House Committee OKs $20 Billion In Energy Tax Credits, Over $10 Billion of Which For Renewable Energy. Homeowners Also Qualify.
Today, the U.S. House Ways & Means Committee approved $20 billion in energy tax credits and related financial incentives as part of the Obama administration’s plan to revive the American economy. Can I get a w00t!?
The tax breaks benefit the wind and solar energy industries and encourage energy-efficiency improvements to existing homes. Other facilities that generate electricity from renewable sources such as biomass, hydropower, landfill gas and ocean currents also qualify for the credit. Facilities will have to be in place by 2012 to be eligible for the credit.
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Of the $20 billion, more than $13 billion of it is focused on renewable energy projects. This is mostly due to the tough time that these projects have when it comes to finding financing in current market conditions.
Homeowners can get a tax credit of up to 30-percent on upgrades for energy-efficient furnaces, hot water boilers and other energy savings improvements.
Gas stations will also qualify for tax breaks if they install pumps that dispense alternative fuels like hydrogen, natural gas and gasoline made from 85 percent ethanol.
The new tax credits would put in place the kind of long-term incentives for renewable energy that the 1 and 2-year extensions of the production and investment tax credits have not been able to accomplish.
Photo: © Orlando Florin Rosu | Dreamstime.com
About Jerry James Stone
This is not aggressive enough. Tax cuts are mild incentives to do the right thing.
I would support direct mandates to install a network of alternative energy sources. Until there is a network, no one wants to buy a vehicle they cannot fuel up. What comes first, the chicken or the egg. I say the fuel must be available first.
I am certainly not afraid of the free market capitalists. I say go for the mandating of infrastructure. Don't fool around with our future energy independence.
Hello to whom it may concern,my name is Joe.I had a solar system installed in October 2008. I started generating October 2,2008,the day before the president signed the new Solar Tax Credit.Which meant anyone placing their system in service January 1,2009 would get a 30% tax credit lifting the cap of $2,000.00 that ended December 31,2008.I was very upset with this action taking from Congress.How could they pass such a Law providing solar systems placed in service January 2009 leaving behind the ones who placed their systems in service in 2008 with only a $2,000.00 tax credit.Times are tough enough and alot of people are hurting in this huge economic down turn!If Congress would make the new Solar Tax Credit retroactive,it would help the thousands of people like me, make it through these rough times,who are trying to do good by using renewable energy resources!!! I hope someone hears our cries for better renewable tax laws!! Thank-You!! Joe Taglieri……
Jerry;
Fabulous news! Thank you for this well written article and sharing the breakdown of Obama's promise, which has become reality.
The $20 Billion in energy tax credits and $10 billion for renewable energy will produce jobs and certainly jump start our economy as President Obama's administration begins.
I'm excited too that homeowners also qualify…..
Thank you,
Sandy
Hey Jerry!
Someone at UCS sent this around. Small small world.
- Jenn
I want this new tax credit to be a reality just as much as the rest of you. However, it still must pass the Senate before it's for real. The alternative energy credits are looking like they are going to stick but the supporting Republicans want some cuts before they will vote in favor. Hopefully those cuts won't be critically needed alternative energy tax credits. The Democrats need several Republicans votes to make it so.
Joe I feel for ya man. But I'm guessing until we are out of oil this is as good as it's going to get for some time. Too bad we couldn't be like Canada. There you can put a system in, apply for the Grant, and if it goes through collect the money. Here in the US if you spend a dime on a system you can't get a grant to help pay for that dime later. The grant has to be accepted before you put the system in. Otherwise you don't get the money.
Let's keep our open for the Green Dream!
I think your efforts are appreciated.