Alliance to Save Energy Supports New Energy Efficiency Tax Incentives Introduced in Senate
As oil and gas prices reach record levels in anticipation of war with Iraq, and as national security interests dictate reducing American oil dependence, the Alliance to Save Energy applauds the energy efficiency tax credits introduced today by the bipartisan leadership of the Senate Finance and Energy Committees.
“Incentives for energy efficiency need to be a central part of the national, and indeed global, energy picture today,” said Alliance President David M. Nemtzow. “With energy costs reaching record levels in recent days, lawmakers are right to get behind energy efficiency that will help consumers and the environment, with longer-term benefits for the economy and national security.
“The Alliance congratulates Finance Committee Chairman Charles Grassley (R-IA) and Senators Max Baucus (D-MT), Jeff Bingaman (D-NM), and Pete Domenici (R-NM) for their introduction of S.597, the Energy Tax Incentives Act of 2003. The Alliance to Save Energy offers strong support for energy efficiency tax incentives.” Nemtzow said.
The tax incentives – which are virtually identical to the package that the Senate passed last year, – are designed to promote the manufacture, production, and purchase of highly efficient homes, cars, and equipment; they include:
- New Homes – A tax credit to builders of up to $1,250 per unit for homes that are at least 30 percent above code and up to $2,000 per unit for homes at least 50 percent above code.
- Hybrid and Fuel Cell Vehicles – Consumer tax credits for fuel cell, hybrid gas-electric, alternative fuel, and electric vehicles.
- Appliances – A tax credit to manufacturers for highly efficient clothes washers and refrigerators. • Commercial Buildings – A tax deduction of up to $2.25 per square foot for investment in commercial buildings and multifamily residences that reduce energy use by 50 percent.
- Existing Homes Upgrades – A 10 percent tax credit to homeowners of up to $300 for highly-efficient components such as insulation and windows that result in a 30 percent reduction in heating and cooling costs.