My Bracewell colleague Vivian Ouyang and I penned an analysis piece in today’s Bloomberg/BNA Daily Tax Report:
Congress last month reached a sweeping two-year budget deal, breaking a months-long legislative logjam and providing a vehicle for a laundry list of non-controversial items that had been captive to the broader standoff over immigration. In addition to establishing higher spending caps for 2018 and 2019 and funding the government for six weeks while a long-term omnibus bill is written, the package included everything from a year-long debt ceiling increase to $89 billion in disaster aid. But it was the tax title that provided the most suspense, as the fate of the so called “orphaned” renewable technologies remained up in the air until the release of the legislative text. In the end, Congress passed, and the President signed into law, a multi-year extension and phase-out of the investment tax credit (ITC) for geothermal heat pumps, fuel cells, small wind, hybrid solar, and combined heat and power systems, while providing a one-year retroactive reprieve for more than 30 other lapsed “extender” provisions.
You can read the full piece here.
A version of this piece originally ran as part of the Bracewell Tax Report, a biweekly publication of brief, timely updates on recent developments in the tax world. To subscribe, click here.
Previous editions of the BTR:
Week of February 26
Liam & Vivian topic: Prepaid Power Contracts
Week of February 12
Liam & Vivian topic: Bipartisan Budget Breakthrough Gives Orphans New Life
Week of January 31
Liam & Vivian topic: After Tax Bill Two-Step, Orphan Hopes Rest on Extenders
Week of January 15
Liam & Vivian topic: Renewable Energy & 100% Bonus Depreciation
Week of January 2
Liam & Vivian topic: TCJA Provisions Affecting the Renewable Energy and Power Industry