This week has brought some new occurrences in legislation regarding investments in renewable energy. The end of the year is bringing pressure in congress to finalize legislations in order to get things moving for the upcoming year. The novel coronavirus has disrupted many industries and the economy as a whole which has caused this pressure in government as projects are delayed and workers laid off. Wind and solar are going to be taking a front seat next to many large, economy-booming industries in new pandemic related relief packages.
On Monday, December 21, Congress passed a pandemic relief bill with hopes to continue governmental funding initiated back in March for support for the ongoing novel coronavirus pandemic. The $900 billion relief bill also includes incentives for federal spending and green tax credit extensions. These extensions include a two-year extension of Investment Tax Credit in solar power and others related to wind energy tax credits, some through the year 2025[1]. The large amount of spending within this bill regarding the extensions is also going towards increasing research in energy and developmental programs. These factors will total around $35 billion of the relief package and will be the first major energy related legislation passed in the last 10 years.
Congress finds the support of renewable energy beneficial in allowing wind and solar developers to continue working in order to continue building, meet new deadlines and qualify for tax credits. The Senate and the House of Representatives are pushing for the continuation of growth in clean energy which justifies the apparent balance of support between both parties for these incentives. Prolonging the green tax credit along with other environmentally-beneficial investments in other areas will encourage the construction of new wind and solar facilities which, in turn, will continue to increase overall production of sustainable energy and energy efficiency in the U.S.[2] This support of green energy has been a growing goal in the country over the last decade and appears to not be a dwindling effort of Congress.
The global pandemic has altered so many aspects of society, with the economy being the major one, over the past year. With legislation such as this relief package — that is ultimately more of a stimulus bill — being passed, there will surely be an equal effort by developers and members of sustainable energy industries to continue advancements and production for the not only the upcoming year, but also the distant future.
[1] Jeff St. John, “Congress Passes Spending Bill With Solar, Wind Tax Credit Extensions and Energy R&D Package,” Greentech Media (Greentech Media, December 22, 2020),
https://www.greentechmedia.com/articles/read/solar-and-wind-tax-credit-extensions-energy-rd-package-in-spending-bill-before-congress.
[2] Allan Marks, “Big Stimulus For Clean Energy: Covid Relief Bill To Include Bipartisan Support For Green Tax Credits,” Forbes (Forbes Magazine, December 21, 2020), https://www.forbes.com/sites/allanmarks/2020/12/21/clean-energy-investments-get-a-bipartisan-boost-from-congress-in-relief-bill/?sh=4c06d55936f2.
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