Wind and Solar Leaders Urging Tax Incentives

Wind and Solar Leaders Urging Tax Incentives





January 2009 - The American Wind Energy 
Association and the Solar Energy Industries Association today reported 
that both wind and solar energy enjoyed a record-breaking year in 2008. 
But both industry trade groups say the renewable energy market could fall 
in 2009 if Congress and the incoming administration do not take swift 
action to help make renewable tax incentives work in today's difficult 
economy.
 
AWEA chief Denise Bode and SEIA head Rhone Resch both cited the need to 
make the investment tax credit and the production tax credit refundable to 
preserve their effectiveness in the current economic climate and maintain 
the strong growth of both industries.
 
President-elect Barack Obama Thursday announced his plan to double 
renewable energy production across the United States over the next three 
years. The wind and solar industry leaders said the tax incentives must be 
made refundable to turn that target into a reality.
 
"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," said Bode, an energy policy expert and former Oklahoma 
Corporate Commissioner. 

The world's largest solar power facility, in the Mohave Desert near 
Kramer Junction, California, covers 1,000 acres. It generates 150 
megawatts of power, enough to supply electricity to 150,000 homes. 

On October 3, 2008, Congress passed an extension of the two tax credits 
after much lobbying from the renewable energy industry groups and 
environmental groups across the country.
 
But Bode and Resch say that current economic conditions reduce the 
effectiveness of the tax credits since most companies and individual tax 
filers expect lower tax liabilities.
 
Making renewable tax credits refundable, like those for biodiesel and 
other alternative transportation fuels, is essential to ensuring continued 
wind and solar industry growth in 2009 and 2010, they 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," said Bode, who came to the AWEA 
leadership post this month from the American Clean Skies Foundation, a 
nonprofit educational foundation and think tank. 
"Congress must use the stimulus bill to move us away from our 
backwards-looking, recession-burdened economy and toward a new era of 
recovery and prosperity with solar and wind leading the way," said Resch, 
a registered lobbyist for clean energy development and climate change 
issues.
 
"Our industries have become powerful economic engines in the U.S., each 
year creating tens of thousands of new jobs and billions of dollars in 
economic investment. And we have the potential to put many thousands more 
Americans back to work," he said. "But due to the recession, projects are 
now being put on hold, factories are closing and workers face potential 
layoffs unless Congress refines the tax credits now so they work as 
originally intended."
 
In 2007 and 2008, more than 50 wind energy manufacturing facilities were 
opened, expanded or announced in the United States, adding 14,000 
employees. 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 jobs in the last two years. 
According to a report last year by Navigant Consulting, the solar energy 
sector alone will create 440,000 permanent jobs and spur $325 billion in 
private investment by 2016 with the investment tax credit 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," said Bode.
 
"The American public overwhelmingly supports renewable energy and these 
policies. Our elected leaders have an opportunity to support renewable 
energy in the stimulus bill that will keep these vitally important 
industries growing in the U.S.," said Resch. 
AWEA estimates that last year the wind industry installed a record 7,500 
megawatts of capacity in the U.S., bringing total wind capacity in the 
U.S. to about 24,000 megawatts. For the first time, the United States now 
leads the world in installed wind power generating capacity. 
The solar industry is estimated to have nearly doubled growth of solar 
photovoltaic installations in 2008. The California Solar Initiative 
reported the growth of photovoltaic installations doubled in 2008 from 
2007.





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