Key renewable energy tax incentives in the US that are set to expire this year must be extended, a group of 24 US senators has said.
Writing to the leaders of the senate finance committee, they claim that the policies, including the Production Tax Credit (PTC) and the Investment Tax Credit (ITC), had helped create jobs and cut pollution.
“In recent years, provisions like the production tax credit and the investment tax credit have helped technologies like wind and solar create tens of thousands of American jobs and generate an increasing share of America’s power,” they wrote.
“These tax credits have helped scale up production and drive down the cost of clean energy technologies. They remain critical to addressing the market failures that prevent cost-effective, market-ready technologies from being deployed to their full potential.
The group listed ten policies they would like to see extended in the short- or long-term and recommended some adjustments to their current structure.
“Additionally, changing the applicability of the ITC from projects that are operational by the expiration date to projects that have commenced construction would make the tax credit consistent with the PTC and help drive the deployment of thousands of megawatts of additional new solar capacity. This change would allow the American solar industry, which has grown from 15,000 employees in 2005 to 120,000 today, to continue creating jobs in the United States,” they added,
This week Brightsource dismissed suggested changes to the rejected Palen concentrated solar power plant on the grounds that they could not be implemented in time for the project to qualify for the ITC.
Signatories of the letter included Barbara Boxer (D-Calif.), Tom Udall (D-New Mexico) and Edward Markey (D-Mass.).