The Investment Tax Credit is Back on Table
According to a research note issued by Credit Suisse, the ITC or Investment Tax Credit, which will sunset at the end of 2016, may not see that sunset yet. The note mentions a building momentum in Congress for it to be added to tax extenders legislation at the same time as the world meets to discuss Climate Change in Paris this week. It certainly would look good for the US to take such action at this time and show that they will put their money where there mouths are.
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There are other ways the ITC could be saved as well. GTM analyst Cory Honeyman said there was more than one shape for an extension to take.
“It’s my understanding that there is opportunity for an extension to the ITC in a formal, comprehensive tax extenders bill, and opportunities to put the commence construction rule in an omnibus spending bill sometime in 2016.
“There could be one-off legislation that extends the ITC on its own but that’s a harder process as opposed to being bundled with other tax extenders. There are definatly a number of periods of time until the end of 2016 and a few different mechanisms that could extend it in some kind of fashion,” said Honeyman.