The U.S. Senate is currently debating legislation to reauthorize the Federal Aviation Administration (FAA). It is likely that the bill will contain a tax title including energy tax provisions. There is increasing support for an extension of the Investment Tax Credit for biomass, geothermal and fuel cells. Also under discussion are other proposals, including tax credits for biofuels, carbon capture and sequestration.
Some conservative groups are voicing opposition to any renewable energy tax provisions. However, key Senate Republicans and Democrats indicate that an agreement is close.
Timing for House action on a FAA bill and possible tax title is unclear.
We will provide an update next week.