Outlook for renewable energy tax legislation

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September 2019 update

With many renewable energy incentives in the tax code either expired or scheduled to expire, stakeholders are engaging with policymakers as Congress debates its legislative priorities.

A two-year budget and debt limit deal agreement reached on July 22, 2019, could provide a path forward for potential action to address expired or expiring tax provisions and some technical corrections to the 2017 tax reform act. Subsequent action on fiscal year 2020 spending bills could provide a vehicle for tax legislation to be enacted before the end of 2019. In this outlook, we review key proposals in the House and Senate potentially impacting power and utility tax professionals.

Debating the future of energy policy

There may be some opportunity for more targeted renewable energy proposals to be considered during the current Congress. Green energy tax proposals related to renewable incentives introduced this year include:

  • Renewable Energy Extension Act (H.R.3961), which would extend the energy investment tax credit (ITC) for five years to promote clean energy investment.
  • Energy Storage Tax Incentive and Deployment Act of 2019 (S.1142 and H.R.2096), which would allow tax credits for energy storage technologies and battery storage technology.
  • Renewable Energy Transferability Act (H.R.2704), which would allow for transfers of the renewable electricity production credit and the energy credit.
  • Offshore Wind Incentives for New Development (WIND) Act (S.1957 and H.R.3473), which would allow an energy tax credit for investment in qualified offshore wind property, the construction of which begins before Jan. 1, 2026.

Contact us

Rohit Kumar

Rohit Kumar

Washington National Tax Services Co-Leader, PwC US

Bobby Marandi

Bobby Marandi

Sectors and Business Development Leader, PwC US

Maria Collman

Maria Collman

Energy, Utilities & Mining Tax Leader, PwC US

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