December 15 (Renewables Now) - A fix in the latest US tax plan, final votes on which are coming next week, would allow tax equity to remain an adequate tool for financing renewable energy projects in the country.
Senator John Thune told Bloomberg that a compromise has been reached, but the agreement remains tentative until final approval. Details are not yet available.
In a joint letter to the US Senate at the end of November, the American Council on Renewable Energy (ACORE), the solar and wind energy associations AWEA and SEIA, and Citizens for Responsible Energy Solutions called for an amendment to exempt the production and investment tax credits (PTC and ITC) from the calculation of the Base Erosion Anti-Abuse Tax (BEAT). The letter said major financial institutions had indicated that they would no longer participate in tax equity financing unless there were changes in the BEAT provisions.
Thune was cited as saying that the compromise in the tax bill would keep most of the value of renewable energy tax credits.
Bloomberg also cited analyst Jeffrey Osborne, from Cowen & Co, as saying that after delays in project financings over the last couple of weeks, “a flurry of activity” could be expected in the coming weeks as uncertainty dies out.