May 21, 2008—Rosslyn, VA: Yesterday, by a vote of 263–160, the U.S. House of Representatives agreed to a five-year extension of the energy-efficient commercial building tax deduction. For months, NEMA has actively lobbied the House and Senate for this extension.  H.R 6049 Energy and Job Creation Act: 

• Extends the renewable energy tax credit for electricity generated from biomass, geothermal, solar, landfill gas, and trash combustion, for an additional three years
• Extends the residential solar and fuel cell credit through 2014
• Creates $3 billion of new tax-credit bonds to be used for qualified energy conservation purposes
• Decreases the depreciable life, from 20 years to 10 years, of qualifying “smart meters” installed by a utility
• Extends the energy-efficient commercial building tax deduction through 2013.

While the White House is publicly supporting these tax incentives, however, it is not supportive of certain aspects of the bill, such as the increase in the Davis-Bacon prevailing wage requirements. Due to White House’s objection, President Bush will inevitably veto this bill if the problematic provisions are not removed.

“I am very pleased that the House of Representatives has realized the importance of energy-efficient technology, and the critical role it plays in becoming energy independent,” NEMA president and CEO Evan Gaddis said. “Without Congressional action the energy-efficient commercial building tax deduction will expire at the end of the year, and the industry, and the country will lose many valuable projects, and miss the economic stimulus that these tax incentives create.”