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79–894 2013

CERTAIN EXPIRING TAX PROVISIONS 

HEARING 

BEFORE THE

SUBCOMMITTEE ON SELECT REVENUE MEASURES 

OF THE

COMMITTEE ON WAYS AND MEANS 

U.S. HOUSE OF REPRESENTATIVES 

ONE HUNDRED TWELFTH CONGRESS 

SECOND SESSION 

APRIL 26, 2012

Serial 112–SRM06 

Printed for the use of the Committee on Ways and Means 

( 


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COMMITTEE ON WAYS AND MEANS 

DAVE CAMP, Michigan, Chairman 

WALLY HERGER, California 

SAM JOHNSON, Texas 

KEVIN BRADY, Texas 

PAUL RYAN, Wisconsin 

DEVIN NUNES, California 

PATRICK J. TIBERI, Ohio 

GEOFF DAVIS, Kentucky 

DAVID G. REICHERT, Washington 

CHARLES W. BOUSTANY, JR., Louisiana 

PETER J. ROSKAM, Illinois 

JIM GERLACH, Pennsylvania 

TOM PRICE, Georgia 

VERN BUCHANAN, Florida 

ADRIAN SMITH, Nebraska 

AARON SCHOCK, Illinois 

LYNN JENKINS, Kansas 

ERIK PAULSEN, Minnesota 

KENNY MARCHANT, Texas 

RICK BERG, North Dakota 

DIANE BLACK, Tennessee 

TOM REED, New York 

SANDER M. LEVIN, Michigan 

CHARLES B. RANGEL, New York 

FORTNEY PETE STARK, California 

JIM MCDERMOTT, Washington 

JOHN LEWIS, Georgia 

RICHARD E. NEAL, Massachusetts 

XAVIER BECERRA, California 

LLOYD DOGGETT, Texas 

MIKE THOMPSON, California 

JOHN B. LARSON, Connecticut 

EARL BLUMENAUER, Oregon 

RON KIND, Wisconsin 

BILL PASCRELL, JR., New Jersey 

SHELLEY BERKLEY, Nevada 

JOSEPH CROWLEY, New York 

JENNIFER SAFAVIAN, Staff Director 

JANICE MAYS, Minority Chief Counsel 

SUBCOMMITTEE ON SELECT REVENUE MEASURES 

PATRICK J. TIBERI, Ohio, Chairman 

PETER J. ROSKAM, Illinois 

ERIK PAULSEN, Minnesota 

RICK BERG, North Dakota 

CHARLES W. BOUSTANY, JR., Louisiana 

KENNY MARCHANT, Texas 

JIM GERLACH, Pennsylvania 

RICHARD E. NEAL, Massachusetts 

MIKE THOMPSON, California 

JOHN B. LARSON, Connecticut 

SHELLEY BERKLEY, Nevada 


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C O N T E N T S 

Page 

Advisory of April 26, 2012 announcing the hearing ............................................. 2 

WITNESS LIST 

Representative Charles F. Bass ............................................................................. 35 

Representative Brian Bilbray ................................................................................. 27 

Representative Diane Black .................................................................................... 33 

Representative Earl Blumenauer ........................................................................... 65 

Representative Dan Boren ...................................................................................... 66 

Representative Kevin Brady ................................................................................... 18 

Representative Bruce L. Braley .............................................................................. 37 

Representative John Campbell ............................................................................... 36 

Representative Donna M. Christensen .................................................................. 56 

Representative Jim Costa ....................................................................................... 46 

Representative Geoff Davis ..................................................................................... 21 

Representative Theodore E. Deutch ....................................................................... 59 

Representative John Garamendi ............................................................................ 57 

Representative Michael G. Grimm ......................................................................... 40 

Representative Wally Herger .................................................................................. 24 

Representative Jaime Herrera Beutler .................................................................. 58 

Representative Lynn Jenkins ................................................................................. 19 

Representative Steve King ...................................................................................... 45 

Representative Tom Latham .................................................................................. 55 

Representative Jim McDermott .............................................................................. 48 

Representative James P. McGovern ....................................................................... 39 

Representative Pedro R. Pierluisi .......................................................................... 34 

Representative Mike Pompeo ................................................................................. 63 

Representative Tom Reed ....................................................................................... 62 

Representative David G. Reichert .......................................................................... 67 

Representative Aaron Schock ................................................................................. 31 

Representative Peter Welch .................................................................................... 24 

MEMBER SUBMISSIONS FOR THE RECORD 

Rep. Aaron Schock ................................................................................................... 95 

Rep. Bill Johnson ..................................................................................................... 97 

Rep. Bill Pascrell ..................................................................................................... 100 

Rep. Bill Shuster ...................................................................................................... 103 

Rep. Cedric Richmond ............................................................................................. 105 

Rep. Charles Boustany ............................................................................................ 107 

Rep. Cory Gardner ................................................................................................... 108 

Rep. Cynthia Lummis ............................................................................................. 110 

Rep. Dave Loebsack ................................................................................................. 112 

Rep. Dave Reichert .................................................................................................. 114 

Rep. David Dreier .................................................................................................... 124 

Rep. Devin Nunes .................................................................................................... 126 

Rep. Diane Black ..................................................................................................... 127 

Rep. Don Young ....................................................................................................... 131 

Rep. Donna Christensen ......................................................................................... 135 

Rep. Donna Edwards ............................................................................................... 138 

Rep. Earl Blumenauer 1 ......................................................................................... 140 

Rep. Earl Blumenauer 2 ......................................................................................... 143 

Rep. Ed Towns ......................................................................................................... 146 

Rep. Eleanor Holmes Norton .................................................................................. 147 

Rep. Gwen Moore ..................................................................................................... 148 

Rep. Henry Waxman ............................................................................................... 150 

Rep. Howard Berman .............................................................................................. 152 

Rep. Jerry Costello .................................................................................................. 154 


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Rep. Jim McDermott ............................................................................................... 155 

Rep. John Garamendi .............................................................................................. 158 

Rep. John Lewis ....................................................................................................... 161 

Rep. Joseph Crowley ................................................................................................ 163 

Rep. Kevin Brady ..................................................................................................... 169 

Rep. Michael Grimm 1 ............................................................................................ 178 

Rep. Michael Grimm 2 ............................................................................................ 184 

Rep. Michael Grimm 3 ............................................................................................ 188 

Rep. Mike Coffman .................................................................................................. 189 

Rep. Mike Thompson ............................................................................................... 191 

Rep. Niki Tsongas .................................................................................................... 193 

Rep. Pedro Pierluisi ................................................................................................. 195 

Rep. Ron Kind 1 ....................................................................................................... 197 

Rep. Ron Kind 2 ....................................................................................................... 199 

Rep. Sander Levin ................................................................................................... 202 

Rep. Scott Tipton ..................................................................................................... 204 

Rep. Shelley Berkley ............................................................................................... 206 

Rep. Steve King ....................................................................................................... 207 

Rep. Tom Latham .................................................................................................... 209 

Rep. Vern Buchanan ................................................................................................ 210 

Rep. Xavier Becerra ................................................................................................. 212 

Multiple Member Letter .......................................................................................... 214 

PUBLIC SUBMISSIONS FOR THE RECORD 

1603 Coalition, statement ....................................................................................... 218 

Aaron Funsfsinn, statement ................................................................................... 234 

Able Manufacturing & Assembly, statement ........................................................ 244 

Accelerated Wind Holdings, statement .................................................................. 245 

Active Financing Working Group, statement ........................................................ 246 

Aegis Wind, statement ............................................................................................ 249 

AG Resources LLC, statement ................................................................................ 250 

Air Conditioning Contractors of America (ACCA), Heating, Air-conditioning 

& Refrigeration Distributors International (HARDI), and Plumbing-Heating-Cooling Contractors Association (PHCC), statement .................................. 251 Alex Potier, statement ............................................................................................. 259 

Alexander Bester, statement .................................................................................. 260 

Alka Kapur, statement ............................................................................................ 261 

Alliance to Save Energy and 39 Other Groups and Organizations, statement .. 262 

American Cleaning Institute, statement ............................................................... 265 

American Cleaning Institute Appendix A, statement ........................................... 269 

American Cleaning Institute Appendix B, statement ........................................... 270 

American Cleaning Institute Appendix C, statement ........................................... 272 

American Council of Engineering Companies, statement .................................... 273 

American Council on Education, statement .......................................................... 275 

American Farm Bureau Federation, statement .................................................... 278 

American Institute of Architects, statement ......................................................... 282 

American Public Transportation Association, statement ..................................... 288 

American Wind Energy Association 1, statement ................................................. 291 

American Wind Energy Association 2, statement ................................................. 301 

American Wind Energy Association 3, statement ................................................. 307 

Amy Lindner and Michael Failing, statement ...................................................... 312 

Ann Summer, statement ......................................................................................... 313 

Anna Derengowski, statement ................................................................................ 314 

Anthony Kerrigan, statement ................................................................................. 315 

Arctic Slope Regional Corporation, statement ...................................................... 316 

Arion Energy, statement ......................................................................................... 319 

Associated Builders and Contractors, Inc., statement .......................................... 320 

Association of Fundraising Professionals, statement ........................................... 321 

AWS True Power, LLC, statement ......................................................................... 325 

Ayers Maritime Services, Inc., statement .............................................................. 327 

Baird Swanson, statement ...................................................................................... 328 

Ben Wright, statement ............................................................................................ 329 

Berman Economics, statement ............................................................................... 330 

Bill Hinton, statement ............................................................................................. 335 

Bingham Greenebaum Doll LLP, statement ......................................................... 336 

Biomass Power Association, statement .................................................................. 337 

Biotechnology Industry Organization, statement ................................................. 339 

Biotechnology Industry Organization Appendix A, statement ............................. 344 


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Biotechnology Industry Organization Appendix B, statement ............................. 345 

Biotechnology Industry Organization Appendix C, statement ............................. 347 

Bitsa Burger, statement .......................................................................................... 348 

Blattner Energy, Inc., statement ............................................................................ 349 

BlueDot Analytics, statement ................................................................................. 350 

Bob Pabodie, statement ........................................................................................... 352 

Bond Investment Group, statement ....................................................................... 353 

Boreas Renewables, LLC, statement ..................................................................... 354 

BP Wind Energy North America, Inc., statement ................................................ 355 

Brad Patterson, statement ...................................................................................... 358 

Brewers Association, statement ............................................................................. 359 

Brian Lang, statement ............................................................................................ 361 

Brad Foote Gear Works, statement ........................................................................ 362 

Built In Gains Coalition, statement ....................................................................... 363 

Burton Callicott, statement .................................................................................... 364 

Business Roundtable, statement ............................................................................ 365 

Carl Oerke Jr., statement ....................................................................................... 372 

Carol Buck, statement ............................................................................................. 373 

Carol Frigault, statement ....................................................................................... 374 

Carol Keck, statement ............................................................................................. 376 

Center for Fiscal Equity, statement ....................................................................... 377 

Chad Glinsky, statement ........................................................................................ 380 

Chaparral Stevedoring Co. of Texas, Inc., statement ........................................... 381 

Charlene Jordan, statement ................................................................................... 382 

Charles Newell, statement ...................................................................................... 383 

Chermac Energy Corporation, statement .............................................................. 384 

Chris McFarland, statement ................................................................................... 385 

Chris McKee, statement .......................................................................................... 386 

Christian Billson, statement ................................................................................... 387 

Christopher Whelpton, statement .......................................................................... 388 

Cielo Wind Services, Inc., statement ..................................................................... 389 

Class 4 Winds & Renewables, statement .............................................................. 390 

Clear Planet Energy, LLC, statement ................................................................... 391 

Coalition for E85, statement ................................................................................... 392 

Colata Harlan, statement ....................................................................................... 394 

Colleen Mertes, statement ...................................................................................... 395 

Columbia Gear Corporation, statement ................................................................. 396 

Community Reinvestment Fund, USA, statement ............................................... 397 

Compass Wind, LLC, statement ............................................................................. 403 

Competitive Energy Insight, Inc. , statement ....................................................... 404 

Concast, Inc., statement .......................................................................................... 405 

Concerned Citizens of West Antelope Valley, statement ..................................... 406 

Coulomb Technologies, Inc., statement .................................................................. 407 

Council of the North America Insulation Manufactures Association, statement .. 409 

Council on Michigan Foundations on Behalf of the Council on Foundations, 

statement .............................................................................................................. 411 

Creative Foam Corporation 1, statement .............................................................. 417 

Creative Foam Corporation 2, statement .............................................................. 418 

Creative Foam Corporation 3, statement .............................................................. 419 

Creative Foam Corporation 4, statement .............................................................. 420 

Creative Foam Corporation 5, statement .............................................................. 421 

Creative Foam Corporation 6, statement .............................................................. 422 

Creative Foam Corporation 7, statement .............................................................. 423 

Crow Nation, statement .......................................................................................... 424 

Daniel Jaynes, statement ........................................................................................ 432 

Danotek Motion Technologies, statement .............................................................. 433 

David Jordan, statement ......................................................................................... 434 

David Rivers, statement .......................................................................................... 435 

David Salvatore, statement .................................................................................... 436 

DC Association of Realtors, statement ................................................................... 437 

DC Mayor Vincent Gray, statement ....................................................................... 439 

Deborah Wagner, statement ................................................................................... 441 

Denali Energy, Inc., statement ............................................................................... 442 

Denver Center for the Performing Arts, statement .............................................. 443 

Diana Shaw, statement ........................................................................................... 444 

Distributed Wind Energy Association, statement ................................................. 445 

DNV KEMA Energy and Sustainability, statement ............................................. 449 

Donna Davidge, Peter Connely, and Candy Rupley, statement .......................... 452 


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Dorayne Peplinski, statement ................................................................................. 453 

Dorothy-Anne Johnson, statement ......................................................................... 454 

Douglas Lawson, statement .................................................................................... 455 

Dwayne Weismann, statement ............................................................................... 456 

E.ON Climate and Renewables 1, statement ........................................................ 457 

E.ON Climate and Renewables 2, statement ........................................................ 458 

Edward Kelly, statement ........................................................................................ 460 

Efficiency First, statement ...................................................................................... 461 

Efficiency First Appendix A, statement ................................................................. 463 

eFormative Options, LLC, statement ..................................................................... 477 

Electric Drive Transportation Association, statement .......................................... 478 

Element Power US, LLC, statement ...................................................................... 480 

Ellen Johnson-Fay, statement ................................................................................ 481 

Emily Hill, statement .............................................................................................. 482 

Emmett Carson, statement ..................................................................................... 483 

Energetx Composities, statement ........................................................................... 484 

Enterprise Community Partners, Inc., statement ................................................. 485 

enXco Inc., statement .............................................................................................. 489 

enXco Service Corporation, statement ................................................................... 491 

Eolian Renewable Energy, LLC, statement .......................................................... 492 

Eric Silverman, statement ...................................................................................... 493 

Evan Osler, statement ............................................................................................. 494 

Ewa Gruszczynski, statement ................................................................................. 495 

Feeding America, statement ................................................................................... 496 

Financial Executives International, statement ..................................................... 501 

Florida Community Loan Fund, Inc., statement .................................................. 505 

Floydada Economic Development Corporation, statement ................................... 514 

Foundation Windpower, statement ........................................................................ 515 

Fred Teal, Jr., statement ........................................................................................ 519 

Friends of Lana‘i, statement ................................................................................... 520 

Friends of Sand Canyon, statement ....................................................................... 521 

G&W Electric Company, statement ....................................................................... 522 

Gamesa Technology Corporation, statement ......................................................... 523 

Gamesa Wind, statement ........................................................................................ 526 

Gary Thompson, statement ..................................................................................... 527 

Gary Wyman, statement ......................................................................................... 529 

Geothermal Energy Association, statement .......................................................... 530 

Gerald K. Flakas, statement ................................................................................... 536 

Geronimo Wind Energy, statement ........................................................................ 537 

Gilford Wind Watch, statement .............................................................................. 538 

Giovanni Milanese, statement ................................................................................ 543 

Glen Bridges, statement .......................................................................................... 544 

Global Energy Investors, LLC, statement ............................................................. 545 

Governors’ Biofuels Coalition, statement .............................................................. 546 

Governors’ Wind Energy Coalition, statement ...................................................... 548 

Great Lakes Wind Truth, statement ...................................................................... 550 

Green Energy 911, LLC, statement ....................................................................... 553 

Greenline Renewables Inc., statement ................................................................... 554 

GreenLink Employment Solutions Inc., statement ............................................... 555 

Growth Energy, statement ...................................................................................... 556 

Hailo, LLC, statement ............................................................................................. 558 

Harvest the Wind Network, statement .................................................................. 559 

Heather P. Johnson, statement .............................................................................. 562 

Heidi Topp Brooks, statement ................................................................................ 563 

HK Payroll Services, Inc., statement ..................................................................... 564 

HKF Development, LLC, statement ....................................................................... 567 

Holland Contracting Corporation, statement ........................................................ 568 

Horn Wind, LLC, statement ................................................................................... 569 

Hugh Jarvis, statement ........................................................................................... 571 

Iberdrola Renewables, LLC, statement ................................................................. 572 

Illinois Wind Watch, statement .............................................................................. 576 

Information Technology Industry Counsel, statement ......................................... 584 

International Franchise Association, statement ................................................... 586 

IntegEner-W, statement .......................................................................................... 589 

Interstate Informed Citizens Coalition, Inc., statement ....................................... 590 

Invenergy, LLC 1, statement .................................................................................. 599 

Invenergy, LLC 2, statement .................................................................................. 600 

Invenergy, LLC 3, statement .................................................................................. 601 


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Invenergy, LLC 4, statement .................................................................................. 602 

Invenergy, LLC 5, statement .................................................................................. 603 

Invenergy, LLC 6, statement .................................................................................. 604 

Invenergy, LLC 7, statement .................................................................................. 606 

Investment Company Institute, statement ............................................................ 607 

Jacob Houser, statement ......................................................................................... 618 

Jacqueline Jenkins, statement ............................................................................... 620 

James Beckstrom, statement .................................................................................. 621 

James Nelson, statement ........................................................................................ 622 

Jane Offringa Rowan, statement ............................................................................ 623 

Janet and Alfonso Grillo, statement ...................................................................... 624 

Janet Hirschhorn, statement .................................................................................. 625 

Janice Hallman, statement ..................................................................................... 626 

Jay Cashman, Inc., statement ................................................................................ 627 

Jeff and Debi Feuerbacher, statement ................................................................... 629 

Jeremy Barker, statement ...................................................................................... 630 

The Jewish Federations of North America, statement ......................................... 631 

Jim Wiegand, statement ......................................................................................... 639 

Jody Purrington, statement .................................................................................... 652 

John E. Bollwinkel, statement ............................................................................... 653 

John Earl, statement ............................................................................................... 654 

John Guenst, statement .......................................................................................... 655 

John Irwin, statement ............................................................................................. 656 

John Schaumburg, statement ................................................................................. 657 

John Wilson, statement ........................................................................................... 658 

Josh Green, statement ............................................................................................ 659 

Judith Brown, statement ........................................................................................ 660 

Judy Watson, statement ......................................................................................... 661 

J.W. Pavlic, statement ............................................................................................. 662 

Katana Summit LLC, statement ............................................................................ 664 

Katheryne and Gerry Gall, statement ................................................................... 666 

Kathleen and Lucien Catania, statement .............................................................. 667 

Kathy McIntyre, statement ..................................................................................... 668 

Kathy Nobles, statement ......................................................................................... 669 

Kenneth Maurer, statement ................................................................................... 670 

Kent Greentree, statement ..................................................................................... 671 

Kent Spriggs, statement ......................................................................................... 672 

Kirman Broadbent, statement ................................................................................ 673 

KPG Investments, Inc., statement ......................................................................... 674 

Kristina Cliff-Evans, statement .............................................................................. 675 

Land Trust Alliance, statement .............................................................................. 676 

Large Public Power Council, statement ................................................................. 678 

Larry Frigault, statement ....................................................................................... 682 

Larry Rogero, statement ......................................................................................... 684 

Laura Jackson, statement ....................................................................................... 685 

Laura Kramer, statement ....................................................................................... 691 

LED Services Inc., statement ................................................................................. 692 

Lee Glover, statement ............................................................................................. 693 

Leeco Steel, LLC, statement ................................................................................... 694 

Leppinks, Inc., statement ........................................................................................ 695 

Leslie Weaver, statement ........................................................................................ 696 

LM Wind Power, statement .................................................................................... 698 

Local Initiatives Support Corporation, statement ................................................ 699 

Lois Grossman, statement ...................................................................................... 703 

LORD Corporation 1, statement ............................................................................. 704 

LORD Corporation 2, statement ............................................................................. 705 

LORD Corporation 3, statement ............................................................................. 706 

LORD Corporation 4, statement ............................................................................. 707 

LORD Corporation 5, statement ............................................................................. 708 

LORD Corporation 6, statement ............................................................................. 709 

LORD Corporation 7, statement ............................................................................. 710 

LORD Corporation 8, statement ............................................................................. 711 

LORD Corporation 9, statement ............................................................................. 712 

LORD Corporation 10, statement ........................................................................... 713 

LORD Corporation 11, statement ........................................................................... 714 

LORD Corporation 12, statement ........................................................................... 715 

LORD Corporation 13, statement ........................................................................... 716 

LORD Corporation 14, statement ........................................................................... 717 


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LORD Corporation 15, statement ........................................................................... 718 

LORD Corporation 16, statement ........................................................................... 719 

LORD Corporation 17, statement ........................................................................... 720 

LORD Corporation 18, statement ........................................................................... 721 

LORD Corporation 19, statement ........................................................................... 722 

LORD Corporation 20, statement ........................................................................... 723 

LORD Corporation 21, statement ........................................................................... 724 

Luisa Cox, statement ............................................................................................... 725 

Margaret Welke, statement .................................................................................... 726 

Maria Luisa Bernaldo de Quiroz, statement ......................................................... 727 

Mark DuRussel, statement ..................................................................................... 728 

Mark Feigenson, statement .................................................................................... 729 

Mark Weller, statement .......................................................................................... 730 

Marshall Hollander, statement .............................................................................. 731 

Mary Burns, statement ........................................................................................... 734 

Mary Button, statement .......................................................................................... 738 

Mary Evelyn Smith, statement .............................................................................. 739 

Marty Gardner, statement ...................................................................................... 740 

Matt and Megan Richards, statement ................................................................... 741 

Mattis Deutch, statement ....................................................................................... 742 

McGuire Consulting, statement .............................................................................. 743 

Meghan Kosowski, statement ................................................................................. 744 

Melissa McClennen-Davis, statement .................................................................... 745 

Meridian Way Wind Farm, statement ................................................................... 746 

Mesonika Piecuch, statement ................................................................................. 747 

Metal Construction Association, statement ........................................................... 748 

Michael Blum, statement ........................................................................................ 751 

Michael Geline, statement ...................................................................................... 752 

Michael Mulcahey, statement ................................................................................. 753 

Michael Shaw, statement ........................................................................................ 754 

Midwest Minnesota Community Development Corporation, statement ............. 755 

Mike Livermore, statement ..................................................................................... 757 

Mike Long, statement ............................................................................................. 758 

MJ Swierczynski, statement ................................................................................... 759 

Molly Ross, statement ............................................................................................. 762 

Mortenson Construction, statement ....................................................................... 763 

Mortgage Insurance Companies of America, statement ....................................... 764 

Nancy Carringer, statement ................................................................................... 769 

Nancy Taylor, statement ......................................................................................... 770 

National Association for the Self-Employed, statement ....................................... 775 

National Association of the Remodeling Industry, statement, ............................ 777 

National Association of Home Builders, statement .............................................. 779 

National Association of Realtors, statement ......................................................... 786 

National Automobile Dealers Association, statement .......................................... 794 

National Biodiesel Board, statement ..................................................................... 797 

National Cattlemen’s Beef Association, statement ............................................... 801 

National Development Council, statement ............................................................ 805 

National Education Association, statement ........................................................... 811 

National Electrical Manufacturers Association, statement .................................. 814 

National Employer Opportunity Network, statement .......................................... 817 

National Farmers Union, statement ...................................................................... 820 

National Federation of Independent Businesses, statement ................................ 822 

National Foreign Trade Council, statement .......................................................... 825 

National Grocers Association, statement ............................................................... 828 

National Hydropower Association, statement ....................................................... 832 

National Propane Gas Association, statement ...................................................... 836 

National Resources Defense Council, statement ................................................... 839 

National Restaurant Association, statement ......................................................... 841 

National Retail Foundation, statement ................................................................. 847 

National Rural Electric Cooperative Association, statement ............................... 851 

National Treasury Employees Union, statement .................................................. 859 

Neill Gibson, statement ........................................................................................... 862 

Neil Milani, statement ............................................................................................ 863 

New Markets Tax Credit Coalition, statement ..................................................... 864 

New Progressive Alliance, statement ..................................................................... 873 

NextEra Energy, Inc., statement ............................................................................ 874 

Nick Webb, statement ............................................................................................. 881 

Nissan North America, statement .......................................................................... 882 


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Nordex USA, Inc. 1, statement ............................................................................... 888 

Nordex USA, Inc. 2, statement ............................................................................... 889 

Nordex USA, Inc. 3, statement ............................................................................... 890 

Nordex USA, Inc. 4, statement ............................................................................... 891 

Nordex USA, Inc. 5, statement ............................................................................... 892 

Nordex USA, Inc. 6, statement ............................................................................... 893 

Nordex USA, Inc. 7, statement ............................................................................... 894 

Nordex USA, Inc. 8, statement ............................................................................... 895 

North Coast Energy Systems, statement ............................................................... 896 

Northern Laramie Range Alliance, statement ...................................................... 898 

Northstar Wind Towers, LLC 1, statement ........................................................... 902 

Northstar Wind Towers, LLC 2, statement ........................................................... 903 

Northwest Kidney Centers, statement ................................................................... 904 

Novogradac and Company, LLP, statement .......................................................... 907 

Ohio Association of Nonprofit Organizations, statement ..................................... 910 

Ohio Manufactured Homes Association, statement .............................................. 912 

Partnership for Job Creation, statement ............................................................... 913 

Partnership for Philanthropic Planning, statement ............................................. 916 

Patricia Christensen, statement ............................................................................. 918 

Patrick Callaghan, statement ................................................................................. 921 

Patrick Hagan, statement ....................................................................................... 922 

Patriot Renewables, LLC, statement ..................................................................... 923 

Pattern Energy Group, statement .......................................................................... 925 

Peden Harris, statement ......................................................................................... 927 

Pellet Fuels Institute, statement ............................................................................ 928 

Perry Black, statement ........................................................................................... 931 

Perry Callas, statement .......................................................................................... 932 

Peter Stanley Company, LLC, statement .............................................................. 933 

Plug Power, Inc., statement .................................................................................... 934 

PPG Industries, statement ...................................................................................... 940 

Proctor and Gamble, statement .............................................................................. 941 

Qualtek Mfg. Inc., statement .................................................................................. 954 

Quida Jacobs, statement ......................................................................................... 955 

R&D Credit Coalition, statement ........................................................................... 956 

Radian Guaranty Inc., statement ........................................................................... 961 

RailAmerica, Inc., statement .................................................................................. 965 

Raymond Randall, statement ................................................................................. 967 

Rebecca Tippens, statement .................................................................................... 968 

Rebuild America’s Schools, statement ................................................................... 970 

Reinhard Manfred Klaass, statement .................................................................... 971 

Reserve Energy Exploration Company, statement ............................................... 972 

Residential Energy Efficient Tax Credit Industry Coalition, statement ............. 973 

Retail Industry Leaders Association, statement ................................................... 980 

Robert Boyce, statement ......................................................................................... 983 

Robert Fenstermaker, statement ............................................................................ 984 

Robert Hall and Maureen McGee, statement ........................................................ 985 

Roberta Rothkin, statement .................................................................................... 986 

Roger Harrison, statement ...................................................................................... 987 

Russell Mead, statement ......................................................................................... 988 

Ruth Kneile, statement ........................................................................................... 990 

SafeWorks, LLC, statement .................................................................................... 991 

Sally Kaye, statement ............................................................................................. 992 

Sandra Wearne, statement ..................................................................................... 993 

Sandra Rogers, statement ....................................................................................... 994 

Save Our Scenic Hill Country Environment, Inc., statement .............................. 995 

Scott Synnestvedt, statement ................................................................................. 1000 

Scott Teresi, statement ........................................................................................... 1001 

Second Wind, statement .......................................................................................... 1002 

Sharon Stevenson, statement ................................................................................. 1004 

Shawnee McLemore, statement .............................................................................. 1005 

Sheila Salvatore, statement .................................................................................... 1006 

Sherrin Loyd, statement ......................................................................................... 1007 

Siemens Energy, Inc. 1, statement ......................................................................... 1008 

Siemens Energy, Inc. 2, statement ......................................................................... 1009 

Siemens Energy, Inc. 3, statement ......................................................................... 1010 

Siemens Energy, Inc. 4, statement ......................................................................... 1011 

Siemens Energy, Inc. 5, statement ......................................................................... 1012 

Sierra Club, Virginia Chapter, statement ............................................................. 1013 


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Silicon Valley Community Foundation, statement ............................................... 1014 

Silicon Valley Tax Directors Group, statement ..................................................... 1015 

Skylands Renewable Energy, LLC, statement ...................................................... 1017 

Smith NMTC Associates, LLC, statement ............................................................. 1019 

Stahl, Bernal & Davis, LLP, statement ................................................................. 1021 

Susan Steinhauser, statement ................................................................................ 1022 

Sustainable Energy Developments, Inc., statement ............................................. 1023 

Sustainable Strategies, statement .......................................................................... 1025 

Tara Truett, statement ........................................................................................... 1026 

Tawny Mackey, statement ...................................................................................... 1027 

Team Schierl Companies, statement ...................................................................... 1028 

Teresa Cameron, statement .................................................................................... 1029 

The Investment Company Institute, statement .................................................... 1030 

Theresa Ruscitti, statement .................................................................................... 1035 

ThermoCor, LLC, statement ................................................................................... 1036 

Thomas Grey, statement ......................................................................................... 1038 

Thomas Wayne Jackson, statement ....................................................................... 1039 

Thompson Engineering, statement ........................................................................ 1040 

Tierra Farm & Grain Co., statement ..................................................................... 1041 

Tim Kearney, statement ......................................................................................... 1042 

Timothy Corcoran, statement ................................................................................. 1043 

Tlaloc Tokuda, statement ........................................................................................ 1044 

Tom Hilgartner, statement ..................................................................................... 1046 

TransitCenter, Inc., statement ............................................................................... 1048 

Truck Renting and Leasing Association, statement ............................................. 1052 

TrueBlue, Inc., statement ....................................................................................... 1056 

Texas Society of Certified Public Accountants, statement ................................... 1060 

Union County Community Development Corporation, statement ....................... 1063 

Unity Foundation of La Porte County, statement ................................................ 1065 

Urban Green Energy Inc., statement ..................................................................... 1066 

U.S. Chamber of Commerce, statement ................................................................. 1067 

Utah Clean Energy, statement ............................................................................... 1075 

V. Brandt, statement ............................................................................................... 1076 

Various Citizens of California, statement ............................................................. 1077 

Various Citizens of Illinois, statement ................................................................... 1085 

Various Citizens of Indiana, statement ................................................................. 1091 

Various Citizens of Massachusetts, statement ...................................................... 1107 

Various Citizens of Maine, statement .................................................................... 1114 

Various Citizens of Nevada, statement .................................................................. 1118 

Various Citizens of New York, statement ............................................................. 1121 

Various Citizens of Ohio, statement ...................................................................... 1136 

Various Citizens of West Virginia, Virginia, Maryland, New Jersey, and North 

Carolina, statement ............................................................................................. 1149 

Various Citizens of Wisconsin, statement ............................................................. 1153 

VENTOWER Industries, statement ....................................................................... 1173 

Vermonters for Clean Environment, statement .................................................... 1174 

Vestas-American Wind Technology, Inc., statement ............................................. 1182 

Viejas Band of Kumeyaay Indians, statement ...................................................... 1186 

Vincent C. Grey, statement .................................................................................... 1189 

Warren Blesch, statement ....................................................................................... 1191 

Wharf and Dock Builders, Pile Drivers, and Divers Local Union #454, statement ...................................................................................................................... 1192

White County Economic Development Organization, statement ......................... 1199 

Whitley County Community Foundation, statement ............................................ 1200 

Wildlife Acoustics, Inc., statement ......................................................................... 1201 

Wind Clean Corp, statement .................................................................................. 1202 

Wind Energy America, Inc., statement .................................................................. 1204 

Wind Partners Finance, LLC, statement ............................................................... 1205 

WindGuard North America, Inc., statement ......................................................... 1207 

Window & Door Manufacturing Association, statement ...................................... 1208 

Winergy Drive Systems Corporation 1, statement ............................................... 1219 

Winergy Drive Systems Corporation 2, statement ............................................... 1222 

WOTC Solutions, LLC, statement .......................................................................... 1223 

YMCA of Greater Pittsburgh, statement ............................................................... 1225 

Zachary Nickerson, statement ................................................................................ 1227 

ZF Wind Power, LLC 1, statement ........................................................................ 1229 

ZF Wind Power, LLC 2, statement ........................................................................ 1230 


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(1) 

HEARING ON CERTAIN EXPIRING 

TAX PROVISIONS 

THURSDAY, APRIL 26, 2012 

U.S. HOUSE OF REPRESENTATIVES, 

COMMITTEE ON WAYS AND MEANS, 

WASHINGTON, DC. 

The Committee met, pursuant to notice, at 10:03 a.m. in Room 

1100, Longworth House Office Building, the Honorable Pat Tiberi 

[Chairman of the Committee] presiding. 

[The advisory of the hearing follows:] 


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ADVISORY 

FROM THE COMMITTEE ON WAYS AND MEANS 

Chairman Tiberi Announces Hearing on 

Certain Expiring Tax Provisions 

Thursday, April 26, 2012 

Congressman Pat Tiberi (R–OH), Chairman of the Subcommittee on Select Rev- enue Measures, today announced that the Subcommittee will hold a hearing on 

Member proposals related to certain tax provisions that either expired in 2011 or 

will expire in 2012 (also known as ‘‘tax extenders’’). The hearing will take place on Thursday, April 26, 2012, in Room 1100 of the Longworth House Office 

Building at 10:00 A.M. 

Oral testimony at this hearing will be limited to Members of the House of Rep- resentatives who, as of April 25, 2012, have either introduced or co-sponsored legislation related to tax extenders during the 112th Congress. However, any individual 

or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of 

the hearing. 

For purposes of this hearing, a ‘‘tax extender’’ is any tax provision: 

1. Extended in Title VII of the Tax Relief, Unemployment Insurance Reauthor- ization, and Job Creation Act of 2010 (Public Law No. 111–312; 

‘‘TRUIRJCA’’), or 

2. Expiring between the end of calendar year 2011 and the end of calendar year 

2012, other than any provision: 

—Addressed in Titles I through VI of TRUIRJCA, or 

—Related to a transportation trust fund. 

For purposes of oral testimony, ‘‘legislation related to tax extenders’’ means any measure introduced in the House that relates to the extension, modification, or termination of a tax extender. 

BACKGROUND: 

As part of TRUIRJCA—enacted into law on December 17, 2010—Congress ex- tended various expired and expiring tax provisions through December 31, 2011. 

Most of these provisions had expired on December 31, 2009, and were among those 

temporary provisions that have typically been extended numerous times over recent 

years as part of the annual package of ‘‘traditional tax extenders.’’ Those items include an array of tax provisions benefiting both individuals and businesses. In a few 

cases, TRUIRJCA modified some of these provisions, generally returning them to 

the form in which they existed prior to the American Recovery and Reinvestment 

Act of 2009 (Public Law No. 111–5). 

In addition, a number of provisions that were not addressed in TRUIRJCA either 

expired at the end of 2011 or expire during 2012. Some, like those related to transportation trust funds, typically are not viewed as tax extenders. Others, however, 

have been extended in past tax extenders legislation. 

In announcing the hearing, Chairman Tiberi said, ‘‘As Chairman Camp and I 

stated last month, the Ways and Means Committee is engaged in a process 

to review dozens of tax provisions that either expired last year or expire 

this year. This hearing provides a formal opportunity for the Subcommittee 

to hear from our House colleagues about the merits of extending—or not 

extending—many of these tax policies.’’ 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
3 

FOCUS OF THE HEARING: 

The hearing provides Members of Congress the opportunity to speak on behalf of 

specific tax proposals they have introduced or cosponsored in the 112th Congress related to the extension, modification, or termination of one or more tax extenders. 

The hearing will evaluate how these proposals would measure against key metrics 

such as cost, effectiveness, and job creation. 

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS: 

Please Note: Any person(s) and/or organization(s) wishing to submit written comments for the hearing record must follow the appropriate link on the hearing page 

of the Committee website and complete the informational forms. From the Committee homepage, http://waysandmeans.house.gov, select ‘‘Hearings.’’ Select the hearing for which you would like to submit, and click on the link entitled, ‘‘Click here 

to provide a submission for the record.’’ Once you have followed the online instructions, submit all requested information. ATTACH your submission as a Word document, in compliance with the formatting requirements listed below, by the close 

of business on Thursday, May 10, 2012. Finally, please note that due to the 

change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical 

problems, please call (202) 225–3625 or (202) 225–2610. 

FORMATTING REQUIREMENTS: 

The Committee relies on electronic submissions for printing the official hearing 

record. As always, submissions will be included in the record according to the discretion of the Committee. The Committee will not alter the content of your submission, 

but we reserve the right to format it according to our guidelines. Any submission 

provided to the Committee by a witness, any supplementary materials submitted for 

the printed record, and any written comments in response to a request for written 

comments must conform to the guidelines listed below. Any submission or supplementary item not in compliance with these guidelines will not be printed, but will 

be maintained in the Committee files for review and use by the Committee. 

1. All submissions and supplementary materials must be provided in Word format and MUST 

NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised 

that the Committee relies on electronic submissions for printing the official hearing record. 

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. 

Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material 

not meeting these specifications will be maintained in the Committee files for review and use 

by the Committee. 

3. All submissions must include a list of all clients, persons and/or organizations on whose 

behalf the witness appears. A supplemental sheet must accompany each submission listing the 

name, company, address, telephone, and fax numbers of each witness. 

The Committee seeks to make its facilities accessible to persons with disabilities. 

If you are in need of special accommodations, please call 202–225–1721 or 202–226– 

3411 TTD/TTY in advance of the event (four business days notice is requested). 

Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above. 

Note: All Committee advisories and news releases are available on the World 

Wide Web at http://www.waysandmeans.house.gov

f 

/. 

Chairman TIBERI. Good morning. Today we are going to deviate 

from standard practice a bit, and we are going to allow each member of the Subcommittee or those who are joining us from the Full 

Committee to make a five minute opening statement and submit 

a written statement for the record. 


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4 

We obviously are here today to talk about the extenders, those 

tax provisions that expired in 2011 or will expire in 2012. 

I welcome all of you, and I welcome Members of the Subcommittee and members of the Full Committee who will be joining 

us. 

I first want to commend our Chairman of the Full Committee, 

Dave Camp, for his leadership in working to overhaul the Tax 

Code. As he said, as some of you may remember, at the very first 

hearing that the Full Committee had at the beginning of this Congress, ‘‘Tax reform will be a long process.’’ 

In the meantime, we must continue to work our way through the 

Tax Code, and we have had over a dozen hearings at the Full Committee and Subcommittee in trying to do that. 

Unfortunately, the Tax Code is riddled with scores of provisions 

that have been enacted on a temporary basis over time. 

I use the word ‘‘riddled’’ not because I believe all these provisions 

are bad, because they certainly are not, but because while there are 

rare occasions when it makes sense to enact temporary tax provisions, such as during an economic downturn, most of the temporary 

provisions were made temporary not for policy reasons but for arcane Budget or Senate rules. 

I am reminded in the Spring when I go to my tax accountant 

how frustrating it is for many in the real world as to why there 

are so many temporary tax provisions. 

Making tax policy this way obviously wreaks havoc on the ability 

of families and business owners to plan for future choices with any 

certainty. 

With a few exceptions, temporary tax provisions that are worthy 

should be made permanent. Those that are not worthy should be 

terminated. 

That kind of certainty might not happen until we pass comprehensive tax reform, but in the meantime, today’s hearing provides us a formal opportunity for this Subcommittee to hear from 

our House colleagues about the merits of extending or maybe not 

extending many of these tax policies. 

For too long, Congress has simply rubber stamped the extenders 

package without any review, without any oversight that is charged 

by this Committee, of whether the individual provisions are effective, whether they create jobs, economic development, whether 

these provisions help us in any way, shape or form, and if they are 

upholding to the original intended purposes that were stated when 

they were passed. 

This hearing will help us gather information that we can properly evaluate in each and every one of the provisions on its own 

individual merit. 

Last year, Congressman Neal and I introduced H.R. 749, which 

would permanently extend the Subpart F exemption for active financing income. 

It is among, I believe, the most important recently expired provisions in our Tax Code that must be extended. It is essential to the 

competitiveness of our U.S. international companies seeking to do 

business around the world. 

I look forward to my colleagues’ testimony. I look forward to the 

opening statements for those of the panel who wish to give them, 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
5 

and I look forward to hearing more information, not only today but 

in the future about these tax provisions. 

I now yield to our Ranking Member, Mr. Neal, for his opening 

statement. 

Mr. NEAL. Thank you, Mr. Chairman. I am pleased you called 

this hearing to examine the 2011/2012 tax extenders. 

However, I should note my frustration that Congress has once 

again allowed so many of these important tax provisions to expire. 

Most are discouraged that we are now just examining the 2011 

extenders even though they expired several months ago. 

Important principles of tax policy are certainty and predictability. We need to remember these principles as we deal with the 

tax extenders. 

Many of the tax provisions that expired in 2011 are priorities of 

mine. For example, new markets tax credits and Build America 

bonds are very important. 

The new markets tax credit is designed to stimulate investment 

and economic growth in low income communities that are traditionally overlooked by conventional capital markets. We have seen the 

result in all of our districts. 

In Western Massachusetts, the local new markets tax credit’s 

successes include small businesses like the River Valley Market in 

Northampton and the Massachusetts Green High-Performance 

Computing Center in Holyoke. We need to extend new markets. 

Another provision that is very important that expired last year 

is the 15-year depreciation schedule for leasehold improvements, 

restaurant improvements and new construction, as well as retail 

improvements. 

Mama Iguanas is a restaurant that opened last year in Springfield and took advantage of this provision. 

We need to extend this 15-year depreciation provision and eliminate any tax law prejudices against retail store owners. 

It is also absolutely essential, as you have noted, Mr. Chairman, 

that active financing rules of Subpart F, which expired at the end 

of last year, be extended as well. 

This is an issue that the two of us have worked on and a bipartisan Majority of this Committee has co-sponsored to make the 

rules permanent. 

The active financing rules are not a special incentive, rather they 

allow U.S. banks, insurance companies and finance companies to 

apply the regular United States tax law allowing for the deferral 

of U.S. taxes on active foreign business income. 

Speaking of Subpart F, another important provision that we need 

to extend is the ‘‘look through rule.’’ The R&D tax credit is a huge 

priority for many of us in Massachusetts. 

In fact, Massachusetts is ranked third in the country in terms of 

the number of companies in the state reporting R&D activity. The 

R&D credit must be extended. 

Another extender that is important to Massachusetts is the 2012 

AMT patch. About 975,000 families in Massachusetts, including 

80,000 in my district in Springfield, will be hit with AMT if we do 

not enact a patch for 2012. 

A few additional extenders that are extremely important and 

should be continued are Section 25(c), which is a tax incentive for 


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the purchase of energy efficient improvements to homes and Section 181, which is effectively a limited form of bonus depreciation 

to encourage domestic film production and job creation. 

The extenders related to regulated investment companies or 

RICs, as they are called, as well, and the enhanced charitable deduction for contributions of inventory. 

In terms of the 2012 extenders, we also must extend Section 127, 

which allows an employee to exclude from income up to $5,250 per 

year for tuition assistance from their employer. 

Furthermore, the production tax credit for onshore wind and the 

investment tax credit for offshore wind are important as well, and 

I hope both will be extended. 

I am pleased you have called this hearing this morning and I 

look forward to the testimony that we are about to receive. 

Chairman TIBERI. Thank you, Mr. Neal. As I sit here listening 

to you, I cannot help but think if you and I could just go in a library and skip the rest of the House, the Senate and the administration, we could probably accomplish this pretty quickly. 

Mr. NEAL. I suspect based on what we are about to hear in the 

next four hours, you may well be right. 

[Laughter.] 

Chairman TIBERI. Thank you for your opening remarks. With 

that, I yield to Mr. Roskam for five minutes. 

Mr. ROSKAM. Thank you, Mr. Chairman. I think we have an incredible opportunity, Mr. Chairman. I thank you and Mr. Neal and 

the spirit with which you are approaching this, and Chairman 

Camp for his leadership in putting this together. 

There is an unbelievable opportunity that we have as a Committee, the committee of jurisdiction over a Tax Code that is wildly 

unpopular. The opportunity is this, if you look back at the work of 

this Committee over the past 18 months or so and you distill down 

the work, and this hearing is part of that, and you can distill it 

down into one single word, I think that word would be ‘‘competitiveness.’’ 

How do you create the United States as the most competitive tax 

jurisdiction in the world where we build upon all of these things 

that we have going for us in this country, a culture of creativity, 

intellectual property, and the list goes on and on, but we have a 

Tax Code that is underperforming and not serving us well. 

The question as you go through the detail and as the Committee 

goes through the detail of all these extenders is this, at what rate 

is it so attractive that companies and others are willing to walk 

away from an extender? 

That is an interesting proposition. At what rate is the rate low 

enough that you say you know what, I do not need that extender 

anymore, I will take the rate. 

That, I think, can be an animating theme today. 

The other question is there are some of these provisions where 

it is not a tax policy per se but there is some other foundational 

question that was built into that tax policy, and we need to re-examine that as well. 

Mr. Chairman, I appreciate the spirit with which you are approaching this. I think there is an opportunity here for not only the 

Congress to gain confidence with the level of scrutiny that the 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
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Committee is giving these things, but ultimately, for the country to 

gain confidence that the Committee is taking this up in a thoughtful way, and I yield back. 

Chairman TIBERI. Thank you, Mr. Roskam. Mr. Thompson is 

recognized for five minutes. 

Mr. THOMPSON of California. Thank you, Mr. Chairman. I, too, 

want to thank you for holding this hearing, Mr. Neal, for holding 

this hearing. I think it is incredibly important that we assess this 

issue and figure out how to bring some certainty to the Tax Code. 

There is a lot of talk about the need for certainty in the business 

community, and I can tell you that as it pertains to the Tax Code, 

I think this is most illustrative as to how important this issue is. 

You cannot make decisions in your personal life and your business life and your financial dealings if you have tax uncertainty. 

What we have right now is the ultimate in tax uncertainty. 

The President of the NFIB was on Bloomberg News and was 

asked what is Washington not hearing. He said they are not hearing about great uncertainty that small businesses feel out here 

today. 

I would argue that we are hearing it. We are just not doing anything about it. Again, this extender issue is most illustrative of 

that. 

Sometimes we pass them at the very last minute. We have been 

known to deal with these retroactively, and there is nothing that 

creates more uncertainty for a small business owner than that. We 

need to figure that out. 

I have a long list as everyone else does of ones I believe to be 

important. I will mention a couple of them and then I will put in 

my statement for the record the whole list. 

The production tax credit for wind expires at the end of December. We do not have until the end of December to deal with this. 

Business owners, manufacturers, energy developers, governments, community groups, they are already making decisions on 

this very important part of our energy future today. 

We are losing jobs today because wind energy development is not 

something that you wake up in the morning and decide, I think I 

will build a wind tower and site it this afternoon. 

You have to figure out where the wind is, what the wind trends 

are. You have to work with community groups, get permitted, raise 

capital, go to production for these things. You cannot do it in a few 

hours, a few days, or sometimes even a few years. The lead time 

for wind projects at a minimum is a year to 18 months. 

Yesterday I met with a group of combat veterans who were very, 

very outspoken on this issue, and for all the right reasons, including they know firsthand the cost of us being under the thumb of 

imported energy. 

We need to deal with this one up front quickly. 

R&D tax credits has already been mentioned today. I cannot tell 

you how often at home people ask me what is the future for the 

R&D tax credits. None of us can give a real answer to that. We can 

speculate. We cannot tell them with certainty how they should 

plan. 

That is not right. We should be doing everything we can to make 

sure we do R&D and we do it right here in this country. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
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Another issue that is extremely important to me is the conservation easement legislation that Mr. Gerlach and I are working on. 

That bill, since it has been passed in 2006, has done so much for 

land conservation, environmental protection, keeping people on the 

family farms. 

It is not just a rural issue. It spills over into the community, and 

nowhere is that more apparent than in New York City, where that 

city gets its water from the surrounding watershed that is under 

fire for development purposes, and through conservation easements, folks have been able to protect that property and keep that 

watershed open and make sure city folks get their water. 

It has the support of over 60 groups, everybody from Ducks Unlimited to Audubon to the Cattlemen’s Beef Association. It has 300 

co-authors on the bill that my friend Mr. Gerlach and I have. We 

ought to be pushing that through quickly. 

One that did not make the list that should be on the list, Mr. 

Chairman, is the 48(c) rule, advance manufacturing tax credit. 

That is so important. It provides a credit to businesses, manufacturing, clean energy technologies, right here in the United States. 

Like it or not, believe it or not, we are moving toward renewable 

energy, and we are moving there at albeit not the pace we need to, 

still faster than some are willing to admit we are. 

The worst thing that can possibly happen is that we get there 

and all the components that we used to get there were made in 

Germany or China or someplace else. 

Those are jobs that need to be right here in this country, and 

that is why this provision is so important. 

Again, thank you, and I look forward to hearing the rest of the 

testimony on this very, very important issue. 

Chairman TIBERI. I thank the gentleman from California for his 

testimony. It is always good to hear from the subcommittee’s official wine connoisseur. 

[Laughter.] 

Chairman TIBERI. With that, I will yield to the gentleman from 

up North, Mr. Paulsen. 

Mr. PAULSEN. Thank you, Mr. Chairman. Let me just also 

thank you and Ranking Member Neal also for holding the hearing 

and for the leadership of Chairman Camp. 

I do think it is important as we move forward with the goal of 

fundamental comprehensive tax reform that we are having these 

hearings to help look at what works and what does not work as a 

part of the Tax Code. 

I think these tax extenders certainly serve as an example of 

parts of the Code that for one reason or another do not work as 

well as they should either because the provisions are expired and 

they lose their intended use or they do not allow the certainty that 

our companies and businesses absolutely need, or because in fact 

some of these extenders have outlived their usefulness. 

It is my hope that as we move forward on comprehensive tax reform, we can move away from the need to have the extenders discussion every year altogether. 

I would like to highlight just a few of the extenders that I do 

think are worthy of extension or being made permanent as a part 

of more comprehensive reform. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
9 

First is the R&D tax credit, which was already mentioned. That 

is a provision that is strictly aimed at helping companies create 

new products so the United States can continue to be global leaders 

in innovation. 

Innovation is key to economic growth and in keeping our competitive edge. It is part of our DNA. It drives the entrepreneurial 

spirit and has made so many small and larger companies successful here in the United States, and we should work to incentivize 

these types of activities. 

The R&D tax credit has actually been allowed to expire 14 times 

since it was created in 1981. This undermines the effectiveness of 

the credit altogether. 

Some of us are co-sponsors, Mr. Chairman, as you know, of an 

effort to modernize and make permanent the research and development tax credit, which would help bring stability to companies that 

rely on the credit when they are trying to develop new products. 

I also want to note that as we look forward at the R&D credit, 

we need to make sure the credit is actually working as it is intended to work in the first place. 

