Utility Drive: Senators launch bipartisan initiative on long term solutions to expiring energy tax credits

Editor’s Note: The fundamental problem with government subsidies is that they lead to overproduction and distort the natural supply and demand forces of the free market. A better way would be to give consumers the freedom to decide what energy sources and services they want and let the market respond.

Utility Drive: Tax credits have proven effective in jump-starting energy industries and driving adoption of new technology and infrastructure. However, as credits wind down, the renewable energy industry has been gripped by uncertainty in recent years, with federal legislators approving short-term extensions.

Both the chairman and ranking member of the Senate Finance Committee announced a bipartisan initiative on Thursday to craft long-term solutions for the expiring tax breaks, with task forces focused on energy tax credits and disaster tax relief among others. Read More.