An extension of critical clean energy tax incentives for renewable energy and energy efficiency has now passed in both the Senate and the House and is headed to the office of the President for final signature! This package (the Senate amended version of HR 6049) was attached to the emergency financial rescue package which was passed 263-171 by the House on October 3.

Passage of this package of tax incentives will benefit renewable energy technologies such as wind, solar, geothermal and energy efficient appliances and automobiles. It did not come without a cost, however. The clean energy provisions in this bill included an extension of the production tax credit (PTC) until January 2010 and an extension of the investment tax credits (ITC) for eight years (this covers solar, geothermal and others).

In the final negotiations to get a bill through the Senate, a handful of “dirty fuels” provisions were tacked on that provide financial incentives for the refining of tar sands and oil shale and programs that support liquid coal. With what is hoped will be a stronger pro-environmental majority in the next congress, environmentalists plan to work to reverse or mitigate these harmful proposals.

Despite the “dirty fuel” measures, the Sierra Club’s Melinda Pierce said, “Passing these renewable energy tax incentives for wind and solar represents one of the most important ways America can enable the transition to a clean energy economy. Supporting investment in these clean energy technologies will create new high wage American jobs, save consumers money on their energy bills and reduce global warming pollution.”