On Tuesday the U.S. Senate failed, yet again, to move forward with a bill that would have extended tax credits to renewable energy sectors.
The Energy Independence and Tax Relief Act of 2008 garnered only 52 of the 60 cloture votes needed to limit debate and avoid a Republican filibuster. Though the main portion of the $17.7 billion bill provided tax incentives, Republican Senators opposed a measure that would have paid for these incentives by closing a tax loop-hole for hedge fund managers.
The bill would have extended by one year a tax credit for building new wind-power projects. It also would have extended by three years similar credits for biomass, geothermal and landfill gas projects. It would have provided eight-year extensions of both the commercial and residential solar tax credits.
All of these tax incentives are set to expire at the end of 2008–the prospect of which is beginning to be felt across the renewable energy industry.
It’s critical that these incentives pass soon, even if Senate Democrats have to abandon their pay-as-you-go strategy. Democratic leaders seem unable to find a method of paying for these incentives that does not generate firm opposition from Republicans, many of whom claim to support renewable energy.
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