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Why tax credits are critical to wind for growth

Why tax credits are critical to wind for growth

The following article is cross-posted from the Natural Resource Defense Council's (NRDC) Switchboard blog with permission of the author. Nathanael Greene is NRDC's Director of Renewable Energy Policy.

[July 13, 2012] Today, Department of Energy Secretary Steven Chu visited Ingeteam, a wind and solar equipment manufacturer in Milwaukee. The visit showcased the company’s recent $21 million expansion and the 275 jobs the company has created or plans to add by 2015. It also indirectly demonstrated the growing wind energy industry in the state of Wisconsin (see more at NRDC’s renewable energy map).


Just as importantly, the visit highlighted the importance of the $1.66 million Advanced Manufacturing Tax Credit awarded to Ingeteam for the new facility, as well as the Production Tax Credit (PTC), and the instrumental role it plays in the U.S. wind industry and maintaining its 75,000 jobs.

In Washington, Congress is about to take up whether or not to extend the Production Tax Credit that’s vital to keeping companies like Ingeteam and the entire wind industry moving forward and closer to market competitiveness with the fossil fuel energy industry that has been subsidized for decades.

A bipartisan group of policymakers is seeking to extend the PTC, but their efforts have yet to gain critical mass. These tax credits have helped drive billions of dollars in investment and helped create or sustain tens of thousands of American jobs.

Navigant Consulting forecasts that 37,000 U.S. jobs will be lost if Congress fails to renew the PTC. Secretary Chu recognizes the importance of maintaining these jobs in our tough economic climate. If Congress fails to act, we will cede these jobs overseas, backtracking on our recent progress. Why would America choose cede these markets to China when we can capture them here?

On the other hand, extending the PTC through 2016 would support 95,000 jobs, and drive $16.3 billion worth of investment, while helping companies like Ingeteam continue hiring workers and manufacturing renewable energy components. Ingeteam, which makes electrical equipment for renewable energy systems, is a unique company, but it is part of a growing number of clean, renewable energy companies jump-starting economic growth and creating jobs across America. It is one of nearly 500 companies manufacturing parts for the wind industry in the United States employing 75,000 workers nationwide.

Chu’s visit underscores the importance of this industry to develop and deploy solutions to harness our clean, renewable energy resources, create jobs, and tap into some of America’s greatest assets: our ingenuity and innovation.

——————

[The PTC provides an income tax credit of 2.2 cents per kilowatt-hour for the first 10 years of electricity production from utility-scale turbines. It is set to expire on Dec. 31 unless Congress extends it first.

[A House bill seeking to extend the PTC has 105 cosponsors, including 24 Republicans, while a similar Senate bill is cosponsored by seven Senators, including three Republicans.  PTC extension efforts have received the endorsement of a broad coalition of more than 370 members, including the National Association of Manufacturers, the American Farm Bureau Federation, the Edison Electric Institute, and the Western Governors’ Association. A PTC extension also has the support of the U.S. Chamber of Commerce, the National Governors Association, and the bipartisan Governors’ Wind Energy Coalition, which includes 23 Republican and Democratic Governors from across the U.S.  A PTC extension has been endorsed by a number of newspapers across the country, including the Houston Chronicle, The New York Times, the Denver Post, the Daily Oklahoman, and the Toledo Blade.

[Further endorsements of the wind energy production tax credit.]

