The bill is now the Baucus-Grassley substitute amendment, which includes tax provisions supported by the National Association of Manufacturers:
- A seamless extension of a strengthened R&D credit.
- An extension of deferral of U.S. tax on active business global financing income.
- An extension of the look-through rules for payments between related foreign corporations.
WASHINGTON (Reuters) – The U.S. Senate on Tuesday approved a package to extend $18 billion in tax credits for using renewable energy sources like wind, solar and geothermal and also provide incentives to cut energy consumption.
Under the proposal, which will be part of a much bigger tax bill, the tax credit for producing electricity from wind would be extended for one year. The credit for other renewable sources, such as wave and ocean tide projects that generate power, would be extended for two years.
The residential and business tax breaks for solar energy would be extended for eight years.
Senate Majority Leader Reid described the bill as “half-offset” with added revenues — tax increases — which he hoped would be seen by House “pay-go” adherents as an acceptable compromise. Sen. Reid also emphasized the R&D tax credit was a two-year extension, rather than a single year. (Not permanent? Sigh. We’d also note that one of those years is the current one, going back to Jan. 1, 2008. But not to be churlish. It’s good, very good.)
AP story summarizes the entire legislation prior to passage.
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