NEW ENERGY FIGHTS BACK

Clean-Energy Incentives at Risk in Tax Deal
Martin Vaughan, December 7, 2010 (Wall Street Journal)

"Billions in federal subsidies for manufacturers of solar panels and wind- and solar-power facilities will end Jan. 1, 2011, unless lawmakers who negotiated a deal to extend tax cuts back down from their positions.

"The clean-energy incentives were created by 2009 economic stimulus legislation.
Republicans are taking a firm stand that they aren't part of a deal reached with the White House, and shouldn't be a part of broader legislation to extend tax cuts for individuals and businesses, according to GOP aides."

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"Democrats have sought to extend the programs, most recently in legislation from Sen. Max Baucus (D., Mont.) that failed in the Senate last week…Republican leaders…[say] the deal they reached with the White House is final, and only some specifics of the provisions that were part of the deal need to be ironed out…[in meetings btween ] Congressional staff of both parties…[and] White House officials…

"Ultimately some decisions about what to include will be subject to negotiations by GOP and Democratic lawmakers. One open question is an extension of Build America Bonds for state and local infrastructure projects. Democratic staff…[are reportedly pressing] for those bonds to be extended as part of the tax package…"

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"On the energy-tax breaks, solar- and wind-power facilities for the past two years have been able to get federal grants equal to 30% of the cost of installing new facilities. Tax credits have long been available for those costs, but the stimulus act removed the need for new solar and wind operators to tap the tax credit market for financing.

"The American Wind Energy Association warned…that a refusal to extend the grant program could jeopardize 15,000 jobs in the sector…A one-year extension of the program sought by Mr. Baucus would have provided $3 billion in federal grants in 2011…A 30% tax credit for builders of plants that manufacture solar panels or other clean-energy components also appears set to be phased out…[C]reated as part of the stimulus law, [it] could have provided $2.5 billion in tax credits under the Baucus proposal."