House Passes Energy Bill; Solar Industry Starts Calling Their Senators

[jpak]

http://www.solarbuzz.com/News/NewsNAGO346.htm

The solar industry earned a major victory yesterday when the House passed the Energy Security and Savings Act of 2007 and the Clean Renewable Energy and Conservation Tax Act of 2007 (H.R. 6) that includes a $21 billion tax package. Recent lobbying by solar industry proponents has directly resulted in the successful passage in the House of the industry’s top priority, extension and improvement of the solar investment tax credits.

The solar investment tax credit and other tax provisions in H.R. 6 are as follows:

· Provides an eight-year extension (through December 31, 2016) of the existing 30 percent Investment Tax Credit for businesses under Section 48 of the tax code.
· Removes the prohibition barring utilities from using the section 48 Investment Tax Credit.
· Provides the ability for commercial filers to claim the Investment Tax Credit against the Alternative Minimum Tax (AMT).
· Provides a six-year extension (through December 31, 2014) of the existing 30 percent Investment Tax Credit for residential solar electric and solar water heating property, and raises the cap on the credit for solar electric property to $4,000.
· Provides the ability for personal filers to claim the Investment Tax Credit against the Alternative Minimum Tax (AMT).

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“This historic bill, shifts the U.S. from 20th century energy policy to the 21st century. The $21-billion tax measure reinvests unnecessary oil and gas subsidies into carbon-free renewable technology such as solar. Now, all eyes are on the Senators who must decide if they stand with the 80 percent of Americans who want clean energy and a more secure America or if they will stick with more of the same. American voters are watching.”

Several members of Republican leadership have said that they will vigorously oppose the tax package because it increases taxes on the oil and gas industry and includes a 15 percent national Renewable Electricity Standard (RES). However, the $21 billion tax package is smaller than the roughly $32 billion tax plan Republicans successfully blocked from the broad Senate energy bill approved in June. Democratic Senators have expressed varying degrees of confidence that the bill has the 60 votes needed to pass.

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