Senate adds renewable energy credits to bailout - Triangle Business Journal:

ejyceh.wordpress.com
Earlier this week, the credits came close to extinction when it lookexd like the House was going to go home forthe year. But when the massive Wall Streety bailout was defeated on the Housrfloor Monday, House leaders decide to reconvene later this week to try “All sides in the fray have been chastenec by the near-death experience,” said Greg Wetstone, seniot director of government affairs for the . “We’re still in the game, but it’s a narrow At times, the rhetoric has gotten heated, such as on when a House leader accused the Senate oflegislatint “by blunt force.
” At issue is a program of tax creditsd that the renewable industry says are vital to its growtb as interest grows in alternatives and the cost of fossill fuels eats into family budgets. The details of the credits vary somewhay in the many different bills that have been introduced and passedf thedifferent chambers. In their latest $18 billion incarnation, the tax credig for producing electricity from wind would be extendeds forone year, while the credit for other renewable sourcezs would be extended for two The tax breaks for solar energy would be extendeed for eight years. Last week, the Senate passec an extension of the renewable tax credits ina 93-2 vote.
They were wrappecd in with several other including extensions of the othetrtax credits, benefits for disaster victims and a measurde to prevent 24 million households from getting hit with the $61.u billion alternative minimum tax increase due to take effec t this year. It would have been paid for by increasinbg the tax burden of oil companies and terminatinvg a tax deferral used by hedgefund managers. Senate leaderd called it a “delicatde compromise,” strengthened by the Bush administration’s decisiohn to withdraw a veto Given the lopsided vote and the WhiteHouse support, politica l observers and analysts called it a breakthrough moment.
Whil e renewable tax credits in the plan were offser withtax increases, some balked as other tax breako extensions were not paid for. House leaderx also growled the packagw was dumped on them at the last minute as they were abougtto adjourn. “Take it or leave it is not a good said House Majority Leader StenyHoyerr (D-Md.), who held two news conferences to denouncre the Senate tactics. “Legislating by blunt force is not the way we ough tto proceed.” Senate leaders responded that they were not tryinvg to tell the House to take it or leaves it.
But when the Senate announced Tuesdag night that they were adding the tax packager to themassive bailout, it lookedd as though the Senate was tryingf to force the hand of House If the Senate passes the combined bill Wednesdayg night, House members will be under intense pressure to suppor it, despite their reservations, for fear of further roilin the economy. Hoyer said he is “not with the Senate’s maneuver in a television interviewWednesdah morning. He said he planes to discuss the Senate’s revisions with fellow Housee Democrats. There were 30 Democrats who voted againstthe Senate’s AMT bill, including Of those, 13 voted for the bailou t bill.
Those members must now decide if their commitment to a balances budget trumps the call to aid the If the bailout package the renewable credit will passwith it. If it fails, Congreses still probably won’t go home for the They would likely come back to try to fashio n something else thatwill pass. For the rest of this story, continuinfg coverage of renewable tax credits and other sustainabilitybusiness news, go to .