Press Release

ARCURI USHERS RENEWABLE ENERGY TAX CREDITS THROUGH HOUSE

Washington, DC -- Continuing his work to build an alternative energy economy and help local families with critical tax relief, today U.S. Representative Michael A. Arcuri (D-Utica) ushered legislation to extend and expand tax incentives for renewable energy, spur business investment, and provide critical tax relief for local families through the U.S. House of Representatives.

“During these uncertain economic times, it is absolutely critical that we pass legislation to invest in jobs for today and long-term development for tomorrow, including alternative energy like wind and biomass that will reduce our nation’s dependence on foreign oil and bring the price of gas at the pump to a level families and businesses can afford,” said Arcuri on the floor of the U.S. House of Representatives, where he managed debate on the bill. “In Upstate New York, our location, natural resources, and top-notch scientific and technological community make us perfectly poised to seize this opportunity to create a new ‘green’ economy – complete with ‘green jobs.’”

Arcuri, a member of the House Committee on Rules, sponsored and introduced the Rule (H.R. 1212), allowing the House to consider The Renewable Energy and Job Creation Act (H.R. 6049), which includes $18 million in tax incentives for investments in renewable energy and energy efficiency to retain and create hundreds of thousands of green jobs. H.R. 6049 also includes $37 billion in tax cuts for American families and businesses, and closes loopholes allowing U.S. corporations and executives to avoid taxes by shipping jobs and investment overseas. 

To reduce our dependence on foreign oil and to protect the environment, this legislation extends and expands tax incentives for renewable electricity, energy and fuel from America’s heartland, as well as for plug-in hybrid cars, and energy efficient homes, buildings, and appliances. A recent study showed that allowing these renewable energy incentives to expire would lead to about 116,000 jobs being lost in the wind and solar industries through the end of 2009. 

Provisions in The Renewable Energy and Job Creation Act (H.R. 6049) to increase investment in renewable energy include:
*Six-year extension of the investment tax credit (ITC) for solar energy.
*Three-year extension of the production tax credit (PTC) for energy derived from biomass, geothermal, hydropower, landfill gas and solid waste.

*One-year extension of the PTC for energy derived from wind.
*Incentives for carbon capture and sequestration demonstration projects.
*Incentives for the production of homegrown renewable fuels, such as biodiesel and renewable diesel, and for the installation of E-85 pumps for consumers to fill up flex-fuel vehicles. 
*Tax credits of $3,000 or more toward the purchase of fuel-efficient, plug-in hybrid vehicles.
*Incentives for energy conservation in commercial buildings, residential structures, and energy efficient appliances.
*$3 billion in tax credit bonds to State and local government to make energy conservation investments in public infrastructure and invest in research.

Since taking office, Arcuri has championed legislation that will invest in alternative energy technology to bring consumer costs down and grow our domestic economy.

The historic and bipartisan Energy Independence and Security Act of 2007, signed into law at the end of last year, will increase vehicle fuel efficiency standards and help save American families $700 to $1,000 per year at the gas pump. New building, appliance and lighting efficiency standards included in the new law will save consumers $400 billion through 2030. Additionally, the law invests in new “green collar” jobs through incentives and initiatives for American produced renewable energy.

In addition to fostering renewable energy production, H.R. 6049 includes $37 billion in tax cuts for families and businesses across the country – including relief for hundreds of thousands of homeowners, teachers, families and businesses in New York.

H.R. 6049 would: 

*Extend the Research and development tax credit for 1,462 New York businesses.
*Provide up to 30 million American homeowners with property tax relief;
*Help families of 13 million children by expanding the child tax credit to those earning $8,500 a year – covering 720,295 New York children;
*Benefit  391, 715 families in New York through the State and local sales tax deduction;
*Help 326,557 New York families better afford college with the tuition deduction;
*Save 264,817 teachers in New York money with a deduction for classroom expenses; and
*Provide 22,000 American troops in combat with tax relief under the Earned Income Tax Credit.

H.R. 6049 does not add to the national deficit. The tax incentives and relief provided by the bill are offset by closing a tax loophole that allows hedge fund managers and certain corporate executives to defer taxation through offshore corporations. It would also delay implementation of a pending tax benefit for multinational companies that have shipped jobs overseas.

A copy of Arcuri’s floor speech in support of H.R. 6049 is attached below:

U.S. Rep. Michael A. Arcuri (NY-24)
In the House of Representatives
Rule for Consideration of H.R. 6049
House Resolution 1212
Opening Statement

May 21, 2008

M. Speaker, by direction of the Committee on Rules I call up House Resolution 1212 and ask for its immediate consideration. 

