Renewable energy supported through new tax credits in the US

Renewable energy supported through new tax credits in the US

February 14, 2013 0 By Tami Hood
Mogix UV Light Sanitizers

renewable energy tax credit DOE

Renewable energy wind more financial support

Renewable energy has become an important issue in the U.S. In recent years,  the federal government has begun taking ambitious steps away from fossil-fuels. These efforts are partly fueled by political conflicts, environmental concerns, and the financial problems that are often associated with fuels like oil and coal. In order to successfully break away from fossil-fuels, the U.S. needs strong support in the renewable energy sector, and the government is working to make this support available.

DOE announces availability of tax credits

The Department of Energy and the U.S. Treasury have joined forces to announce the availability of an additional $150 million in Advanced Energy Manufacturing Tax Credits. These tax credits are designed to act as a financial incentive for companies in the private sector to embrace renewable energy and the development of clean technology. If companies have access to tax credits from the federal government, they are more likely to invest in the research and development of clean sources of energy. For companies that specialize in energy, such tax credits can prove very beneficial for numerous projects.

Funding will help alternative energy projects nationwide

The Department of Energy rewards these tax credits to ambitious and innovative renewable energy projects throughout the country. Some $2.3 billion have already been awarded to 183 projects nationwide. This money represented the first round of funding for these tax credits. The second round of funding will issue $150 million to projects that fall into the renewable energy field. Though the tax credits are not exclusive to one type of alternative energy, it is likely that solar and wind energy projects will receive strong backing because of the country’s strong focus on these two forms of clean power.

Renewable energy not likely to replace fossil-fuels any time soon

Renewable energy is on track to replace fossil-fuels in the U.S. within the next few decades. Some have criticized the country’s apparent lackadaisical nature when it comes to the adoption of clean power as well as its continued reliance on fossil-fuels. Indeed, though the U.S. has adopted a strong stance on renewable energy, fossil-fuel is still expected to play a large role in the country’s energy future. New funding from the Department of Energy and the Treasury may help speed up the adoption of renewable energy, but it will likely do little in regards to the country’s use of oil and coal.