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CHP Investment Tax Credit Signed Into Law

On October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act of 2008. In addition to authorizing the United States Secretary of the Treasury to spend up to $700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation's banks, the law extends existing tax credits for renewable energy initiatives—including cellulosic ethanol and biodiesel development, and wind, solar, geothermal and hydro-electric power—and creates a new 10 percent investment tax credit (ITC) for CHP and waste energy recovery systems. The CHP ITC is a 10 percent tax credit for the first 15MW of a system up to 50MW. The CHP ITC extends from the date of enactment through December 31, 2016. The energy tax piece, including the CHP ITC, is in Division C of the final bill, HR 1424. More about the new or extended energy tax credits is available here.