Tax Incentive Extensions Pass in Senate

On March 10 the Senate passed a package of extensions of tax incentives that had expired, H.R. 4213.  The House had already passed its version of the bill. The Senate version, authored by Senate Finance Committee Chairman Max Baucus (D-Mt), includes some additional provisions relevant to energy efficiency. The two bills will now likely be reconciled by a conference committee before again being voted upon by each chamber.

The popular ‘New Energy Efficient Home Credit,’ which offers a credit of $2000 to builders of new homes designed to achieve 50 percent energy savings would likewise be extended through the end of this year; it expired at the end of 2009 as well. This provision was not included in the House-passed bill.

A tax credit for ‘heavy hybrid’ vehicles (i.e. vehicles other than passenger cars and light trucks – mainly delivery trucks, buses, municipal vehicles and the like) would be extended to the end of this year. It expired at the end of 2009. This provision was included in the House-passed bill.

A controversial amendment offered by Senators Rockefeller (D-W.V.) and Grassley (R-Iowa) modified criteria for residential window, door, and skylight energy efficiency credits. Under the Non-Business Energy Property credits, homeowners receive a tax credit for certain home energy efficiency improvements. This amendment would change the criteria for windows, doors, and skylights by requiring that they meet the new ENERGY STAR version 5.0 residential requirements to be eligible for the credit, rather than the national criteria put in place in the 2009 Recovery Act, which were mostly somewhat more stringent. Either set of criteria could be used for ninety days after passage. This credit remains available through the end of 2010, as provided for in the 2009 Recovery Act. This provision was not included in the House-passed bill.