President Obama Signs Bill Extending Energy Efficiency, Renewable Provisions
January 5, 2011
President Obama on December 17 signed a bill that temporarily extends through 2011 various energy efficiency and renewable energy provisions, including Section 1603 of the American Recovery and Reinvestment Act, which provides cash assistance to energy producers in place of tax credits. Under this program, the federal government provides a cash payment in lieu of a tax credit totaling 30% of the qualifying cost of the project. The measure, passed by the U.S. House and U.S. Senate and hailed by renewable energy industry associations, extends for one year the start-of-construction deadline for projects such as wind and solar power that are eligible under Section 1603.
Other provisions extended through 2011 include a $1-per-gallon production tax credit for biodiesel as well as diesel fuel created from biomass; credit for manufacturers of energy-efficient residential homes; a 50-cent-per gallon alternative fuel tax credit; the existing per-gallon tax credits and outlay payments for ethanol; credits for U.S.-based manufacture of energy-efficient washing machines, dishwashers, and refrigerators; certain credit for energy-efficient improvements to existing homes; and a 30% investment tax credit for alternative vehicle refueling property. See the President's remarks upon the signing of the bill, the bill summary with energy provisions on pages 6-7, and statements on the passage by the American Wind Energy Association, and the Solar Energy Industries Association.