February 6th, 2013

The state House Energy and Environmental Protection Committee on Wednesday moved out a bill that would gradually ramp down the state’s renewable energy tax credit.

The bill, which is still a work in progress in talks with the state Senate, would reduce the solar tax credit from 35 percent to 15 percent over five years. It would also remove tax credit dollar caps per system that had caused confusion and disputes among consumers, the solar industry and the state Department of Taxation.

The state Department of Business, Economic Development and Tourism would conduct a cost-benefit analysis of the tax incentive in 2017 to determine whether it should be extended.

Rep. Chris Lee, the chairman of the House Energy and Environmental Protection Committee, said he is still in talks with Sen. Mike Gabbard, the chairman of the Senate Energy and Environment Committee, over how to draft a production tax credit for utility-scale projects.

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