Thursday, March 4, 1999
1:00 - 2:30 p.m., 124 Dirksen Senate Office Building

You are invited to a briefing discussion on the $3.6 billion in targeted tax incentives over five years proposed in the Administration's fiscal year 2000 budget to spur adoption of emerging energy technologies and technological innovation in key U.S. economic sectors. The incentives are part of the Administration's proposed Climate Change Technology Initiative, which also includes approximately $1.4 billion in fiscal year 2000 spending for clean energy technology research, development and deployment.

The speakers at the briefing will include:

• Leonard Burman, Deputy Assistant Secretary for Tax Analysis, U.S. Treasury

• Brig Pari, Tax Counsel, U.S. Senate Finance Committee

• Francis Grab, Tax and Trade Counsel to U.S. Rep. Robert Matsui (D-CA)

• Reid Detchon, Co-Director, American Bioenergy Association

The speakers will discuss the Administration's proposed tax incentives and their prospects for enactment. The Administration modified its Climate Change Technology Initiative tax package in response to comments by industry and other interested stakeholders after proposing a somewhat different version as part of its budget last year. The proposed tax incentives seek to encourage greater use of energy efficient and renewable energy technologies in electric power generation, vehicles, buildings and industrial processes.

To stimulate greater production of electricity from renewable sources, the Administration proposes a five-year extension of the current 1.5 cent per kilowatt hour tax credit for electricity produced from wind and biomass (an extension of this credit has been introduced with strong bi-partisan support). In addition, the proposal would expand the types of biomass sources eligible for the tax credit to include a range of agricultural and forest-related sources. The proposal also would provide a 1.0 cent per kilowatt hour tax credit for electricity produced by co-firing biomass in coal plants.

For the transportation sector, the Administration proposes extending the current maximum $4,000 tax credit for purchase of qualified electric vehicles through 2006 and providing new tax credits ranging from $1,000 to $4,000 for purchase through 2006 of highly fuel-efficient hybrid automobiles, minivans, sport utility vehicles, and pickup trucks.

For buildings, the Administration's proposal includes tax credits for purchases of new homes that meet energy efficiency standards significantly more stringent than of the International Energy Conservation Code (IECC) standards. It also includes tax credits for purchase of residential and commercial building equipment for heating or cooling that meet specified energy efficiency criteria and a new tax credit for investment in rooftop photovoltaic and solar water heating systems.

The Administration's package includes an 8-percent tax credit for investment in qualified combined heat and power (CHP) systems that produce electricity and/or mechanical power as well as thermal energy from the same energy source. Such systems make use of thermal energy that would otherwise be wasted and therefore, greatly increase the energy efficiency of industrial processes.

The briefing is free and open to the public. No advance reservations are required. For further information, please call EESI at (202) 662-1886.