The Bipartisan Budget Act of 2018 (H.R. 1892) (the “Act”) was enacted on February 9, 2018.  The Act is a two-year budget agreement that includes a number of provisions extending lapsed renewable energy-related tax credits; however, the Act does not change the amount or timing of the tax credits for utility scale wind or for solar.

The Act retroactively renews the tax credits for the so-called orphaned technologies that were left out of the 2015 extension for wind and solar, but for some of the orphaned technologies the tax credits are only available for projects that started construction prior to 2018; thus, limiting the tax planning opportunities, while rewarding bold developers that started construction in 2017 while the credits were lapsed.

Excise tax matters and energy related tax credits for homes, buildings, vehicles, nuclear power plants, Indian coal, biodiesel and biofuel are beyond the scope of this blog post.
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The Congressional Research Service (CRS) has issued its periodic report on the investment tax credit (ITC).

The report has a helpful summary of current law, useful history and data regarding the cost of the ITC; however, it omits certain ITC eligible technologies from its discussion. The full report is available here: CRS 2016 ITC Report.

Below is a helpful table included in the CRS report that summarizes the tax credit phase out rules for certain renewable energy technologies:

CRS ITC chart


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