For the purpose of debate only, I yield the customary 30 minutes to the gentleman from Washington, Mr. Hastings.  All time yielded during consideration of the rule is for debate only.  I yield myself such time as I may consume.  I also ask unanimous consent that all Members be given five legislative days in which to revise and extend their remarks on House Resolution 1212.

M. Speaker, House Resolution 1212 provides for consideration of H.R. 6049, the Energy and Job Creation Act of 2008.  The rule provides for one hour of debate controlled by the Committee on Ways and Means and waives all points of order against consideration of the bill except clauses 9 and 10 of rule XXI.  The rule also provides one motion to recommit with or without instructions. 

M. Speaker, I rise today in strong support of this rule and H.R. 6049, the Energy and Job Creation Act of 2008, which will not only bring this country into a new alternative energy future, but strengthen our economy by directing fiscally responsible tax relief to middle class families, creating jobs at small businesses in the very towns and rural communities where we need it most.

The legislation this rule provides for consideration will extend a number of critical tax relief measures targeted at middle class families and small businesses, including: deductions for State and local sales tax, tuition and education expenses, and expanding the child tax credit and research and development tax credit.

During these uncertain economic times, it is also absolutely critical that we pass legislation to invest in jobs for today and long-term development for tomorrow, including alternative energy like wind and biomass that will reduce our nation’s dependence on foreign oil and bring the price of gas at the pump to a level families and businesses can afford. 

The best way to encourage growth and development of new technology is to let businesses invest their own money in ways that expand our economic horizons – tax credits for alternative energy production have the power to truly jumpstart our economy and create good-paying, highly-skilled jobs that can’t be sent overseas. 

In my Upstate New York district, our location, natural resources, and top-notch scientific and technological community make us perfectly poised to seize this opportunity to create a new “green” economy – complete with “green jobs.”

I have spoken numerous times throughout the debate over how to extend these renewable energy tax credits about the new businesses in my district that are utilizing the national investment in alternative energy to create good paying jobs in Upstate New York.  Those businesses are to be commended and that is why I am proud to support the nearly $20 billion in long-term clean renewable energy tax incentives and investment included in the Energy and Job Creation Act.  I hope that doing so will encourage other companies to follow suit, both in our region and across the nation.

The underlying legislation extends and modifies critical tax credits for the production of electricity from renewable sources ranging form wind, solar and geothermal energy to closed-loop and open-loop biomass.   It would also extend clean renewable energy bonds, efficient commercial buildings tax incentives, investment tax credit for solar and fuel cell systems, tax credit for energy efficiency upgrades to existing homes, tax credits for the production of efficient home appliances, and tax incentives for consumer purchase of energy efficient products.  Most of these incentives either expired at the end of last year, or are set to expire at the end of this year.  It is vitally important to sustaining the development of clean energy technology industries that these incentives are extended. 

H.R. 6049 also includes an extension of the Research and Development Tax Credit that allows companies a tax credit for a portion of their R&D expenditures.  Extending the R&D credit is vital to insuring that America remains on the cutting-edge of innovation that keeps our companies competitive.  This credit is of particular interest to the area that I represent because its extension will further the expansion of the microchip fabrication and nano-tech industries which are beginning to blossom in our region. 

American companies rely on this credit and upon its continuity to adequately plan their long term research projects.  I support this one-year extension to provide that continuity and I will continue to work with leaders on the Committee and in this body to seek a permanent extension that would eliminate concerns over expirations or lapses. 

 The bill also extends important tax credits for individuals, as well as creating new and expanded credits.  It extends for one year the personal income tax deductions for tuition and education expenses, the State and local sales taxes, and teachers’ out-of-pocket expenses for classroom supplies.  The bill creates a new standard deduction of up to $700 for couples to cover state and local property taxes, and expands eligibility for the refundable child tax credit.  Under the child tax credit, certain low-income taxpayers can claim a refundable tax credit equal to 15% of their earned income above an inflation-adjusted “threshold.”  In 2008, this threshold is set to be $12,050 – but under H.R. 6049, that threshold will be reduced to $8,500 – providing increased relief to more than 12 million families with children nationwide. 

Supporting H.R. 6049 comes down to simple common sense. We can create tens of thousands of new jobs, reduce our dependence on oil from hostile regimes, reduce greenhouse gases, spur innovation, provide tax relief to middle class families, AND we can do all – let me emphasize this – ALL of those things without adding to the national deficit.

I urge my colleagues, on both sides of the aisle, to support this rule and the underlying legislation. Thank you, I reserve the balance of my time.

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