Late Wednesday night the U.S. Senate voted to pass the $700 billion financial industry bailout, now sugarcoated with a number of tax incentives, including tax credits for renewable energy. The Senate passed the package 74 to 25, and it now goes on to the House. Passage of the bill means the production and investment clean energy tax credits (PTC and ITC), which are so vital for the wind and solar energy industries, are a step closer to being renewed.
The hope is that the bundle of tax breaks for businesses and individuals will draw Republican votes in the House. However, these tax breaks could also displease fiscally conservative Democrats. The Democratic Blue Dog Coalition only supports legislation that fully offsets its own costs and they’ve voted against extensions of the PTC and ITC that didn’t include appropriations. The House is set to come back into session tomorrow and should vote on the amended bill before the end of the week.