LIBRE Signs on to "Coalition to Congress: End the Wind Production Tax Credit" letter to Members
"Congress must get serious about comprehensive tax reform that lowers rates for everyone"
(Washington, D.C.) – The LIBRE Initiative today announced that it has joined with twenty-three organizations to encourage Congress to allow the wind production tax credit (PTC) to expire as currently scheduled. If Congress does not act to extend the credit, no new wind facilities will be allowed to claim it as of January 1, 2014. In general, firms approved prior to December 31st will benefit for a total of 10 years. The signers argue that the credit is bad policy for a variety of reasons:
"On behalf of the millions of members that our organizations represent, we encourage you to oppose extending the main source of federal support for wind energy, the production tax credit (PTC). The problems with bestowing government favors on wind energy are myriad – it doesn't produce cheaper energy, it threatens electrical grid reliability, it's inefficient, it's unprincipled tax policy, to name a few – and it's time to end this misguided handout."
Jorge A. Lima, Director of Policy, The LIBRE Initiative released the following statement:
"We have seen the trouble that comes from government officials trying to pick winners and losers in the market. All too often, scarce federal dollars are invested in technologies that are not ready or that never pan out. These subsidies may essentially result in padding the pocketbooks of investors, instead of achieving a legitimate public policy goal. The best use of taxpayer dollars is usually for Washington to stay out of the way and allow American consumers and entrepreneurs to choose what works best for them.
The production tax credit for wind energy has been in place for 21 years, and even if it is allowed to expire, eligible wind farms will still be permitted to claim the credit for 10 more years. Will wind energy ever be called upon to operate on its own, or will these companies be given extra support from the federal government forever?"
Read complete letter here.