September 12, 2008

Congress is single-handedly thwarting the development of alternative energy by suspending tax credits for wind and solar power. - Inspired by Thomas Friedman

"If you are going to use tax policy to shape energy strategy then you want to raise taxes on the things you want to discourage — gasoline consumption and gas-guzzling cars — and you want to lower taxes on the things you want to encourage — new, renewable energy technologies. We are doing just the opposite,” writes Friedman.

While Congress has renewed tax credits for oil and gas, those for wind and solar energy expire in December. “These credits are critical because they ensure that if oil prices slip back down again — which often happens — investments in wind and solar would still be profitable. That’s how you launch a new energy technology and help it achieve scale, so it can compete without subsidies.”

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Comments | 10 Total

September 12, 2008 at 11:05am

Rip Empson
I can honestly think of no viable reason for Congress' lily-livered inaction. $500 million in investment and production tax credits will expire in December and many solar and wind power companies say that, without congressional assistance, they will reverse planned expansions and "in many cases cut payrolls, jobs, and capital investment." As Tom Friedman says, the investment tax credit is what makes these alternative energies cost-competitive, and if they don't receive the benefit of the tax breaks, it becomes increasingly difficult to encourage the growth and development of these EXTREMELY VALUABLE resources. We have to make sure that Congress is accountable on this one.

September 12, 2008 at 2:27pm

Mel Blitzer
There is no better example of how neo-conservative ideas have deliberately been inculcated in the American mind as when the duly elected representatives of the people vote against their, and the country's, long term interests by not supporting the development of alternate sources of energy through the use of a tax policy that could put American ingenuity and innovation to work on the challenge of the 21st century. This of course links directly to the current race for the Presidency and the prospect that this kind of thinking will continue for another 4 years-4 four critical years for the American economy and its place as an influential player on the global stage. The idea that the race still remains close is astounding and incredible for people like myself, living outside of the USA with an American heritage. A further link is to the Fannie -Freddie bail out and compensation for their executives- save socialism for the big corporations in trouble rather than the common victims of their malfeasance. This was an economic Katrina for which the conservative mind-set presents a similar ineffective response. You have to wonder what it will take for Americans to wake up and connect the dots and understand that a certain world view or mind set is driving the country into a steep non- virtuous spiral of decline. -- Mel Blitzer

September 12, 2008 at 6:22pm

Dale Moyen
Well, let's look into why these tax credits for Alernative Energy are being cut but we still have tax credits to the Oil Companies when they are making RECORD Billions of Dollars in net profits quarter after quarter? When we say "Congress" is it really Republicans that Fillabuster every attempt of the Democratic members of Congress to pass legislation to promote alternate energy and eleiminate tax credits to the Oil Companies? Yes, when will America wake up to see that the Conservative Republicans are running this country to solely benefit profits of Big Oil. A vote for McCain = more of the same!

September 13, 2008 at 3:22pm

Carel Two-Eagle
Thomas Friedman says, "IF you are going to use tax policy to shape energy strategy, then..." Here's a radical alternative thought / perspective: what if you were going to shape energy strategy on the basis of logic and consideration for all of us who share the bounty of our Holy Mother the Earth, rather than operate from the perspective that everyone "must" be beaten into behaving in a respectful manner? Wow! Duwahleh! Radical! Congress has not renewed tax credits because most (all?) of them have been financially obligated to Big Oil & Big Business to get into office in the first place; AND BECAUSE We, the People, have not raised a big stink with our Senators and Congressional Reps to renew and expand the tax credits. Thus, Congress IS NOT "single-handledly thwarting the development of alternative energy sources". We, the People put them where they are; we, the People, must roll up our sleeves & pester Congress to do as we want, financial backing be damned. I was taught that they are responsible to US, first and foremost. If we don't speak out, we can't be heard.

September 14, 2008 at 12:02am

Robin Monroe
So, I just have to ask - This doesn't really surprise anyone does it? Earlier this year congress passed Bill HR 5819, that should tell people what kind of commitment congress has to supporting small business innovation. Generally speaking, I don't remember a time when Congress had the best interest of the country or of small business in mind when making decisions about anything. They only care about their future career as lobbyists. It doesn't matter who is in control of the house or senate. Until lobbying is banned in America - our congress persons will do what is good for their own future, after all "lobbyist" is the job title that comes after senator.

September 14, 2008 at 11:38am

Shawn Barney
The Tax credit for solar worked in the 80's why not now?

September 14, 2008 at 12:17pm

Nunzio Martin
I see everyone is talking about investment and crying that "it is the say ideas" but are you all not offering the same old liberal ideas as tax credits, why not truly invest tax dollars into these companies so that we, the tax payers, see dividends from the tax dollars that the government (us) give the companies, novel idea isn't it?

September 15, 2008 at 12:42am

jay draiman
You must serve as an example in implementing energy efficiency. I think if corporate America is serious about energy conservation; it must start with people at the top and roll down from there to the rest of the executives and employees. In order to accomplish such an important mission as energy conservation every executive and employee has to believe that what he is doing is the right thing. They must practice the same attitude at home and implement energy conservation at home. This attitude will carry on to the workplace. First thing that must be done is, each employee should be asked what has he/she done in their own lives to conserve energy, and than if the answer is positive advance the initiative from there, if not an education process must be implemented to drive the process home once this process has been achieved, it will be easier to get everyone to participate in energy conservation. The motive and behavior has to come from within each individual person – it must become part of a routine practice – it must become a way of life – reducing waste in any form. In today’s rising cost of energy – conservation must become a national theme. Jay Draiman, Energy Analyst

September 15, 2008 at 10:35am

Daniel Paul
These tehnologies need to stand on their own merits, not tax credits or tax breaks.

September 15, 2008 at 5:53pm

Brian Schoenbaechler

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