US Congress Looks a Bit Beyond Sub-Prime Mortgages, Credit Default Swaps, and the "Bailout". (October 20, 2008)

The Proposed 154 megawatt Australian solar power plant for Victoria

As the legislation grew for the Wall Street bailout, one of the add-ons stipulated by the US Congress was to extend the $17 billion tax incentives for wind, solar and other renewable sources of energy.

The tax incentives were scheduled for renewal before the end of this year, but squabbling about deriving funding had led to congressional inaction. It was the party leaders in the Senate that wedged the necessary amendment into the US$700 billion bailout.

According to Nature: "The legislation extends for one year a tax credit for producing wind power that is currently valued at 2 cents per kilowatt hour. The solar industry came out particularly well with an eight-year extension of its 30% investment tax credit."

In short, support for the growing industries within the renewable energy sector is seen by the US Congress as maintaining a forward step for bolstering that nation's economy.