Wind power tax credit clears Senate panel

Aug 3 - McClatchy-Tribune Regional News - Peter Roper The Pueblo Chieftain, Colo.

A bipartisan majority of the important Senate Finance Committee gave Vestas and other U.S. wind-power manufacturers a long-awaited boost Thursday by approving legislation to extend a federal wind power tax credit through 2013.

The wind-power credit is one of many personal and business tax deductions in the bill approved by the Senate panel, 19-5. The 20-year-old credit has received national attention because wind power manufacturers have warned they will have to lay off thousands of U.S. workers if the tax credit expires in December.

Vestas has said 1,600 workers in Colorado are at risk, including more than 400 at its Pueblo plant.

"This package of tax-credit extenders won't get to the full Senate floor before the August recess, but it's the kind of legislation that usually passes late in each session," a Senate staffer said. "This is good news for the wind industry."

Colorado Sens. Michael Bennet and Mark Udall, both Democrats, said the strong vote in the finance committee proved there is bipartisan support for the tax credit. Among the senior Republicans backing the credit is Sen. Chuck Grassley, R-Iowa.

Udall has been giving weekly floor speeches on behalf of the wind credit for three months and said the finance committee vote was a welcome sign the Senate deadlock on the issue may be over.

"But we need to act soon and prevent China and other countries from stepping into the breach," he said.

The issue has grown in importance, becoming part of the presidential election campaign. President Barack Obama supports its extension and has campaigned at wind-power facilities throughout the nation.

Republican challenger Mitt Romney opposes extending the tax credit, saying it has failed to make wind power competitive with cheaper energy from oil, natural gas or coal.

proper@chieftain.com