Throughout the year, several anti-wind groups have lobbied Congress to end the production tax credit (PTC). However, a group of governors seems to have the wind industry's back and is calling for a multi-year extension of the incentive.
Last week, the Governors' Wind Coalition, a bipartisan group of the nation's governors, sent a letter to leaders of Congress defending the wind PTC. Signed by 11 group members, the letter says the following:
"Almost a year ago, many of our citizens who work in the wind industry were subjected to an unnecessary series of layoffs and hardships because Congress failed to extend the wind energy production tax credit in a responsible and timely manner.
Across the nation – from Oregon to Vermont – thousands of Americans working in one of the nation's most important growth energy industries lost their jobs. We were witness to the hardships that over 5,000 Americans had to endure when they lost their jobs because of the anticipated expiration of the tax credit.
After Congress passed the tax credit extension in January, the nation's wind industry began a very troubled recovery. The clearest example is the loss of investments. In 2012, the wind industry invested nearly $25 billion. In the first six months of 2013, the wind industry installed just one turbine – a 99 percent drop in investments.
This Congressionally sanctioned uncertainty has hit the nation's wind industry incredibly hard. The current wind energy production tax credit is due to expire on Dec. 31, 2013. We respectfully urge you not to repeat the legislative brinksmanship of 2012 and to adopt a responsible multi-year extension of the production tax credit so that the wind industry and related industries can plan for a smooth transition to the expiration of the tax credit.
Our nation has some of the best wind resources in the world, but the lack of stable policy hinders the nation's ability to develop them fully. The nation's wind industry developers do not need this tax credit forever, but they do need policy certainty in the near term to bring their costs to a fully competitive level.
Please support our states in the pursuit of economic strength, energy diversity, and consumer savings, by acting quickly to adopt a responsible multi-year extension, even if it reduces in value over time, of the production tax credit."
A copy of the letter is available HERE.