AWEA Blog - National Chamber Network Says Tax Incentive is Critical to Boosting American Wind Energy Jobs and Innovation

“From Iowa and Kansas to South Dakota, Indiana, Texas and Ohio, wind
energy is helping us attract new clean energy companies and capital,
while making our existing businesses in manufacturing, construction and
other sectors viable into the future. We need Congress to support our
local communities by extending this critical tax incentive.”


Chambers for Innovation and Clean Energy, the only national,
non-partisan clean energy network and information hub for local chambers
of commerce, today issued a letter calling on Congress to extend the
nation’s key tax incentive for wind energy, the Production Tax Credit
(PTC). With 240 local chambers from 47 states participating in its
network, Chambers for Innovation and Clean Energy emphasized in its
letter that allowing the PTC to expire at the end of 2012 would hurt
local economies, send jobs and capital elsewhere, and risk ceding
America’s clean energy leadership to our global competitors.

The Production Tax Credit for wind enjoys broad and diverse business
support, ranging from the U.S Chamber of Commerce to the National
Association of Manufacturers, and major corporations like
Hewlett-Packard, Microsoft, Johnson & Johnson, Sprint, Nike, and
Starbucks. It now includes support from local chambers of commerce from
around the country.

This local chamber support comes as cities and regions nationwide
continue to diversify their local economies due to wind energy. Nearly
500 facilities across 44 states now manufacture for the wind energy
industry, creating new opportunities for American businesses up and down
the supply chain. From fasteners and castings to power convertors,
sensors, and large turbine blades, American businesses small and large
are powering this homegrown energy industry. In fact, with the support
of the Production Tax Credit for wind, 60 percent of a wind turbine’s
value is now produced within the United States, compared to 25 percent
prior to 2005.

“Local chambers know that for their local wind energy businesses and
suppliers to grow, investors need certainty in the wind market,” said
Diane Doucette, Executive Director of Chambers for Innovation and Clean
Energy. “The PTC is the key mechanism creating that certainty. We’re
already seeing layoffs throughout the industry as Congress stalls on the
PTC. Allowing the PTC to expire would slow wind projects, decrease
orders for our manufacturers, and result in even more jobs lost around
the country.”

As the chambers’ letter states, the PTC has enabled the wind industry to
slash wind energy costs by 90 percent since 1980, making wind energy a
viable and cost-effective source of electricity in communities across
the nation. Electricity prices are set by the operating costs of power
plants, including the cost of fuel inputs. Once turbines are installed
in a particular location, wind energy places downward pressure on local
electricity prices.

“Wind will always be a free resource, in contrast to the price
volatility we often see with more traditional fuels,” said Angelique
Espinoza, Public Affairs Manager for the Boulder (CO) Chamber of
Commerce. “There are a lot of unknowns in our community’s energy future,
but knowing that wind will remain a strong option in the mix means
reduced risks for the business and commercial energy users who use and
pay for about two thirds of the power consumed in Boulder. Businesses
know that wind energy is important for consistently lower and more
predictable electricity rates.”

With member chambers located in the nation’s largest wind-producing
states, including Texas, Iowa, South Dakota, and Minnesota, Chambers for
Innovation and Clean Energy concluded its letter with:

“Ending the Production Tax Credit for wind… will put us behind in this
critical leg of the global race for clean energy innovation… Extending
the Production Tax Credit for wind is economically sound policy: it
creates jobs, promotes clean energy, keeps electricity prices low for
consumers and promotes the vitality of our communities.”

The letter is available here: http://is.gd/Chambers4PTC

Learn more about the Production Tax Credit:
http://www.awea.org/issues/federal_policy/upload/PTC-Fact-Sheet.pdf

Chambers for Innovation and Clean Energy (CICE) is a national Clean
Energy network and Information Hub for local chambers of commerce.
Created and led by local chambers, CICE helps fellow chambers and their
member companies successfully navigate and prosper in the clean energy
space. CICE provides access to clean energy information, best practices,
energy experts, incentives, and business opportunities. CICE’s Advisory
Council includes Chamber CEOs from every region of the country.