Before leaving on August recess, Senator Bingaman (NM) introduced a bill, S. 1639, the Expanding Industrial Energy Efficiency Incentives Act. This bill includes the NEMA-advocated advanced motor technology tax credit. What makes this bill even more promising is that, Senator Jeff Bingaman is the Chairman of the Finance Subcommittee on Energy, so he has the authority to push this 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 for the purchase of NEMA member products.
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.