May 8, 2020 - Energy & Environment
Treasury Department plans breathing room for renewable energy industry
The Treasury Department is signaling that it plans to offer more time for renewable power developers to qualify for tax credits as projects are disrupted by the coronavirus pandemic.
Why it matters: The industry is facing supply chain problems and other woes, leading to concern that a suite of projects will miss looming deadlines for incentives that are important for project finance.
What we don't know: Details. Treasury Secretary Steven Mnuchin, in a brief letter to Senate Finance Chairman Chuck Grassley, said the department "plans to modify the relevant rules in the near future."
- Grassley is among a bipartisan group who recently pressed Mnuchin to extend what are known as "continuity safe harbor" provisions in existing guidelines.
What they're saying: The American Council on Renewable Energy, an industry trade group, said extending the deadlines would be "immensely" helpful.
- "[T]he renewable sector has been hit hard these last couple of months by supply chain disruptions, shelter-in-place orders and other significant pandemic-related delays," the group said.