A press release before the holiday break from American Wind Energy Association condemns passage of the GOP-controlled House version of the so-called “Tax Cuts and Jobs Act”–which contains a provision that won’t be good for jobs in one important industry to Colorado:
The U.S. House of Representatives missed an opportunity to stand up for 60,000 American workers and preserve $50 billion in private infrastructure investment. The tax reform bill passed by the House retroactively changes how businesses can qualify for wind energy’s primary investment tools, the wind energy Production Tax Credit (PTC) and Investment Tax Credit (ITC), which are already on a path to phase out by 2019.
“The House tax bill, far from being pro-business, would kill over half of new wind farms planned in the U.S. and undermine one of the country’s fastest growing jobs,” said Tom Kiernan, CEO of the American Wind Energy Association (AWEA). “The wind industry tax reformed ourselves with bipartisan agreement in 2015. The Senate tax proposal gets it right by respecting those terms. Congress must act immediately in conference to drop the House provisions on the PTC and ITC, to restore the confidence of businesses ready to pour billions of dollars into job-creating American infrastructure.”
The House bill undermines wind development by implementing a retroactive change to qualification rules for wind energy tax credits. Because businesses can’t go back in time to requalify for the credits after ordering wind turbines and inking construction contracts, tens of thousands of jobs and billions of dollars of investment could be lost, and new business has stalled. The House bill would also terminate an inflation adjustment, significantly cutting the value of the PTC.
In an op-ed in the Pueblo Chieftain, John Purcell of Houston-based Leeco Steel calls out Republicans who voted to kill the wind energy production tax credit:
By breaking its promise to the wind industry, Congress wouldn’t just hurt the investors, manufacturers and developers whose deals are undermined. The harmful effects of the House bill would have a ripple effect across the wind energy supply chain, ultimately harming thousands of American workers and families.
No American job is safe if Congress can change the terms of business contracts years after agreements are signed and billions of dollars are spent. That’s not pro-growth tax reform, that’s bad business.
The people who benefit from wind energy in this country are not strangers. They are the backbone of our communities, our returning veterans, our teachers, nurses, neighbors and family members.
Voting to hurt the wind power industry is a particularly toxic vote for Colorado Republicans. Rep. Scott Tipton’s district includes the Vestas wind tower manufacturing plant, and Rep. Ken Buck’s hometown of Windsor is home to a Vestas blade factory. Numerous smaller companies in Colorado support the wind power industry, from manufacturing to installation to operations.
And yet all four Colorado Republicans in the House voted to kill the wind power production tax credit. Don’t you think somebody should ask them why they voted directly, transactionally to kill Colorado jobs for the sake of tax cuts for the richest Americans?
In the Senate, the current tax “reform” legislation under debate does not include cuts to the wind power production tax credit. Although there are Republicans in that chamber who have paid lip service to supporting wind power including Sen. Cory Gardner of Colorado, it’s anybody’s guess whether Senators beholden to the fossil fuel industry will try to reinsert this provision–or if it does get out of the Senate with the wind power production credit intact, when the next attempt to slow down renewable energy will be made.
But we do know four Colorado Republicans who voted against this industry with a crucial role in Colorado’s economy one week ago. And they can’t take it back.