House Passes Renewable Energy Tax Credit Bill, Future Uncertain
The U.S. House of Representatives Wednesday (Feb. 27) approved a bill that would extend tax credits for renewable energy projects while reducing breaks for petroleum production. Under the measure, the tax credit for production of electricity from renewable resources would be extended through 2011 and a credit for solar energy and fuel cell projects
through 2016.
However, according to news reports, the bill faced an uncertain future in the Senate and even if if passed there President Bush has threatened to veto it because of the increased burden it would place on oil companies.
Environmental groups, however, praised the action, particularly lauding the bill's extension of credits for several years. The Natural Resources Defense Council, in a statement following the House action, said it could help end the roller-coaster fortunes of the renewable energy industry:
"Extensions in HR 5351 for energy efficiency and renewable energy technologies are for multiple years, which is essential to developing the clean energy technology industry long term. While Congress historically extends clean energy incentives in two-year increments, many pieces within the bill are valid for up to eight years in some cases, reducing the impact of a boom-bust cycle for the technologies."
(Pictured: Solar plant near Barstow, California; DOE photo)
