U.S. House passes renewable energy bill increasing solar tax credits

The U.S. House of Representatives has voted in favor of the energy tax package in today's rare Saturday session providing strong incentives for solar power.

Two bills passed in today's session, H.R. 2776 and H.R. 3221, both strongly supported by the SEIA and other solar industry stakeholders. The package provides additional long-term support for solar power through the extension and increase of the solar Investment Tax Credit.

H.R. 2776 contains the following solar provisions:

- Provides an eight-year extension of the existing 30 percent Investment Tax Credit for businesses under Section 48 of the tax code
- Provides the ability for corporate and personal filers to claim the Investment Tax Credit against the Alternative Minimum Tax (AMT)
- Removes the prohibition barring utilities from using the section 48 Investment Tax Credit
- Provides no extension of the existing 30 percent Investment Tax Credit for homeowners under Section 25 of the tax code, but eliminates the existing $2,000 maximum dollar limitation
- Provides up to $2.4 billion in bonding authority for the issuance of Clean Renewable Energy Bonds

If this energy package ultimately becomes law, these incentives will provide much needed support for the solar industry and will help to make solar power available to more homeowners and businesses across the country. The energy package must first be reconciled with the Senate version, and then be signed into law by the President.

For more information about both bills, click on the House website -http://majoritywhip.house.gov/whip_pack/.