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Renewable Energy Tax Package Will Save Money, Boost Economy, Create Jobs, Says Coalition
A coalition of more than 100 business, trade and advocacy groups have called on the U.S. Senate to pass legislation as soon as possible that extends renewable energy and efficiency tax credits that have already expired or will expire at the end of this year.
The tax incentives would strengthen the renewable energy industry and expand the market for energy-efficient products, which ultimately would reduce residential and commercial energy costs, generate new domestic jobs, and boost a flagging economy, according to the coalition.
“Renewable energy sources like solar and wind are a proven economic engine for our country. They’ve created tens of thousands of green collar jobs and billions of dollars in investment,” says Rhone Resch, president of the Solar Energy Industries Association. “Congress and the administration should seize this opportunity to support this high-growth sector.”
The business-consumer coalition includes 47 manufacturers, including Dow Chemical, DuPont, Owens Corning and Whirlpool; eight retailers, including Best Buy, Home Depot, Lowe’s and Wal-Mart; 23 trade associations, including the American Institute of Architects, Association of Home Appliance Manufacturers, the National Association of Homebuilders and the National Small Business Association; 25 advocacy groups, including Environment America, Natural Resources Defense Council, Sierra Club and Union of Concerned Scientists; and 10 utilities, including Constellation Energy, Exelon and Florida Power & Light.
Historically, Congress has extended clean energy tax incentives in only two-year increments, creating a boom-bust cycle that impedes industry development. The ideal Senate tax incentive package, the coalition said, would extend incentives for wind, solar and biomass for a number of years to provide the stability financial investors need to back new projects.
In addition to extending tax credits for renewable energy sources, the coalition urges the Senate to extend tax incentives for constructing energy-efficient buildings, investing in solar electric systems, installing efficient home heating and cooling equipment, manufacturing efficient home appliances, and retrofitting existing homes to save energy.
“Our nation’s buildings account for 70 percent of our nation’s electricity use, and that’s why these incentives are vitally important to deploy energy-efficient designs, technologies and equipment,” says RK Stewart, former president of the American Institute of Architects. “The end result is that we would get the most energy-conserving buildings possible, which means reduced utility bills for businesses and homeowners, and lower overall energy demand across the nation.”
Jeffrey D. DeBoer, president and CEO of the Real Estate Roundtable, a policy organization that represents the commercial real estate industry, agreed. “By extending energy tax incentives, Congress will be encouraging the rapid rollout of a new generation of high performance, energy-efficient green buildings,” DeBoer, says. “With energy prices soaring, passing these incentives is just common sense and key for any credible energy policy.”
Steven Nadel, executive director of the American Council for an Energy-Efficient Economy (ACEEE), also pointed out that an ACEEE analysis found that extending the energy efficiency provisions would add roughly 15,000 jobs to the U.S. economy, considering both added jobs in the energy efficiency and service industries and lost jobs in the traditional energy industries.
Besides the economic rationale for supporting the incentives is the pressing need to address global warming, said Marchant Wentworth, a clean energy advocate at the Union of Concerned Scientists. "We don’t have to choose between the economy and the environment,” says Wentworth. “Extending these tax credits will help stimulate the economy and protect public health and the planet at the same time.”