Congress has renewed legislation that allows bonus depreciation, a 50-percent write-off for new equipment purchases, and also granted a two-week extension of tax credits for wind energy, disappointing wind energy advocates who had sought a multiyear extension.
The bonus depreciation renewal simply extends 2013 provisions through 2014, meaning it can apply to equipment purchased before the end of this year.
The tax credit extension only covers projects that started constrution in 2014, or that start before Dec. 31, 2014, according to the Palm Springs Desert Sun. The Production Tax Credit is a federal incentive for renewable energy facilities, covering firms that generate electricity from wind, geothermal and bioenergy. The incentive rate is 2.3-cents per kWh for the initial 10 years of the facility's operation.