Statements on Intorduced Bills and Joint Resolutions
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - December 07, 2006)
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By Mr. SMITH:
S. 4104. A bill to amend the Internal Revenue Code of 1986 to provide credit rate parity for all renewable resources under the electricity production credit; to the Committee on Finance.
Mr. SMITH. Mr. President, today I am introducing legislation to provide for credit rate parity under section 45 of the Internal Revenue Code for electricity from eligible renewable resources produced and sold after December 31, 2006.
Currently, certain renewable resources such as wind and closed-loop biomass receive a credit of 1.5 cents per kilowatt hour produced. For other renewables, such as open-loop biomass and incremental hydropower, the amount of the credit is reduced by half.
I have been a longtime supporter of the production tax credit. There are significant wind facilities in Oregon, where we have over 335 megawatts of installed wind capacity. These facilities provide clean energy as well as important revenues to farmers and rural counties in Eastern Oregon. My bill does not reduce the credit rate for wind but, rather, increases the rate for those renewables that are currently eligible only for the reduced credit rate.
I have also heard from those industries that receive the reduced credit rate about the disadvantage this creates for them in the marketplace. Often, when bidding to provide green power, the difference in the credit rate makes the difference in being outbid. We should provide a level playing field for all eligible renewables.
I applaud and support the current efforts to extend the existing section 45 tax credits for renewables for another year. I hope that can be accomplished before we adjourn sine die. In introducing this legislation today, I want to begin the discussion that will lead to parity for all of the important new renewable technologies that can help us meet growing demands for electricity with clean, sustainable resources. As a member of the Finance Committee, this is an issue which I will pursue next Congress, and I hope that my colleagues will join me in this effort to encourage the development of renewable energy resources.
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