Once you get beyond the collective rage about the $700B financial bailout by Congress and the President, you should look to see they threw in some smart tax incentives in the law that will help decrease our dependence on foriegn oil.
Congress has repeatedly tried, and failed, since last December to extend tax incentives for production of renewable energy that recently expired. Now, they’re back, and some are better than before.
Help is on the way for green companies producing electricity from wind, solar and tidal energy. There’s a one-year production tax credit for wind, and an eight-year production tax credit for commercial and residential solar. The disparity doesn’t make sense, but my guess is the next Administration will go back and fix this in 2009.
There’s even a few presents under the Christmas tree for consumers, including $2,500 to $7,500 tax credit for purchasing a plug-in hybrid vehicle. And up to $10,000 credit for installing solar panels on your home roof. It was previously only $2,000, and most good systems run $20,000 or more.
There is a $1 per gallon investment in biofuels, big money for ocean tidal energy projects and carbon sequestration research.
This should be a Yee-haw! moment for our country’s investment in green business and renewable energy, but as part of this bail-out package, it feels more icky, like green snot.