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ESSENTIAL LEGISLATION
HR 6049
The Renewable Energy and Job Creation Act of 2008
Extends existing investment tax credits for installing solar energy, wind power, geothermal, wave energy and other renewables.
These tax credits are due to expire in December 2008.
On July 29, for the eighth time this session, the Senate blocked debate on this bill, which was passed by the House of Representatives in May 2008. The bill remains stalled in the Senate, as Congress adjourns for summer recess.
On August 1, a bi-partisan group of 10 Senators unveiled a compromise bill aimed at ending the gridlock on renewable energy legislation. Learn about the New Energy Reform Act of 2008.
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Why this bill is important
Passage of investment tax credit (ITC) legislation, whether in HR 6049 or another bill, will extend tax incentives for these clean energy technologies:
- solar installations (for individual homes as well as large commercial projects)
 wind farms
- electricity generated from biomass, trash combustion, and municipal solid waste
- geothermal and hydroelectric plants
- energy efficient building renovations
- green building and sustainable design projects
- the use of plug-in cars and alternative fuel vehicles
See a more detailed summary
See the bill's entire voting history
"The extension of federal credits related to incentives for research and development, renewable energy and energy efficiency and a continuation of the ‘patch’ for the alternative minimum tax are hugely important to the health of the California economy.”
Governor Arnold Schwarzenegger
Save the solar power plants!
 The ITC (investment tax credit) for solar not only serves as a major incentive for households to buy solar panels (up to $2,000 credit per residence), it plays a key role in business and government investment in photovoltaic systems (30% tax-break for businesses purchasing solar).
It's estimated that 75% of non-residential solar installations are commercial power purchase agreements that rely on the federal tax credit.
Solar providers are warning of dire consequences to their business with the loss of this subsidy. There are currently 22 major solar power plants in various stages of planning around the country, but all have been implemented on the assumption Congress would extend the renewable energy tax incentives. Here are but 3 examples:
- Arizona Public Service Co. has proposed what would be one of the largest solar-power plants in the world, capable of serving 70,000 homes or more. But utility executives have made it clear that they will kill the plans for the Solana Generating Station if the tax credit isn't extended past its Dec. 31 expiration date.
- The CEO of SunPower, one of the largest solar providers in the U.S., threatened to leave the U.S. market should the tax credit not be extended.
- In California, Pacific, Gas & Electric's planned 550 megawatt solar thermal plant in the Mojave Desert will likely be shelved without the tax credit: "With no ITC there will be no project," said Avi Brenmiller, CEO of Solel, the company tasked with building the plant.
“Failure by Congress to renew the credits could cost the United States more than 100,000 jobs and billions of dollars annually in new investments. These losses would be felt across the country, in states such as California, Colorado, Illinois, Iowa, Minnesota, North Dakota, Oklahoma, Oregon, Pennsylvania, Texas, and Washington."
Pacific Gas and Electric CEO Peter Darbee
Why the delay in Congress?
It is reported that the renewable energy tax credits have broad support across party lines, but there is disagreement between Democrats and Republicans over how to finance them. Democrats want to pay for the tax credits by rescinding tax breaks for the oil and gas industry and delaying a tax break for multinational corporations.
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What you can do to help
Write or call your Senator urging them to take action on energy legislation.
Below are tips and information or, send a letter to Speaker Nancy Pelosi instantly online.
After 8 failed attempts to get it to the floor for debate, the future of HR 6049 doesn't look promising. BUT, a bi-partisan bill offering reasonable compromises was authored just before Congress adjourned for August recess. They will be debating it in September.
Calling your Senator
Go to www.senate.gov and look up your Senators' websites. You will find their district office phone numbers listed under the "contact" link.
It's important to call their district (not Washington) office -- each call you make to the district office is worth about 10 calls into their D.C. office.
When you call, state your name and location and ask to leave a message for the Senator.
See our sample letter for ideas about what to say in your message.
Writing your Senator
You can find the mailing and email address of your Senator here. If you are sending a letter in the U.S. mail, send a copy both to the district office and the D.C. office.
In your letter, you can raise some or all of these key points (or, click here for a sample letter):
The New Energy Reform Act is a win/win proposition. It is the first piece of legislation that is a compromise of the opposing positions on tackling our foriegn dependence on foriegn oil and how to pay for clean energy development.
The New Energy Reform Act will take the offshore drilling issue off the table. This issue has contributed greatly to the impasse on energy legislation.
The tax credits provided in the New Energy Reform Act are vital to renewable energy development. Over a dozen solar power plant projects will be discontinued if the tax credits are not extended. Other clean energy power plants will be stiffled or abandoned. Home owners and builders will lose tax credits for installing solar panels, wind turbines and other renewable energy technologies.
