Dive Brief:
- Wind energy supporters are closely watching the Congressional debate over extending subsidies, as fears rise that Republican control of both houses means a host of tax credits are at risk.
- While the production tax credit for wind has been extended in the past, Bloomberg reports conservative lawmakers emboldened by the election may target the incentives as a part of their offensive against President Obama's climate policies.
- Many in Washington expressed initial optimism that the tax credits would be extended as part of the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act. But conservative interests led by the Koch-funded Americans for Prosperity have begun to lobby against the measure with large ad buys in several states.
Dive Insight:
Will they or won't they? Debate over the future of wind production credits is the industry's favorite game right now. Conventional wisdom has held that the credit would eventually be extended, as they were the last two years. But now Bloomberg reports there may be dwindling support as Democrats find themselves reeling from losses at the polls.
“Let’s just leave this one out,” Rep. Mike Pompeo, (R-Kansas), told Bloomberg. “It seems hard for me to imagine that Senator Reid would hold up an important package of tax provisions in order to do a small favor for some of his friends in the wind industry.”
Lobbying groups have gotten in on the fight as well. Americans for Prosperity, the conservative advocacy group funded largely by the Koch Brothers, will buy ads in 15 states targeting dozens of lawmakers as it presses to clamp down on tax extension.
If the wind subsidy is to pass, it will likely be due to moderate Republicans siding with Democrats and the wind industry on the issue. House Ways and Means Committee Chair Dave Camp (R-Mich.) said the credit is "open for discussion," and that he hoped to make some of the tax breaks permanant.
