Just four graphs into President Obama’s address this weekend, in which he highlights the importance of the recently passed stimulus bill, he touts the magnitude of the funds for renewable energy. With an estimated total of more than $50 billion in combined tax credits and spending signed into law last week, the package is the most significant funding for the clean power and alternative vehicle industries in decades.
“Because of what we did, companies – large and small – that produce renewable energy can now apply for loan guarantees and tax credits and find ways to grow, instead of laying people off; and families can lower their energy bills by weatherizing their homes” – President Obama.
While the federal government might not be cut out to be a green VC, its grants, tax credits and overall subsidies will prove invaluable to the industry. And the funding marks a turning point for the U.S. government’s leadership on fighting climate change. Next up: the headache of allocating the funds to the companies begins shortly!