In This Issue:

- Modify and Permanently Extend the Production Tax Credit

- Enhance and Make Permanent the Research and Experimentation Tax Credit

- Provide Carbon Dioxide Investment and Sequestration Tax Credits

- Provide Additional Tax Credits for Investment in Qualified Property Used in a Qualified Advanced Energy Manufacturing Project

- Enhance and Make Permanent the New Markets Tax Credit

- Provide New Manufacturing Communities Tax Credit

- Permanently Extend Section 179 Expensing

- Require Derivative Contracts to Be Marked to Market with Resulting Gain or Loss Treated as Ordinary Gain

- Elimination of Fossil Fuel Preferences

- Excerpt from Modify and Permanently Extend the Production Tax Credit:

Last year, Congress extended the PTC under section 45 of the Code through the end of 2014 for qualifying renewable energy facilities, such as wind, solar, biomass, geothermal, landfill gas, municipal solid waste, hydroelectric, and marine and hydrokinetic facilities. To qualify for the PTC, construction of the qualified facility must have begun before January 1, 2015.

The PTC is a credit per kilowatt-hour of electricity produced from qualified energy facilities. The base amount of the PTC (indexed annually for inflation) is 1.5 cents per kilowatt hour of electricity produced from wind, closed-loop biomass, geothermal energy and solar energy, and 0.75 cents per kilowatt hour for electricity produced in open-loop biomass, small irrigation power, landfill gas, trash, qualified hydropower, and marine and hydrokinetic renewable energy facilities. In 2014, the credit was 2.3 cents per kilowatt hour for qualified resources in the first group and 1.1 cents per kilowatt hour for qualified resources in the second group.