What alt energy needs - from CNN

CNN says that Alt Energy needs taxbreaks

 

Long term tax breaks would be great.  It could make things a lot easier for companies.

 

And now, here's the heresy.

 

No tax breaks at all would be more useful than the annual dance on tax breaks.

 

Eliminating all tax breaks/corporate subsidies/etc. for everyone in the energy industry would be even better for renewables.

 

Granted, it would hurt a lot to start paying $10/gal gas and seeing electric/heating bills go through the roof.  But without any subsidies alternative energy looks a lot better than before.

 

The writer makes it sound like alt energy is only viable with tax breaks.

 

And given the un-even playing field, that might be true.

 

There are companies that can survive these conditions, but not many.

 

The problem now? It's already too late for many companies, even with an extensino of the tax credit, several companies have missed out on at least 1 quarter of sales/revenues as customers opted to wait out and see if there would be any credits available.  And now you're probably crossing over into another budget cycle.  Meaning another sales cycle.

 

Understand this means 1 quarter of paying people, when there isn't much work.  1 quarter of paying for rent, utilities, and expenses.  And it won't just start up again if the credits are renewed.

 

Not many small companies can withstand that type of cash burn.  Meaning not many of them will survive until the next stage.