One more try to extend renewable tax credits so wind, solar growth doesn't lose power

(Photo of wind turbines from Flickr and photographer Nick Atkins.)

Washington Report 2: A new effort to assure continuation of renewable energy tax credits got the green light yesterday from the House Ways and Means Committee. The proposal backs off on paying for the $16.9 billion in credits by rolling back breaks for oil and gas, instead paying for them with totally unrelated tax changes for offshore and multinational companies. The Senate had objected to a tax hit on Big Oil but the House wanted to pay as you go. So it seems this may satisfy both, which would salvage the incentives that keep renewable energy viable. The three times since 1999 that wind credits were allowed to expire, installations dropped 70%, according to the American Wind Energy Assn. The new bill extends wind production tax credits till the end of 2009, biomass and geothermal credits for 3 years, and the solar energy incentive 6 years, also doubling the solar credit cap to $4,000. The bill also provides incentives for cellulosic biofuel and renewable diesel, installation of E85 pumps, and buying plug-in cars, as well as allowing $1.4 billion for coal and gasification projects that store carbon. (Source: E&E Daily)