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Tax Tool Crucial to Wind, Solar Appears Spared in GOP Deal

  • Negotiators will largely spare tax credits, Thune Says
  • BEAT provision threatened value of renewable energy financing
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GOP Confident Tax Overhaul Gets Done Next Week
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A $12 billion tax-equity tool that U.S. wind and solar developers depend on to finance projects appears likely to remain largely intact as part of the sweeping reform that Republicans were negotiating Thursday.

A tentative compromise would preserve most, but likely not all, of the value of renewable energy tax credits that developers sell to JPMorgan Chase & Co., Bank of America Corp. and other large financial institutions, said Senator John Thune, the chamber’s No. 3 Republican. Those credits are threatened by a provision in the Senate bill that would impose a minimum tax on foreign transactions, reducing the need for companies to buy credits.