Skip to Content

Tax Cut Extension to Bolster Renewable Energy

The Senate version of the tax cut bill includes incentives to help solar and wind projects, biofuels
December 10, 2010

Last night the Senator Harry Reid introduced a bill designed to extend the Bush-era tax cuts—the ones that Washington has been abuzz about all week. The bill (pdf) is in line with a deal that President Obama made with Republicans, which would extend the tax credits to the wealthy, as well as the middle class, in exchange for a package of incentives that Democrats want, including a payroll tax reduction and an extension of unemployment insurance benefits. It also includes something the original deal didn’t have—an extension of a popular grant program for solar, wind, and other renewable energy projects.

The program, established under section 1603 of the Recovery Act of 2009—and often referred to as the 1603 grant program—gives grants instead of tax credits that had been previously authorized to renewable energy project developers, which makes it much easier to get financing. The program had required construction to start on renewable energy projects by the end of this year—a deadline that came too soon for many projects mired in lengthy approval processes. Without the new extension of the grant, financing for renewable energy projects would be cut in half, according to one estimate (pdf).

The bill also extends almost a dozen energy-related incentives programs, including production credits for biodiesel, tax credits for energy efficient home manufacturers, and ethanol subsidies.

Keep Reading

Most Popular

What to know about this autumn’s covid vaccines

New variants will pose a challenge, but early signs suggest the shots will still boost antibody responses.

DeepMind’s cofounder: Generative AI is just a phase. What’s next is interactive AI.

“This is a profound moment in the history of technology,” says Mustafa Suleyman.

Human-plus-AI solutions mitigate security threats

With the right human oversight, emerging technologies like artificial intelligence can help keep business and customer data secure

Next slide, please: A brief history of the corporate presentation

From million-dollar slide shows to Steve Jobs’s introduction of the iPhone, a bit of show business never hurt plain old business.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.