Clean Tech Taxcess Tracker

Your Update on Energy Tax Legislation

Date: May 12, 2010

Senate Finance Committee member John Kerry, D-Mass., and Senator Joe Lieberman, I-Conn, released today their anticipated legislation, the American Power Act, that creates a cap-and-trade program similar to legislation passed by the House in June 2009. As suggested by yesterday’s circulated draft summary, the legislation proposes to expand by $5 billion the section 48C Advanced Energy Manufacturing Project Credit as established under the American Recovery and Reinvestment Act of 2009 (P.L. 111-5).

Further action on this legislation is unlikely until mid-June at the earliest following an economic analysis by the Environmental Protection Agency (EPA). Senate Majority Leader Harry Reid, D-Nev., indicated this week that he would like to gauge reactions to the legislation and determine chances for action after returning from the one-week Memorial Day recess that is scheduled to begin on May 31.

Senate Finance Committee Chairman Max Baucus, D-Mont., would also have to agree to the tax incentives in the legislation before legislative action could occur.

See page 827 of the linked statutory language for the 48C provision.

Please contact either Scott Smith or Lori Wren Elerts if you have any questions or need additional information.