Remember the Energy bill of 2007? That gives CAFE in and renewable a blow. Now, this is a new development. On the Senate version on the 2008 stimulus package, renewable energy gets a second chance in the finance committee for a variety of tax credit measures, which were supposed to expire this year.
Understand that I disagree on the shot-in-the-arm approach by giving individuals (even those with higher incomes) some money to spend in order to grease the economy. However, some help for the renewable industry for massive scale production that can bring production into the main stream and its costs down are badly needed in the long run if we want to get our economy on track and lead. We're so behind everybody else in the world!
There is some truth to the statement of Bill Gross on his view on the demand-based economy. Via PIMCO.
...The $150 billion 'return to sender' deficit plan advanced by Bush and the Congress, for instance, amounts to just 1% of GDP and is labeled temporary. To understand why, consider that the productivity of our economy ultimately depends on its ability to 1) innovate, and 2) save and invest, and there is little of either in this stimulus package.
That's why we need to be focusing on innovation in moving towards a greener and cleaner economy. Without innovation, save and invest - save what - and depends heavily on the borrow-and-spend economy, the long-term outlook won't be pretty. Right now, the U.S. economy is flirting with recession.
The renewable measures that get into the Senate plan includes 1) extension of PTC through end of 2009 2) extension of 1 year credit equal to 30% of expenditures for PV and solar water heating 3) extension of energy-efficient existing home credit 4) extends tax credit for energy-efficient appliances for 2 years and, 4) extends a credit to renewable energy bonds.
The measures 'if' (if - is a big factor here) pass from the Senate, would make it possible for the wind, solar, energy-efficient and other green businesses to create new jobs (that we desperately needed), which in turn wheels the economy again.
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