WASHINGTON, D.C., USA, October 6, 2008. Solar is the big winner after the US Congress passed the tax credits extensions for renewable energy generation on Friday 3 October as part of the Emergency Economic Stabilization Act of 2008.
Solar saw its Investment Tax Credits (ITC) extended by eight years and the lifting of the US$2,000 cap on residential installation tax credits, whereas the wind industry only received a one year extension of its Production Tax Credit (PTC).
An authorisation of US$800 million for clean energy bonds for renewable energy generating facilities was also included in the Bill. Michael Liebreich, Chairman and Chief Executive Officer at renewable energy analysts New Energy Finance, welcomes the extensions: “The measures attached to the Bill could hardly be of greater significance to the clean energy industry. Just as it looked like investment activity might be drying up with the general evaporation of credit, and despite the industry’s strong fundamentals, the US Cavalry arrived.”