Bill offers renewable energy incentives to consumer-owned systems
Washington (Platts)--2May2005
A bipartisan bill offered by Senate Finance Committee Chairman Charles Grassley (Republican-Iowa) would give consumer-owned electric power systems financial incentives to use renewable energy sources. The Clean Energy Bonds Act, or S 962, would enable electric cooperatives and other not-for-profit electricity systems to issue interest-free bonds with the federal government paying a tax credit to the bondholder. The federal tax credit will enable the bondholder to reduce the taxes it must pay on the bond. "Clean energy bonds can provide electric cooperatives and public power systems with an incentive comparable to the production tax credits that are available to the private sector," said Grassley, whose bill was cosponsored by eight other senators from both parties. Last year, Congress passed legislation to give investor-owned utilities tax incentives for renewable generation ranging from solar, geothermal to open-loop biomass. Grassley said he is hopeful his bill will become part of a bipartisan energy package the Senate is drafting. American Public Power Assn has thrown its support behind the Grassley bill as a means to provide consumer-owned systems renewable energy tax breaks similar to those given to IOUs. This story was originally published in Platts Electricity Alert http://www.electricityalert.platts.com
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