SECURING AMERICA'S ENERGY INDEPENDENCE ACT
Mr. SMITH. Mr. President, I rise today to introduce the Securing America's Energy Independence Act of 2006. This bill is designed to extend the investment tax credits for fuel cells and solar energy systems in the 2005 Energy Policy Act through 2015.
Having reliable, clean energy is fundamental to economic prosperity, our national security, and protecting the environment. The Energy Policy Act of 2005 encourages homeowners and businesses to invest in solar energy and fuel cell technologies through investment tax credits. That law established a tax credit of 30 percent for investments in fuel cells, capped at $1,000, and a tax credit of 30 percent for investments in solar systems, capped at $2,000.
However, these credits will expire after 2 years, and therefore are too short lived to encourage significant market penetration or to stimulate expansion of manufacturing for solar energy or fuel cell technologies. Installations of solar energy or fuel cell systems require lead times of a year or more, and manufacturing expansion requires a development schedule of 3 to 4 years, similar to conventional powerplants. Financing of new projects is also more complex than for conventional powerplants because the lending industry is less familiar with these technologies.
Accordingly, I have proposed to extend the tax credits for an additional 8 years. My legislation also would alter the cap on residential solar credits to be based on system power, as opposed to cost, and would allow the credits to be taken against the alternative minimum tax.
As the market for fuel cell and solar technologies continues to grow overseas, long-term incentives are an essential tool to spur domestic investment and job creation. Extending these incentives for residential and business investments in fuel cell and solar energy technologies will generate quality American jobs in manufacturing, construction, and installation across the United States.
Our legislation addresses energy independence and environmental concerns, as well as job creation, with the power of American technology and ingenuity. I am pleased that Senators MENENDEZ, LIEBERMAN, SNOWE, JEFFORDS, KERRY, CANTWELL, SALAZAR, and CLINTON have joined me as original cosponsors of this legislation. In light of increasing concerns about the security and affordability of energy supplies, I urge favorable consideration of this bill.
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