Published Date : Nov 24, 2017
Tax reform was one of the platforms on which Donald Trump ran for Presidency. Last week both houses of the US Congress passed different versions of the tax reform bill. Getting a major tax Reform Bill passed will be a victory for Donald Trump. While each version of the tax reform has several implications on the renewable energy sector, the wind energy sector in particularly worried about the house bill. The bill passed by the Senate finance committee does not include any extension for the renewable energy technologies such as fuel cells, geothermal, Biomass, or hydro, all of which had been previously omitted from the tax credit extension. However, the bill keeps all the provisions for renewable energy tax credits in place.
The house is proposing to change the rules for investment in wind power many years after the signing of contracts and orders for turbines have been placed. Therefore the bill that was passed by the entire US House of Representatives has become a major cause of concern for those in the wind energy sector. The bill can have potential disastrous repercussions for the growth of the wind energy industry as well as the manufacturing supply chain.
The elimination of the safe Harbor clause as well as modifications to the “start construction” language, will cause project developers who have signed the contract in 2015 and 2016 but have not yet put a shovel in the ground to be in a terrible position.