WASHINGTON, USA, October 2, 2008. Stop Press: Just as it seemed that US renewables tax credit legislation - in the form of extensions to the PTC and ITC - was doomed until at least after the forthcoming US election, who'd have thought it: it has only turned up in the US bailout rescue package...
On 1 October the US Senate overwhelmingly passed a modified economic rescue package - the so-called Emergency Economic Stabilization Act of 2008 - that included extra Government protection for bank customers, and a string of tax breaks for individuals, small businesses, and, crucially "financial incentives for developing alternative energy".
The Bill's final obstacle is the House, with a vote due imminently, but insiders remain optimistic that the Bill will now pass following the additions, which were written on to the Bill as sweeteners for House Republicans who voted against the plan. It now allows them to effectively change their votes but go back to conservative constituents saying they won concessions. According to Gregory Wetstone of the AWEA, "we're not dead yet, we have a huge vote ahead of us [in the House] on Friday".
Latterly part of the bill H.R. 6049 - the Energy Improvement and Extension Act of 2008 - the incentives in question extend
US$18 billion in renewable energy investment tax
credits (ITC) to residents and businesses, as well as extends the production tax credit (PTC) by an additonal year through 2009. So far, 9 attempts have been made to get the credits passed through Congress, all of which ultimately failed, which makes the latest twist even more bizarre.
The ITC would extend a 30% tax credit for businesses that build or invest in solar until 2016 . It would also eliminate the US$2,000 cap on tax credits for residents who install solar-electric systems. The PTC is an income tax credit which is allowed for the production of electricity from qualified wind energy facilities and other sources of renewable energy. It's value is currently 2 cents/kilowatt-hour (kWh) of electricity produced.
What can you do to help?
In the hours leading up to the crucial House vote, organisations such as the Solar Energy Industries Association (SEIA) are urging their members to step up the lobbying.
Further information:
According to the SEIA, if Congress passes the Bill, "440,000 permanent jobs will be supported by the US solar industry by 2016".
If you're inclined, you can plough through the latest version of the legisation.
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