Despite the controversy surrounding the "bailout" of America's financial institutions, there is at least one silver lining in this legislation. Congress passed, and Bush signed into law, an eight year investment tax credit and a one year extension of the production tax credit for renewable energy. The bill also eliminated a $2K cap on the tax credit for residential installations of renewable energy technology.
The extentions of the ITC and the PTC for renewable energy come just in the nick of time, as both were due to expire at the end of this year. That had resulted in delays of projects, which had already been planned, risking additional job losses for Americans in the renewable energy fields. These tax credits, now however, work to ensure that renewable energy industries will be able to grow aggressively in the short term.
The next administration and congress will undoubtedly be even more interested in promoting renewables. T. Boone Pickens has called for a ten year production tax credit for renewables, and with the eight year investment tax credit, renewables will be well on track to becoming serious competitors to fossil fuels and nuclear energy.
The present legislation specifically includes:
An eight year investment tax credit for residential and business installations of solar, small wind and geothermal energy systems.
Elimination of the $2K cap on the investment tax credit for residential installations.
Elimination of the prohibition for utilities to obtain the investment tax credit.
$800 million is authorized for renewable energy bonds for generating facilities.
A one year extension of the production tax credit for wind and geothermal facilities.
Further information can be found here:
http://www.renewableenergyworld.com/rea/home
rate
email
print
link to this page
Comments: 3