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10/16/08 The Financial Rescue Plan and its Sister Energy Legislation |
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By Peter Forman — New tax credits of $2500 to $7500 for plug-in electric cars and light-trucks with a cap of 250,000 vehicles.[ii] — The tax credit increases for vehicles with larger batteries: — For a 4-kilowatt (KwH) hour battery, base-line credit of $2,500 — For each additional KwH, an additional $417 will be added with a max of $7,500 — Note that the Chevrolet Volt will be powered by a 16 Kwh battery and would qualify for the maximum credit — Extension of a 30% tax credit for alternative refueling plants. Essentially, incentives for the generation of electricity for resale using alternative fuels, but which will now include electric vehicle charging stations.[iii]
Solar Power: — There have been important tax credits in place for solar installations which were set to expire this year. Congress was failing to act. Now there is an 8-year extension of this 30% tax credit for residential and commercial solar installations and an elimination of a $2,000 tax credit cap for residential solar electric installations. — The Solar Energy Industries Association (SEIA) expects it to help create more than 440,000 jobs and generate over $325 billion in private investment
Developing Clean Coal: — Provides $1.5 billion dollars in new tax credits for the creation of advanced coal-electricity projects. Money will be allocated to those projects that demonstrate the greatest potential for capturing and storing carbon emissions from coal refinement and the greatest percentage of CO2 "sequestration." Coal is America's most abundant natural resource. If it can be made "clean," it would transform our national-security and economic landscape.
Bio-fuels and More: — Operators of facilities that produce cellulosic biofuels ethanol and other cellulosic ethanol can write off 50% of their costs (in lieu of longer depreciation schedules). This will encourage investors to be more speculative and aggressive in their investment efforts. — Gives tax credit (1.9-cent per KwH [iv]) for electricity produced from renewable sources, including biomass and marine renewables (ie. waves and tides) — $800 million towards a new type of bond (CREB) that provides renewable energy producers, including facilities that generate energy from wind, biomass, geothermal, hydropower, marine renewable, and other renewable sources with 0% financing sponsored by the government
Renewable Energy in Your Home — Contractors will receive a $1,000 tax credit for building energy efficient homes meeting a 30% energy efficiency standard and $2,000 for homes meeting a 50% standard — Utilities will now be able to use accelerated depreciation for investments in "smart meters." Smart meters allow utilities to price electricity less expensively at off-peak hours. This should encourage both conservation and reduce the need for new power plants.
Summary: All in all, this legislation represents America's largest effort to date to begin to move beyond oil.
References
MoveBeyondOil.org |
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