EXTENDING ENERGY TAX CREDITS

States News Service

The following information was released by the office of Tennessee Rep. Zach Wamp:

Helping lead a bipartisan effort to extend clean energy production incentives, Congressman Zach Wamp and 34 of his colleagues in the U.S. House of Representatives introduced the Clean Energy Tax Stimulus Act of 2008 on Wednesday.

Our tax policy ought to encourage long term investment in new energy technologies without raising taxes, said Congressman Wamp. Extension of these tax incentives is pro-growth and pro-America. Reliable energy technology policies will lead to economic benefits for our country by creating new jobs and growing the manufacturing sector here at home while increasing revenue.

The Clean Energy Tax Stimulus Act of 2008 would extend clean energy production incentives and incentives to improve energy efficiency that would otherwise lapse under current tax law. Continuing these incentives will prevent a downturn in clean energy sectors and reduce energy costs to consumers.

Specifically, the bill would extend critical tax incentives, including 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.

This legislation also extends a set of energy efficiency programs that give homeowners tax credits for installing energy efficient furnaces, windows and insulation to make their homes more efficient, provide builders a tax deduction for building more energy efficient new homes, help businesses make energy efficient improvements to commercial buildings and encourage manufacturers to produce the next generation of energy-saving appliances.

The bipartisan Clean Energy Tax Stimulus Act of 2008 is a companion to a bipartisan Senate measure introduced by U.S. Sens. Maria Cantwell of Washington and John Ensign of Nevada. The Senate measure was included as an amendment to the Foreclosure Prevention Act of 2008, which was approved, but House leaders stripped that provision from the bill when it was considered in the House.