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40+ organizations urge Congress to add WHP to Tax Extender Act of 2017

Jan 5, 2018

The Senate Finance Committee is considering a bill, the Tax Extender Act of 2017, that would continue the Sec. 48 investment tax credit (ITC) for certain clean energy technologies that were not included in the tax reform bill passed by Congress and signed by the President at the end of December. However, the Extender bill does not include WHP. Therefore, over 40 companies and organizations sent a letter to the Senate Finance Committee January 5 urging the Committee to include WHP in the Tax Extender Act. The letter includes the following key points:

  • The WHP fix is not a new credit, but rather a clarification necessitated by the imprecise language used to create the original ITC for CHP many years ago. The IRS has confirmed to the Heat is Power Association that only a legislative clarification will rectify the problem.
  • The WHP clarification to Sec. 48 is consistent with previous action by the Senate Finance Committee, which embraced the clarification when it reported a previous iteration of S. 1409 by voice vote in 2015.
  • The cost of the clarification is nominal. The Joint Committee on Tax estimated in 2015 that it was approximately $60 million over 10 years.
  • Inclusion of WHP in the Tax Extender Act of 2017 is critically important to an industry that seeks simple parity—and a level playing field—in the tax code.

Read the letter and see the list of signers here. If you are interested in learning more or helping get WHP added to the Sec. 48 ITC, contact Susan@HeatIsPower.org.