Wind tax credit

Wind tax credit Extending federal tax credit would give wind energy confidence in consistency America's wind energy industry - and Kansas' wind energy industry - have some real momentum behind them that needs to be sustained. Now is not the time to flirt with ending a federal tax credit for wind production that the industry views as critical for its continued growth. The industry is appealing to Congress to extend the measure, which provides an income tax credit of 2.2 cents a kilowatt-hour for the production of electricity from utility-scale turbines, helping wind energy to compete with natural gas. Representatives of an industry trade group on Monday released results of a study it commissioned that concludes that failing to extend the tax credit could cut existing jobs in the wind industry by half, while maintaining it could grow jobs by a third. Extending the tax credit for another four years would cost an estimated $13.6 billion but would yield more than $25.6 billion in economic benefit - up to $2 billion in Kansas. Hutchinson and Kansas are proof of the growing industry. Hutchinson is home to Siemens Energy's wind turbine manufacturing plant in the U.S., which has created 300 jobs and is still growing. Siemens executive Kevin Hazel, speaking with other industry leaders on a conference call, said his company's division has grown in the U.S. from a single employee in 2005 to more than 1,800 today. That isn't to mention the growing number of wind farms sprouting up around the state. Siemens isn't done in Hutchinson. Suppliers for the company continue to eye the community as a location of their own. And plenty of wind in Kansas remains to be harvested for power. The industry is seeking confidence and consistency in the tax environment, Hazel said. When Congress has allowed renewable tax incentives to expire twice before, that created uncertainty, slowed wind turbine installations and caused job losses, he said. The tax credit doesn't expire until the end of 2012, but members of Congress ought to appreciate the need for consistency. It is exactly what many Republican lawmakers have been saying about federal tax policy and regulation, that uncertainty is hurting business growth. Wind energy has become a vital industry for Kansas. Members of our congressional delegation should step forward to co-sponsor and push for legislation to maintain this federal tax credit. By John D. Montgomery/Hutchinson News editorial board