Senate Supports Wood Pellets

From: http://www.sununu.senate.gov/pressapp/record.cfm?id=295523
SUNUNU, COLLEAGUES TAKE LEAD ON NEW BIPARTISAN RENEWABLE ENERGY TAX BILL

Unveil comprehensive legislation that includes Sununu provision for wood pellets
Contact: Barbara Riley
Thursday, April 3, 2008

WASHINGTON, DC – United States Senator John Sununu (R-NH) today (4/3) joined Senate colleagues in introducing the Clean Energy Tax Stimulus Act - bipartisan legislation that extends clean energy production tax credits and incentives to improve the energy efficiency of new and existing homes, businesses, and appliances.

Sununu and Senators Maria Cantwell (D-WA), John Ensign (R-NV), and others introduced their comprehensive legislation, which extends the current tax credit for the production of renewable electricity generated from solar, wind, geothermal, hydropower, biomass, landfill gas and trash combustion sources, at a Capitol Hill news conference on Thursday. The measure also includes a Sununu provision to provide a 10 percent tax credit for the purchase of energy-efficient wood pellet stoves – an initiative he advocated in earlier legislation.

“Rising energy prices place enormous financial pressure on families and businesses across New Hampshire and the nation,” said Sununu. “These renewable energy tax credits help lower this burden and represent smart investment policy for our environment. Most important, the bill makes good sense for New Hampshire where our wood, biomass, and wood pellet industries here have provided jobs across the state.”

“In December, the Senate, with my support, took steps to address the issue and President Bush quickly signed into law an energy bill that among other measures encouraged investment in renewable energy technology,” Sununu continued. “There is more work to be done, and this bill contains many provisions I have long supported. The legislation provides an opportunity for Democrats and Republicans to work together and enact legislation to further extend incentives for individuals, families, and businesses to use renewable energy sources.”

Senator Ensign stated, “John Sununu was the first Member to bring the issue of wood pellets tax parity to the Congress. It is one of the few new provisions to be added to the overall bill, and Senator Sununu’s compelling case for the provision in the past made it a natural fit for inclusion in this legislation. While Nevada has more solar and wind possibilities, this makes a lot of common sense for the northeast, especially New Hampshire.”

Steve Walker, President and CEO of New England Wood Pellet in Jaffrey, N.H. said, “We’re very pleased to see the great work of Senators Sununu, Cantwell and others to craft a bi-partisan renewable energy tax bill that will have a good shot of passing the Senate. In particular, we are grateful for Senator Sununu’s dogged determination in securing a modest tax credit provision for high efficiency, clean burning biomass heating appliances. With oil heating costs going through the roof, this measure should help struggling N.H. families make the switch to locally produced biomass fuels such as wood pellets to heat their homes.”

Specifically, the bill contains provisions that would:

- Extend the Renewable Electricity Production Tax Credit’s (PTC) placed-in-service date through 2009 for facilities that generate electricity from wind, closed-loop biomass, open-loop biomass, geothermal energy, solar energy, small irrigation power, landfill gas, and trash combustion. Once a facility is qualified, a taxpayer may claim the credit annually over a 10-year period that commences on the facility’s placed-in-service date. The provision also adds marine renewables (wave, current, tidal power, ocean thermal) as qualifying facilities.

- Extend the solar energy and fuel cell investment tax credit through 2016. The provision extends the current 30% renewable energy tax credit for business purchases of qualified solar and fuel cell property and the 10% credit for stationary microturbines.

- Extend the 30% residential energy-efficient solar property credit through 2009 for purchases of qualified solar property used to generate electricity or heat water, and fuel cell power plants. The provision fully repeals the annual residential energy-efficient solar property credit cap (currently set at $2,000).

- Extend the 10% energy-efficient credit for existing homes through 2009. The credit can be used for purchases of energy-efficient exterior doors and windows, storm windows, metal roofs, insulation, central air conditioning and heating, and other qualified property. The provision also includes a Sununu provision, adding biomass fuel property (stoves to heat a residence or water in such a residence) as qualified energy-efficient building property.

- Extend the energy efficient new homes credit through 2010. The provision provides builders with a credit up to $2,000 for a home that reduces energy consumption by 50% when compared to the model residential code, and $1,000 for an Energy Star manufactured home.

- Extend the energy-efficient commercial buildings deduction for property placed-in-service through 2009, and increases the maximum deduction amount from the current $1.80 to $2.25 per square foot. Qualifying expenditures include those made to improve the energy efficiency of a building (through retrofitting an existing building or designing a new building), and may include interior lighting, heating, cooling, ventilation and hot water systems, and power distribution and building envelope systems.
...