I have heard from companies in Minnesota who say the IRS 

makes it so difficult to comply with through time and resources 

that it makes it very difficult for companies to actually take advantage of the credit. 

Similar uncertainty in depreciation tax provisions has also 

plagued the restaurant industry, which has faced inconsistency in 

their depreciation time line. 

Historically, the Code has allowed for improvements to depreciate over 39 years, but that is nowhere near the reality that these 

owners face. 

Congress created a provision that lowered that time line to 15 

years, but that provision has not been made permanent, and just 

like the R&D tax credit, has on occasion been allowed to expire as 

well. 

This uncertainty over the depreciation schedules led to 30 percent of restaurant owners putting projects on hold. Making this 

provision permanent or extending it for 15 years would absolutely 

help. 

I am also a co-sponsor of the new markets tax credit, which was 

mentioned earlier. This credit would provide that 39 percent sevenyear credit against Federal taxes for investment in economically 

distressed communities. 

These credits go to areas that otherwise would not see investment or benefit businesses located in low income communities. 

In my district alone, the credits have created about 150 jobs. The 

credit has been extended three times, and I believe it should be extended again. 

Finally, I just want to mention legislation that I have introduced 

and am sponsoring. It is regarding the mutual fund flow through. 

This again is a provision that should be extended and made permanent. 

There is no reason whatsoever that we should withhold funding 

from foreign persons who invest in mutual funds. We do not do it 

for other assets that are held directly. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
10 

Sadly, to get around this problem now we have seen foreign companies create mirror funds that mimic U.S. funds, and if we do not 

extend this provision, the U.S. will lose out altogether, driving investment overseas and taking the jobs with it. 

Mr. Chairman, I look forward to the rest of the testimony we will 

hear from some of our colleagues today in taking a deeper look at 

some of the provisions in the Tax Code as we move towards that 

reform which we need. 

Chairman TIBERI. I thank the gentleman. Dr. Boustany from 

Louisiana is recognized. 

Mr. BOUSTANY. Thank you, Mr. Chairman. I want to thank you 

and Ranking Member Neal for convening this important hearing. 

It is clearly overdue. 

I applaud the subcommittee’s efforts to substantively reform the 

extenders process. For far too long, Congress has advocated its 

oversight responsibilities haphazardly, extending temporary law 

from year to year without taking time to figure out what works, 

what does not work, what is the economic benefit, what is the impact on employment, and so forth. 

Congress must do better. A complete overhaul of our Tax Code 

is the real answer, and we are all working toward that goal, but 

until we get there, we have to make the extenders process workable to provide stability and certainty to U.S. taxpayers. 

Job creators, whether it is a small business owner or CEO of a 

Fortune 500 multinational, are paralyzed by the uncertainty coming out of Washington. 

We must provide a clear path forward for taxpayers in the short 

term and work to extend important tax provisions which help promote economic growth and strengthen American competitiveness. 

To help U.S. companies compete in the global marketplace, I 

have introduced legislation along with Mr. Kind to permanently extend the CFC look through provision. 

Enacted in 2006, CFC look through provides flexibility to American companies to deploy active business earnings among its foreign affiliates without immediate U.S. tax burdens. 

In short, it allows American firms to deploy capital where it is 

most needed, the same treatment enjoyed by their global competitors. 

CFC look through enjoys strong bipartisan support and helps ensure that American companies remain competitive on the global 

stage. 

Mr. Chairman, I ask unanimous consent to submit into the 

record a letter signed by myself, Mr. Kind, and several of our colleagues in support of this very important measure. 

[The prepared statement of The Honorable Charles Boustany follows:] 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
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Mr. BOUSTANY. I want to thank you again for convening this 

critical hearing. I am eager to hear the testimony today and to 

work with our colleagues to implement a workable extenders process to provide certainty to taxpayers, to promote economic growth, 

while we continue to work on our overall goal, which is to enact 

fundamental tax reform, creating a 21st Century Tax Code that we 

can be proud of, a Tax Code that promotes American competitiveness. 

I yield back. 


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13 

Chairman TIBERI. I thank the gentleman from Louisiana. The 

gentleman from the Commonwealth of Pennsylvania, Mr. Gerlach, 

is recognized for five minutes. 

Mr. GERLACH. Thank you, Mr. Chairman. I would like to thank 

you, Chairman Camp and Ranking Member Neal for your leadership in initiating a comprehensive review of these tax extenders, 

and for allowing all members to offer their views. 

There is no doubt about the necessity of transforming our Tax 

Code. We need to move from the current hodge-podge of complex 

rules that burden our small business owners and hamper our country’s competitiveness, to a more streamlined, more simple to understand and more dynamic system that unleashes innovation and ingenuity and encourages investment, hiring, and growth. 

While it is important to shred many provisions that snuff out opportunity and bury job creators under the ream after ream of paperwork, it is also paramount that we preserve those policies that 

have proven successful and allow individuals, owners of businesses 

and communities to thrive. 

Today, I would like to highlight three extenders that the farmers, 

property owners, and small business owners who I am fortunate to 

represent, believe are worthy of extending. 

The first is the conservation easement tax incentive. Before expiring at the end of 2011, modest income property owners, family 

farmers, and other land owners utilized this incentive to voluntarily protect more than 83,000 acres of critical farm land and open 

space in my District, according to the Montgomery Lands Trust. 

We now know that benefits derived from conservation easements 

extend well beyond the property lines of those participating properties. 

A study recently released in November of 2010 by Greenspace Alliance and the Delaware River Regional Planning Commission 

found that open space preservation in Bucks County, Chester 

County, Delaware County, Montgomery and Philadelphia County 

in southeastern Pennsylvania have added $16.3 billion to the region’s home values, support nearly 7,000 jobs annually in industries, including agriculture, tourism, hospitality, recreation, and 

open space management preservation, saved more than $130 million in water treatment and flood control costs, and through recreation at area parks and trails, avoids $1.3 billion in health related 

costs. 

H.R. 1964, the proposed Conservation Easement Incentive Act, 

which I have sponsored along with Congressman Mike Thompson, 

would make permanent the conservation easement tax credit. 

Earlier this year the legislation reached a significant milestone 

as the 300th co-sponsor signed on to this bill here in the House. 

It is my understanding that of the thousands of bills introduced 

this current session, fewer than ten have topped the 300 co-sponsor 

mark. 

We believe this legislation has generated widespread support because the conservation easement tax deduction works. 

Restaurant owners and other small and mid-sized business owners know that the same can be said for the second provision I 

would like to highlight, that is making permanent the 15-year deVerDate Mar 15 2010 09:14 Jun 07, 2013 Jkt 079894 PO 00000 Frm 00023 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\79894.XXX 79894

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preciation schedule for leasehold improvements, restaurant improvements, and new construction and retail improvements. 

The 15-year depreciation schedule more closely reflects economic 

realities for most U.S. restaurants and retailers. 

H.R. 1265, which we have introduced with Congressman Neal, 

would make the 15-year depreciation schedule permanent and provide much needed certainty for small and mid-sized businesses. 

We know that using more reasonable depreciation schedules has 

spurred tremendous economic activity according to the Bureau of 

Economic Analysis, and for every dollar spent in the construction 

industry, an additional $2.39 has been generated for spending in 

the rest of the economy. 

Moreover, for every dollar spent in the construction industry, 28 

U.S. jobs have been created in the broader economy. 

While unemployment is still unacceptably high, we need tax policies to encourage businesses to plan for and invest in new capital 

expenditures. 

We also need to encourage investment in our communities, some 

of which are struggling even before the most recent economic downturn. 

The new markets tax credit is designed to stimulate investment 

and economic growth in low income, underserved communities, that 

are often overlooked by conventional capital markets. 

According to the GAO, 88 percent of new market tax credit investors surveyed would not have made the investment in low income 

communities without the credit. 

According to the Treasury Department, every one dollar of foregone tax revenues under this tax credit program leverages $12 in 

private investment in distressed communities on a cost basis. 

I am pleased to be an original co-sponsor along with Chairman 

Tiberi, Congressman Neal, and Congressman Lewis of H.R. 2655, 

and this bill would extend the credit through 2016 at a level of $5 

billion per year in credit authority. 

In closing, I would like to submit that these three provisions 

meet three very critical needs. All three of these proposals have received overwhelming bipartisan support. 

They have the backing of individuals, businesses, and communities we represent because they benefit broad segments rather 

than narrow interests, and they have a proven track record of creating jobs, spurring investment and enhancing our quality of life 

in our communities. 

I look forward to working with my colleagues on enacting these 

solutions and extending these three important provisions. 

Thank you, Mr. Chairman. 

Chairman TIBERI. Right on time. Thank you, Mr. Gerlach. I 

now recognize the gentleman from Connecticut, Mr. Larson. 

Mr. LARSON. I thank the Chairman. I would like to thank 

Chairman Tiberi and would also like to thank Mr. Neal as well for 

their outstanding work with all the kudos and plaudits that have 

been laid at their feet this morning. 

I am going to focus on three primary areas, the CFC look 

through, new market tax credits, and Section 181 of the production 

credit. 


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I hope that our take away from this hearing is a clear understanding we must act responsibly to enact an extenders package, 

and I hope today’s hearing marks a very positive first step in that 

direction. 

Our country works best when we provide entrepreneurs and 

innovators the opportunity to thrive and create. That is why I believe we look at these tax extenders and also consider a comprehensive tax reform, that we need to be prioritizing initiatives that will 

help us achieve both of those goals. 

That is why I am proud to join Mr. Brady of Texas in introducing 

a permanent extension of the R&D tax credit, and I hope the Committee will look to that bill as a major priority as we continue forward with the extenders. 

Further, I hope the Committee will consider retaining at a minimum the spirit of R&D credit in comprehensive reform. 

We must ensure that America remains the center of innovation 

for years to come. Out innovating and out creating our competitors 

requires a Tax Code that provides the right incentives to companies to invest in the products and technologies that will help further our global economic leadership. 

In this respect, we must act on extending and enhancing tax 

credits that have already led to promising developments in the energy sector. 

Specifically, this means extending critical tax credits for natural 

gas, including the motor vehicle fuel credit, the fueling infrastructure credit in Section 30(c), and the alternative fuel vehicle credit 

in 30(b). 

In addition, I have long supported investments in fuel cell technology. That is why I believe the Committee should consider an extension and modification of the alternative vehicle refueling property tax credit. 

As an aside, Mr. Chairman, although not part of the extenders, 

the Natural Gas Act, where we have more than 186 signatures in 

the House, an important part of the discussion, both for energy 

independence and for providing jobs, I hope the Committee can also 

consider that. I realize it is not part of this issue. 

Another issue we have been working on for a number of years 

is a volunteer responder incentive tax credit which unfortunately 

lapsed at the end of 2010. 

This tax credit provided direct tax relief to volunteer emergency 

first responders, allowing communities to offer incentives to retain 

and recruit volunteer fire fighters without the benefit by it being 

diminished by Federal income tax liability. 

Volunteer fire fighters are essential to our nation’s safety and security as they comprise two-thirds of the estimated 1.2 million fire 

fighters in this country. 

We all remember those going up the stairs to meet the firewall 

and those that are coming down. 

I hope we can give them consideration as well as part of this extender package. 

Finally, I will end on an issue that is not necessarily as well a 

tax extender but vitally important to virtually numerous millions 

of Americans. 


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With many companies switching from defined benefit to defined 

contribution plans over the past decades, more individuals are facing the prospect of having to work longer and with less retirement 

savings than the previous generations. 

This combined with recent economic crisis presents an urgency 

for this Committee to ensure that we are creating the right incentives for people to save and ultimately prosper in their later years 

of life. 

I commend my good friends, Mr. Tiberi and Mr. Neal for recognizing the urgency of working on these issues, and I applaud the 

rest of the Committee for its efforts. 

Thank you. 

Chairman TIBERI. Thank you, Mr. Larson. I now yield to the 

gentleman who hails from the state with the lowest unemployment 

rate in our nation, Mr. Berg from North Dakota. 

Mr. BERG. Thank you, Mr. Chairman. I truly want to thank you, 

Mr. Chairman, and Ranking Member Neal for holding this important hearing today. 

The current Federal Tax Code is unnecessarily complex and burdensome that both individuals and businesses find frustrating, 

time consuming, and costly. 

This Committee has made a concerted effort to work towards 

comprehensive tax reform. Let me be clear in my belief, that the 

best thing we can do is simplify the Tax Code by lowering the tax 

rates and broadening the base. 

However, while we work to achieve this goal, it is critical that 

we understand the wide ranging group of taxpayers’ needs and 

what they need to do to make decisions right now relating to the 

current law, which has an immediate impact on our economy. 

That uncertainty is the most damaging thing that Washington 

can do to our families and small business. 

The extenders that we are discussing today affect a broad range 

of taxpayers, including associations, businesses, individuals, and 

non-profit and charitable organizations. 

Yet their temporary nature creates substantial uncertainty. This 

uncertainty has a negative impact on economic growth and job creation, and places families and businesses really in limbo year after 

year and these short term extensions are not helping our already 

struggling economy. 

We need a fair, predictable tax policy now. Under the current 

Tax Code, many of these extenders are important to U.S. jobs and 

the economy. It is important that we do not pick winners and losers outside the context of real comprehensive tax reform. 

For individuals and families, deductions for state and local taxes, 

mortgage insurance premiums, teacher expenses, tuition, adoption 

credits, and military housing allowances, along with extending and 

expanding charitable IRA distributions, among others, all are important within the current Tax Code. 

Businesses need certainty as well. In my senior year in college, 

I started a small business with a couple of friends. Over the next 

30 years, we grew that business one venture at a time. 

The best thing that Washington can do for small business is to 

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tainty. Then Washington needs to get out of the way and allow 

small business to do what they do best, grow and create jobs. 

The tax provisions for research and development, leasehold and 

retail improvements, depreciation production, and charitable contributions all serve important purposes for our businesses in the 

current Tax Code. 

In the context of tax reform, we can no longer remain the country with the highest employer tax rate alongside a complex worldwide system of additional taxation. 

Deferral, active financing, and CFC look through provisions are 

all important in the near term as we move closer to a comprehensive tax reform. 

Right now, North Dakota’s economy is on the right track, and 

our nation could learn a lot about North Dakota. There are some 

that think the North Dakota story is purely about oil. It is really 

about instituting pro-growth policies and unleashing the private 

sector. 

In fact, North Dakota truly is an ‘‘all the above’’ energy state. We 

have the only commercial scale coal gasification plant in the United 

States that manufactures gas. 

We are the leaders in carbon capture and storage. North Dakota 

exports over 150 million cubic feet per day of CO2 to Canada 

through a 205 mile pipeline. 

We mine and burn lignite to create electricity. North Dakota produces over 500,000 barrels of oil a day and North Dakota has significant wind power, alternative and biofuel infrastructure, and is 

a leader in hydrogen research. 

In addition to breaking our dependence on foreign oil, domestic 

fuel production and alternative energy solutions mean good American jobs. 

Preserving tax provisions such as the percentage depletion for oil 

and gas, intangible drilling costs, among others, are important to 

encouraging domestic energy production. 

While there may be a need to refine and update the current alternative and biofuels provisions, these provisions serve an important purpose in the current Tax Code. 

I also appreciate the testimony of our committee colleague, Mr. 

Reichert, regarding the production tax credit, and I associate myself with his remarks. 

This is not just rhetoric. In North Dakota, we have seen it work, 

and we have also seen what uncertainty can do to disrupt positive 

growth. 

For example, wind accounts for 15 percent of our electricity generation in our state and provides thousands of North Dakota jobs. 

There are more projects waiting to come on line, but all are 

stalled because of the uncertainty in the tax environment. 

In 2003, when North Dakota faced a deficit, we solved it by tightening our belt and encouraging private sector economic growth. 

This generated higher revenue, not higher tax rates. This reform 

ensured that the state would not change the rules on North Dakota 

families and small businesses when times got tough. North Dakotans knew that this tax stability would promote investment and innovation by our state’s businesses. 


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Now as was mentioned, we have the lowest unemployment rate 

in the nation, and our economy is booming. 

Our committee will remain committed to moving forward towards comprehensive tax reform, but until we are at the point 

where we have truly a willing President and an engaged Senate on 

this important issue, I feel strongly that we should not effectively 

raise taxes on small businesses and families in our current economy. 

Thank you, and I yield back. 

Chairman TIBERI. I thank the gentleman from North Dakota. 

While I ask the first panel of witnesses to make their way to the 

seats in front of us, I would like to make the audience aware if 

they are not already, that you have the ability to submit for the 

record any information that you would like on tax provisions that 

we are talking about today from the 2011 and 2012 extenders. 

You have traditionally ten business days to submit it to the Committee. For those who are viewing, you may as well. Anyone may 

do that. 

We are honored to have three members of the Full Committee 

with us for our first panel. Each will be recognized to give a summary of their written testimony before us, so let us begin with the 

gentleman from the Lone Star State, Mr. Brady. 

STATEMENT OF THE HONORABLE KEVIN BRADY, A 

REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS 

Mr. BRADY of Texas. Mr. Chairman, Mr. Neal, thank you very 

much for having us here today. I hope we will not engage a grilling 

from this Subcommittee as we give our testimony. 

Let me, one, thank you for holding this hearing for examining 

the extenders, the value, cost, and results of these extensions, and 

I do support strongly your efforts for fundamental tax reform. 

In 55 seconds, let me make two points. The first is that America 

is the world’s largest innovator, but we are falling behind our competitors. 

Our share of global R&D innovation has fallen dramatically, 

while China’s has increased four-fold. We used to rank among the 

top in R&D incentives in the world. Today, we rank 24th. 

Our companies are being courted very aggressively to move those 

R&D jobs overseas with strong incentives, and the technology innovations and high paying jobs that go with it. 

I encourage this Committee to not only extend the R&D tax credit, I and others believe it should be simplified, modernized, increased and made permanent for us to again—our goal ought to be 

to ensure America remains the strongest economy in the world for 

the next 100 years. Innovation is key to that. 

Second and final point is as long as we retain the current Tax 

Code—I and Jim McDermott lead a coalition of seven sales tax 

states that represent 62 million Americans, including in the State 

of Texas, as long as we provide deductions for state and local income taxes, we clearly out of fairness ought to do the same for 

state and local sales taxes. 

In Texas, it saves our taxpayers about $1.2 billion, but here is 

what is interesting, the tax bracket most likely to itemize and save 


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money are those making under $50,000 a year. This is middle class 

actually in a big way. 

Mr. Chairman, I conclude my remarks, and while it is not extender, I will tell you I still believe the death tax is the number 

one reason America family owned farms, family owned businesses 

are not passed down to their kids. That is an issue in a larger context at the end of the year that this Committee will be looking at 

as well. 

Thank you, Chairman. 

Chairman TIBERI. Thank you, Mr. Brady. 

With that, I will yield to the only CPA, I believe, on our committee, Ms. Jenkins from Kansas. 

STATEMENT OF THE HONORABLE LYNN JENKINS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF KANSAS 

Ms. JENKINS. Thank you, Chairman Tiberi, Ranking Member 

Neal, and Members of the Committee. 

I would refer to my notes but I cannot see them. I am wondering 

if there is a phone book or something that I can sit on. It is a very 

intimidating chair. 

[Laughter.] 

Ms. JENKINS. You cannot even see over the rail here. Regardless, I appreciate the opportunity to speak with you today. 

I would like to speak to you on behalf of Section 45(g), the short 

line freight railroad rehabilitation tax credit. 

This credit was first enacted in 2004 and has been extended 

twice, most recently through the end of 2011. 

America’s 550 short line railroads operate 50,000 miles of track, 

mostly in rural and small town America. These are small businesses run by hard working, creative entrepreneurs. 

Section 45(g) allows the small businesses to keep more of what 

they earn and use those resources for investment in tracks and 

bridges to move the American economy. 

These investments generate substantial benefits. Section 45(g) 

helps small companies grow and prosper. It allows the private sector and not a government bureaucrat to make the investment decisions necessary to serve rural businesses. 

Most small railroads do not have the in-house manpower for 

large capital projects, so these efforts create new jobs. Virtually all 

track materials are produced by American workers in American facilities. 

The investments create infrastructure that will generate public 

benefit for 40 years or longer, and they are assets that can never 

be moved out of the country. 

The ultimate beneficiaries are the thousands of railroad customers who depend on these local railroads to move their goods to 

market. 

An example from my own district in Kansas demonstrates a 

point replicated by 45(g) throughout rural America. 

A major national cement company needed to invest $500 million 

to expand in a plant in my district. However, this expansion could 

only be justified if competitive and reliable rail service was available. 


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The South Kansas and Oklahoma Railroad was in the right location but needed a significant upgrade. 

The 45(g) credit allowed SKO to make the necessary upgrades to 

meet that need. The cement company made that $500 million investment and today, it is producing and shipping millions of tons 

of cement by rail. 

They are the largest employer in that community and generate 

millions of dollars in economic activity. 

Creating jobs and generating economic growth is always a challenge, but it is especially challenging in rural America. 

Short line railroads are not the largest segment of the transportation industry. Their importance is not their size but their reach. 

There are short lines in 49 of the 50 states. They operate in 376 

congressional districts. They serve thousands of businesses who 

would otherwise be cut off from the national railroad network. 

As of today, H.R. 721 has attracted 225 co-sponsors, which I believe is one of the highest of any bills currently referred to the 

Ways and Means Committee. 

More than 50 percent of both the Republican and Democratic 

Committee members have signed on. 

My newest Republican colleagues have been among the most 

vocal and insisting that we carefully scrutinize the nation’s tax policy, and as of today, 62 of the 87 freshmen Republicans have cosponsored this bill. 

Mr. Chairman, it would be my preference to address comprehensive reform of the Tax Code, instead of taking a piecemeal approach, but obviously, we must address these expired tax provisions sooner than later. 

That being said, there is much disagreement about what tax reform should look like, but there is a growing bipartisan consensus 

that the Tax Code should encourage capital investment and small 

entrepreneurial American business. That is exactly what 45(g) 

does. 

Thank you. 

Chairman TIBERI. Before I recognize our colleague from the 

Commonwealth of Kentucky, I will recognize Mr. Neal. 

Mr. NEAL. I appreciate Ms. Jenkins’ comments because the 

short line railroad credit works well, not just in rural America, it 

works very well in urban America as well. 

It is a success story that has not been well reported. 

Ms. JENKINS. Thank you. Yes, I agree. 

Mr. NEAL. If people have a chance to discover what has happened in the economic downturn that we have, they are holding 

their own. 

Ms. JENKINS. Certainly. 

Chairman TIBERI. I thought you were going to make some sort 

of joke about short line and Ms. Jenkins. No, never mind. 

[Laughter.] 

Ms. JENKINS. Mr. Chairman, shame on you. 

Chairman TIBERI. Just kidding. I have told the staff to make 

sure we had a phone book for future hearings. Thank you so much. 

Great testimony, Ms. Jenkins. 

The gentleman from Kentucky is recognized. 


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STATEMENT OF THE HONORABLE GEOFF DAVIS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

KENTUCKY 

Mr. DAVIS of Kentucky. Thank you, Chairman Tiberi and Rank- ing Member Neal for the opportunity to testify about these critical 

provisions of our Tax Code. 

While I share the goal of broad-based tax reform, there are many preferences in our Code that are vital to America’s economic health 

and job creation, provisions such as Section 179, expensing, and 

100 percent bonus depreciation help cash flow for vital manufacturing and small business taxpayers. According to the National Federation of Independent Business, one in two businesses face regular cash flow problems. While not 

within the scope of this hearing, these provisions help manufacturers and small businesses smooth out the roller coaster of these cash 

flow issues. 

I hope as we continue to talk about extenders and tax reform, we 

keep these crucial provisions in mind. 

Another provision that helps manufacturers is the research and 

development tax credit, which is what I would like to discuss today. The R&D tax credit has spurred private sector investment and 

research by companies of all sizes across key industries. It is both 

bolstered America’s place as the world leader in innovation, fostering development of new products and life improving technologies. However, in recent years, many of our foreign competitors have invested more generously or in more generous R&D incentives in 

order to attract innovative companies and high skilled workers. As of 2009, the U.S. had dropped to 24th in research incentives 

among industrialized nations. This is only compounded by the fact 

that as of April 1 of this year, we had the highest corporate tax 

rate in the world. Higher tax rates and smaller incentives hurt our 

position as a world leader in technological breakthroughs. 

H.R. 942, the American Research and Competitiveness Act of 

2011, introduced by my friend from Texas, Chairman Kevin Brady, 

would simplify and strengthen the U.S. credit by increasing the alternative simplified credit from 14 to 20 percent and making it permanent, while providing an one year bridge for companies that still 

use the traditional credit. 

The certainty of a permanent R&D credit along with lower corporate rates would help to maintain America’s position as a leader 

in innovation. The R&D credit leads to job creation in America. 

A study by the Information Technology and Innovation Foundation estimates expanding the alternative simplified credit from 14 

to 20 percent would spur the creation of 162,000 jobs in the short 

term, with additional job creation in the long run. 

The credit was first adopted by Congress in 1981 and has been 

extended 14 times. It is time to give business the predictability 

they need to invest in next generation of invention or development 

by making the R&D tax credit permanent. 

Finally, I would like to mention a bill I introduced with Ranking 

Member Levin, H.R. 3729, which would expand and make permanent tax incentives for businesses to donate food inventory to charity. 


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Permanently extending this deduction is a necessary step in the 

continued fight against hunger in America, and I would urge your 

support. 

I thank the Chairman and Ranking Member for their time to testify and yield back. 

Chairman TIBERI. Thank you, Mr. Davis. I would like to thank 

the three of you. If you would not mind staying just a couple of 

extra minutes, I wanted to ask a quick question. 

Mr. Brady, you mentioned the R&D tax credit as well. You and 

I have talked in the past about Texas and the economy in Texas 

and the number of Fortune 500 companies/employers who have 

moved to Texas over the years, including to your metropolitan area. 

I know you have talked to many of those companies. Can you 

talk about some of your discussions with those companies with respect to the R&D tax credit? 

Mr. BRADY of Texas. Thanks, Chairman. I know it is important 

in Ohio, Massachusetts and Pennsylvania as well. 

We have been fortunate to have a number of businesses located 

in Texas, but what is interesting is they tell us how aggressively 

they are courted around the world, whether it is energy companies 

that do R&D or technology companies that do the same, our medical industry as well. 

These other countries know that when they bring the R&D, they 

bring good paying jobs and they have first claim on the patents and 

technology that go with them. 

With the stop and start, go/stop process, one year, two years at 

a time, in effect, we are not getting the full bang for the buck for 

R&D. We are buying a car but we are only driving it one month 

installment at a time. 

It can go farther and faster in innovation if we make it permanent and we simplify it, not looking backward to what a company 

has done on R&D, but looking forward and encouraging more of 

that. 

Like you, in Ohio, these companies—we want to keep that innovation in America. At the end of the day, that is what is going to 

drive our future economy. 

Chairman TIBERI. Thank you. Ms. Jenkins, obviously as a CPA, 

you know a little bit about the Tax Code. Mr. Roskam in his opening remarks talked about the complexity of the Tax Code. 

When you talk to other CPAs, not just in Kansas but around the 

country, what do you hear with respect to the complexity and how 

that might be inefficient for Americans and American businesses? 

Ms. JENKINS. I think that is the one thing that all political parties can agree on, that the Tax Code is too complex. We spend 18 

to $19 billion a year complying with the Tax Code. That ought to 

tell you something. 

In addition to just simplifying the Code, making it less costly to 

comply with, I think a second priority should be to certainly give 

them some certainty as it relates to the Tax Code as well. 

I know tax reform is on the horizon. It is not necessarily the 

topic of the day, but we need to work to that end, to not only give 

them a less complex Code to comply with but one they can do planning beyond a six to 12 month period. 


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Chairman TIBERI. Thank you. Following, Mr. Davis, just to expand on the provision that you and Mr. Levin are co-sponsoring together, from your perch as the Subcommittee Chairman here on 

the Ways and Means Committee, what have you seen in terms of 

the benefit of that extender that you have co-sponsored? 

Mr. DAVIS of Kentucky. The food donation credit is a great benefit because much food waste that happens in businesses can be 

handed off to frankly offset what could be an additional occurrence 

of taxpayer expense. 

There is a ready pool of willing providers both in distribution 

networks and also from restaurants to get that food out to homeless shelters and a number of other vendors, soup kitchens, et 

cetera, that can make a real difference in people’s lives, especially 

in that urgency transition. 

Chairman TIBERI. Food that may otherwise not be provided to 

shelters? 

Mr. DAVIS of Kentucky. That is correct. In all likelihood it would 

just be scraped. Often times I have been asked the question why 

would not the companies just take it down there anyway, but within their own operating rules, ironically, and other regulations that 

would impinge on that, there is a cost of transportation. There are 

other liabilities that are incurred. 

By having the credit, it can offset not only the base material 

costs but also the transportation and overhead that is necessary to 

get it to the locations, particularly when it is in bulk. 

Chairman TIBERI. Thank you. Thanks for your point. Mr. Brady 

is recognized for a thought. 

Mr. BRADY of Texas. Thirty seconds. To follow up on a point you 

have made continually about our uncompetitive Tax Code, not only 

do we risk the loss of R&D innovation in America, but our Tax 

Code, when these companies compete around the world, they are 

punished to bring home those profits. 

Many of them are stranded overseas, so not only do our global 

competitors have better incentives on R&D, they have access to 

ready capital to make those investments over there rather than the 

United States. 

You are pushing for a territorial system to remove those impediments, and I think this, too, will help the innovation. 

Chairman TIBERI. Great point. Thank you, Mr. Brady. Thank 

you, Ms. Jenkins. Thank you, Mr. Davis, for your time today. 

We are going to move to our second panel. I will call up, if they 

are here, Mr. Welch from Vermont, Mr. Herger from California, 

Mr. Bilbray from California, and Mr. Schrock from Illinois. 

It looks like we have two of the four here. We are not going to 

wait for the other two. We are just going to go ahead and begin. 

With that, I will recognize the gentleman from California, Chairman of the Health Subcommittee of Ways and Means, who will be 

missed next year, Mr. Herger. You are recognized. 


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STATEMENT OF THE HONORABLE WALLY HERGER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

CALIFORNIA 

Mr. HERGER. Thank you, Chairman Tiberi and Ranking Mem- ber Neal, and Committee members. Thank you for the opportunity 

to testify. As our committee works to reform the Tax Code, it is important 

to closely examine the merits of the various tax extender provisions. 

One tax extender I strongly support is the charitable IRA roll- over provision first enacted in 2006. This policy allows IRA owners 

to make tax free charitable contributions from their savings. Our country has a long and proud tradition of charitable giving and meeting human needs through voluntary, private generosity, 

rather than relying solely on the taxpayer funded programs. The tax deduction for charitable contribution recognizes the im- portance of this tradition and the charitable IRA rollover extends 

this favorable tax treatment to retirement savings. Maintaining incentives for charitable giving is especially impor- tant in tough economic times, and several organizations in my 

Northern California District have told me that this provision has 

been very helpful to them. I and Mr. Blumenauer have introduced a Public Good IRA Rollover Act to permanently extend the charitable IRA rollover. Our 

legislation would also make some important modifications such as 

allowing tax free rollover’s to donor advised funds which help to 

keep foundations focused on local community needs. 

Also, I would urge the Subcommittee to take a careful look at expiring energy tax incentives. 

I strongly support increasing American energy production, but 

some of these incentives have outlived their usefulness. In particular, the ethanol blenders tax credit, I feel, is a wasteful subsidy 

that distorts the economy. It should not be extended or replaced 

with new tax subsidies. 

To the extent that some tax incentives for renewable energy may 

be maintained, I believe we should aim to make them technologically neutral and avoid picking winners and losers. 

Currently, wind energy receives a production tax credit that is 

double the level of other renewable resources, such as biomass and 

hydropower. 

The Renewable Energy Parody Act, which I have introduced with 

Mr. Thompson, would equalize the PTC for all renewables, and I 

urge the Subcommittee to consider this reform. 

Thank you, Mr. Chairman and members. 

Chairman TIBERI. Thank you, Mr. Herger. Thank you for your 

leadership on the Committee. 

With that, I will yield to the gentleman from Vermont, our colleague, Mr. Welch. Welcome to the Ways and Means Committee. 

STATEMENT OF THE HONORABLE PETER WELCH, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

VERMONT 

Mr. WELCH. Quite a place. Good to be here. Thank you very 

much. 


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Chairman TIBERI. Glad to have you. 

Mr. WELCH. It is good to be here. Thank you so much for having 

this hearing. 

I wanted to talk about the production tax credit, known as the 

PTC. The enormous responsibility of this Committee on taxes is 

quite astonishing because we do more through the Tax Code than 

we actually do through the appropriations process. This is the place 

where major policy is made, something you all well know. 

This will have a real implication for us in Vermont, and I think 

in energy policy as well. 

My view on tax credits is in emerging industries where there is 

a decision that makes sense to try to give them a boost because it 

is good for the creation of jobs, the creation of industry, and 

strengthening in this case our local energy production, is worthwhile. 

As industries get more mature and they stand on their own, 

hopefully we would then wean them from tax credits. 

This production tax credit especially for wind is really, really essential to help this industry get on its feet and be a solid performer, and essentially give us a chance to compete against where 

a lot of wind technology is being exported, and that is to China. 

The way to do that, have a new energy future and create jobs 

here, is to maintain this production tax credit. 

Since 1980, that credit has helped bring down the cost of these 

wind generation facilities by 90 percent. The credit helps create 

that market that allows scale to bring down price and then create 

jobs right here. 

Wind has provided about 35 percent of all the new electricity 

generated in the last five years. Across the country, the wind industry has increased domestic manufacturing and created about 

75,000 jobs. 

In my home State of Vermont, renewable energy companies are 

producing clean and renewable energy and jobs. Right now, 

Vermont is generating 46 megawatts of energy, enough to power 

11,000 homes, over 200 megawatts of new Vermont projects are in 

development. 

Without these PTC credits, the projects are going to stall. That 

is just the fact. In fact, most likely, they will fail. 

We have a great company, one of them called NRG Systems in 

Hinesburg, provides wind developers, utilities and turbine manufacturers with the tools needed to measure wind, and because of 

the uncertainty about the PTC and uncertainty obviously concerns 

all of us, they report about a 50 percent drop in U.S. orders compared with last year. 

This PTC is really the life blood of making it economical to decide to do wind production. 

Every day that we allow the extension of the PTC to hang in 

limbo, it creates a lot of uncertainty. I think both sides recognize 

uncertainty is no friend of security and investment decisions. 

My request is that you include the PTC tax extender in the legislation and bring this to the Floor as soon as possible. 

I thank you very much for this opportunity. 

Chairman TIBERI. I thank you both. Would you mind subjecting 

yourselves to some questions if the panel has questions? 


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One that I have for both of you, if either of you would like to take 

a crack at it, we have a colleague testifying later today, this afternoon. He is going to testify, I believe, that we should actually eliminate all energy tax credits because he would argue—Mr. Bilbray, 

if you would like to have a seat, there is a seat right next to Mr. 

Herger, the California line there. 

He would argue that it raises the cost in the marketplace of energy altogether. 

How would either of you two, if you wish, respond to that? 

Mr. HERGER. I think virtually everyone agrees that we need to 

be moving to renewal energy as much as we can. We need to be 

doing all of the above. 

I think it is important that as we are looking at tax reform at 

a time when we are spending 40 cents out of every dollar’s borrowed money, we need to be carefully analyzing everything and 

particularly, as I mentioned in my testimony, I think it is important that we put renewable on a level playing field. Let that renewable which is the most efficient move forward. 

For example, I have a lot of bio renewable in my District that 

has tax incentives half the degree as say wind would have. Same 

way with hydro, which we have a lot of hydro in our area. 

I think again this Committee and the Congress should be looking 

at what is the most efficient so the taxpayer gets the most for their 

dollar both through incentives and other ways. 

That would be my request. 

Mr. WELCH. That is a central question. My view on it is this, 

that ideally, we would have a partnership between private industry, entrepreneurs, and to some extent, the U.S. Congress with 

policies that facilitate the creation of jobs and encourage and facilitate the success of emerging technologies. 

We are in a competitive global market. Other countries do have 

public policies that have a significant impact on the ability of their 

companies to get an industry started, get it to scale, where you can 

start bringing down costs and make it affordable. 

My view is that Congress cannot take a pass and not actively decide and self-consciously decide about where in fact we want to 

have a public policy that is going to help an emerging industry, because if we sit on our hands and we do not do anything, then China 

is going to move ahead, Brazil is going to move ahead, and we are 

going to find that they get the jobs and we do not. 

The difficulty is that to the extent you do a tax credit that does 

provide a competitive opportunity or advantage for the industry 

that has received that, others may complain. 

We have to work that out here. Doing nothing and just saying 

hey, it is hands off, means our competitors are going to move 

ahead. 

I see this as an important function of this Committee. We all 

know what the problems can be, that some of these tax credits over 

live their useful life, like for instance, I agree with Mr. Herger 

about ethanol, but to do nothing is to allow the other side and our 

competitors to move ahead. 

Thank you. 

Chairman TIBERI. Thank you. Mr. Neal. 


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Mr. NEAL. Thank you, Mr. Chairman. I think the nexus between 

Mr. Welch and Mr. Herger’s commentaries is very important because one of the most under reported success stories in America 

today is the fact that we are currently using two million barrels of 

oil less than we were. 

Mr. HERGER. Right. 

Mr. NEAL. It is wild. What is going to happen over the next few 

years is even more extraordinary. I think we all want to get to the 

same corner of the room, whether it is from this angle or that 

angle. 

There is also an important point, I think, that has been made 

here, as we transition away from less dependence on fossil fuels, 

but getting there also means that during this transition stage, we 

are going to need the help of the Tax Code because it does create 

behaviors and outcomes that I think in this instance are very desirable. 

As Mr. Welch suggested, there will come a time when they can 

be ended, but in the short run, in order to keep them going, we are 

going to need those preferences. 

Chairman TIBERI. Thank you, gentlemen. Mr. Bilbray, you are 

recognized. 

STATEMENT OF THE HONORABLE BRIAN BILBRAY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

CALIFORNIA 

Mr. BILBRAY. Thank you, Mr. Chairman, Members of the Committee. 

I wanted to address 1149. It is a bipartisan bill that basically 

says that when you have one fuel like cellulosic ethanol that gets 

a tax credit, and then you have another fuel that is algae based 

fuel, you have one fuel that has only 70 percent of the energy content of regular gasoline, the other fuel has 100 percent of the energy capacity of gasoline, you have one fuel that is not compatible 

with refinery and cannot be exchanged one for one in a refinery situation, you have another that is compatible. 

You could have one-half of one percent or you have 99 percent 

of your fuel system that could be algae produced, no difference in 

production. 

When you have a situation where you have one fuel like ethanol, 

cellulosic ethanol, which has air emission problems but algae has 

none of those air pollution problems, why in the world would the 

Federal Government have a Tax Code that says that the one fuel 

with less performance and less environmental benefit would have 

the benefit, and the other fuel that does not depend on different 

technologies, in fact, does not even depend on the use of fresh 

water, can be grown in salt water, why would you not give that tax 

equity along with cellulosic ethanol? 

This is where we are trying to get our Tax Code to reflect good 

science, not inappropriate politics. 

All we are asking on this issue is that when you are looking at 

this mixture, if you want to talk about true green fuels, true fuels 

that can actually in the long run help to not only supplement but 

replace to a large degree over a long period of time, granted, the 

existence of fossil fuels as we know it today, then why would not 


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our Tax Code reflect that strategy by saying that algae based fuel 

should get the same tax benefits as cellulosic. 

I think when we get down to it, this is one place where Republicans and Democrats should agree that common sense, good 

science, and responsible political guidance says algae based fuels 

should get the same, at least the same, Mr. Chairman, seeing that 

it is 30 percent more energy per gallon. 

Even if you give it equity, you are still short changing algae 30 

percent when it comes to how much energy the consumer gets out 

of it. 

I think that Tax Code should at least be equal, if not question 

the logic that maybe we ought to go to a BTU based credit somewhere in the future that reflects true energy that the consumer is 

receiving and the country is getting the benefit from. 

I would yield back my time at this time, Mr. Chairman. 

Chairman TIBERI. Thank you, Mr. Bilbray. I will ask you the 

same question that I asked the other two gentlemen with respect 

to energy tax credits. 

What is your view that some of our colleagues may have that we 

should eliminate all the extenders with respect to energy tax credits? What would you say to that? 

Mr. BILBRAY. Well, I think that is a legitimate argument to be 

held at this time. I think that in all fairness, you need to choose 

either to be engaged in the activity, trying to give an incentive, but 

if you do that, the incentive should reflect reality not politics. 

If we are going to retreat from having tax incentives to try to encourage this type of production, where in the United States we 

have companies in the United States today that are actively engaged in algae production, including many that are under contract 

to the Federal Government for jet fuel, something that ethanol cannot do, I think you need to choose one or the other. 

If you choose to be engaged in the encouragement of the production of so-called ‘‘green fuels/renewables,’’ then it should reflect the 

science, not the politics. This bill basically does that. 

Chairman TIBERI. Thank you. Mr. Neal. 

Mr. NEAL. Mr. Bilbray, would you argue then that we should 

truncate these initiatives immediately right now, get away from 

them? 

Mr. BILBRAY. I would prefer not to. I think there are some opportunities there, but I think the credibility, Mr. Neal, Congressman, of the program has been severely hampered by what basically 

appears to be Congress picking winners and losers based on political agenda’s or misconceptions of environmental benefits. 

I was a member of the Air Resources Board for six years. I was 

on an Air District for ten. I think you will agree, nobody is more 

hard core about environmental stuff than the California Air Resources Board. 

The policies and the politics in Washington did not reflect the realities that I learned in all those years, 16 years of working on environmental and clean air strategies. 

I think we need to go back, if we are going to maintain this policy, it needs to be based on good science, not based on back room 

politics. Right now, it appears to those of us involved in the enviVerDate Mar 15 2010 09:57 Jun 07, 2013 Jkt 079894 PO 00000 Frm 00038 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\79894.XXX 79894

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ronment that it is a misconception or it was a conscious—I think 

it was a misconception. 

I think it was an admission through ignorance, not through intention. That is not the perception you get when you are in California. 

Mr. NEAL. Let me pursue this. Are we suggesting that, for example, as President Obama says, ‘‘all of the above,’’ a very integrated approach to energy independence, are we suggesting that 

you could build a nuclear power plant without Government guarantees? 

Mr. BILBRAY. First of all, let me just say quite clearly, if you 

had the Federal Government streamline the procedures and take 

a more positive attitude of going to next generation nuclear, literally be active. 

In fact, Mr. Neal, I can tell you right now as a member of the 

Energy and Commerce Committee, you are seeing this Administration working within the United States Navy that is becoming very 

aggressive at doing exactly that. 

We have been able to show that there are third generation nuclear that is not only safe but much more cost effective, much lower 

problem, you are going to see much less of those guarantees. 

The barriers to nuclear power are not scientific. They are political and they are regulatory. I say that as a former regulator. 

Mr. NEAL. If we are talking about the present tense, it would 

be hard to draw the investor class to nuclear power without some 

sort of Government guarantee. 

Mr. BILBRAY. Because of the regulation and obstructionism, 30 

years of obstruction, before you can get something on line. 

That is why it is easier to build a natural gas power plant than 

a nuclear power plant, although over long term, even as a proponent of natural gas as I am, long term, stationary sources such 

as natural gas plants should be the last choice of an environmental 

strategy not the first choice. 

Mr. NEAL. Whether one supports or opposes the use of nuclear 

power, and to acknowledge the apprehension that the American 

people feel about it at this time, would almost guarantee that you 

could not go forward without those Government—— 

Mr. BILBRAY. Because of the misconceptions and the political 

agenda’s that are tied to it. To say that clearly as somebody that 

would tell you is working on stuff like greenhouse gases, we do not 

embrace some of this technology as the U.N. Council on Climate 

Change said, who got the Nobel Peace Prize along with Vice President Gore, you have to embrace it and have a robust expansion of 

nuclear power if we are going to address issues such as clean air 

and climate change. 

That is the kind of reality we run into that there is not compatible politics, but our politics should reflect the science, not the political pressure at the moment. 

Mr. NEAL. There are notable uses of incentives that draw people 

to making investments that will not return—— 

Mr. BILBRAY. I wholly agree. In fact, we are actively engaged 

right now through the budget process of contracting with people to 

develop alternative energy sources and to develop safer forms and 

more efficient forms of nuclear power. 


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We are engaged in it one way or the other through the budget 

process, either directly through contracting or indirectly through 

tax incentives. 

Mr. NEAL. Reducing the carbon footprints, entirely desirable. 

Moving away from fossils is a good idea. Certainly, I think everybody, given what has happened in Iraq and the Hormuz Straits 

right now, would agree that the dependence we still have on foreign oil is a direct threat to the security of many of our young men 

and women who serve us admirably every day. 

Mr. BILBRAY. Mr. Ranking Member, let me say this quite clearly as somebody who was a regulator more than I was a congressman, how many times have you heard we need a Manhattan 

Project for energy independence? 

Let me assure you as a regulator, the Manhattan Project would 

not be legal under today’s laws. You could not legally even site the 

base in New Mexico within the boundaries that we did in World 

War II. 

We have to make it legal, and one of the things I would say to 

you as a member of the other side, Energy and Commerce, as a 

regulator and somebody who is very environmentally involved, I 

see that those of us in Energy and Commerce need to be aggressive 

about standing up and making sure our regulations reflect a good 

outcome rather than politics, but I want the Taxation Department 

to do the same thing. 

Mr. NEAL. This is a worthwhile conversation. One of the reasons 

we are less dependent on foreign oil right now by almost two million barrels a day is because the Government stepped forward to 

create greater requirements for more energy efficiency with many 

of the household appliances that we use today. 

Would you agree with that? 

Mr. BILBRAY. Well, I agree energy efficiency across the board 

has been probably one of the most cost effective benefits we can do, 

but it has its limits, as long as you know. 

It is sort of the low lying fruit when we get into it. It is always 

the most cost effective because it is low lying. 

Mr. NEAL. The point that I am raising is that there is general 

agreement on reducing the carbon footprint and there are a series 

of steps that the Government might incent to help get us there. 

Mr. BILBRAY. I agree with that. Remember, too, at the same 

time as we talked about changing light bulbs, if we had allowed 

some environmental health departments to say because of mercury 

content, we are not going to allow those kinds of light bulbs, that 

whole strategy could have been blocked by Government regulation. 

That is the kind of thing we see a lot of in other points. Thank 

God it did not happen there. It is a lot of issues. 

My biggest concern is why reduce ten percent of electricity when 

this plant is burning coal, Mr. Ranking Member, and the fact is 

when we have the technology today that could totally eliminate the 

greenhouse gas emissions caused by our electricity here. 

We have taken the easy part, but we have not taken on tough. 

We are still buying coal fired electricity for the Capitol of the 

United States, and as a Californian, you would go to prison for 

doing that. 


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Mr. NEAL. If you are in Washington State, you would agree that 

for the coal ash that is traveling through Seattle and through that 

state now, that has created its own uproar. 

Mr. BILBRAY. That is a whole different issue. I do not think you 

want to take the heat, and we are going to address issues that 

when we stop coal—let me be frank with you. 

My attitude is clean coal is as logical as safe cigarettes. That is 

a Californian perception. You know how we feel about both of 

those. 

The fact is, Mr. Chairman, we all love railroads. We love the efficiency of them. We love the environmental benefit of them. As soon 

as we stop shipping coal in railroads, there is a whole new crisis 

that we are going to be addressing, but that is part of being aggressive and doing the right thing. 

Sometimes there are real problems unforeseen that we are going 

to have to address. 

I appreciate the chance to be able to talk about your part of the 

deal, and that is make our Tax Code fair, equal, and rational, and 

right now, it is not. 

Chairman TIBERI. Who says taxes are not fun? This was very 

entertaining, Mr. Ranking Member. 

I will say one point before I recognize the gentleman from Illinois. One other issue has driven down consumption, and that is the 

economy. 

Mr. BILBRAY. Absolutely. 

Chairman TIBERI. I know a lot of folks who are not driving as 

much, not traveling as much because of the economy. 

Thank you, Mr. Bilbray. 

Mr. Schock, you are recognized. 

STATEMENT OF THE HONORABLE AARON SCHOCK, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS 

Mr. SCHOCK. Thank you, Mr. Chairman, and thank you, Ranking Member Neal. It is a pleasure to be before our committee to 

testify. 

We all know that this Committee is undertaking the necessary 

task of reforming our current convoluted Tax Code, and in this 

process, we have held over 20 hearings looking at ways to reform 

and make less burdensome different parts of the Code. 

Turning 70,000 pages into a manageable, simplified Tax Code 

that is economically beneficial for both individuals and job creators, 

does not happen overnight. 

While great strides have been made in the last 16 months, more 

work remains to be done. 

In the meantime, as this Committee continues working towards 

our shared goal of lowering the rates and broadening the base, it 

is important that we give employers and individuals the certainty 

that their taxes will not increase by over $500 billion in the short 

term. 

That is the topic which brings us here today. Many of the low 

tax provisions which expired last year or will at the end of this 

year serve a specific economic purpose and create jobs by keeping 

taxes low on both individuals and employers. 


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In reality, many of these ‘‘extenders’’ are patches put in place to 

prevent tax increases from taking effect until this Committee can 

finish its work on comprehensive tax reform. 

Through tax reform, we hope to no longer remain the country 

with the highest employer tax rate in a worldwide system of additional taxation. 

U.S. employers are forced to compete in a global economy, and 

important tax extenders which give them that temporary patch to 

compete, things like deferral, active financing, and CFC look 

through, are all slated to expire. 

Extension of these provisions and others give this Committee the 

necessary time to rewrite the underlying rules of the game, a game 

quite frankly we are losing right now to our foreign competitors. 

Some will say that the only economic effect of extending expiring 

tax provisions is a reduction in revenue to the Government. This 

argument sorely understates the benefit and economic growth 

which is derived from these low tax mechanisms. 

I have taken a leadership role in the work opportunity tax credit, 

which provides a reduction in tax liability for private sector employers who hire employees off of public assistance. 

Most recently, this Congress expanded this program to include 

unemployed veterans. 

However, without the core work opportunity program, employers 

will be less willing to participate in the new veterans’ hiring credit. 

It is hard for employers to justify maintaining that costly infrastructure of a work opportunity program which will now be onetenth the size of the core work opportunity program, unless it is 

extended. 

For an average tax credit of $1,000 through WOTC, it saves the 

Federal Government $5,000 in public assistance payments in just 

a year, nearly an equal amount in the state contributions to public 

assistance as well is saved. 

In my home State of Illinois, which has one of the worse budget 

shortfalls in the country, this extension is extremely important. 

Also of vital importance is the current biodiesel tax incentive, 

which has been on the books since 2004. 

Until we can reduce the farmers’ tax burdens below the current 

levels, I favor extending this policy which supports 39,000 jobs and 

returns more than $600 million per year in tax revenue to the Federal, state and local governments. 

As I have told our Chairman, I will be the first in line to help 

reduce the 70,000 pages of our Tax Code to a slim volume which 

could fit in any of our pockets. 

The bulk of these pages will become unnecessary with a lower 

and fairer tax rate for individuals and employers, a Code that helps 

taxpayers keep more of their hard earned money and employers 

more of theirs to invest, expand, grow and hire here in the U.S. 

Until we are at that point where we have truly a willing President and an engaged Senate, it is of vital importance that we prevent looming tax increases on business and individuals, and we do 

so now. 

Our President not too long ago said and I quote ‘‘You do not raise 

taxes in a recession, which is why we have not and why instead 

we have cut taxes. You do not raise taxes in a recession.’’ 


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Well, for once, I could not agree more with our President’s sentiments. With that, I yield back. 

Chairman TIBERI. Thank you, Mr. Schock. Any comments from 

the Subcommittee? 

