U.S. Congress keeps credits on hold

WASHINGTON, June 11 (UPI) -- Many are disappointed by the U.S. Congress' failure to reinstate renewable energy tax credits.

The Senate voted 50 to 44, just 10 votes short of the total needed to end debate and take a final vote on the tax credits for solar, wind, geothermal and other renewable energy producers. Renewable energy industry insiders say they fear what will happen if those credits are allowed to expire at the end of the year.

The proposed bill also would bring back the research and development tax credits that expired at the end of 2007.

A list of Silicon Valley giants support the bill, as they are investors in many renewable projects. Some of the disappointed firms include Cisco, Oracle, Intel and Microsoft, along with other corporate giants including IBM, AT&T, Boeing, General Electric, Walt Disney and Goldman Sachs, Mercury News reported.

Solar and wind industry leaders say they need at least six months of lead time for major projects, and some companies have laid off workers because of the uncertainty over 2009 commitments.

The House and Senate have passed different versions of a tax credit bill, but have not been able to agree on the need for revenue offsets to pay for the credits.