Republicans Oppose the PTC but Support Oil Subsidies

It is not surprising that many Republicans who oppose the Production Tax Credit (PTC) for renewable energy, support fossil fuel subsidies. Although the PTC was extended through 2013, some Republicans have vowed to continue their push to kill it. Conservatives are well known for their love of free markets and distrust of government subsidies, unless of course it involves fossil fuels. Some Republicans in Congress have made it clear that they will seek amendments that erode the PTC.

Republicans including the 2012 presidential nominee Mitt Romney, wanted to let the PTC expire. Romney and other Republicans who oppose the PTC say it costs too much and props up businesses with government subsidies.

Romney spokesman Ryan Williams said in an email that Romney "believes the government should stop playing venture capitalist and doling out open-ended subsidies, and instead encourage private sector innovation and market competition.” This is part of the same conservative philosophy that advocates for unbridled free markets and supports deregulation.

Fiscal Cliff Deal Extends PTC and ITC for Wind Energy

On the cusp of the fiscal cliff the House voted to approve a sweeping tax deal that also extends the Production Tax Credit (PTC) and Investment Tax Credit (ITC) for wind energy for one year. The wind industry has grown tremendously under the PTC and ITC and it can be expected that the year long extension will continue this growth into 2013. This is good news for America’s 75,000 workers in wind energy in 50 states. While the deal passed overwhelmingly in the Senate the House vote was much closer (257-167). Predictably many Republicans did not support the initiative and almost pushed the credits over the cliff.

The U.S. Energy Information Administration (EIA) reported that wind set a new record in 2012 by installing 44 percent of all new electrical generating capacity in America, leading the electric sector compared with 30 percent for natural gas.

California's Proposition 39 will Generate Half a Billion a Year for Clean Energy and Efficiency

In California 60 percent of voters approved the passage of Proposition 39 which will generate $500 million per year for energy efficiency and clean energy projects in public buildings over the next five years. This includes projects at schools and government buildings such as installing solar panels, and energy efficiency retrofits.

"California voters not only modernized the state’s corporate tax structure by passing Prop 39, they indicated their strong support for renewable energy, including expanding solar energy and encouraging related investment over the next five years,” Carrie Cullen Hitt, vice president for state affairs at The Solar Energy Industries Association.