[No response.] 

Chairman TIBERI. Thank you for testifying today. 

Mr. SCHOCK. Thank you. 

Chairman TIBERI. That concludes our second panel. We will 

now move to our third panel of members. 

Our first panelist today hails from the great State of Tennessee. 

Mrs. Black is recognized. 

STATEMENT OF THE HONORABLE DIANE BLACK, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

TENNESSEE 

Mrs. BLACK. Thank you, Mr. Chairman and members. I am 

here today to acknowledge the merits of extending some of the tax 

provisions this body has addressed in the past that benefit both individuals and businesses. 

Businesses of all size in Tennessee tell me how worried they are 

that one more tax increase or mandate from Washington might just 

sink them, and individuals are at risk of seeing their tax bills go 

up at the end of the year. 

I want to address very briefly four of these extenders that are 

important either to my state or what I believe are important to the 

nation. 

The first is the sales tax deduction. I agree with the Governor 

of my state that the state and local tax deductions are especially 

important for Tennesseeans as it is for six other states, including 

Texas, Florida, Washington, Wyoming, South Dakota and Nevada, 

that are without a state income tax. 

That is why I am the co-sponsor of H.R. 476 introduced by my 

colleague, Mr. Brady from Texas. This bill would include the extension of state and local sales tax deduction. 

This really is a fairness issue. Since 2004, when the deduction 

was restored, we have agreed that taxpayers in sales tax states 

should be treated equally as those in the Tax Code of those in 

states that rely upon an income tax. 

Sales tax adds up for families. We are trying to protect them 

from a significant tax increase and help them stretch their pocketbooks a little further. 

Taxpayers in these seven states who itemize their deductions 

have come to depend upon this provision and this deduction puts 

extra money in the pockets of our Tennesseeans which helps families and their budgets. 

The second is the charitable tax deduction. Unlike other tax incentives, the charitable tax deduction encourages behavior that enriches our communities rather than individuals because it successfully encourages taxpayers to give more. 

As charities struggle to meet the increased demands for their 

services and raise additional funds, we need to encourage all individuals of every level regardless of income to give more to the charitable organizations. 


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This is behavior that we need to encourage rather than to discourage. 

The nice thing is this is one of those cherished traditions that we 

do not see anywhere else in the world. I would think this is one 

that we would want to keep. 

The next one is the R&D tax credit. Congress has extended the 

R&D tax credit 14 times since it was originally enacted in 1981, 

and the R&D credit has proved an important incentive to spur our 

private sector investments in innovative research by companies of 

all sizes and sectors. 

That is why I am a co-sponsor of H.R. 942, the American Research and Competitive Act of 2011 by Mr. Brady once again. 

Finally, the 15-year depreciation that is a bill by Mr. Gerlach, 

1265. Generally, the depreciation period, as you all know, for commercial building and improvements is 39 years. 

Congress has modified that depreciation schedule for certain 

types of property over time, in addition to better reflecting the 

unique characteristics of property used in certain types of commerce. 

Shortening the depreciation schedule stimulates the economy 

and job growth. 

For this reason, I am a co-sponsor of this bill. 

I just want to close by thanking you for having this hearing so 

that we could individually talk about why these are so important 

to us either in our communities or why we think generally they are 

important. 

Thank you very much. 

Chairman TIBERI. I thank the gentle lady from Tennessee who 

is a great member of the Full Committee. I thank her for being 

here today. 

Mrs. BLACK. Thank you. 

Chairman TIBERI. With that, I yield to the gentleman from 

Puerto Rico, Mr. Pierluisi. 

STATEMENT OF THE HONORABLE PEDRO PIERLUISI, A REPRESENTATIVE IN CONGRESS FROM THE TERRITORY OF 

PUERTO RICO 

Mr. PIERLUISI. Thank you, Chairman Tiberi, Ranking Member 

Neal, and Members of the Subcommittee. 

I respectfully urge extension of two tax provisions that expired 

in 2011 and that are of great importance to Puerto Rico’s economy. 

First, I have introduced H.R. 4605, which would extend for two 

years a deduction allowable with respect to income attributable to 

domestic production activities in Puerto Rico. 

In the American Jobs Creation Act of 2004, Congress enacted 

Section 199, domestic production activities deduction. The deduction was intended to achieve a number of policy goals including 

providing support for the domestic manufacturing sector, and reducing effective corporate tax rates. 

Section 199 allows a company to receive a deduction equal to 

nine percent of the taxable income that the company derives from 

qualified production activities within the United States. 

However, the 2004 Act did not authorize a company to receive 

the Section 199 deduction on the income derived from those activiVerDate Mar 15 2010 09:14 Jun 07, 2013 Jkt 079894 PO 00000 Frm 00044 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\79894.XXX 79894

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ties in Puerto Rico, even though Puerto Rico was part of the U.S., 

and jobs in Puerto Rico are American jobs. 

Fortunately, that exclusion was corrected back in 2006, but every 

year or every two years actually, we need to extend it. 

I respectfully submit that there is ample justification to extend 

this provision for an additional period of years or better yet to 

make it permanent. 

Mr. Chairman, I have also sponsored H.R. 4374, introduced by 

Congresswoman Christensen, which would extend for two years the 

modest increase in the limit on the cover over of excise taxes to 

Puerto Rico and the U.S. Virgin Islands. 

The cover over program dates back to 1917 in the case of Puerto 

Rico, and to 1954 in the case of the U.S. Virgin Islands. The territories are treated unequally under many Federal programs, and 

the cover over program helps to compensate for this fact. 

The purpose of the program is to provide budgetary support to 

the territorial governments, and historically, funding has been used 

primarily for economic development, health care, infrastructure, 

education, and conservation. 

I do believe the cover over program could be refined in certain 

respects to ensure that it is providing the greatest possible benefit 

to the U.S. citizens living in the two territories, where median 

household income is roughly half of what it is in our poorest states. 

I have introduced legislation for that purpose. Nevertheless, the 

importance of the cover over program for my constituents and Congresswoman Christensen’s constituents who are short changed in 

so many respects cannot be overstated. 

Mr. Chairman, these two extenders have enjoyed bipartisan support and have had a positive impact on our national economy of 

which Puerto Rico and the U.S. Virgin Islands are integral parts. 

I hope the Subcommittee will take action to prevent the economic 

harm that would result if these two provisions are not renewed. I 

yield back. 

Chairman TIBERI. Thank you for your testimony. 

With that, I yield to the gentleman from New Hampshire. 

Mr. Bass is recognized. 

STATEMENT OF THE HONORABLE CHARLES BASS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW 

HAMPSHIRE 

Mr. BASS of New Hampshire. I thank distinguished Chairman 

Tiberi and Ranking Member Neal for your time and your attention. 

I think this is a great series of hearings that you are having today. 

I want to preface by saying that I applaud this Committee’s work 

in trying to come up with a comprehensive plan for tax reform and 

simplification for this country. 

On top of that, we all know the fiscal cliff that we are facing at 

the end of the year and the impact that may have on the country’s 

economy. 

I know there are a lot of very significant priorities the Committee needs to address, the most important of which, I believe, is 

comprehensive tax reform and avoiding what we face at the end of 

the year. 


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To that end, I was one of four Republican co-sponsors along with 

four Democrats of, I think, the first bipartisan budget bill that has 

been before this Congress in my political career, and perhaps since 

the Budget Empowerment and Control Act was passed in 1974, socalled implementation of the Simpson-Bowles bipartisan tax reform—budget, rather. 

I hope that this Committee along with the Appropriations Committee and the other committees whose jurisdictions will attend to 

this priority—that we need to work together to resolve the big 

issues that face this country over the next year. 

However, within that context, I think it is important to consider 

that in lieu of comprehensive tax reform, the importance of maintaining the production tax credit for renewable energy, which has 

been around now since 1992. 

It lapsed, as was mentioned by a previous member testifying, 

seven times. The last time it lapsed, which was in 2002–2004, renewable energy, most notably wind production installations, fell by 

72 percent very quickly. This was devastating to the industry. 

My home State of New Hampshire has a renewable portfolio 

standard of 25 percent by the year 2025, and part of that involves 

the installation of some pretty significant wind capacity in the 

state, most notably one project which is under construction right 

now in Groton, New Hampshire. 

It will produce over $81 million in new economy to the state. It 

helps us reach that goal of 25 percent renewable by the year 2025. 

It is important not only for New Hampshire’s economy and for our 

own legislative or policy objectives, but it is also important for this 

country to continue to balance the need to develop traditional energy resources with alternative energy resources. 

As a member of the Energy and Commerce Committee, I will be 

working to that end on the policy side. I hope this Committee will 

continue to support renewal of the renewable energy production tax 

credit because I really believe that is important for our nation’s energy future. 

I thank the Chairman for his time. I hope you will consider this 

priority. 

Chairman TIBERI. I thank the gentleman for his leadership on 

the issue. The gentleman from California, Mr. Campbell, is recognized. 

STATEMENT OF THE HONORABLE JOHN CAMPBELL, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

CALIFORNIA 

Mr. CAMPBELL. Thank you, Mr. Chairman, Ranking Member 

Neal, and Members of the Committee. 

I think I am the only Member of Congress who actually has an 

advanced college degree in taxation. I could comment on a bazillion 

things that are before this Committee, but I am going to limit myself to just one minor provision today, which is the mutual fund 

flow through exemption provision, something Mr. Neal may have a 

specific interest in as well. 

Prior to 2004, we had a 30 percent withholding provision when 

foreign investors invest in mutual funds. As a result, foreign investors did not invest in mutual funds, because 30 percent, particuVerDate Mar 15 2010 09:14 Jun 07, 2013 Jkt 079894 PO 00000 Frm 00046 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\79894.XXX 79894

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larly if you do not make much money on the thing, you may wind 

up with less money after withholding than you actually made. 

What they did is they set up what they called ‘‘mirror funds’’ in 

foreign countries that would try to mimic the investment decisions 

of U.S. mutual funds so that foreigners could sort of participate in 

the decisions of U.S. mutual funds. 

In 2004, we eliminated that withholding provision and foreign 

money flowed back into the U.S. and the U.S. mutual funds again. 

That provision expired at the end of 2011. The foreign money is 

running back offshore again into other places. 

What is interesting and unfair about this withholding provision 

is that under current law, because that is what it is now, if you 

invest—if a foreign investor invests in something directly, like let’s 

say an interest rate swap or something, they do not have to have 

withholding, even though it is an U.S. interest rate swap made by 

the same company that offers the mutual fund. 

If they invest in a mutual fund, which has that swap as a part 

of it, then they have the withholding. 

It totally discriminates and does not allow foreign investors to invest in U.S. mutual funds. 

Let me point out, if we extend this exemption and make it permanent, which Congressman Paulsen has H.R. 4623 to do, and I 

am a co-sponsor of that, and that is what I would recommend, that 

we just eliminate this 30 percent withholding, but realize this does 

not change that foreign investor’s tax liability to the U.S. at all. 

This does not change the tax due based on the income they derive. This is only about withholding. All it is is changing the time 

at which that tax is paid, but not the total amount of the tax which 

is paid, because it is just a withholding thing. 

I respectfully request that the Committee consider making this 

exemption, if you will, or eliminating this withholding provision on 

mutual funds, because what it is going to do is bring a lot more 

money into U.S. mutual funds which creates U.S. jobs both in the 

mutual fund industry and in the industries in which those funds 

are investing. 

I thank the gentleman very much for his time and yield back. 

Chairman TIBERI. Thank you for your testimony. 

With that, the gentleman from Iowa is recognized, Mr. Braley. 

STATEMENT OF THE HONORABLE BRUCE BRALEY, A 

REPRESENTATIVE IN CONGRESS FROM THE STATE OF IOWA 

Mr. BRALEY. Thank you, Mr. Chairman, Ranking Member Neal, 

and Members of the Committee. 

My job here today is to make you all feel good about what you 

do on this Committee, and that is why I want to talk about making 

adoption of the Affordable Tax Credit bill. 

We have had a great adoption tax credit provision on the books, 

but a portion of it expired at the end of last year, having dramatic 

impact on couples considering adoption, and the entire tax credit 

will expire at the end of this year and revert to a much more draconian adoption tax credit that will provide disincentives for couples 

to adopt. 

I want to tell you why this is such an incredible return on investment to American taxpayers. 


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First of all, you get families like the Craigs, Kalin and Johnny 

Craig, who adopted a beautiful child from Africa, Joseph, and 

brought him back to give him a loving, caring home. 

They were able to take advantage before the end of the year of 

this $13,000 fully refundable tax credit. 

This was a bipartisan effort that came about under both President Bush and President Obama. We have seen the number of 

adoptions nearly double in this country since that tax credit was 

strengthened. 

If we do not act, it will revert to a $6,000 level. It will only apply 

to special needs adoptions, and the eligibility criteria income-wise 

will dramatically reduce even further those who are eligible for the 

credit. 

Why does this make sense for taxpayers? We currently spend 

about $47,000 a year in state and Federal benefits to keep kids in 

foster care; $47,000. 

This one-time $13,000 credit is an enormous return on investment, puts those kids into loving, caring homes, takes away the 

need to continue to provide state and Federal support for them, 

and is a win-win situation, and that is why it is so essential that 

we act together on an issue that should bring Democrats and Republicans together to feel good about our tax policy. 

That is why I am asking you to move forward and make that 

permanent and provide that benefit to young children who are 

looking for a loving home. 

I also want to echo the comments of my colleague from New 

Hampshire about the production tax credit. My state ranks number 

two in wind energy production. We lead the country along with 

Texas and Illinois in the number of jobs created by that industry. 

We are currently providing power to one-third of our state with 

wind energy. We need to continue to provide certainty and predictability to people willing to invest and reducing our dependence on 

foreign oil. 

I thank you for your time. 

Chairman TIBERI. Thank you, Mr. Braley. Thank you for bringing up the adoption tax credit. I hail from a district that has the 

Dave Thomas Foundation on Adoption, the late Dave Thomas, who 

was a leader in establishing it, founder of Wendy’s. I know if he 

were here, he would be cheering you on. Thank you for being here. 

Mr. Marchant is recognized. 

Mr. MARCHANT. Congressman Campbell, could you just explain 

to me, is the 30 percent withholding for distributions and dividends, so that even if a capital distribution is made, it is automatically 30 percent withheld? 

Mr. CAMPBELL. Yes, that is my understanding of the law. 

Therefore, people can actually wind up having to have their entire 

amount of income withheld if they had any and perhaps even if 

they did not have any income. 

Mr. MARCHANT. They file their tax return? 

Mr. CAMPBELL. Then they get the money back later when they 

file their tax return. That is right. 

Mr. MARCHANT. Thank you. 

Mr. CAMPBELL. Thanks. 


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Chairman TIBERI. With that, I would like to thank you five for 

taking time out of your busy schedules to testify today. 

Our third panel is concluded. We will move to our fourth panel. 

We did have a cancellation on the fourth panel. There are just two 

in our next panel. Mr. McGovern and Mr. Grimm, you can take a 

seat. 

I am going to make an executive decision since we only have two 

on this panel. You guys have more time than just three minutes 

if you would like. 

The gentleman from Massachusetts is recognized, Mr. McGovern. 

STATEMENT OF THE HONORABLE JAMES MCGOVERN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

MASSACHUSETTS 

Mr. MCGOVERN. Thank you, and even though you are generous 

in offering to give us more time than three minutes, I am going to 

try to stick to three minutes. 

I am happy to be here. Chairman Tiberi, Ranking Member Neal, 

Members of the subcommittee, thank you for the opportunity to 

testify today in support of extending parity for the transit benefit. 

As you know, parity expired at the end of the 2011 calendar 

year. Currently, commuters who drive to work and park are eligible for up to $240 in pre-tax benefits per month from their employer while commuters who take mass transit, such as commuter 

rails, subways, buses, or van pools, are only eligible for up to $125 

a month. 

Commuters who drive and park were actually eligible for an increase in their monthly parking benefit at the start of 2012 because 

of an automatic cost of living adjustment. 

At a time of high gas prices and when many families are still 

struggling financially from the recession, it makes no sense to penalize commuters who utilize mass transit. 

I reintroduced H.R. 2412, the Commuter Benefits Equity Act, to 

make permanent transit benefit parity. This bill has 74 bipartisan 

co-sponsors. 

I want to recognize my colleagues, Congressman Grimm and 

Congressman Blumenauer, for their efforts to extend the transit 

benefit. 

In December of 2011, we organized a bipartisan letter to House 

leaders to extend the transit benefit in the payroll tax cut package. 

It was signed by 50 Members. 

Then again in February, we organized another bipartisan letter; 

this time it was signed by 72 Members, urging that the transit benefit be extended in the continuing payroll discussions. 

In recognition of the extremely difficult fiscal times in which we 

find ourselves, our letter proposes establishing parity at the revenue neutral maximum level of $200 per month for parking and 

transit benefits. 

The Federal transit benefit is a perfect example of how targeted 

and effective Federal policy can benefit both employees, as a way 

to save money on their commute, and employers, as an attractive 

fringe benefit to offer their workers. 

Employees and employers receive a pre-tax benefit resulting in 

sound fiscal savings for both. 


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It simply makes sense to reestablish parity between parking and 

mass transit benefits. It is good for employers, good for employees, 

good for the environment, helps take cars off our congested roads, 

and I am hopeful you will restore parity in the tax extenders package. 

I appreciate the time you have given me here. 

Chairman TIBERI. Thank you, Mr. McGovern. 

The gentleman from New York is recognized, Mr. Grimm. 

STATEMENT OF THE HONORABLE MICHAEL GRIMM, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW 

YORK 

Mr. GRIMM. Thank you, Chairman Tiberi and Ranking Member 

Neal. I do appreciate the opportunity to testify today in support of 

extending the expiring commuter transit benefit. 

I would also like to thank my colleague, Mr. McGovern, for his 

leadership on this extremely important issue. 

As a Member of Congress representing the citizens of Staten Island and Brooklyn, who have and face every day the longest commute times in the entire nation, seeing this vital program extended 

is of the utmost importance to me and all of my constituents. 

The transit benefit is a highly effective tool used by an estimated 

2.7 million Americans, and that is to help reduce the cost of commuting. 

Transit Center, a New York City non-profit, found that when 

transit benefits are introduced to the workforce, 20 percent of employees alter their commuting patterns. They use public transit or 

van pools. 

When considering that, a 3 percent reduction in single occupancy 

vehicles can lead to a 25 percent reduction in congestion. It is clear 

that the transit benefit is an effective means of reducing traffic. 

While there are additional energy and environmental benefits 

that can be drawn from this, I want to take this time to also recognize the role transit benefits have on employers. 

Simply put, the transit benefit makes sense for businesses of all 

shapes and sizes. The provision is a pre-tax benefit not only for employees but also for the employers who offer it, providing fiscal savings by reducing their payroll tax burden. 

According to corporate service provider Edenred, last year, employers who offered the transit benefit saved an estimated $311 

million in taxes. When we look at this in context, these savings 

could be used to hire 6,200 new workers, providing many employers with the additional resources that they need to expand their 

business and do exactly what the Congress wants, create new jobs. 

The transit benefit also provides small businesses and job creators with a financial incentive to help their employees increase 

their disposable incomes. This is a perfect example of how targeted 

and effective Federal policy can provide employers with an opportunity to help their employees save money, obviously, on their commute, while saving employers money that can be reinvested into 

their own businesses, again, to create new jobs. 

Congress should not continue to promote a tax policy that is favoring drivers over commuters and that penalizes businesses that 


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are doing the right thing by offering their employees incentives to 

utilize a variety of transportation options. 

If we do not act quickly, millions of transit and van pool riders 

will continue to be taxed more than their fellow commuters who 

drive to work. 

This inequity will force many commuters out of trains, buses, 

and van pools and back into their cars, which will lead to increasing congestion, fuel consumption, lost productivity, and wasted 

time that could be spent either at productive work or home with 

their families. 

The effort to extend this important benefit has received overwhelming bipartisan support here in the House, as evidenced by 

the 107 signatures garnered by the two letters that my colleague 

just mentioned. 

I encourage the Committee to extend parity between the transit 

and parking benefits at a monthly level, providing relief from the 

high cost of commuting to American workers who choose public 

transportation and van pools. 

Again, I thank you for your time. I yield back. 

Chairman TIBERI. Thank you, Mr. Grimm. Thank you, Mr. 

McGovern. You both represent areas of our country where quite a 

bit of mass transit occurs. 

Some of our colleagues are in states where very little mass transit occurs. 

If you had to summarize to a colleague on the Committee who 

has very little mass transit the impact of the Congress not extending this provision, what would you say? 

First, Mr. McGovern. What would you say would happen in Massachusetts to both transit riders and employers? 

Mr. MCGOVERN. They have already seen a reduction in their 

benefit. They have to decide whether it is more economical for 

them to drive to work or take mass transit. If they make the decision to drive to work and there are more commuters on our highways, our roads need more repair, the cost to the state and the 

Federal government increases. 

I would argue there is an environmental impact of increased congestion on our roads. 

I think the nation as a whole benefits from this. Again, I do not 

see why we should provide more incentives for a person who drives 

their car alone to work versus a person who gets on a train or bus 

and goes to work that way, which is better for the entire community. 

Chairman TIBERI. What would that incentive be for someone 

who does not have mass transit? 

Mr. MCGOVERN. Right now, people that drive to work and park 

are eligible for up to a $240 pre-tax benefit per month. 

We had tried to create parity in the stimulus bill, and then when 

that ran out, we saw those who actually took mass transit to work 

go from $240 down to $125 in terms of their benefit. That is a significant drop. 

Again, it is enough of a drop to make somebody wonder whether 

it is more economical to drive to work than take mass transit. 

Again, the more cars on the road, the more wear and tear, the 

more cost of maintaining our highways. Again, at a time when we 


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are trying to encourage more people to utilize mass transit, letting 

this benefit expire does not make any sense to me. 

Chairman TIBERI. Mr. Grimm, can you give a New York City 

perspective? 

Mr. GRIMM. I certainly can. I think people that are not as familiar with my specific district within New York City would think I 

would side with those that have massive mass transit. 

Staten Island, which is more than 70 percent of my District, is 

known for not having mass transit. It is one of the biggest problems we have, congestion and traffic because of the lack of mass 

transit. 

However, even in areas, rural areas that do not have mass transit, we want to encourage people to van pool and car pool. That is 

what this extension would do. It makes people be more efficient so 

that neighbors can get together, colleagues that work in the same 

general area can come to their own agreements to share a car or 

van pool. 

I think it is very bad precedent for the Congress as a whole to 

pick winners and losers. The country is different. There are going 

to be areas like the heart of New York City, Manhattan and Brooklyn, that have a tremendous amount of rail and access to transportation, and parts of the city like Staten Island that does not. 

I think they should all be at parity and all should be equal, but 

when you look at it, I think the incentives to put people in car 

pools and to be creative, even when there is not mass transit, is 

obvious, and for that reason, I would strongly urge parity. 

Chairman TIBERI. Thank you. Mr. Neal. 

Mr. NEAL. Thank you, Mr. Chairman. 

Mr. Grimm, following that logic that you have laid out here, you 

agree it is okay to incent certain behaviors to encourage people to 

commute rather than have just one person in terms of occupancy 

in a car using more fuel and standing in line for a longer period 

of time? 

Mr. GRIMM. Yes. 

Mr. NEAL. You agree with that. If that is the case, we are having the conversation that it is generally a good idea to have less 

reliance upon fossil fuel. Is that an agreement? 

Mr. GRIMM. In general, yes. 

Mr. NEAL. In general. Does the Government not have some compelling interest in encouraging use of renewable energies? 

Mr. GRIMM. As long as it is sustainable and practical. 

Mr. NEAL. Would you grant that solar and wind are worthwhile 

given Staten Island’s geography? 

Mr. GRIMM. If you are discussing possibly wind turbines as opposed to wind mills, then I would say yes. As the studies and the 

science gets better, I think those are going to be options for the future. 

If you are asking me based on what it is right now, wind mills, 

I would say probably not. I think it would cost more money than 

what we have now. 

For it to be a real alternative, in my humble opinion, an alternative means that it can provide the same service at an equal or 

less cost. If it is more and needs massive Government subsidies 

like say, for example, biofuels, where we have to subsidize it at $1 


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per gallon, that is not a real alternative. That is not an alternative. 

That is the Government just paying for something because we do 

not have the alternative yet. 

Science has to catch up with it, but I think an ‘‘all of the above’’ 

approach is what we should be doing as well as R&D. 

Mr. NEAL. If science catches up with it, would you agree that 

before science catches up with it, we might need to build a bridge 

through the Tax Code to encourage science catching up with it, as 

you have described it? 

Mr. GRIMM. To some extent, yes, but again, it has to be practical, reasonable and sustainable, and within our means. 

Mr. NEAL. If you want major companies to embrace renewable 

energy, does there not have to be in this transitioning period some 

sort of incentive that is built into the Code to encourage that sort 

of behavior? 

Mr. GRIMM. Well, I think this is a perfect example of an incentive. This is a perfect example. Right now, the way it is, we are 

giving an incentive for people to get in their cars, single occupancy 

in cars, as opposed to using public transportation. That seems 

backwards to me. 

Mr. NEAL. The incentive here is clearly as you argue it, to encourage the Tax Code to incent that behavior. 

Mr. GRIMM. Yes, or at least to make it equal at a minimum. We 

are asking for parity, not to pick winners and losers. I am asking 

for parity. 

Mr. NEAL. How do you pick winners and losers when it comes 

to wind and sun? Is it not desirable to relieve pressure from imported oil? 

Mr. GRIMM. Again, I think that it is based on simply the economics and where the science is. If it is not efficient and the cost 

is not sustainable, then I do not consider that an alternative. 

Mr. NEAL. If the President says ‘‘all of the above,’’ are you suggesting that you could build a nuclear power facility today without 

Government guarantees? 

Mr. GRIMM. When you say ‘‘without Government guarantees,’’ 

first let me say I do believe nuclear is one of the answers to our 

energy needs. 

Mr. NEAL. Could it be constructed today without Government 

guarantees? Could a plant be constructed? 

Mr. GRIMM. I do not know enough about the subject to be completely honest with you to say what that would entail. I would say 

this, that I think nuclear now, for example, in my great state and 

the great City of New York, we have about 25 percent, do not quote 

me on the exact number, of our energy coming from Indian Point, 

which has been providing clean, good, fairly cost effective energy 

for New York City for a long time, and I am a full supporter of 

that. 

Mr. NEAL. The short answer here, Mr. Grimm, all I am suggesting to you is I am in agreement with you on the commuter tax. 

Mr. GRIMM. Great. 

Mr. NEAL. Having said that, my point is when you continue it 

to its manifestation, the issue of what the Government nurtures, 

I think we do not get to renewables without this bridge for a short 

period of time to encourage these alternative sources of energy. 


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Chairman TIBERI. I thank the two panelists, and just add my 

two cents, Mr. Neal. I would argue that while the President talks 

a good game about ‘‘all of the above,’’ his Administration, coming 

from a state that has a lot of natural gas, oil, coal, that many small 

entrepreneurs would argue that the Administration has been anything but ‘‘all of the above.’’ 

We can have that debate another time. I know you have mentioned it a couple of times with respect to the President, an issue 

sensitive to me. I would argue we can reduce imported oil, imported fossil fuels, by more domestic opportunities in the fossil 

fuels. 

Mr. NEAL. This is a fair discussion. Domestic capacity is up by 

20 percent. Next year, North Dakota is going to produce more oil 

in Prudhoe Bay. 

Chairman TIBERI. No thanks to the Federal Government. 

Mr. NEAL. My point is many of these incentives one might argue 

have been also brought about because of the Code. We did a pretty 

good energy bill here a few years ago. 

Mr. GRIMM. Ranking Member, if I may, keeping in mind, regulations do play a major role in this. When you look at the amount 

of coal plants that are closing, refineries that are closing, the fact 

that our pipelines are antiquated and desperately need to be upgraded, and there is a tremendous push back through the regulators on those things, it does not seem to really be that the Administration wants an ‘‘all of the above’’ approach. 

Those are just the facts as I have been reading them. Again, I 

am not an expert. 

Chairman TIBERI. We do have our 12:00 panelist here. Just to 

kind of close this, to Mr. Grimm’s point, in my State of Ohio, a hot 

topic right now is the fact that—this debate occurred during cap 

and trade, the public utilities are raising rates at the same time 

they are closing coal plants because of the Federal Government. 

The alternative fuels that are taking place, and that is a policy 

decision, are raising the rates to homeowners as well as businesses, 

and that is happening right now in our state. 

That is a debate that entails the discussion that you two are having. 

There is a consequence to the dollars that are paid by at least 

my constituents in Ohio. 

Mr. NEAL. At the moment though, I think it is fair to say as 

well that we are much less dependent on coal, and part of that reason is because many of our international competitors are more dependent on coal. It is that export market that is driving part of the 

decision making. 

Chairman TIBERI. In part because coal plants in my state are 

exporting because there is less domestic wanting because of Federal regulations. 

Thank you both. We could have this discussion all day. Like I 

said earlier, who said the Tax Code is not fun in terms of discussion. We are having a great time today. Thank you both. 

Mr. GRIMM. Thank you. Thank you, Ranking Member. 

Chairman TIBERI. I thank Mr. King and Mr. Costa for their patience. They are up next for our 12:00 panel. We have two on our 

12:00 panel. Welcome to both of you. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
45 

We will begin with the gentleman from the Hawkeye State. Mr. 

King is recognized. 

STATEMENT OF THE HONORABLE STEVE KING, A 

REPRESENTATIVE IN CONGRESS FROM THE STATE OF IOWA 

Mr. KING. Thank you, Mr. Chairman and Members of the Subcommittee. I appreciate the privilege to testify here today. 

I think I will dispense with my prepared remarks. I know you 

study them well, as does the staff. Bring this to a few points that 

I think are important to be emphasized. 

I am here to testify in support of the protection of tax credit for 

wind generation of electricity. I would point out that Iowa has the 

second highest percentage of our electricity generated from wind of 

the states. South Dakota is ahead of us. Also, we have developed 

an industry there over the years. 

As I was in the State Senate 15 years ago, I sat down and received a briefing on the future of the wind generation of electricity 

in Iowa and across the country. 

That briefing identified that our costs were at 15 cents per kilowatt hour. Of course, that seemed pretty high at the time and illogical, but they said we will get these costs down to three cents. 

We think we can get them to three cents. 

I have been watching it along the way. Those costs have 

ratcheted down from 15 cents down to the most reliable number I 

have, 5.2 cents. They have cut it more in half in the last few years, 

the cost of electrical generation by wind. 

The central piece of the point that I would like to emphasize is 

that when we come up with new renewable energy or any kind of 

energy, you have to find a way to have market access. 

I was involved in the ethanol industry early, involved in the biodiesel industry, now the wind industry. 

My Congressional District produces more renewable energy than 

any other Congressional District out of all 435 in America, and 

with the new District, the new 4th District, which will be 39 counties across Northern Iowa, we will be far and away the largest renewable energy producing district in America. 

I go back to sometime in the 1970s when we first began with 

these endeavors. One of the challenges, of course, is technology. 

A normal wind turbine back in those earlier years would produce 

about one-sixth of the electricity that a single wind turbine does 

today, a typical, but it has always been the technology, the engineering, is one challenge, and the next challenge is market access. 

Ethanol, for example, you could not get that in a gas station. You 

had to find a way to provide market access. 

We have gone through this process in each of these renewable 

energy components and provided a way to kind of crack into the 

market access, if you will. Now we are on the edge of blenders 

pumps for ethanol, and they have come to us and said we will let 

go of the blenders credit because we are ready to compete in the 

industry now, we just need a little more help with market access. 

A similar thing is taking place with wind, which is why I bring 

up the ethanol relation to wind. We have a tremendous infrastructure that has been built. That infrastructure has to have a little 

paydown on the return on investment before it can sustain itself. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
46 

I watched as 100 bases were put in place before the credit was 

extended several years ago. It was about the fourth or fifth of December when the Ways and Means Committee moved the production tax credit for wind. From that date in December until the 31st, 

100 towers were stood up, 100 turbines were put up, and they were 

on line. 

It was the only company in the country that took advantage of 

the credit that year. 

We need to have some support to extend this so that we can 

phase this support down. I would go to the industry and ask them 

how soon. I do not want to go on record as saying how soon. 

I would very much like to see an extension here, and if that extension becomes a condition, that they come back with a proposal 

on how long it would take to phase that down, I think that is an 

appropriate and responsible thing for us to do. 

I see I have run out of time, and I appreciate your attention, and 

I yield back. 

Chairman TIBERI. I thank the gentleman from Iowa. Mr. Neal 

would like to make a point. 

Mr. NEAL. Thank you, Mr. King, for your testimony. That is the 

point I have been making all morning, that you need it until you 

phase it down. That is precisely the point I have been trying to 

make. 

You made the argument that but for the production credit, those 

turbines would not have been up and running. Is that correct? 

Mr. KING. Correct. 

Mr. NEAL. You can use this Democrat’s endorsement back there, 

and I am sure it will be very helpful to you. 

Chairman TIBERI. Wow. 

[Laughter.] 

Mr. KING. We have a good bipartisan bill out before us with a 

lot of Democrat endorsement. I would like to see some more Republicans of that mindset. 

Chairman TIBERI. Let the record show Congressman Steve King 

and Congressman Richard Neal agree. 

[Laughter.] 

Chairman TIBERI. With that, we will turn to the gentleman 

from California, Mr. Costa. 

You are recognized. 

STATEMENT OF THE HONORABLE JIM COSTA, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA 

Mr. COSTA. Thank you very much, Chairman Tiberi and Ranking Member Neal, for hosting this Subcommittee effort. You have 

a difficult task today. 

We have a number of expiring tax measures before the House, 

the Ways and Means Committee as well as the Congress. 

They all have varying degrees of merit, and obviously as we look 

at comprehensive tax reform, which I suspect we will not do until 

next year is my view, all of these interim tax measures obviously 

have to be addressed in some fashion. 

I would like to talk about a few of them in my testimony this 

morning or this afternoon I should say. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
47 

Obviously, there are a number of benefits to companies and 

small businesses around the country. In my District, a number of 

these tax measures provide incentives for biodiesel and renewable 

diesel. Some of the renewable portfolio that my colleague was just 

speaking of. 

Empowerment tax incentives, extensions of renewable electricity 

and production, percentage for the depletion for oil and gas, marginal wells. In Kern County, we have a lot of oil production, and 

others. 

I would like to focus today on one tax extension, which has been 

helpful to our constituents in the San Joaquin Valley, and that is 

the new market tax credits. 

I am pleased to join with over 60 of my colleagues on a bipartisan basis to co-sponsor H.R. 2655, the New Market Tax Credit 

Act of 2011. 

H.R. 2655 extends those credits for five years. I would urge the 

Committee to consider this measure and adopt it as part of whatever overall package you produce. 

At the national level, between the start of the program in 2003, 

going back to the Bush administration, the new market tax credits 

investments totaled $20.9 billion. 

The costs for the financed projects during that time, it was $45 

billion around the country. I think that is a pretty good leverage 

in terms of investments that were made of significant capital from 

other sources. 

This financing was mostly located in high distressed communities throughout the country, around 60 percent were located in 

communities where the unemployment rates were at least 1.5 

times the national average. 

In my Congressional District, the new market tax credit investments totaled $60 million, and total project costs came to a value 

of over $114 million, over almost a two to one ratio. 

This is significant investments in areas where capital investment 

is badly needed. 

The leverage, I think, across the country and including my District is good. 

Recognizing the value of these new market tax credits in San 

Joaquin Valley that I represent, I introduced H.R. 2740 last year, 

a bill that would help spur economic development in low income 

communities. 

I am aware of two situations that I want to bring to the attention 

of the Subcommittee, and I will close, that are adjacent to universities, both at Fresno State and the University of California in 

Merced, where no one has lived in certain Census tracts at the 

time of the last Census. 

Now, with the new Census that is taking place, people live adjacent to these universities. There was no information on income 

available from the last Census that was taken in 2001. Now, there 

is. 

There is an important student population that has taken residence adjacent to the universities. They are posed to continue development in that area to provide services to these students and to 

the university community. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
48 

H.R. 2740 allows the new market tax credits to apply to where 

Census tract information is not available or where a tract adjacent 

to two or more low income communities did not exist. 

I would urge the consideration of this measure as a part of the 

larger effort that the Subcommittee will undertake. It would benefit in this case these two university communities that are important to the education of our future, both at UC Merced as well as 

Fresno State. 

I would be prepared to answer any questions the Subcommittee 

might have at this time. 

Chairman TIBERI. Thank you, Mr. Costa, and thank you for 

your information on the new markets tax credit, which has been 

pretty impactful in my District as well, and Mr. Neal has been a 

leader in the Congress on that issue. 

Do we have any comments for our panelist? 

[No response.] 

Chairman TIBERI. All right. You guys did well. Thank you both 

so much. Appreciate it. 

Mr. COSTA. Iowa and California. 

Chairman TIBERI. There you go. King and Costa. Sounds like a 

ticket. 

Mr. COSTA. Thank you very much. 

Chairman TIBERI. Unfortunately, we have had a couple of cancellations. We have a little bit of time here. I am going to just recess. We will reconvene at the call of the Chair for our next panel. 

Everyone can grab a cup of coffee or some lunch if they like, and 

we will just recess for a little bit. 

[Recess.] 

Chairman TIBERI. Since we have most of the 12:40 panel here 

and one crasher, maybe two crashers, we are going to go ahead and 

get started. 

Starting on my far left, no pun intended, Mr. McDermott. 

[Laughter.] 

Mr. MCDERMOTT. When your Clerk brought me up here, I find 

I was being put on the left. 

Chairman TIBERI. A distinguished member of our Ways and 

Means Committee will go first, Mr. McDermott from the great 

State of Washington. 

STATEMENT OF THE HONORABLE JIM MCDERMOTT, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

WASHINGTON 

Mr. MCDERMOTT. Thank you, Mr. Chairman. I want to thank 

the Chairman and the Ranking Member, who I am sure will be 

here in a moment, for holding today’s hearing. 

Certainly, it is a critical component of our Tax Code, and making 

this hearing on expiring tax provisions is really in my view long 

overdue because businesses want to know what is going on, and a 

lot of people want to know. 

I come to talk about two specific tax provisions that if not extended will significantly impact taxpayers and homeowners. 

The first is the reduction for state and local sales tax. This provision brings tax equity to taxpayers living in states with no income 

tax. There are a number of them. My State of Washington is one 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
49 

of six states that do not have an income tax. This has been in and 

out of the law several times during my time in the Congress. It is 

time for it to be permanent, but here we are again. 

Currently, taxpayers may deduct their state income taxes, but if 

you do not live in a state with any income tax, you lose a whole 

deduction. 

Without a corresponding deduction, the taxpayers will shoulder 

most of the Federal tax program themselves. More than 800,000 

Washingtonians alone would be subject to this unequal treatment 

if the deduction is not extended. That is true for Texas and a lot 

of other places, Florida, that do not have income taxes. 

Last December, my colleague, Mr. Brady, and I, along with 68 

bipartisan members of the House sent a letter to the Committee requesting an extension of this, and I request unanimous consent to 

enter this letter into the record. 

[The prepared statement of The Honorable Jim McDermott follows:] 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
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Mr. MCDERMOTT. The second provision is the exclusion from 

income for mortgage debt discharge. This provision provides critical 

tax relief to struggling homeowners that are lucky enough to get 

their lender to agree to principal reduction. 

In February, 49 state AGs and five major banks recently agreed 

to a $26 billion settlement, a portion of which will go to reducing 

principal. Hundreds of thousands of homeowners will get this relief, but if this exclusion is not extended, these homeowners will be 

hit with a tax bill on money they never received. 

I introduced the Homeowner Tax Fairness Act along with my 

Democratic colleagues on the Committee that not only extends the 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.017
55 

exclusion but ensures that every bit of relief for our state attorney 

generals that has been agreed to goes to the homeowners and the 

Service members that need it most. 

I am looking forward to working with my colleagues on the Committee to extend these provisions and the other necessary provisions that were made outside the scope of this hearing. 

I sincerely hope the Committee considers every extender but not 

just those that were extended in 2010. To pass effective tax law 

that is in the best interest of this country, we ought to go back beyond 2010. 

I thank the Chairman, and I yield back my time. 

Chairman TIBERI. Thank you. I thank you for being here to testify. With that, we will go to our third Hawkeye today, from Iowa. 

Mr. Latham. I am more known as a Cyclone, actually, but from 

the Hawkeye State. 

Chairman TIBERI. From the Hawkeye State. Mr. Latham is recognized. 

STATEMENT OF THE HONORABLE TOM LATHAM, A 

REPRESENTATIVE IN CONGRESS FROM THE STATE OF IOWA 

Mr. LATHAM. I wish to really express my appreciation to the esteemed Chairman, Mr. Tiberi, and Mr. Neal, for holding this hearing to discuss the fate of several expiring tax provisions. 

I have long been a supporter of domestic energy resources as a 

means to support American jobs, decrease our dependency on foreign oil, and to ensure our own energy independence. 

As you review the tax extenders, I would urge you to consider extending the production tax credit for wind energy. The PTC serves 

as an important function to help diversify our energy resources. 

The tax credit, which is based solely on project performance, has 

been a proven benefit to consumers and the nation. 

Since 2005, the PTC has been the catalyst for private investment 

in wind energy generating over $75 billion of private investment in 

U.S. wind projects over the last seven years, and $13 billion this 

last year alone. 

An extension of the PTC will provide much needed certainty for 

the wind industry to continue its contribution to increasing our 

supply of domestic energy. In the past five years, domestic manufacturing facilities have flourished, adding nearly 500 manufacturing facilities, and providing good paying manufacturing jobs to 

30,000 people. 

In all, the wind energy supports 75,000 jobs, some 4,000 to 5,000 

in my home State of Iowa alone. 

However, I fear that if the tax credit is allowed to expire, many 

of these jobs will be put in jeopardy, particularly in the manufacturing sector. 

Companies in my home District have already indicated they are 

planning employee layoff’s without an extension, and has predicted 

that 2,000 to 3,000 Iowa jobs are at risk of being lost immediately 

without the extension. 

Investment and jobs aside, the PTC just makes sense to increase 

our domestic energy supply. Over the span of five years, wind energy has provided 35 percent of all new power generation in the 

United States, and is still growing. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
56 

Through incentives like the PTC, my home state has become a 

leader in the wind energy industry and generates 20 percent of the 

state’s electric needs, powering over one million homes. 

Estimates indicate the U.S. as a whole is capable of growing to 

Iowa’s level of wind power generation by 2030, and at that level, 

the industry would support 500,000 jobs. 

If my home state is any indication for the potential for U.S. wind 

energy, then I know the future for American wind energy is bright, 

but in order for the industry to grow to its full potential, long term 

certainty from Congress is necessary, and the extension of the protection tax credit will provide that certainty. It is necessary to continue that investment. 

Mr. Chairman, I encourage you to consider extending the production tax credit for wind energy, and I appreciate very much the 

chance to testify here today. 

Chairman TIBERI. Thank you. I thank the gentleman. The 

gentlelady from the U.S. Virgin Islands is recognized. 

Ms. Christensen. Close. 

STATEMENT OF THE HONORABLE DONNA CHRISTENSEN, A 

REPRESENTATIVE IN CONGRESS FROM THE U.S. VIRGIN 

ISLANDS 

Ms. CHRISTENSEN. Thank you, Mr. Chairman and Ranking 

Member Neal, for the opportunity to present testimony in support 

of H.R. 4374, legislation I introduced with Resident Commissioner 

of Puerto Rico, Pedro Pierluisi, to extend the rum tax cover over 

provision for the next two years. 

I would like to explain what the rum tax cover over is and what 

it is not. It is not a tax credit nor is it a tax benefit for businesses 

or individuals. 

The cover over does not increase taxes nor does it decrease taxes. 

The tax policy behind the cover over is not temporary nor is it new. 

Rather, the cover over is part of the fundamental tax relationship 

between the United States and its territories that goes back over 

100 years, before there was even an income tax. 

When the United States acquired Puerto Rico and the Virgin Islands at the turn of the last Century, Congress generally exempted 

these new territories from the application of the U.S. Internal Revenue laws, including Federal excise taxes on manufactured goods. 

To protect domestic manufacturers from untaxed territorial manufacturers, Congress from the very beginning imposed on products 

manufactured in Puerto Rico and the Virgin Islands a tax that is 

‘‘Equal to the Internal Revenue tax imposed in the United States 

upon like articles of domestic manufacture.’’ 

Thus, the tax imposed on rum manufactured in the Virgin Islands and Puerto Rico and shipped to the United States is not an 

ordinary excise tax. It is not intended to raise revenue for the U.S. 

but rather as the courts have recognized, it is an equalization tax 

intended to regulate commerce between the territories and the 

United States, and to preserve a level playing field for the mainland distillers. 

Accordingly, the Act that governs the relationship between the 

United States, Virgin Islands and Puerto Rico provided that all of 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
57 

such equalization taxes be returned or covered over to the Treasuries of the respective territories. 

These fundamental principles have been enforced since 1900. In 

1984, Congress increased the excise tax on rum from $10.50 per 

proof gallon to $12.50 per proof gallon, but also provided for the 

first time in the history of the territorial relationship that these 

proceeds of the increase of the rum equalization tax would be retained by the United States. 

Congress later increased the rum tax to $13.50 per proof gallon, 

but it was not until more than a decade later that Congress restored the cover over policy that existed for the greater part of the 

past Century. 

In 1999, Congress increased the cap on rum tax cover back to 

territories of $13.25, but for budget reasons, only did it for a two 

year period. 

The so-called ‘‘Rum tax extender’’ has been regularly and 

seamlessly extended ever since. 

Today, the Virgin Islands Government issues bonds backed by 

these rum taxes to finance the construction of schools, hospitals, 

and other essential public works in the territory, and any funds 

that are not encumbered to support the general expenses of the 

Government and to modernize the rum industry. 

In addition to maintaining the Federal territorial tax relationship, this cover over legislation is critical to the Government’s efforts to resolve our fiscal crisis. 

Extension of the rum cover over rate will also help to mitigate 

significant revenue losses associated with the closure of HOVENSA 

oil refinery on St. Croix, which is the largest private sector employer in the territory and one of the largest refineries in the 

world. 

Accordingly, I strongly urge the support of the Subcommittee for 

the timely extension of the rum tax cover over rate, and I thank 

you again for the opportunity to testify. 

Chairman TIBERI. Thank you for testifying today. Our colleague 

from Puerto Rico was here earlier testifying. 

The gentleman from California is recognized. 

STATEMENT OF THE HONORABLE JOHN GARAMENDI, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

CALIFORNIA 

Mr. GARAMENDI. Mr. Chairman and Ranking Member Neal, I 

want to address three policies that would create economic opportunity in my District, in California, and across the nation. 

First, the Federal renewable energy production tax credit. Second, extending the conservation easement incentives, and third, extending the 100 percent bonus depreciation for capital investments 

that are made in the United States. 

First, let me take up the renewable energy production tax credit. 

Since its adoption in 1992, this financial incentive has provided 

stability in the energy market. 

Over the past five years, the production tax credit has helped the 

wind energy sector grow at an average of 35 percent a year. Some 

75,000 jobs are supported by this across the nation. In my own DisVerDate Mar 15 2010 09:14 Jun 07, 2013 Jkt 079894 PO 00000 Frm 00067 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\79894.XXX 79894

wwoods2 on DSK499XVN1PROD with WAYS & MEANS
58 

trict, there are 4,000 to 5,000 jobs, both in my District and in California. 

There should be added to the production tax credit, should it be 

extended, a ‘‘Make it in America’’ provision such as found in H.R. 

487, which would require that our tax money be spent on American 

made equipment. 

It seems to me that if we are going to provide a tax credit or a 

tax subsidy, we ought to provide that subsidy to American made 

equipment and American workers, not some foreign import. 

Secondly, I would like to voice my full support for the Conservation Easement Incentive Act of 2011. This bill would permanently 

extend the deductions for land owners who dedicate their land to 

development protection through conservation easements. 

I know that members of your committee, Mr. Gerlach and Mr. 

Thompson, have worked long and hard on this. They are on the 

right track. This supports farmers and ranchers staying in business 

and protecting our landscape, a very, very important provision. 

Third, I want to voice my support for the 100 percent depreciation for capital investments that is found in your bill, Mr. Chairman. I applaud you for your wisdom and urge you to carry on and 

succeed. 

This bill does create jobs in the United States. Again, I would 

suggest that you add to it, since we are using our tax money for 

this particular purpose or reducing taxes for this purpose, that you 

build into it a ‘‘Make it in America’’ provision, so that the provision 

applies more to those who are actually buying American made capital equipment, and in any case, only for capital improvements 

within the United States. 

There you have it. The production tax credit, the conservation 

easements, and the 100 percent capital write-off. I urge your support of all three of them. Thank you. 

Chairman TIBERI. Thank you for your testimony today. The 

gentlelady from Washington State. 

STATEMENT OF THE HONORABLE JAIME HERRERA BEUTLER, 

A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

WASHINGTON 

Ms. HERRERA BEUTLER. Thank you, Mr. Chairman and Ranking Member. Thank you so much for giving me the opportunity to 

advocate on behalf of extending the state and local sales tax deduction for the families in Southwest Washington and individuals 

across our state, as well as all seven states who do not have an income tax. 

We all understand that folks in this economy are struggling. We 

often hear about fairness and about certainty for hard working taxpayers and for those job creating businesses. 

I stand firmly behind both principles, which is why I have 

worked diligently to ensure that folks in Southwest Washington 

can deduct their state and local sales tax from their Federal income 

tax. 

In fact, I am joined by colleagues on both sides of the aisle and 

in both bodies who believe we should permanently etch this provision into our Tax Code. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
59 

Mr. Chairman, we have the opportunity to keep millions of dollars in Washington State’s economy at a time when struggling 

businesses in Longview, Vancouver, in Olympia and in Chehalis 

need it most. 

We have double digit unemployment now going on three years. 

This deduction allows the average family that I serve to keep 

$500 a year in money that they have earned. It is their money. 

That is a lot of groceries and a few tanks of gas. It gives the family 

savings account a much needed cushion. It is small but it is needed, as folks struggle to find employment and to make their mortgage payments. 

Unfortunately, the folks in Southwest Washington and in these 

other states have become accustomed to an 11th hour extension for 

this common sense deduction, and I am hopeful that we can prevent that this go around. 

It should be simple. Let’s extend the state and local sales tax deduction for folks in Southwest Washington who have already dutifully paid their taxes, and let’s work to make this a permanent solution. 

I will continue to be a champion for this cause until we reach 

that goal. Thank you both for your time. 

Chairman TIBERI. Thank you. The gentleman from Florida is 

recognized. 

STATEMENT OF THE HONORABLE THEODORE DEUTCH, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA 

Mr. DEUTCH. Thank you, Mr. Chairman, Mr. Ranking Member, 

for the opportunity to testify about the production tax credit. 

You might wonder why a member from the Sunshine State cares 

about wind. The truth is the PTC has made it possible for wind energy to be relevant for communities all across the country, like the 

one I represent in South Florida. 

The credit had made investments in domestic renewable energy 

production a cost effective venture. It should serve as a working example of how the Federal Government can be an ally to the private 

sector, promoting growth and creating jobs. 

The $3 billion invested through the production tax credit has 

generated 10 to $20 billion of annual private sector investment. 

With more competition, wind only gets better. Since enactment 

of the PTC, wind energy has become 30 percent more efficient and 

30 percent cheaper. 

Extending the production tax credit will continue this incredible 

progress and is vital to the industry’s continued success. 

Even as we discuss these issues, the plans for an inland wind 

project in my home of Palm Beach County, Florida are moving forward. This development would have been laughable a decade ago. 

The technology just was not there. 

