House Committee on Wednesday To Examine Expiring Tax Subsidy
Washington, DC, Oct. 2, 2013 - Absent action by Congress, the federal Wind Production Tax Credit will expire at the end of this year, but it could survive if included in other tax or omnibus spending legislation to be considered this fall. The tax credit amounts to a subsidy for well-connected government cronies to produce a product that cannot compete on price or reliability. On Wednesday, the House Oversight and Government Reform Committee will hear testimony on the wind production tax credit.
“Congress should not renew the Wind Production Tax Credit for another year and thereby upset the planned phase-out that was passed just last year,” said Myron Ebell, Director of CEI’s Center on Energy & Environment.
“The wind energy lobbyists spend more time seeking handouts than in trying to make their product competitive,” said Ebell. “The tax credit amounts to the worst kind of cronyism, costing taxpayers billions, foisting mandates on states and driving up electricity rates for consumers and manufacturers.”
CEI and two dozen other groups last month urged Congress to let the wind PTC expire, because, “[I]t doesn’t produce cheaper energy, it threatens electrical grid reliability, it’s inefficient, [and] it’s unprincipled tax policy.”
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