Democratic Lawmakers Include Renewables Incentives in US Infrastructure Bill

Greentech MediaJune 26, 2020763


A new bill was introduced by Democratic lawmakers in the U.S. House of Representatives this week has introduced several pieces of legislation that could help renewable energy.

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Democratic Lawmakers Include Renewables Incentives in US Infrastructure Bill

Democratic lawmakers in the U.S. House of Representatives this week introduced several pieces of legislation that could buoy renewable energy as part of a larger infrastructure package.

The Moving Forward Act, the text of which was released Monday, includes extensions of both the Production Tax Credit and the Investment Tax Credit to 2025 as part of a behemoth $1.5 trillion infrastructure bill. On Thursday, lawmakers also inserted into the infrastructure package the Growing Renewable Energy and Efficiency Now (GREEN) Act, which was unveiled in November as draft legislation.

If adopted, the legislation would extend the ITC for solar panels and offshore wind by five years, and allow energy storage to use that credit. It maintains the 60 percent PTC  through 2025 and allows for “direct pay” instead of relying on tax equity investors. The Moving Forward Act would also require the Federal Energy Regulatory Commission to work on a regional transmission rulemaking that could ease the transport of renewable energy.

With policymakers battling over COVID-19 related priorities, renewable energy provisions face long odds due to Republican pushback, particularly in the Senate. But the legislation does indicate clean energy groups are gaining traction on Capitol Hill. Even before the coronavirus pandemic upended some renewable energy projects, wind and solar energy advocates were lobbying feverishly for the extension of tax credits (wind won a one-year extension in 2019).

Renewed calls for extended tax credits have become even more urgent in the face of the coronavirus. Though large-scale wind and solar energy projects have generally been able to hew closely to schedules, the distributed solar industry has reported layoffs, drops in demand and declining sales. SEIA has reported 72,000 solar job losses (including layoffs and jobs that would have been created). 

After the coronavirus arrived in the U.S., clean energy organizations also sought tweaks that make those incentives easier to use, such as direct pay. In May, the U.S. Treasury Department released guidance that allowed wind and other resources more time to meet tax credit deadlines.

This week’s legislation serves as another infusion of hope for renewable energy companies. Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, said in a Thursday statement she was “heartened” to see lawmakers prioritizing renewable energy. Kelly Speakes-Backman, CEO at the Energy Storage Association, said the group “greatly appreciate[s]” inclusion in the bill. In response to the Moving Forward Act, American Wind Energy Association CEO Tom Kiernan said the legislation “puts the wind industry a step closer to tax policy parity with other energy sources.”

In addition to clean energy provisions, the infrastructure package includes measures on a wide range of issues such as affordable housing, healthcare and highways. The House plans to vote on the bill before July 4.

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