End wind subsidy

88 Organizations Call for End to Wind Energy Subsidy

Americans for Prosperity has released a coalition letter supported by 88 federal, state, and local organizations opposed to the extension of the Production Tax Credit (PTC) for wind energy.

The PTC was created in 1992 to help the wind energy industry get off the ground, and it is scheduled to expire at the end of this year.

In its letter the coalition calls on Congress "to end special tax provisions that distort the energy market and increase energy prices."

The organizations in the coalition in addition to Americans for Prosperity (AFP) — a nationwide group fighting for free markets and economic opportunity — include FreedomWorks, National Taxpayers Union, Heritage Action for America, and American Energy Alliance.

The letter released on Thursday states: "The undersigned organizations and the millions of Americans we represent stand opposed to extending the wind PTC. This special provision continues the deplorable practice of using the tax code to favor certain groups over others.

"Whenever the government protects a particular industry, as it has with wind energy production, the industry tends to remain dependent. We're still providing a $5 billion special tax break each year for an industry that supplies just over 2 percent of our power.

"If a new technology truly has worthwhile benefits for American consumers such as lower cost, higher efficiency, or environmental benefits, then that technology will demonstrate its value by competing in the open market for consumers' dollars — not by living off special provisions in the tax code."

In August, the Senate Finance Committee passed a measure that would renew and expand several targeted tax credits for renewable energy, including wind power, for 2013.

"It's long past time to let the wind Production Tax Credit expire," said AFP director of policy James Valvo.

"It's been in place for 20 years and the sector is still entirely dependent on the credit and renewable electricity mandates to exist.

"Congress would be wise to finally allow the tax credit to expire. Millions of citizens and dozens of organizations across the country are calling on them to do so."

Back in August, Kansas GOP Rep. Mike Pompeo, who serves on the House Energy and Commerce Committee, expressed opposition to an extension of the subsidy.

"An extension continues this unsettling policy trend in which citizens are asked to bear all the risks and gain none of the rewards," he said.

During the 2008 presidential campaign, Barack Obama vowed to invest $15 billion a year over a 10-year period in renewable energy, which includes wind.

But Pompeo said: "President Obama talks about the need to 'invest' in alternative energy sources. But the reality is that he is not investing his money. He's spending yours."

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Editor's Note:

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