Update: Solar Investment Tax Credits

If I’ve said it once, I’ve said it a hundred times: the renewable energy tax credits will be renewed.

I am, of course, referring to the investment tax credit for solar and the production tax credit for wind—each of which expire at the end of the year.

Both the House and the Senate have tried numerous times to extend these credits, but every time the measure has failed due to debates over funding or because of a veto threat and pursuant filibuster.

Now, buried in all the news about this potential massive bailout, the tax credits are once again up for a vote in the Senate. The House passed a bill that included them last week.

Even though the president has said he’ll veto the measure if Congress opts to fund it by rolling back taxes on Big Oil, this still bodes well for the solar and wind industries.

Both parties know they’ll eventually have to extend the credits. Too many jobs and too many investment dollars in new energy sources will be lost if they don’t. And no politician up for reelection wants that on his or her shoulders.

At any rate, there will at least be a one year extension of the credits passed by the end of the year—no matter how Congress decides to fund them.

And while they may not get passed today, the fact that the issue is up for a vote in the Senate should send some positive shocks through the sector.

It’s probably worth picking up some shares of a few solar players at the open. A late sell-off on Monday means there are some good buys to be had.

I’d be looking at:

• Evergreen Solar (ESLR)
• Canadian Solar (CSIQ)
• Yingli Green Energy (YGE) and
• ReneSola (SOL)

It looks like they are all up in pre-market trading, so look for a quick dip after the open to get in.

At these low prices there are surely some easy profits to be had.

Subscribe by RSS Subscribe by Email