Wednesday, July 28

Wind tax credit phase-out proposal not serious, says Congressman

In response to a proposal by the wind power industry to phase out, rather than end, the wind Production Tax Credit, U.S. Representative Mike Pompeo issued this statement:

WASHINGTON, D.C. — In response to the American Wind Energy Association’s (AWEA) proposal to “phase out” the wind production tax credit (PTC), Congressman Mike Pompeo issued the following statement:

“I am disappointed that the wind industry’s lobbying arm would release such an unserious proposal to phase out its subsidy. Without a real phase-out on the table, the only remaining solution is for the wind PTC to expire as scheduled at the end of the year,” Congressman Pompeo said.

“The wind industry, comprised of numerous multi-billion dollar companies, can and must be able to stand on its own two feet. While I am prepared to listen to serious solutions — including phase-outs — that quickly move the industry off the taxpayer dole, AWEA’s latest plan does not even meet the ‘laugh test.’ Its proposal, which actually expands the projects eligible to receive the wind PTC, is unrealistic and insulting to lawmakers who are trying to find a commonsense, workable solution. We will get nowhere on this issue with proposals like this,” Pompeo continued.

Pompeo has been at the forefront of efforts to end subsidies that distort energy markets. He and Senator Lamar Alexander recently contributed an op-ed to the Wall Street Journal, which may be read at Puff, the Magic Drag on the Economy: Time to let the pernicious production tax credit for wind power blow away. Pompeo also develops the argument in Governor Romney is right: End the wind production tax credit and Mike Pompeo: We need capitalism, not cronyism. The special interests that benefit from cronyism have struck back, but unsuccessfully: Kerr’s attacks on Pompeo’s energy policies fall short.