As reported here by Danny, the massive $700 Billion+ bailout contained the much sought after extension of the renewable energy tax credit. While the widely disparaged porkbarrel spending of the bailout bill may not be the most noble legislation around, it’s a large consolation to this taxpayer that there is a whole lotta Green Pork packed into this mother of all omnibuses.   Now that the bill has been more thoroughly combed over, let’s take a look at the spoils:

- Finally, the Renewable Energy Investment Tax Credit has been extended, a full 8 years, for investment in solar and wind energy.   This tax credit is vital to the growth of these industries going forward and makes a sector that was already a good bet, practically the best place around for capital in very uncertain financial times.   Plus, as a sweetener, the tax credit is paid for by a change to the tax code for oil and gas companies.  

- The second most heralded green oinker of the bill is the one year extension of the Renewable Energy Production Tax Credit, which is partially paid for by oil and gas companies.   The credit will benefit the following green industries:

• Solar
• Wind
• Hydro
• Geothermal
• Trash Combustion
• Biomass

- Solar Energy Installations on both residential and commercial facilities receive an 8 year extension on their current 30% tax credits.   Plus, as an added bonus, the installations’ deductible amounts are no longer capped at $2,000 as they were under the previous tax code.

- To further spur investment in the sector new Clean Energy Bonds have been created by the bill, a total of $800 Million worth will be issued.

- A new tax credit for Plug-In Electric Vehicles has been introduced, worth between $2,500 to $7,500 for those who purchase them.

- Fuel Cell tax deductible limits have been increased from $500 to $1500 per half KW of capacity.

- Clean Coal technologies will receive up to $1.4 Billion in tax credits over 10 years.

Rhone Resch the President of the Solar Industries Energy Association, an organization that has lobbied hard for the extension of the renewable tax credits, had this to say,

This bill is a major step in our long journey toward energy independence and ensures that solar energy will be a significant part of America’s energy future,

The truth about porkbarrel spending is that it is a basic component of how things get done in our legislative process.   Politics is the art of the compromise, and in order to compromise in a legislative body you need some sort of currency, that currency is pork.   Things are slipped into bills in order to get the bills the votes they need to pass.   It’s a clumsy system no doubt, but the alternative of getting members to vote on every single line item of each and every measure of spending that every single Congressman and Senator ventures to bring home, would not only clog up Congress worse than the court system, it would also require so much time as to make it completely untenable to put into practice.

But there are real dangers to pork, in the quid pro quo’s it can so easily become between a legislator and a benefactor.   The problem in these arrangements though lies with the individuals in question.   If you’re an honest politician, you’re not going to vote to fund a Bridge to Nowhere.   You would, however, attach measures that the country truly needs at the time most politically prudent to do so…like the Green Pork we’re savoring right now!

You can takepart by checking out the Solar Energy Industry Association and learning about the next legislative initiatives needed to grow America’s burgeoning alternative energy industry.

LINKS:

ENS: Wind, Solar Tax Credits Extended in $700 Billion Bailout

Wired: Bailout Bill Benefits Wind and Solar Power Companies

Alternative Energy HQ: Bailout Bill Includes Solar Tax Credits