By Jay Heflin - 07/15/10 08:57 PM EDT
Under the draft, tax credits would be awarded for improvements in energy efficiency, integrating renewable electricity onto the electric grid, and creating technologies and equipment that capture biogas to produce energy and other "post-consumer waste-to-energy" facilities.
The draft's centerpiece extends through 2014 the Section 48C manufacturing tax credit for investing in renewable energy. The tax credit was created in the 2009 stimulus bill and has been touted by President Obama as being instrumental in helping companies become energy efficient. The Joint Committee on Taxation (JCT) estimates the extension will cost approximately $6.9 billion.
It also extends through 2012 the direct payment options for taxpayers in lieu of taking production tax credits and investment tax credits. The JCT expects the proposal to cost $3.7 billion.
Investment tax credits for long-term projects involving geothermal and offshore wind energy projects are extended through 2016 in the draft, costing approximately $2.9 billion, according to the JCT.
A $3.5 billion extension of Clean Renewable Energy Bonds is in the draft.
The ethanol tax credit is extended for one-year, but at a reduced rate, from 45 cents to 36 cents per gallon, costing about $3.8 billion, according to the JCT.
Biodiesel and renewable diesel tax credits are reinstated for 2011, which the JCT estimates will cost $2 billion.
The draft provides tax credits for buying heavy trucks that either run off natural gas or are hybrids.
It also provides $2.4 billion in tax credit bonds to states and large municipalities to finance low-interest loans and grants to home owners seeking to make their homes energy efficient.
The draft also includes several, smaller provisions that prompt energy efficiency.