Governors are pressing President Obama to extend the Advanced Energy Manufacturing Tax Credit, the fiscal incentive funded by the stimulus to boost cleantech jobs in the U.S., and which is set to expire at the end of the year.
In a letter, 19 state governors — Republicans and Democrats — propose that the tax credits be extended as part of a “jobs bill or another appropriate vehicle,”– see full letter below the fold.
The governors write:
For too long, America has lagged behind our global competitors for the development, production, and deployment of clean energy innovations. Today, only one of the ten leading wind turbine manufacturers and one of the ten leading solar photovoltaic companies in the world are American. In Europe, bold renewable energy requirements and generation incentives, combined with significant subsidies for manufacturing, have given foreign firms a significant head start…. Expanding the 48C Advanced Manufacturing Tax Credit will support new waves of domestic production and innovative new jobs and careers.
Of all the stimulus-funded renewable energy incentives, the cleantech manufacturing tax credit is probably the least talked about but one that’s had the most immediate impact. In their letter to President Obama, governors point out that the $2.3 billion granted so far have leveraged more than $5.4 billion in private investments.
Congress is considering extending legislation that would extend other cleantech funding programs, including the Department of Energy direct cash grant program. The House introduced legislation that would change the cash grants into refundable tax credits. Renewable energy companies would apply for these credits as part of their standard tax filing. In the Senate, Senators Dianne Feinstein, (D-Calif.), and Jeff Merkley, (D-Ore.) are sponsoring a bill that would extend direct cash grants until 2012.
An ongoing high unemployment rate, a stated goal by the Obama administration to lead the global cleantech industry and in particular beat China, indicate that an expansion of the cleantech tax credit a near certainty.