Once the turbines in Palm Beach County start turning, Floridians will benefit from what the breeze brings in, affordable wind 

energy means lower utility bills and more money in families’ pockets. 

I am also pleased to say the largest developer of wind energy in 

the country and the second largest in the world, NextEra, calls 

Florida home. 


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Wind supports over 2,000 Florida jobs and counting. It is even 

propelling our manufacturing sector forward with 15 Florida companies building component parts for wind. 

Through the PTC, the Federal Government transformed wind energy from a green dream to a competitive reality. If we were foolish 

enough to abandon this initiative, the great progress we have made 

towards a competitive wind market will come undone. 

Creation of a completely new energy sector is not easy business. 

Wind production often takes a year and a half to get off the ground, 

finding a site, navigating regulations, securing manufacturers, and 

completing installation. All of this must occur before a company 

even qualifies for the credit. 

Just the possibility of the expiration of this incentive is freezing 

projects and costing jobs. 

NextEra has not placed a single manufacturing order for 2013 

because of the pending expiration. 

The suspension of growth endangers 37,000 manufacturing jobs 

throughout America, including North Florida, home to a major turbine manufacturer. 

Wind means lower cost for consumers, new jobs in every field 

imaginable, enhanced national security, and a healthier environment, but for the American people to reap these benefits, energy 

policy must be stable and continuous. 

Clean domestic energy and low rates can go hand in hand. Florida Power and Light, the utility providing electricity for most of my 

constituents, has one of the cleanest emissions profiles in the country with rates below the national average. 

The question before this Committee is whether you are willing 

to make the proper investments now to reap the rewards of cleaner, cheaper American energy today and for decades to come. I respectfully urge the Committee to extend the production tax credit 

as soon as possible, and I yield back the balance of my time. 

Chairman TIBERI. Thank you. Thank you all for being here 

today to testify. The Ranking Member and I were just talking 

about the number of people today, not just at this hearing, three 

out of six, who brought up the production tax credit. 

Anybody here care to answer this question, whether you testified 

on it or not? We have some colleagues who believe that the production tax credit picks winners and losers. Any comments? 

The gentleman from California. 

Mr. GARAMENDI. Actually, it does not. The production tax credit does pick among in this case the wind turbine industry, no winner or loser. Anyone that is capable of putting up a turbine and 

producing energy, the key here is actually producing energy. It is 

on the production that they get the credit. 

It may pick winners and losers between solar, wind, nuclear and 

the rest, but the ‘‘all of the above’’ strategy would require the production tax credit to be in place for the wind industry and hopefully a similar one for the solar industry. 

Chairman TIBERI. The gentleman from Florida. 

Mr. DEUTCH. I would just add it has absolutely picked winners. 

The winners are the American people. Tens of thousands of jobs 

and 10 to $20 billion of private sector investment, that is a winner 

for the American people. 


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The wind industry is not asking for the production tax credit to 

go on indefinitely. We are at the point where the industry has been 

able to move to the point where it has been successful and with the 

extension for a limited amount of time, they will be in a position 

to ensure that this kind of growth can continue for the future. 

Chairman TIBERI. Thank you. Mr. Latham. 

Mr. LATHAM. I would just echo what my two colleagues said. It 

is about production. That is what you get the credit on. It is not 

just the wind energy. It is also, like the gentleman from Washington here mentioned, although land owners and people who get 

income from this very efficient today source of energy, clean, renewable, and it is something that has to continue. 

The industry is looking for certainty. If there is a phase out of 

the credit over time where they can plan, then in fact it will work. 

Right now, this cutoff is just devastating to the industry. Like I 

mentioned, it is going to cost—in Iowa already jobs are being terminated because of no purchase orders for next year, for the next 

calendar year. 

It is absolutely critical that we extend this credit. 

Chairman TIBERI. Mr. Neal. 

Mr. NEAL. That is precisely the point, Mr. Latham, we have 

been making today and during these hearings. 

For us what is fascinating is left, right and center, members who 

have testified today have put ideology aside and emphasized the 

success that the production tax credit has had. I think that is what 

is notable about this hearing. 

I might just ask Ms. Beutler a question. The gentlelady testified 

about the sales tax deduction for Southwest Washington. Might I 

infer your entire—— 

Ms. HERRERA BEUTLER. My entire state would benefit, as 

would the seven other states that do not have a Federal income 

tax. 

Mr. NEAL. I knew that is what you meant. I just wanted to get 

that on the record. 

Ms. HERRERA BEUTLER. I am really focused on the folks at 

home, but Mr. Chairman, Ranking Member, can I weigh in on the 

production tax credit? 

Chairman TIBERI. You may. 

Ms. HERRERA BEUTLER. As someone who does not necessarily 

have a dog in this fight, I am ‘‘all of the above’’ when it comes to 

energy. 

I would ask that this Committee consider, and it is going to be 

a little out of step with everyone sitting here, but in the Great 

Northwest, we have a tremendous opportunity with our hydro system. 

It is a low cost form of energy that is incredibly efficient and 

carbonless. It is very renewable. 

We have companies that have located in Southwest Washington 

from other nations, manufacturing jobs, high paying jobs, because 

of our access to affordable energy. 

As we are moving forward, one of the challenges that we have 

had, and again, I am not anti-wind, I support wind, but because 

they get this credit for producing, they are forcing the issue with 

the Bonneville Power Administration to require that ratepayers use 


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their energy because they only get the credit if they produce, which 

requires us to spill more water over dams and endanger salmon 

that ratepayers in our region are spending billions of dollars to protect. 

I guess I say all that to say it is not a perfect system and there 

are unintended consequences that drive up the costs for businesses. 

I mentioned the double digit unemployment, so for those seeking 

work in my area. 

As we move forward, let’s move with caution and make sure Congress does not pick winners and losers. 

Chairman TIBERI. Thank you. You talk about fish. I think of 

Mr. Nunes when I think of this Committee and fish. 

Thank you all for spending time with us today. 

We have most of the panelists from our last but not least panel. 

I would ask Mr. Pompeo, Mr. Blumenauer, Mr. Reed, Mr. Boren, 

and Mr. Reichert to come up. 

I thank the five of you for being so punctual. We are running a 

little bit behind. We have plenty of time since you are the last 

panel. 

I will start to my far left, Mr. Reed, the gentleman from New 

York, and our distinguished member of the Committee, is recognized to testify. 

STATEMENT OF THE HONORABLE TOM REED, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK 

Mr. REED. Thank you very much, Mr. Chairman and Ranking 

Member Neal. Thank you for allowing me the opportunity to testify 

today. 

I would like to briefly discuss four provisions important to both 

New York’s 29th Congressional District and New York State overall. 

First is H.R. 4336, a bill I introduced with several other Committee members. It is a straight one year extension of a tax relief 

provision which ensures that when lenders forgive a portion of a 

borrower’s mortgage obligation, the homeowner is not required to 

pay tax on the amount of the forgiven debt. 

If this extension is not enacted, homeowners who are in short 

sales or foreclosures, and even those who are able to restructure 

existing loans and keep their homes, will be required to pay income 

tax on cash which they never actually had. 

Unfortunately, the housing crisis persists. This relief, which 

passed initially on a vote of 386–27, is still needed. 

I would also like to speak in support of H.R. 3087, the Motor 

Sports Fairness and Permanency Act, which makes permanent the 

classification of motor sports complexes as one single asset. Motor 

sports tracks, small and large, have used the present system of depreciation for decades. 

Congress codified the policy that made this classification clear 

and permanent as part of the American Jobs Creation Act of 2004. 

The policy was made temporary by the House and Senate Conference Committee on that bill, but it was always intended to be 

permanent. 


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The importance of the annual NASCAR Race at Watkins Glen, 

New York, in my District to my constituents cannot be understated. It is the economic equivalent of the Super Bowl for us. 

However, this provision has been mischaracterized as a tax break 

for NASCAR. In fact, NASCAR tracks account for only a small fraction in the motor sports tracks around the country affected by this 

provision. 

These tracks exist in every state, in most of our Districts, and 

conduct motorcycle races, dirt track races, and more. They are 

mostly in small rural communities and support fans that support 

the local economy, sustain local jobs, and fill the diners and hotels 

throughout the area. 

Uncertain tax treatment for motor sports facilities threatens jobs. 

I also wish to comment on the CFC look through. I am a co-sponsor of H.R. 2735, the bipartisan bill introduced by Mr. Boustany 

and Mr. Kind to make this provision permanent. 

Look through merits inclusion in any extenders package. It helps 

our economy by leveling the playing field for U.S. companies operating abroad. 

The final provision I want to speak on is the active financing exception under Subpart F or the AFE Rule. This provision simply 

extends to financial services companies the same deferral rule that 

applies to manufacturers with respect to active income earned in 

foreign markets. 

Equal treatment for financial services income should be a normative principle we follow on a permanent basis in any tax system, 

whether it be worldwide or territorial. 

I am proud to be a co-sponsor of legislation introduced by Chairman Tiberi and Ranking Member Neal to make the AFE Rule permanent. 

Again, Mr. Chairman, thank you for the opportunity to testify 

today, and I look forward to any thoughts or questions you may 

have. 

Chairman TIBERI. Thank you for your testimony. 

The gentleman from Kansas is recognized to testify. 

STATEMENT OF THE HONORABLE MIKE POMPEO, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF KANSAS 

Mr. POMPEO. Thank you, Chairman Tiberi, thank you, Ranking 

Member Neal, for giving me this opportunity today. 

You know, in preparing this testimony, I looked at the list of 

credits that you had and the enormous scope and span reminds us 

all about the importance of tax reform. 

I want to applaud you all and Chairman Camp for efforts to get 

rid of particular tax credits and deductions and flatten our Tax 

Code. 

I have echoed this sympathy in a piece of legislation that Chairman Camp is pursuing related to energy tax credits in particular. 

I think it is consistent with a vision of a fair and simpler Tax 

Code that aims to stop picking winners and losers in the energy 

marketplace. 

I would argue that one of the most if not the most egregious example of our Tax Code failures lies in these energy tax credits. 


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You all have a big challenge. My Energy Freedom and Prosperity 

Act gets rid of every energy tax credit in the entire Federal Internal Revenue Code. It is industry neutral. It impacts natural gas 

and oil tax credits. It impacts the entire panoply. 

The savings are small, but any savings that are generated as a 

result of that to the Federal Treasury go to lowering tax rates, the 

perfect model both for good energy policy and tax reform. 

I think it is common sense and it is being actively supported by 

small Government conservative organizations like Americans for 

Tax Reform, the National Taxpayers Union, Heritage Action, the 

Club for Growth, Freedom Actions, Americans for Prosperity, and 

many others. 

They understand that trying to solve energy problems through 

our Tax Code is the wrong approach. 

We saw that not in the Tax Code, but in the Committee I sit on, 

we saw when you try to pick a particular winner, the negative outcomes that can happen for taxpayers. 

I have heard comments today on the wind production tax credit 

in particular. It is of great interest. I know it expires at the end 

of this year. 

I do not predict the doom and gloom for the wind energy that 

these folks speak of. I actually have more faith in the wind folks. 

I am incredibly pro-wind. I think it will work. 

We saw what happened when the ethanol tax credit expired at 

the end of last year. We still have very successful ethanol projects 

moving forward all across the country in spite of the fact that the 

industry said without it, we will vanish. 

I think the same good things will happen because the wind energy folks are so innovative, creative and talented. 

I know it is the tradition in this Committee and the Congress to 

treat the Tax Code as a base of support for specific industries. 

No one knows wind like someone from the Kansas 4th Congressional District. We have both the manufacturing side and the production side of the wind energy industry present in my District. 

When I think about job creation, I do not think about things like 

temporary stimulus programs. I think they fail. I see these series 

of tax credits for the energy industry much as various stimulus 

programs are, they are temporary, they are constantly up for renewal. 

Industry will tell you I just need one more year, and then one 

year later be back saying I need two or four or six additional years. 

Eventually, these companies have to take the training wheels off. 

These industries have to go compete and provide affordable energy 

for American citizens. 

I am confident they will, and if we stop trying to use our Tax 

Code to pick one against another, we will get a lot further down 

that road, and we will be much closer to solving the nation’s deficit 

problems that we face today. 

I thank you for the time this morning. 

Chairman TIBERI. I thank the gentleman for his testimony. 

The gentleman from Oregon is recognized. 


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STATEMENT OF THE HONORABLE EARL BLUMENAUER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OREGON 

Mr. BLUMENAUER. Thank you, Mr. Chairman, Ranking Mem- ber Neal. I appreciate this opportunity. You have been hearing 

from a variety of folks. I respect my colleague from Kansas. I think there is some signifi- cant differences. Ethanol, for example, had benefitted from years 

and years and years of massive subsidy, which has also been lavished on other sources of energy production. What we are talking about here with wind and other renewables is allowing them to get the same foothold. There is a reason for the production tax credit and why it has been extended seven times since 1992. I will be submitting a letter 

from some of my Democratic colleagues, but I would note strong bipartisan support, and pleased to be a co-sponsor with my friend 

from Seattle, Mr. Reichert. 

We spend billions of dollars abroad every year to fuel our econ- omy. That is the tip of the iceberg in terms of billions more spent 

protecting the oil supply militarily. Being able to invest in the PTC is a much better investment to unlock a nearly unlimited source of domestic energy while supporting a market that is projected to grow to more than $2 trillion 

by 2020. We are starting to get some market based orientation, a number of states not only have utility scale wind projects, they have utility 

frameworks like Kansas that require renewable energy to be purchased. 

I have never heard the wind energy people say give me just one year. What they are looking for is certainty and a glide path to sustainability. 

Every conversation I have had with the industry for the years I 

have been in Congress talks about giving them a framework, giving 

them a path that is sustainable over time, and not giving them this 

Russian Roulette. 

We are already seeing contraction in the industry because of uncertainty going forward. It is absolutely essential that we give some 

certainty for the investment, to provide the ability to come to scale 

and reduce costs. 

We have seen significant progress in this area, and I think with 

your help, a little certainty, we can do more in the future. 

It levels the playing field for other sources of energy that have 

received far more in the past, most of which continue to get it now, 

even past when they need it. 

It gives the private sector the confidence it needs to continue investing in renewables. 

I am looking forward to working with this Subcommittee, with 

our committee, on the hard task of reform of the tax system. It is 

not going to be easy, but it is not about picking winners and losers, 

it is about being able to discern where it makes sense and where 

it does not. 

The production tax credit, I think, is one area that makes sense. 

It will for the foreseeable future, but it does not need to be permanent and in fact, should not be, but it should not be pushed off the 

cliff this year. 


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Thank you. I appreciate the chance to testify and would welcome 

comments or questions later. 

Chairman TIBERI. I thank the gentleman from our committee as 

well who just got appointed to the Transportation Conference Committee. Congratulations. 

Mr. BLUMENAUER. Thank you. 

Chairman TIBERI. The gentleman from Oklahoma is recognized. 

STATEMENT OF THE HONORABLE DAN BOREN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OKLAHOMA 

Mr. BOREN. Thank you, Mr. Chairman, thank you, Ranking 

Member Neal, for giving me this opportunity to speak with you all 

about the extension of two tax measures, credits for the renewable 

energy production and for businesses on former Indian lands. 

H.R. 1039 is a bill to permanently extend the Indian employment 

tax credit in the depreciation rule for property on former Indian 

lands. 

Because of Oklahoma’s Native American heritage, two-thirds of 

the state and my entire District qualifies for a tax incentive for 

businesses located on former Indian lands. 

With Tribal unemployment rates soaring to 80 percent in some 

regions, this tax credit is especially important because it encourages businesses to employ Native Americans. 

It also encourages businesses to increase wages, helping to fight 

the Native American poverty rate, which is at about 26 percent, 

over double that of non-Natives. 

This tax credit is absolutely vital to the continued growth and 

development of Tribal communities. It has the support of the entire 

Oklahoma Delegation, and I wholeheartedly ask for your deepest 

consideration of its extension. 

Another very important issue at the top of America’s agenda is 

energy independence. As an outspoken critic of our nation’s dependence on foreign oil, I ask for an extension of the renewable energy production tax credit. 

This bill has 93 bipartisan co-sponsors ranging from Mr. Markey 

as the Ranking Member of the Natural Resources Committee, to a 

fellow oil and gas supporter, like me, Mr. Young. 

In short, whether we agree on energy policy or not, this tax credit is widely accepted as a positive step toward a self-sustaining energy infrastructure. 

This five year extension is a proven way to keep electricity prices 

low, using clean domestic sources of energy. 

We must extend and stabilize this tax credit to ensure continued 

investment and encourage further research in this important field. 

Again, thank you very much for allowing me to speak today on 

these two credits, and I would be happy to answer any questions. 

Thank you. 

Chairman TIBERI. I thank the gentleman for his testimony. 

Last but not least, the distinguished member of this panel, the 

gentleman from Washington is recognized. 


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STATEMENT OF THE HONORABLE DAVID REICHERT, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

WASHINGTON 

Mr. REICHERT. Thank you, Chairman Tiberi and Ranking Member Neal, and Mr. Paulsen. Thank you for the opportunity to 

testify today. I am proud to be a part of the ongoing effort and work that our committee, the Ways and Means Committee, is doing on comprehensive tax reform, both in the corporate world and in the individual tax reform world, so that American businesses can better 

compete in the global economy, and American families can keep 

more of their hard earned money. Today’s review of tax extenders is critical to tax reform, as you all know, and I appreciate the chance to offer my suggestions today 

on how this tax extenders package might be put together and 

formed for our committee and the country that we serve. As a representative from Washington State, no statement on taxes can begin without reminding you of a tax incentive that affects every single taxpayer, Mr. Neal, in the State of Washington, 

not just in Southwestern Washington, as you mentioned earlier. Mr. NEAL. Would the gentleman yield? I am glad you picked up on that. I was concerned. 

[Laughter.] 

Mr. REICHERT. I am sure she meant the entire state also. The 

state sales tax deduction is so critical to that handful of states 

across our country that has the state sales tax versus the state income tax. 

For us, it is a matter of fairness. Those states that have the income tax, of course, that law is in law. They do not have to ask 

for a tax extender. This is an important and critical thing for our 

taxpayers in Washington State to have equality and fairness really 

across the board and across this country. 

It would really be a tremendous tax relief for our citizens. I urge 

your consideration. 

I encourage the Committee to consider two other tax extenders, 

one would leverage maximum private sector capital, and the other 

that I would like to talk about would also create jobs and sustain 

American jobs. 

Two tax extenders. One is the production tax credit that has 

been talked a lot about today. It has leveraged $15 billion in private sector capital in the wind industry alone. 

It includes wind, hydro, geothermal, landfill waste, biomass, so 

it is not just about wind, but it has all those other components to 

it. 

That is nearly 12 times the revenue estimated for the bill, $15 

billion, 12 times the revenue estimate. 

The investment supports an increasing number of manufacturing 

jobs, not to mention the services jobs, that design and finance these 

capital intensive energy projects. 

It puts Americans to work, lowering energy costs for other Americans, and is worthy of an extension as has been said many times 

today. 

I am pleased there is such strong support in Congress and in the 

Ways and Means Committee for extending the production tax credVerDate Mar 15 2010 09:14 Jun 07, 2013 Jkt 079894 PO 00000 Frm 00077 Fmt 6633 Sfmt 6602 I:\WAYS\OUT\79894.XXX 79894

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it. That includes a majority of the members on this Subcommittee, 

14 members of the Full Committee, and 95 Members of Congress 

representing 32 states who have co-sponsored the bill I introduced 

with Mr. Blumenauer. 

An estimated 37,000 American jobs are at risk if the PTC is not 

extended. If Congress is truly committed to pursuing the ‘‘all of the 

above’’ energy policy and bringing needed certainty to the economy 

for job creators, extending the PTC can achieve both. 

I am pleased to submit a letter from several House Republicans 

who agree. 

[The prepared statement of The Honorable Dave Reichert follows:] 


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TESTIMONY OF THE HONORABLE DAVE REICHERT tWA-8) 

U.S. Representative - Eighth District, Washington Member, 

U.S. House Committee on Ways ond Meons 

u.s. House Committee on Ways and Means 

Subcommittee on Select Revenue Measures 

Hearing on "Certain Expiring Tax Provisions" 

Thursday, April 26, 2012 

1100 Longworth House Office Building 

Washington, DC 
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Chairman Tiberi, Ranking MemberNeal, and Members of the Sub~ommilleefhan~ you for the opportunity to te~tify today. I applaud your leader~hlp in advancing 

comprehensivelaK relorm, and I am proud to be a part of the ongoing work thaI the Ways and 

Mea", Committee is doing to assess variOUS reform options and chart a path to a simpler 101' 

code that ensure~ American buslnes~es un compete in the globa l economy and American 

families can retain more of their hard-earned money. 

Todays reviewol many uplred or expiring tax proylsions Is an essential component 01 

the drive toward lax reform. You can add mv voice to the bipartisan chorus acknowledging that 

OUr ta. code is far too compil.·', and I belieye this Comminee must continue to eliminate 

wastellll, Ineffecllye ta~ pmvlslons. BUI we must also acknowl edge thaI there Is a role for 

certain bUSiness and IndiVidual tax incentives to plav both as a bridge to lax reform and as a 

continued catalyst for job creation ind economic rl'covery. I appreciatl' Ihe chancl' 10 offer my 

sugge5l10ns for key laK provisions Ihal should be extended. 

AS a Represenlatlve from WashIngton Stall', no discussIon aboullax potlcy [an beglr} 

without mentioning a provision that affecu every single liJpaVer in our stale-Ihe stllte lind 

local slIles toxdeduction. II is simply a mallerol falme55 far Washington and other Slates 

without a Slate Income tax to extl'nd Ihis vilal dl'ductJon. Our laxpavers deserve Ihe same 

certainty and predictability in the ability to deduct these laca ll;lxes as residenuc of every other 

Slate, I will continue 10 flghlto extend and make permanent th is essentia l tax relief for my 

state, as I have sough! eyeryvear since I came to Congress, 

In 'eYil'wlnll 'lax eXlenders: I encollrage Ihl' Commitll'e 10 priorillze oonsidl'ratlon 01 

thOSe tax proviSions that 1) leYerage the maxImum priVate sector capital and 2) have the 

greatest demonslrated potential to crea'e and su!>la in American jobs. 

BUSiness Extenders That Lo;vrraee Private capit,,1 and Creal e JOb5 

I know many Ml'mbers will join me in expressing support for long-slanding, 'traditional' 

incentives like the reseorch tllxcredftthat help American buSinesses Innovate and grow. But I 

want to emphasile today IWO e",ensions 01 currenl tax law Ihat I authored that havt' a 

demonslraled ability to leye ag~ plivale capital and ereall' job.: the renewable energy 

product jon to" credit (H.R. 330?) and Ihe fi ~e-)l f!O' hllldjng period for built-In gllins f or small 

buslnl'sses orgonlll'd os S corporotlons (H.R. 14?S). 

In the past six years, Ihe production til" credit (PTe) leveraged billions of dollars of 

private Investment In AmerIcan manufacturing - $60 b1lf,on In Ihe WInd Industry alone, where 

the credit has successfully grown our domestic manufacturing capabilities fram 25% ofwrbine 

valul' to over 60% In the same tlml' frame, Studies suggest thaI the PTC leveraged $1S.S billion 

in private taplt,,1 in the wind Industry annually SInce 2005, nearlv 12 times thelOlnt Committee 

on Ta1l<ltian's revenue estimate for the PTe. And that figure does not even account far the 

2 
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inVe5tment that the f>TCspu .s in other qualifying renewable fe50UrCe§, induding hydropower, 

geothermal, biomass, and landfill waste projects.. 

The production tax credit alr;o has a proven record of creating and sustaining American 

jobs. It not only supports al'! increasing number of domestic manutacturingJobs, but it alr;o 

suppOrts the services sector Job~ that desigl'! and finance these capital-intensive energy 

projects. I believe a tax IncentIve that serves the dual purpose 01 puttJng Americans to wor~ 

lowering energy COStli lor othe r American families and businesse, is worth~ of ~~tension. 

Givt'n the significanllime, labor, and capital involvP<i in bfinging these energy projl'cts 

onlinl', a 5trong case can be made tor the urgent need 10 e~lend the production tax c.edit in 

the next available tax vehicle In order to stave off the dire economic consequences of its 

looming expiration. A recent Navigant ConSUlting study ,ndicates that the failure to extend the 

f>TCwould put 37.0Cl0 American jobs in tile wind indUStry at risk. I have heard from countless 

manufacturers. utilities, and developers how the uncertainty over whether the f>TC will be 

extended Is already causing lay-offs, project delays, and cancellations. With energy prices 

volatile and economic recovt'ry lragile, now ll; not the time to Ireele job-o;reating, private 

investment in a key sector. 

I am pleased tha t there is such strong. bipilrtlsan support in Congre5S and in the Ways 

and Means (ommlnee for e)(lending the production tax cledit, including a majolltv oj the 

membels of tile Subcommittee on Select Revenue Measures, 14 members of the full 

Committee, and the 9S Members ot Congress representing32 states who havt' cosponr;ored the 

legislation I Introduced with Ways and MOldnS colleague £arl Blumenauer (O-OR). Induded in 

my t(>stlmony is a letter signed by House Republicans who al~ belre~e tlla! an e~tenslon of the 

f>TC is consistent with seeking "all of the above~ energy solutions and bringing needed policy 

certaInty lor American Walkers, induslrie§, and investols. 

Mo ;ng forward, how tile Committee addresses an eJ<lension of lhe PTC can have a 

significant Impact on the path to tax reform. I am encouraged that the wind Industry Is a lready 

contemplating howlt might transition off of the f>TCas the fndusuy matur(>s; this kind 01 

advanced thin king is needed mOle broadly In our ongoing delibera tions aboutta~ reform. Both 

congressional Republicdns and President Obama have called lor an "all ollhe above" energy 

policy strategy, and tax policy Is an integral- if not foundational- component of any strategy to 

lower energy costs far American familia and businesses, diversify our nalion's energy supply, 

and move toward energy Independence._ In taking up energ~ tax reform, the Committee shOUld 

continue to consid(>r how a~ policylnlersects with our nation's natural and renewable energy 

resource5, the issues of energytransmiss;on and §torace, and increasing energy efficiency in 

homes, buildings, and vehicles. 

Tile reduced fiv~reor "alditlfl period/or built-in gains in small bus;nenes orQrmlud IU 

S corporations is another tax pro~lsion that leverages private capital and creates Americanjobs. 

This common sense measure that I authored as parI of a broader package with Congressman 

Ron Kind (O-WI) enatiles S corporations to access their own capital sooner. An April 2011 study 

, 
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by D •. Robert Carroll (Ernst &Young) found that businenes organized as flow-through entities 

account lor more than half of ali private ~r:tor jolM in the United States, and 56% in 

Washington State, One out of e~erv tour of t hes.e workers is employed by;ln S corporation, 

nabling yores 01 these businesses to continue unlocking their own capital sooner Is 

one of many actions Congress (;iIn ta~e to help small bUSinesses acceu the resources needed to 

grow their businesses and cr~ale jobs. The holding period lor built-in gains reverted to )0 y~ars 

with the expiration of this pfOvision In 2011 - meanjng that If Congress fails 10 ar:t, bUSinesses 

that converted to 5 corporation status must wait a decade to acces.5 their own capital or face a 

punitive ta~ . 

I am grateful that SubcommltteeChilirman TIberi cosponsored my S Corpora lion 

Modernization Act, and I would also like to submit for the hearing record a letter from 13 

organllations representing millions of small businesses avoss America who support an 

extension 01 this provision, 

Indiyidual b tenders that leve.age Private Cilpital and Invest in Communiliei 

Just as I urge the Committee to conslder bUSiness ta~ extenders that leverage private 

capital. so too should the Committee consider individual ~~ ntenders that do the !KIme for the 

broad benefit of communitie~. Tax incentlve~ Ihal ~ncourage investment In ~duc tion and 

philanthropy merit strong support, 

I am proud to champion an eKtemio~ of the dedur:tlonforeducators' olJt-o/-pocket 

dOJSroom elfpenses (H.R. 1738), a long-standing. bipartisan priority for this Committee thaI 

was previously sponsored by now-Chairman Oave Camp (A-Mil and currently enjoys the 

support of 98 ember~ of Congress, 10 of whom serve on the Ways and Means Committee. 

Strong public education depends in part on equipping leilchl!rs with adequaleresources 

to help students succeed. According to 2006 data from I he National Education Association 

(NEA), educators ~enl ,In a~erage of $4n out of Ihelr own paycheclG just to purchase basic 

classroom supplies like books, pencils, and paper. The National School Supplv and Equipment 

Association rei used data from the 2009-2010 school year demonstrating that public schOOl 

teichers spent more than $1.3 billion out-of-pocket on classroom materials, Ninety-two 

per",nt of teachers polll!d reported that thl!Y had spent some of their own money on 

classroom materials. 

These educators are demonstrating such a commitment to Investing In their students 

that they are reaching into their own pocketbooks 10 p,ovide classroom matenals and further 

their own profession;ol development. h lending the deduC\ion for out-of-pocket dassroom 

expenses has a leveraging effect by recognizing and encouraging the continued personal 

financi al investment these educators are making in Iheir students", I am pleas.ed to include with 

my testimony a statement from the 3.2 million members of the NEA In support of my bill. 

4 
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Simllarlv, I strongly support to .. policy l'wt nc(lUl"(Jges thar/lablt gilling, Congressman 

John larson (D-CTl and I have worked closely tOGether to support the philanthropic efforts of 

public charities and private foundations, Especially in these difficult ~conomic tim~s, charities 

and foundatlOnS play an increasingly Important role in providing basic se ..... ,ces for children, 

families, and others struuling to mak!! ef\ds meet, Illave seen fimhand the impact Ihat 

philanthropic organizations like Northwestl1a ..... est, the College Success Foundation, l1ablt at for 

Humanity, the United Way of KlnG County, the Gates Foundation, and the Newman's Own 

Foundation are making in underse ..... ed communities in Washington State and acress th~ 

countrY. The Committee Should remain mindful of the role that ta~ policy (an plav In leveraging 

charitable giving to organirations that do 50 much good for those in need. 

In closing, I commend the5ub(ommlttee for holding this hearIng and prolllding members 

on and off of the Ways and Means Committee with the opportuniW to share their views on 

e~plred or expiring tilX provisiOlls. I am eager to continue working closely with mv Committee 

colleaGues on both sides of the aisle 10 review and advance 'tax extenders' that le""rage private 

capital and crealejobs as we make further progress loward comprehensNe ta ~ r~orm. 

DAVE REICHERT 

MembEor of ConGress 

Eighth District, ~hington 

s 
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"'lmll6, 20 ! 2 

Extend the 5-Year Holding Period for Built-In Gains 

Dc"' "' cml"' .... " fln.: linus" Way. and Mean .• Commltlee: 

A~ ... p .... .;~nlall'K of Am~r5c:l'~ 'm 1I Md <lj)"'ly-h.~d bu.lne>"~. w~ .. ~"ectl"ully 

.neo","g<'- you 10 "~Ie!ld th~ S-y.,.r holding pertod fIIr buill-in Vln •. " ko:y provlS,on or!lle 

blp"n' •• n SCo'porotjon ModeT1ll:Quon Act (Hn 1~ 1a) Introd"""d by W.Y' "lid Meon, Commin ... 

mcmbr .... lJ.". Reidlcrtln-WA) ann non Kln~ (1)..WU· 

Sm.l! bmine .... ~'" Ih~ elll:"'~ 01 AII'~rlra· . econolnlc ~ruWlIl and S ru/"»Orallons ... th~ 

<orne"Hont of the ,mall bu,lne,. conlnlUnlly. Tkore a ..... "early 4.5 ,nillion S rorpo"'''''''' 

n"liollwldc. 71,.y ~, .. in ~nry cnnrmulIlly and OYOI"I' Indu'lry. A r«. "t.ludy by Or. Rok~n Ca.,.oll 

(F.mu & \'oun&) round tIlal S cO'lK'",tlon ...... ,1",lticant ,ource of 1<>1 .. a. well .• mplo)'ln~ one Oul 

or coel)' rour pri'vllM .ecto, workers. 

Uniliw. pub lic: tomp,nies, these dOS<!ly· held bUSinesses h,,,,, linle or no ac<~ .. 10 the Ilublie 

<opi,o l marltclS. They .-..lyon bolnks. Ih~y .... Iy on rel.tiYe., ~nd they rell' on their own .JSC!tJ for 

inv.stment and working ""pi"'l. An .,Itt'rly Inng bujlt_in g~ in ~ '''-'' .... ""'bll~l th;, di.>ad~antll8" by 

preventing <"O""" ... od S rorpordtion' from putting the r~plrdl tl",y ,~"dy ron,rol to h • .,er u .... 

5 "".",,,,,lIon. ,kould nUl "" blo<:l<,ro m in' .<"Ct'SSinK Ih.". own ,·aJlII.I; th_ at~ <fIIlca l 

' .... "',..,.... Ihalallow l"j""l ~ ... ,ml,.nl .. to !';I"OW therr b ... in ~ ..... """~" jobs. and ..,ma", 

<oo"f"'l ili ..... 

On heh.lf of A'""rlco·. 101 .10 51"",i h".in~ .. ro,om"nlly, w. ".p"Clfully a.k thai YOII """lid 

lhe S-yea r holding JI"ri(X\ I(,r b"ilHn gal os. 

Th~n~)'1)u lor y~ur conslde' .!!"n. 

Sincerely. 

Am rlC"~n [o""ell t:ng ln ""rl n~ Co"'pan les 

", •• ""Ioud Build ... a nd [ontracto .. , 1,,<. 

IIId. "."denl Con,munlly BOllk ... or AII,erlc. 

Nalton,,1 lIeer whot .... I." A •• ""I.Uon 

N .. tlDnal federation ollod.pendent Bu.ine ... 

N~lion.1 FUlle",1 Directors A$.odaUon 

Nolio",,' 5 .. 1311 Bu,'neSJ As$ocla Uon 

Prhuln& IIId~ strl~ . of Anterka 

Proli:.sslonat llea .. ty AssociatiDn 

lloollog Contract or~ A$~""I.U on 

5 Corpora tion Association 

U.s. ["altlber IIfCommerre 

Wln~ and Spirll. Whol ~.,.ler" of "mcrln 

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l'~.tln,ony Submitted roc the lI~cocd 

U.s. How;~ orll r~ ta v"" Co",mllt..., 0" ~ys a nd a"s 

Subcomn,llIee "" el~c llI~. "". Measuces 

It ea rinK un Ceruln f.xpirln8 Ta . Prnvlsh,,,. 

Ap<i126. 201 2 

Chair",",n Tiberi .nd M~mb;.·rs 0(,11. S""'ommln ... On tK.h.lf of,he 3.2 million m.nlb~,.,. l>f,ile 

NJ\iu"al E:<Iuc;lI,on As-sod .. (ion (NEA). we ,h"n~ y<K' for Ihe "PlIOrn,n;ty lo~"bmil ,he~ co",,,,en15 

(",·,ho '<Q ~ In ,oni"ntt;"n with Ihe h •• rin8 on «ruin 011'irin8 'a~ p",vl,lon •. Th .. " comments 

f<><tls on tw" s pecific expiri ng t:I~ pnllde$ _ !he educ3'''' 130 d.duttlt>n .od !h~ Qu"loll.d Zo". 

Ar3ll.my Bond tQZAB) I'rog"""'. 

Ex.end Ibe Ed" "" .". Ta . lleducUon 

NEA otl'ongiy . "pporu an •• '£n.lon of !h •• du,."" to. dctJurtl .. ", IN, <."Il1kill deductlon, whlctJ 

•• plred a. "'. end of'he 2011 tu year, ""',," r.n>&nl. ~ the financ'al •• crific~ , m.d. by le""I ...... 

and ~UO;O"Qn jUpport prof.,.,IQnJI$. 

Ed"ca.o ... olton ",och in.o .h~icown pocke .. to p""'has~ elm,,,,,,,, ,uppl;oli>c""u", they want to 

m.k~ Sur" Studenu It:Ille wh .. "'oy no<'{l .o sut"t'~, St"dl,,> . how!hat educa.oe,; ar" ~p< ndl"g 

moro of "'Nr OWn fund. ~~ch 1""' 10 supplY thcir <I ... too,n. a~d purctJ.", "$Sf.,ial Itt'n'" , uch as 

p,.,lI., gl" " '<"""". ~tIll facial U .. ,,<,>. According t" NEA'. most .... """t ."I"Vt')', 'l? potun! of 

educato,.". 5Urv~ctI ;ndIC3t~d Ihat. ill ZOO6, Ih.y had .pell! .,,",. oflholrown "'''''.y to me.t th .. 

n...us of !h.lc "udoms, Tho.e ""ucaIO" sp"nt an . ver.lg<' of $471 3 ye.r out "f Iltelr own I>ocket. 

'0 p""ha,. "."""'0) OUPI,li •• ,u,h •• book>, pencil •• paper, ond art .uppa .... ' 

M.ny t't!lIcatoro art Fmdfng Ihe need In ..... cll In.o th.ir own 1><><""'1 h •• incr ..... d I" tit .... dlffi<:\tlt 

",onomic lime."" f"nd'lI3 culS I.~d 10 ,hort_g(:' in ••• ~n.; l '"Pplt~, and m"",, studenn <ome'O 

;«hool wlth"ut "",>< learning '001., A 1'<j!e mojunty oreduc""'r$ ~IIO >""IId"n average of$15 3 

month ou, or"'eir oWn pock.1S to foed . tudents. 'Slal~' "ff~" ""'Mm. PubliC Sc/>OOI Teacher 

lOOS-2U06. M~l"Ch Zijlo.f 

Th. n""d Ibe .h .. "" "p"ndlrur.' I. "'" surp".lng, IIcrortlln8 '" F,m Focu" 

2.1 ",1111011 ,no," d,ildrM lived Witll ~n un"n,plo~ !,"rom during a 1)/1'",,,1 monti, in 2011, 

(o mp.",d ~ 2007 [an I",,~,se o£11'1O), \lrlnging th~ 20' 1 tOI~1 Ie 6.5 million <nlldr.n, 

S milli"" [H'IO oftho$C IIOIng wltll an ",,~mployed ,,"ren,) lived, d"rln~ a \yp,c.ol 2011 mo,,'h, 

willi a parent ""omplo}",d 51. month. or 10"g~!"; 

11 nt,IIo"" ,,,or. ~dd'!lnn.1 ch,ldren r.lIed ulIOn SNAP rOFfood in 2011, <XIn p;ir~ 102007, 

brfngtng 11t~ total n"mll<'r of children rN<!ll1inS S~AP t ... 21 million (on" In four): 

16 nt;(lion ctJildr." ["'0'" tlton on. 'n five) cu, ... lIly 11.0 Itt p<lv~ny ' 

Tllel'<l" "" .or .... deduction LS ~ blpartj$~n re""~niti"n ofed"CiI'Ql'$' finanCl,1 .. crillc"" 01 won .. <>1 

.It., n •• d. of.ru<Wnt< who la,k ~en Ihe ba.i< ne«SSJlI •• for .... cce's 1I,«hool. ""tending It ,~II\ 

mako a real d.lfec""ce for many ed"c:>!o .... who c(len n'Uil sa"ilke other pers".,.1 ,,<'Cd. In "r<l~r 

'0 p.y mr <i:oss"",m s upphe. ~nd ;n.",mional ,n terI 3L~ 

N"~' W"'· .. .,., 1I ... ",io';"~ • .$U<I., ~r''''A ... ~~_ l'.bI,,· .!<·,..i1I_1on- ~' :I/II(}, M. ,,, lO'Q. 

~ I~ld 

'Ilor I/.,: .. """'~ (-'"11".." I""J<oCI .. "./_~·. t' ~IIJf"< .. , 1",/""""" _/n-.o) ,-,,,,.,,,,,,,. >r,II·tkl~. 1""'~"" 

!~i I. lu'" ,""',,., 1I~""iol' ""~"'"",, [10.;,",1>« !(III 

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78 

f 

Mr. REICHERT. A second bipartisan extender I introduced with 

Mr. Kind from Wisconsin is the reduced holding period for built in 

gains. Simply put, this common sense bill enables S corporations 

to access their own capital sooner. 

Fifty-six percent of the private sector jobs in Washington State 

are in small businesses across this country. We all hear from these 

businesses in our districts. They are struggling to access capital. 

My bill is an easy way to help them do just that. 


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79 

I would also like to submit a letter from 13 organizations representing millions of small businesses across America who support 

this provision. 

[The prepared statement of The Honorable Dave Reichert follows:] 


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TESTIMONY OF THE HONORABLE DAVE REICHERT tWA-8) 

U.S. Representative - Eighth District, Washington Member, 

U.S. House Committee on Ways ond Meons 

u.s. House Committee on Ways and Means 

Subcommittee on Select Revenue Measures 

Hearing on "Certain Expiring Tax Provisions" 

Thursday, April 26, 2012 

1100 Longworth House Office Building 

Washington, DC 
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Chairman Tiberi, Ranking MemberNeal, and Members of the Sub~ommilleefhan~ you for the opportunity to te~tify today. I applaud your leader~hlp in advancing 

comprehensivelaK relorm, and I am proud to be a part of the ongoing work thaI the Ways and 

Mea", Committee is doing to assess variOUS reform options and chart a path to a simpler 101' 

code that ensure~ American buslnes~es un compete in the globa l economy and American 

families can retain more of their hard-earned money. 

Todays reviewol many uplred or expiring tax proylsions Is an essential component 01 

the drive toward lax reform. You can add mv voice to the bipartisan chorus acknowledging that 

OUr ta. code is far too compil.·', and I belieye this Comminee must continue to eliminate 

wastellll, Ineffecllye ta~ pmvlslons. BUI we must also acknowl edge thaI there Is a role for 

certain bUSiness and IndiVidual tax incentives to plav both as a bridge to lax reform and as a 

continued catalyst for job creation ind economic rl'covery. I appreciatl' Ihe chancl' 10 offer my 

sugge5l10ns for key laK provisions Ihal should be extended. 

AS a Represenlatlve from WashIngton Stall', no discussIon aboullax potlcy [an beglr} 

without mentioning a provision that affecu every single liJpaVer in our stale-Ihe stllte lind 

local slIles toxdeduction. II is simply a mallerol falme55 far Washington and other Slates 

without a Slate Income tax to extl'nd Ihis vilal dl'ductJon. Our laxpavers deserve Ihe same 

certainty and predictability in the ability to deduct these laca ll;lxes as residenuc of every other 

Slate, I will continue 10 flghlto extend and make permanent th is essentia l tax relief for my 

state, as I have sough! eyeryvear since I came to Congress, 

In 'eYil'wlnll 'lax eXlenders: I encollrage Ihl' Commitll'e 10 priorillze oonsidl'ratlon 01 

thOSe tax proviSions that 1) leYerage the maxImum priVate sector capital and 2) have the 

greatest demonslrated potential to crea'e and su!>la in American jobs. 

BUSiness Extenders That Lo;vrraee Private capit,,1 and Creal e JOb5 

I know many Ml'mbers will join me in expressing support for long-slanding, 'traditional' 

incentives like the reseorch tllxcredftthat help American buSinesses Innovate and grow. But I 

want to emphasile today IWO e",ensions 01 currenl tax law Ihat I authored that havt' a 

demonslraled ability to leye ag~ plivale capital and ereall' job.: the renewable energy 

product jon to" credit (H.R. 330?) and Ihe fi ~e-)l f!O' hllldjng period for built-In gllins f or small 

buslnl'sses orgonlll'd os S corporotlons (H.R. 14?S). 

In the past six years, Ihe production til" credit (PTe) leveraged billions of dollars of 

private Investment In AmerIcan manufacturing - $60 b1lf,on In Ihe WInd Industry alone, where 

the credit has successfully grown our domestic manufacturing capabilities fram 25% ofwrbine 

valul' to over 60% In the same tlml' frame, Studies suggest thaI the PTC leveraged $1S.S billion 

in private taplt,,1 in the wind Industry annually SInce 2005, nearlv 12 times thelOlnt Committee 

on Ta1l<ltian's revenue estimate for the PTe. And that figure does not even account far the 

2 
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inVe5tment that the f>TCspu .s in other qualifying renewable fe50UrCe§, induding hydropower, 

geothermal, biomass, and landfill waste projects.. 

The production tax credit alr;o has a proven record of creating and sustaining American 

jobs. It not only supports al'! increasing number of domestic manutacturingJobs, but it alr;o 

suppOrts the services sector Job~ that desigl'! and finance these capital-intensive energy 

projects. I believe a tax IncentIve that serves the dual purpose 01 puttJng Americans to wor~ 

lowering energy COStli lor othe r American families and businesse, is worth~ of ~~tension. 

Givt'n the significanllime, labor, and capital involvP<i in bfinging these energy projl'cts 

onlinl', a 5trong case can be made tor the urgent need 10 e~lend the production tax c.edit in 

the next available tax vehicle In order to stave off the dire economic consequences of its 

looming expiration. A recent Navigant ConSUlting study ,ndicates that the failure to extend the 

f>TCwould put 37.0Cl0 American jobs in tile wind indUStry at risk. I have heard from countless 

manufacturers. utilities, and developers how the uncertainty over whether the f>TC will be 

extended Is already causing lay-offs, project delays, and cancellations. With energy prices 

volatile and economic recovt'ry lragile, now ll; not the time to Ireele job-o;reating, private 

investment in a key sector. 

I am pleased tha t there is such strong. bipilrtlsan support in Congre5S and in the Ways 

and Means (ommlnee for e)(lending the production tax cledit, including a majolltv oj the 

membels of tile Subcommittee on Select Revenue Measures, 14 members of the full 

Committee, and the 9S Members ot Congress representing32 states who havt' cosponr;ored the 

legislation I Introduced with Ways and MOldnS colleague £arl Blumenauer (O-OR). Induded in 

my t(>stlmony is a letter signed by House Republicans who al~ belre~e tlla! an e~tenslon of the 

f>TC is consistent with seeking "all of the above~ energy solutions and bringing needed policy 

certaInty lor American Walkers, induslrie§, and investols. 

Mo ;ng forward, how tile Committee addresses an eJ<lension of lhe PTC can have a 

significant Impact on the path to tax reform. I am encouraged that the wind Industry Is a lready 

contemplating howlt might transition off of the f>TCas the fndusuy matur(>s; this kind 01 

advanced thin king is needed mOle broadly In our ongoing delibera tions aboutta~ reform. Both 

congressional Republicdns and President Obama have called lor an "all ollhe above" energy 

policy strategy, and tax policy Is an integral- if not foundational- component of any strategy to 

lower energy costs far American familia and businesses, diversify our nalion's energy supply, 

and move toward energy Independence._ In taking up energ~ tax reform, the Committee shOUld 

continue to consid(>r how a~ policylnlersects with our nation's natural and renewable energy 

resource5, the issues of energytransmiss;on and §torace, and increasing energy efficiency in 

homes, buildings, and vehicles. 

Tile reduced fiv~reor "alditlfl period/or built-in gains in small bus;nenes orQrmlud IU 

S corporations is another tax pro~lsion that leverages private capital and creates Americanjobs. 

This common sense measure that I authored as parI of a broader package with Congressman 

Ron Kind (O-WI) enatiles S corporations to access their own capital sooner. An April 2011 study 

, 
83 


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by D •. Robert Carroll (Ernst &Young) found that businenes organized as flow-through entities 

account lor more than half of ali private ~r:tor jolM in the United States, and 56% in 

Washington State, One out of e~erv tour of t hes.e workers is employed by;ln S corporation, 

nabling yores 01 these businesses to continue unlocking their own capital sooner Is 

one of many actions Congress (;iIn ta~e to help small bUSinesses acceu the resources needed to 

grow their businesses and cr~ale jobs. The holding period lor built-in gains reverted to )0 y~ars 

with the expiration of this pfOvision In 2011 - meanjng that If Congress fails 10 ar:t, bUSinesses 

that converted to 5 corporation status must wait a decade to acces.5 their own capital or face a 

punitive ta~ . 

I am grateful that SubcommltteeChilirman TIberi cosponsored my S Corpora lion 

Modernization Act, and I would also like to submit for the hearing record a letter from 13 

organllations representing millions of small businesses avoss America who support an 

extension 01 this provision, 

Indiyidual b tenders that leve.age Private Cilpital and Invest in Communiliei 

Just as I urge the Committee to conslder bUSiness ta~ extenders that leverage private 

capital. so too should the Committee consider individual ~~ ntenders that do the !KIme for the 

broad benefit of communitie~. Tax incentlve~ Ihal ~ncourage investment In ~duc tion and 

philanthropy merit strong support, 

I am proud to champion an eKtemio~ of the dedur:tlonforeducators' olJt-o/-pocket 

dOJSroom elfpenses (H.R. 1738), a long-standing. bipartisan priority for this Committee thaI 

was previously sponsored by now-Chairman Oave Camp (A-Mil and currently enjoys the 

support of 98 ember~ of Congress, 10 of whom serve on the Ways and Means Committee. 

Strong public education depends in part on equipping leilchl!rs with adequaleresources 

to help students succeed. According to 2006 data from I he National Education Association 

(NEA), educators ~enl ,In a~erage of $4n out of Ihelr own paycheclG just to purchase basic 

classroom supplies like books, pencils, and paper. The National School Supplv and Equipment 

Association rei used data from the 2009-2010 school year demonstrating that public schOOl 

teichers spent more than $1.3 billion out-of-pocket on classroom materials, Ninety-two 

per",nt of teachers polll!d reported that thl!Y had spent some of their own money on 

classroom materials. 

These educators are demonstrating such a commitment to Investing In their students 

that they are reaching into their own pocketbooks 10 p,ovide classroom matenals and further 

their own profession;ol development. h lending the deduC\ion for out-of-pocket dassroom 

expenses has a leveraging effect by recognizing and encouraging the continued personal 

financi al investment these educators are making in Iheir students", I am pleas.ed to include with 

my testimony a statement from the 3.2 million members of the NEA In support of my bill. 

4 
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Simllarlv, I strongly support to .. policy l'wt nc(lUl"(Jges thar/lablt gilling, Congressman 

John larson (D-CTl and I have worked closely tOGether to support the philanthropic efforts of 

public charities and private foundations, Especially in these difficult ~conomic tim~s, charities 

and foundatlOnS play an increasingly Important role in providing basic se ..... ,ces for children, 

families, and others struuling to mak!! ef\ds meet, Illave seen fimhand the impact Ihat 

philanthropic organizations like Northwestl1a ..... est, the College Success Foundation, l1ablt at for 

Humanity, the United Way of KlnG County, the Gates Foundation, and the Newman's Own 

Foundation are making in underse ..... ed communities in Washington State and acress th~ 

countrY. The Committee Should remain mindful of the role that ta~ policy (an plav In leveraging 

charitable giving to organirations that do 50 much good for those in need. 

In closing, I commend the5ub(ommlttee for holding this hearIng and prolllding members 

on and off of the Ways and Means Committee with the opportuniW to share their views on 

e~plred or expiring tilX provisiOlls. I am eager to continue working closely with mv Committee 

colleaGues on both sides of the aisle 10 review and advance 'tax extenders' that le""rage private 

capital and crealejobs as we make further progress loward comprehensNe ta ~ r~orm. 

