Senate Passes Sununu-Backed Renewable Energy Tax Provisions

SENATE PASSES SUNUNU-BACKED RENEWABLE ENERGY TAX PROVISIONS

Initiative approved as part of housing bill; Includes tax credit for wood pellet stoves

The United States Senate today (4/10) passed the Clean Energy Tax Stimulus Act (S. 2821) - bipartisan legislation containing a series renewable energy tax provisions - as an amendment to housing legislation that the Senate also approved on Wednesday. The amendment was adopted by a vote of 88-8. The housing bill passed by a vote of 84-12.

"Finally, the Senate has acted in a bipartisan fashion to pass renewable energy tax credits that will expand access to alternative energy and reduce dependence on energy imports. These credits will also help to ease the financial pressure that rising energy prices place on many families and businesses across New Hampshire," said Sununu. "The measure represents smart policy for the environment and makes good sense for New Hampshire's economy where our wood, biomass, and wood pellet industries provide jobs across the state. This bill will go a long way toward extending incentives for individuals, families, and businesses to use renewable energy sources."

On April 1, Sununu joined Senators Maria Cantwell (D-WA), John Ensign (R-NV) and others announced this initiative, which extends clean energy production tax credits and incentives to improve the energy efficiency of new and existing homes, businesses, and appliances.

The amendment would extend the current tax credit for the production of renewable electricity generated from solar, wind, geothermal, hydropower, biomass, landfill gas and trash combustion sources. A Sununu provision to provide a 10 percent tax credit for the purchase of energy-efficient wood pellet stoves - an initiative he advocated in earlier legislation - is also included.

Specifically, the renewable energy tax provisions that were passed as part of the housing bill would:

- Extend the 10% energy-efficient credit for existing homes through 2009. The credit can be used for purchases of energy-efficient exterior doors and windows, storm windows, metal roofs, insulation, central air conditioning and heating, and other qualified property. The provision also includes a Sununu provision, adding biomass fuel property (stoves to heat a residence or water in such a residence) as qualified energy-efficient building property.

- Extend the Renewable Electricity Production Tax Credit's (PTC) placed-in-service date through 2009 for facilities that generate electricity from wind, closed-loop biomass, open-loop biomass, geothermal energy, solar energy, small irrigation power, landfill gas, and trash combustion. Once a facility is qualified, a taxpayer may claim the credit annually over a 10-year period that commences on the facility's placed-in-service date. The provision also adds marine renewables (wave, current, tidal power, ocean thermal) as qualifying facilities.

- Extend the solar energy and fuel cell investment tax credit through 2016. The provision extends the current 30% renewable energy tax credit for business purchases of qualified solar and fuel cell property and the 10% credit for stationary microturbines.

- Extend the 30% residential energy-efficient solar property credit through 2009 for purchases of qualified solar property used to generate electricity or heat water, and fuel cell power plants. The provision fully repeals the annual residential energy-efficient solar property credit cap (currently set at $2,000).

- Extend the energy efficient new homes credit through 2010. The provision provides builders with a credit up to $2,000 for a home that reduces energy consumption by 50% when compared to the model residential code, and $1,000 for an Energy Star manufactured home.

- Extend the energy-efficient commercial buildings deduction for property placed-in-service through 2009, and increases the maximum deduction amount from the current $1.80 to $2.25 per square foot. Qualifying expenditures include those made to improve the energy efficiency of a building (through retrofitting an existing building or designing a new building), and may include interior lighting, heating, cooling, ventilation and hot water systems, and power distribution and building envelope systems.

- Extend the energy-efficient appliance credit for appliances produced in 2008, 2009, and 2010. The provision provides manufacturers with energy efficient appliance credits ranging from $45 -$250 for increased production of energy-efficient dishwashers, clothes washers, and refrigerators.

- Authorize an additional $400 million of Clean Renewable Energy Bonds and extends authority to issue such bonds through 2009.

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