Senate Finance Committee Approves $31 Billion in Alternative Energy Tax Credits and Incentives

Tuesday evening, the US Senate Finance Committee approved $31 billion in alternative energy tax credits and financial incentives intended to help bolster the supply-end of renewable and alternative energy markets as well as support energy saving measures.

The bill includes a 30% tax credit (capped at $1500) for homeowners that make energy saving improvements to their house, and an uncapped 30% tax credit for individuals who purchase solar hot water and wind energy properties.

In addition to the $20 billion in energy tax breaks OK’d by the House Ways and Means Committee, the Senate bill has more incentives for alternative energy companies and will also help service stations with the cost of installing pumps for alternative fuels.

“These incentives would create green jobs producing the next generation of renewable energy sources — wind, solar, geothermal. And they would help to combat climate change by reducing our use of carbon-emitting fuels.” – Sen. Max Baucus

The bill extends by three years (end of 2012) the date that wind power plants have to be operational in order to be eligible for a renewable energy production tax credit. Facilities pursuing renewable energy based electrical generation (such as hydro-power, biomass, or landfill gas) also get another three years (end of 2013) to qualify.

The measure also authorizes $1.6 billion in new clean renewable energy bonds to fund alternative energy facilities using renewables, and allows states to sell $2.4 billion in conservation tax credit bonds to finance homeowners that retrofit their homes for energy efficiency.

Congress expects to work out the differences between the House and Senate stimulus bills to deliver a final version to President Obama by February 16, President’s Day.

[Via] Image: gilles chiroleu at Flickr under CC License

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