The US renewables industry was celebrating yesterday after the Senate voted overwhelmingly to extend tax credits for green energy projects. However, concerns remain that the extension could still be blocked by the House of Representatives, a move that environmentalists claim would deal a major blow to the burgeoning renewables sector.
The senate voted by 88 to eight in favour of adding the renewable energy tax credits to a major housing bill.
The bi-partisan amendment, proposed by senators Maria Cantwell and John Ensign, would enable companies to continue taking a tax credit equal to 30 per cent of the cost of buying renewable energy equipment through to the end of 2016.
The Production Tax Credit (PTC) provides an incentive of two cents per kilowatt hour to facilities that produce electricity from renewable energy resources, including wind, biomass, geothermal and hydropower. However, the credit is currently scheduled to be axed at the end of this year, raising concerns that investment in renewable energy projects will fall as a result.
The vote was welcomed by renewable energy groups. Rhone Resch of the Solar Energy Industry Association (SEIA) said the proposed extension of the credits represented the "right type of economic stimulus at the right time", while Gregory Wetstone, Senior Director of Governmental & Public Affairs at the American Wind Energy Association (AWEA), said that with 116,000 jobs and $19bn in clean energy investment at risk from the looming expiration of tax credits, the Senate was to be praised for acting urgently to get the credits extended.
However, concerns remain that the extension could be blocked by the House of Representatives where leaders are reportedly concerned about the cost of the tax break, estimated to stand at $6bn over 10 years.
"I doubt that the House will accept these extensions without some corresponding offsets," said Senate Energy and Natural Resources Committee chairman Jeff Bingaman on the Senate floor. "This leaves the administration with a key role to play in developing a compromise that will be acceptable to both chambers."
Wetstone urged the house to support the extension, claiming that "every day of delay tolls a greater risk on investments in new clean energy projects and manufacturing facilities".
Experts warn billions of dollars of clean energy investment could be lost if US axes renewables tax incentives 07 Feb 2008
House of Representatives votes in favour of extending renewables tax credits, but fears remain that incentives will be allowed to lapse 22 May 2008
Firms hopeful renewable energy tax credits will be extended beyond year end 08 Apr 2008
White House says it will not veto energy bill demanding improvements in cars' fuel efficiency 14 Dec 2007Final decision on plans to extend package of green energy tax credits past the end of this year may now have to wait until the autumn 18 Jun 2008
Intelligent Energy ramps up funding for R&D and partnerships 04 Jul 2008
Focus on energy savings through fuel efficiency for homes and public and commercial buildings 04 Jul 2008
ActionAid accuses G8 of driving more people into poverty by pursing biofuels and cutting agri-aid 04 Jul 2008
More news
Businesses' new found focus on the environment may be welcome, but according to Conrad MacKerron, it is taking attention away from workers' rights issues – and the credibility of the entire green business movement could be at risk 03 Jul 2008
It may be a year old, but as Dell's Jonathan Perry explains, firms looking to get rid of their old IT kit still need to pay attention to the WEEE directive 02 Jul 2008
Telling customers about your environmental targets is all well and good but, as Paul Thomas argues, they are meaningless if you do not know how they are to be achieved 01 Jul 2008 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
