U.S. House recesses, fails to pass tax bill, leaving solar, R&D credits in doubt

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

The U.S. House of Representatives recessed Monday with no deal on a major tax relief package, which includes provisions to extend the solar investment tax credits and renew the R&D tax credit, according to Associated Press.

The report says that the “House had intended to adjourn for the year on Monday, but that plan abruptly changed when lawmakers rejected the $700 billion financial bailout legislation, forcing congressional and administrative leaders to regroup and opening up the possibility that the House would return later this week or in the coming weeks to vote on a revised bailout proposal—and perhaps give them another shot at the tax bill.”

Although the Senate and House had passed the tax relief bill (which also includes provisions dealing with the alternative minimum tax, or AMT), the two chambers have not been able to reconcile their versions and reach a consensus.  

The AP report notes that lawmakers on both sides of the Capitol “stressed that the tax relief bill would create tens of thousands of jobs and contribute to the nation’s energy independence. House Democrats “insisted that more of the package, totaling $138 billion in House bills, be paid for so as not to increase the deficit. Senate Republicans, averse to new taxes, said any changes in the Senate-passed tax bill would kill the entire package.”

The Senate still plans to meet later in the week before leaving for the year, according to AP, and could conceivably try to take up the House-passed AMT fix separately.

Maggie Hershey, public policy director for SEMI, told PV-Tech via email that “my understanding is that the House is likely to adjourn quite soon without taking up the extenders bill. The situation is still quite fluid, though. [It’s] not yet certain whether there will be a lame-duck session. Given the current economic crisis, there is a good chance that they could have to come back to Washington at some point.

“SEMI is disappointed that Congress was not able to reach agreement to extend the R&D tax credit and the solar investment tax credit,” she said. “There is a great deal of bipartisan support for both of these measures.  The attention needed for the negotiations and debate on the bailout package cut into the little time left, and the House and Senate did not have enough time to resolve the remaining differences.  We hope that Congress will return in November to extend the R&D tax credit and the solar investment tax credit.

“Failure to extend these credits could have a negative impact on investment on solar and R&D in the United States, especially during this time of heightened competitiveness and growing alternative energy demand. It is not a question of whether there will be solar investment, but whether the investment will be in the United States. The United States could lose out on great opportunities if Congress does not act.

Rhone Resch, president of the Solar Energy Industries Association, echoed some of Hershey’s comments in a statement released Monday afternoon.

“We are extremely disappointed that Congress has failed to reach agreement on an extension of solar energy tax credits that are central to jumpstarting our troubled economy and putting Americans back to work. The failure by members of both parties to secure extensions of the solar tax credits ensures that the U.S. will remain in an energy crisis characterized by overdependence on foreign energy.

“While Congress prepares its hasty departure from Washington, important work remains to be completed prior to the end of the year,” he continues. “We call on both the House and Senate to return later this week to finish the tax extenders package that is vital to businesses and individuals in every corner of the country.  While it was imperative to break for a short holiday recess, there is no excuse for Congress not to complete action on these crucial tax credits to our economy by week’s end.

“The economic impact of Congress’ failure to pass the solar energy tax extenders is already being felt. Unless Congress promptly returns to complete their unfinished business, the solar industry will suffer with the loss of 39,000 jobs and $8 billion of economic investment in 2009 alone,” Resch concluded.

 Latest Developments as of 2/10/08.

