The American Wind Energy Association (AWEA) issued the following statement reacting to Renewable Energy Transferability Act.
WASHINGTON — The American Wind Energy Association (AWEA) issued the following statement reacting to Representatives Earl Blumenauer (D-OR-3) and Darin LaHood (R-IL-18) introducing the Renewable Energy Transferability Act that would allow the renewable energy production tax credit (PTC) and investment tax credit (ITC) to be transferable on a limited basis to any entity involved in a renewable power project.
“AWEA strongly supports the Renewable Energy Transferability Act legislation introduced by Representatives Earl Blumenauer and Darin LaHood that would allow limited transferability of the renewable electricity PTC and ITC,” said Tom Kiernan, CEO of AWEA. “Maximizing the usability of these tax credits as they phase out will expand consumer access to low-cost renewable energy. Following similar treatment for other technologies, the Blumenauer and LaHood bill will deploy thousands of additional megawatts of renewable energy projects and boost economic development across the country.”
Transferability addresses a common barrier to the effective implementation of energy tax policy. In some cases, the owner of an energy facility that earns tax credits does not have taxable income that would make the tax incentive valuable. The Renewable Energy Transferability Act addresses this problem by making tax credits transferable to any entity involved with a renewable energy project, which will make it easier to recruit capital needed to finance these projects. Transferability of energy tax credits is not a new concept. Both the Advanced Nuclear Production Tax Credit and the Credit for the Sequestration of Carbon Oxide have been revised to include transferability provisions.