The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Tax Credits Extended: Renewable Energy Industry Breathes Sigh of Relief

After a disastrous few weeks on Wall Street, the renewable energy industry has come out a winner. It seems there's always a silver lining in even the worst developments.

The long-awaited extension of the Production (PTC) and Investment Tax Credits (ITC) were finally passed as part of the Emergency Economic Stabilization Act of 2008 (H.R. 1424) and have now been signed into law by President Bush. The tax credit package, which is the same that passed the Senate on September 24, will extend the PTC for one year and the ITC for eight years. The extensions would be at least partially paid for by a change in the tax code for the oil and gas industry.

The bill also contains removal of the US $2,000 cap for residential solar installations. The controversial US $700 billion bailout package has been in the works in Washington since last week due the failure of several major U.S. banks and financial institutions. The bill was initially voted down in the House on Monday and was re-worked and re-introduced by the Senate on Wednesday.

Wind and solar businesses around the country are breathing a bit easier today.

“The American solar energy industry received a boost today with the passage of H.R. 1424, which included a provision to extend the tax credits for renewable energy by eight years. This legislation will enable companies like SCHOTT Solar to continue to invest in American production, American jobs, and America’s energy independence," said Mark Finocchario, president and CEO of SCHOTT Solar.

Ron Kenedi, vice president of Sharp Solar said that the tax credit extenstions will help the U.S. solar industry become a bigger part of the generation picture and bring down its costs.

"Solar is becoming a competitive energy source that can address our nation’s growing energy demands with a clean, reliable and renewable source of power. The solar industry is now scaling up to bring down manufacturing and installation costs, build its infrastructure, grow public awareness, and attract customers. The 8-year extension of the solar investment tax credit will help the solar industry flourish to its full potential," Kenedi said.

The American Wind Energy Association (AWEA) applauded the vote this afternoon.

“We salute Members of Congress in both parties who fought under difficult conditions to keep the renewable energy production tax credit and small turbine investment tax credit on the agenda until the very end, and then pushed them across the finish line," said Greg Wetstone, senior director of governmental and public affairs for AWEA. "These tax credits are essential to the continued growth of wind energy, to the economic and energy security of the United States, and to a successful beginning in the fight against global warming.”
 
Geothermal firm Raser Technologies also thanked Congress for passing the important legislation that will also benefit the geothermal industry.
 
“The extension of the production tax credits encourages aggressive growth in renewable energy development and supports our rapid deployment strategy for building a number of geothermal power plants over the next decade," said Brent Cook, Raser’s CEO.
 
Highlights of the package include:
  • An 8-year extension of the residential and business ITC for solar, small-wind and geothermal systems
  • An elimination of the US $2,000 cap on the residential ITC
  • Elimination of the prohibition on utilities from obtaining the ITC
  • Authorization of US $800 million for clean energy bonds for renewable energy generating facilities
  • A 1-year extension of the PTC for wind projects
  • A 2-year extension of the PTC for geothermal facilities
  • Creates a 2 year ITC for marine energy technologies (tidal, wave, current, ocean thermal)
Untitled Document

RELATED ARTICLES

Welspun Commissions 52-MW Solar Power Plant in India

Vince Font Leading Indian solar developer Welspun Renewables has commissioned the construction of a massive solar plant in the state of Maharashtra. The planned 52-megawatt (MW) solar plant will be located in the city of Baramati. The...

Regional News from the July/August 2015 Digital Edition of Renewable Energy World

Renewable Energy World Editors EcoFasten Solar announced that it launched a new mounting "Rock-It System" that it would be displaying during Intersolar. Product compliance was determined through testing per UL Subject 2703, which reviews integr...

SkyPower Inks $2.2 Billion Deal for Massive Solar Power Plant in Kenya

Eric Ombok, Bloomberg Kenya’s Energy Ministry and SkyPower Global Ltd. will sign a $2.2 billion agreement on Sunday that paves the way for the Canadian company to develop a 1-gigawatt solar project in East Africa’s biggest economy. The solar pro...

Making a Match: How Solar Companies and Banks Hook Up

Jennifer Runyon The announcements are fairly frequent: SunPower Partners with Admirals Bank for $200 Million Solar Loan Program, Deutsche Bank to Lend $1 Billion for Japanese Solar Projects, Financing Partnerships Drive North Carolina's So...
Former Editor at RenewableEnergyWorld.com, now Assistant Counsel at the New York State Department of Public Service, regulating New York's electricity, gas, and telecommunications industries.

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in South Africa – in partnership with GWEC, the Glob...

Wind Energy in South Africa has been expanding dramatically, growing fro...

Presenting at Infocast's Utility Scale Solar Summit 2015

Oct. 21, 2015 4:30-5:15pm Albie Fong, National Director, Solar Frontier ...

Utility Scale Solar Summit 2015

Oct. 21, 2015 4:30-5:15pm Albie Fong, National Director, Solar Frontier ...

COMPANY BLOGS

Behind Every Good Decision

When something about your business isn’t working, you set out to c...

Clean Energy Patents Maintain High Levels in First Quarter, Solar L...

U.S. patents for Clean Energy technologies from the first quarter of 201...

An Overwhelming Paradox

I’m sure we’re all very familiar with the feeling of being o...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS