Imagine that Congress managed to eliminate the tax deductions that oil companies benefit from: what would happen? Would there be massive layoffs? Would plants shut down? Er, no, we’d just see a rise in cost of oil and gas. What happens when an “alternative energy” tax credit is not extended?
(CBS) Wind energy equipment manufacturer Siemens Energy Inc. will lay off 615 workers in Iowa, Kansas, and Florida in part because Congress has not renewed a tax credit for wind energy, the company said Tuesday.
Siemens said the biggest job losses will come in Fort Madison, Iowa, where 407 workers at a wind-turbine blade factory will be out of work. About 220 workers will be retained at the plant to support ongoing operations, spokeswoman Melanie Forbrick said in a statement.
The company blamed difficult market conditions due to lack of congressional action on a wind energy tax credit as well as increased use of natural gas-fired power plants. It said it has worked for the past 10 months to address the uncertainties but needed to adjust its work force until demand for turbines returns.
Without the tax credits (and government subsidies) many “green” energy companies cannot survive. The costs are already sky-high, and the only way to sell the wind turbines and get them operating is with those tax credits and subsidies. There’s only so much cost that can be passed on to the consumer, since wind and solar are already much more expensive energy sources than, say, natural gas.
We learn this information by way of Grist, which points out that those evil Republicans, and, hey, Harry Reid, are killing the tax credits and subsidies through inaction. Grist is highlighting a letter sent to Congressional leaders from 19 companies, asking that the credits be kept, and
The companies that signed the letter are lobbying to save a few bucks on their electricity bills.
Well, then why don’t they put up a whole bunch of wind turbines and solar panels on their own buildings at their own expense?
