Environmental Protection Agency Administrator Scott Pruitt said on Monday that he would “do away” with the wind industry’s production tax credit and the solar industry’s investment tax credit because the federal tax incentives stand in the way of utility companies making the best decisions about power generation.
“I would do away with these incentives that we give to wind and solar,” he told a crowd at a Kentucky Farm Bureau event.
“I’d let them stand on their own and compete against coal and natural gas and other sources, and let utilities make real-time market decisions on those types of things as opposed to being propped up by tax incentives and other types of credits that occur, both in the federal level and state level,” he continued.
However, Pruitt added that any move to end the credits would be a “policy decision” for Congress, “not an EPA decision.”
Both the wind and solar tax credits are set to expire at the end of 2019.
The Hill added:
Wind power producers can get a tax credit of 1.84 cents per kilowatt-hour produced, while companies that build solar power systems can get credits for 30 percent of their investments.
The tax incentives have wide support among Democrats and environmentalists, while the industries’ competitors and some Republicans oppose them.
They’ve been credited with helping bring about the recent booms in solar and wind power and the resulting decreases in emissions.
Coal, oil and natural gas companies already benefit from billions of dollars in tax credits.