Tuesday, January 13, 2009
Kaine pushes 'green jobs,' renewable energy sources
The governor said creating renewable energy sources would help ease the economic crisis.
Associated Press
Gov. Tim Kaine (right) discusses solar energy with businessmen Monday in Virginia Beach.
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From The Roanoke Times
RICHMOND --Gov. Tim Kaine unveiled more details of his plan to create "green jobs" on Monday, calling for new incentives -- including state tax breaks -- to encourage production of biofuels and clean energy sources and greater use of renewable energy sources.
The proposals, part of Kaine's "Renew Virginia" initiative, will require legislative approval in the General Assembly session that begins Wednesday. Kaine is putting an emphasis on energy and the environment during this final year of his four-year term, despite a $2.9 billion budget shortfall that will require cuts in virtually every state program.
"Creating green jobs and a renewable energy sector of the Virginia economy is one way we can create opportunity from our current economic challenges," said Kaine, who announced his proposals at a Virginia Beach company that installs solar panels.
Kaine's budget proposal includes a $2 million pool of incentive grant funds for new and expanding businesses that produce goods and equipment for energy efficiency and produce clean energy sources, such as solar, wind, nuclear and biomass. Kaine's proposal would expand an incentive grant currently available to solar energy system manufacturers. The size of the grants would be based on the return from the new business.
Kaine also wants to modify the incentives given to producers of biofuels to provide more support for fuels derived from sources other than food crops. His proposal would allow for a 7.5-cents-per-gallon incentive for biofuels produced from food crops and a 10-cents-per-gallon incentive for biofuels from other sources. As another incentive, the minimum production threshold to become eligible for the grant would be reduced from 2 million gallons per year to 1 million gallons annually. The size of each biofuel grant would be based on the number of gallons a producer sells.
Kaine also called for tax incentives to encourage the use of renewable energy sources. He proposed an income tax credit for individuals and corporations to install solar energy systems, with the credits varying according to the size of the system installed. But the total tax credits available from the state would be capped at $1 million annually for residential taxpayers and $1 million for corporations.
In addition to income tax breaks, Kaine also called for sales tax exemptions on solar and small wind systems.
State Sen. Creigh Deeds, D-Bath County, will sponsor bills to create the sales tax exemption and expand the clean energy manufacturing incentive.
"As we address the challenges of this economy and put in place a recovery package that gets us moving again, green jobs for hard-working, middle-class families are going to play a big role," Deeds said.
