From: The Honorable Brian Higgins
Sent By: email@example.com
Endorsed by Solar Energy Industries Association, Sierra Club
DEADLINE EXTENDED: CLOSING DECEMBER 3RD
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The upcoming expiration of two major renewable energy tax credits, the Solar Investment Tax Credit (ITC) and the Production Tax Credit (PTC), is already creating major market uncertainty and reducing the deployment of renewable energy. Please join me in asking incoming Ways and Means Chairman Kevin Brady to prioritize long term extensions for these critical tax credits.
Absent a change in law, the ITC, which provides a 30 percent tax credit for residential and commercial solar systems, is slated to expire at the end of 2016, reducing the tax incentive to 10%. Since the implementation of the ITC, annual solar installations have grown by over 1,600%, with the industry now employing in excess of 174,000 Americans.
Similarly, the Production Tax Credit, which expired at the end of 2014, provides a per kilowatt hour tax credit for the generation and sale of qualified energy resources such as wind, thermal, and bioenergy, has had similarly profound effects on the growth of wind power, which provided 4.4% of our electricity generation in 2014. The industry now employs 73,000 Americans and attracts nearly $15 billion in average annual investment.
Renewable energy businesses, developers and investors value the certainty necessary to make the long term investments that will promote job growth and reduce energy prices for consumers. Please join me in urging Ways and Means Committee Chairman Brady to extend these vital tax credits so we can continue to fuel the rapid growth of renewable energy.
If you have any questions or would like to sign on, please contact David Grossman atDavid.L.Grossman@mail.house.gov or 53306.
Member of Congress
Dear Chairman Brady,
We write to congratulate you on your recent selection as Ways and Means Committee Chairman and respectfully ask that in your capacity as Chairman, you work to support several key renewable energy policy priorities that we believe represent an important component of the pro-growth agenda you have committed to pursuing.
Specifically, we ask that the Investment Tax Credit (ITC), and Production Tax Credit (PTC) each receive long-term extensions. In addition, we believe that the requirement that ITC eligible solar projects be placed in service before the expiration of the credit should be modified so that such projects can instead receive credit once the construction has begun, also known as ‘commence construction.’
Since the implementation of the ITC, a 30 percent tax credit on residential (Section 25D) and commercial (Section 48) solar systems, annual solar installations have grown by over 1,600%, with the industry now employing in excess of 174,000 Americans. Equally important, the ITC has spurred competition and innovation, resulting in a 73% drop in the installed cost of solar power since 2006. By including ‘commence construction’, the tax credit will retain its effectiveness.
The Production Tax Credit, which provides a per kilowatt hour tax credit for the generation and sale of qualified energy resources such as wind, thermal, and bioenergy, has had similarly profound effects on the growth of wind power, which provided 4.4% of our electricity generation in 2014. The industry now employs 73,000 Americans and attracts nearly $15 billion in average annual investment.
Predictable and consistent federal energy tax policy will help these young industries to continue thriving. Renewable energy businesses, developers and investors value the certainty necessary to make long term investments that will promote job growth and reduce energy prices for consumers. With the ITC provisions expiring at the end of 2016, and PTC incentives having ended for those projects not under construction by the beginning of 2015, the effects of the current uncertainty are already being felt.
We urge you to demonstrate your commitment to American energy independence by supporting these important pro-growth priorities. We are confident that through your leadership, we can work together to achieve critical improvements in tax policy that spur economic growth. Thank you for your time and attention to this matter.