On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the "Act"). The Act contains a myriad of provisions, including extending the Bush-era tax rates, and is expected to have an $858 billion impact. It passed 81-19 in the Senate and 277-148 in the House.

The Act extends several key tax incentives which help to promote the clean technology sector. Many of the energy incentives extended by the Act were first put into action by the American Recovery and Reinvestment Act of 2009, more widely known as the "Stimulus Package." However, some date back further, like the tax incentive for use of ethanol in fuel, which dates back to the American Jobs Creation Act of 2004. The tax incentives offered in the Act serve to create jobs in clean technology, reduce U.S. dependence on foreign oil, incentivize the move towards efficient and clean production of energy and alternative fuel sources, and incentivize the use of energy-efficient products.