Anti-double dipping rules for federal tax incentives
- Law Office of Edwin T.C. Ing, Washington, DC (United States)
Political as well as technological changes are now reshaping the electric utility industry. While accommodating these changes, state legislative and regulatory agencies have the opportunity to promote public policies. In this regard, various state entities are evaluating appropriate incentives for renewable energy development so as to introduce greater competition in electric generation. For example, the California legislature is considering a supplemental production payment and the State of Iowa has instituted a low-interest loan program for wind and other alternative energy generation. By complementing the existing federal tax incentives, state incentives can spur the wind industry`s growth. If structured in the wrong way, however, state assistance programs will undercut the value of the federal tax incentives. The federal anti-double dipping rules apply to certain state programs. If a developer utilizes the wrong type of state assistance for a wind project, the anti-double dipping rules will reduce the federal tax incentives and this in turn will decrease the project`s profitability. Rather than suffer these results, very few if any developer will use the state program. Despite the time and effort a state may expend to enact a program for alternative energy development, the state assistance will be ineffectual. This paper reviews the counterproductive results which state assistance can have on a wind project because of the federal anti-double dipping rules.
- Research Organization:
- American Wind Energy Association, Washington, DC (United States)
- OSTI ID:
- 570055
- Report Number(s):
- CONF-970608-PROC.; ON: DE98001975; TRN: 98:001071-0029
- Resource Relation:
- Conference: WindPower `97: annual conference and exhibition of the American Wind Energy Association (AWEA), Austin, TX (United States), 15-18 Jun 1997; Other Information: PBD: [1997]; Related Information: Is Part Of Proceedings: American Wind Energy Association; PB: 636 p.
- Country of Publication:
- United States
- Language:
- English
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