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Time Is Now to Extend Renewable Energy Tax Credits, Says SPIE
| Source: SPIE
BELLINGHAM, WA--(Marketwire - September 9, 2008) - A standoff between Democrats and Republicans
in Congress has prevented the renewal of tax credits for alternative energy
that experts say are critical to the wide adoption of solar and wind energy
in the United States. As the December 31 expiration of the credits looms
closer, it is important that Congress act quickly to end industry
uncertainty, according to SPIE and its members.
Renewable energy industries, including solar photovoltaic companies,
totaled nearly $40 billion in gross revenues in 2006 and were responsible
for more than 450,000 direct and indirect jobs, according to the American
Society for Solar Energy.
"Without assurance of the tax credits, progress toward energy independence
and cost efficiency enabled by recent advances could be drastically
delayed," said SPIE CEO Eugene Arthurs. "The U.S. will not be in a position
to benefit from recent technology breakthroughs and ongoing research."
At stake are incentives that reduce the cost of developing solar, wind,
biomass, and other renewable energy sources eligible under the Investment
Tax Credit (ITC).
Continuation of the tax credits now is crucial for leveraging recent
advancements in solar energy and keeping momentum going in development of
technology.
"Photovoltaic electricity is on the cusp of reaching grid parity, becoming
competitive with petroleum, natural gas, and coal-fired utilities," said
Ravi Durvasula, Director of Optical Engineering at Lightfleet Corporation.
"Extending renewable energy tax incentives at this critical juncture will
undoubtedly hasten the technical progress and thus shorten the timelines
needed for reaching the tipping point." Durvasula was Symposium Chair of
SPIE's Solar Energy conferences at its 2008 Optics and Photonics event.
"Solar photovoltaic and other renewable energy technologies have advanced
rapidly in the U.S. over the past few years," said Robert J. Phillippy,
President and CEO of Newport Corporation, a Corporate Member of SPIE.
"Extension of the renewable energy tax credits will enable development of
more cost-effective and efficient sources of renewable energy to continue
at this rapid pace. This will provide significant and sustainable benefits
to our environment and our economy."
The White House has endorsed more than one bill to extend the credits, but
its efforts have relied on a balanced-budget approach that required that
they be offset by cuts in other areas. With President Bush threatening to
veto such legislation, and Senate leadership not being able to muster a
veto-proof 60 votes, the effort remains stalled, despite bipartisan
agreement on the need for the tax incentives.
With many projects now stymied until the stalemate is resolved, the
industry is beginning to feel the fallout from the potential expiration of
the credits at the end of 2008. Solar manufacturers and installers have
delayed hiring, companies have revised earnings forecasts, and homeowners
may delay adding alternative energy systems due to the potential increase
in out-of-pocket expense. Other companies are adjusting their strategies to
invest outside the U.S.
The proposed legislation would extend and increase the residential
energy-efficient property tax credit, which currently gives homeowners up
to $2,000 for installing solar panels, geothermal heat pumps or small wind
equipment. The credit would be doubled and extended for 10 years.
A 30 percent subsidy for businesses investing in solar power and a
renewable-energy production tax credit of 1.9 cents per kilowatt hour for
utilities are also part of the package.
About SPIE
SPIE is an international optics and photonics society founded in 1955
advancing light-based technologies. Serving the interests of its more than
188,000 active constituents representing 138 different countries, SPIE acts
as a catalyst for collaboration among technical disciplines for information
exchange, continuing education, publishing opportunities, patent precedent,
and career and professional growth. As the organizer and sponsor of
approximately 25 major conferences and education programs annually in North
America, Europe, Asia, and the South Pacific, SPIE provides publishing,
speaking, and learning opportunities on emerging technologies. For more
information, visit http://SPIE.org.