When Congress begins its new session in earnest later in January, construction industry officials and renewable-energy advocates want to see legislators extend key tax breaks that were allowed to expire on Dec. 31. Among them are the production tax credit (PTC) for solar, wind and other renewable-power sources. But some observers are pessimistic about prospects for such extensions any time soon.
The House and Senate are slated to take up a further continuation of one break—the payroll-tax cut, which on Dec. 23 was extended through February. Some congressional leaders say they are ready to work on a long-term fix for the payroll break early in the new session. Such a measure also could be a vehicle for extending other recently lapsed tax incentives. But it isn't clear whether the House, which is controlled by Republicans, and the Senate, where Democrats hold the majority, will be able to reach a deal on the payroll-tax provision, and even if they do, whether they will extend any other tax incentives, too.