Dear Speaker Ryan, Leader McConnell, Chairman Brady and Chairman Hatch:
As the House and Senate go to conference on H.R. 1, the Tax Cuts and Jobs Act of 2017, we are writing to share our views as supporters of the clean energy sector, which is a $200 billion industry in the United States, supporting more than three million American workers. Our organizations are right-of-center, non-profits that advocate for and educate the public about clean energy through market-friendly, fiscally responsible clean energy solutions that grow jobs, strengthen the economy, and preserve our environment.
First, we are pleased that the House and Senate legislation dramatically reduces the corporate tax rate and allows for 100 percent expensing. These provisions will ensure that U.S.-based firms are more competitive internationally and will fast-track domestic investment.
However, we have concerns about Base Erosion Anti-Abuse Tax (BEAT) provisions as well as the corporate Alternative Minimum Tax (AMT) and broad instability and uncertainty for businesses and investors across many sectors, including the clean energy sector.
Specifically, we applaud the House bill’s elimination of the corporate AMT. Inclusion of the corporate AMT in the Senate bill undermines the goal of simplifying the tax code. In addition, it would nullify the value of tax credits retained in other parts of the tax reform bill that are critical to innovation and economic growth, such as the research and development tax credit.
Further, we have strong concerns about the Base Erosion Anti-Abuse Tax (BEAT) provisions in the Senate bill that would add more complexity to the existing tax system and potentially subject many planned renewable energy projects to a new 100 percent tax. These provisions would undermine tax equity financing, which is the principal mechanism for monetizing credits. Its retroactive application undermines commitments made in good faith by investors and developers, and will dramatically reduce American wind and solar energy investment and job creation.
Thank you for your consideration.
American Conservation Coalition
Citizens for Responsible Energy Solutions
Conservative Alliance for Solar Energy
Conservative Energy Network
Conservatives for Clean Energy
Michigan Conservative Energy Forum
The Western Way
Young Conservatives for Energy Reform
cc: Conferees to H.R. 1