House Ways & Means Okays Energy Tax Credits

The U.S. House Ways and Means Committee recently approved $20 billion in energy tax credits and related financial incentives as part of the Obama administration’s plan to revive the American economy, reports Reuters.

The proposal, which includes $550 billion of government spending and $275 billion of tax cuts, could be approved by mid-February.

The U.S. House of Representatives is also considering making the credits refundable. Instead of saving money on taxes, renewable energy investors would get a direct payment equivalent to the tax credit through a grant program at the Department of Energy, writes United Press International.

Last year, Congress extended the Investment Tax Credit for another eight years as part of the $700 billion stimulus package. The duration of its sister program (Production Tax Credit) was also extended.

In a separate article, Reuters also notes that the administration’s proposed $825 billion stimulus could benefit U.S. manufacturers including General Electric and United Technologies, though they will likely not feel any effects until later this year.