Among the many extensions specified in the amended version of a House bill (H.R.8) passed by the US Senate on New Year’s Day by a vote of 89 - 8 to avoid the across-the-board increase in taxes currently called for by the “fiscal cliff” are a number for energy tax benefits.
The amended bill, now called the “American Taxpayer Relief Act of 2012” and next to be considered by the House, contains 12 extensions outlined in Title IV of the bill, ranging from extension of production credits for Indian coal facilities to benefits for alternative fuels (including algal biofuels) and plug-in vehicles. The Sections are:
Credit for energy-efficient existing homes is extended to 31 December 2013.
Credit for alternative fuel vehicle refueling property is extended to 31 December 2013.
Credit for 2- or 3-wheeled plug-in electric vehicles. In the case of a qualified 2- or 3-wheeled plug-in electric vehicle, up to 10% of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or $2,500 may be allowed as a credit.
Qualifying 2- or 3-wheel vehicles need a 2.5 kWh pack (down from 4 kWh), are capable of achieving a speed of 45 mph (72 km/h)or greater, and must be acquired after 31 December 2011 and before 1 January 2014.
Extension and modification of cellulosic biofuel producer credit. The extension now carries through to qualified production beginning before 1 January 2014. Algae is treated as a qualified feedstock.
Additionally, the section strikes the term cellulosic biofuel in favor of “second generation biofuel”.
Incentives for biodiesel and renewable diesel are extended to 31 December 2013.
Extension of production credit for Indian coal facilities placed in service before 2009 for an 8-year period rather than a 7-year period. The amendment applies to coal produced after 31 December 2012.
Extension and modification of credits with respect to facilities producing energy from certain renewable resources. Among other provisions for municipal solid waste, hydro, and biomass facilities, production tax credits for wind facilities are extended to 1 January 2014.
Credits for energy-efficient new homes are extended to 31 December 2013.
Credits for energy-efficient appliances are extended into 2013.
The special allowance for cellulosic biofuel plant property is extended to 1 January 2014. In addition, algae is treated as a qualified feedstock for such.
The special rule for sales or dispositions to implement FERC or state electric restructuring policy for qualified electric utilities is extended to 1 January 2014.
Alternative fuels excise tax credits are extended to 31 December.
American Taxpayer Relief Act of 2012 (Engrossed Amendment Senate - EAS)[H.R.8.EAS]