Green Energy Sector Gets Boost From Senate

Written by Ucilia Wang

The U.S. Senate on Tuesday approved about $18 billion of renewable-energy tax credits after repeated failed attempts to do so this year.

The 93-2 vote cleared a major hurdle for extending a set of tax credits for businesses and residents investing in renewable energy, from building and operating power plants to installing small wind turbines on residential properties.

Both the Senate and the House of Representatives have tried and failed numerous times this year to extend the tax incentives, which are set to expire at the end of 2008. The two houses have mainly disagreed about how to pay for the incentives.

Solar, wind and other renewable-energy investors and executives have been anxiously waiting on Congress to extend a set of investment-tax credits that would offset 30 percent of the cost of a solar project.

Some solar companies have said they wouldn't be able to build more U.S. power plants without the investment-tax credits.

The bill will amend a House bill passed and sent to the Senate in May. In June, the Senate voted to stop the House bill, HR 6049, from advancing to the floor for a vote.

Because the Senate bill will change the House's version of the bill, it will have to be approved by the House - and soon. Both the House and the Senate will adjourn this Friday. The White House said earlier Tuesday that it would support the bill.

"We know with certainty that the extension of these credits sends out a green ripple effect: solar projects on hold can now move forward, America creates new green-collar jobs with over 214,000 in California alone, and businesses and homeowners can count on lower energy bills in a time of economic hardship," said Barry Cinnamon, CEO of Akeena Solar (AKNS Quote), in a statement.

The Senate bill would extend the investment tax credits for solar developments for eight years. Unlike the current tax-credit regulation, the bill would allow utilities to take advantage of the incentives.