Renewable energy tax breaks are not permanent yet oil and gas credits never expire. This is unfair says Joel Cannon, CEO of a solar panel company in Minnesota. We need to change our renewable energy policy.
That could change under a bill supported by Minnesota’s two U.S. senators. It would let wind, solar and other renewable energy businesses establish themselves as master limited partnerships, which are sold like stock.
The dividends from master limited partnerships are taxed at a lower rate, making them a more attractive investment.
The CEO says “Most folks are not aware that the natural gas boom was aided and accelerated by a tax-advantaged ownership structure called the master limited partnership, which has been available for over 20 years to fossil fuel energy sources — and specifically not to renewables like solar.”
An alternative approach would be to remove taxpayer-funded tax advantages for fossil fuels and let them compete in a market economy. When fossil fuel prices rise (which they would), alternative energy looks more attractive.
I think there’s a good case for governments subsidizing / encouraging things. That’s where the internet and solar PV came from, among other things.
But why subsidize the very fossil fuel industry that is killing us? Oh yeah: corruption, campaign contributions, and a temporary but unsustainable boost in employment.