Financial Incentives for Energy Efficiency
<p>Yesterday, new bipartisan legistlation was introduced by Senators Jeff Bingaman (D-NM) and Olympia Snowe (R-ME). In addition to <a href="http://energy.senate.gov/public/index.cfm?FuseAction=IssueItems.View&... Efficient Vehicle Leadership Act of 2009</em>,</a> they have introduced three other bills to expand and improve energy efficiency tax incentives.
<p>The "Motor Crusher Credit" (actually entitled the <em>Motor Efficiency Rebate Program</em>) passed out of the Senate Energy Committee last Wednesday as Sec. 228 of the comprehensive energy bill the <em>American Clean Energy Leadership Act</em>. See ACEEE's <a href="/press/2009/06/senate-energy-bill-will-spur-substantial-energy-efficien">press release</a> on the bill for details and a link of our assessment of the energy efficiency impacts of the bill.<br />
With the passage of The American Recovery and Reinvestment Tax Act of 2009, Congress modified and expanded the scope of many of the energy efficiency and renewable energy tax incentives. The legislation includes several provisions relating to these incentives, most notably extending the consumer incentives through 2010 and increasing the cap on efficiency incentives from $500 to $1,500 per household. Additionally, there are several new incentives for plug-in electric vehicles.
Congress passed an economic stimulus package over the weekend that does much to promote energy efficiency. The American Recover and Reinvestment Tax Act of 2009 includes several provisions modifying and expanding the scope of the energy efficiency and renewable energy incentives. A few notable changes:
On October 3, 2008, the President signed the Economic Stabilization Act into law, extending many of the Energy Efficiency Tax Incentives first enacted in 2005 and creating several new opportunities for taxpayers, including new renewable energy incentives for small on-site wind and geothermal heat pumps among others. The bill pays for the energy efficiency provisions by restricting several oil and gas industry tax breaks, and tightening some provisions on the sale of stocks.
The energy efficiency provisions include:
On Oct. 3, 2008, the President signed into law legislation to extend many of the Energy Efficiency Tax Incentives first enacted in 2005 but that expired at the end of 2007 or that were scheduled to expire at the end of 2008. The bill also includes extensions of a variety of renewable energy tax incentives. The energy efficiency provisions include:
Congress continues to make headway on two major pieces of legislation—energy efficiency tax incentives and climate change legislation—in this election year. Action on extending the tax incentives has passed the House and is under consideration in the Senate, which makes extension legislation possible in 2008. However, the picture for passage of climate change legislation is murkier.