Tax Bill Impacts on Renewable Energy Unclear

The impacts of the final tax bill on renewable energy finance:

  • The $7,500 credit for electric vehicle (EV) purchases is intact until 200,000 EVs are sold.
  • The production tax credits for wind and the 30 and 10 percent investment tax credits for solar survived and with the same eligibility requirements.
  • Changes to the corporate tax rate from 35 to 21 percent will impact profits from renewables projects, project finance and the value of tax credits.
  • The BEAT provision – Base Erosion Anti-Abuse Tax, could threaten tax equity financing for renewable energy, according to industry groups.

“…[W]hile the overall effect on renewable energy projects and finance is unclear at this time, one thing is clear form the new bill: that lenders, developers and tax lawyers will be very busy for the next year trying to figure out the new landscape.” pv-magazine