November 16 (Renewables Now) - More than 200 companies in the US wind power supply chain on Wednesday sent a letter to the US House of Representatives, calling on it to keep the existing terms of the phase out of the industry's tax credits through 2019.
The wind firms accuse the House of rewriting the rules in the middle of the game by redefining how a wind project qualifies for the production Tax Credit (PTC) or the Investment Tax Credit (ITC), and applying the changes retroactively.
The House tax bill unveiled at the start of the month preserves the phase-down structure but cuts the value of the PTC by removing the inflation adjustment. It also changes the terms for qualification with respect to start of construction. In contrast, the Senate tax overhaul plan does not include changes to the industry's subsidies.
According to the American Wind Energy Association (AWEA), the House version of tax reform would threaten 60,000 US jobs and USD 50 billion (EUR 43bn) in private investment, mainly in rural areas.
"We support the goal of making America a better place to do business, and this retroactive rule change runs counter to that," said AWEA chief executive Tom Kiernan. "Every day that goes by until this flawed House language is fixed reduces business for American workers and factories," Kiernan added.
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