October 22, 2008—The new $700 billion Emergency Economic Stabilization Act of 2008 (HR 1424) that President Bush signed into law earlier this month also extended and enhanced critical tax credits and financing relating to renewable energy and energy efficiency under the Energy Improvement and Extension Act of 2008 that was attached to it, according to a report from the US Office of Energy Efficiency and Renewable Energy (EERE).
The act extends and revives a number of energy efficiency tax incentives for buildings, creates new tax credits for efficient vehicles, and extends and modifies tax credits for biofuels. It extends energy efficiency tax deductions for commercial buildings through 2013 and increases tax credits for manufacturers of energy-efficient appliances.
The act offers numerous production tax credit (PTC) extensions and enhancements for all major renewable energy technologies, such as an eight-year extension (through 2016) for solar energy of the 30% tax credit for residential and commercial solar installations. It also creates a new 10% tax credit for certain combined heat and power systems and for geothermal heat pumps (up to $2,000). In addition, the bill provides accelerated depreciation for utilities installing smart meters and smart grid systems.