Related articles:

DOE official: PTC has generated 'innovation, jobs', July 16, 2012

Small business bill stalls; PTC extension not considered, July 13, 2012
Bennet, Moran, Udall continue bipartisan push for wind energy tax credit, July 12, 2012
Steelworkers call for extension of 'vital' PTC, July 11, 2012
Multi-billion-dollar wind farm won't expand in 2013 without PTC extension, July 10, 2012
As Congress delays PTC extension, Gamesa announces furloughs, July 9, 2012
Pew program director calls PTC 'wildly successful,' urges extension, July 6, 2012
S.D. technical school president on edge about PTC extension, July 3, 2012
Boulder Chamber of Commerce backs PTC extension, July 2, 2012
As Congress delays in extending PTC, some wind developers take aim at Canada, June 29, 2012
18 House freshmen, including 16 Republicans, petition leadership for immediate PTC extension, June 28, 2012
Sierra Club's Hamilton backs PTC, American jobs, June 27, 2012
Loebsack receives USA Wind Jobs Champion award, urges PTC extension, June 26, 2012
Bode: Extend wind incentive now, June 25, 2012
Pueblo Chieftain backs Udall on PTC campaign, June 22, 2012
Leading House Republican calls for PTC extension, June 21, 2012
Iraq vet: PTC, wind energy make America safer, June 20, 2012
CEO, environmentalist call for PTC extension, June 19, 2012
Bingaman: Inconsistent U.S. energy policy leads to competitive disadvantage, June 18, 2012
Minnesota's Rep. Walz seeks PTC extension, cites 'homegrown American jobs,' June 15, 2012
Microsoft, Sprint join growing list of companies calling on Congress to extend PTC, June 14, 2012
With daily speeches, Sen. Mark Udall goes to bat for PTC extension, June 13, 2012
Kansas City Star: Gov. Brownback right to call for PTC extension, June 12, 2012
Aberdeen News, Pacific Coast Business Times join call for PTC extension, June 11, 2012
Sierra Club launches 'Wind Works' campaign, June 5, 2012
Fiberglass supplier worries about PTC extension, June 2, 2012
Pennsylvania newspaper joins in growing call for PTC extension, June 1, 2012
Sec. Salazar, Montana Gov. Schweitzer call for PTC extension, May 30, 2012
WindTV: ZF Wind Power's Georgia plant generates gearboxes and jobs, May 29, 2012

PTC extension passes milestone: 100 cosponsors in U.S. House, May 25, 2012

CEO cites wind power's benefits in urging PTC extension, May 24, 2012
As expiration of PTC nears, two major Pennsylvania wind projects cancelled, May 18, 2012
Support tax credit to help Ohio wind industry, May 16, 2012
PTC extension can avert boom and bust, May 15, 2012
Iowa newspaper endorses wind PTC extension, May 14, 2012
Toledo Blade becomes latest newspaper to endorse PTC extension, May 11, 2012
PTC, wind power bring cost savings to Iowa utility customers, May 10, 2012
N.Y. port sees action due to wind power, PTC, May 9, 2012
Tax payments to S.D. counties illustrate impact of wind tax credit, May 8, 2012
PTC extension part of 'all of above' policy, says sponsor Reichert, May 7, 2012
PTC extension: Why the stakes are so much bigger this year, May 4, 2012
Sen. Bennet: Congress 'not doing job' on PTC extension, May 3, 2012
Veterans training co. officer: PTC extension good for vets, economy, May 2, 2012
NW policy group: PTC helps lead to clean energy future, April 30, 2012
Congressman Thompson, veterans, industry experts call for PTC extension, April 27, 2012
Layoffs in U.S. wind power accelerate as Congress fails to act on PTC extension, April 26, 2012
Submit a comment to the House Ways & Means Committee: Extend the PTC immediately!, April 25, 2012
High-tech component manufacturer calls for PTC extension, April 24, 2012
Union leader: Earth Day is also about jobs, and a PTC extension, April 23, 2012
New graphics reveal impact of impending PTC expiration on wind industry, April 20, 2012
'Think globally, act locally': News items underscore PTC and manufacturing jobs, April 19, 2012
Senator Levin visits Michigan wind component maker, urges PTC extension
, April 18, 2012
Wind power drives strong interest in U.S. renewable electricity generation
, April 17, 2012
WindTV: WINDPOWER in Atlanta, spotlighting PTC expiration risk to manufacturing growth
, April 16, 2012
AWEA Annual Market Report underscores need for PTC extension
, April 13, 2012
Iowa city prospers, hopes for PTC extension
, April 12, 2012
Denver Post editorial writer: PTC extension 'important to nation, Colorado,'
April 11, 2012

