Federal bill offers tax credit for idle reduction equipment

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A bill that would give a tax credit for buying idling reduction equipment has been referred to a U.S. Senate committee. Sen. Jeff Bingaman introduced SB 2748, the Enhanced Energy Security Act of 2006, on May 4; the New Mexico Democrat’s bill was referred to the Committee on Energy and Natural Resources after picking up 11 co-sponsors.

The proposal would extend alternative fuel, efficiency and renewable energy tax provisions passed last year, Bingaman said when introducing the bill. “If we extend these tax incentives through 2010 now, we will see a great increase in their usefulness in an industry that needs a few years lead time to plan and build major energy projects,” Bingaman said.

The bill’s provisions include:

  • Creation of a 35 percent tax credit for manufacturers for retrofitting or setting up manufacturing facilities to make fuel-efficient vehicles;
  • Introducing a 15 percent tax credit for businesses that purchase more than 10 fuel-efficient vehicles annually; and
  • Encouraging alternative fueling stations by expanding the current 30 percent tax credit to 50 percent, and allowing it to be operative until the end of 2010.