Energy Tax Credits Announced
August 17, 2009
More than $2 billion in tax credits, from the stimulus bill, will be available to some energy manufactures. The Treasury Department, in collaboration with the Department of Energy, will give an investment tax credit of 30 percent for the manufacture of “particular types of energy equipment”:
Qualifying manufactures will produce solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions.
Assuming the need for carbon regulation, the best option for the government is to just increase the cost of dirty energy and let markets do what they’re good at-finding efficient ways to produce goods at given prices.