Silicon Valley Wants Congress to Extend Clean Energy Credits

Date: May 16, 2008

Source: News Room

Clean energy and tech executives are leaning on Congress to end deadlock and approve a series of tax credits essential to the solar and wind industries that are also a growing segment of the Silicon Valley economy. In a letter to congressional leaders, the Silicon Valley Leadership Group, TechNet, the National Venture Capital Association and trade groups for wind and solar warned that the loss of tax credits would jeopardize $19 billion in clean-tech investment and 116,000 jobs nationwide. The House and Senate have disagreed over how to pay for a package of extended tax credits, including an $8.8 billion-a-year research and development tax credit that expired at the end of 2007. A House measure to shift tax breaks from oil and gas to renewables failed in the Senate after fierce opposition from oil companies. Recently, the House Ways and Means Committee put together a new plan, paid for with relatively non-controversial methods, including curtailing a deferred compensation technique used by hedge funds. Their plan would extend the investment tax credit for solar energy for six years, and the production energy tax credit for wind for one year. The tax credit for using energy derived from biomass, geothermal, hydropower, landfill gas and solid waste would be extended three years. Uncertainty over the credits is said to be delaying large-scale projects.

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