In a bid to combat the unemployment problem, President Barack Obama announced his $2.3 billion tax credit aimed at promoting clean energy. Unemployment firmly stayed in the double digits at 10 %, even though positive signs started emerging in the last quarter of 2009. Obama claims that the tax credit will see the creation of at least 17,000 jobs. It is part of the stimulus package that was signed by him in February 2009 and which was designed to prop up the U.S. economy during onslaught of the recession.
“Building a robust clean energy sector is how we will create the jobs of the future, jobs that pay well and cannot be outsourced,” Obama said.”This initiative is good for middle-class families. It is good for our security. It is good for our planet.” The tax credit is in one way a smart move that benefits Obama, as it targets the problem of unemployment and climate change, the latter being one of the many core goals of the Obama Administration. There are 182 projects involved with solar, wind and other types of energy improving initiatives that will benefit from the tax credit.
Obama claims that the tax credit will create “tens of thousands” of more jobs in its wake. It is important that he delivers on that promise if he is to progress with his healthcare and financial regulation reform. Both are also part of the core goals, but rely heavily on positive support from Congress to be passed. With congressional elections looming in November, Obama needs the tax credit to show results and show them fast.