United States

United States

US Chamber of Commerce backs PTC extension

UNITED STATES: The US Chamber of Commerce has joined the list of groups backing an extension of the Production Tax Credit (PTC).

The chamber's director of tax policy Caroline Harris said indecision about the credit was potentially harmful to businesses and projects.

She said: "When Congress fails to act, provisions such as the wind Production Tax Credit … do not operate efficiently. Industries that are in their infancy are damaged because the code provisions they need to rely on to build are not there.

"The damage is real as products are not developed and projects are not undertaken. Congress must act now to extend these vital provisions."

Some industry observers believe the PTC could be extended this month. Wind power’s eligibility for the tax credit does not expire until December 31, 2012. But if the PTC is not extended as part of the payroll tax legislation, Congress will likely only consider it after the 6 November federal and presidential votes.

The chamber's endorsement follows that of President Barack Obama's Council on Jobs and Competitiveness. The council said the PTC will help the US "diversify its generation portfolio and prepare for rising levels of energy demand."

A four-year PTC extension also has the support of the bipartisan Governors’ Wind Energy Coalition. The group includes 23 Republican and Democratic Governors from across the US.

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