Senator Max Baucus talks to Montana electric cooperative delegation at the 2008 Legislative Conference. Photo by Luis Gomez. |
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Even as the House considers a Senate-backed plan to extend tax incentives for renewable energy, the top members of the Senate Finance Committee have unveiled a plan that shows broad, continuing support for renewable energy incentives.
Committee Chairman Max Baucus, D-Mont., and Sen. Chuck Grassley, R-Iowa, the ranking Republican, have proposed a one-year extension of several tax credits, including the Clean Renewable Energy Bonds program, which gives co-ops incentives similar to IOUs to invest in renewable power.
Their legislation was announced April 17, only about a week after the Senate added an amendment to a housing stimulus package that would provide $6.6 billion in tax credits for clean energy technologies.
Although the Senate backed that bill by an 88–8 margin, Baucus explained that the new legislation reiterates the Senate’s stance on renewable energy tax credits should the House drop them when it considers the housing stimulus bill.
“A vote of 88 to 8 might suggest that there’s smooth sailing ahead on energy tax legislation. But I’m afraid that’s not the case,” Baucus said in a floor speech.
The energy incentives are one part of the Baucus-Grassley bill, which prevents the federal alternative minimum tax from being applied to taxpayers who did not pay it last year and includes provisions that range from depreciation of motorsports entertainment facilities to employment tax breaks for victims of Hurricane Katrina.
The new version of the tax incentive legislation will be marked up in the finance committee, where Baucus and Grassley will offer ways to pay for it.
As outlined, it would add $400 million to the CREBs program, which is set to expire at the end of the year. It also extends the renewable energy production credit for one year.
Other energy-related credits in the Baucus-Grassley bill include one-year extensions of the 30 percent credit for the purchase of residential solar heating systems and the tax deduction for energy-efficient commercial buildings.
“The business provisions in this bill, from energy to research and development, will ultimately help improve our economy and provide job opportunities for Americans right here at home,” Baucus said. “These are tax cuts worth extending for all Americans.”
This article by Steven Johnson is published with permission from Electric Co-op Today.