Utilities, energy developers back Senate’s more lenient tax credit timeline

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Eighteen trade associations representing utilities, power plant developers, and electrical equipment manufacturers have urged Senate leaders to maintain a more lenient timeline for energy projects to qualify for clean energy investment and production tax credits. They argue that reverting to a stricter 'placed in service' standard, as proposed in the House bill, would create significant uncertainty and potentially jeopardize ongoing energy infrastructure projects. The Senate Finance Committee's current proposal still imposes high eligibility standards, particularly for wind and solar projects, while allowing other clean energy technologies more time to qualify for credits.

The Senate is under pressure to finalize the budget bill by a self-imposed July 4 deadline, with potential votes occurring soon. The energy groups emphasize that the 'start of construction' standard is crucial for ensuring project bankability and securing financing, as it accommodates the lengthy permitting processes and equipment lead times that can delay project completion. The letter highlights that maintaining this standard would provide stability for clean energy investments, contrasting with the House's approach that could lead to increased electricity costs and job losses in the sector.