President Obama has released a budget plan for the 2014 fiscal year that increases funding for the development of clean energy. Before you break out the champagne, however, keep in mind that this is just a proposal by the President and must still be approved by Congress. The plan, which was released on April 10, would:… Continue Reading
Category Archives: Tax and Tax Stimulus
Subscribe to Tax and Tax Stimulus RSS FeedEnergy Policy Debate Redux
Posted in Legislation, Tax, Tax and Tax StimulusThe Senate has agreed to begin consideration of an energy tax bill (S. 2204) that will serve as the focal point of the debate over our nation’s energy policy. The provisions of the bill clearly highlight the differences in approach favored by Republicans and by Democrats when it comes to dealing with our energy future…. Continue Reading
Energy Provisions in Budget Show President’s Priorities
Posted in Capital and Funding, Energy Conservation, Legislation, Tax and Tax StimulusOn February 13, 2012, President Obama sent Congress a $3.8 trillion budget proposal for the 2013 fiscal year, which begins October 1. The budget proposal contains a number of energy-related provisions, including the following: Tax Credit for Wind Facilities – The U.S. Tax Code currently provides a production tax credit (PTC) for wind facilities. The… Continue Reading
Section 1603 Cash Grants – Here Comes the IRS
Posted in Capital and Funding, Tax and Tax StimulusThe spectacular and very public collapse of Solyndra has left both opponents and proponents of the Obama administration’s renewable energy policy wondering about government oversight of energy projects funded with taxpayer dollars. Solyndra, of course, is the solar panel manufacturing company that filed for bankruptcy last month, leaving taxpayers on the hook for a $535… Continue Reading
Carbon Tax – A Potential Solution to the Debt Crisis?
Posted in Climate Change, Legislation, Tax and Tax StimulusBy Jonathan Smith (2011 Graham & Dunn Summer Associate) On the heels of a potential debt ceiling resolution, the country is in search for effective remedies to the financial crisis. The far right has set its sights on eviscerating support for vital programs such as Medicare, unemployment insurance, and environmental protection. While the left seeks… Continue Reading
Tax Credit for Ethanol – Beginning of the End?
Posted in Legislation, Tax, Tax and Tax StimulusThe U.S. Senate recently voted in favor of a measure (‘‘Ethanol Subsidy and Tariff Repeal Act”) to end a 45 cents per gallon tax credit for ethanol. The measure would also repeal a 54 cents per gallon tariff on ethanol that is imported. While there was broad support for the measure, which passed with 73… Continue Reading
EVs and the Washington State’s Transportation System Funding — What Now?
Posted in Electric Vehicles, Legislation, Tax and Tax StimulusWashington State’s Transportation System is primarily funded by a motor vehicle fuel tax that is effectively paid by gasoline-powered vehicle owners at the pumps (the fuel tax is actually paid “at the rack” meaning that the tax is applied at the time fuel is removed from the terminal rack but such tax effectively trickles down… Continue Reading
Build, Buy, License, Strategic Partner – And The Legal Strategies That Go With Them
Posted in Capital and Funding, Sustainable Business, Tax and Tax Stimulus, TechnologyThere is a straightforward way to think about and plan the growth strategy – and corresponding legal strategy – for your green tech company: • Build • Buy • License • Strategic Partner “Build” is Invented Here – development and commercialization of green tech products and services – When the growth strategy is Build, the… Continue Reading
One Year Extension Provided For All Clean Energy Tax Breaks
Posted in Renewable Energy, Sustainable Business, Tax and Tax StimulusTax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. In addition, the new law changes the estate and gift tax rules, extends unemployment benefits and reduces the Social Security tax that workers pay. However, the part of the new law that addresses clean energy issues has received far less publicity. Before the new… Continue Reading
Whither Green Energy Subsidies?
Posted in Capital and Funding, Legislation, Tax and Tax StimulusWith midterm elections behind it, Congress has focused its attention on expiring provisions of the tax laws. It has been involved in a pubic debate with the current administration on how to extend Bush-era tax cuts, with much of the discussion centering on who should benefit from extending provisions of the tax laws that provide… Continue Reading
Level the Playing Field?
Posted in Entrepreneurs, Natural Resources and Environment, Renewable Energy, Sustainable Business, Tax, Tax and Tax StimulusBy Kathleen Petrich The sustainable new world and climate change management is theoretically predicated on quantifying power costs and either taxing it or providing some form of cap and trade system. The problem identified over and over in clean technology forums is the lack of a level playing field. And, we, in Washington are, alas,… Continue Reading
Section 1603 Cash Grants – Changes to U.S. Treasury Department Guidance
Posted in Capital and Funding, Tax and Tax StimulusMore than two weeks have now passed since the BP offshore drilling rig blew, causing a constant stream of oil to flow into the Gulf of Mexico. While experts keep adjusting their estimates of the rate at which the oil is spewing from the ocean floor, the accident is a major environmental disaster no matter… Continue Reading
Section 1603 Cash Grants – What’s on the Horizon?
