Renewable Energy and Job Creation Act Amendments Approved by the Senate

The Senate Amendments [Energy Improvement and Extension Act of 2008 and Tax Extenders and Alterntive Minimum Tax Relief Act of 2008] to H.R. 6049, the Renewable Energy and Job Creation Act of 2008 (REJCA) passed 93-2 in the Senate on Sept 16, 2008 and is now headed to a House and Senate Conference Committee for a final version to be hammered out. If an agreeable bill can then be approved by Congress, it will go to President Bush, who will probably sign it unless some objectionable provision or provisions are still in the legislation. President Bush supports the Senate Amendments but opposes the House version because of a provision to take away oil company tax benefits to fund the renewable energy package. AAEA opposes the expanded offshore drilling provisions in the House version of the bill.

REJCA will amend the Internal Revenue Code of 1986 to provide incentives for energy

production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes.

H.R. 6049 is sponsored by House Ways and Means Committee Chairman Charles Rangel (D-NY), right. The Energy Improvement and Extension Act of 2008 is sponsored by Senators Max Baucus (D-Mont.) and Charles Grassley (R-Iowa).

SUMMARY OF BILL

Highlights:

Renewable Energy Incentives
Section 101 -
Extends: (1) through 2009 the tax credit for producing electricity from qualified wind facilities; and (2) through 2011 the tax credits for producing electricity from closed and open-loop biomass, geothermal or solar energy, small irrigation power, municipal solid waste, trash combustion, and qualified hydropower.

Section 103 -
Extends through 2014 the energy tax credit for solar energy, fuel cell, and microturbine property.

Carbon Mitigation Provisions
Section 111 -
Increases to 30% the investment tax credit rate for power generation projects using integrated gasification combined cycle and other advanced coal-based generation technology projects.