Tax Breaks Could Create 207,000 New Solar Jobs

According to the Solar Energy Industries Association (SEIA), new tax breaks for solar companies would create up to 207,000 new green jobs and spur $48 billion in new investments in the solar industry by 2016. A new report by the association of solar energy companies proposes that a two-year extension of the Treasury Grant Program (TGP) and a new solar manufacturing investment tax credit (MITC) would reap major benefits for the solar industry and the federal budget.

The extension of the TGP, created as part of the stimulus package in 2009, would include projects that begin construction by the end of 2012 and should attract $21 billion in new investment and create 67,000 new jobs.

Furthermore, if solar equipment manufacturers are made eligible for a new tax credit, another $22 billion in investments would be created, as well as an additional 158,000 industry jobs. According to Danny Bradbury of Business Green (via CleanTechnica), manufacturing tax credits were launched at passage of the stimulus package alongside the TGP, but as yet solar equipment producers are not covered by the credits.

Better yet, says the SEIA report, the new and extended incentives would have a positive impact on the federal budget. When comparing government stimulus, increased employment and the unemployment compensation otherwise paid, the added tax revenue and savings on unemployment benefits would be higher than taxpayer money spent on the programs between 2010 and 2016. That goes for all three scenarios — the TGP and MITC passed individually or both combined.

Source: CleanTechnica
Photo Credit: Wayne National Forest via Flickr

Posted on May 25th in Solar Funding by Dan.