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Monday, August 07, 2006

News From My Backyard: Oregon Governor Wants to Increase Business Energy Tax Credit, Urges Move Towards Hydrogen Economy

Businesses that invest in alternative energy sources and energy efficiency should get increased tax credits, Gov. Ted Kulongoski told advocates of a group promoting hydrogen energy sources, last Monday.

Kulongoski, who is running for re-election, told the Northwest Hydrogen Conference that he wanted Oregon to move toward a hydrogen economy, and to become a center for fuel-cell production, according to an AP report.

The proposed increase [to Oregon's Business Energy Tax Credit] would cost the state an estimated $6.5 million in the 2009-11 budget cycle but could also translate to more business investment and less reliance on fossil fuels, Michael Grainey, the state's energy director, told The Oregonian.

The governor's proposal would increase the maximum tax credit for an energy project from $3.5 million over five years to $10 million over five years. It would also allow companies to claim a tax credit for 50 percent of the project cost, up from 35 percent under current law.

Oregon's Business Energy Tax credit has been very succesful at spurring investment in energy efficiency and distributed renewables in Oregon. Kulongoski's proposal would make this key incentive even stronger and would make investing in solar photovoltaics, energy efficient lighting upgrades, solar hot water and other energy efficiency and renewable energy improvements an attractive venture for Oregon businesses.

Info on the Business Energy Tax credit can be found here and here

[I missed this short article in the Oregonian, but it came to me via Autoblog Green]

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