News: Enhanced Energy Tax Credits Support Clean Energy Projects for Industry

New federal legislation expanding business energy tax credits for energy efficiency and renewable projects can make it more cost-effective for U.S. industrial companies to implement combined heat and power (CHP) and geothermal technologies, according to the Information Technologies Program of the Department of Energy.

The Energy Improvement and Extension Act of 2008, included in the recently enacted Emergency Economic Stabilization Act, enhances tax incentives for renewable and energy efficiency technologies. The law establishes a new 10 percent investment tax credit for CHP systems and geothermal heat pumps; extends existing tax credits for solar energy, fuel cells, and micro-turbines; increases the credit amount for fuel cells; and extends eligibility for a business energy tax credit for commercial, industrial, and utility sectors.

The new law also extends the tax deduction by five years for energy efficient commercial building improvements made to heating, ventilating and air conditioning, interior lighting, and hot water systems. For additional information, see the ITP news article. Learn more about financial resources offered by ITP and other entities by reading the Energy Matters article, "Financial Opportunities Help Advance New Technologies."

This story was featured in the November 2008 newsletter