Bill offers renewable energy incentives to consumer-owned systems

Bill offers renewable energy incentives to consumer-owned systems

Washington (Platts)--2May2005


A bipartisan bill offered by Senate Finance Committee Chairman Charles
Grassley (Republican-Iowa) would give consumer-owned electric power systems
financial incentives to use renewable energy sources. The Clean Energy Bonds
Act, or S 962, would enable electric cooperatives and other not-for-profit
electricity systems to issue interest-free bonds with the federal government
paying a tax credit to the bondholder. The federal tax credit will enable the
bondholder to reduce the taxes it must pay on the bond. 

"Clean energy bonds can provide electric cooperatives and public power systems
with an incentive comparable to the production tax credits that are available
to the private sector," said Grassley, whose bill was cosponsored by eight
other senators from both parties.

Last year, Congress passed legislation to give investor-owned utilities tax
incentives for renewable generation ranging from solar, geothermal to
open-loop biomass. Grassley said he is hopeful his bill will become part of a
bipartisan energy package the Senate is drafting. American Public Power Assn
has thrown its support behind the Grassley bill as a means to provide
consumer-owned systems renewable energy tax breaks similar to those given to
IOUs.

This story was originally published in Platts Electricity Alert
http://www.electricityalert.platts.com

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