Congress approves tax incentives for renewables, energy efficiency 

The federal government has enacted a host of renewable-energy and energy-efficiency tax incentives favored by SMUD and the American Public Power Association.

Congress enacted the energy tax incentives as part of its financial rescue legislation, the Emergency Economic Stabilization Act of 2008.

These tax incentives will help make renewable energy and energy efficiency more affordable for everybody while providing a boost to the solar and wind industries. 

The $17 billion energy tax incentives package includes, among other things:

• An eight-year extension of a 30-percent investment tax credit for commercial solar power projects, such as solar thermal and utility-scale photovoltaic plants; a 10-percent investment tax credit will be allowed for combined heat and power systems for the first time.
• An eight-year extension of the tax credit for residential solar systems and removal of a $2,000 cap on the credit.
• A one-year extension of the production tax credit for wind projects and a 2-year extension for other qualifying renewable facilities, including geothermal, biomass, landfill gas and  small hydropower projects; wave and tide projects will be newly eligible for the credit.
• Technical fixes and $800 million in additional bonding authority for the Clean Renewable Energy Bonds (CREB) program.
•  A new “Qualified Energy Conservation Bonds” program with $800 million in bond authority to be used by state and local governments to reduce energy consumption in government buildings, green community programs, and a variety of other projects that reduce greenhouse gas emissions.
• A two-year extension of tax credits for manufacturers of energy-efficient dishwashers, clothes washers and refrigerators.
• A five-year extension of deductions for the builders of energy-efficient commercial buildings.
• A one-year extension of tax credits for contractors who build energy-efficient new homes that achieve 30 to 50 percent reductions in energy used for heating and cooling.

Another provision establishes a new tax credit for purchasers of plug-in hybrid electric vehicles. Ranging from $2,500 to $7,500, based on the weight of the vehicle, the credit will apply until shortly after the number of qualifying vehicles sold in the U.S. reaches 250,000. More.

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