SEMI Urges Congress to Extend Solar Tax Credits

In a hearing held by the Small Business Committee of the House of Representatives on Sept. 11, SEMI, a representative for semiconductor, display, MEMS, photovoltaic, and other related industries, urged Congress to immediately reinstate the R&D tax credit and to pass a long-term extension of the investment tax credit (ITC) for solar energy. The R&D tax credit expired Dec. 31, 2007, and the solar energy ITC is set to expire at the end of the year. In August, the ITC extension failed to pass for the eighth time (see: Solar Incentive Tax Credit Bill Fails). Leo Berlinghieri, CEO and president of MKS Instruments, testified on behalf of SEMI in support the extension and added, “The R&D tax credit has a long history of strong bipartisan, bicameral support, and it is unfortunate that is was allowed to expire eight months ago. If extended, the solar energy ITC is expected to create almost 40,000 more jobs and $8 billion in investments in 2009,” noted Berlinghieri, referencing data from a Navigant Consulting study. “If it is not extended, those jobs and investments will go elsewhere.” Because of concerns about a possible lapse of the solar ITC, SEMI sent a letter to the leadership of the Senate and the House of Representatives urging that this credit be extended before adjournment which is scheduled for late September. “Other nations have very generous incentives for solar energy and are leading in investment in this area,” said Victoria Hadfield, president of SEMI North America. “Now is the time to extend the ITC for solar energy. Failure to do so will ensure that these investments are made overseas.”