Committee Chairman Max Baucus (pictured) Wednesday touted the backing of hundreds of businesses for legislation along the lines of that which ran off the rails the other day in the Senate when backers could not muster the 60 votes needed to end a Republican-led filibuster. Baucus is backing a measure much like one that recently passed the House that would extend tax incentives for wind, solar and other clean-energy projects, according to the Montana Democrat's statement and bill summary released earlier this week. A separate statement suggested Baucus' bill was to have been offered as a substitute for the House version.

The Baucus bill also includes a provision shielding many people from the Alternative Minimum Tax.

Like the House bill, Baucus' legislation would pay for the extensions of tax credits for wind, solar and other clean-energy programs by taking aim at certain tax breaks, such as those enjoyed by hedge fund managers, allowing them to defer taxes on their compensation. Similar provisions had drawn the opposition of the Bush administration and other critics of the House bill. Meanwhile, no money is targeted to offset the AMT provision, according to the information released by the finance committee.

In one change from the House bill, Baucus' legislation would extend a 30 percent investment tax credit for solar energy property for eight years, through 2016. The House bill would have extended the incentive for six years.

Despite the recent setback, Baucus Wednesday released a letter signed by about 300 businesses warning that failure to act quickly "will bring investment in renewable energy and energy efficiency projects to a standstill." Baucus has said he would continue to push for the tax incentive legislation. In his accompanying statement Wednesday, he said:

“American businesses are calling on Congress to boost alternative energy jobs and
technologies and important tax incentives to facilitate business innovation and improved
business operations. American business leaders are rightly concerned about their
competitiveness in the global marketplace if Congress doesn’t act now."  

(Photo credit: U.S. Sen. Max Baucus' office)

Full post as published by Climate Law Update on June 11, 2008 (boomark / email).