According to the Renewable Energy Task Force, South Denver Chamber of Commerce, the Renewable Energy 401(k) Tax Credit will be a high yield investment for the economic stimulus package. At a comparatively moderate cost of $7 to $8 billion dollars, the proposed tax credit is expected to generate $30 to $100 billion of renewable energy investment, along with 500,000 or more clean energy jobs To provide scale for this influx of new investment, the American Wind Energy Association reports entire 2007 revenues for the U.S. renewable energy sector were $19 billion.
“It’s time to help Americans get back to work by investing in renewable energy production. The innovative Renewable Energy 401(k) Tax Credit requires the federal government to provide a tax credit ranging from $40 to $400 dollars per employee to businesses that add a renewable energy fund to 401(k) plans. Small business will receive a higher per employee tax credit; corporations will receive a smaller per employee tax credit but a larger overall tax credit.
The Renewable Energy 401(k) Tax Credit provides a financial incentive for businesses to add a renewable energy fund to employee 401(k) plans and covers the minor administration cost of a fund addition. The Renewable Energy 401(k) Tax Credit will prompt the growth of existing renewable energy mutual funds thereby increasing renewable energy production. The tax credit will also stimulate the creation of new renewable energy project financing funds suitable for 401(k) investment plans.
- Renewable Energy Mutual Funds hold shares of typically 20-100 renewable energy production companies. Example: Calvert and Guinness Atkinson alternative energy funds.
Currently renewable energy project financing funds are available to large institutional investors. As investment in renewable energy grows, renewable energy project financing funds that are accessible to individual 401(k) plan investors will be created by the financial markets.
Gillian Caldwell, campaign director for 1Sky, says “Our members and allies support increased renewable energy production. “The Renewable Energy 401(k) Tax Credit will provide hundreds of thousands of new jobs, combat climate change and strengthen our economy.
1Sky (http://www.1sky.org/) is a collaborative national campaign to ensure bold federal action to tackle global warming and create a 21st century green economy.
Switching from business to consumers…
Homeowners who would like to harness wind power and virtually eliminate their power bill while helping to save the planet should look into the Free Energy Options website.
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