Bipartisan group of 12 Senators calls for PTC extension

U.S. Sen. John Kerry (D-Mass.) and 11 colleagues from both parties wrote to Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) Wednesday urging swift action on extension of the wind energy production tax credit (PTC).

In addition to Kerry, the letter was signed by Sens. Jerry Moran (R-Kan.), Mark Udall (D-Colo.), Michael Bennet (D-Colo.), John Boozman (R-Ark.), Tom Harkin (D-Iowa), Chuck Grassley (R-Iowa), Tim Johnson (D-S.D.), John Hoeven (R-N.D.), Scott Brown (R-Mass.), John Thune (R-S.D.), and Jon Tester (D-Mont.).

“An extension of the wind production tax credit should provide for some long-term stability while setting forth a path for how the wind industry can move towards a market-based system. While it is clear that the wind industry currently requires tax incentives like the production tax credit to compete, Congress needs to provide the wind industry with the stability and predictability to plan for the future,” wrote the Senators.

In a news release on the letter, Kerry added, “There are too many companies right here in Massachusetts that are already feeling the effects of an expiring wind production tax. No major wind developer has made substantial plans for 2013 installation, and no major turbine manufacturer has orders for 2013 for the United States. Second Wind, for example, has already suffered delays and mass cancellations, causing them to lay off 30 percent of their workers. We simply cannot afford to lose jobs like this in an industry that is primed to help America retain its place as a global leader.” 

A House bill seeking to extend the PTC has 70 cosponsors, including 18 Republicans. This legislation has 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 and the bipartisan Governors’ Wind Energy Coalition, which includes 23 Republican and Democrat Governors from across the U.S.

Further endorsements of the wind energy production tax credit

The full text of the letter follows:

February 22, 2012

The Honorable Harry Reid
Majority Leader
United States Senate
United States Capitol
S-221
Washington, D.C.

The Honorable Mitch McConnell
Minority Leader
United States Senate
United States Capitol
S-230
Washington, D.C.

Dear Majority Leader Reid and Minority Leader McConnell:

Due to our country’s diverse energy needs, we write to urge you to address expiring tax provisions supporting wind energy production. The future of the American wind industry requires a stable tax environment in which to operate. If we are to expect wind energy to contribute to our country’s future energy needs, Congress must quickly work to reauthorize the wind production tax credit before our wind production capabilities are damaged. We ask that you move quickly to extend the production tax credit.

The growth in installations is supported by the rise of the domestic manufacturing of the wind facilities’ critical components. According to the American Wind Energy Association (AWEA), turbines, towers, and assembled nacelles are produced in over 400 manufacturing facilities that employ tens of thousands of skilled American workers. Failure to extend the production tax credit will weaken this growing manufacturing sector and destabilize an industry just before it completes its transformation to being cost competitive in the marketplace.

By extending this production tax credit, we must also be mindful of our country’s current fiscal situation. An extension of the wind production tax credit should provide for some long term stability while setting forth a path for how the wind industry can move towards a market-based system. While it is clear that the wind industry currently requires tax incentives like the production tax credit to compete, Congress needs to provide the wind industry with the stability and predictability to plan for the future.

We are committed to working towards an energy policy that encompasses all forms of domestic capabilities. As our country seeks healthy industries and increasing job opportunities to aid in our economic growth, we urge you to pursue an extension of the wind production tax credit as soon as possible.

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U.S. Rep. Steve King (R-IA): PTC is jobs engine conservatives should support, February 17, 2012
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