Tax extenders left out of spending bill

A stopgap spending bill supported by leaders in the US House of Representatives does not include the extension of tax incentives for certain alternative energy sources, potentially depriving those industries of their best chance to win a renewal of the credits this year.

The continuing resolution introduced by House Appropriations Committee chairman Hal Rogers (R-Kentucky) would keep federal government operations funded through 28 April 2017 at the same levels as fiscal year 2016.

"This legislation is just a band aid, but a critical one. It will give the next Congress the time to complete the annual appropriations process, and in the meantime, take care of immediate national funding needs," Rogers said.

While larger wind and solar projects received extensions of key federal tax credits at the end of 2015, incentives for a number of other alternative energy sources, such as distributed wind and combined heat and power, will expire at the end of the month unless Congress steps in. But credits are not part of the resolution, prompting some of the affected industries to warn of potential job losses without the extensions.

"Inaction by Congress has put the once bright future of our industry in grave jeopardy," said Doug Dougherty, president of the Geothermal Exchange Organization, which represents manufacturers and installers of geothermal heating and cooling systems.

The lack of the tax credits or any controversial policy riders appears to be an effort by congressional budget writers to clear the way for a quick vote spending measure. Thad Cochran (R-Mississippi), Rogers' counterpart in the Senate, said the new resolution would allow Congress to work with the incoming administration of president-elect Donald Trump to determine funding priorities for the next two fiscal years.

"I remain committed to passing thoughtful, fiscally-responsible bills as this process goes forward," Cochran said.

Among the provisions left out of the continuing resolution is language sought by automakers to block the US Environmental Protection Agency from moving ahead with a decision to retain fuel-economy and CO2 emissions standards that apply to model year 2022-25 cars and trucks. EPA expects the standards will increase the fuel economy of the average light-duty vehicle to 50.8 miles per USG by 2025.

But automakers, which backed the standards when they came out in 2012, have been pushed to weaken the rules to accommodate consumer preference for heavier, less efficient vehicles. EPA quashed those hopes on 30 November by proposing to retain the standards, a determination that automakers expect EPA will finalize before President Barack Obama leaves office.

The resolution includes a short-term extension of funding for health care benefits for mine workers. But the $45mn included falls well short of what some coal state lawmakers and labor unions have sought.

"The inclusion of a mere four months of spending on health care benefits for retired miners and widows is a slap in the face to all 22,000 of them who desperately need their health care next month, next year and for the rest of their lives," United Mine Workers of America International president Cecil Roberts said.

A group of senators from West Virginia, Ohio and Pennsylvania this week warned they would take steps to slow passage of other legislation until the Senate takes action to shore up retired miners' healthcare benefits and pension funds.