By Beth Starkin, GreenPepper
With the exception of Wal-Mart, and perhaps the furniture rental industry, the spiraling economy has left no industry unscathed, even the green sector, despite many companies' pledges to continue to push forward green initiatives. Even the promise of renewed tax credits included in the first $700B bailout has done little to spur action in the industry. It seems that the tax credits do little good for companies who do not have the tax liability to claim them. Additionally, those companies formerly providing tax equity, including investment banks and hedge funds, are finding themselves a bit short on cash, pushing the cost of what funding is available through the roof.
What's to be done to continue to drive the industry forward? Well, one option is to just wait it out, knowing that funds will eventually begin to move back into the industry. But from an environmental, and even a jobs creation, standpoint that hardly seems the best option. If companies are willing to move forward with green programs, shouldn't we do everything in our power to make it available to them? Would it not be better for our government to change the structure of these credits to be refundable credits rather than direct tax credits? With this approach, companies with smaller tax liabilities could obtain the full credit, rather than be limited by the amount of tax owed, essentially making the credits available to more businesses.
Perhaps changing the tax credit structure is just the impetus needed to help decrease our footprint on the planet, while increasing job creation in a time when it is so desperately needed. If we are going to address these ongoing environmental and economic issues, it is critical we are more aggressive in pursuing creative ideas like this.
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