TPA Joins Coalition to End the Wind Production Tax Credit

Michi Iljazi

September 24, 2013

The Taxpayers Protection Alliance has been a tireless advocate of smart strategies when it comes to how our elected officials and federal agencies approach energy issues, and we are always looking for ways to dismantle or at least improve bad policy in this sector. Recently, one of the growing problematic policies where government has been playing favorites is the wind energy Production Tax Credit (PTC), giving tax breaks to those producing wind-powered energy. TPA joined with other free-market and taxpayer allied groups including American Commitment, American Conservative Union, American Energy Alliance, Capital Research Center, Coalition Opposed to Additional Spending and Taxes, Competitive Enterprise Institute, Council for Citizens Against Government Waste, Freedom Action, FreedomWorks, Frontiers of Freedom, Heritage Action For America, Independent Women’s Forum, Less Government, Let Freedom Ring, National Center for Public Policy Research, National Taxpayers Union, R Street Institute, 60 Plus Association, Taxpayers for Common Sense, Taxpayers Protection Alliance, The Club for Growth, The LIBRE Initiative, and The Weyrich Lunch in an effort led by Americans for Prosperity by signing a coalition letter sent to Congress opposing the extension of federal funded wind energy PTCs. The letter outlines the facts behind the PTCs and exposes the reality that they don’t produce cheaper energy, they threaten electrical grid reliability, they’re inefficient, and it is unprincipled tax policy. TPA will continue to work with groups on all sides who are interested in smart tax policy as opposed to favoritism and cronyism to line the pockets of selected industries in the energy sector.

Read the full letter below:

Coalition to Congress: End the Wind Production Tax Credit

September 24, 2013

Dear Senators and Representatives:

On behalf of the millions of members that our organizations represent, we encourage you to oppose extending the main source of federal support for wind energy, the production tax credit (PTC). The problems with bestowing government favors on wind energy are myriad—it doesn’t produce cheaper energy, it threatens electrical grid reliability, it’s inefficient, it’s unprincipled tax policy, to name a few—and it’s time to end this misguided handout.

Proposals to phase out the credit over time are a red herring. A phaseout is still an extension, and it does not address any of the problems that arise from government backing for wind energy. Besides, the PTC in its current form already has a phaseout built in: Wind farm projects may claim the tax credit for 10 years following receiving an investment letter.

In addition, we discourage you from including a PTC extension in a large tax extenders package at the end of the year. This is precisely what happened this past December; a 1-year PTC extension and expansion found its way into the Fiscal Cliff deal at the last minute. This provision expanded wind farm eligibility from those that were already in operation to those that were simply in the planning stages. If Congress is serious about comprehensive tax reform that lowers rates for everyone, then special provisions like the PTC that clutter the tax code should be first on the chopping block.

The PTC is scheduled expire on December 31, 2013. Congress should ensure that it does so as to clear the way for a simpler, less burdensome tax system across the board.

Sincerely,

James Valvo, Director of Policy, Americans for Prosperity

Phil Kerpen, President, American Commitment

Al Cardenas, Chairman, American Conservative Union

Thomas J. Pyle, President, American Energy Alliance

Terry Scanlon, President, Capital Research Center

Tom Brinkman Jr., Chairman, Coalition Opposed to Additional Spending and Taxes

Marlo Lewis, Senior Fellow, Competitive Enterprise Institute

Thomas A. Schatz, President, Council for Citizens Against Government Waste

Myron Ebell, President, Freedom Action

Wayne T. Brough, Ph.D., Chief Economist and VP for Research, FreedomWorks

George Landrith, President, Frontiers of Freedom

Michael A. Needham, Chief Executive Officer, Heritage Action For America

Sabrina Schaeffer, Executive Director, Independent Women’s Forum

Seton Motley, President, Less Government

Colin A. Hanna, President, Let Freedom Ring

Amy Ridenour, Chairman, National Center for Public Policy Research

Pete Sepp, Executive Vice President, National Taxpayers Union

Andrew Moylan, Outreach Director and Senior Fellow, R Street Institute

James L. Martin, Chairman, 60 Plus Association

Joshua Sewell, Senior Policy Analyst, Taxpayers for Common Sense

David Williams, President, Taxpayers Protection Alliance

Chris Chocola, President, The Club for Growth

Daniel Garza, Executive Director, The LIBRE Initiative

Morton Blackwell, Chairman, The Weyrich Lunch

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