Western Governors are urging a modification of the Section 48 Renewable Energy Investment Tax Credit (ITC) from a “placed in service” standard of eligibility to a “commence construction” standard.
The letter was signed by Colorado Gov. John Hickenlooper, the WGA Chairman, and Nevada Gov. Brian Sandoval, WGA Vice Chairman. The letter was sent to Sens. Max Baucus and Orrin Hatch (Chairman and Ranking Member, respectively, Senate Committee on Finance), as well as Reps. Dave Camp and Sander Levin (Chairman and Ranking Member, respectively, House Committee on Ways & Means). (Read the entire letter.)
WGA notes in the letter:
"Section 48 ITC benefits a variety of technologies and industries that are important to our state economies, including solar energy, fuel cells, microturbines, combined heat and power, small wind and thermal energy.
"Changing the ITC to a 'commence construction' standard would allow these industries to make full and effective use of the 30 percent investment tax credit for the duration of its existing authorization (which expires on Dec. 31, 2016), and will allow them to attract further investment - driving industry and job growth in our states."
"Under a 'commence construction' standard, the credit could still not be claimed until the project is placed in service – providing important protection of taxpayer dollars."
Western Governors note that without the change, large-scale projects might be less likely to be completed. The governors remind that "during the past eight years the ITC has been tremendously successful in growing clean energy industries in our states and across the United States, creating American jobs ... and driving down prices for American consumers."
The Western Governors' Association invites you to attend the 2013 WGA Winter Meeting Dec. 11-12 at the Mandarin Oriental Las Vegas. Learn more about the agenda and get the lowest registration rate by visiting our website now.