Klobuchar wants to extend tax credits for biofuelsU.S. Senator Amy Klobuchar pressed Senate leaders to extend critical tax credits for biofuels and other alternative energy sources.
U.S. Senator Amy Klobuchar pressed Senate leaders to extend critical tax credits for biofuels and other alternative energy sources.
In a letter to Senate Majority Leader Harry Reid, Minority Leader Mitch McConnell, Finance Committee Chairman Max Baucus and Ranking Member Orrin Hatch, Klobuchar said that allowing key tax credits to expire for the nation’s alternative energy industries could jeopardize good jobs and hurt local economies in Minnesota.
“From biofuels to wind power to solar energy, alternative energy industries are creating good jobs and boosting local economies across Minnesota,” Klobuchar said. “Extending these critical tax credits will help strengthen our state’s clean energy businesses so they can continue to grow and thrive.”
In the letter, Klobuchar urged Senate leaders to extend alternative energy tax credits including:
--Biodiesel Production Tax Credit. With the biodiesel tax credit in place for 2011, domestic production has more than doubled, supporting more than 31,000 jobs and generating at least $3 billion in GDP and $628 million in federal, state, and local tax revenues.
--1603 Treasury Grant Program. This program has been used to fund critical renewable energy projects across the country. Over the last two and a half years, the Section 1603 program has leveraged nearly $23 billion in private sector investment for 22,000 projects across a dozen clean energy industries, including solar, wind, biomass, fuel cell, combined heat-and-power, and hydropower projects. To date the program has spurred the construction of sufficient new generation capacity to power more than one million American homes.
--Production Tax Credit (PTC). The production tax credit provides a per-kilowatt per hour tax credit for electricity generation from renewable sources, particularly wind. Last year, new wind power represented over a third of all new U.S. electricity generation capacity and is an industry in which the United States currently has a trade surplus with China, Brazil, and other fast-growing developing economies. The PTC expires in December of 2012 for wind, and December of 2013 for all other sources.
--Advanced Energy Manufacturing Tax Credit (48C). This program leverages private investments in new, expanded or re-equipped advanced energy manufacturing projects. The program was able to leverage $5.4 billion in private investment, boosting growth and creating new U.S. manufacturing jobs by producing components and equipment for the burgeoning global renewable energy industry.