Clean Energy Advocates Call on NY Representatives to Support Bipartisan Tax Package

ALBANY, NY (12/17/2015)(readMedia)-- The Alliance for Clean Energy New York today urged members of New York's Congressional delegation to support the swift passage of comprehensive tax legislation that includes an extension of the Production Tax Credit and Investment Tax Credit (PTC/ITC). These provisions, included in sweeping appropriations and tax bills introduced by House Speaker Paul Ryan yesterday, will work to ensure a predictable policy environment for New York's growing clean energy industry. Having a stable outlook will help spur the level of investment needed to bring new wind and solar projects to New York.

Consistent, long-term policies supporting wind and solar energy, along with other clean energy sources, are critical to sustainable economic growth and reducing pollutant emissions. The PTC and ITC have worked in concert with state-level policies like New York's Renewable Portfolio Standard program to significantly increase the amount of clean, renewable generation in New York's energy portfolio, and strong policy signals are becoming even more crucial as New York looks to achieve an aggressive target of 50% renewables by 2030, as well as emissions reductions under the federal Clean Power Plan and the state's 80% by 2050 initiative.

"ACE NY commends this bipartisan agreement as it will provide a much greater degree of certainty for clean energy developers and investors," said Anne Reynolds, executive director of ACE NY. "Although the provisions are not perfect and some challenges will remain, the extension of the PTC and ITC will have a dramatic impact on the ability to get projects built here in New York. We urge Congress to act quickly and decisively to enact the measure."

BACKGROUND:

The ITC, which was set to expire at the end of 2016, is a 30% federal tax credit for businesses (under Section 48 of the tax code) and homeowners (under Section 25D) to incentivize installation of solar energy systems, fuel cells, combined heat and power systems, microturbines, small wind systems, and geothermal heat pumps. Since its creation in 2006, the ITC has delivered job growth, cost reductions, and domestic energy deployment across the country.

The PTC, which expired in 2014, provides a 2.3-cent per kilowatt-hour (kWh) incentive for the first ten years of a renewable energy facility's operation. Companies that generate electricity from wind, geothermal, and "closed-loop" bioenergy are eligible for the PTC. Other technologies, such as "open-loop" biomass, efficiency upgrades and capacity additions at existing hydroelectric facilities, small irrigation systems, landfill gas, and municipal solid waste, receive a lesser value tax credit of 1.1 cents per kWh. The PTC has helped quadruple America's installed wind power from 16,702 MW in 2008 to 69,470 MW by the third quarter of 2015, enough power to supply over 18 million American homes and representing an annual average investment of nearly $15 billion.

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About the Alliance for Clean Energy New York:

The Alliance for Clean Energy New York (ACE NY) is a broad coalition dedicated to promoting clean energy, energy efficiency, a healthy environment, and a strong economy for the Empire State, and is New York's premier advocate for the rapid adoption of renewable energy and energy efficiency technologies. www.aceny.org