Sustainable Edmonds

The text below is from an e-mail letter from Senator Maria Cantwell received November 19, 2008. In particular, take note of the new tax credits and incentives in the third and fourth paragraphs:

“Since being named a member of the Senate Finance Committee in January 2007, one of my top priorities has been to extend and expand clean energy tax incentives that will provide the certainty and stability that companies and the credit markets need to invest hundreds of billions of dollars in clean energy capacity and empower homeowners to generate and save their own energy. Recently, I spearheaded negotiations that helped end a 16-month partisan stalemate, allowing a landmark $17 billion clean energy tax credit package, the Energy Improvement and Extension Act of 2008 (H.R. 6049), to pass the Senate by a vote of 93 to 2 after eight previous failed Senate votes. That bill was included in financial rescue legislation (H.R. 1424) that was signed into law on October 3, 2008. These tax credits represent real economic stimulus that will help accelerate economic growth in Washington and across the country in one of the few bright spots of our troubled economy.

These new tax incentives will accelerate our transition to a clean energy system by extending existing production tax credits for electricity produced from renewable sources like wind, biomass, and incremental hydropower. Moreover, for the first time these tax credits are being extended to wave, tidal, and non-dam hydro technologies which have particular promise in the Pacific Northwest. I was particularly pleased that the bill extended the current investment tax credit for solar energy for eight years, which according to a recent study will create 440,000 green collar jobs, facilitate $232 billion in clean energy development, and result in solar power generation equivalent to 50 new coal fired power plants by 2016. For Washington state, the solar investment credit should translate into more than 10,000 permanent green collar jobs and 15,000 construction jobs.

This landmark law can also help Washingtonians lower their energy bills and carbon footprint by providing homeowners a 30 percent tax credit towards the installation of solar electric or hot water systems. In addition, the residential credit was expanded to cover residential wind generators and geothermal heat pumps. Homeowners can also now earn up to $500 in tax deductions for installing energy efficient products in their homes. For more information on how to utilize these credits and complementary state incentives, I would encourage you to visit http://www.dsireusa.org/.

In addition, I was pleased that this tax incentives package will provide up to $7,500 to consumers who purchase plug-in electric cars, trucks, or SUVs when they are available in showrooms in the next year or two. Plug-in electric vehicle owners will be able to get 100 miles per gallon or higher and be able to fill up their cars with electricity that costs the equivalent of one dollar per gallon. This provision is derived from a bipartisan bill I authored with Senators Barack Obama and Orrin Hatch. According to a recent study by the Pacific Northwest National Laboratory, even the capacity of our current electricity grid could power enough plug-in electric vehicles to displace half of our current oil imports and cut our greenhouse gas emissions by 20 percent. Finally, to make our electricity grid more intelligent, the new law provides utilities a tax incentive to install smart meter technologies which will facilitate renewable energy usage, provide double digit efficiency savings, and help prevent future blackouts.

Passage of these clean energy tax incentives was an acknowledgement that our nation needs to urgently begin shifting from the fossil fuels era to a clean energy system based on domestically produced and environmentally friendly 21st century technologies. Besides the wide range of clean energy incentives, another key component of the Energy Improvement and Extension Act of 2008 was that, for the first time, Congress voted to take subsidies away from mature and wildly profitable oil and gas companies and allocate those taxpayer dollars to renewable energy sources.

Making our nation’s energy system cleaner, more efficient, and more diverse has been one of my top priorities since being elected to serve in the Senate. Please be assured that I will keep your thoughts in mind as I continue working with my colleagues to further develop balanced and sustainable solutions to our nation’s long-term energy needs.”