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Obama’s budget to make tax credit for renewable energy production permanent

Date
10 April 2013
Obama’s budget to make tax credit for renewable energy production permanent

NEW YORK: President Obama on Wednesday proposed a budget that would bring down the US deficit to 2.8% of GDP by 2016 and 1.7% by 2023 – or US$1.8 trillion over the next decade.

Having repeatedly listed the battle against climate change as well as investment in renewables as top priorities for his second term, Obama has included a number of important clean tech initiatives in his funding proposals.

The proposed budget has a strong clean energy and energy efficiency flavor. Highlights include:

  • Investments in clean energy research and development.
  • Encouraging states to cut energy waste with a 'race-to-the-top' challenge to cut waste and modernize the grid.
  • Creation of an Energy Security Trust to fund research efforts that would help shift cars and trucks off oil, and, more importantly it makes permanent the tax credit for renewable energy production.
  • Promoting the safe production of natural gas.

Amy Davidsen, US Executive Director, The Climate Group, commented: “The President’s budget is clearly a very significant step in the right direction. It honors his commitment to act on climate change, and by making the tax credit for renewable energy production permanent it gives the necessary security to states and investors to continue expanding the use of renewables across the US.

“During Climate Week NYC 2012 we launch the American Clean Revolution: Why the US should play to win on the clean economy which argued that transition to a clean energy economy could create more than 1 million new jobs. Investment in cleantech is the road to long-term economic growth, job creation and tackling the devastating effects of runaway climate change. However if the US doesn’t act there are others waiting to overtake it in the new clean energy race. Only a bi-partisan, public-private partnership that supports a new generation of American innovators and entrepreneurs to flourish will ensure American leadership in the new global economy,” Amy Davidsen added.

President Obama’s proposed budget is now expected to be the start of a long negotiation with Congress, divided between a Republican-dominated House of Representatives and a Democrat-majority in the Senate.

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