Sununu Backs Tax Credits for Renewable-Energy Use
ENERGY
Union Leader
Matt Negrin
Boston University Washington News Service
3 April 2008
WASHINGTON — Republican Sen. John Sununu on Thursday threw his support behind a bipartisan bill aimed at encouraging the use of renewable and efficient energy sources by offering billions of dollars in tax incentives.
The bill’s sponsors also agreed to accept a Sununu provision that would give a 10 percent tax credit for the purchase of wood-pellet stoves — heaters that burn more efficiently than gas stoves and are becoming increasingly popular in New Hampshire. Sununu had advocated the tax break in previous legislation.
The bill, sponsored by Sens. Maria Cantwell, D-Wash., and John Ensign, R-Nev., also would extend the existing tax credit for renewable electricity generated from alternate sources, including solar, wind and biomass. At a Senate press conference, Cantwell said the bill would cost $6 billion over 10 years.
“The bill makes good sense for New Hampshire, where our wood, biomass and wood- pellet industries here have provided jobs across the state,” said Sununu, who added himself as a co-sponsor of the legislation, which he called “commonsense.”
The Granite State needs the incentives for the wood pellets, Sununu said, because it cannot benefit as much from other energy sources as other states do, such as western states that make ample use of wind energy.
Wood pellets, a form of biomass, are a dense fuel made from sawdust that can be efficiently combusted because of their uniform size and shape. They have gained popularity in Europe, which burns 8 million tons of pellets a year, because they are seen as a practical way of limiting the effects of climate change.
The provision for the wood-pellet stoves was praised by Steve Walker, president of New England Wood Pellet in Jaffrey, who said he is “grateful for Sen. Sununu’s dogged determination in securing a modest tax credit provision for high-efficiency, clean-burning biomass heating appliances,” according to a release from the senator’s office.
Many senators said the legislation is necessary to move the United States off of its dependence on foreign energy sources. If it is passed, an existing deadline would be extended through 2009 for taxpayers to claim credits for using renewable and clean energy sources, which also include geothermal, small irrigation power, landfill gas, trash combustion and hydropower.
What makes the legislation somewhat unusual is its support from both parties; six Democrats and 14 Republicans have added their names to it. Cantwell and Ensign, flanked by a handful of senators from both parties on Thursday, praised the support and said it represents an overdue cause.
“The legislation provides an opportunity for Democrats and Republicans to work together
and enact legislation to further extend incentives for individuals, families and businesses to use renewable energy sources,” Sununu said.
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