Obama proposes permanent renewables tax credit

Tuesday, February 28, 2012 @ 09:02 AM
posted by rene5432

Support for renewable electricity has risen and fallen recently, with some important national subsidies expiring as the states have stepped in to pick up some of the slack. But now RenewableEnergyWorld.com reports that President Barack Obama hopes to make one important policy permanent.

President Obama recently proposed making permanent tax credits for producing renewable electricity. The tax credit program has been crucial to encouraging the development of solar power installations around the country, along with the 1603 grant programs that allowed companies to turn these tax credits into an up-front grant.

"In order to make us more competitive and create jobs here at home, we must reform our corporate tax code," Treasury Secretary Tim Geithner said in a statement. "The President’s framework would boost growth and provide American companies with incentives to invest in the U.S. while simplifying and cutting taxes for our small businesses."

In addition to providing greater support for renewable electricity, The Hill reports that the proposal would drastically scale back the country's support for the oil industry, which itself receives a substantial amount of incentives.

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