On February 5, 2021, House Democrats reintroduced the GREEN Act. The GREEN Act extends federal tax credits for renewable energy and expands them to include new storage technology.

Key provisions include:

  • extending the Investment Tax Credit (ITC) for solar energy at 30% through 2025 before phasing down to 26% in 2026, 22% in 2027 and then 10% from there;
  • extending the 30% investment tax credit for offshore wind property through 2026;
  • preserving the wind production tax credit’s 60% phaseout level through 2026;
  • extending the production tax credit for marine and hydrokinetic renewable energy facilities through 2026; and
  • providing for a 30% investment tax credit for energy storage technology.

Additionally, the GREEN Act contains provisions modifying the publicly traded partnership rules and allowing for an election to make certain renewable energy tax credits partially refundable. These provisions, if the bill becomes law in its present form, have the potential to significantly expand the investment base in renewable energy projects and reshape how transactions in this area can be structured.

The GREEN Act is likely to receive committee consideration this spring. Its legislative future may depend on the passage of the next COVID relief bill. Even if the GREEN Act does not become law in its present form, some or all of its provisions may be included in future legislation passed by reconciliation. A section-by-section summary of the bill is available here. If you have questions about the effect of the GREEN Act on your business, please contact Husch Blackwell’s Solar Energy team or Wind Energy team.