« New Report Follows Money Trail Behind Attacks on Clean Energy | Main | Tar Sands Oil: Protest in Vermont, Spills in Wisconsin »

August 03, 2012

Wind Production Tax Credit Moves Forward

WindClean energy tax provisions drive private investment, create jobs, reduce harmful pollution, and strengthen our competitiveness. That’s why we need Congress  to pass a multi-year extension of the wind energy production and investment tax credits immediately.

The Wind Works Campaign gained additional momentum Thursday when the Senate Finance committee voted to extend the wind energy production tax credit (PTC) and investment tax credit (ITC) for a full year.  The move also allows projects that begin construction before January 1, 2014 to qualify for the incentive as well.

As with previous PTC renewal votes, the committee approved the bill with an overwhelmingly bipartisan vote of 19 to 5. And it’s a good thing they did. With today’s news that unemployment remains at 8.3 percent, this bill is needed even more than ever.  The PTC and ITC could create nearly a half a million jobs by 2030. Extending the wind energy production tax credit today could prevent 37,000 Americans from losing their jobs in the wind industry.

What are these important incentives? The PTC is a tax credit that lowers the federal income tax of qualified renewable energy projects based on electrical output. The credit covers a variety of technologies but wind has been the main beneficiary, and it has helped support this industry for more than a decade.

Meanwhile, the investment tax credit reduces federal income taxes based on capital investment,   which helps to support the offshore wind industry Offshore wind is indeed our largest untapped clean energy resource and is an industry that could create many more manufacturing jobs.

The wind industry, buoyed by this critical incentive, has grown tremendously in the past 20 years. Since2007, wind has accounted for 35% of all new electricity generating capacity. It is now cost-competitive with fossil fuels, and between the years of 2005-2011, helped attract on average of $15 billion in investment compared to the $1.2 billion this credit cost the federal government. In 10 states, wind accounts for 10% of electricity. In Iowa and South Dakota, wind produces about 20% of the state’s electricity.

Today the industry supports 75,000 jobs. These jobs are good-paying jobs that can’t be outsourced, and we need Senate Leaders Harry Reid and Mitch McConnell to bring this legislation to the Senate floor for a vote immediately to protect these jobs.

We also need the House to take note. They have their work cut out for them, and we must urge them to start work on a tax package today. Representative Pat Tiberi (R-Ohio), who is spearheading the House Ways and Means Committee’s  efforts on this issue, repeated yesterday that his legislation will not be ready until after the November election. That’s simply not soon enough.

Campaign season is coming up, during which candidates will be talking about what they did or would do for jobs. This should be at the top of everyone’s list. Maybe your member needs a friendly reminder- help them remember by taking action today.

-- Radha Adhar, Sierra Club Associate Washington Representative

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d83451b96069e2017616fcd30a970c

Listed below are links to weblogs that reference Wind Production Tax Credit Moves Forward:


User comments or postings reflect the opinions of the responsible contributor only, and do not reflect the viewpoint of the Sierra Club. The Sierra Club does not endorse or guarantee the accuracy of any posting. The Sierra Club accepts no obligation to review every posting, but reserves the right (but not the obligation) to delete postings that may be considered offensive, illegal or inappropriate.

Up to Top

Find us on Facebook Follow us on Twitter Rss Feed



Sierra Club Main | Contact Us | Terms and Conditions of Use | Privacy Policy/Your California Privacy Rights | Website Help

Sierra Club® and "Explore, enjoy and protect the planet"® are registered trademarks of the Sierra Club. © 2013 Sierra Club.
The Sierra Club Seal is a registered copyright, service mark, and trademark of the Sierra Club.