When the House and Senate voted
at the last minute to adopt the American Taxpayer Relief Act of 2012 (ATRA),
the energy industry received a much-needed boost – certain tax credit
provisions that were slated to expire in 2012 were instead renewed for another
year.

One of these provisions is the
50% bonus depreciation originally included as part of the Economic Stimulus Act
of 2008, which has since been extended several times. Qualified properties,
including property depreciated under Modified Accelerated Cost Recovery System
(MACRS) with a recovery period of 20 years or less, can take this deduction at
the time the property is placed in service. This category includes most
renewable energy facilities. The remaining 50% is depreciated over the MACRS
schedule.

The Production Tax Credit (PTC)
for wind facilities has also been extended for another year to January 1, 2014.
The bill also tweaks and extends the PTC for other renewable technologies as
well.

Some of the other
energy-related tax credit provisions also include one year extensions for:

• Energy
  efficient existing homes and new homes
• Alternative
  fuel vehicle refueling property
• Alternative
  fuel excise
• Electric
  vehicles with two or three wheels
• Cellulosic
  biofuel production and plant property allowance
• Biodiesel
  and renewable diesel
• Energy
  efficient appliances

These tax credits and bonus
depreciation have been important measures to support investment in and growth
of the renewable and alternative energy industry.

The bill has been sent to
President Obama, who is expected to sign it.

If you have any questions or would like additional information
about ATRA, or want to learn more about renewable energy and energy efficiency
regulations and programs, please contact Craig M.Tateronis at 617 456 8153 or ctateronis@princelobel.com.

Click the following links
for final votes on the American Taxpayer Relief Act of 2012 – House
Roll Call 659 and Senate
Roll Call 251.