Earth Equity News

Congressional Stalemate Puts Wind Power in Jeopardy. By Jim Abrams, AP, August 31, 2008. “Congress is putting the short-term future of renewable energy companies in jeopardy even as the presidential candidates and most lawmakers hail windmills, solar panels and biofuels as long-term solutions to high gasoline prices and global warming. Some $500 million in investment and production tax credits will expire Dec. 31 unless Congress renews them. Without that help, solar and wind power companies say they will reverse planned expansions and, in many cases, cut payrolls and capital investment... ‘These companies are shutting down projects, firing people and it's Congress's fault,’ said Sen. Jeff Bingaman, D-N.M., chairman of the Senate Energy and Natural Resources Committee. Investment tax credits, available to homeowners and businesses that invest in solar power equipment, and the production tax credit, based on kilowatt hours of energy produced by wind, geothermal, biomass and other renewables, are only two of dozens of temporary tax breaks that die out after a year or two if Congress does not revive them... This year Congress is considering... in addition to breaks for renewable energy and energy conservation, several dozen other tax breaks... targeted to businesses and individuals. They include people paying state and local sales taxes; parents with higher education tuition costs; and teachers with out-of-pocket expenses. Almost all the provisions are popular. But Senate Republicans have blocked consideration of tax-extender plans by Senate Finance Committee Chairman Max Baucus, D-Mont. GOP lawmakers are protesting efforts to offset the costs with other taxes or other items attached to the proposals. In the House, conservative Democrats promise to block any extension that adds to the deficit.”