January 15, 2007—President Bush approved a bill on December 20 that will extend federal tax credits for renewable energy and energy efficiency projects.
According to the US Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE), the wide-ranging Tax Relief and Health Care Act of 2006 extends the production tax credit through 2008 for electricity produced from wind power, geothermal power, biomass, landfill gas, small irrigation power, and trash combustion facilities.
According to EERE, the Act provides a similar one-year tax credit extension for new properties that produce geothermal power or make use of solar energy; for homeowners who purchase solar water heating, solar photovoltaic, or fuel cell systems; for businesses that purchase fiber-optic lighting systems, solar energy systems, or fuel cell power plants; for new energy-efficient homes; and for energy efficiency improvements to commercial buildings.
The Act also extends the Clean Renewable Energy Bonds program through 2008, and increases the total annual amount of tax-credit bonds to $1.2 billion, says EERE. It extends special tax allowances for cellulosic ethanol facilities to include plants placed in service by 2012, and it extends the research and development tax credit, which reportedly encourages businesses to invest in new innovations.
For a fact sheet on the Act, visit online.
