House Committee OKs $20 Billion In Energy Tax Credits, Over $10 Billion of Which For Renewable Energy. Homeowners Also Qualify.

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Today, the U.S. House Ways & Means Committee approved $20 billion in energy tax credits and related financial incentives as part of the Obama administration’s plan to revive the American economy. Can I get a w00t!?

The tax breaks benefit the wind and solar energy industries and encourage energy-efficiency improvements to existing homes. Other facilities that generate electricity from renewable sources such as biomass, hydropower, landfill gas and ocean currents also qualify for the credit. Facilities will have to be in place by 2012 to be eligible for the credit.

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Of the $20 billion, more than $13 billion of it is focused on renewable energy projects. This is mostly due to the tough time that these projects have when it comes to finding financing in current market conditions.

Homeowners can get a tax credit of up to 30-percent on upgrades for energy-efficient furnaces, hot water boilers and other energy savings improvements.

Gas stations will also qualify for tax breaks if they install pumps that dispense alternative fuels like hydrogen, natural gas and gasoline made from 85 percent ethanol.

The new tax credits would put in place the kind of long-term incentives for renewable energy that the 1 and 2-year extensions of the production and investment tax credits have not been able to accomplish.

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