Leader McConnell and Chairman Grassley:

On behalf of millions of taxpayers and consumers across the country, we are writing to express our opposition to extending the production tax credit (PTC) and the investment tax credit (ITC) which are scheduled to expire at the end of this year.

We urge the Senate to reject any legislative proposals that would extend these handouts to mature energy technologies which place an unacceptable burden on taxpayers.

The PTC and ITC were initially intended to support “infant” industries that were too expensive to succeed in their early stages without government support. However, after decades and billions of dollars in subsidies the solar and wind industry are more than capable of supporting themselves without federal “incentives.”

The U.S. House of Representatives passed legislation — the “Moving Forward Act” — that would provide the wind and solar industries an additional Live years to start construction on new facilities in order to qualify for ten years of tax credits once the new facilities start operation. For reference, the PTC for wind has already been extended 12 times since 1999, despite Congress agreeing in 2015 to phase it out. The extension in the House bill means that taxpayers could be on the hook to subsidize new wind facilities through 2037. If the deadlines are extended, the cost of tax credits for new wind and solar facilities has been estimated to be at least $13 billion. This cost to taxpayers would be in addition to the $131 billion already estimated for wind and solar subsidies during 2010-2029.

According to the American Wind Energy Association, “U.S. wind power has more than tripled over the past decade and today is the largest source of renewable energy in the country … growth in the wind industry is expected to remain strong when the PTC is fully phased out. Because the PTC has been successful … wind will continue to expand capacity …” Similarly, the Solar Energy Industries Association states that, “In 2019, solar was the number one source of new electric generating capacity installed in the United States, representing 40% of all new capacity installed. Over the last 10 years, solar deployment has grown an average of 48% every year.”

It’s also worth noting that, in addition to tax subsidies, some 37 states have mandatory targets or voluntary goals for using renewable energy sources to generate electricity. These state programs continue to bolster wind and solar power at the expense of taxpayers and consumers. There’s no need for another layer of poorly targeted programs for “renewables.”

These industries do not need more taxpayer dollars and federal favoritism to keep them aLloat. We, therefore, urge you to oppose the extension of the production and investment tax credits.

Sincerely,

David Williams
President
Taxpayers Protection Alliance

Matthew Kandrach
President
Consumer Action for a Strong Economy

Brent Wm. Gardner
Chief Government Affairs Officer
Americans for Prosperity

Tom Schatz
President
Council for Citizens Against Government Waste

Bethany Marcum
Executive Director
Alaska Policy Forum

Robert Roper
President
Ethan Allen Institute

Phil Kerpen
President
American Commitment

Annette Meeks
Founder and CEO
Freedom Foundation of Minnesota

Steve Pociask
President / CEO
American Consumer Institute

Jessica Anderson
Executive Director
Heritage Action

Grover Norquist
President
Americans for Tax Reform

Brandon Arnold
Executive Vice President
National Taxpayers Union

Garrett Ballengee
Executive Director
Cardinal Institute for WV Policy

Robert Fellner
Vice President & Policy Director
Nevada Policy Research Institute

John Hinderaker
President
Center of the American Experiment

Eli Lehrer
President
R Street Institute

Andrew F. Quinlan
President
Center for Freedom and Prosperity

Paul Gessing
President
Rio Grande Foundation

Jeff Mazzella
President
Center for Individual Freedom

Robert Alt
President & CEO
The Buckeye Institute

Donald Bryson
President/CEO
Civitas Institute

Christian N. Braunlich
President
Thomas Jefferson Institute for Public Policy

Myron Ebell
Director, Center for Energy and Environment Competitive Enterprise Institute

James L. Martin, Founder/Chairman

Saulius “Saul” Anuzis, President 60 Plus Association