By Kevin Grewal, editorial director at www.SmartStops.net

NEW YORK ( TheStreet.com) -- When Congress returns from its summer vacation, it will consider legislation that could further ignite investment in renewable energy.

This bill that will be debated will guarantee a market for renewable power projects and its industry. The bill is a feed-in tariff bill which will decrease U.S . dependency on foreign energy and create American jobs. The debate, some say, has the fervor similar to the cash-for-clunkers program.

Some highlights of the bill include:
  • a 20% energy tax credit for investment in energy storage property directly connected to the electrical grid,
  • a 30% energy tax credit for investment in energy storage property used at the site of energy storage,
  • a 30% nonbusiness energy property tax credit for the installation of energy storage equipment in a principal residence and to make property that is directly connected to an electrical grid that is designed to receive, store and convert energy eligible for new clean renewable energy bond financing.

    Many believe that the bill will encourage an emphasis on research and development and enable the industry to sustain its attractiveness and upward trend. Some equities that will be influenced are the following:

    The PowerShares WilderHill Clean Energy ( PBW), which has nearly doubled since its March close of $5.87 to close on Aug. 5 at $10.74

    Suntech Power Holdings ( STP), which is up 269% from a February low of $5.21 to close at $19.20 on Aug. 5.

    Market Vectors Alternative Energy ETF ( GEX), which has rebounded nicely from a low of $14.78 in March to close at $24.79 on Aug. 5, an increase of 68%.

    First Solar ( FSLR), up 44% after witnessing a March low of $103.97 to close at $149.54 on Aug. 5.

    Keep in mind, when dealing with equities there are inherent risks and a great way to mitigate these risks is through the utilization of an exit strategy. According to the most recent data at www.SmartStops.net, an upward trend in the aforementioned equities could potentially be coming to an end at the following price levels: PBW at $9.86; STP at $16.65; GEX at $23.88; FSLR at $143.72. These price levels and trigger signal changes on a daily basis as the markets fluctuate, and are updated daily at www.SmartStops.net.

    -- Written by Kevin Grewal in Laguna Niguel, CA

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