The American Wind Energy Association (AWEA) and the Solar Energy Industries Association (SEIA) joined together on Friday to request that Congress provide greater financial incentives for the renewable energy industries they represent.
The two organizations said both industries enjoyed record-breaking years in 2008, but face a dramatic reduction in 2009 if Congress and the incoming Administration do not take swift action.
AWEA CEO Denise Bode and SEIA President and CEO Rhone Resch both cited the need to make the investent tax credit (ITC) and production tax credit (PTC) refundable to preserve their effectiveness in the current economic climate and maintain the growth of both industries.
That would mean that if a project developer had no tax liability, they would receive funds from the government equal to the credit.
“We applaud President-elect Obama’s aggressive goal of doubling the production of alternative energy in the next three years. Wind energy is ready to do its part, but we face a major obstacle in this economic downturn,” Bode said. “We can continue to grow through this difficult period only if the new Administration and the 111th Congress act immediately to make renewable tax incentives refundable so they can work as they are intended to–even in the current financial context. This is a critical first step to building the new, clean energy economy.”
In Octobe 2008, Congress passed an extension of the ITC and PTC tax credits. Bode and Resch noted that current economic conditions substantially reduce the effectiveness of the tax credits since most companies and individual tax filers expect lower tax liabilities. Making the tax credit refundable, like those for biodiesel and other alternative transportation fuels, restores the incentives’ value, they said.
In 2007 and 2008, more than 50 wind energy manufacturing facilities were opened, expanded or announced in the U.S., adding 14,000 wind jobs. More than half of those jobs were added in 2008, even as the overall U.S. economy was faltering.
The solar energy industry employs more than 80,000 people in the U.S. and created more than 15,000 solar jobs in the last two years. According to Navigant Consulting, the solar energy sector alone will create 440,000 permanent jobs and spur 325 billion in private investment by 2016 with the ITC in place.
“By working together to repair this critical policy, we can put Americans back to work, help achieve national energy security and start down a path that will make America a leader in renewable energy manufacturing and development,” added Bode.
In Related News…
A Washington Post article explains in detail why greater financial support will be needed to achieve president-elect Obama’s goal of doubling renewable energy in the next three years. Link to that article below.
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