February 28, 2003
Smith Introduces Bill to Encourage Renewable Energy Production
Washington, DC – Today, Senator Gordon Smith (R-OR) announced that he has joined Senator Harry Reid (D-NV) to introduce the Renewable Energy Incentives Act (S. 464) which will expand and extend tax incentives to encourage the production of environmentally-friendly energy.
"Our demand for energy is growing by leaps and bounds," said Smith," We have to make sure that not only are we generating enough from traditional sources, but that we're also looking for new environmentally friendly ways to provide for our ever-increasing needs."
S. 464 expands the current renewable energy production tax credit, which has already fueled a boom in wind energy development, to include renewable energy sources such as geothermal, solar, open-loop biomass, and incremental hydropower. The expanded tax incentives are aimed at encouraging new environmentally-friendly production capacity while providing equitable treatment among renewable energy technologies.
The Renewable Energy Incentives Act also includes the following provisions:
- Credits for renewable energy production on native American and Alaskan Native lands
- Co-production credit to encourage blending of renewable energy with other production processes
- Production incentives for tax-exempt energy production facilities (e.g., public power utilities) allowing them to transfer credits to taxable entities.
- Credit to offset the alternative minimum tax.
"New technologies are often too expensive to implement without financial assistance," Smith said. "I believe the government can play a key role in protecting the environment by providing market-based incentives to encourage the use of clean, renewable fuels."
This legislation is nearly identical to Renewable Energy Incentives Act (S. 1566) introduced by Senators Smith and Reid in 2001.
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