U.S. Senators Debate Alternative Energy Tax Breaks

Reuters, by Tom Doggett, January 28, 2009

The Senate Finance Committee on Tuesday began debating some $31 billion in tax credits and financial incentives to boost alternative energy supplies and promote energy-savings steps as part of the Obama administration's much bigger U.S. economic recovery plan. The Senate tax package includes most of the $20 billion in energy tax breaks cleared last week by the House Ways and Means Committee, but the Senate measure adds more incentives to help alternative energy companies. Both the Senate and House bills would extend by three years, to the end of 2012, the date that wind facilities would have to be in place to be eligible for the federal renewable energy production tax credit. Other qualifying facilities that generate electricity from renewable energy sources, such as biomass, geothermal, small irrigation, hydropower, landfill gas and ocean currents, would also have an extra three years through the end of 2013 to be in service to get the same production tax credit. Both the Senate and House plans would allow such facilities in place in 2009 and 2010 to temporarily claim a 30 percent investment tax credit instead of the production tax credit that is normally paid out over 10 years. The Senate measure would do more than the House to help alternative energy companies by allowing them to carryback their business credits from 2008 and 2009 for five years instead of just one year as present law allows to offset their next income taxes. The tax break would cost $11 billion over 10 years.

Full article:  http://planetark.org/wen/51366