The Clinton Herald, Clinton, Iowa

CNHI News Service Originals

December 13, 2012

Tax credit debate sucking the wind out of wind industry

JOHNSTOWN, Pa. — The wind industry's turbines are stalling over doubts about the future of a 20-year-old tax credit, and the uncertainty is already costing jobs and cancelling projects.

A Gamesa turbine plant near here, in Cambria Township, has laid off more than 160 workers so far this year because of slacking demand for windmill parts. Iberdrola Renewables recently canceled a 24-turbine wind farm planned for mountains south of here, near the Maryland-Pennsylvania border.

Wind developers aren't planning new projects, said David Rosenberg, Gamesa's vice president of marketing and communications, which means the supply chain is slowing and thousands of people are out of work. The wind industry employs about 75,000 people in the United States, and most of its projects are on 12- to 18-month schedules

Clouding their future is uncertainty surrounding the federal tax credit, which expires at the end of the year. Wind energy producers get a 2.2-cent credit for every kilowatt hour they put into the power grid. The credit enables some to cut as much as one-third of their operating costs, which supporters say inspires more wind development.

"It’s very important to get the tax credit. It's very important for the industry," said Dan Lagiovane, a communications manager for EverPower, a Pittsburgh company that operates four wind farms, including two in Pennsylvania, and is building two others in the state.

If renewed by Congress, the credit will cost $1.36 billion per year between now and 2015, according to the Congressional Joint Committee on Taxation. The American Wind Energy Association says the credit, in turn, leverages $15.5 billion in private investment each year.

The tax credit's survival isn't certain, despite President Obama's support for it during the fall campaign. Obama's negotiations with Republican House Speaker John Boehner over the budget deficit have cast doubt over most tax credits and loopholes.

Text Only
CNHI News Service Originals
  • Screen Shot 2014-04-08 at 2.16.35 PM.png Are Americans smart to stop drinking diet sodas?

    Recent data from Beverage Digest suggest many are cutting back on diet sodas. Consumption of diet sodas fell more than that of sugary sodas in 2013. This raises two questions: Why is total consumption declining, and is drinking diet soda harmful to health?

    April 8, 2014 1 Photo

  • Screen Shot 2014-04-08 at 10.43.57 AM.png VIDEO: Amazing dance moves at NCAA title game

    Eye-catching action wasn't confined to the court at AT&T Stadium Monday night during the NCAA Championship game between UConn and Kentucky. This pair -- apparently a father and son -- delighted the crowd during a timeout with some synchronized dance moves.

    April 8, 2014 1 Photo

  • news_twitter.jpg Travelers fly on Air Twitter

    The enlightened age of social media has dawned over the airline industry, casting shadows over telephone call centers and on-site agents. Facebook and Twitter are racking up the friends and followers while the hold music plays on.

    April 8, 2014 1 Photo

  • VIDEO: White House may ban selfies

    The White House wasn't too pleased after Red Sox player David Ortiz snapped a selfie with President Obama that was later used promotionally by Samsung.

    April 8, 2014

  • 297px-Starbucks_Corporation_Logo_2011.svg.png Why Starbucks won't recycle your paper coffee cup

    When you drop that used white paper cup into the bin next to the door at a Starbucks, have you done your part to save the planet? Starbucks has long hoped that you would think so. After all, there's no better way to attract an affluent, eco-conscious clientele than to convince customers that your disposable product is "renewable."

    April 8, 2014 1 Photo

  • A man with amnesia taught us how memories become personal

    Although not as celebrated as the late American amnesiac H.M., for my money K.C. taught us more important and poignant things about how memory works. He showed how we make memories personal and personally meaningful. He also had a heck of a life story.

    April 8, 2014

  • At many leading schools, football fails to make cut

    To my astonishment, 67 of the top 100 schools, ranked by participation in college-level tests, said they do not field a team, denoting a shift in American high school culture, at least in those schools that challenge their students most.

    April 8, 2014

  • Investigators seek cause of fire that killed three brothers

    Authorities searched the rubble of a burned-out farm house over the weekend for the cause of a fire that took the lives of three young brothers left home alone while their widowed mother worked the overnight shift at a direct mail company.

    April 6, 2014

  • Screen shot 2014-04-04 at 3.36.06 PM.png 3 apps to make your flight easier

    Whether you fly once a week for work or once a year for a vacation, you can bet that all areas of your trip are being monitored by smart phones. While it isn't hard to find an app with your flight info, some apps make the process of flying a lot simpler.

    April 6, 2014 1 Photo

  • Don't blame voters for low turnout

    Suppose nobody votes this year. On Nov. 4 the doors to the polling places are thrown open, and there isn't anyone in line. No absentee ballots are filed. No one litigates, charging either fraud or discrimination, because there weren't any voters.
    It won't happen. But if it did, pundits and activists would surely blame public apathy for such a catastrophe. I'd name a different culprit: the major parties, their candidates and their acolytes in the news media.

    April 6, 2014

Front page
Clinton Herald Photos


Browse, buy and submit pictures with our photo site.

Poll

What are your plans for the weekend?

Enjoying the outdoors
Staying in out of the heat
Traveling
Other
     View Results
AP Video
Olympics 2014
Featured Comment
Featured Ads
Blue Zones Project
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.