DAVE REICHERT 

MembEor of ConGress 

Eighth District, ~hington 

s 
85 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.008

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.009

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, 
87 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.010

"'lmll6, 20 ! 2 

Extend the 5-Year Holding Period for Built-In Gains 

Dc"' "' cml"' .... " fln.: linus" Way. and Mean .• Commltlee: 

A~ ... p .... .;~nlall'K of Am~r5c:l'~ 'm 1I Md <lj)"'ly-h.~d bu.lne>"~. w~ .. ~"ectl"ully 

.neo","g<'- you 10 "~Ie!ld th~ S-y.,.r holding pertod fIIr buill-in Vln •. " ko:y provlS,on or!lle 

blp"n' •• n SCo'porotjon ModeT1ll:Quon Act (Hn 1~ 1a) Introd"""d by W.Y' "lid Meon, Commin ... 

mcmbr .... lJ.". Reidlcrtln-WA) ann non Kln~ (1)..WU· 

Sm.l! bmine .... ~'" Ih~ elll:"'~ 01 AII'~rlra· . econolnlc ~ruWlIl and S ru/"»Orallons ... th~ 

<orne"Hont of the ,mall bu,lne,. conlnlUnlly. Tkore a ..... "early 4.5 ,nillion S rorpo"'''''''' 

n"liollwldc. 71,.y ~, .. in ~nry cnnrmulIlly and OYOI"I' Indu'lry. A r«. "t.ludy by Or. Rok~n Ca.,.oll 

(F.mu & \'oun&) round tIlal S cO'lK'",tlon ...... ,1",lticant ,ource of 1<>1 .. a. well .• mplo)'ln~ one Oul 

or coel)' rour pri'vllM .ecto, workers. 

Uniliw. pub lic: tomp,nies, these dOS<!ly· held bUSinesses h,,,,, linle or no ac<~ .. 10 the Ilublie 

<opi,o l marltclS. They .-..lyon bolnks. Ih~y .... Iy on rel.tiYe., ~nd they rell' on their own .JSC!tJ for 

inv.stment and working ""pi"'l. An .,Itt'rly Inng bujlt_in g~ in ~ '''-'' .... ""'bll~l th;, di.>ad~antll8" by 

preventing <"O""" ... od S rorpordtion' from putting the r~plrdl tl",y ,~"dy ron,rol to h • .,er u .... 

5 "".",,,,,lIon. ,kould nUl "" blo<:l<,ro m in' .<"Ct'SSinK Ih.". own ,·aJlII.I; th_ at~ <fIIlca l 

' .... "',..,.... Ihalallow l"j""l ~ ... ,ml,.nl .. to !';I"OW therr b ... in ~ ..... """~" jobs. and ..,ma", 

<oo"f"'l ili ..... 

On heh.lf of A'""rlco·. 101 .10 51"",i h".in~ .. ro,om"nlly, w. ".p"Clfully a.k thai YOII """lid 

lhe S-yea r holding JI"ri(X\ I(,r b"ilHn gal os. 

Th~n~)'1)u lor y~ur conslde' .!!"n. 

Sincerely. 

Am rlC"~n [o""ell t:ng ln ""rl n~ Co"'pan les 

", •• ""Ioud Build ... a nd [ontracto .. , 1,,<. 

IIId. "."denl Con,munlly BOllk ... or AII,erlc. 

Nalton,,1 lIeer whot .... I." A •• ""I.Uon 

N .. tlDnal federation ollod.pendent Bu.ine ... 

N~lion.1 FUlle",1 Directors A$.odaUon 

Nolio",,' 5 .. 1311 Bu,'neSJ As$ocla Uon 

Prhuln& IIId~ strl~ . of Anterka 

Proli:.sslonat llea .. ty AssociatiDn 

lloollog Contract or~ A$~""I.U on 

5 Corpora tion Association 

U.s. ["altlber IIfCommerre 

Wln~ and Spirll. Whol ~.,.ler" of "mcrln 

, 
88 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.011

l'~.tln,ony Submitted roc the lI~cocd 

U.s. How;~ orll r~ ta v"" Co",mllt..., 0" ~ys a nd a"s 

Subcomn,llIee "" el~c llI~. "". Measuces 

It ea rinK un Ceruln f.xpirln8 Ta . Prnvlsh,,,. 

Ap<i126. 201 2 

Chair",",n Tiberi .nd M~mb;.·rs 0(,11. S""'ommln ... On tK.h.lf of,he 3.2 million m.nlb~,.,. l>f,ile 

NJ\iu"al E:<Iuc;lI,on As-sod .. (ion (NEA). we ,h"n~ y<K' for Ihe "PlIOrn,n;ty lo~"bmil ,he~ co",,,,en15 

(",·,ho '<Q ~ In ,oni"ntt;"n with Ihe h •• rin8 on «ruin 011'irin8 'a~ p",vl,lon •. Th .. " comments 

f<><tls on tw" s pecific expiri ng t:I~ pnllde$ _ !he educ3'''' 130 d.duttlt>n .od !h~ Qu"loll.d Zo". 

Ar3ll.my Bond tQZAB) I'rog"""'. 

Ex.end Ibe Ed" "" .". Ta . lleducUon 

NEA otl'ongiy . "pporu an •• '£n.lon of !h •• du,."" to. dctJurtl .. ", IN, <."Il1kill deductlon, whlctJ 

•• plred a. "'. end of'he 2011 tu year, ""',," r.n>&nl. ~ the financ'al •• crific~ , m.d. by le""I ...... 

and ~UO;O"Qn jUpport prof.,.,IQnJI$. 

Ed"ca.o ... olton ",och in.o .h~icown pocke .. to p""'has~ elm,,,,,,,, ,uppl;oli>c""u", they want to 

m.k~ Sur" Studenu It:Ille wh .. "'oy no<'{l .o sut"t'~, St"dl,,> . how!hat educa.oe,; ar" ~p< ndl"g 

moro of "'Nr OWn fund. ~~ch 1""' 10 supplY thcir <I ... too,n. a~d purctJ.", "$Sf.,ial Itt'n'" , uch as 

p,.,lI., gl" " '<"""". ~tIll facial U .. ,,<,>. According t" NEA'. most .... """t ."I"Vt')', 'l? potun! of 

educato,.". 5Urv~ctI ;ndIC3t~d Ihat. ill ZOO6, Ih.y had .pell! .,,",. oflholrown "'''''.y to me.t th .. 

n...us of !h.lc "udoms, Tho.e ""ucaIO" sp"nt an . ver.lg<' of $471 3 ye.r out "f Iltelr own I>ocket. 

'0 p""ha,. "."""'0) OUPI,li •• ,u,h •• book>, pencil •• paper, ond art .uppa .... ' 

M.ny t't!lIcatoro art Fmdfng Ihe need In ..... cll In.o th.ir own 1><><""'1 h •• incr ..... d I" tit .... dlffi<:\tlt 

",onomic lime."" f"nd'lI3 culS I.~d 10 ,hort_g(:' in ••• ~n.; l '"Pplt~, and m"",, studenn <ome'O 

;«hool wlth"ut "",>< learning '001., A 1'<j!e mojunty oreduc""'r$ ~IIO >""IId"n average of$15 3 

month ou, or"'eir oWn pock.1S to foed . tudents. 'Slal~' "ff~" ""'Mm. PubliC Sc/>OOI Teacher 

lOOS-2U06. M~l"Ch Zijlo.f 

Th. n""d Ibe .h .. "" "p"ndlrur.' I. "'" surp".lng, IIcrortlln8 '" F,m Focu" 

2.1 ",1111011 ,no," d,ildrM lived Witll ~n un"n,plo~ !,"rom during a 1)/1'",,,1 monti, in 2011, 

(o mp.",d ~ 2007 [an I",,~,se o£11'1O), \lrlnging th~ 20' 1 tOI~1 Ie 6.5 million <nlldr.n, 

S milli"" [H'IO oftho$C IIOIng wltll an ",,~mployed ,,"ren,) lived, d"rln~ a \yp,c.ol 2011 mo,,'h, 

willi a parent ""omplo}",d 51. month. or 10"g~!"; 

11 nt,IIo"" ,,,or. ~dd'!lnn.1 ch,ldren r.lIed ulIOn SNAP rOFfood in 2011, <XIn p;ir~ 102007, 

brfngtng 11t~ total n"mll<'r of children rN<!ll1inS S~AP t ... 21 million (on" In four): 

16 nt;(lion ctJildr." ["'0'" tlton on. 'n five) cu, ... lIly 11.0 Itt p<lv~ny ' 

Tllel'<l" "" .or .... deduction LS ~ blpartj$~n re""~niti"n ofed"CiI'Ql'$' finanCl,1 .. crillc"" 01 won .. <>1 

.It., n •• d. of.ru<Wnt< who la,k ~en Ihe ba.i< ne«SSJlI •• for .... cce's 1I,«hool. ""tending It ,~II\ 

mako a real d.lfec""ce for many ed"c:>!o .... who c(len n'Uil sa"ilke other pers".,.1 ,,<'Cd. In "r<l~r 

'0 p.y mr <i:oss"",m s upphe. ~nd ;n.",mional ,n terI 3L~ 

N"~' W"'· .. .,., 1I ... ",io';"~ • .$U<I., ~r''''A ... ~~_ l'.bI,,· .!<·,..i1I_1on- ~' :I/II(}, M. ,,, lO'Q. 

~ I~ld 

'Ilor I/.,: .. """'~ (-'"11".." I""J<oCI .. "./_~·. t' ~IIJf"< .. , 1",/""""" _/n-.o) ,-,,,,.,,,,,,,. >r,II·tkl~. 1""'~"" 

!~i I. lu'" ,""',,., 1I~""iol' ""~"'"",, [10.;,",1>« !(III 

, 
89 

f 

Mr. REICHERT. These are the two extenders that leverage private capital to create jobs, both that face looming expirations, and 

both deserve the Committee’s consideration on tax extenders. 

I appreciate your time. Thank you. 

Chairman TIBERI. Thank you. I thank you all for your testimony and time today. With that, I will recognize the Ranking 

Member, Mr. Neal. 

Mr. NEAL. Thanks, Mr. Chairman. These hearings have been instructive. The panelists have really been good. It is a pretty good 

snapshot of why tax reform will be so difficult. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.012
90 

We have had Members of Congress here left, right and center, 

who have all argued for their favorite tax preference. 

I will say, Mr. Pompeo, and this may be helpful to you in your 

own constituency, you are the only Member of Congress today who 

has made the argument for getting rid of all the production credits. 

I dare say there are not many Members of Congress more conservative than Mr. King, and he made a pretty aggressive argument today. 

Chairman TIBERI. Mr. King of Iowa as opposed to Mr. King of 

New York. 

Mr. NEAL. Right. Although I know him, and he can make some 

pretty good arguments. 

[Laughter.] 

Mr. NEAL. The point that I raise is that the discussion we have 

had here today really centers upon incenting people, as many of 

the panelists have said, not permanently but through the stage of 

infancy as the technology grows and improves. 

We heard Mr. Latham suggest, for example, that his constituency, without that production credit, many potential investors as 

well as those who hire people are about to serve notices on them 

that they are going to be laid off. 

My own experience tells me in this stage of development, we are 

going to continue to need some sort of support inside of the Code 

for that purpose. 

I would use the argument as many panelists have said, ‘‘all of 

the above,’’ that is a pretty easy position to rally to, but also to acknowledge that without Government guarantees, you are not going 

to build any nuclear power plants. 

If you embrace the position I think of ‘‘all of the above’’ or in your 

instance, ‘‘none of the above,’’ apparently, in terms of using the Tax 

Code, I am just curious as we talked about it, would you apply that 

to large oil companies as well? 

Mr. POMPEO. Absolutely. 

Mr. NEAL. Your legislation does not. 

Mr. POMPEO. It does, indeed. It has two tax credits, the marginal oil well tax credit and the enhanced oil recovery tax credit, 

each of which apply to the petroleum industry, the natural gas and 

oil folks. 

This is industry neutral. I agree with your point. We could absolutely create more wind jobs. We could make the production tax 

credit 90 percent. I am confident there would be more capital 

drawn to that. It is probably the case. 

We could make it 99 percent or 150 percent and probably create 

additional jobs and investment. We could do that for any energy industry. 

My notion is America is not at a place where we can afford to 

do that any more, protect the wind, it has been 20 years. That is 

a long time in my books. 

Mr. NEAL. For the purposes of intermural discussion, why do I 

not let Mr. Reichert take your argument on. 

[Laughter.] 

Mr. REICHERT. That would be just great. Appreciate your recognizing me to comment. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
91 

I do agree with the gentleman that ‘‘all of the above’’ is really 

the answer to not only economic security but to national security. 

I think the disagreement, of course, is we believe there should be 

incentive from the Government to help on some of these fledgling 

technologies. 

Again, this bill that Mr. Blumenauer and I have authored together includes more than just wind. 

The wind energy folks, again, I guess I would agree with the gentleman one more time, in that they are very innovative. Innovation, 

they are not only thinking about the technology, around the science 

of collecting wind energy, but they are also thinking about how 

they can transition themselves out of a tax extender. 

This is one of the very few groups that I think you have talked 

about and heard from today in this Committee that have actually 

started the process and started to think about a phase out of the 

tax extender, because they have confidence enough in the equipment, material and people that work in this industry to begin to 

have that discussion where others have not. 

Mr. NEAL. Mr. Boren, would you like to comment? 

Mr. BOREN. I just want to say with Mr. Pompeo, I think he deserves a lot of credit for being at least intellectually honest. 

I disagree with his position. That is why I am here promoting the 

production tax credit. I support a lot of those oil and gas industry 

tax credits that he is wanting to get rid of. 

So many people come up to these committees and say well, you 

know, do this but do not do this. At least he is being intellectually 

honest and saying you know, I want to get rid of all of it. As a 

friend and a colleague, I think he does deserve a lot of credit for 

having the courage to come up here where a vast majority of the 

people oppose his viewpoint. 

I just want to say that to a friend, and say I disagree with you, 

but good job for being here and being intellectually honest. 

Chairman TIBERI. Just a comment to the three of you, if any 

of you would like to comment on this. Mr. Pompeo has said, and 

he is not alone in saying this, he may have been alone in saying 

it today, but he is not alone in saying that if we get rid of all these 

tax credits on the energy side, and you alluded to it, there would 

still be an industry out there, pick the industry. It will still happen 

in the marketplace. 

Why is that thought process, if you three would like to comment 

on that, wrong? 

Mr. Blumenauer. 

Mr. BLUMENAUER. What is ignored is the sunk costs that we 

have had in these other sources. If you look at the extent to which 

we have subsidized the nuclear industry, I mean this is hundreds 

of billions of dollars. 

We have subsidized the production of oil and gas for over a century. I think we have reached the point where much of this is not 

needed, but it was absolutely necessary when drilling techniques 

were very scattered, expensive, and we did not have a petroleum 

industry, and we were trying to build it. 

In terms of, my word, the production of ethanol, we mandate that 

it be purchased, for Heaven’s sakes, and we massively subsidized 

the production of corn. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
92 

If you look at all the other investments, to help them come to 

scale, and then compare it to wind energy, which has been working 

for approximately 20 years, not uninterrupted by the way, but look 

at what has happened to the cost curve, we have had a very significant return on the investment. 

What Mr. Reichert mentioned is they are not asking, unlike most 

of the others, permanently being hooked up to the Federal Treasury, but having it come to scale and have a little bit of the investment that was given to nuclear, to hydro, to oil and gas is not, I 

think, unrealistic, and I think it is a good investment for these renewables, and not just wind. It is solar, geothermal. 

I think there is a strong case to be made to help them get to the 

takeoff point. 

Chairman TIBERI. Mr. Boren, I can tell you are itching to comment. 

Mr. BOREN. Let me touch on oil and gas just a little bit. We are 

actually in agreement on this wind or the production tax credit, not 

just wind, but as you mentioned, all the other, hydropower and everything else. 

Going back to oil and gas, oil and gas is a very complex industry. 

Most people think of oil and gas as just the big five oil companies. 

You will remember my former boss who was a member of this 

Committee, Wes Watkins, would talk about the mom and pop oil 

and gas producers. 

Most of the oil and gas production in the United States is by 

independent small producers. We have not always had $100 a barrel oil or $125, whatever it is on the market today. A lot of our production is very mature, so we have what is called ‘‘stripper well 

production.’’ 

You may have five to ten barrels of oil a day coming from a well, 

not thousands of barrels of oil. 

We give incentives for those small wells so that they stay alive. 

If they are not alive, you have to plug them, and that means our 

domestic production goes down and people like the Venezuelans 

and Saudi Arabia and other countries have a bigger market share. 

For us to be energy independent, we have to give incentives to 

our domestic industry, not big companies that are drilling in other 

parts of the world, but companies that are in the United States. 

I also believe we have to have an ‘‘all of the above’’ approach. We 

have to have wind. We have to have coal. We have to have nuclear. 

We have to have natural gas, which is clean domestic, and we have 

a Nat Gas Act. 

We have to do all of that. It is so complex, instead of just saying 

oh, big oil or big this or big that, it is much more complex. 

I think Mr. Neal kind of hit this on the head. You really have 

to peel back the onion. You have to look at these industries, and 

it is not as easy as just black and white. There is a lot of gray and 

there is a lot of looking at the long term, these investments in 

wind, making sure there is a marketplace for this to survive for a 

long period of time. 

You cannot use wind for baseload generation. You have to have 

it there to offset gas and coal and everything else. 

Thank you. 

Chairman TIBERI. Mr. Reed, you have a comment, I can tell. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
93 

Mr. REED. Yes. Thank you very much, Mr. Chairman. I would 

like to throw into this conversation a very important point when 

it comes to the energy tax policy for our nation. 

I think the primary motivating factor for that energy policy, tax 

policy, should keep in mind my priority in that arena, that it is a 

national security issue that we are trying to address with an ‘‘all 

of the above’’ approach, not only the environmental benefits, and 

we can get into that argument, but what we are talking about, and 

that is why oil and gas has to be part of that conversation, because 

there is a national security implication on this policy as a result 

of our dependency issues on foreign sources of energy. 

I would encourage the Chairman and the Ranking Member to 

look at this issue, not only from an environmental point of view 

and an economic point of view, which are very good points and 

issues, but primarily from the perspective of a national security 

issue when it comes to energy independence. That can never be lost 

in this debate. 

With that, I yield the balance of time. 

Chairman TIBERI. Mr. Reichert? 

Mr. REICHERT. Thank you, Mr. Chairman. If I can just play off 

most of what was said here, and there is a lot of agreement as you 

have heard. 

Number one, we all agree we want to be energy independent. 

Number two, that means getting off Mideastern oil and not being 

dependent upon that as our source. 

Number three, if that is accomplished, it really does enhance our 

ability to produce jobs here in America, but as Mr. Reed said, it 

also enhances our ability to make our nation safe and secure. 

Even before we start to talk about jobs, you have to talk about 

the national security. If our nation is not secure and safe, jobs become a topic of non-discussion. 

This point that Mr. Reed touched on is very critical for us to keep 

in mind as we move forward in this discussion of tax credits. 

The other thing that we agree on, I think, is yes, the free market 

is the place for these things to work. I think we did get a little bit 

side tracked as has also been mentioned over the years. 

I think initially these tax credits and incentives for certain energy producers were meant to be those sort of Government aids 

and assistance, and to help you get started, mature and grow into 

the companies, the private companies that we need you to be, 

strong enough to hold this country together and keep us safe and 

independent. 

We have gotten to the point today where those have become expected subsidies and expected credits. That is why I want to point 

out once more that the wind energy—the PTC, including more than 

wind, is a group of innovative people who have already said we are 

so far ahead in thinking, that we have already started to develop 

a plan to phase out the tax credits. 

I think that a lot of these other industries that we have talked 

about need to be thinking into the future as well. Let the free market work. Phase out of these tax credits, but they need to be helped 

today. Today is the wrong time to pull that money from wind and 

the rest of the energies that are included in the bill. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
94 

I appreciate the time to respond and testify today, and I thank 

you. 

Chairman TIBERI. Any other thoughts? 

Mr. REICHERT. One more thought. I am sorry. We have sort of 

done the same thing when it comes to the medical field. 

If you look at NIH, we are funding all kinds of technologies, 

sciences, and cures for cancer, et cetera, by subsidizing in grants 

and funding to help those things that help the people in this great 

country. 

Not permanent, moving toward the future, and encouraging 

these new sciences and new technologies, I think, is a benefit to everyone who lives in this great country. 

Chairman TIBERI. Thank you. Great testimony, great discussion, folks. We want to thank all our colleagues today from the very 

first panel to the last panel for a great discussion. Thanks for your 

time and your testimony. 

I want to also thank the Ways and Means staff, the Subcommittee staff, for preparing for today’s hearing. They did a great 

job. 

I want to remind anyone in the audience or our colleagues that 

they have until May 10, two weeks from today, to submit written 

statements for the official record. 

With that, this hearing is adjourned. 

[Whereupon, at 1:38 p.m., the Subcommittee was adjourned.] 

[Member Submissions for the Record follows:] 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS
95 

Rep. Aaron Schock, Statement 


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97 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.020

Congre~~man Bill Johnson Written Statement for 4/26/12 Select RevenueSubcommittee 

Hearing on Certain Expiring Ta~ Provisions 

Chairman TIberi, Rankmg Member Neal, and Members of the WaVS and MeansSUbcommitlee 

on ~leCl Revenue Meawres, thank Vall forthe opportunllV to submittestimonv tooaV. 

I submit this testlmonvln support of the eKtemion of the coke (fuel) credit provided under 

section 4SK(g) olthe tilK code. This taK code section provides a p.oduction credit for coke 

facilities placed in serviceb-efore January 1, 2010. I would urge the Committee to extend this 

date as far into the future as the Committee finds practicable because of the length of time 

needed to plan, permit and build a new coke fa dlilV. 

As the Committee mav be aware, coking Is a process very similar to making chartoal- but 

instead of wood, you are using coal to produce a different refined fuel that burns cleaner, 

hotter, and with additional properties than the coal it starts out with. Cake -apart from the 

.aw iron ore -,s a main, If not ~ primary, ,nput into the produdion of stee!' 

The coke "edit is a long·standlng tax credit with an equally long·standing policy bas's behind It. 

II was first "eated In 1980 for lacllities placed inlo service within the following 10 years. It ha. 

been renewed ever since, the last time as part of the Energv Act of 2005. While Congress first 

treated coke as an alternative fuel to oil In the 19!10 Act, it really is not. Coke Is a product of 

'1Ietallurglcal coal that is processed or baked to produce melallurgical coke. It is an essential fuel 

and chemical agent in the making of steel. It is in no wayan alternative to oil or gasoline. BUI it 

was not until the 2005 AClthal Congress began to recognize that. In Ihat ACI the benefit 01 the 

credit was adjusted downward since it had grown wilh the price of oil 10 which 11 wa~ 

tied ell!!n though it wu not an alternalil'l' 10 oil as a luel. In 2006 Con!lre~s addressed the other 

~ide of the '1ueU,on bV decoupling the coke credit from the phaseout of the credit that 

depended on the price of Oil. These changes are relevant because they were lmport~nt 

bac"-l!round to Congress' consideration of extenders in the December 2010ta~ bill. As I 

understand iI, Ihe elfort at that time was to extend "traditional" busine!>5 taK credits but not 

eKtend new ones. Since the coke credil had been redesigned in :ZOO5and 200610 refleCllhe 

correct understanding of what coke really is, It was viewed as a "new" credit and did not 

reteive an e)(tension. ThaI mistake needs to betorrected now. 

Thill mistake bor@consequences. Fortunately, the 200-own coke facilitv located in Haverhill, 

Ohio, was placed in service before the eKpiration of the credit. But, a facility in Middletown, 

Ohio, was unde. conWuctlon at the time of Ihe e~pifation. Plans for Ihat facililV were 

originated ,n 2007 with a goal of placing the Middletown plant In service before January 2010. 
98 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.021

With encouragement,n Congress for thee.ten510n, plan5 went forward but were delayed by 

litigation and regulato!)' hurdles. When the Middletown plant was completed ill No~embe' of 

21ll1, It becamt! tht! only modern-day plant erected without the benefit of the credit. 

fhe disparity between the COst5 of operation In Middletown compared with other facilities in 

the Unit~ States is a fact, but such disparity Is dwarfed when compared to foreign 

competitors. A ton 01 coke produced In Hawrhlll or Middletown com 5 to 7 times what it costs 

in China or India. Thai is because of en~ironmental regulations and the higher cost 01 U.S. labor. 

Since we ~alue clean air and support a well-paid wor~lorce in the United States, the way to 

address this compeliti~e imbalance is with an e~ ension of the coke credit. The policy 

alternative is to leI the conslruction jobs and full-time jobs that follow go overseas and weaken 

our capacity to produce world-class steel he re In America. If coke capacity moves offshofl', it is 

my fear that in Ume sleel will follow becaus.e of the wnergles Involved. In a modern heat--

recove!)' coke facillly, the water, coal·gas and coal-tar inherent in coal are captured and 

wmbusted during the baking pror:eS,S, thereby providing environmental benefits and a sou"e 

of energy for operatrng an adjoinIng steel plant. These synergIes disappear If the coke plants are 

built ofbhart'. 

The domestic coke Indu~try ~uppom an estimated 3,100 to 4,200 Americanjobs. Furthermore, 

construction of modern coke facilities in the U.S. typicaliV support 500 or more construction 

jobs for each new fadlity. Tht! policy alternative to extending thIs tredlt is to let thousands 01 

fUll-time jobs- and many more constnl(tJon jobs that follow go o~erseas and m!aken our 

eapacltylo prod~ce world-dan steel here In AmerIca. This ~ould ~Iso ImPilct tens of thous ands 

of loin in related industries like wal minins and steel prod~ctlon ,· 

Generally, l understand that many cokemaking iacilities in the U.S. are qu1te antiquated. They 

are less effkient and not as environmentally advanced as a modern facility. Of the 40 or SO 

coke lacil1til.'5 in the U.S., two-thirds are more than 2S years old. Nearly half <lfe over 50 years 

old. We ha~ 2 that are over 65 years old. It is generally not co~t elfectiw to modernize all old 

plant, so we need some new coke plants if w~ are to foster a healthy, producti~esteel induslry. 

I am supportIve of lookIng closely at the tax code and determinins what should stay and how 

we can simplify the tax code and lower rate s. Ullder tax reform, the coke credit s.hould be 

considered In light 01 those O'Ierarchlns goals. As Congres's considers which tax credits might 

be appropriate to extend thi~ year, it should review the coke cr1!dit and the polky basis for 

extending It. As a practical malter, Ihe co~e credit helps new la(,lilies bllilt wi th high 

environmental standards compete with foreign co~e fadlitie5 that have lower labor C05U and 

lower environmental standards. The coke qedi' helps makes the price 01 coke more 
99 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.022

competitive but, it ~hould be noted, does not come dose to offering a level playing field for our 

U.S. produ<ers or steel companies. Thus the credit serves to loster two related industries 

im?Ortantto the manufacturing sector in the U.S. I encourage the Committee to consider the 

wisdom and benefit to U.S. jOb5 and the economy in extending this long"time credit. 

The Honorable Bill Johnson 

Memberof Congre~s 
100 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.023

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thr<>Ugh<n:llndmtrics ;n"luding <11""1)'. ho:altllc...., •• ", ""1II""""'J. 

,\Jdiu",,.Uy. we ....... to <II'~'O ,llll! onc~ w~ d ••• 1op II(},-.I ."d '"'''' .. ,,'''' '"-'1<001"",,. Ammoan wo,un .... u...J 10 ~,.qd Jepl9)' th._ """'''''''3i",_ With An"",,,,,,, po)'illg 

hi"""",,'ly h.s/! pri ... 01 the pi""", nown"" .. i'I<"W t<'C",.,lolY lloe<lc.l ,,,,,,It 'h'" ,n !he en<rlIY 

>«"10<. Th" ",dud .. nlt:lld'n~ 1lrT<I op:iOlin¥ 10.. pro<!uc.I'Q11 _0<1 ''''''''''mOIl' , ... "",Itt.'< tbr Win.:! 

<D<'I'/I)' (H.R.JNI) lind )"ooi..." NOW I .... y 'I pO,,..] to b< a loadOl in '''''.oIT''''''''' "I\nd """'1Y 

it.JLJS'ry. 'Th O! io "'hy I h,"" '" trod""", ,"" ~uvi>i"aomn."" Wind P9W1:r A",(JUU2JS) • 

.... h,cIt und;.· .. '.nrU 'ha' lit.", i, Oil I;.';",wkd ,imor""". f""<:OnO!ruOIin, off ....... ,",'in<! f,I!m .. and 

",'m""'1<:$ "'" n<"lld fn< "",tlnoo,.;1y .,'ondi"lllM in" ...... '."" .... <n<ii. by ..w.i"lllhc 

inv ... , • .", ''''' ",edil .""il.blo lOr ,he nl'Jl 3.000 mop".lb of olr>hore win.l plrlO:cJ in sa""" Wi"""" w.",,,.,,,;,.n of "'" ,nv"",,,,,,,, ,or """-'it. it ... ill be.I""""<nJ'Oll.";blelo """ie ••• 

Ihlivifl.ll ollOh<>re .. ",'" mdo'lI)' ,n th", """"try oM "",lite lite lhowand. M '\meri""" jO\lo "" '" 

J<$perat<ly II<><d. 

All .... "'""kip.,", ompl"y ,«:hnol<l1lY '0 n>J1.>CC ...,< ,kpc,\<btC<l ,", f""';I:I' '''I<fIllI .... " .000,<1 

.1", be I<>()IQ'"~ I~ ~'" Ihll '!IlIS"fO",i, i, a viable .. d . t1""lAble m ... M.l O! C<)rIUtlulinl!- My 

homc.,at~~fNO\\'J< ... yi~ III<: ,,_ lkr.sely """u~,c.l st".,n AmOll<>1. ",'h 'PI''''''''',oIeiy 

1.100 "...,~Ie r<" "'I .... ~ m,,,,-- Tha. I. "hy 1167,00(1 "f~ fell"",;';ow 1""11)""" ""'""" '0 LISC 

N,) r,.""" ~ .. LI'''<l" .l~ ."""",ide ""b!;c Iran.it ').~t!IlI. These romm""" :Iho)uld "., 

l)lQvidcd ,he .orne I., beni:fi .. Ihlt' Mb<r coo>",u' ...... ·c obi. I<> r=jw 10 .«1",,< 'ho ",,,I of 

""mm"';n!\. tlnd tla, ;1 ",Oyl .. won ~'y for Ih. oxdU!",JII rnon \eoo .. M<rnpIQyorI"".....w ... " """,,' l " R. ~~ I~) 
102 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.025

FI""lIy. as wo "'~ ... 10 """"" , .... We d .... oIop ,one",at>!c llId <I.." """"'" or """'IIJI, "'e .... ,,10 

31m ... i .. in 'ho <I.."up or B",wnficld .itts, On. moclw!iJm "'" "'" _ .. I<> c<1cod 1M 

fltp"'n,i.ltl. To, l"""'li"", Th .. i""*'l>"vl: "'" aooist<t! In II!< .,Wil\lTlm ... loI 01 ...... "" ""'" or III 

.,.'im.k<lth= ~ndr«l o,nd ,en Ail.,. th~ New Jm<y fn." lOOl!hrnugh lIlO9, by 

",ok;".'! the C<Il. fully dN...,.ibl. in the 1""1' 11IC:\Imd. 

lbc>< pn'";"",,, ..... jw.t .... "pI. of ",h.t h ... II",adY""pir'" <>r "'hal ...... I<> ""pl..- at tho aM) 

M2012, While J lhank- ,.,.. tb< !hll 0IlP><'Ullity 10 ~i_ ""mt of!h .. n, r bcli<..-e thot ... fuU 

eXlmnlitke, we nood I<> .. _ in I m"re tho"'"'" oi.., ..... "" tho, itlOhHI<Il '=O;';"""'Y from .,pett. ond _ .11 ... «1 by the i""l.uton I)< OlIclusion oFtllC provision>, UnIOn"notoly, i, 

-.ot tn., polIi,;"",,", ,aI;"" (PI'C'O<'<knl, I ~tltat ,""",ill ~ obIe IOn... i .. llhi.u'l""_tnc 

....,.,. TIw1lc l"'I F, .. tlk,., the tin., .... OJ d_ """" io.weI:, "'hlclt J "_ ~eq>/) oboul. 

Si ... ...--o\)I, 

&ff~# M"",bor .fC""gre><I 
103 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.026

Congrenman Bill Shuster 

Hou~e Committee on Ways and Means 

SulKommiltee on Select Revenue Measures 

Hearing on Certain ExpiringTax Provisions 

Thursday, April 26, 2012 

Mr, Cljairman and members of tile Subcommittee, t/1a~k you fo. the opportu~ity to 

provide tMtimonl' on th""", Important issues. 

Ai; a Member of the COmmittee on Transportation ~nd Infrastructure and the Chairman 

of the Subcommittee on Railroads, Pipelines, and Halardous Materials, I appreciate the chance 

to offer my support for the 4SG shortJine rehabjlitatlon tax credit and am proud to be .. 

cosponsor of H.R. 721, le&islation to extend this credit that Is set to rucpire at the end 01 the 

year. 

Small. privatf!lyowned and operated frei&ht railroads play an import.nt and critical role 

In moving goods and raw materials, Exlendlngthe Section 4SG short line maintenance x 

credit is critical to preserving and improving the private sector's ability to maintain these 

important services. 

Acr05Sthe country. Section 4SG hilS shown tremendous rewlh. Short line railroads 

cOnnect over 10,000 customers atross America to the national freight railroad network. By 

maximizin& private Infrauructure investment, Section 45G has allowed th('Sl! railroad~ to 

provide their cu~tomerswi th more customized and competitively priced service. There ilre 550 

short line railroads operating some 50.000 fTIiles of ligl)t density rail line in 49 states. The 

purpose of the 45G credit is to allow these small businesses to invest more of what they earn 

in track rehabilitation. Put simply. the credit lowers [a~ rates on businesses :hat create jobs 

and generate econOmic growth, 

Most short lines operate track that was once owned by large railroad •. nistrac~ 

rece ived little Investment by its previous owners and Section 4SG is helpingsmall bOsinesses 

overcome their infrastructure shortfalls and ensure that t he vital link between local 

communities and the national freight railroad network will be pre~rved from abandonment. 

All of th,s Is accomplished by 550 small companIes with an average of]4 efT.ployees and 

median annual gron rl!'.lenuesof less than$5 million. As smaller, local businesses, short lines 

have been very succe~ful in turning these into profttable lines on a profit and 1055 basis. But 

they serve small customers that do not ship in volumes large enough to fund the enormous 

cost of eliminating this deferred .maintenance, Today, .hort line railroads rejnvest on average 

nea rly]O percent of their annual gross revenues in repairing and upgradingtheir 

infrastructure. 
104 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.027

Increa~ing private investmentby keeping taKes low ~treng hen~ our localeconomie~, 

benefit5customers who depend on efficient and competitive rail service. ~nd ma.imiles the 

ability to invest in private sector transportation assets. The 45G cfedit is not a federal grant 

nor is It a subsidy paid for bV the taxpavers at large. It simply allows these small businesses to 

keep more of what they earn to help them meet this huge capital requirement. And there Is 

strong evidence that it i~ working as intended. 

The primary beneficiarlesol the credit are railroad shippers. When their short line 

rililroad upgrades track thev rece ive filster, saler and more competitlvety prked seNitI.'. Most 

important. they can utilize the newer heaVier load railroad cars that have become the 

nandard for the Clan I railroad industry. These heavier cars require a much stronger track 

mucture "nd if the short line track is not upgraded \0 handle them. the shipper must send his 

product by much more npens(ve trlKk tra'1.sportation. 

The rehabllitationta. is first ilnd foremost about maximizing capltal investment. But in so 

doing. It is also about jobs, Most short lines do not have the in-ho use manpower to undertake 

rehabilitation projects and ",ust hire contractors aod laborers to do the worl<. In the beit 

traditIO" of American free mar~et capitalism thev have taken on considerable financial risk, In 

so doing theV have pre5cNcd local rail seNice for shippers, created Bood paving 

railroad jobs fO! workers and rebuill valuable railroad infrastructure. What they have earned 

theV have done throuBh hard work and determination. The 4SG tax credit allows them keep 

more of their own earning$ so thev can continue the task of febllildinB and strengtheningJocal 

railroad service_ 
105 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.028

.. .-_----

_._ ........ _. --"-' '-.. _-_. 

--,---

--- _ ... , ..... 

/[Ollgrrs5 O( rlJr mmtrb '&tatt5 

"oust of i\tprrstnl<lllbti 

11Ins:1ll1\ l~~ 1X 7,)5l3-lfo01 

_ ....... . ~- -'--

--_ --......... ----- _.- ----

Ap'ill . 2ft ll_ r~ . '0 Ih"n\. Ch"inn"" ) tll<:"; ""~ R" ,ll;;"lI M.",r.:rNo,,! r. .. "N ... idinf, 

Me'mlle", I'ilh on "f\II'M1unit) I" «lm",Onl "" lilt ionpiM't of ";)fi,')I" t.~pirin~ """,i,lPl» "r,he '"~ 

.Xl<k. I W()Uld j~.I" focu.- "" pro,isl",,, "hid, h.,-< htlpttl An",ricon, ,,-bUild aft~r 

."''''''''''kall~ di, ,,,,,,,,,,,, .,t"tS. I "'01" In~ tnlk.,!;u.;; '" lllke '" in "" Iio" In rdllIlhorutlh".., 

•. 'pi,,'11 or "" pirinf, pf1Jl'i.;",,,, broi,,,,, 11><:)' ha,'e pl.)'",j • l~) rule i" h"lpi"1: nl)' <()"" i",.,," 

"'buil!! IlI.irli,,", .n",II><:<k~""li,,,, "-r<lug/ll h) Ihuri<""., ".Inna. Rila "nJ ~~. 

,.. N . .. · "'. rk . .. Tat Cm i,· (>tc. 45D(/)II)). 

I onH\,<lu,',d llie 1,"'"""<II1II '<:1>1011 "llhe Nf" Ma ~ I .. , ... ,,'<1,1 ,,11I:n I "., a ~I~I" 

p<,"",nl"'i'~bll<'k in 2005. "', I h.a"" Ion., b<,'<.'" ~.<I1\II\l! ",ppiJrt, .. b."",,1$C "filS ' .... i"">" 

."",,, ... ie benefits. '" 'h" CUlT"'" ,-wnomie <"" i""'lnln'. pr(>g11ll1l, like Ne" Marl;~I~ ~ 

Cr«l;" Im ';la), "(his lIfOV,un Jon1l,,"'I1II'''' ,II< power "r pllbli'.p<i'·'IC pan,,,,""'ip-'. ""d lIIe 

""'.'" or pro"iJing in'''''lnlon, inCenli",. ... inll <TI,,,,ioo ,,~,I, Si",-" 2(10). ~Imo,' SI bi llioo;lI 

No" MarI;C'I' T .. ~ erroi" " ..... invos,aJ in mor< lha" 80 proj.."l$ .. "". N~~' 0rI".,, ~, 

F-"rt"i.lI)' .~cr Io:."inl<.. N"", M.rl<'~$ T"-~ (.m:i'l< hll e p,.}'aJ • 'ptt'al rule in e"'-"""""'ns 

lu ... IIIlf11i;.'<' dewl,,!,,,,,,,,, ,,.d j,'" <",:"i" ... 

Ther haw played ~ " Ile role in New OrJc~n" 1>\1' an: al><> hlg/1l}' CO«I\-'" "a,kln" ilk. Sine<' 

2003. demand Ii .. til. "",d;l< ha,. b<...,n nolollil, wi'" 0" .. S200 billioo """,II or dL,""nd. ("' ... 

600 "II"".,;""" n.\,. I>l:C" pi"". " ,111 """" ""'" $)U billion in cfl:di" .I1"","N.1'hcst 

inw"'mcnl'S ore I," , ... .q;<~ '0 ,-"",-"Ie j"b~ .,.,d .-.ju, '",aw nCig/1""",,-lOds. Thi,,' cn:dilllJould be a 

..". br-~it1<rM and I urg" m)" c()lIe"8ll<S Iu ..... ulh.-ori~c lh b cri,ical inl'tSlm.'l1 i".:rnlh ... and 

.'ami"" woy .. in "bieh the b<'Tldit$''''' b< m><k 1'1.1","<';". in onItr III ",11 .... , d", r ...... haI i, liM 

"(~ ",-"" "",hI";,.,j for the ",m,," fi"",1 j'e",", 

o. Di •• " .. II..n.( ...... "'1 Tn I'ro,'i, ;"n, Ih. , b 'pir<d in lOll 

l II;' """isf"" i. crilic.'I1~ im[>QflanllQ 1",1» loul i~vcrs nn~""< the rebllilding ofreli<i<:ftI',1 

n.l1lal prtljulS ,..- ni>t,ildi"l! "'''' ..... '''ilknli.1 p"'fI<n'<:$ wi,h • pu~li< "",,,,nl. ·fhct..< """,i.,-,;.\.~ 

als<' used ,0 fi '"ltoc< I"" inlo,,--'<I ",Ie Inortg;og'-" f,.- .Iiitlhk I>orru",,,,, III t,.lp Il><:ir f.,"ilieto ,I.n 
106 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.029

fre.h aner Katrina an<l Rit:l de\':t!iIOI..d neighbor!)()(t(Is, l'a'l1ili<'li 1':11\ ti!! ~U1nd to ben~fol ff(lm 

Ihe facililic.'lhis irl"e$tment inCA'ntivecan help n",ate. 

2. O"'-;'!<"II"'~ /wl/jj/ig (reilillrddirr(Jllul !".JII5!lIg clt"<lil c/ol/flr 1""0,,,,1 fIJr lire G,4f 

Op,lQrlullilY Z(nlg ami ,'I'"aill progwmmatlc "-{{Jim_,jm'J for 1/'" Gulf Oppo.·I'mily 20111:, Ilk' Rila 

GO 7.ml<!. alld ,/Ie Wilma CO ZmlC .ec. UOO,""(c)) 

This modified !()w inl"OtrH.' housing ta~ credit remgnizcd that there WQ1l!d be dif!ieullit'li 

conSlructing. rebuilding or purch:L5in;; m'w bui!din~ 10 afford low inconte families 0 dC'Cl.'nt 

home in th~ post dis:L'Ilerc'11vif(lnm<'flt. Y~'3rs latcr, ntany n~;ghborlwQds :Ire slill struwing to 

rchuild and tiny Flodcml ~"ppon "ould provide critical a~sisI3nc" to hard hit tamilies a.~ Ihcy scek 

the di@1l;lyofasati:hou,c. 

! introduced I<:gi,blion nn thi~ provision (1 1K 5.'i9) on ebro~ry 8. 20 11 wilh Mr. BOllst;lny, II 

di sti nguj~h~d Mcml>er (If this COllln'i tl~, which would hQVC e:'IIcnde<1 the pifu.-..od in service ""rind 

10 2013 flUm 2012, lIecau>c ihc economic downlum prevented key polit K:t1rina and Rila 

rebui!dlngpmjcets from getting offth~ ground. tcndlng Ihe placed in sc .... ice dnte for Go lfInc 

to ~ credits is crilicalto me.:ting OUI housing n~s. !lo!h In New Orleans and Louisiana 3;; It 

\\oolc. I urge my N!lellgl1C~ to e)(amin~ ,,·helher some of the benel.t can ~ nl3dc rctlOl1Ctl\'C 

based upon Ihe timing needs of lak~I 1Q lllc r.;. I ulge Ihe ~on"n't1~'"C to ~teno.! the eligibility period 

for this credit by the ~"d oft,,-q calcndar yeall from the Cn>IClme!1! ofrhi$ pmvi~inn_ 

3. l'/al;(!{/-ill-5<,n·icl.' dalt'-for ",/dil;()fI<li ,/i!IlN'tlaliOll,f(>r 5f'I!Cijied Gu/fOPI>of/Ullil), Zone 

e\"/ell5it)ll ",-'"JUI)' (,.U . UIJ(JI\'(uj(6f) 

Ttl(' dcprl.'C;at;on provisiun is cr;lical to pmervc the d<'lll"t.'Cial;on dcductioll for qualir,t'd 

GOZONE prop,:ny and I ur;;c my cullc:,gu."S to ext,·rKl the placed in :;;crvice dutc fOf Ihis 

depreci3tiol1 benefit in 3 manncr that is etm,istenl w;lh tl11.- continued el.~nol11ic 51fl"SS in the 

GOZON"E. TI,is will help pron1()\~ contim,cd inll<''51111<'111 in cupiml goods and prop<'lty in thc'$C 

h:lfd hil areas . 

.\./11(,',",,1$<' '" felli/bili/llli!>" rud;I);" ,Ir/li'llIrI'S loclJle.J III Ihe GO-ZONE (,'/'t.U(/ON/I,)) 

This eredil hrui been suc'CI.',sfully used to offset -somc oflhc costs of rehuilding Ol'cr 140 of Nc\\ 

Orie".tns' :tnd 11310 11 Rougc's hi,\.Oric buildings. n.c'S~ inlles!m'~'t$ haw been critical to foslcrillg 

.. 'rely l1~~detlt uri snl in the I\"giOll, and lh~ l1]()I1i~ s a">o<:iat~d wilh th;~ tourism have be"" I\";nve~ted in imponanll()o.";ll pri ori i~ in II conm-ainw ~Iatcll nd 10<.,,1 buo.!g~!nf)· "wirnn'nent. 
107 

Rep. Charles Boustany, Statement 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.030

W8y~ and /To 1c al1~ Subc(>nHnitt~ 011 S~I",-.., ~v(nUl' M~a .. ures 

April 26. 2012 - I karing 011 C~rtoin E~pirjnll 'fos !) rovj~ioo~ 

Slu ~men! for the Rf'Cord ill $upp!lr! ofE""'nJinll S(clion 1111 (lfLhe IItl(ma l Revenue Cod<" 

May 10,2012 

I ~ubmiL Lhi~ ~lm<'mem in JUppQr! of "'~L~ndin[l, loeC ion 181 of the Intemal Rf'wnue Cod<'. 

Seetion 181 nllowll inve,lQI'j: imm~di~telylo wriLeOIT ror tax PUrpQk" thc first SI5 111illi0l1 ot' 

C"(ISI~ as..;,:,ciot~d witll tt"rtoin film 311 d Ld~v ~i()I1 produClionJ in~Lead Qfhavill[l, 10 deduct ~mo l 

pOnioll> Ofllll" CO~l hrQuglJolll II number of) ~a,.,. A tiln' only '1l1alifi~> for II Jeduction und~r 

~e ian 18 1 if7S p<rt:"<'nt of the lotol eompenSlllion ofth~ prQdUClion i, comjJCn~ti"" for 

scrvi.es perfonncd in the VnilN Siole .• by actor:;. din.""lQr!i. produCCI"!i, and ()1Mr .... Ievant 

production per.<ennel. 

Section 181 was en ilcl~d 10 help counl~mcllh~ gcllCrous wHge IImJ other subsidies pUL in place by 

olher countries (bcginlling inlhe 199(1.). which were d(signcd to attmct U.S. prWuctions to tllei. 

Country. Typically. thcs~ foreign ,ubsidies are conditio\li.'<l on hiring local "belo" ,h~ line" 

Ic<:hnieians "lid other ~kilk'<l workers. Th~ mtmeti\"Cn~'Ssufthese~ubsidies resulted in the Io> ~ of 

high-pay;nSAmcrieanjobs. In 2004, Congrt'ss .... cognized th .. n~ed to comb;Jt these l>sid;<"S 

and the rc~ult~nt nma ... ay production~, and provided f~,"ordblc J~pT('Ciation 10 eneour1l~c 

domestit productions under sc""lion 181 oflhe Tax Code. 

While.Califon1ia may be ,he home oflhe major film ent("rtainmcrlt studios. productions occur in 

all 50 ,I.I;lte~. A major mOlion piclurepmduction On location C()nlribul« $225.000 ~'\'cry day 1<1 

Ill(.' l{)Cal """onomy. Thi~ indn>lry i. also a critical engine Ibr "",,onomic d~, dap",cnt in 

Louisiana. L"uis,nM now has I S soundstages and we are mnked thiN in ti><' cOUlltry far film 

and tele\"i~ion prOduction. Re«nt major mQ!ion pi~ures such as G./ . .IV<!." RrtalimiOIl . ./eJfWhc 

Lil'i<S III H",,,,· and /Jall/ell,/,. listed on Ih .. section 181 5thedul~ ar<' eSlim3t .. d to have produced 

o\'.,. 3500jobs in Louisiana. 

f> laj"r prQdL>ttion~ Iih-· tile.." OOt only Crc-~L " high-paying filmjob~, hui ul50 gCFLCrtlL .. "--'"Vtnll~ 

~rKI JOM for a mnge of lo.::.~1 bus;"" •• !$, ~"eh as c:.terers. dry rle:'llI"rs. looJJ,'ing, equipment reIlL,I, 

ImnspoJ1mion vendors and many (tthers. The majority oflhesc locol businesses emplo) 10 

pcI"lple or less. 

Extending ~C"Clion 181 "1Il conlinue to promote cnpitnl i\"'CSI11)~n l and production ill the U.S. 

Thi~ is importantt!! hcip suslnin gJ"I,wlh in domestic film produclion which is u strong 

eOlltrihulorlO gJ"O"lh illlhe (wcmll <""OI1OII1Y. llelic"~ thnt encuumgingdomC'Slic fihn 

production,,-II! eOl1tilluc 10 have rippl~ etT«ls ill loca l C"Conomics nntionwide. As a result. I 

SIlP)XlJ1 e~ten5ion of see lion 181. 
108 

Rep. Cory Gardner, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.031

(tiOllgft,GU of tilt 1Il1ilt.b .state,. 

lIw 1I0","ble P.I TIb.,] 

(lgirmon 

Ulull;"!Ilml, I!(! 2D51S 

MI~ I, lOll 

U,S. H"" .. Wrt.and M~an' 5ub<"", .. a, ... on Seleu ~_u. Mu."," 

106 OM"" 110 ..... 0111«: 8ulldina 

W .. h/nt'''''. DI;: 2I.l515 

A. Mo,.,be!. 01 C""lfU. lrom Colorado, I "",. ""'Of. ''-wod. of _ ... 1« .... ~IO'1od 

be .. ",. 01 the wind rtd~"rv, WI ... ~o '0 _.pro" 1>1" "'PIlII '"i>POft 101 I n . " ... >Ion 01 

1IIe. .. "", .... 'fY ~,,",U(Ik>n , •• , ..... it (PTe)_ 

Ttl. PK it .~.I to <he IUI"fe 01 wind enO/IV ",<>01,'''1001 in CDIor_ . 'MI Kto .. '~e nation_ 

("""odo in p."icuIOi h •• uP .... '" 016,000 indMduII$ .",ploYed In )oM ,eI. ted '0 'Iro 

wind "'u"rv - ",ony 01 "hictl ",e., .... k. """ ... d <h. PK C)plrl 'lSi't now. "'''''~k>nll'''' , 

"'_ ',,'al com",unltit> ••• ,eclp;.nt. at no" '.~"e, th 'r ~' 10 .. io>d MillY ... 06"<1;011, 

{a.ch 01 u' 1001 ..... in • ""tv o1Ij 01 tne ._ 'PII<OO,h """'" ~ "."'., to US •• ""'8V DOII<'!_ 

60th U.odi,iMai Ind ,en.",.bJe ..... re •• pI.y vit.1 .ole. in "'haocln, ", .. dom .... 1t _ray 

~y, ~ .. '''''"I'''''''''' "'" enetlV .. dependonco il< . <Ullo .. 

WIllie u... PTe doe. nol e. p". until , he ...... of lOll. iI "lmperlt~ lhat ~ be ' en .... M •• 

,oon .. "",'Ible. '" orole< foo • ''''''FJilny 10 be ell&ibIo for tI>t PTe. iI must h ...... wind 

,u,blnu up lod runnl ... by t ......... 01 the I""" cal.nda, ~.,. "'!UClo, p.ojecn lor tho 

lOU cale<>dor ~If -!I>""d ol .. adv be Tn tho pI"""InA ..... d ... """,,~"' p.i"<><." '" ord., 10 

bot tompl ... d in . limei1 fa'hI"", Simply put, Conl'~" ,._ w>It u~, l N"""",be, 01 

Ooc.",boI< to ''''''OW, "n e<le",1on oflf>t PlC. 1>citIf,., would .. ,utt In ,., ... l'1Ie 10\'O'Is Ind 

projKt del ... 001h ~ ''''''p.n'*< .hot ore .'PKtm. It. 

