|
PTC NOT EXTENDED DUE TO
PARTISAN GRIDLOCK
Republicans and Democrats Pledge to Extend Credit Next Year
The wind
energy Production Tax Credit (PTC) will expire December 31 without being
extended. Congress adjourned for the year without agreeing to an
economic stimulus bill containing tax credit extensions, or even passing a
routine one-year extension of expiring tax provisions. Congress is
expected to act on a tax credit extension bill in 2002. The PTC -– which provides a 1.5 cent per kWh credit
(adjusted annually for inflation and now 1.7 cents/kWh) -– is an
important factor in financing new wind power installations.
A 2-year PTC extension had been included in the so-called “economic
stimulus” bill that Congress has been debating for the past few months.
Despite agreement on nearly every major issue, negotiations on that
legislation ultimately failed due to partisan differences over how
to deliver health care services to unemployed workers.
A last-ditch effort to extend all 17 expiring tax credits, including the
PTC, also failed. This effort would have involved attaching the extension
to a bill providing financial support for victims of the September 11
terrorist attacks. The House and Senate adjourned for the year on
Thursday, December 20, closing all possibility for additional attempts for this year to extend any of the expiring tax credits.
"Extending the PTC would have allowed the U.S. wind energy industry
to continue expanding, producing new high-tech jobs, boosting rural
economic development and helping achieve cleaner air,” said American
Wind Energy Association (AWEA) executive director Randall Swisher.
“The inability of Congress to extend expiring tax credits means this
economic development will be delayed a number of months into next year,”
Swisher
said.
Key Senators and House members have indicated they plan to act on a tax
extension bill next year. In the past, such bills have contained
retroactive treatment for credits that have expired. Congress
officially returns January 23, 2002, but realistically will not complete
action on tax legislation until the spring. In the interim, AWEA
will be seeking a letter from the Republican and Democratic leaders of the
House and Senate tax committees indicating their intent to extend the PTC
as expeditiously as possible next year.
"Despite the inability of Congress to extend the PTC this year, we
are very gratified by the strong bipartisan support expressed for wind
energy in both houses of Congress and from the Bush Administration,"
said AWEA legislative director Jaime Steve.
"Sen. Chuck Grassley (R-Iowa) and Rep. Mark Foley (R-Fla.), both of
whom sponsored legislation calling for a five-year extension, provided
strong leadership over the last two years," said Steve.
"They have done a tremendous job of lining up support from members of
Congress.”
Key players in AWEA’s ongoing effort include House Ways & Means
Committee Chairman Bill Thomas (R-Calif.), Senate Finance Committee
Chairman Max Baucus (D-Mont.) and Sens. Tom Daschle (D-S.D.), Jim Jeffords
(I-Vt.), Harry Reid (D-Nev.), Frank Murkowski (R-Alaska), Jeff Bingaman
(D-N.M.), Mike Crapo (R-Idaho), Byron Dorgan (D-N.D.), Kent
Conrad (D-N.D.), Gordon Smith (R-Ore.), Jay Rockefeller (D-W.V.) and
others.
Extension of the PTC was included in both the Adminsitration's fiscal 2002
budget proposal and its energy policy plan. "Within the Bush
Administration, David Garman (Assistant Secretary of Energy for Energy
Efficiency and Renewable Energy) was a vigorous advocate for extending the
tax credit," said Steve.
"The ongoing PTC effort has spanned the tenure of current AWEA
president David Blittersdorf (NRG Systems) and past president Dean
Gosselin (FPL Energy). Each made a significant contribution in
building the support necessary to ultimately achieve victory,” Steve
said.
"Particular thanks go to AWEA member companies, individual members,
component suppliers and utility industry and environmental allies who
helped build strong support for an extension,” Steve added.
Since
beginning the PTC effort AWEA and its allies have achieved a number of
milestones, including:
-
Attracting
more than 150 sponsors to the House PTC bill (H.R. 876) introduced by
Reps. Foley, Robert Matsui (D-Calif.), Jerry Weller (R-Ill.) and Karen
Thurman (D-Fla.);
-
Securing
26 sponsors to the Senate PTC bill (S. 530) introduced by Sens.
Grassley and Kent Conrad (D-N.D.), both of whom serve on the
tax-writing Finance Committee; and
-
Gaining
inclusion of the PTC extension within proposed economic stimulus
packages put forward in both the House and Senate.
###
AWEA, formed in 1974, is the national trade association of the U.S. wind energy
industry. The association's membership of more than 700 includes turbine
manufacturers, wind project developers, utilities, academicians, and interested
individuals from 49 states. More information on wind energy is available
from the home page
of the AWEA web site: www.awea.org
|
