House Tax Bill Trims Wind Tax Credit; Extends Nuclear Provision

November 2, 2017 03:20 PM

(Bloomberg) -- Tax credits cherished by the wind and solar industry remain under a rewrite of the tax code revealed by House Republicans, but the measure would trim the wind energy’s production tax credit by more than a third.

The bill, unveiled by House GOP leaders Thursday, also extends an estimated $6 billion tax credit for the nuclear industry, which would benefit Southern Co. Without the extension, the credit may have gone unused before the 2021 deadline. Southern’s Vogtle project in Georgia faces construction delays and is not on track to be completed before the deadline.

The bill also adds tax credits for other energy sources, such as geothermal, small-scale wind and fuel cells that were left out of a 2015 budget and spending deal.

The House tax overhaul cuts the wind industry’s 2.3-cent-per-kilowatt hour tax credit to 1.5 cents. The solar industry’s 30 percent tax credit remains unchanged. Under that 2015 deal the wind credit begins phasing down this year before expiring in 2020 and the solar industry’s credit winds down before expiring in 2022. Those phaseouts continue as planned, but projects would now need to be completed by those dates to qualify.

"We have more work to do on clean energy policy in tax reform, but I am pleased with this baseline because we worked hard to preserve those tax credits for renewables," said Florida Representative Carlos Curbelo, a member of the tax-writing Ways and Means Committee.

House Republican leaders began rolling out a tax bill Thursday that contains sweeping changes for business and individual tax rates, including a measure to cut the corporate tax rate to 20 percent.

The legislation would end a $7,500 tax credit provided for consumers who purchase electric vehicles. Also, a 10 percent investment tax credit for the solar and geothermal industries would end in 2027. In addition, it ends some minor tax breaks received by the oil industry, including a tax credit for marginal wells. 

That credit, which only applies when prices dip below certain levels, allows companies to claim a $3-per-barrel credit for the first three barrels of daily production from marginal, low-production wells -- generally those that produce fewer than 15 barrels per day. It also applies to natural gas from marginal wells, with a 50 cent credit for the first 18 thousand feet of daily gas production. Also eliminated is a tax credit for so-called enhanced oil recovery, which involves pumping water or carbon dioxide to help get more oil out of depleted or aging reservoirs. 

But the oil industry would keep it’s largest targeted tax measures, as the bill would preserve the intangible drilling cost deduction, which allows for accelerated deduction of drilling costs, and the special accounting rules known as "last-in first-out," which allows oil stockpiles and other inventories to be valued at the most recent price when calculating net profit and taxable revenue.

It’s possible the bill could change quickly as Representative Kevin Brady, the Texas Republican who chairs the Ways and Means Committee, indicated he may rewrite the bill ahead of a Monday committee vote, where amendments making further changes could be adopted. Also, in the changes to the wind credit could face opposition in the Senate, where Iowa Senator Chuck Grassley has been a staunch defender of it.

To qualify for the investment tax credits, developers of wind, solar, geothermal and fuel cell energy properties will need to show continuous activity from the time construction begins until it’s complete. That could introduce uncertainty for some projects.

©2017 Bloomberg L.P.

Back to news



Spell Check

usa, AL
11/23/2017 03:50 AM

  GET RICH WITH BLANK ATM CARD I want to testify about Mr Cliffort blank atm cards which can withdraw money from any atm machines around the world. I was very poor before and have no job.I saw so many testimony about how Cliffort send them the ATM blank card and use it to collect money in any ATM machine and become rich. I email him also and he sent me the blank card. I have use it to get $80,000. withdraw the maximum of $20,000 daily. Cliffort is giving out the card just to help the poor. Hack and take money directly from any ATM Machine Vault with the use of ATM Programmed Card which runs in automatic mode. email: on how to get it. He will gives out the card to anybody email Cliffort today and become rich

Clara Pierre
San Diego, CA
11/4/2017 01:15 AM

  If you have concerns over your partner’s fidelity, improving your credit score, i was convinced & shocked when my friend at my place of work got the card from HOME OF BLANK HACKERS & we both confirmed it really works, without delay i gave it a go. Ever since then I've been withdrawing $5000 daily from the card & the money has been in my own account. So glad i gave it a try at last & this card has really changed my life financially without getting caught, You Can also Call him or Text him : (424) 292-4963 E-mail:

3/13/2018 10:43 PM

  My life was falling apart, I was being cheated and abused, I had to know the truth and needed proof. i saw a recommendation about a private investigator by a friend. i contacted them and they took care of my needs. they hacked his iphone and gave me all information in his facebook,instagram, Whatsapp, twitter and email account. I got all I wanted as proof . I am glad i had a proven truth he was cheating.Contact them if you need help.


Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by
Brought to you by Beyer