WERC NEWS - |
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The U.S. House of Representatives passed the long awaited investment tax credit bill this week for Renewable Energy (RE). The bill was contained within the American Recovery and Reinvestment Tax Act, which passed by a vote of 244 to 188. This bill contains several essential provisions to keep the wind energy industry growing and creating jobs despite the down economy. It includes a new grant program that would make tax incentives for the renewable energy industry usable even in hard economic times, a three-year extension of the production tax credit, several provisions to promote transmission for renewable energy, and key changes to benefit small wind systems.
U.S. wind energy industry shattered all previous records in 2008 by installing 8,358 megawatts (MW) of new generating capacity (enough to serve over 2 million homes), a spokesperson from the American Wind Energy Association (AWEA) said today. The massive growth in 2008 swelled the nation’s total wind power generating capacity by 50% and channeled an investment of some $17 billion into the economy, positioning wind power as one of the leading sources of new power generation in the country today along with natural gas, AWEA added. Industry sources indicate that in 2009 there may be product shortages of generators, blades, inverters or other components that may slow the growth. Customers are expected to increase orders for 2009 small wind machines (under 100 kw) by 30% over, according to some industry sources. Wind WERC currently has enough resources to fill current orders but anticipates, as a result of the tax credits, to receive new orders exceeding current supplies from its vendors. “We are doing our best to help our customers get their machines this year, but it may be best for some customers to place new orders before March 1, when a price increase is anticipated and orders are expected to at least double.” Stated David Winkelman, CEO of Winkelman’s Environmentally Responsible Construction (WERC) today. |
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Small Wind Turbines and the American Recovery and Reinvestment Tax Act
Specifically, a thirty percent (30%) investment tax credit was made available for small wind turbines as part of this bill. In other words, 30% of the total cost of small wind turbines can now be credited to the bottom line on the income tax return of those purchasing small wind machines starting in 2009, according to this bill. The Senate is considering similar legislation early in the week of February 1. Before the bill becomes law, it must also be passed by the U.S. Senate, but is expected to pass by the middle of February 2009. You can help by contacting your U.S. Senator and Representatives and urging swift passage of these measures.