Fiscal cliff deal boosts investor confidence in America’s clean energy industry
- 04 January 2013
NEW YORK: A host of clean energy tax breaks were included in the US Congress deal to avoid the ‘fiscal cliff’, which will help boost investment in America’s greenest industries.
On January 1, in a bid to avert the fiscal cliff, Republicans and Democrats in the House of Representatives joined the Senate to pass the American Taxpayer Relief Act of 2012.
Among nationwide averted spending cuts, the fiscal cliff agreement offers extended tax breaks for electric vehicles, wind power, energy efficiency and bio-fuels industries.
Under the new deal, incentives include:
- Extension of the Production Tax Credit for wind farm developers
- The renewable energy investment tax credit (ITC) is extended for one more year
- Tax credit extensions for biomass, hydro and wind facilities
- 10% price reduction subsidy on small electric vehicles
- Tax credits for energy efficient homes and products to continue to end of 2013
- Further tax credits for bio-fuel producers.
During the announcement, President Obama described the agreement as "one step in the broader effort to strengthen our economy and broaden opportunity for everybody." He added: “Companies will continue to receive tax credits for the research that they do, the investments they make, and the clean energy jobs that they create.”
Mark Kenber, CEO, The Climate Group commented: “While the ITC is a positive step forward for the wind industry and we are encouraged that there is continued support for other green technologies, what we really need is a more comprehensive, long term policy that achieves real, large-scale sustainable transformation.
"We need bolder policy to achieve an American clean revolution: the only feasible path to a smarter, better, more prosperous future for all.“