Subject: Please support Clean Renewable Energy Companies in Arkansas through the extension of Treasury Grant Program 1603 and 48c Clean Energy Manufacturing Tax Credit because "Renewable Energy is Homeland Security"
(The following is freely ripped off, rewritten and combined from emails of suggested letters to politicians compiled by Arkansas Business Leaders for a Clean Economy and Infocast)
Dear Senator _,
I believe that Treasury Grant Program 1603 and 48c Clean Energy Manufacturing Tax Credit are critical to the continuing development of solar power, wind power, and other forms of renewable energy, which are important to the secure economic and environmental future of the United States of America. The ability to create these clean renewable power sources, however, is being seriously threatened by the lapsing of key U.S. government supports of the Treasury 1603 (Treasury Grant) program and the 48c Clean Energy Manufacturing Tax Credit, originating in the American Recovery and Reinvestment Act.
The 1603 program is essential because of the grave shortage of tax equity investment capacity, which has not recovered from the financial crisis of 2008-9. Moreover, there is no suggestion that this program has been anything but both well-managed and highly effective in accomplishing its support for the development of renewable energy generation assets during this period of financial market disruption. In addition, the 48c Clean Energy Manufacturing Tax Credit is critical to developing the domestic manufacturing infrastructure needed to develop this critical new industry in Arkansas.
President Obama and the Republican leadership negotiated a tax cut deal that left key clean economy provisions on the cutting room floor. As currently written, crucial tax incentives and grants, including Treasury Grant Program 1603 and 48c Clean Energy Manufacturing Tax Credit, are not included. Congress and the President have not passed a single clean economy priority this year. Absent a broader energy policy, these programs are critical to scaling up the domestic clean energy industry and creating American jobs.
Of all the policies, 1603 has been the most successful at moving the clean economy forward. Created to fill the investment gap left by Wall Street following the collapse of many giant lenders, the grant program distributed 143 grants to a variety of clean economy projects as of this October. This program is responsible for helping 1,465 clean economy projects covering almost every state in the country.
The Lawrence Berkeley National Laboratory estimated that the grant program created over 55,000 jobs in the wind and geothermal industries alone. Extension of 1603 would create an additional 27,000 jobs building solar projects in 2011. Some have estimated that the United States will let 104,000 jobs slip through our fingertips if 1603 is not extended.
In Arkansas, the 48C program provided tax credits to assist Danfoss in Arkadelphia, Nordex in Jonesboro, American Railcar in Marmaduke, Mitsubishi in Fort Smith, and Porocel in Little Rock. Each of these industries is important to the renewable energy industry and the Arkansas economy.
Sacrificing 1603 and 48c, and other clean economy tax programs, will put clean economy projects at risk and threaten the momentum we have gained over the past few years. Capital markets are frozen, preventing clean economy businesses from growing and allowing foreign countries to lap us in the race to develop a clean economy. Are the President and Congress committed to saving and creating American jobs? Are the President and Congress committed to getting the U.S. economy back on track? Or are they sacrificing the American clean economy for political expediency?
Sincerely,
Sustainable