February 23, 2006
js-4066

TREASURY SECRETARY VISITS MEMPHIS SOLAR PANEL MANUFACTURER

MEMPHIS, TENN. – Treasury Secretary John Snow is in Memphis, Tenn. this morning, where he toured Sharp Electronics and discussed tax incentives for solar energy with company leaders.

"Solar energy is one of the many alternative energy sources that President Bush would like to see developed and used more in the coming years as we seek to reduce our dependence on foreign oil," Snow said. "It's wonderful to see the innovation and research going on here at Sharp Electronics – from here it's easy to see how much promise there is in this clean, abundant, widespread and renewable energy resource."

Snow went on to speak about the President's commitment alternative energy resources, such as innovative technologies that can harness the energy of the sun. "As part of his Advanced Energy Initiative, the President proposed a new $148 million Solar America Initiative in his 2007 Budget to accelerate the development of advanced photovoltaic (PV) materials that convert sunlight directly to electricity. The goal there is to make solar PV cost-competitive with other forms of renewable electricity by 2015," Snow explained.

The Secretary also emphasized that tax incentives for solar energy were included in Energy Policy Act that President Bush signed last summer. "The President's commitment to the expanded use and further development of solar energy was evident in his Energy Policy Act, and it continues today."

ENERGY POLICY ACT SOLAR TAX INCENTIVES:

Residential:
• A 30-percent tax credit, subject to a $2,000 annual cap is available through the end of 2007.

Businesses:
• Temporary increase in the tax credit allowed to business investments in solar energy equipment – 30 percent credit for 2006 & 2007, 10 percent after 2007.
 
"Solar energy will be a vital part of the Nation's energy supply for future generations, and tax incentives for American consumers and businesses developing solar technologies like Sharp is the best thing our government can do to spur innovation and increase demand," Snow concluded.

For more information on the President's Advanced Energy Initiative go to:  www.whitehouse.gov/stateoftheunion/2006/energy/index.html

- 30 -