Thursday, September 23, 2004

BREAKING NEWS: Production Tax Credit included in Congressional Tax Deal, Enactment Expected in Days

The New York Times, and Miami Herald, and the St. Petersburg Times are all reporting this morning that $13 billion in business tax breaks were included last minute as part of the tax bill agreement reached between House and Senate Conference negotiators late last night.

Although not yet reported by the major news sources, the early indication, independently confirmed through sources at the American Wind Energy Association, is that the Production Tax Credit (PTC) for wind energy development was one of these tax breaks. The PTC for renewable electricity generation now believed to be included in H.R. 1308 (the family tax bill), appears to have been moved from a separate corporate tax bill (H.R. 4520), which is also currently in joint conference (see our early post on the corporate tax bill for more on this bill).

The version of the PTC originally included in HR 4520, and now apparently included in H.R. 1308, would extend the 1.8 cent per kW credit until December 31 of 2005.

With the House expected to vote on the bill as early as today, the Senate as early as tomorrow, and the President anxious to approve the tax cuts, the Production Tax Credit could be back in place as early as next week.

Stay tuned, we'll keep you up to date as more information on this development hits the web.

UPDATE: This AP article confirms that the renewable energy PTC was included in the last minute additions to the tax deal.

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