The US Congress has released a draft bill that would provide tax credits for manufacturers of renewable energy equipment and funding for other sources of clean energy.
House Ways and Means Committee Chairman Sander Levin, D-Mich., unveiled the draft legislation which aims to encourage domestic manufacturing of energy equipment and renewable fuel development.
The proposed legislation would modify the Section 48C advanced manufacturing tax credit to provide an uncapped 30 percent investment tax credit for expenditures to re-equip, expand or modify facilities that manufacture and fabricate solar energy property, fuel cell power plants, and advanced energy storage systems (including batteries for advanced vehicles).
The proposal would extend for two years (through 2012) and codify the direct payment in lieu of tax credit program that was initially created by Section 1603 of the American Recovery and Reinvestment Act of 2009 for renewable energy facilities (e.g., wind, solar, and biomass facilities), combined heat and power facilities, fuel cells and microturbines that qualify for the production tax credit and investment tax credit. Among other technical improvements, the proposal would clarify that real estate investment trusts may participate in the program.
Under current law, residential fuel cells are eligible for a 30 percent investment tax credit (capped at $1,000 per kilowatt hour of capacity). Commercial fuel cells are eligible for a 30 percent investment tax credit (capped at $3,000 per kilowatt hour of capacity). The proposal would harmonize the capacity limitation of residential fuel cells to the capacity limitation of commercial fuel cells (i.e., $3,000 per kilowatt hour of capacity). Furthermore, the proposal would allow micro-combined heat and power systems to qualify for the 30 percent investment tax credit for residential energy efficient property.
The proposal would also extend the 50 percent investment tax credit for alternative vehicle refueling property for three years (through 2013). The proposal would also make modifications clarifying the availability of this credit for electric vehicle refueling pump property and for property that fuels non-motor vehicles that run on hydrogen fuel cells.
Source: Fuel Cell Today