By a 6-2 vote, the Revenue Committee of the Nebraska legislature advanced legislation that would create a production tax credit (PTC) and an investment tax credit (ITC) for renewable energy generation facilities that qualify as rural community-based energy development.
L.B.423, introduced by Rep. Jeremy Nordquist, D-Omaha, requires wind farms to be constructed within Nebraska and achieve commercial operation after September.
The PTC would be a $0.01/kWh credit for the first two years of commercial operation. After two years, the credit is reduced by one-tenth of a cent each two-year period. In years nine and 10, the credit would be worth $0.006/kWh. The ITC would be a 30% credit, with a $2 million cap per project. Credits are freely transferable if granted to a project with a nameplate capacity of 20 MW or less – otherwise they are transferable only by syndication.
The full legislature is expected to consider the bill in the next few weeks. To view the bill, click here.
David Levy, a lobbyist for Baird Holm, says that because the legislation is designated as a priority bill, the full legislature will consider it this year.
‘We anticipate a push to reduce the credit further,’ Levy says, adding that he anticipates the credit will be further reduced to perhaps a flat three-fourths of a cent. ‘And possibly for a cap either per project or on the program overall.’
