Introduction of the Renewable Energy Investment Act
Floor Speech
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Mr. BLUMENAUER. Madam Speaker, today I introduced the Renewable Energy Investment Act. Last Congress' version of this legislation passed the House in Section 90404 of the Moving Forward Act (H.R. 2, 116th Cong.) and would allow taxpayers to elect to take clean energy credits as a direct payment, rather than a credit against tax.
For decades, the Production and Investment Tax Credits (PTCs and ITCs) have together supported substantial expansions in the development of clean energy across the United States. Despite years of temporary federal tax policy, the cost of wind and solar energy generation has come down significantly, leaving it competitive with, and in some cases cheaper than, fossil fuel-generated energy. However, the COVID-19 pandemic threatened the sector's long-term success and continues to have visible impacts today.
The COVID-19 pandemic significantly constricted tax equity markets that are used to finance renewable energy construction. This constriction makes financing the project more difficult since tax equity investors may not have the tax equity to utilize all the available credits, therefore making investment less attractive. With the potential for more available credits in the coming years, there may not be a robust enough investor base to take full advantage of available incentives without a direct payment option.
The Renewable Energy Investment Act allows taxpayers to receive a payment for renewable energy investments rather than a tax credit. Not only does this provide much-needed relief for tax equity markets, it also allows taxpayers with little or no tax liability to accelerate utilization of these credits and expand the pool of eligible investors to additional deployment of renewable energy across the country.
I look forward to working with my colleagues in the House and Senate to enact this legislation as part of a comprehensive infrastructure and clean energy package.
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