October 9, 2008

Energy tax extension, expansion could offer boost to tech economy

Mayor Chuck Reed this week thanked the U.S. House of Representatives, the U.S. Senate and the President for enacting an eight-year extension in the federal investment tax credit for both residential and commercial renewable energy installations.

With energy costs rising, he said the legislation will allow more families and businesses to afford solar. Earlier this year, he asked the solar industry to provide mechanisms for families to install solar for little or no money down. They responded to his Solar Challenge, and this legislation will allow them to continue to offer such financing programs going forward.

“This historic action comes at a critical time, providing a long-term boost to our growing clean tech economy, which will in turn create jobs in installation and manufacturing,” he said in a release.

San Jose’s Green Vision has set an ambitious goal of becoming the world center of clean-tech innovation, and renewable energy will play a critical role in developing the city’s clean tech economy. The Green Vision also has set a goal of obtaining our energy from clean, renewable sources, and this extension and expansion
On Friday, Oct. 3, by a vote of 263-171, the U.S. House of Representatives passed historic legislation that extends the 30-percent federal investment tax credit for residential and commercial solar installations for eight years. This landmark legislation is part of H.R. 1424, the Emergency Economic Stabilization Act of 2008, designed to address the U.S. financial crisis. It is the most significant federal policy ever enacted for the renewable energy industry.

President Bush then signed the bill into law. The Senate had previously passed the bill on Wednesday night.
Besides the extension, the solar tax credit provisions will:

—Eliminate the $2,000 monetary cap for residential solar electric installations, creating a true 30-percent credit;
—Eliminate the prohibition on utilities from benefiting from the credit;
—Allow Alternative Minimum Tax (AMT) filers, both businesses and families, to take the credit; and
—Authorize $800 million for clean energy bonds for renewable energy generating facilities, including solar.

For more information, visit www.sanjoseca.gov/greenvision/.