The US renewables industry has welcomed a signal from the Treasury Department that it will examine safe harbor deadlines for the sector’s tax incentive.
The American Council on Renewable Energy said it is “encouraged” after officials said they plan to “modify” the timelines in the “near future”.
The commitment was carried in a letter from Frederick Vaughan, principle deputy assistant secretary in the Office of Legislative Affairs, to chairman of the Committee on Finance Charles Grassley.
“We are encouraged by the Treasury Department’s letter announcing its intent to modify time-sensitive safe harbor deadlines for renewable energy tax incentives,” said ACORE.
“Extending these safe harbor deadlines would be immensely helpful as the renewable sector has been hit hard these last couple of months by supply chain disruptions, shelter-in-place orders and other significant pandemic-related delays.”
The “important step” will help the renewable sector “continue as a key economic driver through this downturn”, the council added.