WASHINGTON – SEIA President and CEO Rhone Resch released the following statement today after President Obama signed into law legislation that provides support to small businesses. The Job Creation and Tax Cut Act of 2010 extends bonus depreciation to cover all of 2010:
"We applaud Congress for passing the small business bill, as well as the President for signing it into law. The U.S. solar industry is largely made up of small businesses including contractors, roofers, electricians, plumbers and manufacturers who operate in all 50 states. This law will help continue growing the clean energy market across the U.S.
"Specifically, extending bonus depreciation eases the economic burden caused by the economy on the solar industry, and better positions us for robust growth in 2011.
"However, other policies that will create new American jobs in the clean energy field and that enjoy bipartisan support remain in limbo. Specifically, the Treasury Grant Program (TGP) in lieu of the investment tax credit has been highly effective at addressing the gap in private tax equity financing.
"If Congress does not extend the TGP that expires in December, it will pass on an opportunity to create tens of thousands of jobs and deploy enough solar to power more than a million homes."
Bonus depreciation allows businesses to recover capital expenditure costs faster by providing a first year depreciation bonus of 50 percent. Bonus depreciation applies to most new business assets, including solar panels. It is worth roughly two percent of the upfront cost for solar projects. The policy was extended for one year in the 2009 American Recovery and Reinvestment Act, but expired at the end of 2009.
Established in 1974, the Solar Energy Industries Association is the national trade association of the U.S. solar energy industry. As the voice of the industry, SEIA works with its 1,000 member companies to make solar a mainstream and significant energy source by expanding markets, removing market barriers, strengthening the industry and educating the public on the benefits of solar energy. Learn more at www.seia.org.