US businesses urge Congress to extend tax credits for renewables

Posted at September 19, 2012 » By : » Categories : News » Comments Off on US businesses urge Congress to extend tax credits for renewables

A group of 19 companies, including major brands and Fortune 500 firms, has written to US Congress leaders urging them to extend tax credits for renewable energy.

Currently, renewables generators benefit from Production Tax Credits (PTCs) of $0.022 per kWh of energy produced. But the legislation is set to expire at the end of the year.

The PTC, which was signed into law by George H. W. Bush, has boosted US renewable generation, with wind power now accounting for 35% of new electricity generation capacity over the past five year. But the industry is warning that the sector will be put in jeopardy if the legislation is allowed to lapse.

According to the letter from signatories including Ben Jerry’s, Johnson Johnson, Jones Lang LaSalle, Levi Strauss Co., The North Face, Sprint, Starbucks, Timberland and Yahoo!, the PTC is the reason why many companies buy renewable power.

“For consumers of wind electricity, the economic benefits of the PTC are tremendous. The PTC has enabled the industry to slash wind energy costs 90% since 1980,” says the letter. “Extending the PTC lowers prices for all consumers, keeps America competitive in a global marketplace and creates homegrown American jobs.”

Many of the signatories are members of Business for Innovative Climate and Energy Policy (BICEP), a project coordinated by Ceres, a coalition of investors, companies and public interest groups advocating sustainable business practices.

“The PTC helps every business that purchases renewable power: it’s just that simple,” says Mindy Lubber, president of Ceres. “For Congress, the message from business leaders is clear: extend the PTC and help us build the economy.”

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Related stories:
California wind farm starts operations but US wind industry in peril (13-Sept)
US presidential candidates look set to fall out over renewables (3-Aug)
US Senate rejects motion to extend renewables tax credits (15-Mar)

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