Video: White House Grants Green Tax Credits

The White House has proposed a $5 billion increase in clean energy tax credits in an effort to grow green collar jobs and expand renewable energy infrastructure. The proposal, unveiled last week by Vice President Joe Biden, would raise the current $2.3 billion tax credit cap to $7.3 billion, all part of the $787 billion stimulus package approved in February.

The proposed plan is the Obama administration’s latest effort to reduce unemployment rates, while also encouraging investment in renewable energy projects. The plan also calls for small business tax cuts, investment in public works and homeowner incentives for retrofitting their homes to be more energy efficient.

The initial program was successful, with more than 1,000 applicants, vying for some of the original $2.3 billion in clean energy investment tax credits. The companies receiving those initial funds are set to be announced in January. Funding for the tax credits come from $200 billion in savings from the bank bailout fund, which has been extended to next year. (Check out the video below for a more detailed explanation.)

“We have to jump start growth in green manufacturing and part of that is encouraging companies to build the components of green technology right here on American soil,” Vice President Biden said. “By combining the most talented workforce, the most entrepreneurial businesses, the best universities in the world with seed capital from government investment, we can once again produce cutting-edge technology that creates 21st century jobs here is America.”

This announcement comes on the heels of President Obama’s recent speech focusing on boosting job growth through energy-efficiency programs, including a home retrofitting program dubbed “Cash For Caulkers.”

White House and Congressional leaders don’t expect details of the program to be finalized until early next year.