Senate Bill Lacks Energy Credits
Missing support for tax credits could hurt renewables companies with plans for new projects.
Kevin Bullis 02/10/2009
- 3 Comments
The Senate version of the stimulus bill passed today. Now it's on to conference where legislators will try to work out differences between it and the House version of the bill.
One of the most significant differences between the bills, with regard to energy, has to do with provisions related to renewable energy tax credits. Renewable energy companies and those companies that finance them haven't been able to take advantage of tax credits lately, since they haven't been making enough money to have to pay any taxes. Renewable energy companies been suffering as a result, seeing financing dry up and projects stalled.
The House version of the bill contains a provision that would allow companies to get the money from those tax credits anyway--the money would take the form of a government grant. An early version of the Senate bill included a similar provision: a "carry-back" provision that allowed companies to take credits against taxes owed in previous years. But it was stripped from the final version.
There's a lot at stake here. Many renewable energy projects simply won't go forward without some sort of access to tax credits. The current tough times for the fledgling renewable energy industry could continue, but if the tax credits are made available, that could free up funding for new projects.
The Senate finance committee has a run-down of the other differences between the bills.
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BeyondGreen
4 Comments
There could be no better investment in America than to invest in America becoming energy independent! We need to utilize everything in out power to reduce our dependence on foreign oil including using our own natural resources. Create cheap clean energy, new badly needed green jobs, and reduce our dependence on foreign oil. The high cost of fuel this past year seriously damaged our economy and society. The cost of fuel effects every facet of consumer goods from production to shipping costs. After a brief reprieve gas is inching back up. OPEC will continue to cut production until they achieve their desired 80-100. per barrel. If all gasoline cars, trucks, and SUV's instead had plug-in electric drive trains, the amount of electricity needed to replace gasoline is about equal to the estimated wind energy potential of the state of North Dakota. There is a really good new book out by Jeff Wilson called The Manhattan Project of 2009 Energy Independence Now.
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bobgil
1 Comment
Re: Senate Bill on Energy
The reason the renewable energy credits are weakened in the Senate is because the Dem. Majority Leader, Sen. Harry Reid, is a DITHERING OLD MAN (have you seen him?). He is weaker than a wet noodle, possibly because he is a Dem. from a Republican state.
Replace Harry Reid and you might see some meaningful action.
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