Clean energy may get the attention it craves, as PresidentBarack Obama unveiled a substantial tax credit for green causes, giving related shares and exchange traded funds (ETF) a chance to rally.
In an effort to boost jobs and tackle climate change in one decision, Obama unveiled a $2.3 billion tax credit for clean energy. The clean energy manufacturing tax credits will benefit 183 manufacturing facilities that create clean energy products in 43 states, reports Energy Efficiency News. [How to approach Obama’s other policies with ETFs.]
The provision of a 30% tax credit for the recipients is aimed at supporting the development of renewables and energy efficiency technologies. In order to qualify, the facilities will need:
- To produce solar, wind and other renewable energy equipment, microturbines, electric grid and storage technologies, energy conservation technologies, plug-in electric vehicles and their components, fuels cells, and energy storage systems for electric and hybrid vehicles. [Why solar is expected to take off in 2010.]
- Biofuel refining and blending technologies and carbon capture and storage equipment also qualify.
- Beneficiaries include smart meter company Itron, W.L. Gore & Associates, which produces an advanced membrane for high-efficiency fuel cells, and TPI Composites, which is investing in a new facility to manufacture wind turbine blades.
Michelle Chen for In These Times says that the failure in Copenhagen and the anemic jobs report is an opportunity for lawmakers to combine climate change and tackle unemployment. The Advanced Energy Manufacturing Tax Credits is intended to create tens of thousands of high-quality clean energy jobs and the domestic manufacturing of advanced clean energy technologies. [How to play the climate change movement with ETFs.]
For more stories about green investing, visit our alternative energy category.
- iShares S&P North American Natural Resources Sector (NYSEArca: IGE)
- PowerShares WilderHill Clean Energy (NYSEArca: PBW)
- Claymore/MAC Global Solar Energy (NYSEArca: TAN)
- Market Vectors Global Alternative Energy (NYSEArca: GEX)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.