Advanced Energy Perspectives

FEDERAL: Tax Reform Draft is Out, But Extending Current Tax Credits More Pressing

Posted by Bob Keough

Dec 19, 2013 12:58:27 PM

    

advanced_energy_tax_policy_reformSen. Max Baucus (D-MT), chairman of the Senate Finance Committee, released a discussion draft of energy tax reform on Dec. 18. This is the second discussion draft of elements of a comprehensive tax reform bill that could be put before Congress next year released by the chairman to date. Summary of the energy discussion draft can be found here; coverage here. There will be much analysis of this draft over the coming weeks.

 

AEE issued the following statement yesterday:

“I congratulate Sen. Baucus for jump starting a much needed debate on energy tax reform,” said Malcolm Woolf, senior vice president for policy and government affairs at Advanced Energy Economy, a national business association. “AEE hopes that his discussion draft leads to a new approach for energy tax policy, one that is technology neutral, provides stability and predictability, and uses market forces to drive better energy options.
“However, tax certainty is as important to investment and growth as tax reform,” continued Woolf. “Tax credits for a range of advanced energy production and energy efficiency investments are expiring at the end of this year because Congress has failed to act. AEE will continue to support the efforts of the Finance Committee as Sen. Baucus and his colleagues push for comprehensive tax reform, but businesses need certainty now.  We therefore urge Congress to extend the advanced energy tax credits that are expiring in just a few weeks.”

 

It was also reported that Sen. Baucus would be nominated by President Obama to become the next U.S. ambassador to China. The schedule for nomination and confirmation (by his U.S. Senate colleagues) is unclear, as is the impact of Baucus’s departure from the tax-writing committee on the tax reform dialogue.

 

The day before, members of both the House and Senate penned letters urging their respective tax-writing committees to extend tax credits for advanced energy investments affecting power generation, energy efficiency, and manufacturing.  The letters voiced support for broader efforts under way in the committees to overhaul significant portions of the tax code, but cautioned that letting existing tax credits expire before replacing them with new provisions would deprive advanced energy companies and their projects of the certainty they need for investment and growth. AEE drew attention to the expiring tax credits here.

 

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Topics: Federal Policy Update

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