Congress Extends Renewable Energy Tax Credits Valuable to the Industry

One of the items included in the "Emergency Economic Stabilization Act of 2008" recently signed into law was a package of tax credits for renewable energy production. Tax credits for wind energy production were extended for one year until the end of 2009, and other renewable energy tax credits were extended for a two year period. These credits are extremely valuable to the industry and help support commercialization of new technologies and lower costs for consumers.

The Dallas Regional Chamber's Sustainable Technologies Committee received a briefing on these tax credits in its November 18th meeting by Todd Wallace, Partner, Jones Day. According to Wallace, new credits included tax breaks for "qualifying facilities that add carbon capture equipment," tidal power production tax credits and others. Wallace highlighted the need for Congress to pass long-term tax credits that would provide more reliability to this emerging market.

Short-term tax credits "cramp the market," said Wallace. For example, without reliable long-term tax credits, banks may not lend to wind turbine manufacturers, and manufacturers may in turn slow production on turbines, as they cannot be certain whether the wind farm buyers will still be in operation in future years given the infancy of the industry. Long-term tax credits stimulate the renewable energy marketplace by providing stability. For more information about the tax credits in the legislation, click here.

The Dallas Regional Chamber's Sustainable Technologies Committee is working to promote and facilitate the synergistic growth of industries in the DFW region that focus on developing and providing sustainable technologies and services.

The Dallas Regional Chamber's Technology Business Council supports continued tax credits for R&D funding and energy efficient technologies. These tax credits help support commercialization and business development for Dallas/Fort Worth technology, life science and renewable energy companies, spurring economic development and creating new jobs for the region. For more information on the Sustainable Technologies Committee, please contact Jane Edson jedson@dallaschamber.org or 214-712-1937.