Senate Announces They Will Add Expiring Renewable Energy Tax Credits to FAA Reauthorization Bill FAA RENEWABLE ENERGY TAX CREDITS April 6, 2016 | Ben Booker Source: Jack Fitzpatrick, “FAA Bill Creates Opening for Clean Energy Tax Credits, Morning Consult, April 5, 2016; Alex Rogers and Jason Plautz, “FAA Deal Hits Hurdle,” National Journal, April 5, 2016; John Sicilano, “FAA Bill Targeted for Energy Subsidies,” Washington Examiner, April 5, 2016.; Melanie Zanona, “Senate Strikes Deal on Energy Tax Breaks in FAA Bill,” The Hill, April 6, Major Actors for and Against Renewable Energy Tax Credits “The $1.4 billion in expiring tax provisions currently under consideration…are a distortion of the tax laws for special interests in the renewable energy industry and were wisely left out of this package.” -Coalition of Conservative Organizations opposing energy tax credits “No one intended to leave them out. It was not a fight. It was supposed to go in. And everyone agreed then, the leaders who were all putting together the bill that we would try to do it in the FAA extender bill.” - Senator Chuck Schumer “This short-term expiration of tax incentives is jeopardizing the long-term investment necessary for advanced biofuels..” -Coalition of Renewable Energy Fuel Associations “It’s just go­ing to add an­oth­er lay­ er of con­tro­versy…It’s tax ex­ pendit­ures; it’s ob­vi­ously spend­ ing money we don’t have” -Senator John Cornyn, GOP Whip

Energy Tax Credits Affect a Range of Industries Including Geothermal, Wind, Biofuels and Fuel Cells FAA RENEWABLE ENERGY TAX CREDITS April 6, 2016 | Ben Booker Source: William Pentland, “Solar and Wind Score Federal Tax Subsidies,” Forbes, December 18, 2015; Energy Star Program, “Federal Tax Credits: Wind Turbines (Residential); Alex Rogers and Jason Plautz, “FAA Hits Hurdle,” National Journal, April 5, 2016; Industrial Efficiency Policy Database, “US-12:Business Energy Investment Tax Credit (ITC),” Institute for Industrial Productivity, April 6, 2016; Dougherty, D.A,,, (2016, March 21“Sec. 48 and 25D Renewable Tax Credit Extensions,” Geothermal Exchange Orgnaization, Retrieved from Advanced Biofuels Business Council, Algae Biomass Orgnaization et al., (2015, April 5),”Biofuels Tax Extenders Spring 2016,” Retrieved from Energy SourceTax Credits Expiring Biomass/BiofuelsSecond Generation Biofuel Producer Tax Credit Special Depreciation Allowance for Second Generation Biofuel Plant Property Biodiesel and Renewable Diesel Fuels Credit Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit Alternative Fuel Vehicle Refueling Property Combined Heat and Power Properties 10% investment tax credit on CHP facilities Fuel Cells30% investment tax credit on fuel cell development GeothermalExtend income tax credit under Section 25D of tax code Extend investment tax credit under section 48 of tax code Small Wind generators 30% investment tax credit for residential small wind turbines Renewable Energy Industries Impacted by Expiring Tax Credits Carbon Capture and Sequestration Tax Credits Oil, gas and coal companies are taking opportunity provided by tax credit discussion to promote carbon capture and sequestration tax credits Fossil fuel industries believe they can extend tax credits for these technologies which remove carbon from energy production and store it underground There is less support for carbon capture and sequestration tax credits though, especially amongst Republicans making it less likely to be included