Today, the Alliance for Industrial Efficiency endorsed the Renewable Energy Parity Act (S. 2003), which extends eligibility for the Section 48 Investment Tax Credit (ITC) based on when a project commences construction, rather than completion. The ITC currently provides tax incentives for new CHP systems that are placed in service by December 31, 2016. Because of their scale and complexity, a typical CHP project takes many years to design, finance and install. With the approaching 2016 expiration of Section 48, the utility of the tax credit is quickly diminishing. The changes to the ITC in the Renewable Energy Parity Act reduce concerns among developers of these projects that they will be ineligible for the ITC because they were not able to make the project fully operational before the expiration date. You can find our letter to Finance Chairman Wyden and Ranking Member Hatch here.
The Alliance Endorses the Renewable Energy Parity Act
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