Efforts are underway to break a longstanding stalemate in Congress and reauthorize a package of incentives for renewable energy and energy efficiency before Memorial Day. Existing incentives have helped drive the development of Texas’ wind industry, which is now the largest in the nation, and have helped Texans save money and energy while also contributing to cleaner air in our state.

Other forms of energy such as coal, oil and nuclear power have long enjoyed tax subsidies to keep prices down and spur investment. At a time when the US is considering regulating carbon emissions, gas and electricity costs are spiking for consumers and fossil fuel supplies are diminishing, Congress should invest in the development of a wide range of clean, safe, renewable energy options and encourage consumers to make smart energy choices. Prudent investment now will pay off in good jobs, clear skies and affordable, reliable energy.

Please contact Texas Senators Hutchison and Cornyn and ask them to help pass the Clean Energy Tax Incentives before Memorial Day!

Contact information for Texas Senators

Watch a Three-Minute Video on Texas' Solar Potential!

What's in the Incentive Package and Who Will Benefit?

Renewable Energy Production Tax Credit – a tax credit of 2 cents per kilowatt-hour for production of electricity from renewable sources such as the wind, geothermal and biomass. The credit expires at the end of 2008.

Investment Tax Incentives for Solar and Fuel Cell Technologies – a tax credit for 30 percent of the cost of residential solar and fuel cell systems up to certain amounts depending on the technology and a tax credit for 30 percent of the cost of commercial solar and fuel cell systems. These incentives expire at the end of 2008, and need to be extended for eight years on the commercial side, and at least one year on the residential side with the $2000 cap removed. A similar credit should be provided for small wind systems (100 kW or less) used to power individual homes and businesses.

Energy Efficient Commercial Buildings Tax Deduction – a tax deduction of $1.80 per square foot for buildings that reduce energy consumption by 50 percent compared to a national model energy building code. The deduction expires at the end of 2008. Certain changes need to be made to the deduction such as increasing the amount to $2.25.

Manufacturer Tax Incentives for Efficient Appliances – tax incentives of various amounts to manufacturers for the production of high efficiency appliances. This credit expired at the end of 2007.

Clean Renewable Energy Bonds – bonds that provide financing for renewable energy projects developed by public power providers and electric cooperatives. $2 billion in bonds should be authorized, along with key technical modifications to the program, such as reforming the allocation methodology and definition for public power utilities.

Energy Efficient New Home Tax Credit – an income tax credit of $2,000 for new homes that are at least 50 percent more efficient than required by the residential model energy code and the same amount of credit for new manufactured homes that are at least 30 percent more efficient than required by the model code. The credit expires at the end of 2008. The credit needs to be modified so that rental homes can qualify for the incentive.

Energy Efficiency Upgrades to Existing Homes – a tax credit of up to $500 per taxpayer for energy efficiency retrofits to existing buildings and the purchase of efficient heating and cooling equipment. The tax credit expired at the end of 2007. A few changes need to be made to the tax credit such as adding certain equipment that are eligible to obtain the incentive.

In 2005, as part of the Energy Policy Act of 2005, Congress put in place a package of new tax incentives and tax credit extensions to help create jobs, bring down the cost of installing renewable energy systems, manufacturing and purchasing energy efficient products and technologies. Many of these tax incentives that offer citizens and companies partnership dollars to invest in our clean energy future are set to expire in December, 2008. If they expire, over 116,000 jobs in the wind and solar industries alone are placed at risk in 2009, and more than $19 billion in clean energy investments may be diverted to other nations with more stable investing climates.

Different legislative efforts have been put forth in the House and the Senate for the past year with no success. Efforts are currently underway again and it’s time to reach out to our Members of Congress to let them know we are fundamentally running out of time.