Statements on Introduced Bills and Joint Resolutions
Floor Speech
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Mr. President, I am pleased to join with my colleague from Idaho, Sen. Mike Crapo, in introducing the Geothermal Tax Parity Act of 2011. This legislation will modify an existing investment tax credit for geothermal energy authorized under Section 48 of the Federal tax code. Although both solar energy and geothermal energy projects are eligible for an investment tax credit under Section 48, they are not equal. While I am a strong supporter of solar energy technology and support the solar energy tax credit, I am also a strong advocate for having a level playing field when it comes to government incentives. That is why this bill is called the Geothermal Tax Parity Act, because it will create parity in the tax code for these two important renewable energy resources.
This bill would provide geothermal energy with the same 30 percent investment tax credit that is now available to solar energy and fuel cell technologies in Section 48 and extend this 30 percent tax credit for geothermal through December 31, 2016, as it is for these other technologies. Without this legislation, new geothermal energy projects would be allowed only a 10 percent investment tax credit under Section 48. This legislation will create a more level playing field among clean, renewable energy technologies and help stimulate investment in geothermal energy projects.
Geothermal energy can provide a continuous supply of renewable energy with very few environmental impacts. Although the United States has more geothermal capacity than any other country, this potential energy resource has not been widely developed. This is due in large part to the high initial cost and risk involved in locating and developing geothermal resources. Extending the 30 percent tax credit through 2016 will help geothermal developers obtain the financing they need to make investments in exploration and development.
This legislation is identical to a bipartisan companion bill, H.R. 2408, that our colleagues from the Pacific Northwest, Rep. David Reichert from Washington and Rep. Earl Blumenauer from Oregon have sponsored in the House.
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