— Tom Cheyney

7 June 2022
The Renewable Energy Trading Summit is the only event in Europe dedicated to renewable energy trading and will bring together renewable power asset owners, investors, exchanges, intermediaries and large energy buyers to discover the future of power sales. This unique event is designed specifically for the most senior players and will provide an excellent forum for business deals, networking and learning. The energy transition is gathering pace with renewable energy attracting increasing sums of capital each year. Solar and wind deployment is increasing annually and governments are ever-more reliant on the renewables sector to stimulate moribund economies. Retirement of fossil fuel assets continues in the background. However, without subsidies and uncertainty around PPAs, renewable asset owners are heading into the wholesale markets to trade power but are they ready for the volatility in revenue this will entail?
9 June 2022
The proliferation of solar PV and other renewables is a cornerstone of the emerging new power system and, as a result, the solar industry has entered its fastest-growth period. This has become typified by surging demand for high-power PV modules that both produce more power and are more efficient than their predecessors. Providing a significant boost to power outputs, large-format modules have become a popular choice for customers the world over. Outdoor testing of modules is now providing empirical evidence of the benefits large-format modules produce, providing a crucial benchmark and invaluable data for customers to evaluate their module selection and procurement processes. In this PV Tech webinar, experts from TÜV Rheinland, CPVT and Trina Solar will discuss how to ensure science based and precision testing under field conditions, how empirical data is collected and analysed during TÜV Rheinland and CPVT’s outdoor testing, the empirical data behind a 670W module’s ultra-high power, and more.
14 June 2022
Join us in Napa to unlock the key to reliable PV module supply to the U.S. market in 2022 & 2023. We'll also be gathering the main players in the US solar market for some wine tasting!
15 June 2022
Consumers are turning to residential renewables in significant numbers, driven by a desire to be environmentally conscious and a wave of high power prices. But turning green requires easy-to-use and, above all, safe technologies that meet expectations. Huawei is committed to building efficient, safe, reliable and grid-supporting smart PV plants that also provide smart services to consumers, and its Residential Solution has been tailored to meet consumer demand. This webinar will demonstrate the full suite of technologies offered within the Huawei Residential Solution, including a smart energy controller, smart AC charger, and AI-powered energy storage solution, and detail how it can place power back in the consumer’s hands.
22 June 2022
The 11th edition of the Large Scale Solar Summit is coming to the US after 10 sell-out years in Europe! Designed as a meeting place for deal-making, we will not only discuss the most up to date topics and technologies but will also provide varied networking platforms so that developers, EPCs, manufacturers, asset owners, and investors can connect with possible clients and partners. In a year expected to break records for the solar market, join us in Texas to meet with the top players in the industry and expand your network as business booms.
19 July 2022
As New South Wales is gearing up to become a renewable energy superpower, an exciting clean energy event is coming to Sydney. Energy Next is a free-to-attend industry event focusing on the latest renewable energy and energy management technologies, which will be held from 19-20 July 2022 at the ICC Sydney in Darling Harbour. Organised by the same people behind the country’s largest clean energy event, All-Energy Australia, Energy Next will bring a quality exhibition and technical session series to NSW. Energy Next will also host the Clean Energy Council’s Solar Masterclass with a program developed for solar designers and installers. Across two days, Energy Next will provide an extensive exhibition, workshops and networking opportunities for those working in the renewable energy industry to meet with leading suppliers, discover the latest technologies and gain an understanding of how to successfully launch new clean energy projects.

Read Next

May 27, 2022
Solar O&M solutions provider Ecoppia is navigating ongoing component shortages while expending its operations into new geographies and ramping up production of its latest PV panel cleaning robot.
May 27, 2022
The CEO of US solar and energy storage developer Borrego has said the company’s project development business will be less capital constrained under the new ownership of investment firm ECP, following a deal announced earlier this week to spin off and sell the unit.
May 26, 2022
US solar and energy storage developer Borrego will spin off and sell its development business, including its more than 8.4GW PV project pipeline, to investment firm ECP.
May 26, 2022
Danish developer Better Energy has partnered with Finish solar company Forus to develop more than 1GW of solar PV in Finland.
May 26, 2022
Leading solar manufacturers have implored governments to implement tax credits and other financial incentives to stimulate domestic PV manufacturing.
May 26, 2022
Spanish utility Iberdrola will invest €3 billion (US$3.2 billion) in green hydrogen, the company’s chairman, Ignacio Galán, has announced as he called for a stable European framework to boost investment in the technology.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 7, 2022
Leonardo Royal London City, London, UK
Solar Media Events
June 14, 2022
Napa, USA
Solar Media Events
June 22, 2022
Sheraton Austin Hotel at the Capitol, Austin, Texas