Senator Amy Klobuchar

Working for the People of Minnesota

Press Contact

Joel Gross
Press Secretary
(202) 224-3244

News Releases

Klobuchar Announces Progress on Renewable Energy Incentives

Urges passage of Senate stimulus package to reduce energy costs for consumers and promote investment in new technologies and jobs

January 31, 2008

Washington, D.C. -- Senator Amy Klobuchar (D-MN) announced today that an economic stimulus package produced by the Senate Finance Committee contains important energy and efficiency tax credits designed to stimulate the expansion of renewable energy sources and said she will work to ensure its passage through the full Senate.

Klobuchar worked closely with Senator Maria Cantwell (D-WA), who serves on the Senate Finance Committee, to gain inclusion of the key provisions. Last week they sent a letter to Senate leadership urging that the renewable-energy incentives be included in the Senate’s stimulus package.

“While temporary measures to put money back into the hands of consumers is a start, we must also focus on long-term policies to spur economic growth and jobs long after the rebate checks are spent,” said Klobuchar.  “A strong package of tax incentives focused on clean energy will promote new jobs and business opportunities during a tough economy, while also moving our nation onto a cleaner, more secure energy path.”

 "The energy tax incentives fit the very definition of 'stimulus,’" Cantwell said. “These incentives will stimulate the economy, make progress on long-term challenges facing our country, and eventually put money back in consumers' pockets. By extending these tax credits, we will create jobs, increase revenue in the long run, and produce a more productive economy.  This is an opportunity to help sustain and move forward economic growth."

Klobuchar said she regards the Senate stimulus package as just a down payment on extending the renewable energy tax credits. The Senate package would extend the federal Production Tax Credit for renewable energy by one year. Klobuchar and Cantwell have called for extending the tax credit for five years so that investors and energy entrepreneurs have a stable, predictable investment horizon.

Last month Klobuchar announced plans to introduce the America REACTS bill, which would expand this effort by extending the Production Tax Credit for five years, set strong national renewable-electricity standards and extend a package of tax credits to help businesses and consumers improve the energy efficiency of their homes and commercial buildings.

In last week’s letter to Senate leadership, signed by 33 Senate colleagues, Cantwell and Klobuchar noted that renewable energy has been a bright spot in a slowing economy due in large part to tax credits established by Congress. 

In 2006 alone, renewable energy and energy efficiency industries created a total of 8.5 million jobs throughout the United States. However, these essential tax credits are set to expire at the end of 2008. Accordingly, Senators Cantwell and Klobuchar want to extend these tax credits, which include incentives for producing renewable energy, as well as, buying, selling, and manufacturing renewable and energy efficient products. 

Extension of the credits would promote the creation of new, green jobs and reduce the price of energy for American consumers.   The extension will also help ensure a stronger, more stable environment for new investments and ensure continued robust growth in a bright spot in an otherwise slowing economy. 

According to industry estimates, more than 100,000 Americans could be put to work in 2008 if clean energy production tax credits were extended in the first quarter of this year. 

Failure to extend these crucial incentives, however, could bring a halt promising business investment in 2008 and miss an opportunity to address high energy costs, a critical contributor to sinking consumer confidence and our nation’s long-term economic challenges. 


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