Senator Chuck Grassley, R-Iowa, has introduced legislation to extend a key tax incentive for businesses of all sizes and key tax incentives for renewable energy. Grassley's bill extends the tax credit for the production of electricity from wind and open-loop biomass through December 31, 2016. The legislation also increases the amount of bond authority for new clean renewable energy bonds. Grassley believes any congressional or White House job creation effort should include these measures.
For all businesses, the Clean Renewable Energy Advancement Tax Extension Jobs Act of 2009, extends bonus depreciation for one year, so that businesses are able to deduct half of the value of any property placed in service in 2010. The current law expires at the end of this year. Grassley says the provision is helpful to wind energy businesses for investment in turbines and related equipment.
"Businesses need cash flow and bank loans to expand operations and hire people," Grassley said. "With the credit market so tight, the more assurances lenders have that they'll get repaid, the more willing they are to lend money to businesses."
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