Outlook for the 116th Congress: Tax Extenders Are On Again, Off Again

Outlook for the 116th Congress: Tax Extenders Are On Again, Off Again

This piece was originally published in the May/June 2019 issue of electroindustry.

Philip Squair, Vice President of Government Relations, NEMA

A number of important tax credits of interest to NEMA Members expired at the end of 2017. Despite multiple attempts to move legislation extending these credits, Congress has not been able to get the job done.

NEMA is particularly interested in the tax credits related to building efficiency and electric vehicles. Most recently, on March 26, NEMA wrote to  Rep. Michael Thompson, Chairman of the House Ways and Means Select Revenue Measures Subcommittee, expressing strong support for a multi-year extension of four tax incentives that collectively promote the U.S. as a global leader in modern electricity technologies.

Our letter called out the following four provisions:

  • Alternative Fuel Vehicle Refueling Property Credit (§30C): We urge a multi-year extension of the §30C credit to provide a forward- looking incentive to install the charging infrastructure necessary to enable adoption of next-generation vehicles.
  • Plug-in Electric Drive Vehicle Credit (30D): We urge a multi-year extension of the two-wheeled credit and a lifting of the 200,000-vehicle cap of the §30D credit to ensure America’s continued leadership and dominance in the global EV industry.
  • Energy-Efficient Commercial Buildings Deduction (179D): We urge a multi-year extension of the §179D deduction, which has provided outsized economic benefits in the form of leveraging private investments in energy- efficient buildings and thousands of well-paying jobs that cannot be outsourced.
  • Investment Tax Credit for Energy Storage: We urged Congress to fix the investment tax credit (ITC) in 48 and §25 regarding energy storage as an eligible technology. There is bipartisan, bicameral support for an ITC fix, which would ensure a level playing field for energy storage to compete with other resources eligible for the credit.

Unfortunately, despite the fact that NEMA and many others are pressing Congress to act, we will have to wait for results. ei


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