Senate has it right on wind credits, House language must be struck to save 60,000 US wind jobs
WASHINGTON, D.C., Nov. 17, 2017 — The U.S. House of Representatives missed an opportunity today to stand up for 60,000 American workers and preserve $50 billion in private infrastructure investment. The tax reform bill passed by the House retroactively changes how businesses can qualify for wind energys primary investment tools, the wind energy Production Tax Credit (PTC) and Investment Tax Credit (ITC), which are already on a path to phase out by 2019.
"The House tax bill, far from being pro-business, would kill over half of new wind farms planned in the U.S. and undermine one of the countrys fastest growing jobs," said Tom Kiernan, CEO of the American Wind Energy Association (AWEA). "The wind industry tax reformed ourselves with bipartisan agreement in 2015. The Senate tax proposal gets it right by respecting those terms. Congress must act immediately in conference to drop the House provisions on the PTC and ITC, to restore the confidence of businesses ready to pour billions of dollars into job-creating American infrastructure."
The House bill undermines wind development by implementing a retroactive change to qualification rules for wind energy tax credits. Because businesses cant go back in time to requalify for the credits after ordering wind turbines and inking construction contracts, tens of thousands of jobs and billions of dollars of investment could be lost, and new business has stalled. The House bill would also terminate an inflation adjustment, significantly cutting the value of the PTC.
The Senate tax proposal that passed the Finance committee last night does not retroactively alter the wind energy PTC or ITC, leaving in place the phase out terms set in the bi-partisan PATH Act of 2015, keeping American workers on the job.
AWEA is the national trade association of the U.S. wind energy industry. We represent 1,000 member companies and over 100,000 jobs in the U.S. economy, serving as a powerful voice for how wind works for America. Members include global leaders in wind power and energy development, turbine manufacturing, and component and service suppliers. They gather each year at the Western Hemispheres largest wind power trade show, the AWEA WINDPOWER Conference & Exhibition, next in Chicago, May 7-10, 2018. Find information about wind energy on the AWEA website. Gain insight into industry issues on AWEA's blog, Into the Wind. And please join us on Facebook, and follow @AWEA on Twitter.