The GOP tax reform plan barreling toward a vote in the Senate could deal a devastating blow to the renewable energy industry. Unlike the more draconian House version, the Senate bill does not slash renewable tax credits directly, but it does impose steep taxes on the companies that help finance renewable development. Leaders in the wind and solar sector warn that such hikes would undercut the industry's most important financing tools.
“Almost overnight, you would see a devastating reduction in wind and solar energy investment and development,” Gregory Wetstone, the head of the American Council on Renewable Energy, said in a statement.
When Senate Republicans released their tax plan two weeks ago, renewable advocates were initially relieved. The House bill, released in early November, proposed cutting the Production Tax Credit (PTC) for renewables by a third, eliminating the Investment Tax Credit for solar production, and repealing the electric vehicle purchase credit.