Alt-energy credits expiring because of congressional impasse

Tax credits crucial to the continued existence of the U.S. solar, wind and biofuel industries will expire in three months unless Congress renews them. 

But the New York Times is reporting that the House and Senate are stuck in a stalemate over the credits, "leaving the future of the nascent industry in limbo." Both houses have passed a version of the bill extending the credits, but can't  reconcile their differences.

Support for extending the credits comes from such varied groups as the Sierra Club and the National Association of Home Builders. But the House will not take up the measure again before adjourning next Monday, according to the Silicon Valley Business Journal and the Senate seems unlikely to pass the House version. Solar industry leaders said they hope to see a renewed interest in passing the tax breaks after the November election is over.

"Both versions would extend for one year production tax credits for wind energy, with an eight-year extension for investment tax credits for solar energy projects," reports Reuters. "Both provide tax credits for purchasing plug-in electric vehicles, though at different amounts. The bills also provide incentives for the use of biodiesel."

How important are the credits? "The solar industry alone has estimated that it could create more than 400,000 jobs if it receives an eight-year extension of its investment tax credit," the Associated Press says. Don't think of this as just mom-and-pop operations, either: the largest wind AND solar energy producer in the U.S. is Florida Power & Light, which this year announced plans for new solar and wind projects in Florida.

"With hundreds of thousands of American jobs and billions of dollars in clean energy investment at risk, we urge congressional leaders not to leave for the election recess" until reaching an agreement, the CEOs of national hydropower, geothermal, solar and wind energy associations said in a statement.

[Photo: Getty Images]

Craig Pittman, Times staff writer

Comments

[paminator]

This is the best thing that could happen to wind and solar. Both industries claim they can provide energy at competitive prices. Both industries have huge backlogs of orders that keep prices high. Both industries are attracting private investments.

Scrapping the tax credits will reduce demand, which will lower prices and allow the public to have a clearer picture of whether alternative energy sources such as wind and solar are actually competitive.

Although it is already clear that they are not competitive, based on advocates warning of an alternative energy market collapse without with tax credits.