When President Bush signed the Energy Act into law last December, the United States took a giant step forward to increasing the fuel efficiency of America’s vehicles by 2020. It also took a step back to helping America’s renewable energy potential by not extending federal tax credits for wind and solar installations. In an effort to find room for these breaks, the industry was hopeful that an economic stimulus package brought to the Senate today might include those forgotten incentives. Unfortunately, the legislation did not address them.
The Senate Finance Committee included measures to extend the Production Tax Credit (PTC) for renewable energy through the end of the 2009 in its version of an economic stimulus package last week. That package was voted down yesterday in the senate as a motion to invoke cloture failed. Under the Committee’s bill, wind companies would have received a continued tax credit of 2 cents per kilowatt-hour of electricity generated, for each new wind turbine that goes into operation through 2009. The tax credit, which also would have applied to electricity from solar, geothermal and other sources as well as energy-efficiency rebates, would have cost approximately $5.5 billion.
$5.5 billion. That’s all that would have been needed to continue America’s growth in the renewable energy sector; something that did not have to come from vital programs - but instead could have been easily procured by repealing an existing tax break to oil companies. Which is odd that should matter since oil companies like Exxon enjoyed their finest profits this year.
So, the U.S. will continue to play catch-up with the rest of the world. Eventually, the tax credits will be returned. The Solar Energy Industries Association plans on pursuing other opportunities to include the credits in future legislation. In the meantime, it’s business as usual for America’s energy infrastructure.
One Comment
This is just what I would expect. “W” certainly doesn’t want to upset his friends in the oil or coal industries. Meanwhile, if we’re going to make any progress in alternative energy, we’re going to have to do it without significant help from the government.
When the people lead, leaders follow.