Sept. 9, 2009: Motor Tax Credit Included in Senate Tax Bill
September 9, 2009
ROSSLYN, Va. - The National Electrical Manufacturers Association (NEMA) announced that an advanced motor technology tax credit promoted by NEMA has been included in Senate bill S. 1639, the Expanding Industrial Energy Efficiency Incentives Act. Sen. Jeff Bingaman (D-N.M.), chairman of the Finance Subcommittee on Energy, introduced the bill.
This tax credit provides $120 per horsepower to original equipment manufacturers and end-users for the substitution of advanced motor systems with adjustable speed capability, like permanent magnet, electronically commutated, or switched reluctance motors, as well as other technologies as determined by the Secretary of Energy in redesigned equipment and appliances. The tax credit is estimated to provide between $400 and $600 million in direct tax incentives.
“I am thrilled that NEMA’s advocated tax credit has been included in the bill. This tax credit will greatly assist our motor manufacturers, especially during these tough economic times,” said NEMA President and CEO Evan R. Gaddis. “Not only will it encourage the adoption of NEMA member products, but these newer, high-end technologies will provide enormous energy savings in the much-needed industrial sector.”
NEMA said that S. 1639 is likely to be adopted into the Senate’s comprehensive energy bill, which also contains NEMA’s “crush for credit” motor rebate program and NEMA’s motor assessment.
Publication date: 09/07/2009