Expiration of these tax credits will incur tremendous job and investment loss. According to independent analysis by Navigant Consulting, this would translate into the loss of 39,000 jobs, as well as the loss of nearly $8 billion in investments. When wind is included, 116,000 jobs and $19 billion in investment are at risk.
Renewable energy development will actually help to create new jobs as the renewable energy sector grows.
Americans want renewable energy. In a recent national survey by Kelton Research, nearly three-quarters of Republicans (72 percent), Democrats (72 percent) and Independents (74 percent) favor an extension of the federal investment tax credits as a way to encourage development of renewable energy and fund continued development of the technology.
Tips for writing your Senator
In your letter, provide the Congressional numbers of the bill, HR 6049 / S 3335.
State who you are and where you live. Even if you are sending an email, include your correct name, address, phone number and return email address.
State any professional credentials or personal experience you may have, especially those pertaining to the subject of your letter.
Keep your letter short -- one page is ideal.
On the outside of your letter, address your Senator as: The Honorable (full name)
In your salutation, write Dear Senator ___:
Close your letter by clearly stating that you support passage of the New Energy Reform Act of 2008.
Sample letter
The Honorable Senator John McCain
5353 North 16th Street, Suite 105
Phoenix, Arizona 85016
RE: The New Energy Reform Act of 2008
Dear Senator McCain,
As you know, the American public has grown anxious and frustrated over high gas prices and the lack of energy legislation from Congress. Throughout the summer, both houses of Congress were gridlocked on a variety of energy bills, with no sign of successful compromise in sight.
The New Energy Reform Act of 2008, authored by the "Gang of 10", offers our country real hope for an energy package that we all can agree upon. As a concerned citizen, I have read the details of the bill, and believe it is a win/win for everyone.
I respectfully urge you to give full support for this bill, help get it to the floors for debate, and vote "yes" to ensure its passage. We need this legislation.
Sincerely yours,
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Bill Summary
- Extends the renewable energy tax credit by one year for new wind facilities (Sec. 101).
- Extends the renewable energy tax credit by 3 years for new qualified closed-loop or open-loop biomass facilities, geothermal or solar energy facilities, small irrigation power facilities, landfill gas facilities, trash combustion facilities, and qualified hydropower facilities (Sec. 101).
- Designates marine and hydrokinetic renewable energy as being qualified energy resources eligible for the renewable energy tax credit (Sec. 102).
- Extends for 6 years the 30 percent energy tax credit for qualified fuel cell property and solar energy property and the 10 percent credit for microturbine property (Sec. 103).
- Extends the tax credit for certain new residential "energy efficient" property for 6 years and raises the total tax credit for new solar electric property from $2,000 to $4,000 (Sec. 104).
- Extends the research tax credit, restaurant property depreciation tax credits, and optional state sales tax deductions for one year (Sec. 221, 225, 201).
- Extends tax credits for biodiesel and renewable diesel used as fuel for one year, and raises the biodiesel credits and biodiesel mixture credits from 50 cents per gallon to $1 per gallon (Sec. 122).
- Provides an additional standard deduction for real property taxes for non-itemizers of up to $350 or $700 for a joint return (Sec. 301).
- Increases the child tax credit for low-income parents (Sec. 302).
- Delays tax code provisions that would allow companies to allocate interest on a worldwide basis for 10 years (Sec. 402).
- Mandates that compensation deferred under a nonqualified deferred compensation plan of a foreign corporation shall be includible in gross income in the absence of a substantial risk of forfeiture of rights to such compensation (Sec. 401).
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Voting History
| Date |
Chamber |
Question |
Aye |
Nay |
Result |
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| July 29, 2008 |
Senate |
H.R.6049 Energy and Tax Extenders Act of 2008
On the Motion (Motion to Invoke Cloture on the Motion to Proceed to H. R. 6049 ) |
53 |
43 |
Cloture Motion Rejected |
See Vote |
| June 17, 2008 |
Senate |
H.R.6049 Energy and Tax Extenders Act of 2008
On the Motion (Motion to Invoke Cloture on the Motion to Proceed to H. R. 6049 ) |
52 |
44 |
Motion Rejected |
See Vote |
| June 10, 2008 |
Senate |
H.R.6049 Energy and Tax Extenders Act of 2008
On the Cloture Motion (Motion to Invoke Cloture on the Motion to Proceed to Consider H.R. 6049 ) |
50 |
44 |
Cloture Motion Rejected |
See Vote |
| May 21, 2008 |
House |
H.R.6049 Energy and Tax Extenders Act of 2008
On Passage: H R 6049 Renewable Energy and Job Creation Act |
263 |
160 |
Passed |
See Vote |
| May 21, 2008 |
House |
H.R.6049 Energy and Tax Extenders Act of 2008
On Motion to Recommit with Instructions: H R 6049 Renewable Energy and Job Creation Act |
201 |
220 |
Failed |
See Vote |
Here's a video clip abouot the bill by the Vote Solar Initiative.
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