The economic stimulus bill appears to be headed for President Obama’s desk in a matter of days. This alert summarizes the bill’s current provisions related to the energy industry. HRO will provide updated alerts on specific provisions as the bill is finalized and more information becomes available.
Department of Energy Appropriations
The final stimulus bill will likely appropriate $35 to $40 billion dollars to DOE for spending on clean energy projects in the next two years. DOE has indicated it expects to spend half of this funding this year and is working internally and coordinating with individual states to identify energy projects that can begin immediately. Here are some of the likely energy appropriations.
Clean Energy Tax Benefits
In addition to direct government spending, the final stimulus bill will likely contain billions of dollars of clean energy tax benefits, including:
- Extension of the production tax credit to renewable energy facilities placed in service before the end of 2012 (wind) and 2013 (biomass, geothermal, hydropower, landfill gas, waste-to-energy)
- Allowance to renewable energy projects to claim a 30% investment tax credit in lieu of a production tax credit or to apply for a DOE grant of up to 30% of the building costs of specified renewable facilities placed in service in 2009-2010
- Removal of the cap on investment tax credit for small wind properties
- Creation of an extra $2.4 billion of bonds for state and local government programs to reduce greenhouse gas emission
- Creation of an extra $1.6 billion of clean renewable energy bonds
- A 20% tax credit for renewable energy research in 2009 and 2010 (fuel cells, renewables, carbon sequestration and transmission)
Department of the Interior and Environmental Protection Agency Appropriations
The final stimulus bill will also likely include the following appropriations to DOI or EPA.