Witness Testimony Confirms Energy Tax Incentives are Creating Jobs as We Reduce our Dependence on Foreign Oil

WASHINGTON, D.C. – The House Ways and Means Committee today held a hearing on energy tax incentives that are driving the green job economy. Committee Members discussed the positive growth spurred by investments created by the American Recovery and Investment Act (P.L. 111-5), and further steps the Committee can take to reduce America's dependence on foreign oil, and spur additional job creation.

Public Investment in Renewable Energy is Critical to America's Energy Future

While some have resisted public investment in domestic renewable energy, hiding behind vague arguments that these incentives distort the free market, the Committee heard testimony today that emphasized the need for an active public-private partnership investing in renewables.

For example, Mr. T. Boone Pickens, Chairman of BP Capital, encouraged immediate change to invest in domestic renewable energy:

"I'm 82 years old next month, and I've got to get an energy plan for America. We can't leave this to generations in the future… If you think OPEC is a free market, you're a sap…. When do we stop investing in OPEC and start investing in America?"

Recovery Act Provisions Creating Jobs, Funding Critical Renewable Energy Projects

A number of witnesses noted that the energy tax incentives created by American Recovery and Reinvestment Act (ARRA) have been key factors in driving green job creation and putting the country on a track to economic recovery:

Victor Abate, Vice President of Renewables at General Electric explained that provisions in the Recovery Act helped provide vital financial capital for renewable energy projects during the recent credit crisis:

"ARRA also made a crucial change to address the fact that the credit crisis of 2008 reduced the usability of tax credits to finance projects. Section 1603 of the Act made the tax credit "convertible," so that developers could receive payments equal to the value of the ITC. This was a critical step in enabling renewable energy projects to be financed through the economic downturn."

Stephanie Burns, Ph.D., Chairman, President and Chief Executive Officer at Dow Corning, discussed how the ARRA is an important tool in creating American jobs:

"The Advanced Energy Manufacturing Tax Credit included in the American Recovery and Reinvestment Act was a significant first step toward establishing new clean-technology manufacturing jobs here in the U.S."

Joseph Romm, Ph.D., Senior Fellow at the Center for American Progress, also spoke to the importance of the ARRA in funding green energy projects:

"ARRA's transition to a cash grant in lieu of the ITC has made financing renewable energy projects easier in the absence of a lively tax equity market."

Matt Rogers, Senior Advisor to the Secretary at the Department of Energy, discussed how energy tax incentives have prevented industries from collapsing:

"The energy tax incentives under the Recovery Act have been effective in creating jobs quickly and restarting industries that were on the verge of shutting down."

Click here for more information on today's hearing.

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