Energy Improvement and Extension Act of 2008

Enacted October 3, 2008
The Energy Improvement and Extension Act of 2008 is Division B of the Emergency Economic Stabilization Act (Public Law 110-343). Title II of Division B of the law includes several provisions related to tax credits and exemptions for alternative fuels and fuel-efficient technologies. The table below provides a summary of the relevant provisions.

Section 202

Amends the existing biodiesel mixture and agri-biodiesel production tax credits by: extending the tax credits for one year through December 31, 2009; allowing all biodiesel, regardless of feedstock, to qualify for the $1.00 per gallon mixture incentive (with the exception of co-processed renewable diesel); and adding camelina as a qualified feedstock for agri-biodiesel production.

Section 204

Amends the expiration date for the existing alternative fuel excise tax credit from September 30, 2009, to December 31, 2009.

Section 205

Creates a new tax credit for qualified plug-in electric vehicles (PEVs) purchased between January 1, 2009, and December 31, 2014. The credit amount is determined based on vehicle weight and battery capacity. A phase-out period will be initiated once 250,000 qualified PEVs are sold in the United States.

Section 206

Exempts qualified idle reduction devices from the retail excise tax imposed on heavy-duty trucks.

Section 207

Amends the existing alternative fuel infrastructure tax credit by extending the incentive for one year through December 31, 2010, and adding electricity to the list of qualified alternative fuels.