Economic Stabilization Bill Includes Clean Energy Tax Incentives

October 8, 2008

President Bush signed into law on October 3 the $700 billion Emergency Economic Stabilization Act of 2008 (H.R. 1424), which also extended and enhanced critical tax credits and financing relating to renewable energy and energy efficiency. The Energy Improvement and Extension Act of 2008, which was attached to H.R. 1424, provides a one-year extension of the production tax credit (PTC) for wind energy, keeping the credit in effect through 2009. The bill also provides a two-year PTC extension, through 2010, for electricity produced from geothermal, biomass, and solar energy facilities, as well as trash-to-energy facilities, small hydropower facilities using irrigation water, capacity additions to existing hydropower plants, and hydropower facilities added to existing dams. In addition, the bill creates a new PTC for electricity produced by marine and hydrokinetic renewable energy systems (also called advanced water power systems) with a rated capacity of at least 150 kilowatts and placed in service by 2011. To help on the financing end, the bill authorizes $800 million in new Clean Renewable Energy Bonds for all of the above technologies.