House approves extending energy tax credits

John Berger, chief executive officer of Texas-based Standard Renewable Industry, said the extensions of the tax credits will be a boon for the solar industry.

"We are at a critical time period in the solar industry in the country and around the world. We are just starting to see some economies of scale, some prices decreasing in the solar panels," Berger told Reuters. "Having the 8-year extension will absolutely cement in place getting solar to be part of conventional energy."

The news of including the tax credits in the bailout package did push shares of solar energy companies up sharply this week.

The Solar Energy Industries Association said the tax package provides the solar companies with "policy certainty" and said the package is "the most significant federal policy ever enacted for the solar industry."

The American Wind Energy Association said "these tax credits are essential to the continued growth of wind energy, to the economic and energy security of the United States and to a successful beginning in the fight against global warming."

Energy efficiency groups also applauded the bill's approval.

"It would have been unthinkable for the Congress to leave town for the elections having approved this massive rescue plan while ignoring the needs of beleaguered American consumers on Main Street who face spiraling energy costs," said Brad Penney, director of government relations for the Alliance to Save Energy.

Environmentalists have criticized the package, however, for extending tax credits for refineries that process oil from shale or tar sands.

In addition to the energy tax breaks, the Senate bill included tax incentives for other businesses and a one-year fix to the Alternative Minimum Tax so millions of Americans will not be subject to higher income taxes.

(Additional reporting by Russ Blinch; Editing by Christian Wiessner)