The solar and wind industry in the US has been thrown into uncertainty. Saturday night, a small majority of the Senate adopted a tax reform, which introduces several elements that could fundamentally risk eroding investments in renewables. Even though the proposal does not directly wind down the PTC scheme and Safe Harbor provision, as does the proposal from the House of Representatives.
The risks in the close-to 500-page bill have been popping up over the past week. First, there was a proposal intended to prevent companies from participating in tax speculation, the BEAT provision, which will make it tougher for authorities to deliver the tax credits which are the essence of the US renewables regime. Since then, there was the addition of a minimum tax, AMT, which would also have the same effect.