Senate Extends Renewable Energy Tax Incentives Legislation recently introduced by Sens. Maria Cantwell (D-Wash.) and John Ensign (R-Nev.) that would extend expiring renewable energy tax credits for one year without offering budget offsets was attached to the housing stimulus bill approved by the U.S. Senate on April 10. Originally introduced as the Clean Energy Tax Stimulus Act of 2008 (S. 2821), the amendment was adopted in an 88-8 vote. The legislation would extend the current tax incentives for clean energy, through Dec. 31, 20009, and expand them to marine and hydrokinetic energy. It also would extend a 30 percent business tax credit for solar energy and fuel cell investment through 2016 while allowing electric utilities to claim it; and it would extend a personal tax credit for purchasers of property that use solar energy to generate electricity and heat water. The cost estimate for this package is approximately $6 billion. The lack of an offset is expected to face strong opposition in the House of Representatives, which passed its own extension package on Feb. 27.Introduced by Rep. Charles Rangel (D-N.Y.), chair of the House Committee on Ways and Means, and 36 cosponsors, the Renewable Energy and Energy Conservation Tax Act (H.R. 5351) was approved in a 236-182 vote, with 17 Republicans voting with 219 Democrats to support the measure, and eight Democrats joining 174 Republicans in opposition. H.R. 5351 includes expenditures totaling over $18.09 billion over the next decade, mainly aimed at extending renewable energy and energy efficiency tax credits that have already expired or will expire at the end of the year. Historically, Congress has extended clean energy tax incentives in two-year cycles, which has created uncertainty in the market and undermined investment. In addition to renewing and prolonging these clean energy tax credits, the bill would extend tax incentives for constructing energy-efficient buildings, investing in solar electric systems, installing efficient home heating and cooling equipment, manufacturing efficient home appliances, and retrofitting homes to save energy. The bill would achieve these goals by providing $18.18 billion in revenue raisers, most of which would arise from denying the tax code Section 199 manufacturing deduction for five major oil and gas producers. NSBA supports the extension of the renewable energy tax credits. |