NEMA Motor Tax Credit Included in Senate Tax Bill (S. 1639)
An advanced motor technology tax credit promoted by the National Electrical Manufacturers Association (NEMA) has been included in the recently introduced Senate tax bill S. 1639, the Expanding Industrial Energy Efficiency Incentives Act. Senator Jeff Bingaman (D-NM), Chairman of the Finance Subcommittee on Energy, introduced the bill before Congress adjourned for its August recess.
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 for the purchase of more efficient products.
“I am thrilled that the tax credit has been included in the bill,” said NEMA President and CEO Evan R. Gaddis. “These newer, high end technologies will provide enormous energy savings in the industrial sector.”
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.
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