Editorial: Energy Subsidies — Good and Bad

The New York Times
Published: July 28, 2010

Congress must soon decide whether to extend federal tax subsidies for renewable energy that expire at the end of the year. The subsidies for wind, solar and geothermal energy are necessary to give these energy sources the help they need to compete with oil, coal and natural gas. While it renews those subsidies, Congress should end tax breaks for corn ethanol, which can stand on its own and is of dubious environmental benefit.

Tax credits for wind, solar and geothermal power have been around for decades. When the economy tanked and tax credits became less desirable to investors, the Obama administration converted them to a direct federal grant as part of the 2009 stimulus program. About $4.5 billion has since helped jump-start hundreds of projects — mostly wind and solar — and created thousands of new jobs.

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