RELEASE: Congress Should Extend Renewable Energy Tax Credits and Make Them Refundable, CAP Analysis Says
Washington, D.C. — Congress should extend the renewable energy tax credits and make them refundable for hard-hit companies that can’t take advantage of them during the coronavirus-fueled economic downturn, according to a new issue brief from the Center for American Progress.
These actions are critical to stem the hundreds of thousands of job losses in renewable energy over the past few months and encourage continued growth of the sector. Otherwise, the COVID-19 pandemic threatens to wipe out much of the progress that has been made in renewable energy over the past decade. And while the Trump administration has made significant effort to provide handouts to the fossil fuel industry during this crisis, it has failed to champion the renewable energy industry following years of administrative actions that have hindered renewables.
“In the face of this public health and economic crisis, coupled with the urgency of tackling the climate crisis, Congress must take immediate action to stem job losses for American workers in renewable energy industries and continue to fuel the deployment of clean, renewable energy sources,” said Bidisha Bhattacharyya, deputy director for Climate and Energy Policy at CAP and author of the issue brief.
The brief points out that if a company is unable to make a profit during the economic downturn and has little or no tax liability, then it cannot take advantage of these tax credits. Making the credits refundable would provide much-needed relief to the renewable energy sector. Refundability can be done through a direct cash grant or as a refundable tax credit claimed on the tax return, the brief says.
Read the issue brief: “Renewable Energy Tax Credits: The Case for Refundability” by Bidisha Bhattacharyya
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