U.S. clean energy producers would get only some of what they hoped for under a massive U.S. spending bill unveiled late Monday, with wind developers getting more time to land a big subsidy and solar developers losing their bid to extend a key investment credit.
Under the bill, wind energy projects would be able to qualify for a 30% Investment Tax Credit if they start construction by Jan. 1, 2021 – as opposed to current law requiring them to break ground by Jan. 1, 2020 to get the credit, according to the amendment. [NWW note [updated]: Eligibility for both the Investment Tax Credit and the Production Tax Credit (one can claim only one of them, of course) was extended for 1 year. Furthermore, those who claim in 2020 will enjoy the 2018 value.]
Capital Alpha Partners, a political and financial consultancy, said the amendment could benefit European power company Iberdrola (IBE.MC), which is hoping to build America’s first big offshore wind farm – Vineyard Wind – but is dealing with federal permitting delays.
Meanwhile, the bill would preserve a planned reduction scheduled to begin next year in an investment tax credit for solar companies, a setback for solar companies that had been lobbying hard for an extension.
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