Coalition of 24 Groups Oppose Energy Tax Credit Extension

Leader McConnell and Chairman Grassley:

On behalf of millions of taxpayers and consumers across the country, we are writing to express our opposition to extending the production tax credit (PTC) and the investment tax credit (ITC) which are scheduled to expire at the end of this year.

We urge the Senate to reject any legislative proposals that would extend these handouts to mature energy technologies which place an unacceptable burden on taxpayers.

The PTC and ITC were initially intended to support “infant” industries that were too expensive to succeed in their early stages without government support.  However, after decades and billions of dollars in subsidies the solar and wind industry are more than capable of supporting themselves without federal “incentives.”

The U.S. House of Representatives passed legislation — the “Moving Forward Act” — that would provide the wind and solar industries an additional five years to start construction on new facilities in order to qualify for ten years of tax credits once the new facilities start operation. For reference, the PTC for wind has already been extended 12 times since 1999, despite Congress agreeing in 2015 to phase it out. The extension in the House bill means that taxpayers could be on the hook to subsidize new wind facilities through 2037. If the deadlines are extended, the cost of tax credits for new wind and solar facilities has been estimated to be at least $13 billion. This cost to taxpayers would be in addition to the $131 billion already estimated for wind and solar subsidies during 2010-2029.

According to the American Wind Energy Association, “U.S. wind power has more than tripled over the past decade and today is the largest source of renewable energy in the country … growth in the wind industry is expected to remain strong when the PTC is fully phased out.  Because the PTC has been successful … wind will continue to expand capacity …”  Similarly, the Solar Energy Industries Association states that, “In 2019, solar was the number one source of new electric generating capacity installed in the United States, representing 40% of all new capacity installed.  Over the last 10 years, solar deployment has grown an average of 48% every year.”

It’s also worth noting that, in addition to tax subsidies, some 37 states have mandatory targets or voluntary goals for using renewable energy sources to   generate electricity.  These state programs continue to bolster wind and solar power at the expense of taxpayers and consumers. There’s no need for another layer of poorly targeted programs for “renewables.”

These industries do not need more taxpayer dollars and federal favoritism to keep them afloat. We, therefore, urge you to oppose the extension of the production and  investment tax credits.


David Williams
Taxpayers Protection Alliance
Matthew Kandrach
Consumer Action for a Strong Economy
Brent Wm. Gardner
Chief Government Affairs Officer
Americans for Prosperity
Tom Schatz
Council for Citizens Against Government Waste
Bethany Marcum
Executive Director
Alaska Policy Forum
Robert Roper
Ethan Allen Institute
Phil Kerpen
American Commitment
Annette Meeks
Founder and CEO
Freedom Foundation of Minnesota
Steve Pociask
President / CEO
American Consumer Institute
Jessica Anderson
Executive Director
Heritage Action
Grover Norquist
Americans for Tax Reform
Brandon Arnold
Executive Vice President
National Taxpayers Union
Garrett Ballengee
Executive Director
Cardinal Institute for WV Policy
Robert Fellner
Vice President & Policy Director
Nevada Policy Research Institute
John Hinderaker
Center of the American Experiment
Eli Lehrer
R Street Institute
Andrew F. Quinlan
Center for Freedom and Prosperity
Paul Gessing
Rio Grande Foundation
Jeff Mazzella
Center for Individual Freedom
Robert Alt
President & CEO
The Buckeye Institute
Donald Bryson
Civitas Institute
Christian N. Braunlich
Thomas Jefferson Institute for Public Policy
Myron Ebell
Director, Center for Energy and Environment
Competitive Enterprise Institute
James L. Martin, Founder/Chairman
Saulius “Saul” Anuzis, President
60 Plus AssociationJameson Taylor, Ph.D.
Vice President for Policy
Mississippi Center for Public Policy