Sustainable Energy Investments

The U.S. House of Representatives agreed on May 21 2008 to pass the Renewable Energy and Job Creation Act of 2008 (H.R. 6049). Though support is still needed from the Senate and the Bush administration, this action by the House is reason for optimism for renewable energy investors.

It is reported that “The Renewable Energy and Job Creation Act of 2008 will provide approximately $18 billion of tax incentives for investment in renewable energy, carbon capture and sequestration demonstration projects, energy efficiency and conservation.”

The following are a few of the more important energy-related provisions included in the bill:

  • One-year extension (to Dec. 31, 2009) of the production tax credit for wind energy facilities.
  • Three-year extension (to Dec. 31, 2011) of the production tax credit for several other forms of renewable energy technology, including biomass, geothermal and waste-to-energy.
  • Six-year extension (to 2014) of the 30 percent investment tax credit for solar energy property and fuel cell property.
  • Six-year extension (to 2014) of the tax credit for residential solar property, including an increase in the annual credit cap from $2,000 to $4,000. Residential tax credits would also be modified to include small wind equipment and qualified geothermal heat pumps.
  • Authorisation of $2 billion in clean renewable energy bonds (CREBs) to finance electricity generating facilities.

The $55 billion bill also extends several tax provisions for individuals and businesses that expired at the end of 2007 or that are scheduled to expire at the end of 2008.

Please contact DG International Tax for further details on the tax implications of investing in US Renewable Energy at 

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