Any tax legislation worth the name carries with it a host of hangers on that represent special gifts to special interests, and the American Taxpayer Relief Act of 2012 is no different. In addition to the tax changes we all know about, a number of extensions to existing legislation also made it into the final bill. Here is a rundown of the favors granted to the green energy business.
The production tax credit of $0.022 per kilowatt-hour was extended for another year and the language of the law was changed to allow solar projects under construction by the end of 2013 to qualify for the 10-year tax credit. This is expected to cost taxpayers $12.1 billion over the 10-year period.
The $1.01 per gallon production tax credit for cellulosic biofuel was extended through 2013 and now includes algae-based fuels within the definition. The credit is expected to…
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