On Friday, January 23, the Chairman of the Senate Finance Committee released his version of the economic stimulus bill. Like its House counterpart (H.R. 598), the proposal by Chairman Max Baucus ("Chairman’s Mark") is called the American Recovery and Reinvestment Tax Act of 2009. The Chairman’s Mark is scheduled to be considered in the Finance Committee on Tuesday, January 27.
As with H.R. 598, the Chairman’s Mark would extend the production tax credit ("PTC") sunset date, permit taxpayers to elect to claim the investment tax credit ("ITC") in lieu of the PTC for certain projects, and extend bonus depreciation through 2009. Importantly, however, the Chairman’s Mark does not include the provision in the House bill that would enable taxpayers to receive cash grants in lieu of the ITC for certain projects. Without this grant provision, questions have been raised as to whether the Chairman’s proposal would accomplish the legislative purpose of promoting investment in renewable energy development. Other provisions of note in the Chairman’s Mark are modifications to the general business credit and a new 30% credit for investment in certain property used in a "qualified advanced energy manufacturing project."
Click here for a detailed summary of the Chairman’s Mark. To view our recent Energy Law Alert on the House bill, click here.