Senator Charles Grassley, R-Iowa, the Ranking Member of the Senate Finance Committee was unsuccessful Tuesday in extending tax provisions for wind energy policy that he said would encourage greater investment.
Grassley offered amendments to the economic stimulus legislation to extend section 45 of the federal tax code for five years and establish a new 10-year carry-back of either the production tax credit or the investment tax credit depending on the wind energy company's election. However they were rejected by the majority of the committee.
"The economic stimulus bill is the perfect place to make this policy change because the tax-equity financing market, which is typically how wind-energy projects are financed, has dried up as the investors in these projects, which are mainly large financial institutions, no longer seek out the production tax credit because they have income tax liabilities," Grassley said. "A lot of projects are on hold, jobs are on the line, and a longer carry-back could help some of those stalled projects get going again."
The current stimulus legislation that was passed by the House provides a five-year carry-back and provides the tax credit only through 2010.