Yesterday’s tax cut agreement between President Obama and Republican leadership could have a lasting impact on the renewable energy sector. The deal reached would include tax cuts extended that are set to expire on December 31, extend unemployment benefits through the end of next year, potentially create new jobs and give business a major tax break that would hopefully encourage capital investment.
However, the deal appears to not include tax credits for solar and wind power that were established in 2009 as part of the stimulus package. If these tax credits aren’t extended it could slow down the growth of the renewable energy sector and result in jobs lost in the industry. There is no guarantee the deal as currently constituted passes the Senate. It could potentially face a filibuster unless Democrats are able to get a little more of what they want in the legislation.