Certain state and federal incentives for alternative energy are one step closer to being extended into 2011 and beyond. The Ohio House of Representatives voted last week to extend the Advanced Energy Fund for three years, and the U.S. House and Senate are expected to vote early this week on a tax bill that would extend a number of incentives.
President Obama worked with Congressional leaders on the federal tax bill, so it almost certainly will be signed into law if it passes the House and Senate. The bill extends the Section 1603 grants, a 30 percent grant in lieu of a solar energy tax credit; retroactively extends a research tax credit; and allows new allocations for the New Markets Tax Credit and new allocations of tax credit bonds for schools.
The Ohio House voted 52-44 to extend the Advanced Energy Fund through 2013. It is currently set to expire at the end of 2010, and it is possible the state Senate will take no action during the current session, thus allowing the fund to sunset.
The Advanced Energy Fund issues grants worth up to $200,000 for qualified projects. The bill that passed the House last week would increase the Fund from $100 million to $115 million. Voting was largely along party lines – Democrats supported it, Republicans opposed it – which raises questions about how the bill will fare in the Senate, which will soon be in Republican control.
Barnes Dennig’s tax specialists will continue to monitor the situation and keep you abreast of any changes.