Senate Vote Supports Clean, Renewable Energy Tax Package
congresswatch | Energy
Thank You Senators Max Baucus and Jon Tester!
The U.S. Senate voted on April 10th by an overwhelming 84 to 12 margin to attach short-term extensions of critical clean energy tax incentives set to expire at the end of this year.
The Renewable Energy and Energy Conservation Tax Act of 2007 (H.R. 3221 amended) includes the "Production Tax Credit", which fosters wind power and the "Investment Tax Credit", which enhances production for solar energy and other incentives for energy efficient appliances.
These incentives for clean, renewable energy were attached to a major federal housing assistance bill, H.R. 3221 (New Direction for Energy Independence, National Security, and Consumer Protection Act).
Senator Max Baucus, who chairs the Senate Finance Committee, led the way to ensure that clean energy incentives were part of the final bill, by unveiling his own package of clean energy extenders, covering some three-dozen expired or expiring tax provisions.
The Senate first voted on a renewable energy tax package in July 2007, in a bill drafted by Senator Baucus. That bill was defeated by just two votes.
According to a recent report in Grist, this recent victory marks the first time in the current Congress that the Senate has approved even short-term extensions of these clean energy incentives. It's significant because it demonstrates growing, bipartisan support for clean, renewable energy production and the urgent need to expand these solutions.
Under the Democrats' strict "pay-go" rules, which require that all new government spending is offset by budget cuts somewhere else, the "green for green energy" came from repealing approximately $13 billion in unnecessary tax breaks and other giveaways to multinational oil companies.
Despite oil companies' record-breaking profits in recent years, Senate Republicans had repeatedly blocked efforts do away with these tax breaks. While the House of Representatives had passed expansive, multi-year extensions several times over the past few months for cleaner, renewable energies, these efforts had repeatedly fallen short by one or two votes in the Senate, due in large part by intense pressure from the oil industry and lobbyists.
But it's evident that lawmakers on both sides of the aisle are realizing that clean, renewable energy not only makes sense for the environment, but also for the nation's energy independence and long term economic well being.
The just passed renewable energy legislation provides a one-year extension of the renewable energy production tax credit and an eight-year extension of the solar energy and fuel cell investment tax credit.
Those and other clean energy incentives would have otherwise expired in December 2008.
In addition to the production and solar tax credits, the amendment authorizes $400 million for Clean Renewable Energy Bonds. It extends tax credits for those who modify or build energy-efficient homes and commercial buildings, and it extends credits for energy efficient appliances such as dishwashers and refrigerators.
This legislation is a great step in the right direction for wind and solar energy production, industries that Montana are poised to lead!
Please contact Senator Max Baucus and Senator Jon Tester to thank them for their strong support of a cleaner, renewable energy future!
For More Information:
Northern Plains Resource Council http://www.northernplainsorg/
Western Organization of Resource Councils http://www.worc.org/
Montana Environmental Information Center http://www.meic.org/
League of Conservation Voters http://www.lcv.org/
Natural Resources Defense Council http://www.nrdc.org/
Sierra Club http://www.sierraclub.org/
