Energy Efficiency Incentives are Badly Needed Economic Stimulus

Washington, D.C., April 3, 2008 - The Alliance to Save Energy today praised a bipartisan Senate effort to secure the extension of tax incentives for renewable energy and energy efficiency, but cautioned that the time for making a difference in the economy is very short.

“Legislation introduced today by Sens. Maria Cantwell (D-Wash.) and John Ensign (R-N.V.) entitled the Clean Energy Tax Stimulus Act of 2008 is a major step forward in the direction of extending energy-efficiency tax incentives that will result in lower energy bills and help generate new jobs and economic activity,” said Kateri Callahan, president of the Alliance.

“But we cannot wait indefinitely to enact this legislation if it is to achieve the economic boost that is badly needed,” she cautioned. Callahan pointed out that Congress has been considering the tax incentive extensions for months without agreeing on a bill that would pass both houses of Congress: “Now the time for action has arrived, and the economic downturn compels swift consideration of the bill in the Senate and agreement with the House on a final package to go to the president for signature.”

“Here we have a bill that enjoys broad, bipartisan support in both houses, as evidenced by the group of more than 20 Democratic and Republican senators who joined in introducing the Clean Energy Tax Stimulus Act today,” Callahan observed. “American consumers urgently need the stimulative effect of these tax incentives, which will put money in their pockets by lowering their energy bills.”

The bill extends the credit for energy-efficiency improvements in existing homes for one year, through December 31, 2009; extends the energy-efficient new homes credit for two years, through December 31, 2010; extends the energy-efficient commercial buildings deduction to property placed in service through December 31, 2009; and modifies and extends the energy-efficient appliance credit for appliances produced in 2008, 2009, and 2010 and updates the qualifying efficiency standards in accordance with the new energy law enacted last December (P.L. 110-140, the Energy Security and Independence Act). The bill also extends incentives to encourage renewable energy.

“I commend the leadership of Sens. Cantwell and Ensign in introducing this legislation,” said Callahan. “These tax credits were a key piece missing from last year’s energy bill. The Senate earlier this year came within one vote of adding the tax incentives to the economic stimulus package. Now, with today’s introduction of the Cantwell/Ensign bill, the Senate has an opportunity to take care of this important unfinished business from last year,” observed Callahan.

“The Alliance has recently worked with a coalition of more than 200 businesses, investors, labor, nongovernmental organizations, religious organizations, public health organizations, trade associations, and utilities to urge Congress to pass bipartisan tax incentive legislation as soon as possible,” observed Callahan.

The coalition delivered letters today to all 100 senators urging the prompt extension of the renewable and energy-efficiency incentives.

“Congressional action cannot be further delayed if this bill is going to make a difference in creating new high-wage jobs in the emerging clean-energy economy,” said Callahan. “The Alliance urges the Senate to ‘fast track’ the tax incentives for swift enactment as consumers and businesses face spiraling energy costs in the looming recession.”