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Thursday, Jul 18, 2024

Federal Budget Law a Plus for Capstone

Capstone Turbine Corp. announced that its personnel worked to pass the federal Investment Tax Credit for microturbines and combined heat and power projects that was extended for four years in the new budget legislation. The tax credit, which applies to purchases of the Van Nuys company’s natural gas-powered microturbines, will be phased out through the end of 2021, dropping from 10 percent, to 8 percent and then to 6 percent in the final year. The tax credit has accelerated deployment of microturbines, the company said. Capstone Chief Executive Darren Jamison said extending the credit is a key component, along with a weak U.S. dollar and high crude oil prices, to help drive revenue growth for Capstone. “We will work with our U.S. based distribution partners to immediately rerun the economics on all pending CHP (combined heat and power) projects to show customers the new tax impact on their project,” Jamison said in a prepared statement. Shares in Capstone (CPST) closed Monday down 2 cents, or just more than 2 percent, to 94 cents on the Nasdaq.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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