December 28, 2015
Nearly two weeks ago, Congress passed the omnibus Consolidated Appropriations Act, 2016 (the “Omnibus Bill”), and the Protecting Americans from Tax Hikes Act of 2015 (the “Act”), both parts of a package that President Obama signed into law on Friday, December 19, 2015. Both the Omnibus Bill and the Act make substantial changes to numerous expiring or already expired tax provisions, many of which will directly impact renewable energy development.
The more important provisions of the Omnibus Bill and the Act affecting renewable energy projects include:
Additionally, there was a two-year extension through 2016 for the deduction applicable to energy-efficient commercial buildings under Section 179D of the Code. Lastly, there was a five-year extension of the New Markets Tax Credit Program under Section 45D of the Code. The extension applies for the five years beginning 2015 and ending 2019, with $3.5 billion in allocation for each year. The carryover availability for unused limitation has been extended through 2024.