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As Wind Tax Credit Dominates Presidential Campaign, a Look At What’s at Stake
Climate Progress / Video Report
Published: Wednesday 15 August 2012
“Each year, the industry attracts $20 billion in private capital to the U.S., and most importantly, nearly 70 percent of all equipment used for wind farms comes from domestic manufacturers, according to the Department of Energy.”
How important is the wind industry to the U.S. economy? Since 2009, the wind industry has doubled its capacity, installing enough projects nationwide to power 12 million homes and supporting 75,000 jobs. Each year, the industry attracts $20 billion in private capital to the U.S. And most importantly, nearly 70 percent of all equipment used for wind farms comes from domestic manufacturers, according to the Department of Energy.
Mitt Romney has made his position clear on the campaign trail: He wants to increase taxes on the wind industry by eliminating a key federal credit — potentially threatening 37,000 jobs — and maintain nearly $40 billion dollars in tax credits for the mature oil and gas industry. Romney’s campaign admits this. And this stance has made a lot of Midwestern Republicans upset.
“The whole issue here is about fairness and equity. The older, carbon-based forms of generation have enjoyed benefits and tax subsidies within the tax code for 90 years,” says Harold Prior, Director of the Iowa Wind Energy Association. “While wind and solar and a lot of other renewables depend on highly visible, short-term tax subsidies that face expiration…and it really does not create a very predictable situation for the industry’s growth.”
So what’s at stake in the Midwest? Business leaders in Iowa — a swing state that gets 20 percent of its electricity from wind — explain why the tax credit is so important to local economies there:
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ABOUT Stephen Lacey
Stephen Lacey is a reporter/blogger for Climate Progress, where he writes on clean energy policy, technologies, and finance. Before joining CP, he was an editor/producer with RenewableEnergyWorld.com. He received his B.A. in journalism from Franklin Pierce University.
3 comments on "As Wind Tax Credit Dominates Presidential Campaign, a Look At What’s at Stake"
August 16, 2012 6:56pm
Wind energy is renewable. Coal / Oil energy is not renewable. When it is gone, it is gone. Drill responsibly, environmentaly, leave no footprints behind. Tax subsidies for all domestic energy should be provided. This is a no brainer.
The goal for American infrastructure should be that it is of Americans , by Americans and for Americans. These jobs are forever.
August 17, 2012 6:26am
Can anyone tell me how long it takes for these 3.5 million dollar turbines including all the site prep and lease of the property costs to produce a return on investment. I understand we need to harness all forms of renewable energy but some of us who drive many miles for our jobs need less expensive gas too. Not to mention the increase of cost of all goods moved across this country that we see increasing daily. The more money we spend on gas the less we have to spend on consumer goods. We have several wind farms in and around where I live but my electricity rates continue to rise, my gas cost continue to rise. The immediate need is to get oil manageable so it is not killing our budget then lets work on renewables
August 15, 2012 9:27am
Tax credits do indeed stimulate development. To a point. At some point, all they do is increase prices as sellers rush to take advantage of "free money". By all means, let these new industries develop and if a government subsidy helps, wonderful. But at some point, once the infrastructure is developed and a steady market for the products exists, the tax credits should be phased out and the market allowed to set the price for wind plants. In this way, prices just might eventually decline to the point where the products become available to lower income people who do not pay enough in taxes to make a tax credit program useful.