Production Tax Credit - Extension

The "American Jobs Creation Act of 2004" (HR 4520), signed into law on 22 October 2004, created and extended a number of energy-related tax credits, including an expansion of the renewable energy production tax credit (see separate entry). Additionally, section 701 of the HR 4520 law placed the US Environmental Protection Agency (EPA) in charge of a demonstration programme to provide up to USD 2 billion in tax-exempt financing to green building and sustainable design projects on so-called "brownfields" abandoned industrial sites. Tax-exempt financing allows a project developer to borrow money at a lower interest rate because the buyers of the bonds will not have to pay federal income taxes on interest earned. The savings from tax-exempt financing must then be used to offset the costs of sustainable design and/or renewable energy technologies. Additionally, in June 2007, the US Senate Finance Committee authorised USD 3.6 billion from 2008-2011 for clean renewable energy bonds.

Want to know more about this policy ? Learn more