Solar and Wind Industries Worried About Fate of 30 Percent Federal Credit for Renewables

As Capitol Hill legislators thrash out a compromise on the extension of the Bush-era tax credits, lobbyists for the wind and solar industries are working feverishly to ensure the 1603 investment tax credit that provides a 30 percent write-off for investment in wind and solar installations make it into the final bill. As of press-time, these tax credits are set to expire at year-end and are not in the legislation currently being discussed.

According to an article in The Hill, Sen. Dianne Feinstein (D-Calif.) and more than 12 other Democrats are pushing for a two-year extension of these tax credits. The loss of the 1603 investment tax credit would be a serious blow to the wind and solar industries because it makes the ROI on solar or wind installations much more palatable.

The American Wind Energy Association (AWEA), Washington, D.C., said in a press statement that letting the tax credit expire would cost the wind industry thousands of jobs. Denise Bode, AWEA's CEO, said, “We have people being laid off right now, and we expect to see more without fast action on the tax extenders now being negotiated. The 1603 tax credit extension would help bring them back as soon as possible.”