Clean energy may get the attention it craves, as PresidentBarack Obama unveiled a substantial tax credit for green causes, giving related shares and exchange traded funds a chance to rally.
In an effort to boost jobs and tackle climate change in one decision, Obama unveiled a $2.3 billion tax credit for clean energy. The clean energy manufacturing tax credits will benefit 183 manufacturing facilities that create clean energy products in 43 states, reports Energy Efficiency News.
The provision of a 30% tax credit for the recipients is aimed at supporting the development of renewables and energy efficiency technologies. In order to qualify, the facilities will need:
- To produce solar, wind and other renewable energy equipment, microturbines, electric grid and storage technologies, energy conservation technologies, plug-in electric vehicles and their components, fuels cells, and energy storage systems for electric and hybrid vehicles.
- Biofuel refining and blending technologies and carbon capture and storage equipment also qualify.
- Beneficiaries include smart meter company Itron, W.L. Gore & Associates, which produces an advanced membrane for high-efficiency fuel cells, and TPI Composites, which is investing in a new facility to manufacture wind turbine blades.
Michelle Chen for In These Times says that the failure in Copenhagen and the anemic jobs report is an opportunity for lawmakers to combine climate change and tackle unemployment. The Advanced Energy Manufacturing Tax Credits is intended to create tens of thousands of high-quality clean energy jobs and the domestic manufacturing of advanced clean energy technologies.
For more stories about green investing, visit our alternative energy category.
- iShares S&P North American Natural Resources Sector (NYSEArca: IGE)
- PowerShares WilderHill Clean Energy (NYSEArca: PBW)
- Claymore/MAC Global Solar Energy (NYSEArca: TAN)
- Market Vectors Global Alternative Energy (NYSEArca: GEX)