U.S. solar tax credit approval at risk

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In a new twist to the long running saga of renewable energy tax breaks in the U.S. the House of Representatives has passed a modified bill rather than rubber stamping the bill already passed in the Senate. The Senate had urged the House not to make changes or additions as this would raise the likelihood of the White House vetoing the bill altogether.

The new bill passed by the House included a raise in taxes as well as separating the Alternative Minimum Tax proposal from the main bill. White House Office of Management and Budget said they would now recommend to the President that he should veto the new bill. The bill needs to be identical in both the House and Senate to avoid a veto by the President.

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With a presidential election campaign about to begin, a return to the Senate of a bill later in the year adds to concerns that the current solar energy tax breaks and incentives will not be renewed before expiring at the end of year.

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