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Federal tax credits for installation of small wind systems proposed

Submitted by khalifa saber on Sunday, 8 April 2007No Comment

By Hank Zevallos

Small wind turbine systems for residential and small business installations are getting their first federal support since 1985 with the introduction of federal investment tax credit bills in both houses of Congress.

Bill H.R.1772 has just been introduced in the U.S. House of Representatives in a Congressional move that began March 14 with the introduction of Senate bill S.673.

Getting bipartisan sponsorship, these bills are aimed at helping property owners, farmers and other small businesses with the high up-front cost required to install these systems across the nation.

In explaining the importance of the Senate bill introduced by Senators Ken Salazar (D-CO) and Gordon Smith (R-OR), Senator Dianne Feinstein (D-CA) told the Tehachapi News, “This is a good proposal, and I support it. The fight to reduce greenhouse gas emissions will require many solutions in many areas. The time has come to build a new energy infrastructure and wind power will be a cornerstone of that portfolio.”

Officially known as the “Rural Wind Energy Development Act,” Senate bill S.673 will not only have significant impact nationally in taking existing loads off the electrical grid, but will also help local property owners in non-grid areas like Mountain Meadows and Alpine Forest, who aren’t eligible to take advantage of California Energy Commission rebates.

This is especially important in our area because Tehachapi and other nearby East Kern and Antelope Valley areas share a natural wind resource that studies show can meet 40 percent of the state’s renewable energy needs.

Each home, farm and business that employs this available wind energy eliminates the need for additional fossil fuel burning and nuclear power plants. Scientists are on record saying the greenhouse gas emissions produced by such electricity producing plants are contributing to the global warming that is already causing extreme weather, with more severe environmental consequences predicted by recent scientific research studies.

Introduced Thursday evening, March 29, the House bill had 12 original sponsors, seven of which were Republicans and five Democrats, including two Democrat members of the tax writing House Ways and Means Committee. Lead sponsors were Rep. Earl Blumenauer (D-OR) and Rep. Tom Cole (R-OK)

At press time, the language of House bill H.R.1772 was not yet available. However, the Senate bill will provide federal investment tax credits of $1,500 per half kilowatt of capacity for small wind systems. The bill also calls for a three year accelerated depreciation and a credit carry-over for a customer unable to take advantage of the entire credit within a one year period.

Ron Stimmel, Small-Wind Advocate for the Washington, D.C.-based American Wind Energy Association, confirmed that passage of the bill means someone who installs the type of 10 kW wind turbine already seen operating successfully in Tehachapi, will now be eligible for a $30,000 federal investment tax credit.

Language in the Senate bill also will make this credit retroactive to systems “Placed in service after December 31, 2006.”

Although Senator Barbara Boxer was unable to provide the Tehachapi News with a statement other than she is “looking into it,” the office of local Congressman Kevin McCarthy’s Washington, D.C. office was quick to respond.

“Kern County, and Tehachapi in particular, are at the forefront of renewable energy production and Congressman McCarthy supports expanding the use of renewable energy sources, like wind energy. Once the full text of H.R.1772 is available to be studied and if there are more good energy tax incentives in the bill, like the production tax credit, then Congressman McCarthy will take a serious look at the issue.”

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