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Congressman Higgins Introduces Green Energy Investment Zone Act |
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Legislation Provides Additional Credits for Green Manufacturers Who Locate in Struggling Communities |
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Congressman Brian Higgins (NY-27) introduced the Green Energy Investment Zone Act (H.R. 3834) a bill that would enhance renewable energy tax credits for economically distressed cities.
“Older manufacturing cities like Buffalo have the built-in infrastructure and workforce to accommodate today’s new green manufacturing companies and this bill provides an added incentive for companies to bring their business and create jobs here,” said Congressman Higgins, Co-Chair of the House Revitalizing Older Cities Task Force and a member of the Ways & Means Committee. “In addition homeowners and businesses would both benefit from an increased tax credit for those who purchase products from companies located in struggling communities.”
What the bill does:
Draws Manufacturers to Distressed Communities
- The Recovery Act created a new tax credit for manufacturers of ‘advanced energy property’ and listed selection criteria for recipients of the credit. This bill would require the Secretaries of Energy and Treasury to consider whether the project is in a Metropolitan Statistical Area High Job-Loss Zones.
Encourages Purchases from Manufacturers in Distressed Communities
- The Residential Investment Tax Credit allows individuals to claim a 30% investment tax credit for energy efficiency improvements to their home. The Residential Energy Property tax credit allows a 30% investment tax credit for residential energy property investments such as solar panels or small wind turbines. This bill would increase both of these credits 10% (and increase their respective caps to $2,000 and $750) if the manufacturer of the energy property is located in a Metropolitan Statistical Area High Job-Loss Zones.
Expands the market for Manufacturers in Distressed Communities
- The Business Investment Tax Credit provides tax credits equal to 30% of the value of the renewable energy property for solar energy, fuel cells and micro-turbines (10% for other energy property). This bill would increase these tax credits by 10% for Metropolitan Statistical Area High Job-Loss Zones.
- The Production Tax Credit provides a tax credit of 1.5 cents/KWH for electricity produced from sources like wind, solar, and geothermal. This bill increases the amount of the production tax credit by .5 cents for facilities in Metropolitan Statistical Area High Job-Loss Zones.
- The Recovery Act allows eligible facilities receiving the Production Tax Credit the flexibility to claim an investment tax credit up to 30% of the cost of their facility. This bill would increase this credit by 10% for facilities in Metropolitan Statistical Area High Job-Loss Zones.
The Brookings Institution conducted a study entitled “Revitalizing Weak Market Cities in the United States,” which identified a number of cities that are suffering from stagnant economies. The Green Energy Investment Zone Act would use the same methodology as the Brookings study to determine which cities qualify for the enhanced tax credit. The criteria that determines eligibility includes: economic conditions, residential well-being, gross product, gross product per job, employment, payroll, business establishments, per capita income, median household income, poverty rate, unemployment rate, and labor force participation rate. In New York State the cities identified by the Brookings study include Albany, Binghamton, Buffalo, Rochester, Schenectady, Syracuse, and Utica.
Congressmembers Eric Massa (NY-29), Daniel Maffei (NY-25), Chris Lee (NY-26), Maurice Hinchey (NY-22), Rush Holt (NJ-12) and Gwen Moore (WI-4) are original cosponsors of the bill.
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