Why Congress Needs to Extend Renewable Energy Credits

Wind energy creates thousands of jobs in Iowa. But congressional inaction over a key tax credit is hurting the industry.

The Center for American Progress came to Iowa to learn how a lack of consistent federal policy affects growth.

Dr. Harold Prior, executive director, Iowa Wind Energy Association: "Iowa has become the poster child for the nation in terms of success stories in developing and expanding the wind energy industry. Our estimates are there are 3,000 full-time jobs in just the operation and maintenance and manufacturing sectors of this industry alone.

"The critically important portions of support of the wind energy industry, in terms of policy, stem from the lack of a national energy policy direction in the United States."

Brian Crowe, project manager, Iowa Economic Development Authority: "Certainly the production tax credit is key for this industry. I think having a long-term extension makes a lot of sense."

Harold Prior: "What you find is that every time we get within 12 months of the expiration of a particular production tax credit, and this happened two to three times, previously, that what the developers of wind farms, the manufacturers of components, all basically stop the process of developing wind farms because they are unsure of the last piece of the economics."

Brian Crowe: "Transmission is a long-term process. It can take 5, 7, 10 years. So having a production tax credit that is in place for 10 years is really a way to help the industry get itself off the ground. To have the infrastructure to really be able to make investments and to really see growth."

Harold Prior: "The whole issue here is about fairness and equity. The older carbon-based forms of generation have enjoyed benefits and tax subsidies within the tax code for 90 years while wind and solar and a lot of other renewables depend on highly visible short-term tax subsidies that face expiration and possible lack of renewal from time to time. And it really does not create a very predictable situation for the industry's growth and deployment."