U.S. Senate approves tax credit extension

WASHINGTON, April 11 (UPI) -- The U.S. Senate's decision to renew tax credits for some renewables was applauded.

The Senate approved the Cantwell-Ensign amendment to the Housing Stimulus Bill which provides a one year extension of the renewable energy Production Tax Credit. Investment in fuel cells and wind energy are largely incentivized by the tax credit which was set to expire Dec. 31, 2008.

The U.S. Fuel Cell Council said it was grateful to the Senate and urged Congressional leaders in both chambers and the President to agree on final language as quickly as possible.

Uncertainty of credits beyond previous deadlines has halted projects, industry officials claim, and failure to pass a comprehensive extension could essentially reverse the progress in research and industry.

The tax credit was first included in the Energy Policy Act of 2005. Under the Cantwell-Ensign legislation businesses and home-owners will be able to deduct from their tax liability 30 percent of the cost of installing a fuel cell through 2017.

The American Wind Energy Association also released a statement by Senior Director of Governmental & Public Affairs Gregory Wetstone, similar to the U.S. Fuel Cell Council's.

With 116,000 jobs and $19 billion in clean energy investment at risk, Wetstone said, the Senate has recognized the urgency of taking timely action to extend these incentives.