One of the most mentioned aspects of the stimulus is the different types of tax credits that will be available for energy businesses. Some of the tax credits include investment tax credits (ITC) for solar power, production tax credit (PTC) for wind power and some temporary tax conversions for refunds.
This may not seem like much for a stimulus, but the cumulative effect of these tax credits can be enormous. Tax credits are designed to reduce the amount of money a business owes to federal and state governments. Instead of using that money to pay the government, businesses can use this to pay for their expenses. The savings provided by the tax credits can be substantial depending on the size of a business.
Funding for projects
The stimulus can also provide much needed funding to continue renewable energy projects. Since COVID-19 started, many major energy companies have ceased virtually all projects for the remainder of 2020. This directly impacts the contractors, local governments and energy businesses that would gain from the economic activity.
The stimulus from the government would give energy businesses the confidence to start projects immediately and get Americans back to work. With projects commencing, thousands of Americans and American businesses will return to work. The majority of states and cities have lifted stay-at-home orders, so this stimulus could be a step towards resuming operations for energy businesses.
Dhoof Mohamed writes about energy and IT topics for various clients. His academic interests include solar energy initiatives and the future of sustainable energy. His articles have appeared on SiteProNews, ChooseFlorida and the office of the U.S. Embassy. You can reach him at firstname.lastname@example.org.