Over 100,000 jobs and nearly $20bn investment could be at risk if renewable energy tax credits are not renewed by Congress, according to an economic study released this week by the American Wind Energy Association (AWEA) and Solar Energy Industries Association (SEIA).
On Wednesday evening, the US Senate fell one vote short of the 60 needed to advance a wide ranging economic stimulus package that included plans to extend the current regime of renewable tax incentives by another 12 months. Currently the tax breaks, which would have granted $3bn in renewables tax credits over a decade, are scheduled to expire at the end of this year.
Green businesses had previously been disappointed when a larger set of renewable industry incentives, promising $21.5bn in renewables tax credits over 10 years, were pulled from a proposed economic stimulus package in December.
76,000 jobs in the wind industry and approximately 40,000 jobs in the solar industry could now be at risk if the current incentives are axed, according to the AWEA and SEIA report.
Gregory Wetstone, senior director for public and government affairs at the AWEA, warned immediate congressional action is essential if wind energy industries are to continue to grow and attract large-scale manufacturing investment.
"Investors are holding back because of Congress's delay in extending renewable energy tax credits, undermining one of the brightest and fasting growing areas of the American economy," said Wetstone. At risk are thousands of construction, operation and maintenance jobs, which could provide a valuable shot in the arm for the ailing US manufacturing sector, he added.
Rhone Resch, president of SEIA said cutting renewables tax credits will also disrupt the high-growth solar sector.
The study comes days after the renewables industry expressed disappointment at President Bush's proposed 2009 budget, which earmarked more cash for nuclear and carbon capture projects, but cut funding for solar energy research and offered only modest increases for renewables and energy efficiency initiatives.
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