December 18 (Renewables Now) - Provisions that would have curtailed tax credits for wind and solar projects have been eliminated from the final version of the US tax overhaul bill.
After the House and Senate chambers of Congress passed different versions of the legislation, a House-Senate conference committee worked to iron out the differences. It released its conference report on Friday.
The House variant would have reduced the value of the wind energy production tax credit (PTC) and changed the qualification rules defining start of construction. The wind industry had warned this would threaten 60,000 jobs and USD 50 billion (EUR 42bn) in private investment. The House bill also envisages ending the investment tax credit (ITC) for solar projects that start construction after 2027. The same new rule for determining the beginning of construction would have applied to the ITC as well. All these provisions were left out of the final version, in line with the view of the Senate, which had proposed no changes to the PTC or the ITC.
The American Council on Renewable Energy (ACORE) said it is grateful for the removal of provisions that would have destroyed future renewable energy growth, but added that it remained concerned about the potential impacts of the new Base Erosion Anti-Abuse Tax (BEAT) on renewable energy finance.
The legislation is to be voted this week by the entire House of Representatives and Senate. A White House statement says president Donald Trump "looks forward to fulfilling the promise he made to the American people to give them a tax cut by the end of the year."
(USD 1 = EUR 0.848)