Key Tax Bill for Renewables Moves Closer to Vote

[jpak]

http://www.renewableenergyaccess.com/rea/news/story?id=46789

The 109th Congress is poised to pass the Tax Relief and Health Care Act of 2006, a $40 billion tax bill that will extend key tax credits for the U.S. renewable energy industries until December 31, 2008.

The comprehensive bill will extend the investment tax credit, research and development tax credit, and credits for renewable energy bonds. Although the bill only extends these credits for another year, renewable energy advocates are hailing it as a major step forward for the wind, solar, bioenergy, geothermal and hydropower industries -- and could set up Congressional action for longer term extensions next year.

"This bill is a patch, and emphasizes the importance for Congress to enact long-term, comprehensive clean energy legislation when they return in January," said Rhone Resch, President of the Solar Energy Industries Association (SEIA).

Extensions of these credits will help eliminate the boom and bust cycle seen in many of the industries. If developers are unsure about the economic feasibility of a project, it may cause the project to be stalled for long periods of time, which has a negative impact on job growth and technological advancements.

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[JohnWxy]

1. Hopefully, after Jan 1, with a new Congress they will amend this to make it multi-year.

Year to year approval is idiotic. You have to plan over longer periods than that. they ought to make it three year coverage.