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On Wednesday, the Senate Finance Committee included measures to extend the Production Tax Credit (PTC) for renewable energy through the end of the 2009 in its version of an economic stimulus package originally proposed by President Bush. Under the Committee's bill, wind companies would receive a tax credit, currently 2 cents per kilowatt-hour of electricity generated, for each new wind turbine that goes into operation through 2009. The tax credit, which also would apply to electricity from solar, geothermal and other sources as well as energy-efficiency rebates, would cost approximately $5.5 billion. The measures were introduced to the committee by Sen. Charles Grassley (R-Iowa).
"Renewable energy production depends on investment," Grassley said. "Investors need certainty. They won't put their money out for a wind energy facility unless there's a reasonable expectation that tax incentives will continue into the future. For energy needs and for economic growth, we need to continue renewable energy provisions without interruption."
The bill would also extend for one year a credit, equal to 30 percent of qualifying expenditures, for the purchase for qualified photovoltaic (PV) property and solar water heating property used exclusively for purposes other than heating swimming pools and hot tubs.
The proposal extends the energy-efficient existing homes credit, extends the tax credit for the production of energy efficient appliances for two years, extends a credit to holders of clean renewable energy bonds, includes a deduction for energy-efficient commercial buildings, a credit for the construction of new energy-efficient homes and a credit for residential energy efficient property.
It is being reported that the Finance Committee's version of the stimulus package bill may face opposition in the Senate and from the White House.
The American Wind Energy Association (AWEA) applauded the Finance Committee bill. According to AWEA Executive Director Randall Swisher, the bill will be a benefit to wind industry.
"The extension of the production tax credit (PTC) is urgently needed to protect tens of thousands of U.S. manufacturing and construction jobs and create tens of thousands more, and to keep investment flowing into one of the fastest-growing and brightest sectors of our economy: renewable electricity," Swisher said.
"We urge the full U.S. Senate to move quickly to adopt the Finance Committee stimulus package that includes the PTC extension," Swisher continued. "Rapid action is pivotal if wind, solar and other renewable energy industries are to continue to grow, attract large-scale manufacturing investment and create jobs for Americans across the country."
Update: A vote in the Senate on the package has been delayed until next week. The Senate will wait until after the Super Tuesday primaries as Sen. Hillary Clinton (D-NY), Sen. Barack Obama (D-IL) and Sen. John McCain (R-AZ) are all currently campaining in thier bids for the presidency.
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-Deep Patel
www.gogreensolar.com
Clean-tech, renewable energy investments are no different than their dirty energy counterparts, they need two things: financial certainty, and a level playing field in weighing risk vs. reward. Extending for the very short term solar and wind tax benefits addresses the first, but only for the short term when long term, bold and visionary measures are needed.
Solar and wind, unlike the pork barrel bio-fuel projects that are front and center in the minds of beltway politicians and their agricultural masters, the primary recipients of valuable tax dollars. This is money that otherwise should be directed solar, solar PV, wind, geothermal, wave and other true clean-tech energy solutions. What we also have here is a failure to communicate with dollars, something the oil, coal, nuclear, and agricultural industries manage to do quite well.
This new addition to the stimulus package bill only adds a fraction of 1% to the overall cost. It is probably one of the most cost effective parts of the bill for stimulating the economy and benefiting the country. It will maintain thousands of good jobs, help create possibly thousands more and boost an industry that greatly benefits this country.
For these reasons, I can't imagine Bush allowing it to go through. It goes against his principles and he'll need to veto it.
Uh, GW didn't spur Texas to be a leader in wind power. The wind was in Texas long before GW. Generating wind is now competitive and Texas has a huge supply of the resource. These are the two reasons Texas is a leader in wind.
No politician or law did this.
Jon Burnham
I find it so amazing that something so obvious to the entire world (alternative energy) has been shot down for so long by our leaders. How sad it is for our future generations and those of us that want to be self-sufficiant and care for our plant. Senator Grassey is on the right track but will it have a chance in the White House? We can only pray GW could somehow find it in his heart to do something postive for this country before he makes his exit. Considering our nation should be a leader, I think we're far from winning the race.
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