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Obama Proposes Tax Reform, Making Renewables Credits Permanent

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#1 E3 wise

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Posted 25 February 2012 - 05:20 PM

The US Federal Government is making another pitch for business-tax reform, and within that thrust it is underscoring its support for renewable energy.

For renewable energy sectors, the key part of the President's proposal also includes making the temporary tax credits for renewable energy production permanent -- and making it refundable. Doing so will "provide a strong, consistent incentive to encourage investments in renewable energy technologies," according to the Treasury Department. (Here's the press release and full PDF of the proposed business tax reforms.)

This Framework recognizes that, as we expand manufacturing in the United States, the tax code should encourage doing so in way that is sustainable and that puts the United States in the lead in manufacturing the clean energy technologies of the future. This will create jobs here at home and can also have important spillover benefits. Moving toward a clean energy economy will reduce air and water pollution and enhance our national security by reducing dependence on oil. Cleaner energy will play a crucial role in slowing global climate change, meeting the President's goal of producing 80 percent of our nation's electricity from clean sources by 2035.

Renewable energy sectors have shivered over the expiration of the production tax credit; the Section 1603 grant program's expiration at the end of 2011 has been criticized by the solar sector, while wind energy giant Vestas has already warned that without a wind-friendly tax credit it will drop its US manufacturing, resulting in hundreds of layoffs.

Geithner says he will "meet in the coming weeks" with Senate leaders on both sides "to begin the process of building a bipartisan consensus." What seems clear is that tax reform, and a focus on renewable energy, is now squarely on the table as a political football during this presidential election season. And there's still a long way to go until any of this is agreed upon.

From  E3 Wise

I think it is important for people in this forum and others in the Renewable community to focus on sending the message to Washington that we support this proposal.  What do you think?

#2 artistry



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Posted 25 February 2012 - 06:21 PM

Reforming the tax code, is one of the keys to strengthening this country. The renewable energy portion is a very viable aspect. I agee that we should let our voices be heard, as loud as we can. That could make a difference, and would also let them know that people are paying attention, as well are giving their support for the move.  Cheers.

#3 tigerlily78



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Posted 25 February 2012 - 06:59 PM

I think tax incentives for renewable energy is great, and perhaps is the strongest part of the President's proposal. Unfortunately, I think the plan overall is not ambitious enough when it comes to recooping lost revenue or addressing our long term debt.

#4 MakingCents



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Posted 25 February 2012 - 07:41 PM

This seems definitely like a steop in the right directions.  Businesses are alwyas looking for tax breaks plus it will be  a 'sellling point' to investors.  Sort of a look, now we've gone green and we're saving money because of it approach.

#5 E3 wise

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Posted 26 February 2012 - 08:12 AM

In a world where alternative energy only receives 3% of the total incentives from the federal government on energy in this country, it would be nice to see a continuation of money for alternatives.  Will this Congress do anything regarding this issue this year, honestly I doubt it, but look at the President saying he wants to stop incentives for fossil fuel, but make incentives for alternative energy permanent this is a good contrast to the other side which wants to kill alternative energy incentives and make them bigger for fossil fuels.

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