Obama Proposes Tax Reform, Making Renewables Credits Permanent
Posted 25 February 2012 - 05:20 PM
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?
Posted 25 February 2012 - 06:21 PM
Posted 25 February 2012 - 06:59 PM
Posted 25 February 2012 - 07:41 PM
Posted 26 February 2012 - 08:12 AM
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