MURRIETA, Calif., Feb 22, 2008 /PRNewswire-USNewswire via COMTEX/ -- The White House 2008 Economic Stimulus Package contains a 50% bonus depreciation and increased Section 179 expense provisions that could provide significant economic benefits for certain renewable energy projects that are acquired and placed in service in 2008. Along with changing State Rebate and Federal Tax Incentives programs, residential, commercial and public sector decision makers need to engage professional assistance and move quickly to acquire energy efficiency and sustainable energy systems for the best price.

The Stimulus Package does not extend the Federal Investment Tax Credit (ITC: 54.01, +0.21, +0.39%). Although efforts are underway to gain such an extension, the ITC, that has been in existence since January 1, 2006 will expire December 31, 2008. The ITC now rewards consumers with a 30% tax credit on all technologies that promote a form of solar energy. There is no cap on the amount of the credit for business users and there is a $2,000 cap for residential users. The new energy bill (H.R. 6) will roll the credit back to the former 10% level for businesses and be discontinued for homeowners at the end of 2008 unless a new extension is won.

The 50% Bonus Depreciation, effecting commercial property, needs to be evaluated against a customized pro forma to meet specific objectives. The new Section 179 rule raises the expense from $112,000 to $250,000 for qualified capital investments up to $800,000.