Posted in Capital and Funding, Legislation, Tax and Tax StimulusThe American Recovery and Reinvestment Act of 2009 (“ARRA”) introduced a new program to encourage investment in renewable energy projects. The program, often referred to as the Section 1603 cash grant program, provides a cash grant to applicants who either (a) place in service qualified energy property during 2009 or 2010, or (b) both begin… Continue Reading
Electric Vehicles- A Novelty or the Next Big Thing? (Part III of IV: An Overall View of the of the Super-hyped EV Offerings)
Posted in Alternative Fuels, Tax and Tax Stimulus, TechnologyFollowing up on my earlier blog posts, here is a summary of the super-hyped EV offerings: Manufacturer/Make Availability Mileage Range Charging Options Sales Price/Anticipated Sales Price Comments Tesla Roadster Now 236 $101,500 (after application of $7500 tax credit) Lots of WOW! factor. 0-60 mph in 3.9 seconds. Tesla Model S Taking reservations; anticipated availability in… Continue Reading
The Next Step: Cap-and-Dividend?
Posted in Natural Resources and Environment, Regulatory, Tax and Tax StimulusIn a prior blog, we noted that the White House appears to concede that it is unlikely that Congress will pass cap-and-trade legislation anytime soon. See “Whither Cap-and-Trade?” Shortly after we posted the blog, it was widely reported in the news that Senator Lindsey Graham (R-SC) expressed similar doubts that such legislation will be passed…. Continue Reading
Electric Vehicles- A Novelty or the Next Big Thing? (Part II of IV: State of the EV Infrastructure)
Posted in Alternative Fuels, Tax and Tax Stimulus, TechnologyFollowing up on my March 22, 2010 post, the acceptance of EV technology will hinge to a large part on the charging infrastructure as current and promised EV offerings range/will range anywhere from 40 miles up to 300 miles per battery charge. Most of the EV manufacturers have at-home charging options (some at 120 volt–… Continue Reading
Electric Vehicles- A Novelty or the Next Big Thing? (Part I of IV)
Posted in Alternative Fuels, Tax and Tax Stimulus, TechnologyElectric cars– I have dreamed about them and, quite frankly, covet one: the Tesla Model S sedan, which is not yet in production but reservations are being taken for them now. Zero emissions and 100% instant torque: what’s not to love from that kind of vehicle? Even with the big range of the 236-300 miles… Continue Reading
Smart Grid Award Taxation Resolved (Sort Of)
Posted in Sustainable Business, Tax and Tax StimulusLast Wednesday and Thursday, I blogged about the uncertainties surrounding the taxability of smart grid grants provided under the American Reinvestment Recovery Act (“ARRA”). Yesterday, the U.S. Treasury Department issued an IRS ruling (Rev. Proc. 2010-20) that states smart grid investment grant (“SGIG”) awards to corporations will not be taxable income. The IRS ruling provides… Continue Reading
Additional Funding for Energy Projects Made Available by Department of Energy
Posted in Capital and Funding, Renewable Energy, Tax and Tax StimulusThe Department of Energy announced last week that $100 million in Recovery Act funding will be made available to accelerate innovation in green energy technologies. The announcement was made by Secretary of the Department of Energy Secretary Steven Chu at the inaugural ARPA-E Innovation Summit. (ARPA-E, which stands for Advanced Research Projects Agency – Energy,… Continue Reading
Smart Grid Taxation Up In The Air
Posted in Tax and Tax StimulusYesterday, I blogged about a letter sent by the National Association of Regulatory Utility Commissioners (NARUC) protesting the potential taxation of smart grid grants provided under the American Reinvestment Recovery Act (ARRA). I received several comments about this and wanted to explain the background for the NARUC letter. Technically, neither the Department of Treasury nor… Continue Reading
Don’t Tax Smart Grid Grants
Posted in Tax and Tax StimulusIn a seemingly counterproductive move, the Department of Treasury and the Internal Revenue Service have determined that smart grid grants awarded under the American Reinvestment and Recovery Act (ARRA) are taxable. ARRA directs the Department of Energy to issue $3.4 billion in smart grid investment grants and $615 million in smart grid demonstration project grants…. Continue Reading
Whither Cap-and-Trade?
Posted in Natural Resources and Environment, Regulatory, Tax and Tax StimulusThe unveiling by the White House of its 2011 fiscal year budget in early February reveals that the current administration has become increasingly skeptical (or maybe we should say realistic) about the likelihood of Congress passing cap-and-trade legislation. Last year’s budget assumed that there would be $648 billion in new revenues over ten years from… Continue Reading
Proposed Clean Energy Tax Legislation – Tinkering with the Parts
Posted in Legislation, Renewable Energy, Tax and Tax StimulusLast month, December of 2009, members of the House of Representatives and the Senate introduced a number of bills to amend the laws relating to tax incentives for clean energy projects. The bills have being reviewed by the appropriate congressional committees. This is only the first step in the legislative process before the bills can… Continue Reading
$2.3 Billion in Clean Energy Tax Credits Awards Announced
Posted in Legislation, Renewable Energy, Tax and Tax StimulusLast Friday (January 8), President Obama announced awards of $2.3 billion in clean energy tax credits. The awards were made to 183 manufacturers of equipment used to produce clean energy. The size of the awards ranged from $75 thousand to $128 million. Clean energy tax credits were authorized by the American Recovery and Reinvestment Act… Continue Reading