TI>t wind indu"", is """'I. a<>d wi'<~ • ","ditt.bI~ I .... ',."'. 10 redLKl! "'. <te<l~, ~ .. i~ 

<01""'"" 'I> remoln thai ",.,. Thu., wM. _ .... 101 ." ... ~,"'" 01 the ".dit .. k 

<",,"",11 •• Ist., "'" "",""file \'OU to r.a,.,". I pi." '0 rtduta lhat cr-edit Tn .ub'eq ... n, 

'tea,., flfld • "'1 to P'1 lor the ufdl, •• ...:1 wort towa,d, "",,!><,"""""'O II, .iOfu.-m .... d • 

II, ",,,,,ur. '" whitlllh~ fTC 1< flO long ... netd" _ 

_ <4«_ 
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klltl Tlpt(>:l 

M~mbe< 01 Conl'ell (C0-1) 
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nl tJy .S. ltcflr ese llt til ~Cynth i~ 1\1. l.ummis 

!lu ri ng nn Cerlain f1irinl: Tn I>ro .. ~ions 

lIerflre 'h~ !louse S .. bf mmi" ~c 011 Selcd ItcI'cnllc U~lI rc s 

Ways amI Muns Conllni!!"" 

h~inl1 Hn Teberi, I submillhis slate"'~"'IIO Ih" Sul><:ommitlc"3~ ~ re<l""51 f\lT u lOll!; lenn fi ~ 10 

Ihe evercl"'nging c~tale tax. ('ong.rc~$ nCI.-d~ It.! Jm.)vide cenainty lor est~ lc planning"" pan of 

any larger las ~form package. 

As sonk.'QflC wlK) was r,lise<! On and still works 3 f9mi ly-owncd r.lnch. I umlcl'Sland Ihe particular 

strain ofl ~ dfJth tax un WyominJ;'s agricultuml and SIIl:,1! busines~ oolllmunily. Families 

should notbe punished for wun.:ing hard 10 build weahh fur their f:tmii ics. I hal't fUtlgill for ~nd 

conlinue 10 sUppQn a full repeal of tl!ecslale ta.~. 

I also vOled for last Cung~ss' cumpn."nisc 10 sct the dl-Jlh I" ~ at" rate ur3S pt:rccm "ilh a $5 

million ,'.~cmplion fur IWO years. This lemporary tix c.xrirl.'S 3t thc cnd 0[20 12. Given (jur 

politiC'llI tlimalc. I would suppon a continU1\liotl oftll,' current lax r:lIC wilh Ill~ CXClllP!iOtl 

indexed for illf\mion Dnd ~ stepped up ha~i5 ~s p long lenn OIUlion. Even wars.: Ihon hm'i,,!! ~ 

tax on C5Wles i~ the une~nalnl y Ihat is caused by consl~n\l y clmngin,g Ihi ~ lax. 

Mainmining th~ n.:ppo:d up btlsis for nppro:ciuted !t.~SCI~ ~ key to thi~ tkai, Owncn;hip of $mall 

bll';inJ!l;s.!s. famls and mnchcs is ollen a (,n,lIy allDir and Con~ nct'd:lIO enstlre family 

t,usi""~ses,,an t,., mainlain~"" th ruuj;h<,)uI gen~"'t ons. This is ~sr«ially true"hcn considering 

Ihc ag;ug ofotlr agriculture sector. 
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While maimaining the es!a.I~ tax is 3 policy of punishing An,eriC:l.n, fOT building a.1n'ady Ii1~c-d 

wrolth \\l p;lSS nn 1<1Ih<:ir fan'ilic~, pa:;r.age <!fa l()ng Imn ~hui()n i.> b<:u~r tnan allowing Ihe rate 

1<1 a,u\lmmicaliy incrc~;;e. Americnn b,,~incss nWllCrli nc~d thc ccnoinl} Ihm II", dc"Jlh In~ "ill 

n01 C'.llne back in full foro;e in 1013. A [ax r~ e \lf55 pt'rcrol <'>Q in)Jer;tal'cc'S, wilh only $ 1 

milli\l11 in assets excntpwd. ~ simply unacceptable. 

I con1!nue 10 ~uppQ!1 a full:ind [,<,nlUmen! "'peal oflhe death lax. bul we need 10 provide 

Americans "ith pem,:rnen, t/c'3th lax ",Iicfas soon >t'I possible. Thank }OU for yonr 

e.:,nsidc"l'3tiQ!l. 
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Ttl<: Honorable f>~t1 iberi 

Clminnan 

<tongTtl3'l3' of t1Jt '0Initeb iittatel3' 

tKfi« 01 prrR il itlf ilal'tbt 1ottJl<ldi 

IIlnibingtoll, 0< 20515·1502 

1llb!1D.l oebsltflt.~OuU .;ab 

M"y 10. ~Ol~ 

The Ii onornbl~ Rich"rd E. Nc:1I 

R:mking M~mber 

Sub.;ommiu"" nn S~ m Rc\"cnu<,Mca .. '= 110~ Lon~w"rth u""-",, om,," gui ldi"GIV.,h'n",ln" D.C.l051 S S,,\x:ommitt""on Sdect R."~nll. Me",ur"~ 

11~9E l..u"J;,womh I lOll'" Office gu;ldi"~ 

Wa.hi"O'I'", /l,c. 2051S 

t:lo.·~r Ch~;mlan Tiberi and Ranki,,!! M"",ber Neal. 

In lhc-_<ummc ... ur2008, Ih" Slal""rl"wa e.xpt:ri"nc~ lhe-WOI"l'I naluml di535'cr in <W,r ,,-rorded SIll", 

hlsl{Jt')'. gS of99 counties w ...... d""I"""';! I'",.idcnligl Di"'51~r A..-as and dam~l'." ~'limaIO$ x~~d 

bi llio"" itt 0'''' city .IU"I'. Th" . ntire Midwesl ."rr. n:d ""rioosd"""gc and continues 1051n.£l!lc Iu 

"""'''.r loday. 

The 1,,"'8 Dekgalil>T\ otntl ()thcf'5 ;n !I,~ Mid",",,1 workt:d in Ii bipMi""" r,,-,hion ll> p= surpll.,."cntal 

dis.ut.,. n:liefle.l!iJ I~tion in addition 10 3 di.astoor w< relidpackagc in 2008. Thi~ le.l!i~h li.,.,. Ihe 

Midwc .. em Di.a<l.rTa~ Relief Act. included a provision 10 I'",,,id. disasLorarea. whh 1>1.idw"st~rn 

lJi AA~"r An:;l But"', to h~ p ~"'n: faSl..,. di>*SI"" ""'M<'l")' throuf!.h ~)l)nlit ;ifi>wlh and d~,d()pn,..nl . 

Un fonunOlely.tM AUlhDJily to U'iC thes" I:>ond, ~.~pire~ ollhe end ufthi, y.,.r despil~ only oround 5800 

n,illi"" 01'51.6 biUioo in bondi n!!, au\h"ril yb<i~ u;;cd in o",~ 010" •. '1";'. Staleorr,,"'a Ius wo,h>J han! 

10 ulilizellS nlu. h I>rlhilaulhorily but hili b«'n hil d'IlINy hard wi,h do,"asJmin~ 1l 00d~ on lop "rllkWOr!;1 ",«.,ion si"",~ Ill<> Gre;u Dern:~sion , /I ,imp le eUensiQll of authority 10 iSOlue these bond, t/lrou£!' hnuat')' I. 20lS wou ld pro"ide bmeflts thot stn:\ch far i,ao Ihe r"wn: for diss<ler iml""'Led stole. itt the 

MidwCSl 

10"". ha, nlad~ rmgn-~< bu, has w,,1ii: In do SliI! in "."",,,,'eritlJ; r""n Ihe Floods ,,(2008 "nd I than~!hl'­

WaYSWlJ Moans Cummiu", (or th.ir preViou, iOpport. rro~idin!> for nn eXlen~i()fl of Mldwostem 

Dis,,,,..,. Are"" Bond authority ",.k •• sen", "tt • nllm\x:r ur fll)lll., !lto li>n:m<IM \x:ingjoll c-n:,aion "lid 

economic iV<'wlh. 

I ""J"""rully Uf1!.. !hI· CO/IIIl1;II.,., II> indudo !hil C"'IlII101,·sense eXI.I",i"n "'hi"h has brua<I b;panissll 

5Upport lnlh< Congrossioo.! Delegation. the Smt<,-of !ow ... and ,h. Midwo!'Sl. ll'nnk you for yoo, tim. 

and oon,jdcMion ofthi. reqllCSl. 

D.l\'e LOo>Dsacl 

luwo '5 Serood Di"'''''t 
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CONTACT INFORMATION 

Name: Rep. Dave Loebsack 

Address: 1527 LongWorth House Office Building 

Phone Number: 202-225-6576 

Contact E-mail Address: Tvler. Wilson(mmaiLhollse.gov 

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TESTIMONY OF THE HONORABLE DAVE REICHERT tWA-8) 

U.S. Representative - Eighth District, Washington Member, 

U.S. House Committee on Ways ond Meons 

u.s. House Committee on Ways and Means 

Subcommittee on Select Revenue Measures 

Hearing on "Certain Expiring Tax Provisions" 

Thursday, April 26, 2012 

1100 Longworth House Office Building 

Washington, DC 
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Chairman Tiberi, Ran~ing MemberNeal. and Member~ of Ih~ SllbcommilleeThankyou fm Ihe opportunity to testify loday, I appj~ud your leadership in ad ..... ndng 

romprehen~ivetax reform, and I am proud to be a part of the ongoing work tllat the Ways anI! 

Mean~ Committee Is doing to assess various reform option~ and chart a path to a simpler tax 

code tllat ensures American busInesses can compete in the global economy and American 

f3milies can retain more of their hard-earned money. 

Toda .... s review of many eKpired or eKpiring tilK provisions is an essentia l romponent 01 

tlledrive towa rd tax reform. You can add my IIOlce to the bipartisafl chorus ac~nowledging that 

our tax code is far too romplu, and I believe this Commilleemust continue to elimiml1e 

wasteful. ,neRective ta~ provisions_ But we must also acknowledge that there is a 'oil' for 

certain business and individual tax Incentives to play both as a brIdge to tax reform and as a 

continued c31alystforjob creation a'ld economi<; recovery. I appreciale the chance to offer my 

suggestlon~ for key tax provisions that should be extended. 

As a Representatlve from Washington $Iale. no dl5Cussion about ta~ polky can begin 

without memioning a provision that aRects every single ta'payerin our "ale -the stat"and 

loCOl5lllO>l toxdo>ductfon. It is slmplv a ma tter of alrnes~ lor Washington and other states 

without a !>tau income.la. to utend tllis vital d~uction . Our taxpayer~ deserve the same 

certainty and pro>dictabllityln the ability 10 deduct these local ta~es as reSidents of everv other 

state. f will continue to fight to utend and make permanent this essentia l iii. relief for my 

51ate. iI. I have !>Ought every year since I came to Congress. 

I" reviewing 'Iax e>tendefS,' I encourage Ih~ Commltlee to prioritize consideration of 

those tax prol/lsions that 1) leverage Ihe maximum prNate sector capilal and 2) have the 

grealeSI demonflraled pOI"ntial to creal" and.o;USl ain American jobs. 

BusIness EKtenders Thalleverase P,;vate Capital and Create Jobs 

I know many Members will join me in expressing support lor long-standing. 'Iradltional" 

fncentrves Ilke tile re5Nrch tax credlr tllat Ilelp American bUSinesses Innovate and grow. But I 

want to emphasize todav IWO r)(!.enslons of CUrren! tax law thai I authored !hal have a 

demonstrated abilTty to leverage private capit al ilnd create Jobs: Ihe re~wable energy 

production rON credit (H.R. 3307) and thefive-~ear holdino periodJor built-in oainsjor small 

businesses orgoniledas S carporatlons (H.R. 1(78). 

In the pasl six veilrs, Ihe praductian tax credit (PTC) leverilged billions of dollilr~ of 

private l'lVe~ tmen! in Amerlcan manufaClUring - $60 billion in the wind industrv alone. whe,.. 

the nedit has sune\sfully grown our domeo;tk manufdcturing capabilities from 25% of turbine 

va lue to over 60% In th" sam" lime. fram". Stud i .. " 5ugsest that the PTC leveraged $15.5 billion 

In private c~pital in Ihe wind industry annua llv §ince 2005. nearly 12 lime~ the Join! Committee 

on Ta~atlon', revenue estimate for Ihe PTC. And that figure does not ewn 3ccount tor tile 

, 
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,nVel1melll th~t rile PTC spurs In otller 'lu~lifying renewable resource" in cluding lIydropower, 

geothermill, biom~ss, ilnd lalldfill w~ste project~. 

Tile production tax credit also has a proven record of creating and sustaining American 

jobs. It notonlv supports an increa.ing number of domest;c manufacturing jobs, but it al.o 

,up ports tile 3ervices ,ecto, Job.s that deSign and finance tllese cap1taHntensjv~ energy 

projects. I believe i tax Incenll\re tllat serves the dual purpose of putting Americans to Work 

lowering energy costs for other American families and bu~nesses is wortlly of extension. 

Given tile signiflcant time, labor, ilnd capilal invo~ed in bringing IllesI' energy projects 

online,;) strong CiSI' can be made lor IIII' urgent need to e~tend the prodUCtion tax credit in 

the next available tax vellicle In order 10 stave off IIII' dire economic conseQuences of its 

looming expiration. A recent Navigant Consulting study indkilte, tllallhe Iililure to ei<lend the 

PTC would pUl37,OOO American jobs in IIII' wind Industry at risk. Illave heilrd from tountless 

manulacturers, utWtles, and developers how the uncertainty over wllether the PTe wlll be 

extended is already causinslay...,fls, project delays, andcancellalions. With energy prices 

volatile and Konoml, fl!CO~ery Ir.gHe, nowis nOI tile tim~ 10 frllele jotKreatlns, prl~ate 

inve~tment in 11 key sector. 

I am pleased Illalthere is sucll strO<1g, bipartisan support in Congress and in tile Wav~ 

and Means Committee for extending the production tax credit, including a majority of lhe 

members of the Subcommittee on Select Re~enue Measurn, 14 member.; of tile full 

Committee, and the 95 Members of Congress represenlingll ~ales who lIave cosponsored tile 

legislation I Introduced wi th Ways and Means colleague filrl umen~uer IO-(lR), Included In 

mv te'i\imony is" lerter signed by House Republicans who also believe tllat an ext ension of the 

PTe Is consistent Willi 'ee lng "all of the above" energy 50lution, and brInging needed poli", 

certainty for American workers, induslries, and investors. 

Moving forward, how Ihe Committee addreS!es an exlension ofllle PTe an havea 

slgnlflcanllmpact on IIII' patll to tax reform. I am encouraged Ihat the wInd industry I, already 

contemplating how it might transition off of the PTC as tile induury matures; this kind of 

advaT)ced tllln~ ingis needed more broadly In our ongOing deliberations about tax reform. Both 

congressional Republl~ns and President Obama lIave called for an "all of Ille above" energy 

policy strategy, and 1;IX policy is an integral - if not foundational - component of any wategy to 

lower energy costs for American filmllies and businesses, diversify our nation', energy supply, 

and move toward energy independence. In laking up ene rgy tax reform, tile Committee sllould 

continue to conSider 1I0w tax polievlnterseclS with our nation's natural and renewable enersY 

resources, tile i.sues 01 energy transmission and slorage, and Increasing energy effiden<\, in 

home" buildings, and vehicles, 

The reduced Jive-)'eor holding period jor built-in 90ins /" smo/l businesses or90fliud os 

S corporations i~ a nolller tax pro"'sion tllat e~erages privatr apltal and creates American jobs. 

T~is common sense measure tllat I authored lIS parT of a broadel pac~agewiltl Congressman 

Ron Kind (O-WI) enables S corporations!o access Iheir own capital sooner. An April 2011 study 

, 
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by Dr. Rob~rr Carroll (Ernst &Young) found h~t business ... , organi, ... d as flow-through ... lti~s 

~t(Ounl for more th~n lf 01 ~II prlv~te ~"'Clor jobs in the United States, and S6% In 

Washington Stale. Oneoul 01 every four of these work~r$ is employed by an S corporal ion. 

Enabling score. of these businesses 10 continue unlocking their own tapltalsooner is 

one of many actions Congren can take to help smill bU5ine5se5"ccess the resources needed 10 

8row Iheir businesses and create jobs. The holding period for bulll·in gains reverted to 10 yea,s 

wilh Ihe e~pir3lion of Ihls provision in 20U - meaning that il Conere.ls fai l5 to act, businene5 

that converted 10 S COrpOrillion SlatUI must Wilt i decade 10 access Iheir own capilal or face a 

punitive ta~ . 

I am graleful that Subcommittee Chairman Tiberi cosponsored my 5 Corpororo"r.m 

Moderniwt;on Act, and I would ~Iw lille 10 submit for the hearing record a letier from 13 

organil ations repr ... senting million, of smalt busln ... ss ... ' across America who SUpport an 

e~ten 5ron of this provision. 

IndIVidual Extenders Ihatleveratt Prlvatt Capit3! and Inve5t in Communities 

Jun as I urge the Commilleeto conSider business tal extender51hat JeveraSI! private 

capital, solOO should the Commilll'\! consider IndiVidual talt extenders thaI do the same lor Ihe 

broad benefit of communilTes. Tax )ncenITves that encourage In~enml! nt in !!ducation and 

philanthropy merit strong support. 

I am proud to champion an e)(lension olthe deduct;on!or educoton' out-c/-poc/(er 

clQ5Sroom l!/tpen~J (H.R. 1738), a long-standing, bipartisan priority for this COfT1mi1lee thaI 

was e~ious y sponsored by now Ch~irman Oive Cilmp (R-M!) i nd currently enjoys the 

support of 98 Members of Con8res., 10 of whom serve on Ihe ys and Means Comn,ittee. 

Strong public education depends in part on equippingteach.e's with adequate reWuree. 

to help ud~nlS succeed. Acoordlng 10 2006 data from the National fducal10n Association 

(NEAl, educalOrs spent an a~erage of 5477 out of their own paychecks just 10 purchase basic 

clawoom supplies lI~e books, pl!neils, and papl!!. The NallonalSchool Supply and Equipment 

Association released data from the 2009-2010 school Veardemonstratln81hat public school 

teachers spent more than 51,3 billion out-of-pocket on clUiroom materia li. Ninety-two 

percenl oltuchers potied reported thatlhey had spent some of their own money on 

classroom maleria ls. 

These educalo" ,If I.' demonnraling such a commitm ... nt to investing in thei' students 

that they are reaching into their own pocketboolcs to pro~ide classroom materials and further 

their own professional dey~ lopm ent , EKtendin8 Ihe deduction for out'oC poc~et da,,,oom 

e~pe"se. has a leveraging ~ffe<:t by fecoSniz,ng and encouraging the continued personal 

financial investment thes.e. educalors are making in their swdents. I am pleased 10 include with 

my testimony a statement from the 3.2 million members of Ihe NEA in support of my bill, 

• 
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Similarly, + nrona1y support fOJl policy tllDt~ncDuragn cIlDr;tobl~ giving. Congressman 

John lar.oo (D-CT) and (ha~e worked closely together to support th~ philanthropic efforts of 

publ;(charfties and pri~ate foundations. EspeCIally In these difficult economIc times, cnantles 

and foundation! play an Increasingly important role in pro~idin8 basic services for children, 

families, and others >truBSI'''g to make eods meet. + ha~e seeo firsthand the imp3ct tha t 

phllanthlopic organizations like Northwen Harvest, thl' College Succ~s Foundation, Habital for 

HU(TIanity. the Voited Way or King Couoty, the Gates Foundation, .. od thl' Newman's Own 

Foundalioo are mak'og io under.erved communities in Washington State and ac'O$s the 

mum"!. The Committee should rema in mindful of the role Ihat tal policy can play in levernging 

charitable giving to orsan,lations that do so mud' 80ad for those in need. 

In closing, I commend the Succommltte<l for holding this hearing and prOviding members 

On and off of the Ways and Means Committee with the OIlPortunity to sha,e their views on 

expired or upiri08 tax pro~isions. I am eacer to continue working closely with my Commlttel' 

mlleil8ueS on both sides of the 3isle to review and advance 'tax extenders' tltatleverage private 

capital and create Jobs as Wl' make fu rther progress toward comprehensive tax reform. 

DAVE REICHERT 

Member of Congress 

EigMh District, Wa shington 

, 
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Apn126.2012 

Extend the 5-Year Holding Period for Built-In Gains 

/IS r.pr ... nl~l1 ~ of 1\'0."''''''$ 1\ and dooely, held bu"" ...... , we res]lC'<lfully 

" 'lCQIIraS" you to exteod thf S-yoar Iwld,n~ p<'rIo.! for built-I" g.In< •• key provl'.l!1 01 the 

blp.rtisan SCtJrpwGfwn fo1(l(i .. ~iZllricn lief {HR 1478jlnnod",od by W.Y~ , oJ M."n~ mn'm~ 

mon,bers 1>.,," H";rhefl (R_WA] "od I\on ~Iod (D_WI). 

Snl.1I bu.I" ..... ,,,. the ."g'ne uf ".,.rlca', ""'''''mK g'''wth aod S rorpo, .. tiuos .r. the 

rQ'oen;'oo" .. f'h"small hY"".'1 CQmmuo l!)', The,..,. ... M.,ly .S million ~ oorporoTioo. 

natlonWld~. Th"Y~'. in .. nry romntunlty . nd .""1)' Indu<uy." r«.nI5tu~y by Dr. Rober! Carr,,11 

(~:mst '" Vauni) found that S fo."..""ion, ~rt :o,lsnlfir.n\ ,Ollr<'e M)obS;IS well, Nnployinc One out 

of c ..... ry I<>ur pnv.", '0"0' """.01'$. 

Un llh puhl", ""mp~nl.'. 'heSt' closely-/lcld hu.ine.,., h."" hltl. I" no .ce,,., til Ihe public 

""pital markel$. They .-ely o~ banb.'I'~y .-ely "n "larn"'$..nd (hoy rl'ly gn 'h." own a,;;e", for 

;n •• Olment Jud wor1YnJl. Qpil~L ... n o""l1y 10"8 b"lIt l~ ~ajn. t.~ ",,~,el~t .. t1usdl ... d""n\;lg<' by 

pr~""ntlng CQn'"fled 5 rorpo"'''on~ fro", pUlling 'he ,.plrdl thoy . 1",OIdy (<>n"ol to betlcr use. 

5 Cnl1",,-.t;on. shu"l,I nut h~ hl<><h'll ("'''' a"."'ng th.kuwn "' 1"1~1: Ih ... ~~ .. , «ltk.1 

""1"""'" Ihot allow pn .... te comp.ntes lu ~row the,r h",,"enes-. «e.t. ",b •. "nd n,nt~ln 

ro"'~tltl ••. 

On bel,alf<>' ... """lea·.Iot.lnSt ...... ' bu<lne<5,-""",,,,unny, "'" r .. "",,""lIy .,1: 'h.ly~" ulend 

th ~ S-Y".r holding 1",,,,Kl fOf bulll-(n gain •. 

11,.nk you for your «Inolder3UQ •. 

Am.".lca ll ( ooodl off.n~lo ... rlnB (ompanles 

Au o<lated Duilde ... and Contraclo .... Inc. 

IndejM'ndent Comn'oolly 83nke ... Qf "'melica 

ro'a.lonai 8 •• r Wholesa l~rs A .. o<1a lloll 

N.U<>n31 Fed,..,.tlon <If Independrnl 8 " .lne,;,: 

Na llonal F"n r~1 Directo rs A •• o<1~tlo" 

Nallnnal Small Bo, lness ';':"fl~U ,,, 

Printing Ind,,>!rl •• of "men .... 

Profe .. lon.1 Beauty A ... x l.llon 

Roollng ( onlra, \on ..... l~tlon 

S Corp"r<Jtlon ""OlldaUon 

US, Chamber IIfCommcra 

Wine and SplrlL' Whll'c ... I~",or ... merka 

• 
122 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.045

TH tln,ony ubmllt~d ror Ille M~rurd 

u.s. Unu •• ofRe p ...... ""atlves Com,nlUH 0" Ways a nd Mean. 

Subcon.n,U."" on s.:led .venu~ Me."ure. 

U.a rlng on (o,Maln Ex plrlnk Tu Provisions 

April 26. Z012 

Ch.innan Tihui and M~n,be)'S o[,he ~ubr:ommi[fo ,. On be".'f of ",. 1.2 million ">t>mb.,"" of' ''e 

NanDnal fdu""tlon Ms<><latlo" ( NEA). _than~ ytlu forth. opponunlty to ,ubmllth""" <o,nm<'n1< 

fn' Ihe r«ord In ,,,nlu"l"Ii"" with Ihe h"~rins 0" COl13ln .. plri"~ lIOt I'''''''.'M •. TIl .... rommeoo" 

f"""so" two'j><'CIft.-cxpltlng la. ,~"k,~, - th~ ed''''lOl''' I.1x dl'<luction and Iho Qu.lmod Zono 

Jk.d~my Ilund (QUUI p"'ll ... on,. 

Extend Ih £du".'or Tax Deduction 

NHA "",ngly SUppof1S on "'en,ion of tho ed u'""Qr,. • .reductIOn. '0". critX.>1 d~U<!lon. which 

~JI' ..... d at th e end 01 the 20 r r 1.1~ y~aT, holp' "t'Ogni.o the fin.ncbl $;Icrir."". m.de by ~.<he .... 

3nd I'du,,,uon ~"pport prof""ion3!.<. 

EdUCOlOMi often ,e;oc~ in w tl,o" OWn pod .... to purch.,. dos.s'oom ,upp!ie, be<:~u.., ,key wont to 

m~"" 'u ... ~tuden', have ",h.t they need to S"C""ed. Sn,d! .. show ,h.t edu{""~Ulrs a,~ .pendlng 

mQre of th~" own fundS e¥h y.or 10 ~pply , heir <las.roon", and purchase """,nti.1 ,tem, such .s 

I",nob;. gluo.sclsso"" and f~d.1 ti .. u~s. AC'C4>rdl"H to N~A's mOst t"'"\llft survoy, '17 p~rc~"t of 

<>tlOCilW~ survoyl'd Indk.led Ih.t.ln 2006. rhoy hd 5pent $Om. ofth~OT Qwn m.,If"Y '0 mocr the 

n""d s of ' heir . tudents. ThoW 1'd<l ... tQI"$ .<P<'nt all .v.r~ge ofU77 d Y"a' oot ofmelr OWn po<~etS 

to p"",h .. " d .... 'oom supplie, .ueh a. book!;. pencils. paper •• "" ~rt s up,'I1 .... ' 

Many o<I"caW" a,.., findinK tho "cod,., ",orh Int" thclrQWll p"d'~t h .. I,,,,,,,,,",cd Tn th ... dlfrt",,1t 

e<'On"moc time .... ' funding ",,1s1.ad 'o.hort"~ in .,. .. ,,"., .uppll •• "nd m"", St\l<l",,1i ,.,,""'.0 

~ch",,' without ~I< I~"rnlog 1<>1>1$. A large malQrlty 01'''''"'''' 01"$ .ISO $pentt ~n .""IOlg.e of$15. 

,,,ooth ou. 01 IMI' OWn p<l<ket.lO Ii.><! srudo,," ISWW$ o{cMAmerkan Pt,bllcS< ~<101 TN<i<cr 

2005- 2/106, M.r<h ZOIO,y 

Tlte n ... d lor the'~ ".p.""III" ..... I. nut ''''p'i''"" Acc"rdln~'" PI"'t Foc"" 

2.7 m,lIion "10 .... children hv(>ll With an unemployed J'l",nt during 31Y1'(>:.r month in 2011. 

comp;o ... d to ZOU7 I.n 'ne .... ' .. ~ p/71'lll,. bringLng thO' 2011 tlItal to /0.5 mUl,on "hlld,..,n; 

J ",ill ion (47'1b 01 mos< living "ilh an unemployed por<nt)lintl. during .. typical 2(l11 monll1. 

with .. p3rem uneml"o),<,d .,. mooths or ionger, 

II million m~'" odd!!lon.' Children .... ,k'd upon SNAP fo, food In ZOllo rompdrod to"lOO? 

b'lnglng Ihe t0l.11 ""m"'" "fchildren .... "'~lving SNAI' ' " 21 million (OM In four); 

1& mllilon dtll,I,..,,, (mor< Ih.n On~ I" rivel run-."Ily Itve In pov('rty' 

TheN""'o, Ill. dMuCllon 1<~ hll>3rti~" "",osnillon of~"ea ol"$' filt.1nolal."",Iil<e. a. weJl.,or 

Ihe n.ed. nt<rud.ntl< who bc~ ~""n thO' b •• 1I: "",,,,,.!!k!. fot ,"ce ... ,n <chool. f.)(t.ndln~ II wul ,,,,,It<!. ",.1 difi.r<nc. for many I<lU","IU'" WM "fle. ",,,.1 .,<,;1Ice ",It .. , j>eMiou.1 "Ot'd. in ""Ier 

!O p.y fo, d .... oom .upphc. ""d In''',"c''on.1 nt;oter'.'s. 

' N ....... ,I·.<l'"," ... ,\,,.,. ........ '",,". ,t/<I>.·.I ......... 1'.1014' • .., "'.~ r .... ".,. :tIIl,..ZDIltI. Moo<k lDN. ' Ibiol ' /10,11<<< ,,,,,,., 0.,.,,'.8 I_, , ... _,~,, . nl/Jl<. 1»iI;"~,," ul( ~'I""'. :. !"..._Ir 11'. 11· ... ·,"" 1IN"",.I> 

~o, I. I. h. ...., ~ """""'1:> I.~~ .. ' ''' 1>«<1."'" ':Uj I 

, 
123 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.046

Ex""nd Ih e £d"rnIO, Tu d"cli n 

We alSO) Slrongly supp<ln th~ T •• ~h.r T n R.II~r 1\(1 (11.11.. 17381, l"lroduc~d I>y R~~rMenlatiVO 

Reich.n (It_WA). Th .. bill would ""p,nd 'h~ MUC.to, dedu"ion ro C","",. 1""1""010,,,,1 

de .... lopm"n' exp.n ..... ",a."". lr lru," $250 to $SOU. and make the de<lurrlon p",manent, r'3Ctw., 

Qu,lIty Is the .Ingle Ino" critlral fa""r In m •• lonlzl"S " "denr ""hieveme.t. 0"t0"'~ p,,,f ... w,,,,,1 

development I ..... n'ilIl 10 en",,,, ,h., Nur.!O" .lay "t ...... d.le on Ihe .klU. and knowledge 

n ....... '}' to p"'!>Ore . tude" ti fur rhe ch.lI"ng •• af ",.11 ~ <eotu,}" E.p.nd,ng 'he dell"cHon 10 

cove, p,of .. ,;"n.1 d ••• lopment •• 1"''' .... would ma~ •• ml;,:.1 Iliff.",,,,,, in h<lpinj! .J.,. .. """ .., •• :s, 

'I"'''') ""Inl"~ . 

f.~t "od th e Ql.A1I Progr-a nl 

Nr.A alio '''PI'''rf> . ,teo.l"n ofrhc Q ... lifi/."d "lone Andemy Bond. PH'!:"''''' On .v<r.!l", rhe 

building' 11"1 hOuse our public .choolt~re mb .... 'h." 40 yean; Old.' Th~ Am,"""," Socl~ly Melvll 

~"~IJWers glV\!S Iht ron.dltlon 01 oor _<ChOOts a g ... d~ 01 "0 " "nd nribuI '" lb. t.Uu", 10 upgr.d. ,hom 

'" -probl."", In IMfinUelal "'-'<tOr and d ... l,ning ~eno .. or.t.11~' "nd k>c.ol gov.mm~nl.<.'" 

homrdi"g IQ Fil< ,\me"""·' 5cllool$ Tod.y IfASTI1,. pro) ... , o(lhe E«.no'nic I'oiley In"llUt ... <I 

the 21>1 Cell"'ry S<hooj Fund .chouts nNXl.n unm.led SSIKI billion In ""1,. ln ."d up~,""d •• , 

Th~ QZAB progr.m has pro ..... " to be on emd."t .nd C(>"·.lToctl •• w~y IQ holr di .. d •• nt>gM 

<ommunlri.,- odd",,,,, p"",.,lllK reM""I;"n . nd .. ""I, no/."d,. QZAM. o»;"t $<hool di,11icts in rur~1 

~"d orilan """"nonlli .. by prOVIding 3 r."~nC\ng ",""halliJ", to .. nov .. " b"l!d",~ •• nd i' ... ., In 

e4"lp""",,, . "d r.chnoluw. In .... to'" """,,,'ve. 1 ........ 1 la. <redit _quol tQ Ih. an,ounl of Inl.",", 

payoh l. on 'he bo!od~. "'.,..,by ,01",vl"8 1",.1 ta ~p"y." and munldp;tlili<-> 01 'he inr., ... , "o,de". 

A «bmJ th .. I.",.. .... , ... ~ Q/.AiI ,na) U$O tile funds rn: 

"""' ..... _1 "'P';' bu,.hn,,": 

in,'",," in ~""''''''''I "1><1 up-~ • .Jo'. ,ceh,w,I,v. 

"",,"I<>p ~""I1,"1\ging :urn<uta: '" 

\O'Oin 4, .. !ifl , ... ~n.", . 

Th. Q~.AB proS"'''' "'ptr.d ~I 'he~nd ~Ithe lO ll 1:." yo ••. W. "rge Cong", •• '" e .. end thl, f,ttt<:al 

I'rug<"'~ . 

Th~n~ 70" fn' )"'u, conoid.raMo of Il>c>e COmmen' .. 

Submitted <H1 behall of, 

Th. ~.ttun"1 Ed",,"lio" As<od.Hn" 

12nl16",S !""'~NW 

W •• ill"MlOn, DC 200;!6 

20Z-IIn-13011 

20Hln·nU\l (f ~l 

, ""', .... , e",,,, fo< fd<!ca"",, ~";""" 

' • .-. t;.,d I'" ~ ~ __ ... ~ 1." •• """",0. :lOO'.I 

" 
124 

Rep. David Dreier, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.047

May 10. 2UI2 

CornmillCl.'on WU)'li and Means 

Sekct Rc"cnuc McaSlm:s SubcQnllnince 

Chairman Cump and Ranking MClllber Levin 

HC'Ming on Certain Expiring Tax Provisions 

'Illllrsday, April 26, 2012 

Ch~inmm Cump anll Ranking Member l.evin. 

We an: writing to urge the Commine;: on Wa)'lS and Means to includ~ in the tax 

~tcnder legislation being COllsidcr(d, language. conlJl1only known as Section I !;I. which 

willlllaintain film and televisiun productions in the Unill'<.! SUites, 

The United Slates Film 'lOd Tell'\'ision Indnstry 

The 111m 3nd lekvision industry is a vilal component of the Uniled Stairs 

economy. It geuerotc.::o a positive \)2.lnnce of trade In virtlJ<llly cvcry country in "hkh it 

docs business. "nd employs over 2 mil lion Amer1c/l!l workers.. both directly lind throUgll a 

myriad of businesses thai provide thl.' roundation and support \0 this industry. In total. 

ncarly 5137 billion in I\ages were paililo Ihuse WI)rt.:CfS in 1009. indullil1£ writIT.S. 

pcrfomlefS, producers, cralls people. 1~"ChniciaJls, aeeountaflls, cinenla employees. (lOd 

mOllY more employed in anei11arybusincsses. Fell inllustries illlhe lI'orid t'lln match 

"hat the US film unllt~lt'"Yision business has achieved since its crc;ltion over 100 years 

~go. 

Contrary to popul:lr pcrccpuon. the film and television businc~s is mainly 

eomprist'<l of a network ofsmaU businl',scs locatcd acn.)SS the country, of "hkh 83% 

cmplo)i fewer than IU people. The inllustf)' contributes billions each yc~r ttl Unitell 

St3tC'S eomplmiC'S, entrepreneur'S lind small businesses 3nd gcncrntes over SIS bil lion 

llnnu~lIy in sl~te and fcdcmllnxes. 

With production ofl1lms .. oo TV programs occurring throughoutlhe United States. 

this industry cr!!3tes I\dl-payingjnbs and generat es tangiblc economic benefIts 10 cities 

and stutes nationwille. A typical nMinn pictu1"l.' employs 350·500 people, l'roouclionjobs 

hal'e an a\"Crug~ S:llary thai is 73% higher tlmn the ,",um::m nationwide ~t;ll1daru. A m3jor 

mOl ion picture ~hooting on location comributcs $225,000 every day to the local economy, 

S(' il is uo surprise that il is se~'Il as a critical ~'Ilginc (If economic dcvclopmenl ill mom)' 

places across the coumry. 

T he l-li5101")' or Sfflion 181 

In respon.e 10 u gnJl\ing number of foreign countries implcmclltillgpolicil'S to 

mtmet Aml'ri~3n productions, Congress includell prol'isions. known as Section 18 I, in 
125 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.048

the Conlerellee HepOrtto tht Amer!can Jobs Creation Act 01' 2004, r.L. 108-357 (JailS). 

The r rovision was 3mendcd in 2008 10 further encourage production to n:m~in in Ihe 

United Slatcs and l"\'I1c,,'ed as part o I"IIH.' la~ cst('f1dcrs packagt'li induded in the 

EnK"I);cncy Economic StabiliMtion Act, I'.L I \0,)43 ami then again io 2010 in the Ta.'I 

Rdicf Vncmplo m~nl RenUlhorizntion and Job Creation Act. t>.L. 111-312. 

Impu rtll nce or Seclioo l SI 

Seclion 181 was IIngillally creatl:d by Ihi.' JOBS ACI with our sirong suppol1. The 

provision ~ a modesi. )"l'l impQrtanl 1001 10 help cnsurG thm femllr,- film 3Jld Ielevision 

prod uctions remain in Ihe Uniled Slates. S.-.:tion lSI helps 10 counlernclth-c foreign 

ncc1llil' ~ by 10\\"\'1"iog the ,'ust of capital for domcslic productioo by providiog 

immediate c)(pt:nsiog on the lir->t S15 milli<lI"! or film produ<·tion COlliS. To be elig ible. 

75% 'lfthe production muSt occur in the United Statd. 

Additionally. Ihe film induSI!), has been c)(clud~d fll)m general provisions 10 

increase bUSiness inveSlmenl in Ihi. country, including boOllS deprecialion measures 

\\hich cover vinually eve ry other mcriL m induslry. [n recent years. one faclOr 

lit"ri n~ dUl discriminatory treatmcnt of Jilin inl'cstment und,-r !hll bonus d~pfl"i:ialion 

pr"()\'ision waS" Ihe c~islence ofSCCli()n 18 1. To end this vilal pro"isio!l at u lirnc when 

other industri es still receive far grcntcr inccmivt'S ror capillli invCSllnenl would not only 

be unfair. it would haslt'fl migr3lion or fi lln and tdcI·i. ioll production l\'crs c~ s. l b is 

indl<str)'. which is such an imponant economic cngine for owny cities 3nd st ales. should 

nOt be singJed OUi for l\ 1a.'I intrrnse. 

Extending Sccti on 18! will continuc to promote capital inveStmenl ilJ1d prOduction 

in Ih" United Stlltes. TIlis will nOI unly help to pll)mQI~ \\"~!I-paying film industry jobs, 

but will ~o hul'c a rippl e clTcl't ac ross broad sectors oflhe ccnnomy hy gCllcrntiog 

rC.,"IIUl- llfld ('mploymcnt oppQnunitie~ for J wide rnnge o f Inca l bllSin cs~cs. such as 

caterers. dry c leaners. lodging. cquipmem rcntal racilities, trnnsponalion I"cndors, and 

ll1auyothcrs. 

We Uf~ the ComrnitK"e on Wa}::5 mllJ Mcuns to include thcScctiQn 181 provision 

in Ihe Ia.'( l'..'Ilcnder legislation Cllm:ntly under rc .. i~w . 

DAVID DREIER 

Member o f Congress 

Sin~crcly, 

IIOWARD L. BERMAN 

Member of Congress 
126 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.049

Tilt: It0I'10R"ULE DEVIN 1'OOr"':s 

CO.'.t MITI·[[ON WA " S """' 0 MUNS 

s·r,.. n :M[ NT REGARDING t:Xl'ENSIOI'1 0.' 

Tilt: o [ OOCn ON f O R MOR'r CAC t: ISStJRANCE 

Al'rtt26.lDI2 

Mr. Ck,)im .. ". thallk you fUO'lIold'1\i. tIl il< he ... i" .. on ~~ri",d.nd expOr'''I.I'.x .. 'Oil. p",,'i$ i<l~'. I, il; ";Ull 

that Ih~ (:omm'(I .. ", "";",, the", .. PO" il;ioo. hi d,·''''''''''" ,hoi, I><'n"';, 0",1 "'Io"d ""t,. Ih",", n",, "ion~ th., 

"",'e pru"cn [JIII"Iicullll'ly crr~ .. 1i", in prO' iding btn<fill<l 'a,P"Y<"" . 

""'''''glhc<"''rin:d "" P'''''iOIO<>S ".hi." ""'Iu' h'>o.~I) ' m<,., <,'cnsi'l" is Il!<: ,1.:,h ... 1;'" f""n" "goS~ 

ins"""",< prrmium" rhis p,""i~i"" p"rddctJorili",,1 "'PPIr1 '" 'h" """,inll "'.'''-1.,.,.... "",,,,cd =f'I""ibl", 

<rcdiH'Orthy 1"" and 'nod"rnl~ i",-"",,, f .. nili .. "" in 1"'1I,II:I>ing homes by """hi in!; "'1.1'11 I" obtain III< M .."",<",.y 

r"",ndng. In aJ<lillon. "'''"gogo I"~,,,,,,,,,,,,, I,,,,d<k<l 'nucn "",,'dcd "UPI'''" 10 m"ng:o~ .. ' m.n.. .. 'tS. ."d ~"II~ 

r"dl'I:>I .. '<I ,lie origin'lion and mrl .. 1ing of m"n~.gc I" ..... 

"<'::"~ding '<J Ih,' Intomol Re,,,,,'" s..n-i«. in ,1009, It.; m'lI'I.!1agc i""u~."". p'o. .... ' .... m .wu .. 1i"n " ... 

~I"im"" fin 3,6 milliM Ill. "'IUm, lOlali~ "ct<rlrS~ .) billj~n it> d<;lu....,i"". in "hid, a ""'.I"rity<lf lll,.,.lnrom.,.-

"""" U"~.'T S6().OOO. Few IlIX PIV'lslllll) "hl .. h ~>'\pln:d al th~,~1d of2()11 bo."'~ljt.sJ n'~rt Indl"~uals . Onl~ 1M 

"M'!' I"'h~h unJ I~' JrollOlion~ Il:rt ~l.'. and I""al >airs I.~ .. "'- an.J <:<l~li " o:.:ptoS<!< bo<IIclil,'<I mon: ,a,po) ,'11<. 

M"", IO'l'Ol'IlilIll). no c:<pi",d pro,.";",, lo,soloJ Iv" and ""oderale lo,;omo indi, Id'.11, in the same "-OJ 1M 

d<:\l uc"011 f<>r """',gage in<ur:>n« IIrt",ium' did. or l""~iJro ~al"T beflcfil hI 'a~I"')cn; . 

Mo",ga~" ins""",,,,, I'",,,,ill'" <k<lllOli,,,, ;; ako ~ood .. ""nnmi~l"'l;"y, Monll"8c i",uMlnccl""",iunl< 

arc ,he <"""01111. "'Iu','. lm, or interest pa}'nlcna. Mon!!,,~~ 'n'ur ...... .., ha, a d;""" and q ... mifi.blc i,nl'l'" 00 

imO!e,," ""I'''''' •• II- .,-ill, n'ongs~c i!\Su"""". <",d;l ri>l; <leel;"" •. ..,d a <"""""""d;'1g rrdUCliQ<1 in im .. ·,,'>! "1<\1> , Coo><,<!uaItly mn"l!i'g .. · ''''''"'''ox pn .... ium.anoJ inl .. TnI p;I'-m ........ lmuld I>c 1""~luJ.imil;ull b) Ilk: 

Intemal R<'I'<.'nUcCodc_ 

Th< drliu<lioo for m",,!IOS< iru;urJ""" prt!Ili\lm ~ "rill:<I 0' 1M <tid of IllSt l ...... ri,klng funh'T 

<llslI'~i<>n In the 1Ioo;1"~ mmo.'. Ido.>JIIY. lhe I""';,i"" llooid be made ~,,,,,,,,u . .,,d I IuIw;nlrW""'-'<I 

k¥i.;lu,ioll, UK \gl8. IIh-«h wQuld et"hiew ~ I!'",L The I<gijlali",' "\lUld .. -onIi,!Ue ,lie m<mf's"insnnm<:c 

rrl-1'1IilllTl dN"",i,,,, "" i, Oad 0<:.;,' in <1)'-", 'hl\l"¥h 2011, ond n.1.i~ impo"",,' limiuuil)lu IIhith ,n:ll.~ 'he 

<I<:\I"",i"" ","ilanl~""l y 'I) 11>1, :!l,d "",d"'';II< i~com. h"",,,",,)",,,,, 

1 ... "nlOk,·", Ih]m .. ,,"'" 'he 1'"lilio,1 '1"'<101<" nO' 0 """gni,,'<1 ,Ill.' I"'liq me,i" "r ,~ is Iogi,l.tinn, r~,' 

d.. .. ""Ii"" fOf m'II1g;<~,<, in u, ~1ICC 1>I\1'1Ii"m.h .. earned b...-""j hip""i,,,,, suPll"ft- i'''''' I;",t """".<'<1 by u 

R"(lUblicon ''''~r<'S" """ j, ~"d i'1<1 law II) u 1U... "htiClin l'ro.. idc-rtl. ~nJ '"'' ~~","d..-.t bJ' ~ Ikmu<:"uic 

COOU''''' """ IkmlA--r:lI'. 1'",.,.i<l":'11. 

Th""k ) \IU "!'lin. Mr. {,h.innM. ! 1()Ql( (",word ,n ",,",'nJ! "ilh "" lind 100 C''fIlmill('C 10 """"," 

~"'CM~ "f,lle "'()"Pile insuranocc I"miom dcd"",i(lfl. 
127 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.050

St~tem~nt lor ~e Record by Oi~ne BI."k IT~ 6) lor SRM fa . E>.tenderHUring April 26. 2012 

Mr. Chairman, I am here today to <lcknowled8e the merits of extending some of 

the tax prOVisions this body has addressed in the past that benefit both 

individuals and busInesses. 

Businesses of <III sizes in Tennessee tell me how worried they are that one more 

ta~ increase or mandate from Washin8ton might sink them; and Individuals are at 

fisk of seeing their tax bHls go up at the end of this year. 

1. Mor~.ge Interest Oeduotlon 

2. 5ta',,-Sale. Ta. Deduc1ion-Brady HR 476 

3. C!>.,i'able T.~ Deduu",n - T1berj J1R 860 

4. R&01 .. Cte~!t-e'.dyHRll65 

S. lS e~ r depr ~dation -~rl i<h fiR 1265 

1. Home Mortgage Interest Deduction 

Home owners who itemize their taxes can deduct 100 percent of their mortgage 

interest payments on their home for up to $1 million of mortga8e debt and 

$100,000 of home equity loans. 

For most home owners, this means they can deduct ALL of their mortgage 

interest on their home. This particularly makes the cost of owning a home much 

more affordable for first-time home buyers and those who have been in their 

home for just a few years, since the bulk of their monthly house payments go 

toward interest, which is fully deductible. 

Housing and homeownership are critical to a strong and prosperous nation. Ever 

since the federal income tax was introduced in 1913, the government has used 

the tax code to encourage homeownershlp. 

New home construction spurs productivity, creates Jobs for millions of Americans, 

and 8enerates revenues for all levels of government. 

Reducing, eliminating or otherwise changing the value of the mortgage interest 

deduction could cause the v .. lue of housing to drop even more - perhaps by as 

much as 15% in some markets. This decline would be in addition to the 30% 

decline that some markets h,we experienced. 

A poll taken in January 2012 showed that Americans still overwhelmingly consider 

homeownership a core value and would oppose efforts to weaken or eliminate 
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St3tem ~t 100lhe Record by e Slack IT".·6) fOf SRM 1 .. EJo:te'>de1 Hurlr g April 26. 201 2 

the mortgage interest deduction or diminish a federal role to help qualified home 

buyers obtain affordable 3D-year mortgages. ("'A!leINA~ 1 

As Congress, and the Ways and Me ans Committee studies the various 

deductions under the robust ta x; reform process, I will be certa in to ensure any 

changes to the tax rules that apply to home ownership will not disrupt the 

ma rket and cause home va lues to furthe r decline. 

2. State Sale s Tax Deduction 

I agree with the Governor of my state that the stale and local sales tax deduc.1ion 

is especially important to Tennesseans, as it is to the six other states including 

Texas, Florida, Washington, Wyoming, South Dakota, and Nevada that are 

without an lncome tax. That is why I am a cosponsor of H.R. 476 to Indude the 

extension of the state and local sales tax deduction for when Congress considers a 

larger tax extension package early next year. 

This is an issue of fairness. Since 2004 when the deduction was restored Congress 

has agreed that taxpayers in sales tax slates should be treated equally in the lax 

code as taxpayers in states that rely upon an income tax. Sales taxes add up for 

families. We're trying to protect them from a significant tax increase and help 

them stretch their pocket books a little further. 

Taxpayers in the seven states who itemize their deductions have come to depend 

on the provision. This deduction puts extra money in Tennesseans' pocket$ wh.ich 

helps any family's budget. 

3. Charitable Tall Deduction - Larson HR 860 

Unlike other tax incentives, the charitable deduction encourages behavior that 

enriches communities rather thiln individual ta~payers because it successfully 

encourages laxpayers to give more. 

According to the recent CBO report on the tax treatment 01 charitable giving, tax 

filers who reported AGI orat least S100,OOO in 2008 were responsible for well 

over half (about 58 percent) of all charitable giving by taxpayers. 

Americans strongly support the charitable deduction . In an April 2011 Gallup poll, 

71 percent opposed eliminating the charitable deduction to lower the overall 

income taX rate, and 68 percent opposed eliminating the charitable deduction to 
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reduce the federal budget deficit. More Americans supported the charitable 

deduction than the home mortgage Interest deduction or state and local tax 

deduction, 

As charities.struggle to meet increased demands for their services and raise 

additional funds, we need to encourage all individuals, regardless of Income and 

wealth, to give more to charitable organizations. Reducing the value of the 

charitable deduction does the exact oppo~ te and would fundamentally change a 

tax structure that has contributed to a cherished tradition of charitable giving that 

is unmatched ill the world. 

4. R&O Credit - Brady HR 94Z 

Congress has e~lended the Researlh and Oevelopment ta~ credit 14 time, sinle il 

was originally enacted in 1981. The R&D credit hilS provided an importilnt 

incen\fve to spur priVate sector investment in innovative research by companies 

of all sizes and in a variety oflndustrles. 

The enactment of this incentive helped establish the U,s. as a leader in innovative 

rese<lrch. In f<lct, during the 1980s, the U.S. W<lS t he le<lder <lmong OECD countries 

in prOViding the best R&D incentives for companies. However, many of our 

foreign competitors have since inst ituted more generous R&D incentives In the 

decades following, causing the U.s. to drop below the top 10, <lnd tod<lY ranks 

24th in research incentives among industrialized countries. The temporary nature 

of u.s. R&D incentives is <I strain on U.S. comp<lnies. Providing the cert<llnty of <I 

perm<lnent credit, especially In a ta~ reform environment, is critlCClI to m<llntaining 

U.S. leadership in innovative research and ensuring that U.S. companies will 

continue to do their R&D here in the U.S. 

