This week, the senate has finally passed an energy bill, which includes tax credits for renewable energy. The bill has an eight year investment tax credit, and it extends the production tax credit for one year. These tax credits were due to expire at the end of this year, and failure to pass extensions of these credits has resulted in delays in renewable energy projects, along with thousands of jobs. Nonetheless, renewable energy industries have applauded passage of these credits.
Additionally, the senate bill lifts a cap of $2K tax deduction for residential solar systems, and as least part of the tax credits are paid for by a repeal of incentives, previously allocated to fossil fuel industries.
The senate bill now heads to the house, and unfortunately, may not pass there. Surprisingly, however, Bush has stated he will sign this legislation, if it makes it to his desk.
Hopefully, the next congress will extend the production tax credit for renewables for an additional ten years, as Mr. T. Boone Pickens has suggested.
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