Energy-related provisions in "Emergency Economic Stabilization Act of 2008"

The $700 billion "Emergency Economic Stabilization Act of 2008" that became law on October 3, 2008 contains what is in essence a 2008 Energy Bill. A summary prepared by the United States Senate Committee on Finance explaining the energy-related provisions in the legislation can be found here.

Of specific interest to manufacturers:

• Long-term Extension of Energy Credit. Extends the 30% investment tax credit for solar energy property and qualified fuel cell property, as well as the 10% investment tax credit for microturbines, through 2016. The bill also provides a new 10% investment tax credit for combined heat and power systems and geothermal heat pumps.
• Steel Industry Fuel. The bill adds a credit for coal used in the manufacture of coke, a feedstock used in steel production. The credit amount is $2 per barrel-equivalent of oil, available for facilities that place in service before January 1, 2010. The estimated cost of this proposal is $61 million over 10 years.
• Incentives for Idling Reduction Units and Advanced Insulation for Heavy Trucks. The bill provides an exemption from the heavy vehicle excise tax for the cost of idling reduction units, such as auxiliary power units (APUs), which are designed to eliminate the need for truck engine idling (e.g., to provide heating, air conditioning, or electricity) at vehicle rest stops or other temporary parking locations. The bill also exempts the installation of advanced insulation, which can reduce the need for energy consumption by transportation vehicles carrying refrigerated cargo. Both exemptions are intended to reduce carbon emissions in the transportation sector. The estimated cost of this proposal is $95 million over 10 years.
• Refinery Expensing. The Energy Policy Act of 2005 established a temporary expensing provision for refinery property which increases total capacity by 5% or which processes nonconventional feedstocks at a rate equal or greater to 25% of the total throughput of the refinery. This bill extends both the refinery expensing contract requirement and the placed-in-service requirement for this expensing provision for two years. The bill also qualifies refineries directly processing shale or tar sands for this provision.