This legisl<ltlon would provide Import<lnt cert<linty for U.S.-b<lsed rese<lfch 

spending by making the R&D tax credIt permanent as well as simplifying and 

strengthening it, thereby increasing lis effectiveness. That is why I am a cosponsor 

of H.R,942, the American Research and Competitiveness Act of 2011 introduced 

by Mr. Brady of TeKas. 

, 
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Statement lor the Record by OiaM aI3<~ 61 f.,.,- SRM T .. Elo: en ~r HurlnB Jl.pril"26, 20)2 

5. 15-year depreciation - Gerlach HR 1265 

Generally, the depreciation period for commercial buildings and improvements is 

39 year~, Congress has modified the depreciation schedules for certain types of 

property over time. In addition to better reflecting the unique characteristics of 

property used in certain types of commerce, shortening the depreciation 

schedule stimulates economic and job growth. 

Under current law, bu~inesses do not have the certainty they need to undertake 

capital e~penditures. Such capita l e~penditures fuel economic activity and create 

jobs. Our nation's businesses are looking forward, planning capital expenditures 

to improve and expand their businesses. The ability to plan for these 

eKpenditures and know what the tax treatment will be in subsequent years is 

important to those who are making those decisions right now. 

This provision is an important driver of economic stimulus, fueling economic 

activity and creating jobs. According to the Bureau of Economic Analysis, every 

dollar spent in the construction industry senerates an additional $239 in 

spending in the rest of the economy and every $1 million spent In the 

construction industry creates more than 28 jobs in the overall economy. History 

has shown that a IS-year depreclallon schedule for leasehold improvements, 

restaurant improvements and new construction, and retail improvements has 

spurred a tremendous amount of economic activity. 

CLOSING 

While our committee moves forward on reforming the code, we must all be on 

the lookout in this debate. When I was a state representative, some people who 

wanted to raise taxes and raise government revenue - painted and powdered the 

idea as "tax reform." 8ack in the state, I fought against the Tennessee state 

income tax because I believe the people of my sreat home state know better how 

to use their money than the government. I belie .... e that still today. As a member 

01 the tax writing committee in the U.S. Congress, I will continue to fight for 

fairness in the code for Tennesseans and a more hospitable environment to 

create Jobs. 

Thank you Mr. Chairman an_d to my colleagues on the dlas for holding this hearing 

And I yield back my time. 

• 
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,--DON 'OUO«,'; _ ... _ . . _-

--

_ .. _. . .-..... ..-.!., 

-- ,....... .. ~,,~~ 

~.~~~';fQ 

t!'",,~,,~ . "I Ill' I.h"I':'P ~' .. 

;JI." ... r II"''' .. "'.,, .... • ,.,...", ••. li.r ""' 

The HOIlO",!>le P3lTben. C~a rm"n 

Select R8~ertu~ Musure. SYbcomrMte<l 

U.S. Hou"" Commiuee on Ways ~od Mea'lS 

1101 Longw<>rtn HOB 

Wasn .. glon 0 C 20515 

The Honorable Rlc!lard Neai. Ran~Orlg MemDel 

SeleC\ Revenue MeaSU/tlB Sut>cOmmitlea 

U.S House Committee on Ways and Mea/1< 

113aE ~ongwort h HOB 

W~.nlngton. D.C 20515 

M;oy 9. 2012 

Dear Chairman Tiberi and RankJng Member Neal. 

_ .. ....... "'"'- .......... ~-.. ... _ .. 0 ......... ' .... '- -' ... "" ' .. _._ ......... ........ .......-. _n" 

I 9m pleased 10 s<Jlm1~ this reQ'-"'Slln connection wit/l the I\¢I 26. 2012 Maring 01 the House 

Comm~ ee on Ways ;lnd Me""s Suboommiltae on Seled Re"",,,ue Measure<; on the "'portan! Iople 

'" eXD inng la.- pml'ioions Ar. you know. \he Alaska NatiVe and Nali\le American community ,5 g_mll~ r"""llnized as among the mo.! econrunrca:iy !08dYant~ged popUlBlions in the Urute!l 

States. The-se expiring tax ,ncent""e. rapre&OOt a ~"e<:l metnod '" !!Il1pawerment 101 NaHve 

Amencans and oIIould be Extend&<! we~ "" the future 

A$ you beg,n Itoe crilical lask DI reviewing dozeM 01 ta ~ provosio/ls Inat .... "'" exP,red lasl ~"Hf 

Of WI\! expire this year pl!r~se a>flSlllef .mend'ng Ine IoIowlns ta~ proviJioIlll ll>al Alaska Natives and 

Amerlcan Indrans depend on t~ create 10M sustain Jobs. 

E~tend Saction 646: Aluka "'alive S6tliflmen! Trusts 

Se<:oon 646 or !lIB 1"letn81 R_nUl! coo.. a llows AIa.to Native SeHlemeol Trusts 10 pfoled, 101 

current a rid IlJIUre genefabcns of A/a5ka Natives. V81l13b1e portions oI l1>ell abofiginal larld cia",," 

5~ttlernents unOr!r tflo! Alas~a Na!1'II! C",,,,,s Settlement Act. The 11'1051. prov.ae valu bls """'1OIIl'" and social benefits Ie AIa5~' N~l;..es. irtdoJdirlg caaI> istN>unon5 to proVide /Cf basic needs, 

e<I ...... ' '''''''1 """""' ..... "'~ . ",,:>to I'f'~morob 10 tn.. ,lido"" at><! j~""",1 b<:ncl ;~, In !he OC&..,,,,, 0I!l->e<;e 

b&nef.ti, malty Alaska Nati\les woul<! simPlY 1101 Mve me means 10 proVIde !Of 1Itemse\ltf!$ ,,,d lItel' 

lamilles. 

With regard to I/>e prOVision ~"H I ~a ve introduced H R 2320, WI1'C~ WQIlid n".~e perma""," 

Secrlon 646 ofthtr h11emal Reveflue Cod9, YotloCil;' curre"uy l-CtIedulec1 10 exp;,e on Decerrber 31, 

,",<-.0._ •. "'",.,. ., .. _". .. ,~- - .. ,~ "':!:::.::"~. 

----- --,-- ...",~ 

-~ ... " --- ...... _' -... -
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.055

2012, COfTIP"nl()f'l legislatoon , 5 1337, NOS bee<! inlrodllCed in IhIi U,S. St!nate by Senators 

Mur1<owsld and ~,d' In AugUSI 01 201 I , tile Jou,1 Cotm1lt1 .... "" r-""'100~ o~t,mated 1",,1 !he 

peml8nenl e)llel}Oioo Of Section 546 ...,uld only OMI $4 1 m~ on IlYeI the 1000y"," bvdaat ""MOW 

Seclion 6<16 proVK!&& an eledffl! ,egime 1~1I1 allows e~ ~"'a Nawe Senlemerll Trul l I" 

ma~lm= II1e be!lellls n Pf" .. de to AAls~a Nati." by (i) pro\lioct iJ19 fo.r II lJU514eW!l lax althe 1!l\'if!S1 

>Jl(I,""';ua l rale In r",~ 01 8~y be'nellcla'Y .... \If:'1 rn><ell, (i) a l1"wong oonlriblJ!OO!l5 10 a trust on a ta><, 

ellkoe1tt basl~ . and (iii) rorooidl'n!l Wearnllned admnslra11WO ,!!potting, 

SectiM 6<16 has a uniQue p,ocedural history, and ~ ;" 1", thIS f"3SOn al(>J>e (and nOl baca~stI of 

any 'lrbstaotive defldooc:o/ in its policy mems ."". ,ellOOUD corr<:e<nS aboo<t ~s 0(11) thai Section 6461$ 

nol already a permanent part 01 the Inlern.OI RfflenlJe Code Sectkln 646 was oflg,,,,,lry enaCled , 

810"9 w~h seve",1 other ~r<wisil)(!S , <u an umelsled, misce llaneo"" provr.\or> as part Of tt>e ~OO<>Of1l/C 

GmwIfl and Ta~ Relief RoooncuialiM Act JJf 2001 r EGTRRA1 whoa. bea!u"" 01 lite olIIed to L,"", the 

b<.ldget recortciliation Pm<es$, was 'L!bje<:ll" a December J 1, 2010 sunS<!! prcYiCk>r> R.ather tIlan 

soosequen~y bei"" made Jl(!fmanenl, •• ,,,Ia, 10 01/>8. un, .. l.aled , sce aJlf!O~s p,,:w.oions In 1hB 

2001 tal< I&QlslatJon, Section 646 was eXlf!J)ded /0, !we yaa~ al ..... rt of lroo. Tax Rel,ef, 

U.,.,,,,pioyltloi.'n! ImwlllJlCs R .... u/n"'i •• Ii<"', _ Jt>b Crusl"," Ad of 20117 $uoh thaI ~ is now 

o;er.eduted 1<>eX!l<f8 on Oeoem~f 31, 2012, Once 19a1n, m8 de<:rs.o<1 10 e~a<:1 a ''''''_ytl3' ..,;tension 

((lither ttl"" II pennaoont ~l ens,on~ was not anrlllulOLbkl Ie ,~,um '''' <If revenue COItSjd ..... tian5 

... Ialong 10 Sedioo 646 iIse~ R..u-, il lollowed !r"", a dOClSLon to .. .",d a",",~ tWO-Yi'B r &xU""S;"" 

'" a~ 01 the aXp,nna prtIVisions- 01 EGTRRA wilhcut Bs.ess!og thlJ merits oj a~erna~.e a<tenliol! 

periods fol eil<:h iri !l provision being e oten<led I ",s~Uy ,.,q\J!':St Ihat the Committee ft!medy 

this ar:ddent '" lroe legislat"" pfOCOlS liN make permanent a provision thlll should ha ... origLna l1y 

bee1l enacted as such on !he fi~t IU leglsletlve "''''"'''' _ e)tende. paci<age or otherWiSe - that is 

"vallable In lltefr.rtl.ore. 

MBkirog Section 646 pe<manenl """ finally 'IlmOve tile "",lid ol unceflarnty 00 the ccntinued 

viability of tile Ala."" Native Selilement Trusl al • ve~1cIe forJu".~Mtjj the promlM. 011110 Alaska 

Nauve ClaJmt Senlemenl Act by [mp,ovLng me socioe""flOmic condrttOO Of Alask. Nawt's, n 

intended by CongfB$S 

E;~tend tl>l Indian Coal Produc!l"" Tn C .... dlt !lCPlC) 

The )nd<an Cool PrcduCbor' f"a. Cfedit (tCPTC) has b!!Of1 cn1lca1 to ~Ileping Ind'an 0;)111 

comJl(!titPle IJ1 lhe light maoltet,olace where ""n-Indlan e<>al Ia SUbf/!d 10 /eWe! feOe,al {equorernems 

Con!l' .... s I'-Il.cted Ine ICPlC in an elfOI! 10 nelMl "Z!! the Impacl of pnce dillerenlials created b~ 

SU~U! d,(»CId" (502) _1Ofl1 a U,:)Wanoe$, ~Jf!by keep<flQ IMLM coal cornpeW"" in 1t>e "'9",nat 

ma"'e!. 

TIle 2005 Energ1 Pofic'/ Act established Itt\lICPTC beglMong IJ1 tax )"Vol' 2006 bated upon tne 

numbe.- ollof1. of Indl.." coal p,odured 30<1 sold to an un,etaled party , W~Iior:l1 the credil, !he 

~""_I stabil,ty Of cOilf-mining tribes Wtluld be threattlni!<l luotfler tMn it ~ alteMy t>y ~nl"ediclable 

ma,Ul "",,><I'lions. no. 10 .. of c:oal-m/r1'ng ,.vQ~LJ'" """"lei n~"" ~.d .. _orating im~ on th .... 

Tribe~ In ortler to p.otect e\/j$li~ ~ra ions aod ern:ou,ag.e !lrewt/l, 1110 ICPTe shwld 1>e "",da 

pe!ilTlanen\, ~nd I a l5" urge y<)L.I to ""nside' lim~ed re/,,'mt, F", ehmpll!, the ICPlC st>ould be 

allowed to be used "lla,nsllhe alternal;'" mrntmllln tax. AI.", tI1e requtJemenl Inal ICPTe """I be 

sold Ie an un'l!laled pem"" .t>ould too. deleted Ie al low arod 1!IlCOIJr;'ge tacihlleo ow"",d, in whOle Of in 
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p:Jrt, by h1diatl 1ItIo~s to p~~iclpate and b<!neIlI I.om thot! c:redil Howeve'. at Ii m .... m"m. (his vi'81 

~cred't """ould be e)(!ended 

Ede~d Section 168: Acceleralyd o.preciaLion 

In 199J. Cong.~"" 'BGOO"iZ<!d al """"e ta~ ClI.'<IIIs Wftf8 m<lde vlliI8~'" to alCl in deveOlpment 

p'OJects on Indian laml •• """,,!opInenl el'l<ln~ we,,) ofLetl t>ampe,ed by iI !ado; 01 .5upponing 

inf",strvcture SUflOIJr'\d"g ",seNaOOJ1i . TiI~ CTedJls _e. available lot qua~i/led IrKllan '''''"'Nation 

p.Operty'- Q!opert)Ilor.ated pnmalily 011 teo.e",atkrrls ~nd U$Ild by federal taxp~yurs wnoo oorodtJdOlg 

lnode. or l>us ~ WOUtln 1UC/1 ."s9tVilIioI15. Hcrwevef. tile", wa . hllie im:erWvo fo, in .... lorl 10 

engaae In bU!l""'sl; 01 trade w~~ ,e:rerval"",s bec3u"" of tt>e hiSih capital costs as5Q("j8' ad ""tn 

building tl1e """"ssa!y .,ltBStlu",u", to move goom I,om tll~ trlod ,tionBlly isol3ted lIreas to mar\<et 

To rtlct;ty thiS RUllI"",. Congrws enacted Scc\IQIl 168. e>:1I!tl(!lng eccel/!<a,ed !Iep,_llon 

at/OWanoe 8Iog;b~:ty to certa,n inl,aSIf...:lU!. P1opel\}' locatlld OUl.i<k'. Indian re.ervatiOnS. but 

connected to reservatron in/rastrUClure. Sj)e<::.fK: exttmplElS of suotl"<!ualiliad inIrastfl.lCtl.lre p'openy' 

listed In Sect"", 166 ere ·'Oatls. power lines. wate, sys:ems. ,.ilroad SpUri. arod communo;a!kms 

laCilitie,." S .... 26 US.C. 16a~)(~)(C). 

Section 168 has 01""100 a n invaluab'" in...slmen\ 1O¢j. Since 2003. the pfOVlslOll h;K been 

eJl.lended repea leCIlY. bUl onlY on" c-ne to lWt>-yaar b8$is. Wh,e k .. vllluable 10 keep th<S pnwision 

~Irye In Ihe la. code, ~nlortuna~~. CItlfI 0/ !WO-)'/lar extenSions gf the "C\:OIkI.allld-<lepreclat;"" 

P""'''ooo ara '~suf!\Clenl i!lCeJ1l~ for in"....\men! of ftflW oapi1al in Indian COUIlI<),. !>Specially When 

COtlceming srgniftcanl e<>erQy propo:1s. Devltlopmenl of "'_ projacls ge""ral'l' Ial<es len years g r 

lo<1£Ief. Investors ""Bel g reater oertainly lIlal 1h& b.",.r~ w~1 ~ ~vailable Whe~ It>e projec( cornea on ~ne. Makir>g thl. ~yision permon,,"1 WOUld make lOng-te,m 8""'111 P'Oj...:t. on lrod"," l8r"lds 

att,active lnv .. s!"""" OPPO(l"f1 i!le5. 

In additton 10 a permanent exteni;o", \1 Is my uflder.tanding h~t ;t1; tUrrent~ wntten the 

depreciation alloWance could t>e.lntelp.eled to exclvde cenain pe. of 8""'Qy"retaled "'lra'l",ol"'" 

"S<!ociateO ~t1l ene rM ,MOUrC8 prodUctton. g<lftflralion. transportatiofl. Iranwus.,on. d .. ,t'rbLn,on 

and even carbon seqlllt$mll.ion actiYiIlM. k; a fl!suk, \0 the exllml 1M, conlus/olt may e~j!.1 o.er how 

tn;t ben<lfll ~pplie-s .1he CommlttM 5h~uld COI1s1lltt, whetner .~y cJarlrylrl9 an~uage is necna:J<y to .",w." tribes can lully uliUza Ih<l <!ep,eco~I"'" al'clwance lOt !heir _ ,t and to Inctaase etu!'gy 

inl,a .lruc\ure t~" 1 trenefits Indlans .. 11<1 AmeF\C3·s ecotlDm)' 

Extend tile Ultr~ Low S"II". DIesel C.etll (ULSDI 

Seclions 45H and 17~8 of 100 Inlerrurl Re .... nue Code oIl~86 W8/e enacted by Cor10re5S to 

hlllp defray lite COf1$kle",b'" """,ts a ssoci;l\Bd W~M complyl',!! w,th Environmental Prote<:1"" Agen~ 

(EPA) mQulatio"" thaI ,equi'e<I sma ll businMS ,efine llll0 lim~ sulfU, ill all di<osel foots 10 leSS lIlan 15 

pons pe' million oy J une. 1. 21110 Thl$ Special lax lI ea~"",,1 was a~orded to sma" b1.JSiness rrl1i_~ 

.n reoognllKm ollila enormous C8jlital COSIS Involved in upgrading rvfinefies and (he need to ""ou,e 

adequale supplies of ruel for "lIticuttUte. (Tlinlilg. trn""POnation , fl$/1irtg. and othel industrie!l". In 

"""~ II>e uft'" loW ~ul ". ~~ (UlSD) 1""1 ~1<>nd",<Io. EPA""""" 111'" "6msn ..r",,,. would I,k ...... 

e)<penena> a signdit:8nl an<! of .. proponionall! financiali>a rdshlp' in comp~rog WOlh (he ,egulaltons 

Uooer SocIion 1798, qua lifying .m<IlI bulirn!u- .ef,OQr. ~re PQmulted to de(lUCl. lIS all 

",;pen",. up to 15 percent of In .. COIi16 inwrred to COfT1!It)/ wi!Illh' ul!rn 'clw su~ur dienl (ULSD) 

.tandard Sectoon 45H p,oy.dad thaI ...... 11 bu~ness reflners also """,iva iI cred ~ 01 r.ve <»fIflr; pe, 
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9~lIo~ 01 UlSD ",oduc:ed Up to an efTlO\jm eqU~1 10 Ihe fetllillniog 25~ 01 capltal elI;P'!rIS9!l-, Onlll 

ooslS Incl.J'It<:I up 10 DI!almbe. 31, 200g '1l13l;f,ed !()< ll1e$<! """"""I \alr lrealmel1ts 

At tile lime lila! th~ a~ beooms ..... ," ",eal...:!, ~ was be"'I'<!'d!lul1 8 2009 w nl.el dale would 

p,ovide sllfliclenllead time I<l compl6le me necessary upgrJd&! 10 ooroptv wit~ Ille ,..... fi!9ulaUon 

Unf<>I1ul'a>;efy, the 200l! fi'la nc~1 0'i$1S If'IIerVe<1ed and !he credil nece~sary 10 r"'anOf' many of l!lese 

PlOj<!cls was <lilficu~ . n rKll imJlO'l~, to Qbla'" On top '" r. .... 1'IC1a1 j •• U<I$, Alaska ref.1etS _ 

given thei, own sel 01 ~~a""" <late~ by Ine EPA a~IIog in COJWl'rt "'ith the Sial" 01 A1a!"a) in 

recogn't,on of the unique markel oond<tion. thai e.05l in the stala Nolably wh,1e rafiners '" tha !ewe, 

48 Slales Mad 3ft iI1ter'lr!500 ppm su~, slandar<f for on-road and oil-rood ~sel fuels (unlit June I, 

2001S r>d 2007 'espedil'tlly), Ala';;;. rer.",,", d,l 00' ,", II>e inle<im standard. Th;" separate 

Iraatme'" was largely anribUlable 10 AIaSlo;.'fj hUij8ly dlspropMIOrl&la COr1SUmpUOO 01 av1atioo and 

he.atinoo fu$ as compa!ed 10 mGlor whlcle fuels 

ThuS. tne f,rsl ma,oor deadline fo< small bUsiness ref!fle/"S In A1a.ka was June 1. 2006 for 

produciflg 500 ppm on-toad (mtllor veOoOle) dle ..... loIIcwed b)' J",,~ 1, 2010 to, prod<K:l.ng 500 ppm 

suf/U, non-<Oad 11_ ""'I, and J~ 1, 2012 tor ~ci"9 500 ppm ~Iive and <mI';"" diesel 

fiJm. Nol un!il Jun« 1 2014 wilt the ultra-low suilu( <15 ~ .tar-rd~,d ~w4y to an dleselluel g'ades 

iI1 Alaaka. AI~.ka s exempllon 110m. 1Ile. "iI1leflm* 500 ppm SllOntlart! m~a t lMat smaP tI\I$inass 

relirJery tleoulpnurizali<ln cap"",ly nad to tie bunt as B grau,oots P1'oied 35 oppowd to an 

im:rern<>f1lal change 10 e' ISIOng P''''''''' units _ a ve<y ~'per>II"'" prcp",,11IOO 

As a e." u~. I resPOOlive ~ ,eQue.51 thai sections 4SH and 179B be e xtended foI two years, 

elfeclovll January 1, 2010_ Soch a date win ffW ny gUllrantee 1Il~1 lI sm ll b~ ref",,,", u.III 

halle uot~ sufficient lime I<l """"ert thelr jadli~-s 10 ULSO prcdllction and d"""8 tM M benel~ 

Cong"". Inlef"odecj from h~ lax prOVlS"ml K sawflt to create 

Thank you again for the oppootunlly 10 subonf Ifl<rse r"'l""",lo, end for your con.idera,"" 1 look 

Iooward 10 I'I'Of1w1g ~Ih tile Sut>comlMlee and your ""Ileagues on Ihe u~ Committee!o en.U,," thai 

Ih~ im~Jlant boener~llof tilt! Alaska Nal",e andAme",: .. n In!li"" community or. continued. 
135 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.058

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In 1!I'I9. Coogr= inti.=<! 100 .op 0tIu.. nlln "."., oov=d back 10 10. T<.'TriI.,." .. 10 

111.1:5. bulb bW~.' 'eawns "'" 0tI ~ .bl< '" d" ... r<ll ,,"'0")'0" I'<'rr<><l. 1ho """""IIN "nlm 

I .. ""....:Ior .. !>as b« ... gulorly rrrul ....,,1=1y rcntI.d ovc, ~i""" alOll~ wiln. II'OIIP u( QIbct 

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TO<b~"lo. Vil1!illlsiMrl, CJ<l\1<mr".", ''''lIe< b<mds.lxoch..J by lhese rum "."'. In 

flnonc. CI'""""",,,,, or ..,hooIs. lI<>"I'illll ... nd "thor -.,ti. ll"'blk WOIU in 10. TernlOt)' . ... oy 

r.,"b 110' <""u,ni>m:d ar<: _d '" ""I""'" ... """,1 o.prruoet of lhc: 0<)"""" ".", 0Ild .. o,l<",i.., 

lhc: ItIm indUSlry. In oddil"", '" """"10'0'1\1: lhe h •• raj"Toml.".;.II .... IOIio",iI,p. rn.~" 

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138 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.061

T~timnny fTh ~ IInnnnhlc I) nn ~ r . r.d ... ~rds 

WI)" and Me~n~ Subfn nlmlltec nil Select RC"tl1uC Me~ ure.\ 'luring on "Crrt ain 

t: ~Jliring Tn f'rn inn s" 

Chainnan Tiberi u,ld Ranking M~lI1ber Neal. Ihank )'Oll for Ihe opponunilY 10 provide leslimony 

for Ihe rcrord 01'111<' April 26. 1012, Ways and M~~ns Sllbeomlll;nee on Sfl~1 Rl'vemlC 

MensurC!; hc:lring 10 ~amlm: "cenain expiring In ~ pml'ision,." As Ihe &Icrl Revenuc I>knsures 

Subcornrni{\~'C co,\Siders proposals related 10 Ihe ~lension. modificalion. or lenninmioll Orla~ 

c.xlendcrs. I urge you 10 oonsH:ier proposa l~ Ihal will spllr innovation and pml1lOl~ job crellTion. 

One such pmW"ro is Ih" pcm,ancm exlcn.;on oflhc research ""d dcvdoprncnljR&Dj Ia>. "redi!. 

The R&D lax credil is Villli lo ollr nation's eeollomic gIowlh and long·lcnn stabilily. The 

Con[Vessiol'l3l Research Service (eRS) 11<1les!hat "ll'Chnolilgleal innovation ~ ~ majo dri~ing 

fore" behind long-lenn c.;onolllic,gro",h, iUld R&D serves ~ Ihe lifeblood oflhis innovlliion." II 

is crirical rhar Ih" l,-oder~1 ~ovemm~nl pl3y HI' inl~ !l ral ",Ie in i""enti~ilin.sc<imp"lIil'" to pursue 

R&D domestically, incrcru;c lh~i, produ~livily 1:70\\lh. and ~us13in a lewl ofoconomie 

I'<'r1Om'3n"" crilical I" growing our ~CO!lOlIIy. 

The [totO ta~ credit was linil clla.;t~d Inlllitl_1 'J ~ I tmd 5i""" Ibl lilll<', has bo.'<-"O " .", .. ndcti 1~ 

limcs and sig"iiicalllJy mlw:!iiied livc limcs. During the 11 11h Congress. the AmeriCJ" Recovery 

anti R"i,," CSllllel1t Act (P.I_ Ill-SJ Cl't<'ndcd If,,· Ia:< credit Pllli, when il t~p red in 2()09, 

I'residenl Oooma t.~pn'Sscd suppon fltr a p ... rmnncnl exlensiun orlhe cn-dil. nt Tax Rl'licf. 

Un"ltlpluymenl Coml'<'nsalion Rcauthor;zmion. and Job Cremion ACI (I'.L. 111-340) c,xtcnded 

Ihe cred;llhruugh Dt:\:cmocr 31. 2011. I am pan ofa !!J'Uwillg~'{)aljlion ofMcmlX'rS ofCunWl-'SS. 

oUlSid~ groups. and IJII:mbersoflhc business community who 3rt.' wurkinglOw3ru a permantnt 

~lensjun Ihal would provide incenti vC'S for U.S. businl'Ss~ 10 maintain and ;ncr<'<ls~ R&D jobs 

here in Ih.· U.S. 

While many high-Iechnology comp.:mi.-s developed innovative kchnologies lhat ,'an help lhe 

l lniK'tl SlaK'S main lain ilS iea(k-r:ship in the 21 " "ePlllry global t:\:Qnomy. rn;l1tUlaclun-rs are 

IIlovinl! prod""lioll oflhe,., hi~VlI luc producl, lIulsidcoflh.· counlry. In oruer 10 SII$lail( 

gTOll1h Io:re al hllllH'. we n1U~1 ;ncenlivi2c domesli ~ l1Ianllr3C!tlrin~oflhl l' innovmiOlls 10 I. n.'al~ 

good-paying. Anlericanjob~ across :tll l.:.illleH'I~. 

The pcnllallCfll l{&LllaK credil will bcn~lit many sma ll, "",dium und large compani~, Ihal 

collecti vely ~nlploy milli,)n~ of Am""ican workers ~ngag~d in ~M<:h b;>:;ed in lite U.S, '[he.., 

bu.,ine~>cs co""r n,ujor 'C\Ors of (lur e<.,-onomy indudinl!.acmspa~. biolc'(h'lOloJ;Y. dll!micals. 

dt(:tmnk . ~ergy. inlilmlolilllll('(:hnology. manuf,1cllIring, medical mId heohh tC\:hl1 ologj~. 

ph;mIl,,~culiC'als, so/l""Me. and tele.."'()mmuniealioll$. Such COIllP<' l1ic~ oollc'(til'ely ~pcnd billionS 

of dollars unnually <m R&D. and lhese doUun; pmvide for many high.wnge and hi!!.h-~kill 

employment opponunities. These busi,,~~:;es arc lefllo dccide whether they will spend Ihose 

donars here in tn.: U.S, or abroad. For mallY, the d<'Ci.lion On whel'\! to Cl'('31C Ihc'$l.' R&D jobs 

COI1\I."S down 10 0 choice oclm:ell eilher the I(mporlll)' U.S. R&D I!l.,( ~rctli t. (I' tile m(lre 

altracti~e:l(ld ofi~n penn(Ulent n'$l.'arclt inc"nlivCli abroad. A ""nllan~nl U.S, R&D la;>: tledil is 

lherefore ajob crealing pmpo.lition for lhc U,S. economy in a limc "h~1l we despl:rnlcly n",,"'tIlo 

clIlIIirme oltr climb In cronomic !'\.'Cowl) and tabi!ily. 
139 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.062

:;;uch a pro[)O>n1 has re.:eivcd signitiellrll t.iparti:<;ln 50PPOrlllCW,;S Ih;5 nalion inllle pi";!. In II 

11~liooal poll condo'I.,;,I by Ih~ AUian;:!.' for Anll.'rican Manofo~1Uril\ , 9-1% !If Americal1,;, 

inciliding 95% of Rcpublicans, 93% fTc~ J'arty supporters, und 'J6% ofOe,"~rnls, . oppo rt 

prol'idioll 0 lax credillo companies lh~1 conduct R&D il11hc COUn1 ry lind O1a~e IhcirproducIs 

hcre a~ well. Prcsidem Oroma propos..'\l a pennnl1cl11 ~1\: ~io n in his budgel ~qucst ro r !,iocal 

Year 2013, and 3 numlx:r o fmy l'OlIc~gucs ha n Introd"ced mCa5I1Ti!;\; 10 C.XIC",J or modify Ihe 

R&D 13~ CN...:Iil during thc 112'" Coo.!>f'.'SS, Alllh~':IC prupo.als indic31e thaI supporl f"r 3 

peml3ncnl exlcnsion and cnham;clllcol oflhc ~,,'\lil is robus\, 

To Ihal ~od, I jnlrorloCLod II .R_ 689. Ih, .. 2 1s1 Cemury 1''''C';lmenl ACI. durin!.! Ihe 11 2010 Col1gr~'S&. 

This icgislalioll will support and ':~Ie"d Ihc R&D la ~ CN.'dil. and link illO an incenlivc for 

dUl1n.';;lie m:lJlllfaelurillll. This kg.islmioo " o uld C~ lc1ld 1I1~ R&D U\X credil p.:mmllcmly; rdis<' 

IIIll r:llc oflhe regular cl\'dil fr..un 20 la 25 pl:reenl rur COlllrdC\ r .. 'S<.'a rch Jl<'rfo nncd wilhin the 

United SI~les: 3n<.l im.-reru;c far ~n ",rs Ihe domeSlic manuf3cluring 1m.: VR'dil from 9 \t1 i 5 

pI."TCi.'nL I ,, ~ yuu IU l'Qn~i<.l~r .. po:nnancm e~lcnsion (lflilis proposal to both spur innovalion 

and promOle tile ~calll)mic growth ne.:~ ss:lIy fQr oor t1alioo·s continued prosperity. 

Acconli"g In lh~ lofom,mion Tcd,"olog)' n<.lI""oVUliot1 Fo"nd~liOll, Ihe Unilc<.l SI~les "'>IS Ihe 

pione<'r behind Ihe R&O 1:1~ credil in (he 1981}.;, spumn\l.«anomit ga ins and Ihl' <.I (lp li n af 

simil:1t crcdit~ in ("<)unlri~~ around II", world. Since Ih~n, m~ny n~lio"~ surpass ... <.Ilh~ UnilL"tl 

Slall'S "'ith f;.r tltDrc generous ta.x incentives for research, In fact. according 10 thc Organizalion 

for Eeo ,"i cC(l-.}per~lion an<.l Di.'vdupm~m (OECOI. by 2009,lhc ll.S. h:.<.1 fall en 10 24'" 

amo nJ!. 3S ndUSlr;al;~ed cnu"ltics offering R&D 1m.: inCCH1;"C'S behind counlries li ke h.dia, 

Urd1.il. China, Korea, Singnpon:. and Canada . As a ll.'Suh of our poliei,-'S. !hc U.S. shareof ",lobaJ 

R&D will conlinue 10 fall. 

I urllc !he cnnuniuec 10 g;.-.' .se rious eOI\.Side~llion 10 lh~ proposnl olllli"llJ abow as 3 mcan~ by 

which 10 T'(.'SIOrc Ihe Un illlJ Slall'S m the helm ofresc:ln:h, dcvelopmtlll, mm manufacluring in 

lhi.' ~ cenlury. h~ ;suc ia relum~ on R&D inVt'!ilmenll; will enrich 11K- counlry significanlly ~nd 

heip improve our nallon's e\:onumic u!loo~ and fUlure viabililY. 
140 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.063

Congrtssm,m Earl Bh,menauer 

TesUmOl' y for th e Re<:orrl Oil E~plrjllg Tax Pr"vj on5 

Subcommittee On St:lecl Reve nue Measures 

COnlml ..... o n Way. "nd M .. ano 

May7,20lZ 

Th nk ylm (hairman Tlllerl, Rooking Member Ne~l,.,."d membcr ol'he SUMnmmlt]ee for the 

"PI,onu"lty '0 testify aholl'- the ,ax I,rovl.ion, lndt either hal'"or will ""pil'<' In tn~ n~ar tiJl"r~ . 

As our rommirrl'<' """IU"'e~ t:lx provisiOn$ lhat either c,'plrud;n 20] 1 OT wi!! expire In 

ZOIZ. t write to emphasl.~ hmh my .~ upl'ort for comllrchensll'e t"~ reform and my C"nCern 

th .. Care bo! c""rr:ised In lI,e oVlloa,io," of temporary and o'h .. t .... pruv",ions. Sonte 

~x'.ndc~ run<.'<t suc~ssful ~pproa.he"i 10 challenging prohlem. in our <1Imnmnllics. while 

I>thc~ rep,..,sent impllrtllnl "'ol~\o promo'e I"h creatlon,lnnnv~Hnn,and ccunnmlc ~row'h, 

The foJluw,ng written tcWml>ny e~pa ds on my remarks~ . your slIbromn"nce on IIpril 26. 

In addltlml. I am also \nrl~dln& a len ... ign~d by many of my D~mor ... llc cull~3 "es caillng 

lor tltt e~l cnsion of.ht prodllc.ion la~credlr as,:o()n cs pr:lni<'3ble. 

In my 1'<'11131 '~$llmony, 1 cn' 'h3$j~cd Ihot the "~ttn$;on of tire produ"lon '3X ( ,,,d i, und"r 

wnton ~S of the 13K code is finn ly in 'lte n3lion~1 in'eres' and 3 vlr,,1 (omponenl of Amerln's 

h"ur~ conrl",tit'velleslr. ~ny o.lt.r t:IX ~XI""d",,, also I'lay a key rolt! in srr~ gthcnlng our 

cOTn,nuni.ies, bundlng opportunUles. and creallng jobs. Whil e ce'mliO tllK provlslon~ ",~y be 

un"e<:t:~""ry ;nd deserve elimln.tion. In other ca.d ""tngh, elimlnaUnn is ont.ne nIlPropr'3'. 

r~spo"se rar our cnmn,lI!"e. In .. e.d. we should bolld on I'rov ",rnn~ that ~reworklng and 

roform provisions th" oref:Jlling ,aarhi."" th e OUlrO"'Cl w. ho,,, s.tfor .ltem. ~ot tit .. 

reasoo, I have 00' "'<iuded a cI>nrp",hc n. lvi' lisl In my ,estimony, but I WPl,ld "mpha. ize th e 

valo. or th e follo"~ng provisIons. I look forward to wor~lns with 'he (onunitt"" •• we review 

th~ IltX rode In advance 01 the significant tltalllng('S we /;lec by th~ lnd <)f,hc ycar nd as we 

~mhafk on compr.hon"ive ,d"nn or our tn rode. 

ExtenslDO or the Production Tn Cr~di , HR 3307 

The produrtlon tall rredit under senion 4S or.1te X rDd~. tir!' enact..,;! in l'J92 and ex'endcd 

""ven ';10 •• undcr b!>th IIcp"blican and [IcmocTluk con~Tc" .... enJay. b",ad supporT anl>.s 

'he C(I""try and :Ie""'" ~ political ' J'eclr"m. HR 3307, In,mduc"(] by Mr. Rel~ rt "nd myooelr, 

and suppOrled by many casponsors 00 our committee and on both sides ofthi! ~isl e. supports 

",ultipl. ,erhnolosl" .. such as wind, blmll""', alld sea,hermal. ~~ch contributlng 'D a ,",0,"" 

resilient and cleaner enerllY mix. 

Ourc" 'n mlU~e . hl>u ld coollo"e ev.I" .. inS the", Incentives and upddllng .he,n ." ",fiect 

industry innov~.lons. n.·w 'e'Chnolosle •. and -an Improved undersl~nd;n~ of Ihe.e TC5Ilurce5. 

~ur Inslance, ourcnmmlttee could cnn.lder the n,o..1 efl\denr mcch~nisll) to .OIpport th e 

developn,e", ofoff.hnru I'('''e .... able ",.n,,~ such a< marine clle'llY an d off',hnre .... ind. or in 

'""l'lng .h. longlr development hOliton of g.orhNn' ~1 ~nugy. 
141 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.064

A strong '~new.bl~ en""gy $oeIO' .t'~n~then. o~' en .. gy <!!OJ"ty, In<uI31"" our businesses 

and consumers from prlc~ ~ucUlatIOn!, and prot~c!S oUr enY'i,o"me"L We sp.end hund .... d. of 

billion. of dolla .. abroad uc\, year m fuel "or .[Ohomy. Th~ production t~'-<To:dit I~~ b"ner 

Inv"'lm~nl, h.ll'ing us unlock 3 nearly unlimited ."urn- of do)n""tl[ energy while driving 

;nvetm~m in a market proi&ted to grow to more than $2 trillion by 2020. The oncertJlnty 

tallied by Ihe Inomlng •• p,rntion of the cr('dil i • • h..,ady hampering future Induitry ~rnwlh, 

G,v .. n our "'pand;", bUI $till fragil . emnomy. n"w Is n!>l lh. tim.!O undermi"e Ih .. se. 

subs"'nll~1 public and prlvat~ ;nv Stm.nls. 

Railroad Irack malnte".nc,", <", <I II, IIR 12 1 

Toge,h.r with my ,ollugu. Con~re~swoman !.ynn Jenkin . IlfHroduced Iht Sloort Lin e 

Railroad Reh.bllltanon and Investm~t Act Df 2011. II w''''Rtly has 252 co.pon,o .. 'vanni/'I: 

party and Ideologit;ll lints. The bill e~lends the lax ,,,,dit ~,j~hle for ,hort line ullroad track 

malnlenanc~ under section 45(;. Dul'lng lhe past eigbl yurs th,s «edit has h~d t.')CLremely 

slIong Cong",.soonal supp".~ which is cllnsisfell! with the industry's 'uceess in ",dev"Joplng 

abolndon"d tr3~k and tnck spu .. alld in ~"ilding so,"«SSfu! small (on'panies (hr provld~ 

Shill ping Opt!o". across the «luntry. 

Th~re are now mOr~ than S50shorllin ... ilroad, connecting O".r HI.O!)!) ra,l customers 10 

the n3!1Qn~1 main line 1";111 netwo,k while pre"""""ng M~rly 50,0<10 mile. (>f ~<k lh~L 

cth~rwi,e would have b .... " ab.",Jnned by tho large Cia .. I railroad_,. Often these trock mile. 

r.-reived little Investm."t byits pr~Vr005 CI~ " I owner,; "nd must be upgr;,d.d "nd 

malnt3I"('d. These freight rail ronntct;on~ ~'" enlialto p", e"'ing the fir$t and losl mile of 

connectivity 10 f.clor"' •. grain . I.v"t" .... , JI<Iw., plants. refinori ••. n,ine •. and t .. ln.load 

facUlti._ Ih al employ 0 ..... ' Me ,nlilion Am.rian~. In tilling w.they keep 30 milllll" 

!ru~kload. a year olfthe highw~y, savin~ $1.3 billion per yea. in highway damas~ cOslS. The 

tax cr~d t 3vail.I>I. ,,,,dcr ."cd"n 45G supports a vas! a rray of Amen",," bo.I"." •• an!! 

~.te ston ufth~ noo,t <h"uld be ~ p'lOrity rM our Co""",ltee. 

Tu"free d istributions f...,,,, Indlvld"al retirement . for charitable 

pllrpllses. IIR 2502 

TogethN wltl, nly coUcago~ Cong,o;;~man Wally lIerger. I (ntrod .. ~d IIR 2S02, th~ Publk 

Good IRA Rolin ..... ' Act "f2011 a"d we COYn! sevornl other R~ ubUcan ",,,ml,,,,. nfthe Way. 

~"d M •• ns Committ ~e as COSPO"S<>'$_ The provision! nf IIR 2502 ~ulld 00 "rthe Pe""oh 

Prot .. ction Ac! of2006. l('d by Speaker !lo"hner a"d which I voted to .s uppor~ the Publi c 

Good IRA Rollo".,r Act ls srrongly '''PllOned hy chmities. fou"d"tlons. and oniverslti.s acroSS 

the country. Hy allow;", ta~ fre~ dQn:llloll , from I RAs und~r <ttU;n Ch'U,"<I"n,,<. Ihls 

leglslaUon dnves charitable giving 4nd enlpow~1"!; charltabt. work .cross th~ country. In 

2010. r" lnf\1~nce , ~s a ",suit pf e"'p"nd~d opptlnllnltl •• tQ gl,·. osin~ th" pm.islon, donurs 

" .. nl'ih"l~d 17.77 blillon u, tlu""r-adv;.~tl funds, ' " lncr.a ... of25.5 rere~nt "'HMI""ed to 

1009. This ;nc"",.~ 3\10W' com,"unity foundations-which make as mu,h ~s two-thirds of 

thelr~l1lnl> from dunor-"d.i.rd fund .• -t.o at!ract""w .Ioore •• Of.Ullport. Community 

found.t)."" are often the first place our colISlitu"nts turn to when jn n~ed of kelp and 

r~present a <ourte ofcriliCllI assiSlante '0 uur '~mm"nl io;;. This eg'51~Uoo provIdes 

valudbl~ ,esoureh for communUI ... acros~ the country and Congr~ss should continue Its 

pnllCY "r.upp"nln8 these charlt~blc endeavors. 

Cooo' _ ___ • , __ " >0l0<I .. ,_ ........... 

,,,. ~"'l 
142 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.065

Parity 1 .. clu$l .. n lrum Income lor mpIDyu provld~d m~S$ Ir 1t 3nd 

rkl"~ hr nefil$. IIR ~. ~ ($" " also II R ZS J 

\\fh il~ qU3l1ne{j 'nn<l.or'~'lon fri nge ben.-fllS "ndr •• "",Inn 132 ar. ~ "",,",.nen! f~",ure of 

our t:\lC code. 'hr "atute p,ovl(l e!l different 1ev<!ls nl ,uPfII'" ~.""e~" th . tr~"II, I'rnv(sIO"~ 

and 'he parking provi,lon!!. Th. inn~tlon adju.tmonts. over ,in' o, h.ve Ie<llh ... c ""0 

prrwislons «> divorge 5ubslanll~lIy from <"mmunlty "eeds. DUIi"g the p~", 'h~ yo''''. 

Congress e~l. a"drd 'he 'ro".11 be"efitto m.t<h th ~ parkIng beMRt5 and benet renM transit 

"eod •. I ,up(lOrI ,,,,, (KIlicy. "nrap,ufat"d by Cons'""m.n M,wwern', legIsIJ''''n. II R 24 12. 

whkh •••• "'1 m. mbe .... orthl. Comnlln •• ros(KI",or. Inriudlng COlIgre'lSnI.n G.r\a<I,. 

I would al,1) like to highllghl tIr.1 our «>mmln!'e nn 3do!" , <<>:s1 neuI,.1 n~ m. r. ly by 

.qu,l",ng Ih . p .. klng and \1'3n<11 b~ner."'I' ,ilg)"ly ""juo~d I.~.I II would nOl penall "~ 

'ho.~ taxpayfn Wh6 uIIII.~ Ih~ p;trking ben~fi t .nd if would p,,,,,lde ~ wider array ofopUon~ 

IQ c ... m'~~I.r •. That ..,Iutiton I~ .... "..,\.d in my 1~1s14t1"", IIR 1825. IheC"mmuter R.ll.,/" Act. 

which h~. s""og ~"Pfl'O 't fr"m Ihe Irao.1! cOmmun,'Y ~"J IJ~ISQ roJponso",d by 

COhsressmon R.3n~~I. 

A'nerl .... n es~a",h and omp ldv n~n- ACI of2011 . IlR 942 

Many 5'ud,u h ••• fo uod thol Ihe"v "'l:~ S'l)<l.t """rnS 10 p"V~I. InvosI,n.nts In "",ea,d, nd 

u",,'elopmeo, '""teed then ..... ge p,w,ne relums. While I" it transl.,.,. '",Q Incruse'! 

cOn.umer beA.ro". 1\ abo repre •• ",. ~ m.rI<e, fi"ture. which the govemmenl ha.a key rnle in 

r~modY'n~. By reducinK Ih e ~ft.,..t;o.. Co.II of 'neareh. ,h. credil 000:;1. bllslJltS. InVeSlmenl 

in baSIc ud applie<! rescarch. nd thus ""h.,,<.,. long.tcrtn U.s .• (I>M",,< Krow,lr. I'm proud 10 

.'''PfII'rt tl R 942. wt"ch wtluld eOl~nd the lax cred" for r •• e.rch .nd develop",,","' o<n"'I .~ 

under .we''''n 'I gr'h.t"" <od~. I~d by Cgngr ... man n",dy ond Congrusman l.arson. II 

rep''',"," an imfll'rt.n' pMority fgrgur commince 'hal we .• hQulcl con,i"". m ,ailor and 

'tr~"gth." I<> ma"h our <o""niln,"," ,0 American tIlml>C,ltiven •• " 

Ne .. mark.t. In n edlt. IIR 2655 

Th, Now M~rI!e" TaxC",dJI EOIrnoion Ac! o(lOII.I.d hy Con¥'" .. ,nan C.rlach and 

Conll, .. ,m"n N~.I. and3UPfII'rlN hy myself and n"m"nu. o,her m~m"" ... Qfth~ Commin ••. 

eXI~"cls 0 hlgbl.l' .uco:e •• ful mn,o.uni'y dovelopn,enl mod.l. 1111 2655 c .. ~nds tire New 

M.rk~!. lro8r~m und~r secrinn 450 or,h. '3' ",I(l. for a f" .. her rov. y~.rs. wilh $5 hill"'" ill 

am,,,"1 CTNil a",horlly .n~ an oxc",plloo from AMT for ~w Markcl Ta. Credi' lnvc"menl:l. 

From 2003 102010. New "brkc" Inve .. m~" .. ,otaled 520.9 b\l1lon . IId I~ve ... g.d 1<>101 ProIO<" 

coolS "IS4S bl1l101~ ~"Iocki"g .igl1m",", ",pi,al fro,,, ma"y olher pa ...... ",. Thos. d"Uors lIow 

Imo low_ln<omc Comm""ill ... l",dltlon,11y ov.r!c.oked by <o" ..... nti''""1 c:l l.ital marken. Our 

<o,,,,,,m .... hould priO""'I" Ih ••• lnvnl",.ms ""d& "(lI~' rI ron,n",nlty dt."lopmu, .. au"d 

'he ro""''Y' 

TII""k yau for yuur c ..... fol <oM,il,,"lion af th .. ~ inunli"" •. 'Thl. tutJmuny n' ''''''''rily 

"'I,,,·s_nts only" p",jjal list. gi •• " Ihe Y""t cto"n~". SOO" 1<> "pl'l~ thruu~ <>ur l;,x ."de _ltl1. 

"d orlh. y"or. II""k '"rw.rd I~ workl"g wllh nl)' <o!I~'KU"' un uo. CommlLt." and In the 

CII ngr"' .... w~ .valu,,,, and .1 .... ngU'.n tho .. UP'''1\I; PNlyt<100, 01 ourla!< ""de "nd "" w" 

work to,,·,rd. 3 ronop"h.n\lv" "Mr'" 01' our"", rod •. 

c-___ . ,.-. ... Woco , •• __ ..... 

,_,." 
143 

Rep. Earl Blumenauer 2, Statement 


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(!iollgrtJHi of tI,t llnildl $lnlcG 

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t .... ,"""" 

U.£.IIOu"," w~Y""" M •• "" $0'"","""""" ... SoI«1 ~_"~ 101 ..... ""'" Int.,:..."" IlUU"l!m,,"IIu'''''"~ 

W;"h'"I1 ..... Ill: 70S 15 

Ti", 11""" ... 1>10 Ill"".", Nul 

V.s """"'" "au ~M''''''''. ... W"l' • .,1<1 101 •• " , s.."., ... ,,,II,.,, 

on$o''''' ~ ........ M ... u," nOB 'Io1y1'u",",,,,,,,,~ 6 .. 1<1,,,. I'hroll'nC_1l( 20$15 

",''''' ... 1 ... " .... P""l$Iu", ,''''' .. u.., '''l''_ n, 10'1 ," "'ill "P'''' I" 2011, w, w"U"O 

hil/lll!lht """ ""'Iff 'hoi, e,,1 .... I<'" of 'h' """'urt, ...... ...... 11' ... nnl<l)' I. !he "."""" '",.,e,""d ... , .. 1 ,orr"OOMI" of A", .. I •• ·! '",u .. ''''''Il0l111 ... ,,_.,,,, ..... "U ''''l"",,,,,,~, ,to. "I''' .... il.>~ .. P'''''' "f, •• '~'lloI'9" 

T .... w'"d I "N",",'Y II <TnI'"8 lllOUS11 ..... 0/ lObs .....".. ,h. «'" "'ry ..... Pr<>'''". 11>< "'"rO; '" """" ..... IIfwlnd·,oI;d«l '''''"Ur:.:UlrlllR r.dU,1os. and of!'o ..... It ... P>P"'"" In '""""",,01> "f f.rtII .~ "nd rand, .... Thi"'l'~~ ...... """" .,III'Y'"",I. WInd ~ po.\"l'rll\i """. 

I,",. 12 ",UI;"" '-... , WI"" .. '"'V~,ifto ,h. dl~IIk .. 1on <If Our .IIOflO' .... I'plf ""d 

' ...... lJtIh ... our "",111'",,"'0 '''OllY ",I.".d ,h'II""8""o While Inlprol<f'1I 0.< ... " .... , '""'1IY ...... 1'I1Y. AIlcIl'I .. ,.IIy. ,iI< ..",.. 01,," 46,000 .... "' ..... 15 ofwl,,~ rowor ,,,,,.11«1 'hf'Oll3l< 

lOIO "",,,,.,tr ........ BU mU't"" ,.""., 01' ...... ",,'lu'l"" 

'm. ,'ro<lO<tlO" "'" cr«I", .. h,<Io .";0)'0'""""" """",," Am'51 rogl ........ .., ...... the ""'''pi <11<'<''''''' ..... u ........... " .. " """1 0111 .......... ....,.".,,!>.," I",-t. til ....... "''''''8 """",.""" 

' 0 I ndu",oy IltowU! ami ,h •• JJste..-. of \lie. <R<IIL '" ),<a .. ' oIluwl", .'," .... ,0" 1>1 tho (ted", 

Ib, "'~.I~It.&u .... d<Oflll<d boI .... _79-9l~ r_'U"~ '" "'''j''' "'" Ioosuand ..... , 

Of'jXII'I'",'U ... TI", ufI(M""" ""..,.... I»' ,I", LoomIIlllOlptr.tlor, IIfI~ n<lil" .1,",,1 

""m""""8 fu,uf"Olrodu<I'Y vnwUt. W .... Ou, "'4I,,"~il\@. "u, ,<1111 ''''tIll. ""''''''''¥, ".w ~ ,001. 

