WASHINGTON — Warning of crushing economic impacts if a tax break for the wind energy industry expires at the end of the year, a bipartisan group of governors joined Republican Sen. Chuck Grassley of Iowa on Tuesday in urging Congress to renew the tax credit.
Iowa Gov. Terry Brandstad and Kansas Gov. Sam Brownback, both Republicans, joined Colorado Gov. John Hickenlooper and Oregon Gov. John Kitzhaber, both Democrats.
The governors and Grassley implored Congress, on its first day back in session after last week’s election, to extend the tax credit.
“It’s critical, it’s happening and it needs this extension,” said Brownback, noting that wind energy was a major force helping the economy in Kansas.
House Republicans had said before the election that extending the tax credit was not prudent given the nation’s budget deficit.
Effects have already been felt from the uncertainty surrounding the tax credit’s future, the governors said. The Des Moines Register reported earlier this month that Cedar Rapids, Iowa-based Clipper Windpower laid off 174 employees — a third of its workforce — in August. Brandstad added that Siemens, in Fort Madison, Iowa, laid off about 400 workers this year.
Iowa ranked second in the country in 2011 for percentage of electricity derived from wind at 18.8 percent, according to a press release from the American Wind Energy Association, a lobbying group for the wind energy industry.
Tuesday’s conference reinforced a letter sent to congressional leaders from the Governors’ Wind Energy Coalition. The group is made up of governors of 23 states representing both parties. Branstad chairs the coalition, and Kitzhaber is the vice chairman.
Grassley said the tax credit was just one of 60 provisions that would have to be worked out between now and the end of the year. He was pessimistic the issue could be resolved this month, citing a short work week and the Thanksgiving holiday next week.