US Senate Votes For Solar, Wind Tax Credits; Faces Hurdles

[jpak]

http://money.cnn.com/news/newsfeeds/articles/djf500/200804101159DOWJONESDJONLINE000914_FORTUNE5.htm

WASHINGTON -(Dow Jones)- The U.S. Senate on Thursday voted to extend tax credits for wind-power and solar-energy projects, but the measure is unlikely to become law in its current form due to concern it would add to the nation's deficit.

By 88-8, the Senate added the renewable-energy tax credits to a major housing bill. Companies such as utility XCel Energy Inc. (XEL), the largest U.S. seller of wind-generated energy, have been calling on Congress to act quickly. The tax credits expire at the end of the year, but executives are making decisions now about whether to invest in renewable projects beyond this year.

The U.S. House of Representatives has hardened its opposition to this version of the tax-credit extensions, which are estimated to cost $6 billion over 10 years. House leaders have strong objections to deficit-financed tax breaks, and with few exceptions offset lost tax revenue with tax increases or spending cuts elsewhere.

"I doubt that the House will accept these extensions without some corresponding offsets," said Senate Energy and Natural Resources Committee Chairman Jeff Bingaman, D-N.M., on the Senate floor. "This leaves the administration with a key role to play in developing a compromise that will be acceptable to both chambers."

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[jpak]

1. Senate Passes Housing Bill with PTC & ITC Extensions (details)

http://www.renewableenergyworld.com/rea/news/story?id=52144

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The bill contains provisions that would:

Extend the Renewable Electricity Production Tax Credit's (PTC) placed-in-service date through 2009 for facilities that generate electricity from wind, closed-loop biomass, open-loop biomass, geothermal energy, solar energy, small irrigation power, landfill gas, and trash combustion.

Extend the solar energy and fuel cell investment tax credit through 2016.

Extend the 30% residential energy-efficient solar property credit through 2009 for purchases of qualified solar property used to generate electricity or heat water.

Extend the 10% energy-efficient credit for existing homes through 2009.

Extend the energy efficient new homes credit through 2010.

Extend the energy-efficient commercial buildings deduction for property placed-in-service through 2009, and increases the maximum deduction amount from the current US $1.80 to $2.25 per square foot.

Extend the energy-efficient appliance credit for appliances produced in 2008, 2009, and 2010.

Authorize an additional US $400 million of Clean Renewable Energy Bonds and extends authority to issue such bonds through 2009.

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[unhappycamper]

2. Want to pay for the tax credits?

Get out of Iraq two weeks early and the $6,000,000,000 is paid in full (provided we can get someone to loan us $6,000,000,000).

[NJmaverick]

3. I can't believe this!!!

Congress has been spending money, like a drunken sailor on shore leave, and NOW all of a sudden they are worried about the debt!?!?! WTF!?!?!?! This bill is important to our national security and well being! Damn them!

[jpak]

4. I agree - penny wise and pound foolish

$150 billion for the tax rebate scam

$30 billion for Bear Stearns giveaway scam

$14 billion tax breaks for Big Oil

...but can't t give tax breaks to homeowners for solar systems...nope...nope...nope...