Evergreen Solar, Energy Conversion Surge on Tax Bill

By Christopher Martin

Sept. 24 (Bloomberg) -- Energy Conversion Devices Inc., Evergreen Solar Inc. and Akeena Solar Inc. surged after the U.S. Senate passed a bill that would extend tax credits on solar power installations through 2016.

Energy Conversion, based in Rochester Hills, Michigan, climbed $7.64, or 14 percent, to $64.10 at 9:31 a.m. in Nasdaq Stock Market composite trading. Marlboro, Massachusetts-based Evergreen rose 58 cents, or 10 percent, to $6.33, and Los Gatos, California-based Akeena gained 93 cents, or 22 percent, to $5.20 a share.

The Senate yesterday passed a $17 billion tax package that would allow homeowners, businesses and utilities to deduct a portion of the cost of new solar systems from income tax. The House was expected to vote on the measure today and President Bush has indicated that he would sign it, according to The White House Office of Management and Budget.

The legislation, part of a tax bill valued at more than $100 billion, also extends incentives for wind power production for one year and for geothermal and biomass energy for two years. The tax credits were set to expire at the end of this year.

Shares of most U.S. and Chinese solar manufacturers also rose. Phoenix-based First Solar Inc., the world's largest maker of thin-film solar modules, climbed $10.51, or 5 percent, to $221.40. American depositary receipts of China's Suntech Power Holdings Co. rose $2.01, or 5 percent, to $42.46 and Trina Solar Ltd. gained $2.27, or 8.3 percent, to $29.69.

To contact the reporter on this story: Christopher Martin in New York at cmartin11@bloomberg.net.