Trump Administration to Grant One-Year Extension for Wind, Solar Credits
The Trump administration indicated this week it will adjust tax credit deadlines to help renewable energy investors to help their businesses survive the economic crisis. In a May 7 letter to a bipartisan group of six senators led by Charles Grassley (R-IA), Department of Treasury official Frederick Vaughn stated the Department plans in “the near future” to “modify the relevant rules” of “continuity safe harbors” for the wind production tax credit (PTC) and solar investment tax credit (ITC).
What this means is that wind and solar projects begun in 2016 or 2017 will be eligible to receive the credits over a period of five years instead of four. In an April 23 letter to Treasury Secretary Steven Mnuchin, the senators argued that the COVID-19 crisis and economic disruption had delayed or blocked many wind and solar projects “otherwise on track to be in operation in 2020,” and that a one-year extension would “provide the certainty businesses need to move forward with existing projects.”
Other signers of the Grassley letter to Secretary Mnuchin are Sens. Ron Wyden (D-OR), John Thune (R-SD), Maria Cantwell (D-WA), Lisa Murkowski (R-AK), and Joe Manchin (D-WV).