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U.S.
Senator Member: Finance, Agriculture, Energy, Ethics and Aging Committees |
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For Immediate
Release Tuesday, September 23, 2008 |
CONTACT:Michael Amodeo – 303-455-7600 |
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| Senate Passes Critical Tax Incentives for Renewable Energy, Delivers Tax Relief for American Families and Small Businesses WASHINGTON, DC – Today, by a vote of 93 to 2, the United States Senate passed H.R. 6049, the Tax Extenders Act, bipartisan legislation that extends and creates a wide range of tax incentives that are critical to the continued growth of the clean energy economy in Colorado and across the country. United States Senator Ken Salazar voted in favor of the measure, which in addition to creating several incentives for clean energy projects, fully funds the Payments in Lieu of Taxes (PILT) program, extends important tax benefits for individuals and small businesses, and protects millions of middle-class American families from being unfairly subjected to the Alternative Minimum Tax (AMT). “After months of working to pass this critical tax package, I am proud we have found a bipartisan way to move it through the Senate and toward the finish line. This bill will not only extend important tax relief and guarantee tax certainty for millions of American families and small businesses, but it will also create a set of new tax incentives that will help jumpstart the clean energy economy. Importantly, this bill will help open a new chapter for rural America, where the production of clean and renewable energy will create thousands of new jobs and opportunities. “With the recent developments on Wall Street and the growing economic pain that American families are feeling, this bill could not come at a better time. The provisions in this bill can help our economy get moving again by helping businesses invest in research and development, raise needed capital, and remain competitive in the global marketplace. This bill will deliver tax relief to middle-class, American families at a time when they, and our economy as whole, need it most.” As a member of the Finance Committee, Senator Salazar fought to include several provisions in the tax extenders package that will accelerate the nation’s renewable energy revolution. Senator Salazar helped include incentives for the installation of small wind systems on farms, ranches, homes, and small businesses. He authored a provision that will encourage the installation geothermal heat pumps in homes and businesses, fought to lift a cap so that consumers can receive a full 30% tax credit for the installation of solar panels, and was a champion of extensions of other key wind and solar tax incentives. A summary of H.R. 6049, the Renewable Energy and Job Creation Act of 2008, is included below: Renewable Energy and Energy Efficiency Tax Incentives The bill extends, expands, and creates several tax provisions designed to provide incentives for the production of and investment in renewable sources of energy, and to promote energy efficiency. Specifically, the bill includes:
Fully Funds PILT and Reauthorizes the Secure Rural Schools Program The bill reauthorizes the Rural Schools program through 2011 and provides full funding for the Payment in Lieu of Taxes (PILT) program through 2012. For Colorado counties with federal lands, PILT helps pay for essential services like schools, roads, and first responders. Extensions of Business and Middle-Class Tax Breaks The bill extends through 2009 several important and broadly supported tax provisions for businesses and individual taxpayers that either expired at the end of 2007 or are scheduled to expire at the end of 2008. Specifically, the bill would extend important individual tax benefits, such as:
In addition, the bill would extend important business tax benefits, such as:
The bill provides tax relief for victims of the Midwestern disasters in Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin. The proposals are applicable to floods, severe storms, and tornadoes that are declared by FEMA on or after May 20, 2008 and before August 1, 2008. The bill also provides more limited tax relief for victims of federally-declared disasters other than the Midwestern disasters and occurring after December 31, 2007 and before January 1, 2010.
The bill extends for one year the existing AMT relief for middle-class taxpayers. This provision will protect over 20 million taxpayers from being unfairly subjected to the AMT.
The bill also contains the following provisions:
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