The Western Governors' Association (WGA) recently sent legislators a letter urging a modification of the Section 48 renewable energy investment tax credit (ITC) from a ‘placed in service’ standard of eligibility to a ‘commence construction’ standard.
The letter was signed by Colorado Gov. John Hickenlooper, WGA chairman, and Nevada Gov. Brian Sandoval, WGA vice chairman. The letter was sent to Sens. Max Baucus, D-Mont., and Orrin Hatch, R-Utah (chairman and ranking member, respectively, of the Senate Committee on Finance), as well as Reps. Dave Camp, R-Mich., and Sander Levin, D-Mich. (chairman and ranking member, respectively, of the House Committee on Ways and Means).
In the letter, the WGA says, ‘Section 48 ITC benefits a variety of technologies and industries that are important to our state economies, including solar energy, fuel cells, microturbines, combined heat and power, small wind and thermal energy.
‘Changing the ITC to a 'commence construction' standard would allow these industries to make full and effective use of the 30 percent investment tax credit for the duration of its existing authorization (which expires on Dec. 31, 2016), and will allow them to attract further investment – driving industry and job growth in our states.’
The WGA adds that without the change, large-scale projects might be less likely to be completed. The full letter can be found HERE.
