Stimulus Plan: What's in it for Green?

March 17 , 2009

The stimulus bill addresses green initiatives in two ways: Spending and Tax Breaks. The bill is 1,073 pages long and a good vacation read. It boasts a wide cast of characters and a twisting plot line. If, however, you choose to go with the latest John Grisham novel instead, here are some CliffsNotes from the bill with facts and figures you can recite at the water cooler.

Tax Provisions

Large Scale Wind Projects - $13 billion. This reflects an extension of the existing policy. This tax break is scheduled to be reviewed annually – the new bill carries an automatic extension of three years.

Home Conservation – $2 billion.  Homeowners will receive a 30% tax credit (with a cap of $1,500) for the installation of energy efficient measures such as furnaces or windows.

Renewable Energy Manufacturing – $1.6 billion. This tax credit of 30% is slated for companies that manufacture energy efficient components. The credit is to be used for investment in plants or machinery.

Spending

Conservation Programs - $24 billion. Designed to employ the out-of-work construction industry, this part of the bill includes upgrades to federal buildings and low-medium income homes using green technology. It also includes rebates on energy efficient appliances.

Mass Transit - $17.7 billion. This money will go toward campaigns that discourage driving, the building of new train lines, the addition of bus routes, and upgrades of existing transit systems.

Renewable Energy Loans - $10 billion. These grants fund early stage development projects, which could include wave power, geothermal, offshore wind or innovative solar projects, as well as more traditional renewable energy projects.

Advanced vehicle grants - $2 billion.  Much of this is slated for companies developing batteries for electric cars, which could ultimately move the nation away from oil dependency.  

The Wall Street Journal has published an excellent chart of which types of funds and specific dollar amounts are allocated to specific areas of our economy. Note that green initiatives can fall under several categories, including Business Tax Cuts, Defense, Energy, Farming, Housing and Science, among others.