The United States Senate voted to extend the Treasury grant program for renewable energy and several federal ethanol incentives in their tax relief bill – a move welcomed by the industry.
The Senate passed the tax relief legislation of 2010 on Wednesday, granting a one-year extension to the renewable energy provisions.
The program offers cash grants equal to 30 percent of the total property cost of a commercial solar installation. It was implemented under the 2009 Recovery Act to replace the 30 percent solar investment tax credit.
The grant scheme has so far partially funded 1,179 solar projects, including1,081 solar electric systems and 98 solar thermal systems in 42 states, generating capacity to meet the power needs of 200,000 homes.
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The program is also credited for supporting approximately $18 billion in investments and creating more than 93,000 jobs, of which about 20,000 are directly within the industries.
The tax relief bill will also extend the current 45-cent per gallon subsidy on ethanol and the secondary 54-cent per gallon tariff on imported ethanol through next year. It will continue the 22.67 cent per gallon tariff on imported ethyl tertiary-butyl ether.
Representatives of both the solar and ethanol sector lauded the bill’s approval in the Senate, saying the provisions are important in maintaining industry growth.
“An extension will help the solar industry remain one of the fastest growing industries in America and create thousands of new careers,” said Rhone Resch, president and chief executive of the umbrella group Solar Energy Industries Association.
“Extending Volumetric Ethanol Excise Tax Credit and other tax incentives would provide the breathing room necessary to fully vet all the ideas on responsible reform of ethanol tax policy, including ideas on how to accelerate commercialization of advanced and cellulosic ethanol technologies,” added Bob Dinneen, president and chief executive of the Renewable Fuels Association.
With the Senate vote, the tax relief legislation will now move forward to the House of Representatives.
