This morning the House Ways & Means Committee rejected an amendment attempting to restore existing tax breaks for wind energy projects. This essentially leaves it up to Iowa Senator Charles Grassley (R-IA) and other historically strong supporters of wind energy to protect these incentives in the Senate Finance Committee version of the bill. The Republicans’ slim majority in the Senate, especially given Sen. Grassley’s prior threats that wind energy tax credits will be eliminated “over my dead body,” suggests there may be room for bi-partisan compromise once the Senate Finance Committee marks up its own version of the bill in the coming weeks.
Wind industry and renewable supporters have reason to worry that these House changes – if not modified in the Senate – will prompt investors and developers to withdraw from current projects and significantly stifle further wind energy development in our country. Read our previous post for more information on the proposed cuts and expected impacts.
The Energy & Natural Resources group at Husch Blackwell will continue to monitor and report back on developments involving renewable energy in the tax bill or any subsequent legislation as they develop.