Fiscal deal includes estimated $12.1 billion in tax credits for wind energy industry

[WestVirginiaRebel]

Fox News:

The fiscal deal cemented Tuesday night includes a one-year extension of tax credits for the wind-energy industry that will cost taxpayers an estimated $12.1 billion.

The extension was part of a tax-extender package that the Senate Finance Committee approved in August and was included in the final package that Congress approved before sending it to the president.

Congressional Republicans and other fiscal conservatives opposed the extension, arguing the deal between Congress and the White House was supposed to include cuts to federal spending, not additional subsidies for alternative-energy programs.

Prior to the vote, Tennessee Republican Sen. Lamar Alexander cited several reasons to end the tax credit – including the cost to taxpayers, putting coal and nuclear energy at an economic disadvantage and wind companies producing just 3 percent of U.S. electricity despite receiving billions in subsidies over the past 20 years.

“A better idea is to reduce the debt and increase research for solar, batteries, carbon capture from coal plants, more energy-efficient buildings, advanced biofuels and the disposal of nuclear waste,” Alexander wrote in The National Journal. “Then let the marketplace decide which fuels can produce enough clean, cheap reliable energy.”

The Production Tax Credit was created in 1992 and has been extended for wind companies several times over the past several years at an estimated cost of $16 billion to taxpayers.

The extension gives wind energy producers a 2.2-cent per kilowatt-hour credit over the next 10 years and will cost taxpayers the roughly $12.1 billion more over that period, according to Congress’ Joint Committee on Taxation.

President Obama has made taxpayer support of alternative or green energy a major part of his administration. The legislation awaiting his signature also extended credits for biofuels and energy-efficient homes.

Ending the tax credits would have eliminated 37,000 U.S. jobs, and layoffs had already started as a result of the uncertainty, according to the American Wind Energy Association. The group also says nearly 500 wind farms or factories now operate across the country and employ roughly 75,000 workers.

________

 

Windfarm windfall.

[Geee]

Issa takes aim at revised wind credit

 

 

A recently renewed wind power credit could face more scrutiny next Congress, as House Committee on Oversight and Government Reform Chairman Darrell Issa (R-Calif.) said Wednesday that the credit is of “serious interest" to his committee.

Issa criticized a "dramatic" alteration to the credit that he said amounted to an expansion of the program.

“In 24 hours the heavily subsidized wind industry has gone from the verge of collapse to a modern-day Gold Rush. H.R. 8 seems to create a perverse incentive to rush production of additional facilities even when there may not be adequate demand for wind, biomass, or geothermal energy,” Issa told The Hill in a statement.

The House and the Senate agreed Tuesday to extend a 2.2 cent per kilowatt-hour credit for wind power production through this year as part of the "fiscal cliff" deal. It also changed the incentive to let wind projects earn the credit if under construction — rather than in service — by the end of the year.

Issa's comment signals that the wind industry’s next battle — securing a long-term phase-out for the credit — could face significant hurdles.

 

http://thehill.com/blogs/e2-wire/e2-wire/275301-issa-wind-power-credit-of-serious-interest

[clearvision]

So if they move some dirt on a windmill project by the end of the year they get the credit for life of the windmill?