Still no word on solar tax credit extension

by Erik Larson | September 26, 2008 at 06:33 pm

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If you want to see the Solar tax credits passed in the US, call your Representative! The Senate just passed a version extending the credits for 8 years, that are set to expire this year. The bill has stalled in the House, and Bush is threatening a veto.

Though both houses of Congress have passed versions of a bill to extend solar tax credits for eight years, no compromise has been reached on how to fund the extension — which could be its downfall.

An eight-year extension would be a huge win for the solar industry, which has said that an eight-year extension would allow the industry to innovate, scale and ultimately become cost-competitive with energy sources from fossil fuels. The current investment tax credit expires Dec. 31 and the solar industry views this go-around as the last chance to get the credits renewed this year.

On Sept. 23, the Senate passed a comprehensive tax package that contained an extension of the solar tax credits that appeared to leap previous funding hurdles.

And the House’ version, passed 257-166 today, broke the tax package into four separate measures and the White House issued a veto threat for any version that relied on tightening of certain tax loopholes or increaseing taxes to oil and gas companies.