Solar investment tax credit extended with Energy and Job Creation Tax Act of 2008

Politico's Matt Wuerker's perfect depiction of the challenges facing extension of the solar investment tax credits

"I applaud the House of Representatives for passing a long-term extension of the solar investment tax credit. This legislation secures America's clean-energy future by closing a tax loophole enjoyed by hedge-fund managers on their 'Cayman Island' income.

"For the Senate, the choice is now clear: they can either protect tax loopholes for privileged investment managers, or create tens of thousands of green-collar jobs in a troubled economy. Most Senators will find it very hard to turn their back on workers in their home state.

"As Memorial Day approaches, gas prices and utility rates are soaring, making it clear that Congress must take action to protect our country's economic and energy future. Allowing the solar tax credit to expire is an enormous tax increase that will cost thousands of American jobs and billions in economic investment. Without this bill our national energy security will continue to be jeopardized by skyrocketing fuel prices from unreliable suppliers. Now is the time to act and secure our energy future."


Background Resources:
"Economic Impacts of the Tax Credit Expiration," Study by Navigant Consulting


Text of the House Bill H.R. 6049

Summary of the House Bill H.R. 6049:

Letter from Governor Schwarzenegger to Congressional Leadership,May 13, 2008
"As Congress moves forward on legislation to extend tax credits, I must highlight three critical concerns for California. The extension of federal credits related to incentives for research and development, renewable energy and energy efficiency and a continuation of the 'patch' for the alternative minimum tax are hugely important to the health of the California economy."

"Dumb as We Wanna Be" by Thomas Friedman, New York Times, April 30:
"While all the presidential candidates were railing about lost manufacturing jobs in Ohio, no one noticed that America's premier solar company, First Solar, from Toledo, Ohio, was opening its newest factory in the former East Germany -- 540 high-paying engineering jobs -- because Germany has created a booming solar market and America has not."

See May 15 Marketplace Radio piece "Stalled Energy Policy Slows Business"

See Politico's Matt Wuerker's perfect depiction of the challenges facing extension of the solar investment tax credits. Sometimes a picture is worth a thousand megawatts.

Tags: solar energy, energy tax breaks, Energy and Job Creation Tax Act of 2008, solar investment tax credit

Get tax breaks for your efficiency in energy management

This Tax year, you can get a tax break for being energy efficient. Tax year 2006 is the first for which you can get a tax break for making your home more energy efficient.

You can take a 30 percent credit up to $2,000 for the cost of solar water heating or photovoltaic equipment in your home. You can get a 10 percent credit up to $500 for insulation and heat-reducing metal roofs, and up to $200 for energy-efficient windows. Labor costs, though, don't count.

(For more information, see IRS Form 5695. The credit is entered on line 52 on the 1040.)

This is an excerpt from an article on CNNmoney, "10 don't-miss tax breaks" which gives you much more information on other tax breaks.

Links;
10 don't-miss tax breaks

Tags: solar tax breaks, solar water heating, photovoltaic, energy-efficient windows, heat-reducing metal roofs