Nick Snow
Washington Editor
WASHINGTON, DC, Apr. 10 -- The US Senate approved an extension of renewable and alternative energy financial incentives as an amendment to a housing bill, HR 3221, by 88 to 8 votes on Apr. 10. The provision contains language identical to a bill that Sens. Maria Cantwell (D-Wash.) and John Ensign (R-Nev.) introduced earlier in the week.
The provision differs from one in HR 5351, which the House approved on Feb. 27, because it would not be paid for by denying $18 billion of tax relief to major oil companies.
Its inclusion was appropriate in a housing bill that aims to prevent excessive home foreclosures, Cantwell said following the vote. "The renewable and efficiency industries have been soaring, creating thousands of jobs and diversifying our energy supply. Newspaper headlines across the country have pointed to our country's rising unemployment and declines in the manufacturing and construction sectors," she said.
"One thing we can do to help Americans avoid foreclosure on their homes is to help them keep their jobs. By extending these tax incentives, we are not only providing certainty to these industries, infusing money into our economy, but creating high-paying, long-term jobs to help Americans get through these tough economic times," Cantwell said.
According to Ensign, the amendment would extend the place-in-service deadline through 2009 for the production tax credit that encourages electricity production from geothermal, wind, biomass, hydropower, and other renewable sources. It also would extend the solar and fuel investment tax credit for 8 years, he said.
"Today, we're hostage to skyrocketing energy prices. That's why it's so important that our bill is signed into law," Ensign said. "Without action, key incentives expire and much development toward renewable energy will slow. In some instances, it could stop. We only have a small window of time to provide the certainty needed to continue investing in, producing, and developing renewable energy," he said.
Pete V. Domenici (R-NM), ranking minority member of the Senate Energy and Natural Resources Committee, said while some members of Congress have advocated paying for a renewable energy tax credit extension with specific offsets, he believes that such taxes wouldn't be needed because the renewable energy tax credits will stimulate the economy.
"While I would prefer a longer term extension of the production tax credit, I am nevertheless pleased that the Senate was able to come together and craft this bipartisan measure," Domenici said.
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