Reps. Peters, Stefanik Introduce Renewable Electricity Tax Credit Equalization Act
Washington, D.C. – Today, Congressman Scott Peters (CA-52) and Congresswoman Elise Stefanik (NY-21) introduced the bipartisan Renewable Electricity Tax Credit Equalization Act, which extends tax credits for investments in qualified renewable energy production, including closed-loop biomass, open-loop biomass, geothermal, municipal solid waste, qualified hydropower, and marine and hydrokinetic. The bill also eliminates the arbitrary 50 percent reduction of the production credit for these baseload technologies to incentivize development of all renewable energy technology.
“We need to deploy more renewable resources in the transition to a clean energy economy,” said Rep. Peters. “As climate change continues to threaten our planet, health, and communities, we need to invest in innovative technology that can provide a baseload supply of energy.”
“I’m proud to introduce this legislation to stop the federal government from picking winners and losers among renewable energy production and to incentivize the utilization of clean renewable energy to bolster both our economy and environment,” said Rep. Stefanik. “Unfair tax policies have hampered efforts to work toward a clean energy future for far too long, and I’m proud to lead the effort to ensure equal treatment from the government within renewable energy production. This bipartisan bill will benefit our workforce, economy, and environment for many years to come.”
“NHA appreciates Representatives Stefanik and Peters for offering a bill to eliminate unfair tax policies and enable hydropower and marine energy to play a larger role in America’s clean energy future,” said Malcolm Woolf, President & CEO of the National Hydropower Association. “The disparity in the tax code puts hydropower at an economic disadvantage and stymies new infrastructure investment. We urge Congress to move quickly to pass this bill so hydropower can make a greater contribution to the decarbonization of the U.S. energy mix, grid resiliency and reliability, as well as electrification of the transportation sector.”
"For yet another year, critical incentives that drive investment in biomass power and other renewable baseload technologies have been allowed to lapse. We are grateful to Rep. Stefanik and Rep. Peters for introducing a bill that will fix this problem," said Bob Cleaves, president and CEO of Biomass Power Association. "Biomass power offers unique benefits like forest management, fire reduction, and well-paying rural jobs. It must remain a crucial part of our nation's renewable energy portfolio, and passage of this bill will help ensure that is the case."
“Baseload renewable energy projects, like biogas systems, have been at a competitive disadvantage in our tax code for far too long. This legislation, led by Representatives Stefanik and Peters, will go a long way to creating a fairer marketplace where our industry and other baseload renewables can fairly compete,” said Patrick Serfass, Executive Director of the American Biogas Council. “When the biogas industry builds new renewable energy systems, we protect our air and water, make our soils healthier, and catalyze new investment and job creation— significant wins for the community.”
Tax incentives for electricity produced from closed-loop biomass, open-loop biomass, geothermal, municipal solid waste, qualified hydropower facilities, and marine and hydrokinetic facilities expired two years ago, while other renewable technology received extensions.
Renewable baseload technologies play an indispensable role in maintaining a reliable and functioning electrical grid system; They also support the integration of additional wind and solar electricity into the grid. The Renewable Electricity Tax Credit Equalization Act levels the playing field and provides certainty to spur necessary investments in clean energy:
- Extends both the production tax credit (PTC) and the election to take the investment tax credit (ITC) to be available for qualified facilities on which the construction begins before 2025.
- Equalizes the treatment of renewable technologies by eliminating the arbitrary 50 percent reduction of the PTC for these technologies.