The U.S. Senate Finance Committee has voted 23-3 to extend over 50 tax policies through 2016, including the renewable energy Production Tax Credit (PTC) and Investment Tax Credit (ITC) that helps to encourage the development of more renewable energy projects including wind. To qualify for the credits, construction of a product must begin while the tax programs are in place.
The credits has expired at the start of this year, and according to Tom Kiernan, CEO of the American Wind Energy Association (AWEA), the action threw “the future of American wind energy into doubt once projects currently under construction are completed”.
“This is a big step in the right direction,” said Kiernan. “We applaud the committee’s vote because it recognizes that the vast majority of American voters support these policies and want them continued. We urge the full Senate and the House of Representatives to follow the Senate Finance Committee’s bipartisan lead, and quickly pass this tax extenders package, which will continue to grow American jobs and heavy manufacturing, and support rural economic growth.”
Kiernan said the federal PTC and ITC are predominant drivers of new wind farm development, and have helped lower the cost of American wind power by more than half over the last five years, while making the U.S. number one in the world in wind energy production.
Senate Finance Committee Chairman Orrin Hatch (R-UT) in the hearing regularly acknowledged the strong sense of bipartisan support for renewing the tax extenders package. Sens. Pat Toomey (R-PA), Dan Coats (R-IN), and Rob Portman (R-OH) withdrew amendments opposing the PTC, while Sen. Michael Bennett (D-CO) made the senators aware of the tremendous amounts of economic benefits and jobs wind power has created in Colorado.
In 2013, cites AWEA, after the renewable energy tax credits were allowed to expire even briefly, installations of new wind farms fell 92 percent, causing a loss of 30,000 jobs across the industry that year. After Congress renewed the PTC, the U.S. wind energy industry added 23,000 jobs the following year, bringing the total to 73,000 at the end of 2014.
Earlier this week, Sen. Chuck Grassley (R-IA) penned an op-ed renewing his call for Congress to extend the tax credits, saying they “bring certainty to investment that helps boost development, sustainability and expansion of homegrown renewable energy,” and that “the facts show that bringing stability and certainty to clean energy policy is good for the economy and the environment. Championing renewable energy that’s engineered by human ingenuity and produced by human hands builds upon America’s centuries-long promise of prosperity.”
Today, more than 70 percent of congressional districts contain operating wind turbines, wind-related factories, or both, according to industry data.