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And could be up to 37,000 jobs lost if Congress doesn't act.

Where is Congress on extending the tax credit for our wind industry?

As I pointed out years ago, we're not going to have an alternative energy industry here with the attendent green jobs without long term tax breaks.

Vic Abate expects that many makers of gearboxes, towers, and blades for wind turbines will go under next year. He should know: As vice president of General Electric’s (GE) renewable energy business, Abate is the executive who will seal their fates.

With a federal tax credit that subsidizes the U.S. wind industry set to expire at the end of 2012, GE is scrutinizing its supply chain. That’s significant as the Fairfield (Conn.)-based company is the market leader in wind, with a 29.4 percent share in 2011, according to the American Wind Energy Association (AWEA). Uncompetitive vendors will be culled, Abate says, while stronger suppliers will be offered operational and financial assistance. “We’re in the process of picking winners and losers,” he says.

A looming industry shakeout may give Abate an opportunity to wring better terms from his 200-plus vendors. The company might have as many as 10 suppliers for certain components now, a figure that may dwindle to just three once he is finished pruning.

Manufacturers of turbines and other components will shed an estimated 10,000 workers in the U.S. this year in anticipation of a slowdown in orders, says the AWEA. If Congress doesn’t extend the production tax credit, that figure will hit 37,000 next year—about half the industry’s workforce. The incentive, first offered in 1992, grants owners of wind farms a credit equal to 2.2¢ per kilowatt-hour for electricity produced over a 10-year period. Extending the break for just one more year would cost $4.1 billion in forgone tax revenue over a decade, according to estimates from Congress’s Joint Committee on Taxation. Senator Charles Grassley (R-Iowa), one of the sponsors of a bill that would preserve the credit, has said he expects no decision until after the November elections.

http://www.businessweek.com/...

Originally posted to Superpole on Mon Jun 18, 2012 at 12:07 PM PDT.

Also republished by The Royal Manticoran Rangers.

Poll

Congress should extend the tax credit for our wind power industry.

78%41 votes
21%11 votes

| 52 votes | Vote | Results

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Comment Preferences

  •  Tip Jar (16+ / 0-)

    "The fundamental strength of the economy is unimpaired". Herbert Hoover December 2, 1930

    by Superpole on Mon Jun 18, 2012 at 12:07:05 PM PDT

  •  investment is as investment does. (4+ / 0-)

    or in the case of today's House of Reprehensibles, Stoopid is as Stoopid does.

    What we call god is merely a living creature with superior technology & understanding. If their fragile egos demand prayer, they lose that superiority.

    by agnostic on Mon Jun 18, 2012 at 12:15:08 PM PDT

  •  Nothing will be done before the lame-duck session (1+ / 0-)
    Recommended by:
    wilderness voice

    because that's how the Republicans roll. They would much prefer to crash the economy so they can use it to re-take the White House and the Senate.

    They are counting on the stupidity and short-sightedness of the American voter to come through for them. They don't care who gets hurt along the way.

    •  I Disagree (1+ / 0-)
      Recommended by:
      dewley notid

      Safe to assume some of the 37,000 green jobs that could disappear are in republican districts. It shouldn't be that difficult to get repugs on board to save these jobs.

      "The fundamental strength of the economy is unimpaired". Herbert Hoover December 2, 1930

      by Superpole on Mon Jun 18, 2012 at 03:13:14 PM PDT

      [ Parent ]

    •  The Hostage Takes will renew the tax credit (0+ / 0-)

      after an eleventh-hour showdown in which they extract concessions for BigFossil Inc.

      Have you noticed?
      Politicians who promise LESS government
      only deliver BAD government.

      by jjohnjj on Wed Jun 20, 2012 at 05:43:37 PM PDT

      [ Parent ]

  •  Why more tax breaks for corporations? (1+ / 0-)
    Recommended by:
    Roger Fox

    Drive green energy with state and federal mandates for increasing levels of green energy by utilities and pushing coal out of the market through regulation.

    The above is far better than spending $400,000 per job which is what the diary's numbers work out to be.

    The most important way to protect the environment is not to have more than one child.

    by nextstep on Mon Jun 18, 2012 at 12:38:04 PM PDT

    •  Mandates have a place (1+ / 0-)
      Recommended by:
      ozsea1

      I'm not keen on FIT, I do like tax breaks to incentivize capital flow to investment, to create jobs in the US, but not at 400k per job....

      FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

      by Roger Fox on Mon Jun 18, 2012 at 12:55:52 PM PDT

      [ Parent ]

      •  It's not just jobs, though (5+ / 0-)

        That's like the republicans saying that the infrastructure spending in the stimulus was a bad idea because it cost $X per job, completely ignoring that a big chunk of the money goes to actually pay for the materials for the needed infrastructure rather than directly to salaries. In this case, we're also getting more energy-producing capability (which is good for national security), less pollution, and increasing the popularity of wind power, which brings down the cost in the long run.

        Also, I get 4.1 billion / 37,000 = just under $111k per job, over a decade, so $11k per year per job.

        •  The jobs are for putting in capacity over 1 year (1+ / 0-)
          Recommended by:
          Roger Fox

          where the corporation gets the tax benefit over 10 years.  So the Tax give away is 10 times greater per employee than you calculated, as the jobs are only for one year.

          Mandates for green energy and less coal is better as the cost goes to those who produce and use energy, which then also promotes energy efficiency by everyone, especially large users.  At the same time the mandates protect the green jobs as demand for electricity continues.

          The most important way to protect the environment is not to have more than one child.

          by nextstep on Mon Jun 18, 2012 at 03:22:45 PM PDT

          [ Parent ]

        •  Wind is 3.3 to 6.5 cents per KwH (1+ / 0-)
          Recommended by:
          Maverick80229

          New study from Berkeley National Labs, I'm publishing a diary Tuesday on that.

          Those price points are starting to get a lot of attention from capital.....

          FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

          by Roger Fox on Mon Jun 18, 2012 at 04:27:27 PM PDT

          [ Parent ]

    •  Because some corporations (1+ / 0-)
      Recommended by:
      Superpole

      and their products are worth it. Some are not.

      You know this.

      Both parties are beholden to their corporate sponsors. The Democratic Party deigns to throw us a few bones from the table on which to gnaw and squabble over, but it's just kabuki.

      by ozsea1 on Mon Jun 18, 2012 at 01:18:53 PM PDT

      [ Parent ]

    •  Nice Try But (0+ / 0-)

      we're not going to totally eliminate coal. Most congresspeople care more about jobs than they do clean air.

      Why subsidize the industry? Ohhh, I dunno; maybe so we can have green industrial jobs here in the U.S.?

      Not long ago China flat out stated "WE will dominate the alternative energy market". Right now China's Suntech is kicking our ass in the solar panel market. Suntech is subsidized by the Chinese government.

      "The fundamental strength of the economy is unimpaired". Herbert Hoover December 2, 1930

      by Superpole on Mon Jun 18, 2012 at 03:19:15 PM PDT

      [ Parent ]

      •  No new coal plants are being built or planned in (0+ / 0-)

        the US.

        The current more demanding environmental standards for burning coal in the US is forcing the closing of older coal power plants.  As existing coal plants age and environmental standards rise more coal plants will increasingly close.

        The green energy mandates promote green energy and jobs more efficiently than tax credits for green energy production.

        Production tax credits do nothing for green jobs from increasing the efficient use of energy and reduces the benefits of increasing energy efficiency.    

        The most important way to protect the environment is not to have more than one child.

        by nextstep on Mon Jun 18, 2012 at 03:33:30 PM PDT

        [ Parent ]

  •  I almost dont care (4+ / 0-)
    Recommended by:
    Superpole, nextstep, Losty, Maverick80229

    Berkely National Labs show wind costs 3.3 to 6.5 cents per KWH to generate, the cheapest form of electricity on the planet.

    Capital is starting to see this, projects like the Atlantic Wind Connection are being funded with out any tax breaks. Granted the AWC is just the HVDC trunkline, but the fact that the Market sees this as a viable investment suggests good things.

    Heres a preview of an article I'm posting Tuesday at DK.

    http://rdanafox.blogspot.com/...

    FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Mon Jun 18, 2012 at 12:52:58 PM PDT

  •  Opps Business week (1+ / 0-)
    Recommended by:
    ozsea1

    turbines are direct drive...... no gears.....

    FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Mon Jun 18, 2012 at 12:56:36 PM PDT

  •  Repubbed to the Royal Manticoran Rangers (1+ / 0-)
    Recommended by:
    dewley notid

    Planet's warming up. Can't do same ol same ol. To hell with the concern trolls. That way lies methane meltdown and apocalypse.

    Both parties are beholden to their corporate sponsors. The Democratic Party deigns to throw us a few bones from the table on which to gnaw and squabble over, but it's just kabuki.

    by ozsea1 on Mon Jun 18, 2012 at 01:21:07 PM PDT

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