Rep. Chris Ross (R-Chester) this week announced the introduction of House Bill1964, the Alternative Energy Investment Bill, that creates a tax credit in-state businesses could use to offset investments into their capital equipment costs for producing alternative fuels, alternative fueled vehicles, and alternative energy equipment.

The Renewable Energy Tax Credit would allow eligible businesses a tax credit equal to 15 percent of the cost of capital equipment directly related to their trade. Once qualified by the state's Department of Revenue, a business would have the option of applying the tax credit to any of the taxes that may be due under Article III (Personal Income Tax), Article IV (Corporate Net Income Tax), or Article VI (Capital Stock and Franchise Tax).

The total amount of tax credit that any company could claim in any fiscal year is $15 million.

The legislation directs the Department of Revenue to establish specific guidelines for the application of the tax credit and requires the Department of Environmental Protection to establish eligibility criteria for businesses.

In 2004, Ross authored legislation in the House signed into law that mandates 18 percent of energy sold by electric energy suppliers in Pennsylvania will be from alternative energy sources in 15 years.

9/23/2005