Key Energy-Related Tax Provisions in the 2017 Budget Proposal -

As in previous proposed budgets, President Obama’s recently released budget proposal for the 2017 fiscal year contains energy-related tax provisions that include a permanent extension of the renewable energy production tax credit (PTC) and a provision making it refundable. Making the PTC permanent and refundable signals the administration’s continued strong support for renewable energy.

The Obama administration’s budget proposal (Proposal) affects several energy-related tax provisions, many of which were also included in the revenue proposals from past years. However, there are two key differences from past proposals. Past proposals called for the permanent extension of the research and experimentation (R&E) credit and section 179 expensing. Last year, Congress made the R&E credit and section 179 expensing permanent. For more information, see McDermott’s analyses of energy tax proposals in the 2011, 2012, 2013, 2014, 2015 and 2016 proposed budgets.