WASHINGTON – U.S. Senator Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, today joined the Senate to approve a bipartisan amendment that will extend tax credits for clean energy technologies.

 

            Domenici was an original cosponsor of the Clean Energy Tax Stimulus amendment, which was added to H.R.3221, the Housing Act, in a 88-8 vote.  The amendment, which contains the same text as stand-alone legislation (S.2821) introduced earlier this week by Senators Maria Cantwell (D-Wash.) and John Ensign (R-Nev.), will extend the renewable energy production tax credit for one year and the solar energy and fuel cell investment tax credit for eight years.

 

            “Today’s action by the Senate sends a strong signal that clean energy tax credits must be kept in place to help us meet our energy challenges.  By extending these credits, we will ensure that vital work on clean energy technologies like wind, solar and biomass will continue.  While I would prefer a longer term extension of the production tax credit, I am nevertheless pleased that the Senate was able to come together and craft this bipartisan measure,” Domenici said.

 

            While some have advocating paying for the tax credit extensions with specific offsets, Domenici reiterated his belief that it was unnecessary due to the stimulative effect of the tax credits.

 

            “As former chairman of the Senate Budget Committee, I have been committed to fiscal discipline for my entire career.  But when one takes a larger view of these energy tax credits, it becomes obvious that they stimulate the economy, create jobs, and help America become less dependent on foreign sources of oil, which in my judgment is currently the biggest strain on our economy.  The evidence of this can be seen in the stimulative effect of the tax incentives passed in EPACT 2005 when I was chairman. It is therefore unnecessary to offset the tax credits, since the end result will be a benefit to our economy and energy security,” Domenici said.

 

In addition to extending production and solar tax credits, the amendment authorizes $400 million for Clean Renewable Energy Bonds, and extends tax credits for those who modify or build energy-efficient homes and commercial buildings.  The amendment also extends credits for energy efficient appliances such as dishwashers and refrigerators.

 

Among the technologies that benefit from the renewable energy tax credit are wind, biomass, geothermal, small irrigation power, landfill gas, trash combustion and hydropower facilities.

 

Domenici supported and voted for the inclusion of clean energy tax credit extensions in the economic stimulus package earlier this year.  Ultimately, Congress passed a stimulus package which did not contain the tax credit extensions.