Incentives Watch: Renewable Energy Tax Credits Expected to Continue to Grow in 2013

The New Year brings a fresh start to us all. In particular, the wind industry is having a really good year so far, as the production tax credit was extended for all wind energy projects starting construction in 2013, notes an American Wind Energy Associationpress release.

In addition to extending the wind energy production tax credit, other tax credits, including those for biodiesel, cellulosic ethanol, electric vehicles, and energy efficient homes and appliances, were also extended as part of the fiscal cliff deal reached in H.R. 8, according to an Environment News Servicearticle.

States have also been ramping up their renewable energy tax credits as well.

Just last month, New York expanded its solar energy system equipment sales tax exemption to include commercial solar system equipment, reports a Bloomberg BNA Weekly State Tax Reportarticle.

During 2012, the states were active in passing new tax incentives despite the constant concern over whether the benefit to taxpayers truly outweighs the costs to the state in these hard economic times.

So we will have to wait and see what the 2013 tax year bring in terms of state tax incentives. It seems likely that renewable energy tax credits will continue to grow going forward.

New Mexico, for example, received more applications during 2012 than 2011 for the state’s solar market development credit, sustainable building credit, and geothermal credit, according to an article in The Daily Times.

For more information about the various state renewable energy credits, check out Bloomberg BNA’s Green Incentives Navigator.

In other developments . . .

Delaware recently amended its regulations regarding the state’s bank employee tax credit, according to a Bloomberg BNA Weekly State Tax Reportarticle.

By: Kathleen Caggiano

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