October 3, 2008

Washington, DC, USA: Bailout Bill Signed into Law, Including 8 Year Solar Tax Credit Extension

Today, by a vote of 263-171, the U.S. House of Representatives passed historic legislation that extends the 30-percent federal investment tax credit for both residential and commercial solar installations for 8 years.

This landmark legislation is part of the $700 billion H.R. 1424, the Emergency Economic Stabilization Act of 2008, designed to address the U.S. financial crisis. It is the most significant federal policy ever enacted for the solar industry. President Bush has already signed the bill into law.

The solar tax credit provisions will:

· Extend for 8 years the 30-percent tax credit for both residential and commercial solar installations;

· Eliminate the $2,000 monetary cap for residential solar electric installations, creating a true 30-percent credit;

· Eliminate the prohibition on utilities from benefiting from the credit;

· Allow Alternative Minimum Tax (AMT) filers, both businesses and families, to take the credit; and

· Authorize $800 million for clean energy bonds for renewable energy generating facilities, including solar.

Rhone Resch, President of the Solar Energy Industries Association, said, "Achieving this result has been the main policy focus of SEIA for two years, but our work is just beginning. Next year in the 111th Congress, SEIA will be a major voice on issues ranging from transmission, global warming, and national renewable electricity standards. Success on all of these issues will require that same coordination and effort from SEIA’s board, staff, and members. I look forward to the work to come. Congratulations and see you in San Diego for the celebration."

Based on Solarbuzz data, passage of this legislation could now unlock over 1.5 gigawatts of US photovoltaic projects waiting to proceed.

Further details about: Solar Energy Industries Assocation