Senate Approves Solar Power Tax Credit

The same week that Congress debates a $700 billion dollar bailout of the US financial system, the Senate has approved $18 billion in tax credits for companies that use renewable energy from wind, solar or geothermal. Tax credits will also reward cuts in energy consumption.

Solar power gains the most from the bill. Under the proposal, the tax credit for producing electricity from wind would be extended for one year. The credit for other renewable sources, such as wave and ocean tide projects, would be extended for two years. But the tax breaks for solar energy would be extended for eight years

Solar stocks rose on word of the bill’s progress. Firms like Tempe, Arizona’s First Solar, San Jose, California’s SunPower, and Marlboro, Massachusetts’ Evergreen Solar saw gains of 7 to 12 percent.

Previously, the Bush administration opposed tax breaks for renewable energy development. But the president’s attitude seems to have changed.
"Despite concerns with some provisions in this bill, it's a bill the president can sign, and we strongly encourage the House to pass it," said White House spokesperson Tony Fratto.