The U.S. Senate is scheduled to vote next week on legislation that would extend tax breaks for renewable energy production and energy-efficiency measures. Negotiators finalized the extensive tax legislation to continue investment credits for solar, wind, and geothermal energy. It also creates a new tax credit for buyers of plug-in hybrid vehicles. “This compromise will enable us to become a more energy-efficient nation and wean us off our dependence on fossil fuels,” said Senate Energy Committee Chairman Jeff Bingaman (Democrat from New Mexico). Under the bill, the tax credit for producing electricity from wind would be extended for one year, and the credit for other renewable sources, such as wave and ocean-tide projects that generate electricity, would be extended for two years. Business would receive a 30 percent tax credit for eight more years for investing in solar equipment at residences. Homeowners could claim a tax credit of up to 10 percent of the costs of all qualified energy-efficiency improvements, such as insulation, replacement windows, water heater, and heating and cooling equipment. To reduce demand for petroleum, the legislation creates a tax credit for plug-in electric cars.
