Bill for a 15 percent PV tax break before Congress for second year

A historic solar energy bill, first introduced in the US Congress as part of last year’s budget, refuses to go away and will confront American lawmakers again in the budget request for FY2001. 

If passed before the congressional break in October, the Residential Solar Energy Act would mean a 15 percent tax credit on residential rooftop PV systems. But Scott Sklar, president of the Solar Energy Industries Association (SEIA), which is spearheading the drive, is expecting »a long and tedious process.« 

Sklar says election year politics is the key to the success or failure of the legislation. Although the House and Senate versions were sponsored by Republicans who have a majority in Congress, the rest of the Republican lawmakers might not be inclined to support a bill which could give Vice President Al Gore, certain to be the Democratic candidate for president and seen as the environmental choice, any political ammunition. On the other hand, problems such as the high cost of heating oil could lead the Republicans to see the legislation as a vote-getter. The Clinton Administration is also pushing for the 15 percent tax credit in its FY2001 budget proposal. The bills, known as HR1465 in the House and S1634 in the Senate, were not dealt with last year since the Congress had decided not to look at any new tax legislation. 

»Having Republican co-sponsors in both the House and the Senate, and a push by the Administration, makes passage possible,« says Sklar of the bill, which would provide up to a $2000 USD tax credit for residential rooftop PV systems and installation. The tax credit would initially be available until 2006, and consumers could still take advantage of local and state incentives. But despite moves in Germany and Japan towards more PV incentives, Sklar is aware that in the US such legislation is an uphill battle. »Most members of congress don’t care about PV,« he says bluntly. Still, Sklar thinks the bill might garner enough support to get the US on the incentives bandwagon. »It would be the first time in probably 30 years there has been a domestic incentive for solar,« he says. However, Sklar remains guarded about the chances for the PV legislation. »It’s a solid 50/50,« he says. »We’ll know when we know.«

To view the proposed legislation, go to 
http://thomas.loc.gov 
and search using the bills’ numbers.