Bailout Package May Greatly Impact Alternative Energy Stocks

As most of you will probably know by now, the US Senate voted last night to pass the $700 billion bailout package for the financial sector. As part of the this new version of the bill full of so-called "sweeteners", or measures meant entice certain individuals to vote in favor, lawmakers included a one-year extension of the Production Tax Credit for wind and an eight-year extension of the Investment Tax Credit for solar.

Now the House must still vote on Friday, so this isn't a done deal just yet. However, although it probably won't get much attention in the general press, the extensions of the PTC and ITC are important measures for alt energy investors, especially if credit conditions don't ameliorate in the next few months. General weaknesses in equity markets coupled with concerns over renewal of these tax credits created nothing short of a perfect storm for many of alt energy stocks.

View the full text of the bill here.

Comments

[NOWHEREMAN:]

This bill won't pass.

First it is filled with enough pork to hold an Olympic BBQ, second it originated in the Senate and all of the Senators who voted against it are up for re-election, third all of the House is up for re-election and the US markets do not like the contents at all.

3 Month LIBOR is now up 50% since the Bailout was first proposed.

2008 Oct 02 09:42 AM

[Road Runner:]

At this point (waiting for the extension of the tax credits for a year), I refuse to believe the tax credits got passed until the president signs it. I'm just exhausted and numb on this issue. Because of this tax credit, I have become a hater of congress just like most of you reading this.

2008 Oct 02 11:44 AM

[NOWHEREMAN:]

The rest of Congress is no better than Bush who everyone knows sucks.

2008 Oct 02 04:05 PM