Obama Tax Deal Sends Solar Start-Ups Packing
President Barack Obama’s alliance with Republicans in Congress on the forthcoming tax package is a good example of bipartisanship that sullies both parties and benefits none.
The package will provide tax cuts and estate tax relief for the richest two percent Americans, while on the other hand allowing two programs to lapse that have so far generated thousands of direct and indirect jobs in the clean energy sector.
We’re talking solar, wind and geothermal energy technologies, which have miraculously weathered the recessionary storm thanks to tax packages under the Stimulus (the American Recovery and Reinvestment Act, or ARRA, 2009). 
One of these is the Treasury Grant Program, or TGP, which provides direct cash relief in the same proportion (30 percent) as tax credits, but as actual payments for small renewable energy startups that haven’t been in business long enough, or done enough work, to develop a tax burden.
The second program is the Advanced Energy Manufacturing Credit, which helps industry retrofit for clean energy manufacture, and both are scheduled to lapse Dec. 31 unless Congress acts to reinstate them. And both, according to the Center for American Progress, have helped build a larger, sturdier, more pervasive clean technology industry.
President Obama, having acknowledged that his party-crossing efforts are a compromise, apparently forgot the most important element of any compromise: you give something away to get something back. This package does nothing for the lowest tier of Americans, and even less for America’s clean energy future – which was, ironically, part of the intent of the Stimulus (which Obama passed almost as soon as he took office).
It’s been shown time and again that the failure to create green jobs here, on American soil, makes it impossible to compete with overseas solar giants, like China, which currently dominates the clean tech industries on a global scale.
As Daniel Weiss notes, in his superb article for the Center for American Progress (a Washington, D.C. think tank dedicated to pioneering efforts in energy, national security and social welfare), adding these extensions to a deeply divisive tax bill would at least improve the economy and help cut pollution.
That is something we can all, Democrat or Republican, get behind. However, as of Thursday afternoon, Dec. 9, the likelihood of the deal reaching cloture appeared blocked by a snarky Democratic House whose mood was best expressed by Peter DeFazio, who called Obama’s compromise an example of Republicans “winning a game of chicken” (that is, Obama conceded too quickly).
Photo Credit: oporder & James O’Malley via Flickr CC
Posted on December 10th in Solar Funding by Jeanne.
December 11th, 2010 at 10:27 am
ENABLE THE PEOPLE, DON’T DANGLE THE MONEY INFRONT OF THERE DREAMS, WISHES, HOPES……
As far as helping the people, President Oboma must see things the same way as NY Governor Paterson!
The for the people part of government is long gone.
The rebellion, revult, is just starting!
The president bought his presidency by being bought by big business. Bailout Banks, no billions, no millions, no thousands, no hundreds and no on nnd no is getting to the people.
HSBC Beneficial gave me three loans in 2005 but could not give me one for the equivalent.
GO FIGURE! Home land security act or something and seize all there assets! Talk about using the government to do their work. How do you think I,m doing now, still pretty _______. I have to get this through my thick head, use anybody and everybody.
I saw a bumper sticker once and had to ask what it meant, I wouldn’t have to ask if I saw it for the first time today! FUBO
What is the one for senate, congress, and so on,
How about last years deadlock in NY when people need them to work for the people.
How about the stock market, now if that wasn’t calculated.
How about oil companies making the biggest oil mess in history and record profits.
Jessee Ventura had to show us that, Thank you.
How about big companies walking on whoever whenever they want to.
I say the government has to act against these huge companies running the world and take all there profits by making up some bulshit excuse, most of us have heard these, and take all them gazillion millions to back to the poorest people in the world. Give it to them, instead of dangle it infront of all there hopes and wishes and dreams, and see the greatest humanitarian revolution the world has ever seen. These big companies will try to suppress this in the worst ways emagineable. Let’s throw in all medical treatments to anybody for any reason wether they can ….ugh .. ooops everybody can pay.
How about on Dec. 12, 2012 everybody stop paying our banks for anything and everything.
How about on Dec. 12, 2012 government takes over big businesses conglomerret monopolies.
How about on Dec. 12, 2012, or whenever it is suppose to be ……. the world doesn’t end, just the self centered world
The government should have been involved, we have to be!
Help me keep my home if you can?
ENABLE THE PEOPLE, DON’T DANGLE THE MONEY INFRONT OF THERE DREAMS, WISHES, HOPES……
There, everything is fixed.
December 11th, 2010 at 5:54 pm
[...] entering his seventh hour of filibuster, Sanders is attempting to explain how Obama’s current compromise with GOP leaders only helps the rich get richer. Liberal leadership wanted to continue the Bush-era [...]
December 11th, 2010 at 7:33 pm
I wount it all but I’m a poor boy this could save all of us a lot of money on heat and cooling our homes. Our lights tv enagey bills and halp our big citys with thear coust if I hade more then I could use I would not carge for my exses it could go for our goverment bills to help usa in any way our vets our poor our drs and hosp edacaton and menty more we got to stop being so gready and help one outher as a team we can do more for all I bet obama neaver read this keep fighting for what right
Greg
December 13th, 2010 at 9:19 am
Bernie Sanders is my new hero! And yes, Greg, we will continue to fight for what is right. To do anything less would jeopardize the future that our grandchildren will inherit.