Mitt Romney and oil, gas and nuclear interests want to end a tax credit for wind-energy producers. Never mind that old-energy firms are heavily subsidized too.
9:57 PM PDT, October 23, 2012
To hear business leaders and political candidates talk, proper industrial policy comprises only three elements: a fair tax system, a level playing field and "certainty."
So why is it that all three are about to be thrown out the window as a sop to oil, gas and nuclear interests determined to fillet the wind-power industry?
The maneuvering in Washington is over a federal subsidy known as the production tax credit, which is worth 2.2 cents per kilowatt-hour to wind-energy producers. That's about a third of the cost of wind generation on average; under current law it can be converted into a 30% investment tax credit or, for projects that were under construction by the end of last year, into a 30% cash grant. Any way you slice it, the credit is an essential subsidy for getting the wind industry, shall we say, aloft.
But the mandate is hanging by a thread. After two decades of bipartisan support, suddenly it's a political football. Industry sources say that right up until midsummer its renewal again looked to be a slam dunk. Then it slammed into the wall.
To read the entire article go to: http://www.latimes.com/business/la-fi-hiltzik-20121024,0,704589.columnShare This Post