Washington – Congressman Roscoe G. Bartlett, joined by 34 House colleagues, today introduced a bipartisan companion to S. 2821, the bipartisan Clean Energy Tax Stimulus Act of 2008.
S. 2821 was introduced by Senators Maria Cantwell (D-WA) and John Ensign (R-NV) and has 43 cosponsors. S. 2821 was included as an amendment to The Foreclosure Prevention Act of 2008 which was approved by a vote of 88-8. House leaders stripped that provision from the bill when it was considered in the House.
“In one of his columns last week, New Times’ Thomas Friedman decried the stalemate that has so far prevented the extension of renewable energy tax credits that would otherwise expire this year,” noted Congressman Bartlett.
“That was the impetus behind this effort to get things moving on the House side. The Senate has led on this issue with a bipartisan bill and an overwhelming bipartisan vote in support of extending these important incentives for clean, domestic renewable energy production. I hope the House will agree to quickly follow suit. I am glad to be so quickly joined in this bipartisan effort with 34 colleagues.”
The Clean Energy Tax Stimulus Act of 2008 would provide for the limited continuation of clean energy production incentives and incentives to improve energy efficiency that would otherwise lapse under current tax law.
The continuation will prevent a downturn in clean and renewable energy sectors, create jobs, save people and businesses money, and over time reduce energy costs. It is estimated that consumers could save up to $500 on their taxes if they install energy efficient products in their homes that can also help them reduce their heating and cooling costs by 20 percent.
Specifically, the bill would extend critical tax incentives such as, the production tax credit for electricity produced from renewable sources like wind, biomass, hydropower, and geothermal; and the 30 percent investment credit for businesses that install solar or fuel cell equipment.
In addition, it extends a set of effective energy efficiency programs that give homeowners tax credits for installing energy efficient furnaces, windows and insulation to make their homes more efficient; that enable builders a tax deduction for going the extra mile and building more energy efficient new homes; that help businesses make energy efficient improvements to commercial buildings; and that encourage appliance manufacturers to produce the next generation of energy saving appliances.
List of original cosponsors: (See original at Rep. Bartlett website)
Background
Dumb as We Wanna Be
Thomas L. Friedman, New York Times
… here’s what’s scary: our problem is so much worse than you think. We have no energy strategy. If you are going to use tax policy to shape energy strategy then you want to raise taxes on the things you want to discourage – gasoline consumption and gas-guzzling cars – and you want to lower taxes on the things you want to encourage – new, renewable energy technologies. We are doing just the opposite.
Are you sitting down?
Few Americans know it, but for almost a year now, Congress has been bickering over whether and how to renew the investment tax credit to stimulate investment in solar energy and the production tax credit to encourage investment in wind energy. The bickering has been so poisonous that when Congress passed the 2007 energy bill last December, it failed to extend any stimulus for wind and solar energy production. Oil and gas kept all their credits, but those for wind and solar have been left to expire this December. I am not making this up. At a time when we should be throwing everything into clean power innovation, we are squabbling over pennies.
These credits are critical because they ensure that if oil prices slip back down again – which often happens – investments in wind and solar would still be profitable. That’s how you launch a new energy technology and help it achieve scale, so it can compete without subsidies.
The Democrats wanted the wind and solar credits to be paid for by taking away tax credits from the oil industry. President Bush said he would veto that. Neither side would back down, and Mr. Bush – showing not one iota of leadership – refused to get all the adults together in a room and work out a compromise. Stalemate. Meanwhile, Germany has a 20-year solar incentive program; Japan 12 years. Ours, at best, run two years.
“It’s a disaster,” says Michael Polsky, founder of Invenergy, one of the biggest wind-power developers in America. “Wind is a very capital-intensive industry, and financial institutions are not ready to take ‘Congressional risk.’ They say if you don’t get the [production tax credit] we will not lend you the money to buy more turbines and build projects.”
… the biggest energy crisis we have in our country today is the energy to be serious – the energy to do big things in a sustained, focused and intelligent way. We are in the midst of a national political brownout.
(30 April 2008)
Big Oil’s Friends in the Senate
Editorial, New York Times
Listen to almost any politician, President Bush included, and you’ll hear that the fight against global warming cannot be won without cleaner technologies that will ease dependence on fossil fuels. Yet these same politicians are on the verge of allowing modest but vital tax credits to expire that are crucial to the future of renewable energy sources like wind and solar power.
These credits are necessary to attract new investment in renewable sources until they become competitive with cheaper, dirtier fuels like coal. When the credits disappear, investments shrivel. The production tax credit for wind energy has been allowed to expire three times. In each case, new investment dropped by more than 70 percent. The credits for wind and solar expire at the end of this year, so action now is important.
(5 May 2008)
Arizona’s solar aspirations in peril
Faye Bowers, Christian Science Monitor
… fledgling efforts to turn Arizona into the solar capital of the world depend on making the initial investment in new energy plants affordable – something that could become much more difficult, perhaps even impossible, if a federal tax credit for solar projects expires at the end of the year as scheduled.
… plans for a project that could put Arizona on the map as a solar powerhouse – a huge $1 billion solar energy plant to be built near Gila Bend, Ariz., by 2011 – are likely to be scrapped if the tax credit is allowed to lapse. That’s because solar power is still more expensive to produce than is electricity derived from fossil fuel, though some experts expect the gap to close in the next seven to 10 years.
The subsidy in question is the federal Investment Tax Credit.
(6 May 2008)
Summary of S. 2821, the Clean Energy Tax Stimulus Act of 2008
U.S. Senate via The Oil Drum
S. 2821 SUMMARY [as of]:
4/3/2008–Introduced.
Clean Energy Tax Stimulus Act of 2008 – Amends the Internal Revenue Code to extend certain tax incentives for energy production and conservation.
Extends through 2009 the tax credit for the production of electricity from renewable resources (e.g., biomass, geothermal energy, landfill gas, and trash combustion). Includes marine and hydrokinetic renewable energy as a renewable resource eligible for such credit. Allows sales of electricity produced from renewable resources to regulated public utilities.
Extends the energy investment tax credits for solar energy (through 2016) and for fuel cell and microturbine property (through 2017). Repeals the dollar per kilowatt limitation for fuel cell property under the energy investment tax credit. Allows public electric utilities to qualify for such credit.
Extends through 2009 the tax credit for residential energy efficient property expenditures. Repeals the $2,000 limitation on the tax credit for solar electric property. Allows an offset against the alternative minimum tax (AMT) of tax credit amounts.
Extends through 2009 the tax credit for investment in clean renewable energy bonds. Increases the national limitation amount for such bonds.
Extends through 2009 deferral provisions relating to the recognition of gain by certain electric utilities.
Extends through 2009 the tax credit for nonbusiness energy property. Includes residential biomass fuel stoves (pellet stoves) as eligible energy property for purposes of such credit.
Extends through 2010 the tax credit for energy efficient new homes.
Extends through 2009 the tax deduction for energy efficient commercial buildings and increases the allowable amount of such deduction.
Extends the tax credit for energy efficient appliances to include appliances produced in 2008, 2009, and 2010. Revises and updates energy efficiency standards for such appliances in accordance with the Energy Independence and Security Act of 2007.
(6 May 2008)
Original has more background and discussion from The Oil Drum.
