Renewables seek renewed break

WASHINGTON -- Executives from wind, solar and geothermal associations are lobbying Congress to renew expiring tax breaks as part of its effort to jump-start the economy.

Record growth for renewable energy projects, along with thousands of jobs, would be threatened if production tax credits and investment tax credits are not extended, the officials said. The tax credits expire at the end of the year.

"Already we are seeing sales and new project announcements drop off," the association leaders said in a joint statement.

Representatives of the Geothermal Energy Association, the American Wind Energy Association, the Solar Energy Industries Association and the National Hydropower Association outlined their efforts at a news conference.

They said 2007 was a record year, with almost 6,000 megawatts of new renewable energy coming on line involving more than $20 billion of investment.

Energy companies are increasingly focusing on Nevada and its bountiful sources of sunshine, earth heat and wind, with encouragement from the state's leadership. In December, the largest photovoltaic array in the country went online at Nellis Air Force Base.

But large-scale solar and wind projects take more than a year to locate, approve and build, and geothermal and hydropower projects take even longer. Without tax assurances, they won't get built, the groups said.

"If the renewable energy tax credits are allowed to expire, we will lose hundreds of thousands of jobs here in the U.S.," the groups said.

Congress last year was moving to renew the tax credits but they were scrapped late in the session in a debate over corresponding tax increases on oil and gas companies.

Two senior senators said Tuesday they would support adding the tax breaks to an economic stimulus bill being negotiated by congressional leaders and the White House. But the outlook is unclear. Manufacturers, high tech companies, construction firms and other industries also are trying to persuade lawmakers to insert favorable tax provisions into the stimulus bill.

Sen. Pete Domenici, R-N.M., said the energy tax breaks would be fitting for the bill.

"Tax incentives that provide for the production of renewable energy will help grow the economy by increasing jobs, lowering energy prices, and infusing much-needed capital into the markets," Domenici said.

Sen. Harry Reid, D-Nev., supports the energy firms, a spokesman said.

"That said, we are in the very early stages of discussion and it is difficult to know for certain what the final package will look like," the spokesman said.