Senate Gives Final Approval To Business Tax Credit For Purchase Of Fuel Cells

Albany, N.Y.-- In an effort to further encourage the use of alternative energy sources, in particular emerging fuel cell technology, the New York State Senatehas givenfinal legislative approval to legislation sponsored by Senator George H. Winner, Jr. (R-C, Elmira) that would provide a state tax credit to businesses purchasing commercial fuel cell generating equipment.

"Emergency electric generators become increasingly necessary as our society becomes more and more reliant on computers, cell phones and other modern technology susceptible to natural disasters, terrorist attacks and the unpredictability of the power grid," said Winner. "The bulk of today’s backup generating power is provided in the form of lead acid batteries. Fuel cells offer a cleaner, environment friendly, efficient, effective and reliable source of power for electric generators. This legislation encourages the use of fuel cells by helping businesses offset the cost of investing in fuel cell technology."

Current state law provides a $1,500 tax credit for the purchase of residential fuel cell electric generating equipment.

If enacted, Winner’s legislation would provide a similar $1,500-per-unit tax credit for the purchase of commercial fuel cell generating equipment.

Winner said that fuel cell technology has found a viable market in providing backup power for cell towers, but that the technology could prove valuable on a more widespread basis throughout business and industry. He said that fuel cells offer a number of advantages over traditional lead acid batteries, including that they:

> are more efficient and environmentally friendly;

> are easier to test to ensure their reliability;

> offer a more predictable performance and run time; and

> can operate in a broad range of environments.

"We know that our nation as a whole needs to become more focused on lessening our dependence on traditional, nonrenewable energy sources," said Winner. "This measure would play a small part here in New York State by encouraging investments in fuel cell technology. It encourages us to rethink the future of energy."

The legislation now goes to Governor George Pataki to be signed into law.