SOLAR CREDITS A PART OF THE 'BAIL-OUT BILL'

The Emergency Economic Stabilization Act of 2008, aka the Bailout Bill, included an extension to the 30% federal investment tax credit that may help the domestic solar industry in expanding solar installations by attracting investments, expanding manufacturing and possibly lower the cost of solar energy to us as consumers.

The solar investment tax credit includes:

• Extension of 30% tax credit for both residential and commercial solar for eight years.
  
• Elimination of the $2,000 cap for residential solar electric installation placed into service after December 31, 2008.
  
• Elimination of the prohibition on utilities from benefiting from the credit.
• Allowance of the Alternative Minimum Tax filers to take the credit
• Authorization of $800 million for clean energy bonds for renewable energy generating facilities, including solar.

Solar credits in 2007 were given credit for doubling the capacity of electricity generated by solar installations from 2006. Proponents also say that this tax credit extension could create as many as 440,000 permanent jobs. This extension could also not only help residential solar installations, but an estimated 27 large, utility-scale solar power projects because it allows many of the utility-scale projects currently on hold due to the uncertainty of the extension to go forward. By 2016, solar could generate enough energy to power more than 7 million homes.

Florida could benefit from new manufacturing and installation jobs as a result. Still, we have a lot of work to do to improve the transmission infrastructure and renewable electricity standards.

Posted in: emergency economic stabilization,Solar,tax credits