Iowa's Braley seeks 7 more years of wind tax credit
U.S. Rep. Bruce Braley introduced a bill Thursday that would extend the wind energy production tax credit, a measure the Waterloo Democrat described as a boon to Iowa’s renewable energy industry.
The credit of 2.1 cents per kilowatt hour of electricity produced would be extended for seven years under Braley’s bill.
The tax credit started in 1992, pushed by Republican Sen. Charles Grassley. Iowa ranks fourth in the nation in its production of wind-generated electricity. The credit has also spawned an increase in production of wind turbines in Iowa.
The credit, which had been scheduled to expire at the end of this year, was extended last year through the end of 2010.
Braley introduced the bill in the House Energy and Commerce Committee, a committee with broad authority. However, the House Ways and Means Committee has authority over tax-writing policy.
Braley’s staff said the congressman is well-positioned as a member of the energy and commerce committee to influence energy legislation.
Braley said the measure also fits in with President-elect Barack Obama’s emphasis on developing the nation’s renewable energy industry.
“I’m convinced that the net return from this investment, in terms of added jobs, which will create taxable income from people who are working in this field, is going to be a long-term net gain to this country,” he said.
Braley said the tax credit would cost about $1 billion annually. Senate Finance Committee staff said the existing credit already costs more than $2.5 billion and would only increase in cost as wind production grew.
Braley said he hoped it could be incorporated into the broad economic stimulus package Congress plans to consider in the weeks after Obama is inaugurated. A two-year extension is already part of the draft stimulus bill in the Senate.
By Thomas Beaumont
9 January 2009
Tags: Wind power, Wind energy
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