The stimulus bill that was approved without Republican support in the House of Representatives is not the bill that will eventually find its way to the desk of President Obama. The stimulus bill that will be enacted will be the result of much more give and take.
What was given and what was taken? A great amount, particularly with respect to alternative energy issues and automakers.
The House package leaned more heavily towards wind and solar industry than the Senate. The House imncluded grants from the Energy Department that covered 30% of the building costs for capital intensive projects like building wind turbines, according to Bloomberg News. The Senate bill contains no such provision. Rather it tilts towards more traditional projects. In the Senate bill there are tax breaks for electric cars and $50 billion in loan guarantees for nuclear power plants.
Since the Senate bill is essentially done being haggled over, this could spell bad news for anyone in the solar or wind game, who pegged their hopes for a big 2009 on the stimulus. We don’t think this is the end of the government’s largess though.
Even if this bill fails to direct cash towards those industries, expect to see many more spending bills coming down the pike as the next year unfolds.
Stimulus Spending Won’t Be Temporary