Young fights for Iowa Wind Energy
Washington, D.C. - Iowa Congressman David Young is continuing his fight to protect the wind energy production tax credit. In addition to conversations he's had with his colleagues, today he led a letter advocating the agreement made in 2015 to phase-out the wind energy production tax credit be preserved in the final tax bill. The letter was sent to the Conference Committee reconciling the House and Senate versions of the tax bill.
Last month, Congressman Young started leading the fight in Congress to preserve the wind energy production tax credit. His actions today are a further demonstration of his commitment to wind energy in Iowa.
"The wind energy production tax credit was a settled issue. Congress and wind energy producers agreed to slowly reduce the policy until it ends in 2019. Going back on the deal would be devastating for Iowa's wind energy producers. If the policy is ended prematurely, it will undermine $30 billion in existing project deals. I will continue to fight for Iowans and renewables which have helped Iowa's economy grow," said Congressman Young.
The letter also asks the Conference Committee to address other tax provisions that could harm wind energy producers. Full text of the letter is below. A digital copy of the letter is available HERE.
Dear Chairman Brady and Chairman Hatch:
We write to share our concern for three provisions included in tax legislation which, if enacted into law, would have devastating impacts to America’s wind energy sector.
Foremost, we continue to strongly support maintaining the terms of the wind energy production tax credit (PTC) phase out as it is in current law. Members of both bodies of Congress have made clear their concerns about the changes in H.R. 1 to the terms of the phase out as established under the PATH Act of 2015. The change included in H.R. 1 would create uncertainty and would undermine at least $30 billion in existing project deals. We appreciate the Senate bill did not include this change and urge a final bill retain the phase out included in the PATH Act.
Second, we urge the conferees to amend the Senate’s Base Erosion Anti-Abuse Tax (BEAT), which as currently drafted, would create a significant disincentive to the tax equity financing structure the energy industry relies upon to finance their projects. If this issue is not addressed, tens of thousands of jobs and billions of dollars in investments will be jeopardized.
Finally, like many other industries, the inclusion of the Alternative Minimum Tax (AMT) at a 20% rate in the Senate bill would severely reduce the capacity for companies to utilize the PTC. Between the Senate’s current BEAT and AMT provisions, $95 billion of private investment is at risk across the country, in addition to 90,000 American jobs.
As we seek to create a fairer, simpler tax code, we must honor our commitments and the PTC phase out, which will be complete by 2019, and allow the wind industry to utilize those credits so they can continue lowering costs, creating jobs, and growing the economy.
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