Time to Expand Renewable Tax Credit
Posted by johnsoncontrols on September 15, 2008 07:57 PM

By Mark Wagner, VP Government Affairs, Johnson Controls, Inc.

In between all the promotions for “Grey’s Anatomy,” “Heroes” and “CSI: Miami” you can’t miss the TV ads calling for more wind and solar energy. The push is on for clean renewable energy projects to help reduce greenhouse gas emissions, move towards energy independence and create green jobs for people who implement the technologies.

The reason there’s such an emphasis these days is that Congress has until the end of this year to renew expiring tax credits for alternative energy projects. Now that they’re back in session, it’s time for our elected officials to put aside politics and focus on what’s right for the country.

Ironically, there’s little argument about the advances and benefits of renewable energy. The U.S. wind industry has installed more than 20,000-megawatts worth of power since just 2006, achieving in two years what had previously taken more than two decades, according to the American Wind Energy Association. AWEA calculates that wind now provides 20,152 megawatts of electricity generating capacity in the U.S., producing enough electricity to serve 5.3 million American homes or power a fleet of more than 1 million plug-in hybrid vehicles.

Solar figures are equally astounding. Installed grid-tied solar photovoltaic grew more than 48 percent in 2007 compared to 2006. Not surprisingly, led by expanded capacity of thin-film photo voltaic, silicon manufacturing and other equipment production, manufacturing of solar energy manufacturing grew 74 percent in 2007, according to the Solar Energy Industries Association.

There’s a lot at stake if Congress doesn’t move forward. A Navigant Consulting study indicates that 116,000 jobs and more than $19 billion in investment in the wind and solar industries are at risk if the renewable energy tax credits are not extended. The states that could lose the most jobs include Texas, Colorado, Illinois, Oregon, Minnesota, Washington, Iowa, North Dakota, Oklahoma, Pennsylvania and California.

We’re working on dozens of innovative renewable energy projects in many of those states. But as much as the technology keeps improving, without Congressional action, more projects like this just aren’t financially viable.

We hope Congress sees the economic, environmental and social value of renewable energy.  Otherwise, we’ll all be watching TV using electricity from an increasingly expensive and unreliable source.




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