Look past the headlines and see that the Solar Investment Tax Credit is creating green jobs and investments, despite what the naysayers want you to believe.
The Solar Investment Tax Credit has received some negative press from naysayers, but it appears as though this tax credit is doing just what the federal government had envisioned. Recent reports indicate that citizens can expect to see a ten percent internal rate of return compared to the amount of money that was originally put into the project.
Research completed by the U.S. Partnership for Renewable Finance highlighted the fact that the tax credit is positively impacting families across the country while also benefiting the federal government as well. For every $10,500 dollars that is invested into a solar project, such as a solar air conditioner, the government can potentially receive more than $22,000 back, although that amount will only be realized after the life of the air conditioner has expired. When the tax credit is applied to businesses, that number is even more staggering; a $300,000 credit has the potential to bring back almost $700,000 over time.
In addition to these potential returns, there are benefits to the environment as well. Solar projects will drastically cut the amount of greenhouse and carbon gases that are released into the atmosphere. The country as a whole will benefit as worries about nonrenewable resources are alleviated, and the costs associated with military expeditions that attempt to stake a claim on fossil fuels will be dramatically reduced as well.
President Obama, as well as his administration, has backed this tax credit program and others that support the development of solar and renewable energies. There has been negative press of late as several companies that received funds from the government, and were eligible for the tax credit, went out of business or had to file for bankruptcy. Therefore, information about this study has come out at the prefect time, when members of Congress are arguing about the viability of the project and discussing whether or not to invest more money into renewable energies in the future.
The study dismisses the misconception that many people have about solar power, which is that it is costly and the investment will not be recouped over time. In addition, the tax credit has encouraged companies across the United States to get involved with green energy, spurring the creation of many new jobs. Since the topic of solar power is such a key point in this year’s election, it is important to know the full story in order to make decisions going forward.