Energy Efficiency Provisions in S. 3335, the Jobs, Energy, Families & Disaster Relief Act of 2008

July 29, 2008 – The Alliance to Save Energy supports the critical energy efficiency provisions and extensions of the federal efficiency tax provisions that are included in S. 3335, the Jobs, Energy, Families & Disaster Relief Act of 2008, which will be considered by the Senate this week. The S.3335 bill serves to:

• extend the tax credits for energy-efficient existing homes through 2008;
• extend the energy-efficient commercial buildings deduction for five years, through 2013;
• modify the existing energy-efficient appliance credit and extends the credit for three years, through 2010;
• establish a new credit for qualified plug-in electric drive vehicles.  The base amount of the credit is $3,000.  If the qualified vehicle draws propulsion from a battery with at least 5 kilowatt hours of capacity, the credit amount is increase by $200, plus another $200 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours up to 15 kilowatt hours.;
• provides an exemption from the heavy vehicle excise tax for the cost of idling reduction units, such as auxiliary power units, which are designed to eliminate the need for truck engine idling;
• exempts the installation of advanced insulation, which can reduce the need for energy consumption by transportation vehicles carrying refrigerated cargo;
• allows employers to provide employees who commute to work by bicycle fringe benefits to offset the costs of commuting;
• creates a new category of tax credit bonds to finance state and local government initiatives designed to reduce greenhouse gas emissions; and
• provides accelerated depreciation for smart electric meters and smart electric grid systems and would cut the cost of recovery by allowing taxpayers to recover the cost over a 10-year period.