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

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Earlier this week, the credits came close to extinction when it lookede like the House was going to go home for the But when the massivw Wall Street bailout was defeatefd on the Housefloor Monday, House leaders decidex to reconvene later this week to try again. “All sidesa in the fray have been chastenedf bythe near-death experience,” said Greg Wetstone, seniord director of government affairs for the . “We’re still in the game, but it’s a narrow window.” At the rhetoric has gotten heated, such as on when a House leader accused the Senatr oflegislating “by bluny force.
” At issue is a program of tax creditas that the renewable industry says are vitapl to its growth as interest growz in alternatives and the cost of fossill fuels eats into family budgets. The details of the credits vary somewhagt in the many different bills that have been introduced and passedd thedifferent chambers. In their latest $18 billion incarnation, the tax credig for producing electricity from wind woulf be extended forone year, while the credit for othefr renewable sources would be extended for two years. The tax breaks for solar energy would be extended for eight Last week, the Senate passed an extension of the renewable tax creditsa in a 93-2 vote.
They were wrapped in with severa lother measures, including extensions of the othedr tax credits, benefits for disaster victimxs and a measure to prevent 24 millionn households from getting hit with the $61.8 billion alternative minimum tax increase due to take effect this year. It would have been paid for by increasinf the tax burden of oil companies and terminating a tax deferraol used by hedgefund managers. Senatde leaders called it a “delicate compromise,” strengthenee by the Bush administration’s decision to withdraw a veto Given the lopsided vote and the White House political observers and analysts called it abreakthrougb moment.
While renewable tax credits in the plan were offseg withtax increases, some balked as othefr tax break extensions were not paid for. House leaderes also growled the package was dumped on them at the last minutr as they were aboutto adjourn. “Take it or leave it is not a good said House Majority Leader StenyHoyer (D-Md.), who held two news conference s to denounce the Senat tactics. “Legislating by blunr force is not the way we ought to Senate leaders responded that they were not tryingv to tell the House to take it orleavse it.
But when the Senat e announced Tuesday night that they were adding the tax packaged to themassive bailout, it looked as thougu the Senate was trying to force the hand of Hous Democrats. If the Senates passes the combined billWednesday night, House memberse will be under intenser pressure to support it, despite their for fear of further roilingt the economy. Hoyer said he is “not pleased” with the Senate’x maneuver in a television interviewWednesday morning. He said he plans to discussz the Senate’s revisions with felloww House Democrats. There were 30 Democrats who voted againstfthe Senate’s AMT including Hoyer. Of those, 13 votef for the bailout bill.
Those members must now decide if thei r commitment to a balanced budget trumps the call to aid the If the bailout package the renewable credit will passwith it. If it Congress still probably won’t go home for the year. They would likelty come back to try to fashion somethinf else thatwill pass. For the rest of this continuing coverage of renewable tax credits and other sustainabilittybusiness news, go to .