The National Electrical Manufacturers Association (NEMA), which represents approximately 450 companies that manufacture products used in the generation, transmission and distribution, control, and end-use of electricity, has sent congressional leadership a letter calling upon congress to pass comprehensive energy tax incentive legislation. Throughout this year, congress has been unable to put partisan politics aside and pass comprehensive energy tax legislation. Many of the widely-used tax incentives will expire at the end of the year; therefore, to benefit the economy and the environment, Congress must pass legislation that can be signed into law.

Sound energy legislation needs to contain an extension through 2013 of the energy efficient commercial buildings tax deduction, which provides commercial building owners and homeowners with incentives to spur investment in these environmentally friendly technologies. Specifically, this performance-based deduction assists building owners in offsetting the higher costs (with a cap) for energy efficient lighting, HVAC, and building envelope investments in new and renovated buildings only when energy consumption is reduced by 50 percent. The commercial buildings tax deduction will provide benefit to the economy through job creation and by spurring investment in plant and equipment. Currently, this deduction is set to expire at the end of this year, and Congressional action is needed now to ensure the continuity of planning and construction for buildings in the U.S. is maintained.

Also, this legislation must include a provision for a transitional tax credit to encourage investment in energy-efficient electric motors. Because 40 percent of the electricity consumed in the U.S. is consumed by these motors, the potential reduction in carbon emissions is tremendous, but only if users buy the new motors. In 2010, a new federal standard mandates that many new motors must meet efficiency standards. However, without an incentive to offset the increased cost of these energy-efficient motors, consumers will chose to fix their old inefficient motors, rather than purchasing a new energy-efficient motor. If this tax credit is not adopted, neither savings in energy consumption nor carbon reduction will be accomplished.

Finally, truly comprehensive energy legislation needs to address Smart Grid implementation and adoption by decreasing the depreciable life of qualifying Smart Meters and Smart Grid technologies installed by a utility to 15 years. This is a small step Congress can take to move America to forward in large-scale adoption of the Smart Grid.

The manufacture and installation of more energy-efficient products will move America toward less consumption of energy, fewer carbon emissions and an overall more efficient use of our resources. Such technologies can reduce operating costs, create construction jobs, expand and shape markets for green products and services, improve occupant productivity and optimize life-cycle economic performance.

Without Congressional action, U.S. investment and potential energy savings will be lost. Please use the provided link to send a note to your member of congress to voice your support for energy tax legislation.

This entry was posted on Friday, September 5th, 2008 at 11:02 am and is filed under Politics .