WASHINGTON-- The fuel cell industry asked Congress today for a long-term extension of the investment tax credit for businesses and households that install fuel cells.

"An eight year extension of the tax credits...will provide certainty and stability for purchasers, stimulate cost reduction and supply chain interest, and send a positive signal to capital markets," said Robert Rose, Executive Director of the US Fuel Cell Council, the industry trade association.

Testifying to the Ways and Means Subcommittee on Select Revenue Measures, Rose added, "this committee showed commendable leadership in approving a variety of tax incentives in 2005 to encourage the deployment and early adoption of fuel cells and related infrastructure." Rose said more than 30 fuel cell products are on offer from USFCC member companies.

"The credit has begun to do its job," Rose said, but it is scheduled to expire after 2008. He endorsed H.R. 550, bipartisan legislation introduced by Reps. Mike McNulty (D-NY) and Dave Camp (R-MI) with 54 cosponsors, to extend the credit and make other improvements.

Rose also asked the Committee to
-- Examine the adequacy of the current $1,000 per kilowatt cap "which some companies report is insufficient to open markets nationwide for their products."

-- Signal the most inclusive interpretation of the credit.

-- Clarify the ability to transfer or "trade" the value of the fuel cell ITC.

-- Modify the treatment of the credit under the Alternative Minimum Tax.

-- Explicitly provide eligibility for systems located in US territories.

-- Provide credits for emerging hydrogen energy infrastructure.

Fuel cells make electricity electrochemically, without combustion, in an efficient and environmentally clean process. The US Fuel Cell Council is a trade association of more than 105 members spanning all segments of the industry.