WASHINGTON – Sen. Chuck Grassley of Iowa today voted in favor of an amendment expressing the sense of Congress that the tax credit used by the wind energy industry should be extended for five years. Grassley reiterated his view that the tax credit, like others, wasn’t intended to last forever and Congress should work on sensible solutions for a reasonable phase-out. Grassley also argued the amendment was ill-timed by its sponsors in the minority party and might actually harm the production tax credit extension, given the amendment failed to achieve a majority vote.
Grassley submitted a statement for the Senate Record. The text follows here.
Statement of Senator Charles E. Grassley
On Amendment #133
January 28, 2015
Mr. President, I’d like to speak on Senate amendment #133, offered by Senator Heitkamp of North Dakota. The amendment is a sense of Congress that the renewable electricity tax credit should be extended for five years. While I supported the amendment, I would like to express my concerns regarding the consideration of this amendment at this time.
I’ve been an outspoken supporter of renewable energy for many years. In fact, I first authored the wind production tax credit in 1992 to drive this renewable energy technology. I’ve worked for many years to provide as much certainty as possible to grow the domestic wind industry. Iowa has seen an enormous investment in wind energy manufacturing and wind farm development. I know firsthand the boom and bust cycle that exists for renewable energy producers when Congress fails to extend these critically important tax incentives.
But, I also know this credit won’t go on forever. It was never meant to, and it shouldn’t. In 2012, the wind industry was the only industry to put forward a phase out plan. A number of my colleagues here in the Senate have been working to construct a responsible, multi-year phase out of the wind tax credit. That’s why I’m somewhat puzzled by an amendment that suggests a five-year extension of this credit. It seems disconnected with reality.
I’d remind my colleagues on the other side, that in November of 2014, the House offer on tax extenders included a multi-year extension of the wind production tax credit that would have provided the certainty and soft landing that most of us and the industry support. But, President Obama issued a veto threat before the ink was dry, and as a result, the wind incentive expired.
Again, I strongly support wind energy. But, I support a prudent way forward on an extension of the production tax credit. This amendment fails terribly in that regard. That’s why I’m disappointed that the Senator from North Dakota insisted on going forward with a five-year extension on this bill. This is not a real effort to extend the wind incentive. I’m afraid this was simply a politically motivated effort designed to score political points. It’s unfortunate that in this case, politicking has trumped efforts to achieve sound, responsible policy.
Rather than offer “gotcha” amendments on an unrelated bill, we should be working together to craft an extension of these important tax incentives that work for the wind industry, that are realistic politically, and that make sense for the American taxpayer. That effort requires regular order, working through the Finance Committee, to determine the most prudent path forward. It should be done in the context of comprehensive tax reform, where all energy tax provisions are on the table, rather than as a sense of the Congress on the unrelated Keystone XL bill.
I hope that with this political exercise behind us, those of us who seek to ensure a responsible transition for the wind production tax credit can get to work and achieve a sensible policy for those who depend on it. It’s too bad that this ill-timed, ill-conceived amendment may have actually harmed those efforts.
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