The fiscal bailout has been the highlight of the news coming out of Washington DC this week, and rightly so, considering that there are many who believe that without a plan (in whatever form), the country's economic viability will be reliant on some sort of congressional legislation. But there was an important piece of information overlooked by the press this week, which was that the U.S. Senate voted to continue with its $18 billion tax break for renewable energy sources and additional eight-year extension for solar energy.
Included as well was an elimination of a $2,000 cap on tax credits for residential solar systems. The President and House of Representatives are due to approve this measure, which additionally gives businesses a 30 percent tax credit to offset the development costs of solar and other clean energy projects.
These federal energy tax credits were set to expire at the end of 2008, and until now, the Senate had decided not to extend them on eight different occasions. Why the change of heart, especially in light of what is happening in the financial markets? Other than the continual price increases in oil production and refinement, the effects of an increasing carbon footprint on our environment, and a generally lagging economy, perhaps this is due the fact that it might actually help our current and future economic situation. According to a study by Navigant Consulting, Inc., the solar tax extension will create 440,000 permanent jobs in the United States and generate $232 billion in new investment into the economy.
Although there is much to be dismayed about when considering our elected officials and the current state of our country’s affairs, there are those brief moments when the sun actually shines through (pun totally intended).
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