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THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release January 30, 1998

TAX CREDITS FOR SOLAR ENERGY

As part of a $6.3 billion package of tax and research incentives for energy technologies to help combat global warming, the Clinton-Gore Administration is proposing tax credits of up to $2,000 for the installation of rooftop solar energy systems. This proposed incentive will help achieve the President's goal of one million solar roofs by 2010.

The Solar Tax Credit means:

Savings for Businesses and Homeowners - The investment tax credit will be for 15 percent of the cost of a new rooftop solar unit, up to $1,000 for hot water systems and $2,000 for photovoltaic systems.

Reductions in Greenhouse Gases - Meeting the target of 1 million solar roofs will cut emissions by 1.8 million metric tons by 2010, equivalent to the amount produced by 850,000 cars.

A Market Boost for Renewable Energy - The five-year tax credit will spur demand for solar energy systems, bringing down their cost to drive future market demand and help manufacturers tap a booming global market for clean, renewable energy.

Progress Toward One Million Solar Roofs - In June, President Clinton said the federal government would work with businesses and communities across the country to install 1 million solar rooftop units by 2010. Just seven months later, the initiative is well ahead of schedule. Already, states and utilities have announced plans that collectively aim to install half a million solar units on U.S. roofs.

A Safe Environment and a Strong Economy - The proposed solar tax credit is one component of a five-year $6.3 billion package aimed at spurring the development and use of energy-saving technologies and renewable energy sources. This investment will help The United States reduce greenhouse gas emissions while creating new jobs and seizing new economic opportunities here and abroad.

The proposed solar tax credit would be available for rooftop systems put in service beginning January 1, 1999. It would extend through 2003 for water heating systems and 2005 for photovoltaic panels. Systems used primarily to heat swimming pools would not qualify.