Expanded tax credits for renewable energy clear (Oregon) House hurdle

[OKIsItJustMe]

http://blog.oregonlive.com/pdxgreen/2008/02/expanded_tax_credits_for_renew.html

Expanded tax credits for renewable energy clear House hurdle

Posted by The Oregonian February 12, 2008 15:03PM

The House Revenue Committee endorsed further expansion of Oregon's renewable energy tax credits Tuesday, despite the rapidly-growing cost of the program.

The committee sent a newly-amended version of House Bill 3619 to the full House, recommending passage. The legislation includes several provisions designed to make it more attractive to manufacturers of renewable energy equipment such as solar-power components.

Projections indicate the state could grant more than $300 million in renewable energy tax credits over the next five years, the Legislative Revenue Office told the committee last week. Each dollar's worth of tax credits reduces a taxpayer's income tax bill by one dollar. Legislators and Gov. Ted Kulongoski's office say the cost of the credits is worthwhile because the tax breaks are helping to attract large renewable-energy businesses, and the accompanying jobs, to Oregon.

The Legislature nearly tripled the maximum tax credit to $10 million last year, up from $3.5 million. The use of the tax credits was already expanding rapidly before that. The value of the projects getting final approval for the tax credits doubled from 2004 to 2006, to more than $150 million.

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