Construction and renewable-energy companies found much to like in a Senate Finance Committee-approved tax bill that would provide a two-year extension for incentives that expired at the end of 2013. But chances are slim that the House will pass a similar measure, industry officials say.
Liam Donovan, Associated Builders and Contractors director of legislative and political affairs, says, "Unless something changes, I don't see the House passing something that could be reconciled with the Senate bill." Tax reform, another possible "extenders" vehicle, also isn't likely to become law this year. Thus, industry's quest for extensions may continue.
The package that the Finance Committee cleared on April 3 has construction industry-backed provisions. They include extensions for a higher threshold for Section 179 capital-goods expensing; a bonus depreciation credit for equipment purchases; the 179 D deduction for energy-efficient buildings; and the production tax credit for wind-energy projects. Senate Majority Leader Harry Reid (D-Nev.) has said he wants to bring the bill, which Finance Chairman Ron Wyden (D-Ore.) sponsored, to the floor in coming weeks.
In the House, a draft tax bill that Ways and Means Committee Chairman David Camp (R-Mich.) rolled out in February would make some expiring breaks permanent, including Section 179 expensing. But it omits other extenders, such as the wind-power credit. Still, some in industry believe Congress will restore the tax breaks. "The economic effect of this is too important," says American Council on Renewable Energy President and CEO Michael Brower. He says restoring the wind-energy credit would provide certainty for project financing from Wall Street.
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