U.S. Senate passes Renewable Energy Tax Credit with bailout plan

On Wednesday the U.S. Senate passed $700 billion bailout plan. Along with the bailout plan they also pass the tax credits for renewable energy sources like solar and wind. The House will vote on the bailout plan on Friday.

In this latest bill the tax credit for producing electricity from wind would be extended for one year, while the tax breaks for solar energy would be extended for 8 years. The credit for other renewable energy sources would be extended for 2 years.

The House has already voted for extending the alternative energy credits, which were happily accepted by the solar and wind industries. Now the investors would be more likely to invest in renewable energy projects. As a result more direct employment opportunities will rise.

The renewable industry says that tax credits are very important for the growth of renewable energy sources as interest grows and higher cost of fossil fuels will be hard to fit into family budgets.