American Council On Renewable Energy (ACORE)
Long-Time Business Tax Extender and 100,000 U.S. Jobs at Risk
Renewable energy finance experts warn of market cliff at end of 2010 if successful implementation of the existing PTC/ITC programs is not extended, threatening U.S. energy security, competitiveness and jobs.
Washington, DC; December 9, 2010 - Members of the U.S. Partnership for Renewable Energy Finance (US PREF), a program of the American Council On Renewable Energy (ACORE), warn that without action by Congress to extend a key element of the existing renewable energy production and investment tax credit (PTC/ITC) program, commonly referred to as the 1603 Treasury cash grants in lieu of tax credits, the U.S. renewable energy market will contract and approximately 104,000 U.S. jobs will be at risk.
U.S. renewable energy investment, jobs and competitiveness are threatened if Congress allows a key element of the long-standing bipartisan PTC/ITC to expire at the end of this year. In 2009, Congress provided U.S. industry and entrepreneurs flexibility in using the long-standing tax credits. First enacted in 1992, the credits where enhanced during the George W. Bush Administration but dried up due to lack of available financing following the financial crisis. This 'tweak'provided important market flexibility producing a huge expansion in U.S. renewable energy investment and generation.
"The credit environment has not recovered from the financial crisis sufficient enough to meet growing market demand for renewable energy project investment, putting at risk the effectiveness of the long-standing and bipartisan renewable energy tax credits, " said Pat Eilers, Managing Director of Madison Dearborn Partners and an executive committee member of U.S. PREF. He added, "The policy flexibility allowed for the effective use of the PTC/ITC tax credits, and is essential for continued market growth. It will lead directly to $30 billion in additional U.S. private investment in domestically generating renewable power and 200,000 new, high-quality jobs."
Mike Eckhart, President of the American Council On Renewable Energy, said, "Inaction by Congress will put at risk important market momentum, substantial private investment and 200,000 jobs over the next two years. Congress can continue long-standing U.S. energy policy and provide important market flexibility without any additional financial commitments or obligations by the federal government."
About US PREF:
US PREF is a program of ACORE. The objective of the U.S. Partnership for Renewable Energy Finance (US PREF) is to unlock private capital flows to new, large-scale and distributed renewable energy projects in the United States. To achieve this objective, a balanced and credible group of highly experienced renewable energy financiers from financial institutions, investors, professional services firms, utilities and others, working with leading non-government organizations, have convened as US PREF. US PREF members include Bank of America Merrill Lynch, Citi, Credit Suisse, Deutsche Bank, GE Energy Financial Services, Google, Green Order, Hudson Clean Energy Partners, Madison Dearborn Partners, Morgan Stanley, NRG Energy, Skadden Arps, SolarCity, Starwood Energy, Troutman Sanders LLP, US Renewables Group and VantagePoint Venture Partners. US PREF is a program of the American Council On Renewable Energy (ACORE), a 501(c)(3) non-profit organization. www.uspref.org