US Renewable Industry Pleased by Tax Credits

The US renewable energy industry expressed relief after a compromise Republican tax bill released late on Friday preserved key tax credits that had been at risk of being removed, but it raised concerns about a provision that may threaten investment in the sector.

The final tax bill retains the production and investment tax credits for wind and solar energy, which spurred investment in the fast-growth industries. It also eliminates the alternative minimum tax, which would have reduced the value of those credits, CNBC reported.

The original Senate version could have chilled investment by international companies and banks in the renewable energy sector, industry experts said.

Solar industry group SEIA called the tax bill a “great victory” for the sector and its 260,000 workers.

Advanced Energy Economy, a lobby group for clean energy, said it was relieved that the bill retained the tax credits but called it a “missed opportunity” to bolster other technologies, such as fuel cells, energy storage, combined heat and power, geothermal, nuclear and distributed wind power.

Besides preserving the renewable energy tax credits, the bill would maintain a $7,500 electric vehicle tax credit after automakers and other companies urged congress to keep it.

The bill also gives a boost to oil drilling in Alaska’s Arctic wilderness area with a provision to open a portion of Arctic National Wildlife Refuge.