February 04, 2005

Crapo Lauds Energy Provisions In FSC/ETI Bill

American Jobs Creation Act includes renewable energy tax incentives

WASHINGTON, D.C. â?? After a flurry of eleventh hour legislative activity on the Senate floor, Idaho Senator Mike Crapo applauded the passage of the American Jobs Creation Act by the Senate today in vote of 69-17. A number of important tax provisions originally included in the energy bill are included. These provisions will benefit economic development and business in Idaho. The bill that resolves a trade dispute with the European Union over export programs also includes key energy provisions: â?¢ The creation of a â??Volumetric Ethanol Excise Tax Creditâ??, which extends the ethanol tax incentive to 2010 and eliminates the impact of the ethanol program on the Highway Trust Fund and includes a new biodiesel tax incentive. â?¢ The expansion of important Production Tax Credits (PTC) to geothermal, solar, open-loop biomass, and small irrigation systems. The expansion to open-loop biomass includes a provision first authored by Senator Crapo in the 107th Congress that expanded the PTC to electricity produced from any agricultural livestock waste. â?¢ Expansion of the PTC coupled with relief from the Alternative Minimum Tax. â?¢ A modification of the Small Producer Ethanol Producer Tax Credit to allow cooperatives to fully use the program. â??The energy provisions in the American Jobs Creation Act of 2004 will simultaneously create jobs, enhance our energy independence, and encourage conservation,â?? said Crapo. â??These production credits will complement an increasing number of state-mandated renewable energy portfolio requirements. The resulting expansion of these industries will add local jobs, create investment opportunities and increase state tax revenues which can then be returned to individual communities.â?? â??While the fiscal, research and development benefits are clear in the short term, the greater impact of these provisions is that they set our country on the path to energy independence, a goal of increasing urgency as we see record gasoline and heating fuel prices this year,â?? continued Crapo. â??I am proud to have been involved in promoting these important changes to our tax law this year, and look forward to seeing the resulting economic and quality of life improvements. The inclusion of incentives for renewable energies in the America Jobs Creation Act of 2004 follows actions by Congress last month to extend the PTC in HR 1308, the Working Families Tax Relief Act. In that bill, the in service date to qualify for the 10-year credit period for the PTC was extended to January 1, 2006. The PTC has been vital to fostering the development of wind power. # # #