From Nevada, Michigan, Montana: Calls for PTC extension
, April 10, 2012

Sierra Club, BP agree: Extend the PTC, April 9, 2012
South Dakota newspaper joins others in endorsing PTC
, April 6, 2012
National Governors Association: Extend the PTC
, April 6, 2012
Sen. Bennet tours factories, pushing jobs and PTC extension
, April 5, 2012
WindTV Holiday Special: Church lives mission with wind power
, April 4, 2012
Montana county commissioners call for PTC extension
, April 3, 2012
'Father of PTC' explains wind incentive's value
, March 30, 2012
Citing 'all of above,' former FERC chair urges PTC extension
, March 29, 2012
Manufacturers tell Senate panel: PTC extension urgently needed
, March 28, 2012
WindTV: Colorado county gets big boost from wind power
, March 26, 2012
Former Congressman Boucher sees PTC extension likely
, March 26, 2012
WindTV: Wind power breathes new life into small Colorado town
, March 21, 2012
Citing need for certainty, BP's Landis calls for PTC extension
, March 20, 2012
In op-ed, Kansas Governor, Senator call for PTC extension
, March 19, 2012
Bipartisan group of Senators introduces bill to extend PTC
, March 16, 2012
Houston Chronicle editorial supports PTC extension
, March 15, 2012
Southern Alliance head urges: Extend the PTC
, March 14, 2012
WindTV: Missouri manufacturer grows with the wind
, March 12, 2012
Oklahoma and America need wind technicians–and a PTC extension
, March 8, 2012
WindTV: An American family, powered by a paycheck from wind
, March 5, 2012
Salazar, citing 'race we cannot cede', backs extending PTC
, March 1, 2012
Kerry, Brown win praise for bipartisan support of PTC extension
, February 29, 2012
Wichita Eagle editorial blog endorses PTC extension
, February 28, 2012
Daily Oklahoman: PTC extension “makes sense,”
February 27, 2012
Bipartisan group of Illinois Representatives supports PTC extension
, February 24, 2012
Kansas City Star backs PTC extension, praises Brownback, Moran
, February 23, 2012
Bennet visits composites factory, urges PTC extension
, February 23, 2012
Moran visits Siemens factory, pushes PTC extension
, February 22, 2012
WindTV: PTC key to wind power manufacturing jobs
, February 21, 2012
Topeka Capital-Journal: Extend the PTC
, February 21, 2012
U.S. Rep. Steve King (R-IA): PTC is jobs engine conservatives should support
, February 17, 2012
Bennet, Moran continue bipartisan push to extend PTC
, February 16, 2012
Major U.S. consumer brands like Nike on extending the PTC: Just Do It!
, February 15, 2012
Oklahoma Gov. Fallin urges conferees: Extend the PTC
, February 15, 2012
Michigan worker's plea: Extend PTC, help wind power create U.S. jobs
, February 13, 2012
Bipartisan letter from entire Iowa Congressional delegation urges: Extend the PTC
, February 10, 2012
Senate Energy Chairman Bingaman: Act now to save clean-energy jobs
, February 9, 2012
Bipartisan letter from Colorado Congressional delegation urges: Extend the PTC
, February 8, 2012
Republican governors push for PTC extension; Senators express support
, February 2, 2012
U.S. Chamber of Commerce joins broad range of groups endorsing PTC extension
, February 1, 2012
WindTV: Wind power drives commerce in small-town America
, January 24, 2012
Denver Post endorses PTC extension 'sooner rather than later'
, January 18, 2012
WSJ op-ed: 'Want Growth? Try Stable Tax Policy'
, January 5, 2012
Red State Energy, Red State Jobs
, November 29, 2011

 

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