Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman today said it appears Congress is finally poised to approve a significant package of tax incentives that will encourage renewable energy production in New Mexico, creating new jobs and reducing greenhouse gas emissions.  The bipartisan proposal, which could get a vote as soon as Thursday, reflects many provisions that Bingaman has developed or championed.

Most centrally, 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. 

            "These wind and solar tax incentives must be in place if we are going to continue to reduce our dependence on foreign oil, lower our greenhouse gas emissions, and continue to expand New Mexico's already robust 'green manufacturing' sector," said Bingaman, who chairs the Senate Energy Committee and is a senior member of the tax-writing Senate Finance Committee.  "We've been trying for nearly two years to prevent these incentives from lapsing, and I believe we finally have the bipartisan support we need to get the job done."

            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.

"Because this bill extends and improves tax incentives for many of New Mexico's key industries – including clean energy, film production, and high-tech – this bill is a jobs bill for New Mexico," said Bingaman.  "The tax incentives we have developed will enable New Mexico employers of all sizes to prosper and grow in our state."

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.