Washington, DC – The President today signed into law a measure to renew critical tax incentives for energy efficiency and renewable energy sources like wind, solar and geothermal, U.S. Senator Dianne Feinstein (D-Calif.) announced.
A number of the energy efficiency and renewable tax incentives included in the broader legislation were modeled after bipartisan legislation previously authored by Senator Feinstein along with Senator Olympia Snowe (R-Maine) and others. These incentives were set to expire at the end of the year.
The bill signed by the President this afternoon was approved by the House of Representatives earlier today and by the Senate on October 1.
“Congress today approved, and the President has now signed into law, a measure that will help keep America’s emerging wind, solar and geothermal industries in business. This is a huge victory, and the most significant legislation approved by Congress this year to help address the climate crisis,” Senator Feinstein said. “Today marks a major milestone in America’s much-needed shift towards energy efficiency and renewable energy. And I’m very proud to have worked with my colleague Senator Olympia Snowe on this bipartisan legislation.”
Key energy efficiency tax incentive provisions:
- Provides an estimated $1.779 billion in incentives for energy efficient buildings, based upon legislation introduced by Senators Snowe and Feinstein, the Extend Act (S.822).
- Renews critical tax credits for energy efficient upgrades for existing homes, such as air conditioners and insulation.
- Extends a tax credit for energy efficient new homes up to $2,000.
- Extends for five years a landmark energy efficient commercial buildings deduction.
- Provides eight years of tax stability to the solar industry, laying the groundwork to repower California – these provisions are also based on the Snowe-Feinstein Extend Act.
- Extends the 30 percent investment tax credit for solar energy property and qualified fuel cell property through 2016 – this will provide long-term stability to the solar and fuel cell industries in California. With this provision in place, large-scale solar projects will move forward.
- Extends the credit for residential solar property for eight years through 2016, and removes the credit cap (currently $2,000) for solar electric investments.
- Extends the Renewable Production Tax Credit for wind production for one year, and for biomass and geothermal facilities for two years.
- Authorizes $800 million of new clean renewable energy bonds. This provision helps California’s public power agencies, such as Los Angeles Department of Water and Power, shift to renewable energy sources.
The cost of these renewable energy and energy efficiency tax provisions are fully offset by a repeal of a significant oil and gas subsidy.