Solar power has been a hot subject and it’s future is not looking so bright. I don’t actually believe that, but that’s what the Industry and the government want us to think. Over the weekend a report came out in regards to the tax credits for alternative energies like solar and wind.
Congress has to renew them before they expire on December 31. These tax credits will help the industry with the plans for expansion, but without the credits solar and wind companies may not be able to make it happen. In fact they may be forced to cut back on many things including capitol investment and payroll.
These tax credits have made it possible for solar to be cost-competitive with other renewable energies. As it is solar energy is the least efficient of the alternative/renewable energy sector (except for ethanol). Many plants that are in the planning stage are at risk because of the sand-bagging by Congress.
Wind power is having the same problem of getting investors. The American Wind Energy Association is predicting that they will lose about 76,000 jobs as well as over $11 billion in investments as a result if Congress doesn’t do something to renew the credits. Greg Wetstone, a spokesman for the association said, “Investors like to know what tax policies apply when they are putting millions of dollars down on a project. There’s a pretty clear history that these projects are less likely to go forward without a credit.”
In the past Congress has let these credits expire three different times and wind installation in those years slowed over 77% each year. Estimates are expected to be at those same levels for 2009 if Congress doesn’t do something for the industries. According to Congressional estimates, the credits are to total $334 million.
Senator Jeff Bingaman, a Democrat from New Mexico said, “These companies are shutting down projects, firing people and it’s Congress’s fault,” the Senator is the chairman of the Senate Energy and Natural Resources Committee. The sad thing is that these clowns are still on vacation including Bingaman, who was one of the main politicians that pushed for vacation over oil drilling in America.
As we all know, Congress has made it quite difficult for these alternative energies to make great advancements because of all the delays and waste of time that the Congressman have done.
In 2006, Congress didn’t come together on a tax-extender deal until December, forcing the IRS to delay processing returns claiming several of the tax breaks. In 2007 Congress again never agreed on extenders until December, causing more IRS disruption, to settle another annual tax crisis, the alternative minimum tax. As a matter of fact, Congress has let these credits to expire 13 times since 1981.
All these delays have caused uncertainty with the industry has to where to do their research and development. At this rate it may be wise for them to head overseas to get it done. There are over 20 countries that offer tax incentives while the United States doesn’t have any. I won’t get into the political side of these tax credits in this post (I’ll save it for another day), but these games of playing with the tax breaks expiration is nothing new and only helps the politicians hide the fact of the ever-growing federal budget deficit.
Renewable energy is the future, why depend on fossil fuels when we can go renewable.~”:
Twitter: billyakerman
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I agree with you completely Lacey. We should be able to make alternative energy work. It will take time so in the meantime, we need to increase drilling in the U.S. to reduce our dependency on foreign oil until we can work towards the future and build these projects.
Renewable Energy got into more focuse in this decade because everyone does not want to depend on Oil..*,