Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman today said the Senate approved (74-25) a financial rescue package that includes tax incentives that will encourage renewable energy production in New Mexico, creating new jobs and reducing greenhouse gas emissions.   

The bill extends the production tax credit for wind energy until December 2009, and for energy generated by other renewable sources through December 2010.  It also extends the 30 percent investment tax credit for solar energy until 2016, which Navigant Consultant estimates will create as many of 12,000 direct and 7,000 indirect jobs in New Mexico and generate $232 billion in nationwide investment over that eight-year period. 

"The bill contains a robust package of tax incentives for clean, renewable energy and energy efficiency – incentives that I, and many of my colleagues, have worked for since the beginning of this Congress.  These incentives will enable us to become a more energy-efficient nation, wean us off our dependence on fossil fuels, and reduce our greenhouse gas emissions," Bingaman said.

            In addition to the renewable energy incentives, the measure contains tax credits for conservation and efficiency, including:

·         extension through 2013 of the energy-efficient commercial building deduction;

·         extension through 2009 of credits for energy-efficient improvements to existing and new homes;

·         extension through 2010 of energy-efficient appliance credit; and

·         accelerated depreciation for smart electric meters and smart electric grid equipment.

Additionally, the bill extends non-energy tax incentives.  For example, it contains a two-year research and development tax credit critical to our state's high-tech companies, like Intel, that employ thousands of New Mexicans.  And it will enhance federal tax incentives for domestic film and television production, making onshore production even more attractive for film studios.  These provisions fit well with New Mexico's robust state-level tax incentives that have fueled significant growth in film production, particularly in Central and Northern New Mexico.

Among other key provisions, the measure also expands the $1,000 per child tax credit to individuals who earn just $8,500, enabling 25,000 New Mexico children to newly qualify and additional 94,000 to receive a larger credit than under prior law.  It also keeps the alternative minimum tax at bay for taxpayers who were not subject to it in prior years.