Friday, April 11, 2008
Clean Energy Tax Stimulus Act of 2008
The Clean Energy Tax Stimulus amendment cleared the U.S. Senate 88-8 riding piggyback on the Housing Act H.R.3221. The amendment, which contains the same text as stand-alone legislation (S.2821) introduced earlier this week by Senators Maria Cantwell (D-Wash.) and John Ensign (R-Nev.), will extend the renewable energy production tax credit for one year and the solar energy and fuel cell investment tax credit for eight years. These tax credits were set to expire on Dec 31st 2008.
In addition to extending production and solar tax credits, the amendment authorizes $400 million for Clean Renewable Energy Bonds, and extends tax credits for those who modify or build energy-efficient homes and commercial buildings. The amendment also extends credits for energy efficient appliances such as dishwashers and refrigerators. Among the technologies that benefit from the renewable energy tax credit are wind, biomass, geothermal, small irrigation power, landfill gas, trash combustion and hydropower facilities. Read the full press release from the United States Senate Committee on Energy & Natural Resources, and here's the full text of the Clean Energy Tax Stimulus Act of 2008.
The bill had 6 Democratic co-sponsors and 14 GOP co-sponsors. On Feb 27th 2008, the U.S. House of Representatives passed its own version of the bill - H.R. 5351: Renewable Energy and Energy Conservation Tax Act of 2008, which will extend and expand tax incentives for renewable electricity, energy and fuel, as well as for plug-in hybrid cars, and energy efficient homes, buildings, and appliances. President Bush has stated his opposition for the bill. This is mostly on account of the fact that the House bill $18 billion worth of tax incentives for renewable energy mainly by repealing tax breaks for the domestic oil and gas industry.
Thus, the Senate bill still faces hurdles in the House-Senate conference and maybe even from the Bush Administration. In an election year, it seems difficult that the Democrats will back off from cutting tax breaks for big oil, and even if the Senate Republicans agree to it, the President may still veto the bill. Monique Hanis, director of communications for the Solar Energy Industries Association, told Solar Industry that the measure "faces some challenges in the House" and further noted that there are "some noises from the White House as well."
Even if the bill runs into a partian deadlock, it's very likely that Congress will come up with an emergency stop-gap arrangement to entend the tax credits for a short period of 6 months to one year, and there's very little chance of the tax credits expiring.
In addition to extending production and solar tax credits, the amendment authorizes $400 million for Clean Renewable Energy Bonds, and extends tax credits for those who modify or build energy-efficient homes and commercial buildings. The amendment also extends credits for energy efficient appliances such as dishwashers and refrigerators. Among the technologies that benefit from the renewable energy tax credit are wind, biomass, geothermal, small irrigation power, landfill gas, trash combustion and hydropower facilities. Read the full press release from the United States Senate Committee on Energy & Natural Resources, and here's the full text of the Clean Energy Tax Stimulus Act of 2008.
The bill had 6 Democratic co-sponsors and 14 GOP co-sponsors. On Feb 27th 2008, the U.S. House of Representatives passed its own version of the bill - H.R. 5351: Renewable Energy and Energy Conservation Tax Act of 2008, which will extend and expand tax incentives for renewable electricity, energy and fuel, as well as for plug-in hybrid cars, and energy efficient homes, buildings, and appliances. President Bush has stated his opposition for the bill. This is mostly on account of the fact that the House bill $18 billion worth of tax incentives for renewable energy mainly by repealing tax breaks for the domestic oil and gas industry.
Thus, the Senate bill still faces hurdles in the House-Senate conference and maybe even from the Bush Administration. In an election year, it seems difficult that the Democrats will back off from cutting tax breaks for big oil, and even if the Senate Republicans agree to it, the President may still veto the bill. Monique Hanis, director of communications for the Solar Energy Industries Association, told Solar Industry that the measure "faces some challenges in the House" and further noted that there are "some noises from the White House as well."
Even if the bill runs into a partian deadlock, it's very likely that Congress will come up with an emergency stop-gap arrangement to entend the tax credits for a short period of 6 months to one year, and there's very little chance of the tax credits expiring.
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