Tax extension for renewables in budget bill

An extension of a federal tax credit for renewable energy projects is expected to be passed by the U.S. Senate today and sent to President Obama for his signature.

The five-year extension, which would allow utility-scale wind or solar projects, as well as residential solar systems, to qualify for a 30 percent federal tax credit, is part of a congressional budget bill the Senate is expected to pass today.

U.S. Sen. Brian Schatz said he was confident the bill will be approved and signed by the president.

“It will be passed,” Schatz said. “The House just passed it decisively, and we anticipate having sufficient votes to pass it.”

Many utility-scale solar and wind developers voiced concern about the possible sunset of the tax credit. The wind tax credit expires at the end of this year. The solar tax credit would end in December 2016.

“It is the difference between most projects being dead and most projects being viable,” Schatz said. “Investors were absolutely prepared to walk away without the federal credit.”

The credit will remain 30 percent through 2019, drop to 26 percent in 2020, then fall to 22 percent in 2021.