[Congressional Record Volume 152, Number 48 (Thursday, April 27, 2006)]
[Senate]
[Pages S3699-S3700]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SECURING AMERICA'S ENERGY INDEPENDENCE ACT

  Mr. SMITH. Mr. President, I rise today to introduce the Securing 
America's Energy Independence Act of 2006. This bill is designed to 
extend the investment tax credits for fuel cells and solar energy 
systems in the 2005 Energy Policy Act through 2015.
  Having reliable, clean energy is fundamental to economic prosperity, 
our national security, and protecting the environment. The Energy 
Policy Act of 2005 encourages homeowners and businesses to invest in 
solar energy and fuel cell technologies through investment tax credits. 
That law established a tax credit of 30 percent for investments in fuel 
cells, capped at $1,000, and a tax credit of 30 percent for investments 
in solar systems, capped at $2,000.
  However, these credits will expire after 2 years, and therefore are 
too short lived to encourage significant market penetration or to 
stimulate expansion of manufacturing for solar energy or fuel cell 
technologies. Installations of solar energy or fuel cell systems 
require lead times of a year or more, and manufacturing expansion 
requires a development schedule of 3 to 4

[[Page S3700]]

years, similar to conventional powerplants. Financing of new projects 
is also more complex than for conventional powerplants because the 
lending industry is less familiar with these technologies.
  Accordingly, I have proposed to extend the tax credits for an 
additional 8 years. My legislation also would alter the cap on 
residential solar credits to be based on system power, as opposed to 
cost, and would allow the credits to be taken against the alternative 
minimum tax.
  As the market for fuel cell and solar technologies continues to grow 
overseas, long-term incentives are an essential tool to spur domestic 
investment and job creation. Extending these incentives for residential 
and business investments in fuel cell and solar energy technologies 
will generate quality American jobs in manufacturing, construction, and 
installation across the United States.
  Our legislation addresses energy independence and environmental 
concerns, as well as job creation, with the power of American 
technology and ingenuity. I am pleased that Senators Menendez, 
Lieberman, Snowe, Jeffords, Kerry, Cantwell, Salazar, and Clinton have 
joined me as original cosponsors of this legislation. In light of 
increasing concerns about the security and affordability of energy 
supplies, I urge favorable consideration of this bill.

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