As part of the US federal tax compromise reached during «fiscal cliff» negotiations, CSP and other renewable energy projects will benefit from an extension of 50% bonus depreciation through the end of 2013.
As part of the US federal tax compromise reached during "fiscal cliff" negotiations, solar photovoltaic (PV), concentrating solar power (CSP) and other renewable energy projects will benefit from an extension of 50% bonus depreciation through the end of 2013.
The deal also prevented an estimated 7.6% cut to pending Section 1603 grants for PV and CSP projects until at least early March 2013. Finally, the deal extended the Research & Experimentation tax credit for renewable energy technologies.
On January 3rd, 2013 US President Barack Obama signed the deal, which revises tax rates for the very wealthiest Americans and preserves tax breaks for those making less than USD 400,000 annually.
The deal avoids automatic tax increases and spending cuts which would have otherwise been implemented. It also extended the Production Tax Credit (PTC), a key support for the US wind industry.
The deal was particularly important for developers of a number of large PV and CSP projects which qualified for the Section 1603 grant by the program’s December 31st, 2011 deadline, but which will not receive the grant until the projects meet completion criteria.
