Feb 29 - Las Vegas Review - Journal
 

The House kept alive prospects for further growth among renewable energy industries in Nevada and elsewhere by passing a bill Wednesday that extends valuable tax credits set to expire at the end of the year.

The bill, which passed 236-182, would give $8 billion in tax breaks through 2011 to companies that produce new electricity from natural sources like wind, geothermal, biomass and hydropower. A 30 percent credit for investments in solar products and fuel cell technology would be in place through 2016.

It also contained financial incentives for energy efficiency, offering tax credits of $4,000 to $6,000 for families to buy plug- in hybrid cars, and a break for the purchase of power-saving home appliances.

Despite the House action, the bill faces long odds. Earlier bills were killed in the Senate by Republicans, who opposed giving tax breaks for renewables because their cost to the Treasury would be offset by taking away some tax breaks now enjoyed by oil and gas companies.

Rep. Phil English, R-Pa., called the latest bill a "placebo," and predicted it also will be killed.

Supporters of the House bill argued the tax credits are necessary to provide long-term stability for renewable energy ventures, especially in places like Nevada where investors have shown growing interest in the state's natural supplies of sunlight, wind and steam trapped in the earth.

The bill extends a credit of 1.9 cents per kilowatt hour of electricity produced through renewable sources, which could be worth thousands of dollars to $1 million or more to projects of varying sizes, industry experts say.

"These incentives will provide badly needed assistance to companies who are working hard to diversify our energy resources, improve the economy by creating new jobs and clean up the air we breathe and our environment," Rep. Shelley Berkley, D-Nev., said during debate.

The vote fell along party lines. While Berkley voted for the bill, Nevada Republican Reps. Dean Heller and Jon Porter voted against it as did all but 17 Republicans.

Porter said the bill will drive up oil and gasoline prices.

"It's nothing more than a tax increase on Nevada families," he said. "Nevadans will pay for it at the pump at a time when we need to reduce the cost of gasoline."

Heller said tax increases on domestic oil production will affect more than just gasoline prices.

"Last month, energy prices increased 1.5 percent, triggering food prices to increase by 1.7 percent," Heller said in a statement. "The lack of a long-term energy plan is forcing the cost of living to increase in this country."

Karl Gawell, executive director of the Geothermal Energy Association, said new technologies are the ones that need the incentives.

He said the geothermal industry is growing, and if Congress can pass legislation to extend the credits, it may result in a doubling of the production of energy through harnessing steam from the earth.

"That's another 3,000 megawatts of power, $11 billion in new investments, 5,600 permanent full-time jobs," he said.

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