Senate Passes Greener Financial Bailout

Late Wednesday night the U.S. Senate voted to pass the $700 billion financial industry bailout, now sugarcoated with a number of tax incentives, including tax credits for renewable energy. Voting 74 to 25 in favor, the Senate now hopes the House will pass the bundled tax breaks with the bailout. The amended financial markets bill includes extensions of the production and investment tax credits which are vital for the wind and solar energy industries.

The plan is that the tax breaks added to the bill, which also include an alteration to the Alternative Minimum Tax as well as tuition and property tax deductions, will entice House Republicans to vote for it. However, these unpaid for tax breaks could push fiscally conservative Democrats away who have repeatedly refused to renew the tax credits for the solar and wind industries without stipulating how they would be paid for. But with the whole of America’s financial institutions in the balance, it will be hard, though certainly not impossible, for the House to vote against a package that includes tax breaks and an attempt to solve the financial crisis.

The House is set to come back into session tomorrow and should vote on the amended before the end of the week.