Congress is once again debating renewable energy tax credits.
This time in the Senate, the tax credit extensions are wrapped into a larger piece of legislation focused on multiple types of tax incentives. CNN and the Associated Press reported on September 16 that Senators Maria Cantwell (D-WA) and John Ensign (R-NV) had brokered a deal regarding extending the renewable energy tax credits. A vote has not yet reached the Senate floor.
In the House, the solar and wind power tax credit extensions are tied to an energy bill that would, among other things, reinstate offshore drilling around the US and ease restrictions on extracting oil shale in western states where the US shale reserves are concentrated. Late Tuesday night, the House passed its bill by a vote of 236 to 189. Interestingly, the House bill would extend renewable energy tax credits for solar energy projects 8-years, but only extend tax credits for wind power for one year. In general, Representatives perceive the solar industry is still nascent, while the wind industry is adolescent.
However, passing HR 6899 or the “Comprehensive American Energy Security and Consumer Protection Act” is still a far cry from becoming law. The two houses need to agree on one piece of legislation that then goes on to the President.
Even if that complex energy bill were to fail other Congressmen are trying to narrow the scope of proposed legislation to just address renewable energy tax extensions.
The clock is ticking. Congress is scheduled to adjourn September 26 to hit the campaign trail.
There is a chance that Congress will reconvene after the November election. Once the election results are known Congress may have a higher propensity to pass any remaining unfinished legislation.
Other observers speculate that if the tax credits are allowed to expire, they are likely to be reinstated next year IF Barak Obama wins the presidential election. They reason that if the Democrats ably win a majority in both houses there will be greater sympathy (and less opposition) to extending credits for renewable energy.
Of course, all these pundits spoke before the financial crisis on Wall Street. Who knows what kind (if any) wrench that throws into the mix.