Fiscal hawks have rightly criticized many of the pork-barrel provisions Congress added to the $700 billion financial rescue plan the president signed Friday.
To secure swift passage, the Senate larded up the package with $17 billion in tax breaks and tariff relief, including goodies for the movie industry, wool makers and rum makers in the Virgin Islands and Puerto Rico.
Manufacturers of wood practice arrows used by children will no longer pay an excise tax of 39 cents per arrow. Owners of NASCAR race facilities will get the same seven-year depreciation timetable that owners of amusement parks enjoy.
Despite these many dubious cuts of pork, Congress including several items in the package that are worthy of support. In particular, Congress renewed tax credits for solar, wind, biomass and geothermal power. These incentives could go a long way toward building a cleaner economy, creating thousands of jobs in California and other states.
Because of partisan gamesmanship, Congress struggled all year in extending the tax incentives for renewable energy. But as part of the final deal-making, the Senate managed to end an old subsidy for oil and gas, which freed up money to pay for the tax credits. The final package also includes incentives for energy-efficient buildings, plug-in electric vehicles and bicycle commuting.
Supporters of clean energy were not completely thrilled. Among other things, the rescue package expands a tax credit for refineries that convert coal, oil shale and tar sands into transportation fuels. Such incentives, if not repealed at a later date, will only add to the nation's carbon footprint and the scars caused by intensive mining.
As is its pattern, Congress can only take two steps forward by taking one step back. But the tax credits for renewable energy are definitely a step ahead. It will be up to the next Congress – and the next president – to revisit some of the more lardlike provisions that the House and Senate approved last week.
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