Plug Power Inc (NASDAQ: PLUG) is having an overwhelmingly strong day in the market today after a tax credit announcement sent the fuel cell industry into excitement. Today, we’ll talk about the tax credit, what we’re seeing from PLUG, and what we’ll be watching for with regard to the stock ahead.
PLUG Gains On Tax Credit
As mentioned above, Plug Power is having an incredible day in the market today after issuing a press release in celebration of a tax credit to the fuel cell industry. In a press release, the company announced that it is celebrating the reinstatement of the fuel cell investment tax credit, also known as ITC.
In the release, PLUG said that Congress passed and the President signed into law, the Bipartisan Budget act of 2018. This act included a five-year phase down and phase out of the expired ITC. In the release, PLUG said that with the reinstated fuel cell tax credit in place, the playing field has been reestablished for alternative energy power solutions.
The ITC extension will move through 2022. Over time, the credit will phase down from 30% to 26% in 2020 and 22% in 2021. Ultimately, the credit plays a crucial role in keeping the American-made fuel cell industry in place and gives the industry room to scale. In a statement, Andy Marsh, CEO of PlugPower, had the following to offer:
Over the past two years, I have seen true bipartisan efforts to bring this across the finish line… Congress has once again created a fair and level playing field which enables the best and most beneficial technologies to prevail in the marketplace on merit. This tax credit extension is a win for the fuel cell industry and it is protecting good-paying American manufacturing and service jobs, not just in New York, but across the country.
The above statement was followed up by U.S. Senator Charles E. Schumer. Here’s what he had to offer:
This tax credit not only incentivizes businesses to purchase clean, American-made fuel cells from innovative companies like Plug Power, but it is also a proven job creator. When I visited Plug Power in 2010 the company had 87 employees, when I returned in 2016 they had over 300 employees, and revenue had increased by 400 percent! The ITC tax credit had a lot to do with that success, so I knew it must be renewed, but it wasn’t easy. I’ve been working for over two years to bring my colleagues together, from both sides of the aisle, to pass this extension, and yesterday our hard work finally paid off. Simply put, this pro-growth credit will continue to allow companies like Plug Power grow and create even more jobs for a generation to come.
What We’re Seeing From The Stock
As investors, one of the first lessons we learn is that the news moves the market. In this particular case, the new proved to be overwhelmingly positive as the tax credit will assist Plug Power in continued growth. As a result, we’re seeing strong gains in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:20), PLUG is trading at $1.80 per share after a gain of $0.07 per share or 4.36% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PLUG. In particular, we’re interested in following the story surrounding the company’s ongoing growth thanks to the help of the ITC tax credit extension. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!