Green Options

In the midst of the Copenhagen negotiations last week, the White House announced a proposal to give a huge increase in tax breaks to manufacturers who produce wind, solar, geothermal, or other clean energy technologies. The goal of the tax breaks is to stimulate more job growth and promote clean energy technology more in the US.

With clean energy technology poised to become the third largest sales sector in the world, Obama and Biden realize that they must stimulate this field in the US a bit more to get the jobs that go with that growth.

In the proposal set forth by the White House on Thursday, new or expanded factories making clean energy technology (i.e. electric vehicles, solar panels, high-speed trains, and wind turbines) can get a 30% tax credit. This raises the current cap on these tax credits from $2.3 billion to $7.3 billion.

In addition to the tax credit, Obama’s proposed ‘jobs plan’ includes “increased investment in public works, small business tax cuts and incentives for homeowners who retrofit their houses to be more energy efficient.”

Congress will need to approve this jobs plan for it to go through.

As credit tightens up and business conditions worsen in what has now been officially declared as a recession, small businesses that rely on funding are the first to suffer. Responding to the sharp economic downturn facing the nation, a group of seven leading nonprofits that offer lending and support services to small businesses are taking swift actions to help entrepreneurs challenged by higher costs, declining sales, and tightening credit.