Congress did indeed approve the $700 billion bail out package for Wall Street on Friday, October 3 (the Senate approved the bill on October 1). Later that same day President Bush signed the bill into law.
Thankfully, from the renewable industries’ perspective the extensions for the renewable energy tax credits were included in the final package, along with other measures that had faced legislative battles similar to the plight of the renewable energy tax credits this year.
The final legislation for the renewable energy tax credits extends the credit for 8 years. The bill also extended tax credits for wind power for one year. The new legislation will modify the current credits directed at solar energy. Specifically, starting in 2009, the tax credits eliminate the $2,000 cap on solar electric installations stipulated for residents. Next year, both residents and businesses will be eligible for a 30 percent tax credit on solar photovoltaic installations.
The new credit provisions provide additional catalysts to grow the solar energy marketplace and make it easier for everyone to participate. For example, utilities will now be able to take advantage of the tax credit. Similarly businesses and residents who use the “Alternative Minimum Tax” filing system will be eligible for the solar investment tax credit. Finally, the new legislation authorizes $800 million for clean energy bonds for all types of renewable energy generation facilities, including solar.
As the Solar Energy Industry Association points out it took 7 votes in the House and 10 votes in the Senate to iron out the details of the renewable energy tax credits. On Monday, as we reported, the final prospects for the tax extensions looked bleak. Although we do not like the circumstances that led to the $700 billion bailout package, we applaud that the renewable energy tax credits made it into the final legislation.
