Wyden to address solar tax credit

Published 5:00 pm Thursday, October 29, 2015

After Congress passed a two-year budget deal early Friday morning, Oregon Sen. Ron Wyden said he is shifting focus to fixing tax breaks for renewable energy.

That work includes revisiting a potentially vital provision for the federal solar Investment Tax Credit, which would allow solar companies to qualify once they have started construction. As it stands, projects are only eligible for the credit if they are finished and in operation.

Wyden, who serves as the ranking democrat on the Senate Finance Committee, said it is extremely important to address the solar ITC, which was not included in a tax extenders bill that passed the committee in July.

However, Wyden said there is still time to get something done before the bill makes it onto the Senate floor. He expects negotiations will take place in the next few days.

“There is no question in my mind that important Eastern Oregon communities like Arlington would take a real hit if this doesn’t get resolved,” Wyden told the East Oregonian on Friday.

Columbia Energy Partners and PacifiCorp have proposed a 2,000-kilowatt solar project in Arlington. Gilliam County Judge Steve Shaffer spoke with Wyden about the importance of developing solar energy during the senator’s town hall visit Oct. 11 at Arlington City Hall.

“I’m not sure how long we are going to be able to rely on hydro as our main source (of power),” said Shaffer. “I think if we can just help (solar) get off the ground, we can get a return when we really need it.”

The solar ITC covers 30 percent of the cost for homes and businesses to install solar panels, though it is slated to start phasing out at the end of 2016. Bryan Miller, co-chair of the Alliance for Solar Choice, said the credits have revolutionized the rooftop solar industry since they were passed in 2006.

Using data from Bloomberg New Energy Finance, the Solar Energy Industries Association predicts the U.S. would lose more than 80,000 solar jobs in 2017 alone without the ITC.

Wyden said the solar industry is primed for growth and could be a major jobs producer for Oregon. He threw his support behind the credit, as well as the “commence construction” provision.

“I’m committed to getting that in, too,” he said.

In the long-term, Wyden is pushing for broader reform in clean energy tax incentives, taking 44 individual tax breaks now and boiling them down to three: incentives for clean electricity, clean transportation fuel and energy efficiency. That comes as part of a joint energy bill sponsored by Sens. Maria Cantwell, D-Washington, Harry Reid, D-Nevada, and Chuck Schumer, D-New York.

“This bill is built around the proposition that the law ought to reward clean energy with incentives that spark innovation in the private economy,” Wyden said.

Solar power remains relatively sparse in Oregon, accounting for just .02 percent of the state’s energy mix. Hydroelectricity is the largest power source, at 44.7 percent.

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Contact George Plaven at gplaven@eastoregonian.com or 541-966-0825.