2005 Budget Includes Tax Credits for Renewables and Energy Efficiency

February 4, 2004

President Bush's proposed budget for fiscal year 2005, released on February 2nd, includes tax incentives totaling $4.1 billion through 2009 to spur the use of clean renewable energy and energy-efficient technologies. The tax incentives include credits for the purchase of hybrid and fuel-cell vehicles and residential solar heating systems. Tax credits are also included for energy produced from landfill gas and electricity produced from renewable energy sources, such as wind and biomass, and from combined heat and power systems. All of these incentives are included in energy legislation currently pending in the Congress. See the White House's summary of the proposed DOE budget.