Tax Deal Currently Excludes Clean Energy Grants

[Rick Rowlands]

More proof that a real market for renewable energy does not exist.   Government subsidy of any industry is not good policy.

[irishbobcat]

Tax Deal Currently Excludes Clean Energy Grants




The Obama administration and congressional Republicans are working out a compromise on tax cuts that is so far leaving out the renewal of an important clean energy incentive provision. Cash grants made available to clean energy projects through the federal stimulus (section 1603 grants) helped save 55,000 wind industry jobs and helped double the number of jobs estimated to exist in the solar industry. Renewing the grants, which are set to expire at the end of the month, would help create nearly 50,ooo new jobs in 2011 for the two industries. "This is not a program that has just benefited blue states," said Solar Energy Industries Association president Rhone Resch. "It's a program that has benefited all states. They [in Congress] need to put their partisan bickering aside ... to ensure that these industries continue to grow."

Representative Ed Markey (D- MA) warns that failing to renew Section 1603 grants would kill tens of thousands of jobs, as well as destroy "the only effective federal support mechanism for renewable electricity."