As I mentioned on the National Journal’s Energy Blog, tax incentives are part of the solution but must be used with many more and different policies if we expect to build a competitive renewable energy industry in the U.S. that can compete with heavily subsidized programs in China, Japan and India. The U.S. needs policy incentives that both pull deployment and demand and push domestic manufacturing.
On Friday, President Obama called on Congress to extend the popular clean energy manufacturing tax credit (MTC) [Section 48C] program by approving an additional $5 billion in investment. This would more than double the $2.3 billion that Congress authorized last year as part of the American Recovery and Reinvestment Act (ARRA).
An investment of this size would create upwards of 40,000 jobs and generate more than $12 billion in private sector investment, which would lead to an additional 90,000 jobs, according to the president.