'h< """',<1 ""'1<""1""" ........ ", .. "u.1 pul>ll' . nd ,1<1 •• ,.,"."", .. "" 

(h.4 Co t.fA;-- J/;IIt KIId"", M.",b<, ,"c..,~ ..... 

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144 


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146 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.069

Rep, Edolpllus ".:d" To .. ~ (NY- Ill) 

~~ limon y for tile Record 

" Ilril lti'·, 2012 " o\1elllbn ~y" Hu ring on Tn E~tcndct"li 

COII'n>itTef nn "".)"5 Mild ~Iun s 

Sulltnn"nil1ee on Sdctl nu ~ i\ u~~ 

Thank)ou Chairman "i""r; and Ranking 1\ ~<IIber N~"I for holdini _Ihi. he,,;n!!.lo 1!.31hcr 

leSlin",ny rrom our collc","ues on pn'posals ",ja ~d Iq upi,iog la'[ pf'9vi.ions. I wrile <In ~h"lf 

oflhe New Marht..Tas Credil (NMTC) 31ld <II)' bill fiR 5718 "hich mak"" impro"cmcms 10 lax 

code rule. 10 help "'\'jure Ihal the uriginsl inl e'" "flhe NlInc - ecooomic I"vilali7.ali9l1 " is 

achie"ed and more I>rOlI<1 1), sl,ared, 

The N<-w Marht.~ Tax ("redii is de,igr> • .'d 1<1 promOI<- ~, elop<ll~nlaTld job cl"t'3lion in 

economica lly dj~vanUlgl'<l area, and ha:\ tW'''' just Ihal c~er ~il"'c il was first cn~cled. 1'0' thj~ 

mlSim alone il Should be included in an)' bill r"'alC(j 10 eNpiring lax pro' i5ioo:<. N!\ITt :to:livity 

h3$l)tturred in all 50 ~tal~$. Ihe Oi,lricl (>f Cl)jumhiu. and I'ucno Rico, ilut impro~e'nenjs l":);n 

still "" lIlad", 11 K 571 S seek~ 10 make suoh improv"'11~m5. The provi.lio;m would ~~pl nd 

<"I;gibilil)' for jh~ Ne" Markets Tas CredillO tcnain ,'atam t"'n~"> In,lCts around Ihe counl!)' Ihal 

31\' rip'-" lOr job en:-diingdeveiuplllent. 

Ou" t() the irreliuiariticsnr Cellsu:< Tract d31a Ihal g<;lwn, NMTC investment cligihilit)', noon)' 

vacant plolli;n densdy pop ulated a",~s such as my 3"'~ in Umokl}Tl and otheroul~r suhu,b;; of 

large cities arounlllh,· country do nul qualify, even Ihllligh trn:irdc>'ciopmc1l\ "ould be a huge 

job cre~1()r and oITer major benefits for n<'ruby cl)mmUnilin. Thj~ is curremly tru~ in a deeply 

dim .. ~d arm of East New York" hel\.' many adjx<11t ami ~urrou n!?cl'rtSus traC1S mecllhc 

i<x'hniCllI crileriu for NMTC irw..-;.tmenl buI nOI in the vacam plot 010$\ digibl~-and in n~ed of 

development. 

Thi~ provision would allow for Ct"SU~ tmet:l with lillit or no populmion to qualify under cel1nin 

crileria. 11 slnys lrue IlIlhe gmlls all<1 bcndilli the NMTC ... ,1' crt'"JK"d 10 achIeve ",itho"t r1ddillJ.\ 

to the deficit, Specifically. for census lracts chanK1Cri7.M QS low population census ImCIS 

tpopulmil1n k"S.~ Ihnn 2,I}O\). the Icgislalifln proposes Ihnllhc>e lracts "ill qu~ ify pnwidcd Ihe)' 

nlc<:llhc following crileri~. Fir;;t. il must be tontlg\l()\1.1 10 a ~ellsus lrael" hich is lrealed as ~ 

In".-in~ome comlllunity. Second. st,ch ~o"tiiloous ccnsus lract, nlll.ll haw al 1ea.~1 \Wo oflhe 

Ihr<'C indkia of higher ecot\Omlc diSlrl!~S , runhermorc. for an)' such rero [lQIlu lation ~en,u~ 

lrutl, it should"" \1\'31c-d as having t"~ lewis I)fccon<)mic diW'ess which are p"" cIlI in Ihe 

CMtil!!,lI(>us tenSIl~ TroltT. 

E~lending the NI\!TC and n,~king lhis improvemem will spe.:d investmcnts in po:viow.;ly 

unreachaj,1e disndv~ l3gcd comlllunil;e~ .• pumni the job;;. affordable j,ml~ing and services Ihey 

deserve and thaI our l"'llllstilUems 1lC<.... lllis legisblioll rd ir,cs ~nd updales New Mark"ls Ta~ 

Crcdlt InccIllivC':\ for ecooomic gTO"1h in our ta~ code 10 ell6urc Ihcy art us po.~werrul a~ inlended 

~nd as "flecti"c as po65lhlc. Than~ ),011 for conSidering my propo!i!ll. 
147 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.070

ELEANOR IIOLMeS NORTON to_-,,,,,-.-.. 

CO-'T"ON 

1~::.~~~~~N9 

_ _ ""'1 .. ... -... ..-., "" 

-.. ' , ...... .... -""" 'NT 

-,~ 

............. ............... ""' ~, ... ([ongl'cBB of • tI)e 'Dllniteb ~tateB .. A'UI ........... ' ...... f_~' ]lJOllilC O( l\flll'filenlll!i\Jtil 

lUnilb!u!]lon, J)rt 20515-1501 

COlO""'" ON ovt"'AH, A"" OO_'._'N' ~ .. on .. 

--..."" , ...... "'c.w. .• ,'""'!)"''''' ........... Cf ...w_ll."",'oOIHIINItIIMJ 

"~~~':'!i;..~~ ''' """'. ~'DIO(lA"".,tON."' " ... ;v .""" ... ...,... ..... _ ... ~r 

Tr.:stinlOllY ofCongresswomlln Eleanor Holmes Norton 

Cornmillee on Wily! aoo Means, Sui>commiul'C on Select Revenue MCllsurcs 

HeMing on Certain Expiring Tax Provisions 

April 26. '2012 

I strongly support extending the tax inccnt vc~ for business and individulIl investment in 

the District orColurnbill (26 U.s.C. §§ 1400-1400(C»), which expired i1'l 201 I. The D.C. tax 

incentives bIIrely register in their costs to the fedel'lll government, but they lire so critiCIII to 

busioesses.,jobll, homebuyers nnd the gellCl'lll eCQllonly in lhe nntion's cllpitalthat not extending 

all of them would IlllVe ~ significunlnegative etTtct here. 

The D.C. tliX incentives have had bipartis.1n suppbrt since they were cstnblished in 1991 

by II Republican lIouse nnd & Ilo1te Illld signed into lalY by a Ikrnocratic president. The 

incentivcs, whieh were designed to stabilize the District's residcntillitax base and incrcllSCeconomic octivity, have been successful. and ifprogrcss is to continue here, they must be 

cxtended. [II the 2010 CCIiSUS, thc District guined poj)\,lalioll (5.2%) for the first time since the 

1950 census, Ilild much of the itlCl'easc- is traceablc to the homebuyer Inx credit. The homebuyer 

tax vl'I.-dit stllunched Ihc taxpayer exodus for the fil'Sltime in dc.:ades und, with the stabi lity the 

credil initiated, others also decided 10 move 10 the city, inllddition, the Distriot has experienced 

Nignilic"1II economic th.:velopllIent bee~use of the business tax incentives that became available 

for the first time. One ofthcm, a wage credit, hns been pal1ieu]nrly instrumental in leveling the 

playing field in II city where residents hud been SWlul1ped by a huge number of rl.'gional 

residents, onen preempting fair considemLion of local re.,ideuts. 

Despitc these successes, the tllX incentives remain critical if the District is to become 

pel1llancntly selr-sustaining. The. i.~t ict'5 rtvenue capacity is severely limited by the large 

fcdcr"! ~nce on its most valullble land as well as by a federal prohibiiion on taxing 11011-

resident income. Further, the eity alone has no Slale revt:nue souree. a disadvantage thc Collgress 

fou,ld 10 be so severe that it relieved the city of the costs of sorne state funclions in 1997. Still, 

the District continues to be the only city in the United Stale$ that must pay for expensive statc 

functions. including Medicaid. Altl'1ltting and rttaining busincsses,jobs lind homeowners an; 

necessary to maintain the District's progress toward the full and sustainable economically selfsupporting status that is its gOllI. The cost ofthe D.C. tllll: 1l1centives is minimal. lfthe lUX 

incentives arc note ~ICllded, howeV\.'T, Iheir notewonhy nchicvemcnl5 could easily be undone. I 

ask the committee to allow the Distriel to contilluc on its cncoumging pa1h, which has bct-'II 

possible only because of the bIIllUlCed individual and business lax incclltives we seck to cxtend . 

...,

...

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...... ... -... '. N"' .... ......-. _ W_"-"'_'_ ,_ .... - ''''''kill''.", 

, .... __ .. ,,,,, ... - w._ ... o.c:_ ....... , 

=:::=,~i:. ,-- _w,O"* • .., 

"",_ .. l __ U 

... ,,.. __ 0.1'. __ 

-,_ .... .... 

-~ 

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148 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.071

omm~III S 

or el'r~ nl al i" e e ... en l\1<lf1 re 

Rega rding II .R . .(l26 

S ullmitl ed I" Ihr 

Upu.e \V.y. lId Mu os Suhwmillinee Oil Select Revenue ~I .llr es 

'\pril 26. 2012 

I want 10 th~o~ Hou><, Committe.: on Way~ & Me~l\j; Cllaim>on C~mpand Kon~illg Men,ber 

L~vin and Subc:ommitlcc on Selt:CIItC\~nue Me"""re. Chairm"n Tiberi and !tanking Member 

Nea l for holding thiS imponanl h~8fing 011 eKpirilig laX provisions. 

J w~lcome Ihe opponunity to oulline the rn(riL~ of thc bill I inlrodol...,d on M!J1:h 20, II.R . .(226. 

to ~Slend las provisiOilS lurg~l<'d 10 ""cuurag" ;nwsllncnl in small t,usinesses. II ,R. 42211 m~k~s 

pcnn.lncnuhc rull cxdll~ion from gross income and ror Allemali\'c Minimum Tax purposes any 

gain frum the s:.I( 0' ~ch, n!lc of ,,,"signated "Qualifi ed Small Busillo;>SS" (QSIl) slock hdd for 

fiv .. )cars ar 10llger. 1'"" provision was originall), "I'-""IN -as pan h~ .'\m,,11 n IL\;II(',I) Job .• A<" 

of 10/1) and ext,,"d~d in lilt' Tn,- Rt!li~f. Ullcmf,loY'INmllmllr",1Cf) RClllli/Hlri=lll;oll. (1/1(/ Job 

(",..:111;01/ ACI ,1.?QlfI ~oo . if r.ot cXlCrn,led, wilt c~pirc Jan,,,,!) 1.1012. 

As Ihe COIlnlry C1Inlin""li 10 grapple ",m the failou l from Ihe Gr;,UI R~"'S;OIl, including 

!l"J'Sislcnllyhigh unemptny",enl, il is absolutely imp"r:tliw Ihal Conl/,re.'s ~cls Wilh both pUf1>O,e 

and prudcl1<:c 10 suppon lhe J!lU"11l of smllil bu~incss. so tb~l lhey muy ""rand and hir;:. My bill 

isoolya smnlJ pkc~ of a lurger und~ruking for Coogress 10 gelillc ~conomy back on firm 

fOOling and 10 pUI f'l'Oplt 10 work. but il is a vital componcnl in Ihall'quul;On. as on"lmnicr 

inhibitinll sm,,11 busim'oSse5 fwm grow;n!>;s lhe cha llenginllofallracling capil:.1 follo"' ing III,' 

",cessiun. 

I endurse the Dpproach ofH.R. 4216 bo.'CtIuoe il Ulilizc'oS m3rkel fDrees lu demand Ihal l"" la.xpaycr 

benefil il cstabli5hcs Hemally be used 10 Crc3!Cj0b5 by pUllin!; c3p;lalal risk on a lUng""'''' ' 

oo$i" h~r loon providing ~ blankCII3X rUI wilh Ihe vagu .. "hope for Ih" best" urpro~ch 

inherent in olher I~X propl'!!>Ills, 11K 4~26 inslead rc\\'ards Iho"" small C'\)m an!~ thaI markel 

disc;pl;,1C and Co."""I;I;on d~",m fil and Qnly Ih<)St' in\'CSI"m; Ihal pul capillli 31 risL II is" 

targL1cd "pp!'(l;lch Ihat does UIJI bcnefil ~hun'le m spc'\:ulalOrs and Ihat i"CQrpOr'd,e ~ i"'pOn~nl 

~nli·ublj:;e measures. so that il is not g!lmed by c~~li\ e ~II StrC>:lla\\')'ers ~nd lraders. or 

oU!ri\;h1 rraudsl~rs. 

S~clion 1102 of the InTem81 R~wnu~ Code is inT~nded 10 allrncl i""e:;tmcni in ne ... \'emurc~. 

small b\lsine:;s, and ,pecia!i~'ll busine>~ in\,<,slmcuts by providing.ta.~ ;nccnli\'<:$ IU lion· 

corporale lm'eslors Ihnl nmk( lal1g·!~nn in\ '('5Un~nt6 in thcs.: bu~in~=. ll o"e\ e" Ihe Value of 
149 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.072

1m, irK'enli,,~ ~rOOed wtwo "'gular IOIlj;-lem' ClIpilal i!O'illS w~!1' )0"'''''''-..1 1(1 15 perc<'1l1. 

Act()mingiy. COllt.'fds I<'mpor;,rily provided frn- a ful l cxclu,ion und("r &ctkm 1202 10 restore 

Ille illl.'emivc. but u"fol'\unJtcly, because the provision was nOI pcnnan<:nt, il was undcrotililCd, 

t LR. -4226 would bulh pn"Sel'w the fu!l el<clusiOll ~nd ma~cit p"'nnanclIl. 

The billnl,;o i~ "arrowly mrgetcd to shicid it fmm ahu~i\'e Slru~ tu= or uses that would permit 

Ih~ ""nd,t 10 :ICe",,, 10 compani"s Or in~o:.-stors that COl1gressdid fK}1 inl""d. In Mil"r 1(1 qu~lify 

for the bc:nefit. 3 I\(jn-corpornteta~p;lycr must 3Cl1uire and huld stod in 3 'IIm/ijicdCcorpomtion in an uriginal issuallw (di!1'i:lly or through an undemTltl."r\. The definilion ofQSB in 

S«I;on 1202 is n"lToI,ly tailon:d to ml."afl domesti~ C-corporJtiolis iflhe "ggn:gate gross asscts 

oclQ~ thl.'" datl.'"of;~uanee pfthc ,wd: do nol el<cet'd £50 million. the aggrcgategmss w;sct~ of 

Iht corporntion immMi~ldfa ll "r the issu~ote of Siock do not cx~e;!d $50 million. and th" 

C01"p<'nnion agrees to ~ub(11 it to the IRS and its shareholdcn> any /"CporIS Ihat thl! IItS may R'qui!1' 

10 \:lLIT)' oulth" purpo;e orS"ctil)n t~02. 

I hop'" Ihul all Illy collcaguc6 "ill 6uppun Ihi, bill. Thc AIIlCriCl1n proplc d~cn e Q Cp"gn:~s that 

aclS wilh purpmi~ and prud"nc~ and I~ R. 4226 does oolh. It encourages long"ten11 inv""lm~n\s ;n 

small busino:.'SJ and il docs so in a w~y thut utiliows m'lnet forces su lhul 1lte Ixncfits accrue to the 

besl colllpani~ and Ihat actually requires capimltll romeolfth~ sideli~§. ThRn~ )'OLI again for 

Ihe opponunity to provide my pt.-n;p..-cli,·eson this 'mpurt:lnt I~gisb\ion for providing .m311 

businesSo.'S enhanced opportunities 10 access capital. 
150 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.073

lalfnl~nt or Rep, Ilcl1ry A, Wuman 

SU KQmml ll ~C "11 S~ ~cl 1t~\'Cl1l1 e ~lu,' lIr n 

April 26,l012 

1o.k Chainl1an. Amcricuns al l acrQss tile CQunlry agT\-'(: thaI we n .. -eO In Illn"~ lQward 11 

clean etlergy tt<,)nnmy, A clean encr!!}' «'onolH}' 1I1l'"~n ~ good job!; in the United Slal<:s. ciC'<1ncr 

air, and AII,,:ric,m indu:ilri~'$thin CJn ,ucceed in the llIassive gJohlll dc:lll ell~rgy market, 

Wc a~ makingsignificanlpmJl1e5~. Amcrica'~ wind induslry is a f'l"im~ e~amplc oflhe 

strides wc hare lohn in I"«C,,1 )"~ars. O.'cr olle-1hird of all new electricily gcm""uiun , capacilY 

buill during lilt' paSI l'j,'c ),ears cOllies fmlll" ind fIO""r, Wind nnw pmvid~'$ J% nfrhc nation"s 

eI':':lricily. TIle J!.ro\\"in!!.delll~nd lor \lind po\\'" has TmnslaK"d inlo Anlcrieun nlanufacturing 

jnl1s. Five years- ago, jusI15O/. oflhe Wind r{>mpo~nl< ur..."tl in 11)(" US. wcre manufacturul 

domeslieull). No\\", 60~. oflhose oomponcllls arc: mnde in Ih~ U.S. 

The produclion 111..\ cll.'<.iil. or PTC, ha. play~'<.i a eruciru rok- in exp~ndinl?, wind Sen,'rnti"n 

and incrtasingjobs in lhe \lind 5«lOr. Wilhoul Con)!1t'Ssionai Htlil'ln. the PTC "ill c.~p;rc allh~ 

~nd orlhe yenr. Thai would be n big Sl~p b;X""~wMds. 11 is crit!callhal Congr..:55 aCI soon 10 

,",-'lend Ihe I'Tc.. 

Inthc paoit. "hen Ihe PTC has tapr.ed, Ihe \~irnllll(\rlt"T ha~ dropped signif,canllyas;\ 

resl,l1. We cannOI afford 10 haw lhc numbcrofncw wind in~I~llalion~ plummel by 80%" a~ Ihc) 

did the lasl limc the PTe "3S Hllo"'I.'<IIO e~pirc, We n~'a.llhal renew'able energy. And w~ need 

those cleM energy jobs. 

If a projl~1 is ~oing 10 be huil( in 1013. lhe pans J"d turbines need 10 be ordered Jud built 

Ihis year. The UlIC~"1"uinly abour wherher rhe 1''1"('' will be c~tL"IldL"Il has caused wind devclopt'~ 

10 hold olfon placing rhose ortkrs. n"" "'cans layoffs now- eighr ,uonlhs before ~'c PTC 

3CluHt1yexpires. 

ACt..vrdillg 10 lhe Am~ ican Wi.nd E",,'1lY A~wciali"n (A WEA), 1""",-"", ~70 wind 

"'Hnut:1cluring plaulS employing )OJ)OO ,,"(>rke~ in ~2 5laU:S. And IhoscHre jusl lhe 

",,,"ufaclllringj(lbs. TIle ind~lryemr!o)s a loral of75,OOO An",,"can$. Th~jobs an: 

obyiously good n~"s. 13ul rhcyare alw at ri~k ifO"'g1es$ pulls the rug oul Iro'" utldcrlhis 

illduwy. A WF.A espt'cts J7,,000 jobs to be lost b} January 201) if the PTC is IIOt eXlcndc""<;i. 

This is an indUSl,y th", has been g1owing.cvcn ~ the economy h~s becn SII'U!;g!itlS- Congress 

sllould providc slHble s"PPQ" for clc~n ellCJl!...V gC'IIeration 50 Ihal dL ..... elopc~ have thec~""Jimy 

Ih~y need to m3kc i"''CSlments and k,.",p tI,1>SC' workers. 

Tile 1'1"C is nOI IIIC only ;mPQrtanl etl~rgy lax Credil Ihal should be eXlCndcd. The Energy 

P"licy Act of2005 creal~'l.l a Ia.~ credil for allcmati ve rue! mOlor whiclcs and 3 la ~ credit for Ihe 

inslallalion ofaltcmmiw fuding ]}mpc:rty. Uis f'l"nvision, which olTered a 50 celli pl'r !lolllon 

equivalent tax crulit for ltansil Opc:roTors who ulilize allernative fuels, including OOlllpressC"d 

nalUm! gas (CNO) and liquid nmum! gas (LNG)" c,xpil"l."Il m Ihe end 0(2011 . Rcnewin,g lhis t~x 

crediT would f""Ovid~ all i'''[lQflanl S<,Jurec of I"Cvenue ror "tany public lronspofmiO!l agcflCi~ that 
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Ulilil.<': nalilr1ll gas for a ro"ton nr all oflh~jr nee! fueling needs. N01 only would Ihis pn"vision 

provide ~il!.l1ilicanl olfstl\ing revenues IIJ agencies' fuel budgCl>. i. would fu"her supJl(1I'11hc 

,,031. of enhancing our n31ion's long-Iclln slralc~y for enefl!.Y ~curil)' and ils CO lllrihUliOIl!O !he 

r~ducliol\ ofcnrbon rollulion, In 2010, lransil prm'iders nnl;nnwidc s.11'Cd owr $(,1 1111IIion. und 

in Calilomia. ",hieh has 9dopted eNG and I.NG neelS 10 help IlI1pn"v~ ~l\C of the \\,orst air 

qualltl' in the ""lion. Ir.lll"it provider.; S:lvNl ol'er 53-1 milliun. I 3~k thaI you "onsider cx\""ding 

this lax credit 95 well, as Y"'"' commit!.:" evaluH!cS lax credit <·xt .. nsion I~gislati ... n. 
152 

Rep. Howard Berman, Statement 


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May10.1012 

COllunillCC on Ways nlld Means 

Sell"t:1 I{l!vcnue MeasurC'S Subeommiuce 

Chninnnn Cnmp and Ranking Member Levin 

Hearing on Certain Expiring Tax Provisions 

'Ilmrsday. April 26, 2012 

Chainnan Camp and Rankin!; Member Levin. 

We an: writing 10 urge the Comrniuee on Ways and Means to include ill the ta.' 

cxtelldcr legislmion being conSidered, language. com..monly known as Seclion I ~ I, which 

will mailltain film and television produdions in the Unit~d SHues. 

The United Slates Film and Television Industry 

The film and television industry is a viml componem ufthe United States 

~conomy. It gell ernte::; a positive balance oftrndc in virtually every eounlry in whicb it 

does bll~iness. and employs over 2 million American WOrKcrs, both directly and through a 

myriad ofbusinesst:S Ibm provide the foundation and support 10 this industry. In IOlnl. 

nearly $137 billiun in \lagl'S wert"' paid tu tbose wurkers in 2009, including writers. 

perlomlcrs, produCers, er'~ll> ptOple, ~"t:hnitial1s, ~(:coun ants, ciDem~ employe<.-"S, and 

many more l'mployed in aneillarybusincsses. Few industries intbe 1I"0rid Ctln matcll 

\Ibat tile US mm lind televisioll bu,iness h~s achieved since its cre'Jtion over 100 years 

ab'O· 

COntrary to popular perception, the film ~nd tdcvision business is mainly 

comprised of;\ network of~man businl"SSCS iocall'd across the country, ofwllich 83% 

employ fewer than 10 people. Tile industry cuntributcs billiolls each ye~1 to United 

States companies, entreprcncliMi and small businesses and generau.'s over S 15 billion 

~nl1ually in state and fedewlta~es. 

Witll production of films and TV programs occurring tl1mughoUithe United States. 

this industry cr~31CS wcll-payingjobs and genermcs langible economic OO1t'fits to t'itiC'S 

and stllles nationwide. A typico.!1 Illotion pictuTl' employs 350-500 people Proouctionjobs 

Ilave an avernge $lIlary that is ]3% higher thall the l'urrenl nationwide standard. A major 

mOTion piclUrc shOQling on location contributcs 5225,000 el'ery day 10 the local I'<:onom)', 

so it is no surprise that il is seen as a critical ~'lIgine of economic deve lopment il\ m:my 

places Ul'I\)SS tbe country. 

The mstol' of S~tion 181 

In rc~pon se 10 a growing number uf foreign countries implementing policies In 

aUntct Atnl"1ican productions, Congress includcd prol'isiolls, known as Section 18 1, in 
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Ih~ Conli:r~nce Repon 10 the American Jobs Creation Act 01"2004, f'.L 11.18-357 (JOBS). 

The provision was Ilmendl-d in 2008 to further encourn!;e production to rell1~in in the 

United SUMS and renewed as pan o(Lhl' la ~ ~""(lt~ldcrs packages included in \he 

EmCfj1em:y Economic Stabili/.ation Act. P.L 110-343 and then agJin ill 2010 in Ihe Tax 

RelicrUncmploymclll Relluthorizlltion and Job Cn:ation A~t. P.1.. 111-312. 

Imllorlancc or Scc(i(l 1l 1111 

Section I 1J 1 wa,; originally en:atcd by th,' JO[3S Act with our strong suppon. Th~ 

prol·i~ion is a modes!. yt·t imponantloolto help ensurc Ihm feature film and tclevision 

productions r<:main in lil(' Uniled SLates. Section 18 1 helps to CtlUnl<:rnclthc ron:ign 

incentives by lowering the cosl of eapitnl ror domestic production by providing 

immediate ~p~nsing on thc Ii .... t SIS mil1i{m of film produ,·tion costs. Ttl be.:ligibl~_ 

75% o f tbe produt·tion must occur in the Unitt-d Slutes. 

Addilior13lly.lhe lilm industry has becn e.xcludcd from genernl provisions to 

IlIcre3SC bUSiness inVCSll1l('n\ in Lllis country_ Including bonus dcp ~iation measures 

which eOI'~-r \'inu91ly eVl:ry othcr Americun industry. In recenl years_ one faclOr 

justifying the discrimin:uorytmllmcnt of f,lm invcSlmC"l1t und,-r the oonus d,'pn.'ei~lion 

provision was Ihe ('~istcncc OfS<:clion 181 . To ('nd this vital provision !It p timc when 

other industries still r<:ceivc fllr grenler incentives for capiml investment would not only 

be unfair, it would hasK't1 migrnlion of mm and tdel'ision pwduclion ovcrseus. This 

!ndlCitry. whieh i$ such 3ll importilllt Cl.:Ollomic engine fur many cities lind stBlcS, should 

110\ besinglcd oul for a tax illcrc~sc. 

E~\t"11d ng Section I S I will c(,nlinuc to prumolecupital inl'estment and pmd\l~ jon 

in the United States. This will nOi only help tu promote w('\I-paying film industry jobs. 

but will also hun' a ripple en~et pcros~ broad sectors o r the economy by genemting 

~vcnue and cmplnym~nluppOrtunilics furtl wide range of local bu.sin('sscs_ such as 

Cutcrers. dry cleaners. lodging. equipment ~ntal facilities. transportation vendors. and 

many I1Ihers. 

We urge the Committee on Ways and Means to indutlc Ihl.' Section 1!11 prt>I'ision 

in the tux cXk't1dcr legislation currently under review. 

DAVID DREIER 

MCllJo.:r ofCoogrcss 

Sin~crely. 

HOWARD L BERMAN 

MemberofCongfCss 
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Th., IIO[l(),...~ble J~rry F. Costello ~ 

Ways 8nd Ml"llns Committee ··,11,·/111>1:, 

Dir.l· ·· 11I:ar""g 011 Tux £'·/i'lli/I!r$ 

April 26.20!l 

Chai"nan C."'p. Ra'lkin!: Member L~vin and membt.-rs of ,Ill.' I louse Ways Md ~fc311S 

Conn"juL"", t~nk you 10' Ihe opponunity 1(> 'lfftr my wppon for telli .• lation, II.R. 721, I C4Jauthored rcgardinlllhe rni lroad Irnck ,n3imctmrn:e t •. ~ ~redi t previously irn:ludetl in the 2010 t.x 

extend"r.< law. 1 n.."Sp"clfully ...quest Iha t you inciuJe Ihi. i",pon3ll11~~ cmJit in any ",iaIL-d IH.' 

le~islalion Ihe Iiouse m3j' consider this year. 

Til<: rlIiirrmd trock maintcnHncela.~ crc-diL known 3S Section 4SG and utilized b) the shen linc 

r!lilroa,is to rchabililatc and impro,·c freight rullroad truc~>. expired on Dc~cmllc. 3 1. 2011. My 

collea.gl,es and I inlroduced ILR, 721. the Shan Un.: R'liiruad Rchabilit~tilln nnd Im·estlllent ACI 

of2011. "hkh eStcnd~ Section 45G through 2017. A stNi"ht estensinn of cum:ntlaw is scored 

at 165.5 million pc. year ~tcndcd. 

This legislatioll has Strons bif>3I1isan ~uppon in Ih" Iiousc witll 252 rmpunsun, induding 20 

membN'S rnlnl )·(Hlr (unllllillft' . 

T{)d.1Y. shun line milroads "p"rutc 50,000 miles oftrntk and serve mO«: than 12.000 facili!ic, Ihill 

employ awr one million pccpk. Th~ lllajori!Y <l fthc>ebusincss~s arc locnted in ruml and ~mall 

communitie, lacking My olh~. rail l ...... ·iee. 'f he F~rral RlJilroad Adlllini~ lU\lon cstimat~s Ihat 

half ofe\"~ry dollar ! Il"!ll on shon lin.:: rehabilitation 10000s to pay won.:.ell>. 

Rai l(\)lId "'habililll\ion "'<tuires nlm~.ials uch :IS wood tics. >11.'1.'1 ,..~il and ~pikcs. ro<:k fo,...b::tlla~l. 

,uw timber and 51~d fllt bridges. t\Ill!O'lt aU (tflilis material i& mannfactnred in Anlc'lica by 

American \\'orl::crs. further, Ihe railroRd trJck nlaintcnaoc( tax c,.wit maximizes in'·estm''I1t in 

asset~ that will preserve rnillPC!"\ icc. reducc transponation Me! and help custOtn<'fS grow their 

s,(]all businesses. Thest' a:>SelS will be pn)(lucing II Mitive .eturn 01) inwiitJllcnt ror 30!o 40 

)ears. 

It is critiClllth~t this tR\ cn..-dil be indudcd in !inuN ta.~ extend,.,. ICglslatiOll 10 prol'idc impt)n"nt 

l()nlHenn plann;n!! an.d ccnuinty neccSSflr)' to ma ~imilc tmru;punlltj,)n infrustniclUn: i,!'"e,tmenl. 

preserve mil service and mil job>;. 

Thank you for )l)Ur con;;idcralion and t am happy to all51Wr an)' quest'on;; you tnoy hu,·c. 
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CONGRESSMAN JIM MCDERMOTT 

COMMITTEE ON WAYS AND MEANS 

RANKING MEMSE/I. TRADE SUSCOMMlnEE 

W/l.ITTEN SlAUM[NT FOR THE RECORD 

SHEeT REVENUE MEASURES SU8COMMITTH HEARING ON TAX EXTENDERS 

MAY10,20U 

I respectfully submit this statement for the record in support of the following taK proYislons 

that will expire Dr have already e>pired. All refe rences 10 code seCl>ons are to Tille 26 of the 

United Stales Code, otherw,se known as the Internal Rl!Vl!nue Code ("1M Code . 

As a .en'or member of this commillee II Is my ,Incere hope that we wor ~ In a bl-part]s'ln 

manner to e~5ure that these, and other critleal tax provisions, are extended. Tu extender 

legislation provIdes this commIttee and the Congres5 wlth an opportunity 10 examIne the Code 

and Ioo ~ critically at each prO\li, iol> to determine whelher Its exlel>siol> or expiration is ill ttie 

best Inlerest of Our countf'l and Ihe American people. 

TIle DeductIon for State and local Sales Taxes !§164!bHS!i: 

The deductIon for Siale ~nd loc~1 income taxes expired December 31, 2011. This prov'sion is of 

aitieal Importance to Americans livi(lg il> Slate. that generate revel>ue throug h sales taxes and 

do not Impose a stale Income la •. Currently, six stale<; do nOI impose an Income tu, including 

my 110m .. slate of lli l>gton. 

Since 2004, the tax burden of residents in these 6 at~S has been reduced through the 51 31e 

Siles ta ~ deduction. In the absence of this deductlOfl, taxpayer, In Ihese stales would slloulder 

a large r portion ollhe federal income a~ borden, compared to la>payers In otller stales who 

may 13k", a deductIon for Sl ate income la~es paId. The deduction for stau income taxes is a 

permanenl pro~fsion. 

Acco rding 10 tile Washlnglon State Department of Revenue, 850.000 Wasllington reside nts 

saved a tOlal of S4D6 million, wllh an averase savings 01 S478 per few",. These tax savings are 

critlal lO Illese tnpayers as Ihe economy COnllnues 10 climb oUl llle recession. Without this 

deduction, these taxpayers w'oli face a ~igher tax liability, where taxpayers In stales will! an 

income tax will continue to enjoy lower taxes, 

On December of 2011, my collngue, Mr. Broady, and I, along with 68 bi·partisan members of 

the House sent 3 letter to tllis commlltee requesting an e~lerulon of l/lis proviSion. Tllis letter 

was submitted lor the record on April 26, du ring my oral testimony before this commillee. 
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With su~h wong bi pa'll~an ~upport. I urge Ihi~ committee to Include this p'ovl~ion In any tao 

e)(tender package that Is comldered ~nd p~~~ed in thl~ remaining ~e~~lon of Congres~. 

Prlnd pal MQrlgags: Debl ReductjQ!} In08! 

The e~duslon for prindp~1 mortgage debt reduction is ~ crlticill ta~ provision thaI ;~ nece~Silry 

10 stabilize our struggling hou~ing market Section 108 e.ocludes from income, lor til~ purpO'les, 

Cilncelled debt on a principal residence. Ordinarily, di5Ch.Jrged nonrecourse mortga@e debt is 

included as income 10 the mortgagee. Howe~er, at the height 01 the financial crisis, Congress 

enacted Section 108, which would e~clude from income debt discharged on a primary 

residence. 

This provision is critrcal to struggling homeowners across this counlfV, If Section 108 is not 

e)(tended. affected homeowners will facf mMsl~e taK bills for money they ne~er received. 

for InStanCf, a snuggling homeowner whO purchased his home at the height of the MUSing 

bubble IS now underwater on his mortgage - owing mare Ihan Ihe cu""'n\ fair mar~el value 

(fMV) of Ihe home. The [Urrelll fMV of his home has dropped 10 $200,000 and he currently 

o~s $300,000 on his mortgage. The homeowner is fortunale enough to ha~e his lender agree 

10 a $100,000 principal redu<:tion providing needed financial reHef in Ihe lorm of lower monthly 

pilvmenh, While the homeowner does not actually receive any Income, the ta~ code Includes 

the $100,000 in princfpal reduction i'I.5 income, and !s ta~ed Jl ordinary income rales. If ~etl;on 

lOS I~ not extended. Ihi~ homeowner would ultlm~lely be un~ble to alford the tax ~nd likely 

forl!clo~e on his home where he could ha~e otherwiSl! continu.ed living there wilh lower 

payments- benefitting both the homeowner and the lendef. 

Also, in February 01 hi~ year. 49 of th@ St3I@ ttornev~ General, Republican and Democrat, and 

the HVl! major ban~~ agreed to a historic $26 billion ~et1lement - a portion of which would 80 to 

redUCing principal. Hund ~s of thouSilnd, 01 homeownI''' will ieceiVl! this relief. However, il 

Section lOS j~ not extended, Ihe~e homeowners will lind thems lve~ unable to benefit from the 

relief provided under Ihe settlement, frustrating the purpose of Ihe settlemen!. I look forward 

to wOfklng wilh my [olleague~ on Ihe commillee to extend this p,ovi~lon \0 proVIde needed tax 

reliel thai will not only help homeOWners, but slabili,e the weak hOUSing markel. 

Clean Renewabl e Enersy Bond, (§541, 

In 2OOS, Congress created the Clean Renewable Energy Bond (CREB) program to provide the 

not-Ior·profit .ector of the ulil!ty Industry, which $(ONes a quarter of the nation's relail 

customers, to create renewable energy tobs and 10 develop renewable power geneflltion. 

CREBs provide qualifying borrowers, like public power utllitfe. and rural electrk CO--OP~, with 

low inlere~t rate linancing 10 reduce the overall COSI of IlIei' renewable energy projects. 

Since its enactment. the CREB program has been extended three lImes. each lime wi th 

addilional lmprovements to the program, Currenlly, the CREBs allocallon hn been ful ly utilll~ 

, 
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~nd no new alioCiitlon~ have beeo allthoriled by Coogress. despite the preseot and growing 

oeed. 

For the 75% of coosumers serviced by for.profit utilities, their reneWable eoergv projects ire 

supported by the Code througll iocentives like the ;ove~tment tax credit (lTC), production tao 

credit (PTe), aod the 1603 grant program. Unfortunately, oot-tor-profit utilities do not benefit 

Irom tllese locenti~, and rely primarily on the CRESs program to provide ta~ parity for the 

quarter of the oitlon's electric consumers that they serve. Ultimately, CRESs pro~ide a 

oeces!>ary incentive lor public eotities to inven io renewable eoergy projetts allOWing them to 

better compete wll h projects that are able to claim ta. "edlls like the PTe and ITe. 

It is critical that the CREBs p,ogram be e.tended, as Slates continue 10 ,equi,e more of their 

electricity bl' Geoeratl'd from renewable energy \outCl'S. As statl'S incrusl' their mandates 

public PO\Ol(" utilities aod rural electriC co-ops willoeed to raise mo.e capital to nay compllaot 

and fund their renewable energy projects. Without an extension of the CREB\ program, thiS 

aadUlonal capital willoeed to be ral.ea direcl ly from Ihe ratepayers In locreased eoergv cosu. 

Furthermore, the CREBs program must be uocapped to provide full parllV with the iocentives 

available to for-profit utilities. 

10 June of last 'ff'ar, I, along with 65 bi p~rti~ao members of the ~ouse Sellt a letter to th~ 

Cnairman and Rankiog member requestiog the committee ~ (onslderation 01 comparable ta~ 

inceotives, li~e CREBs, io relevant legislatioo be/ore tn~ committee. TodaV, I r~peat this 

request, and ~rge the committee to extend the CREBs prOilram, and provide needed ta~ parity 

to t~e public utility sector. 

Build America Bonds' 

10 2009, the CO(lgress created Build America Bor-ds (BABs) 10 provide direct paYmeot! to state 

and local Govemment> to offset their needed Infrastructtlre aod enerGY generatloo costs. BABs 

provide a direct payment subsJdy or a tax credit ,0 ao amouot equal to 3S% of the bood's 

interest costs or BAB ioterest Income respectiyely. 

BABs have been very well received by both issuers and 'ovestors. According to the S-ecu,iW 

lodustry finaocial Marken Association (5IFMA) approximately 5164.1 billion io BABs have beeo 

offered 10 total, supporting countless projects and jobs across the country. Currently, Treasury 

has no authority to issue additional BABs, despite in success aod support from both 

govemmentaientities aod private industry. 

Nearly every con8ressiooal district has beoefited from BABs. BABs have been directlv 

respoosible for creatln8 jobs aod suplX)rtlng oeeded Infrastructure projects across our country. 

I urge this committee to extend BABs aod continue a program that has b~n iostrumeotal to 

our re(overy. 

1 
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Co sm n ,llI hn Garamcndr, Statement hefore the House W.y, allll Mea,,! Cllillmi"cc 

S" hcllmn,illcr on d~d R~\'en .. c Mu surcs 

Membe r O~ )' Il ca rin!l li n Tu "-:~Ic"d~rs 

April 26. !on 

Chainll~n Tibt:ri. Ranking Memocr Neal, Members uflhe HouS(' \Va~s and M ... ans 

COl11millc't. Ih an~ you for 11K: opponuoilY to.spea~ bi.>f()rc)'O" regarding Ihc priorili~ of 

Nunhcno Calif"mia. I ,,()uld also lik~ 10 acknowledge-my good frieoo and ncigh bl'r, 

Cong~>~man Mike l'hompMIn, l ie ha~ been D champion for lhe rc~idc > of Nonhen, Ca lifomia 

<illd his I~adcrship 011 this CO""nillf'e has made 0 posilive diff~nc~ in thcir li"c~. 

I "'<,)\lId like 10 address thl'l.'e flOlicics lfoal w<Juld creme c'eo[l(,)mie oPP<Jnunily in my 

d'-'Iriel as wdl as naliollw;dc: eXle,lding 11", Fedcl'IIl Rcn~w3bl ... Energy Pmd'lClion T3~ Credil: 

extend ill!; COIlSl-""'"tion ea."''''cnt illccmivo:$; and ntending 100 f"'rcem !:K>nus depn'Cialion for 

capil~1 inwS""ems ,hat arc nlad~ in Amrrica. 

First, I would like 10 speak to 1m, impon8nc~ of e;<tending the "edc",1 KcncwlIble Ener~y 

Production Ta~ Credit (PTC). Sinc~ ;is adoption ," I 992, this r,,,,,ncial inc~"live has pm,idcd 

stabilit), in Ihe energy mark ... !. Owr tl.., pasl five ycal'li, lhe PTC has helped the wind energy 

st.'elor SI"'''' at an average of 35 I"'",em a year. Today im,re an: 75.0(10 j"bs sUPl"m.,..j by Ihe 

wind indllSlr), across all SO Sl:!les. inclu.din ~ manufaclurin\:.jobl;- 31 o~er 470 faciliiies. About 

4JlOO I" 5,000 orl~ jobs are j" Iny hom ... _'tate ofCaliton,ia, Most ....., ... nt)' in mydis1r;ct. I 

loure<!, "ind fann site thai said they would colltinuc eXI',,,,ling only iflhe I'Te w:l.' ext ... nded. 

Since this lV",up us.:s turbinc'S "'iih o~er MII"'!'C~III Ami.·ri<:an conlcn\' Ihis "ill nOI only t reatc 

iU SL' II~lionjob/;-. bu1 many well·pa~ing mannfacturi ngjObl;- in C~lifom;a, l1ncenainl), i~ hllrt!ng 

in'1:Sl mt~lt in Ihis fi eld. bUI ifCuoycs~ oct!; and ~winl y pM..:,s ~n ntc",ion Mtlk I'TC, It "ill 

ensure Iltalthis st'Ctor will oonlilluc to grow for yc~rs 10 come. Funhenllore. 1 believe this bill 

could be SIn:nglhcncd b)' amcnding 11 10 indude a bill I introduced earlier this Conyrt'Sli, II.R. 

4lH. The Mam,facture Rcncwnblc EllC rgySySlem~: Ma~e it in America Ael. ThIs b1ll WIIuld 

creale Americanjob~ b)' cn~uring Ihat taxpayw dollars are >pent on AIII~ric~n-mpdc !\'newahlc 

energy ~y~1enl . IflllY bill "':~ 10 be.adapted Il.~ an amcndment. any compilny taking ad' nnlag~ 

oflh~ PTe would need 10 buy 1(1) percenl AIII~rican oontent Within four years an~r h.,..,,.Jllllng 

law. 

S«ond, I would lih to yoke Illy full ~urP'>n Ibr Ihe Con>cn'3Iiou Ea~cmcm Incell1;,'e 

Act of2(J11. This t>iil w<)uld l"'m1pn~nlly eXlend deduction> for landowllCrs who ;kdi.:aIC Iheir 

Innd 10 I:L,-" 'dopmcnt pf()lc-."ion through tOIUCN~lion e;)se'llenl$, I ~/I(lw thUt ConST"s~ ",en 

Gerlach andTI>on'pSt)n have worked Iwrd 10 end and exp.1l1d Ihe,;e incenliw, for S<'vera.l 

)'ear.; now. Thisl'la!; n",de i1 easier for famler.; a,Jrl rlInchcrs in Northen' Ca lifornia Dnd 

Ihmu\!,houl the country 10 put huooreds OfihQu''1md, orDer<'!; IInMr prtMe\jon. cOI1"rlin~ ,m, 

land tfl"y dep<'1td on for their li"clihwd';. 

Thin!. I would like 10 ,oicc my supP'')n f,)r 100 percent bon", d~1)r~'eiation for C~pit3 1 

ilwCSllncnlwhkh i~ inc hided in Ch~irman Tibcri'~ bHl.II.R. 4191>. In t~ prc"iOl's Con.gn:ss, I 
159 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.082

inlrNUccd Illy OW11 bill ~upporting II)£! perecnl ~~p"'n~ing of cnpital illVl::<tlllem. \.\'hik thi ~ 

in~ellliw is import3nllQ increasing in"esunenl.1 bcli<'ve lh~ bill C:tn bc strenglhened by making 

Ihe "Tilc-ofhpplYfOllly 10 lh~ purehasc of cquip'n~m wi1h a high dnlll':s1ie l'(>n1~nl. fhi5 wmllcl 

create evenmon: glXldj()b~ bY~llcou"'~gillgwmpanic~ til in\'e$\ in Alllerican "orkcl'S. 

Ch~innan Tiberi and kanking Iv ~mbcr Nc~l. thank you ~~i ll ror lh~ opportunilr!O 

~~cn1 on tm",., polici~ Ihal ""uld cr~alC l'C&IIOInic opportunity and 1:0,,<1 johs in Nort hern 

Calirornia as well as nmiOllwidc_ 
160 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.083

Attributed 10: COll9ressm:tn John Garamendi 

Organlzatlon: U.S. House of Representatives 

Staff contact: CIlri!; Austin, legislatiVe Director, Congressman Jolin Garamen<lf, U.S. 

House of Rep<es.entahes. 226 Cilnnon House Office Building, Wa'lhinglon. D.C. 

20515; (202) 225-1860: chlouus! n@ms ·!!\oj/Sf'! 9Q'i. 
161 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.084

'l"u l,mony nr ReI" ,fohn L.ew" 

Ilnu.e Cllmm,lI ee nn W~)'. & I\Ic~" s, SUOCllmm,1I1li' "" ScI«1 Re"cnuc u.un~ 

lI ~ar; ng nn Cen a in :~IIirili g Tn Pr{Wi5inns 

AI'ril26, 2012 

Chuinnan Tilleri and R~nking Mcm~r Nt'"~ 1. I ,,~Ic()mc IIIi5 opp,rruni. y u, <'lfk, 

'L"Slimony rcg~rdjng Ihe _<;(KaUoo "lax eNlendcrs," 

First and foremust, before discussing any spc.;il1c Ia:< provisions, I would like 10 state thaI 

we "uL<{ br~,k .his cydc uf reauthorizing or rencwin!! tax I'r<:",jsinns relroaclivdy aflt" t"'-'y have 

31",ad)' expired t>n Dcc~mbcr list of the p",,'iou~ year, It c",ates unc najmy for American 

rrunili~"S and bU.>inesscs, impeding th"i, ability to plan for !he fu!u,," and can also make il dinieuh 

for them!O make more imrnNiale financia l d~cisions. 

~")rc 10 the f(')C11O of tod~y's discussion, Q, co--chair nf the I'llilaol1hropy Cuucw Wilh 

Ch:liml$n Tib<'ri. I would like!" esp"'.'!; my supp(>11 fOf!he chariHI!>le IRA mllo' ~r provi~ioo. 

Sirn:e pas><'I.l i" 2006, Ihi~ p<ovisiQ<l has b<-cn a popul ar "':ly for people 70V. y""rs and Older I" 

makc don~tions to local charities by tmnsferrinJ,! fundJ from their individu~1 retirement accounl'l. 

In a gre:t1 slatement of \u\'e fot thdr fellow ciliulls aoo tneir communi!iL'S, they choose 10 donale 

their money and j;il·., back 10 Ihe people and rl<ICe~ that helped them prosper. 

In rt'en3t1ing lhis e.xpired lax provision. Conyess has a wo"derful opponunity to support 

and promole charita!>le giv in~. As we all know. many Americans a .... struggling due to high 

uncmplO)lmcnt r.'Ites. Ihe financial criSis. 3nd the decline in the hOU5ing markel, The denmnd for 

the ,;e"'k es M l(')Cal charities nnd foundation~ in our communities has l1\',er Mn greater. EVen 

the most modest gills assist tile "laOt) wonhy CBU":S i,t our communities, 

In addition 10 Ihe charitable IR)\ mllOlw P«l,ision. I support a number of othcr cxpirinf', 

(Jnd e~plrcd) 1.)1: provision_' IhQt arc lhe (OXUS oflhis hearing_ These provisions ioclude. but are 

nOI limi! .. '<.1IO. the following: 

incen.I;""" f"r bindi"""I:tnt! renewable di"""I; 

Ihe neW energy ,·meient home credit; 

the deduction for ccnain ~xpenscs of cicmcmary and secondary sch<xll IC:Xrn.,rs; 

!he ubo"Nhe-linc deductic.on for qualiflw Inilion and relat<'d ~pcnSl>S; 

parity f(,ll" c_xdllSiou from inCOIIlc tor emplnycr_prvv;d\.><1 maSii transi] an<\ l>lIrking 

1lenefiIS; 

(he "x[>lInsion ofadoJ'lion credit and adoption assi5tanc," pro!lr:uns; 

the cXclusiO>l of dfSO'ha!'l!,c ofindeNwncsson principal ~;;idencc; 

the New Markets Tax Credil: 

the mpl o)"~r wa&", credit for emplo)"n"!i ,,110 ar~ ""liI'e dUly lucmhers of Ihe "nif(mn~d 

services; 

!5,ycar str~jl!hl,l oc COSI recovcry for <iua1i li ed kas.:hold improvcments. qualifiro 

""luuraOl bu\ldingsand iml"""elllcnts. and qualifl~d r~'1lIij improVCInenll:>; 

the enhanced dmrirabk d~duelion for cQmribm;ons offood ;n~emory: 

the cnhrulc~d charil:lble <I<'duclion fOr contrihuliousofbook in .. ~nlorics 10 public schools: 

the enhanced ch"ritable deducrion for corporaie comriotuion, of ,,"",puter inl',,"IOry f(,ll" 

L-duc~!i(lnal pul)lOS<.'S; 
162 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.085

TUI,n",o)' ofRtp, ,fohn L.ew" 

Ilou.e Cllmm,lItt 00 ~)'. & M"MIIS, IItx:llmm'" ~ Oil Scl«1 RC"~n"c ~Iu,,,re.· 

!lu ring nn Certain :~ lirill g Tn Pro";5inn5 

April 26, 2012 

Ihe d~docliOf1 allowable wilh l'l'Sprt'l 10 income ~nribU1~ble lU domeJlic producli()J1 

oclivilic'S in Pucno Rico; 

~mp"w~m"~nt 'LQ"" las il\,,~oti, ... s; 

13 .~ incemi,,!.'s for ioves,,,,!.'nl in Ihc District of COlumbia: 

temporary incre'd ~ in 1i",;1 0f1 Cover ovc"]" of rum cxciSll 18XC'S 10 I'u!.'no Rio'Q <lnd Ih!.' 

Virgi n 15Ian!l,: 

the Wo'~ Opponun;lY Tax Credit: 

the IC'111porar yc~elusiol1 of 100 perccfl( of !.!'lin Oil c<:!'1ain small bvsinc-ss st(JoCk; 

the cmpl"ycr wag,~ en.'(!it for a<::livalC<l ",ilimry rc5~",isIS: and 

the iucreas • .'d section 17'> amounlS (5.500,0001$2 million) and CXp<lndC<l ddinilion of 

6(."t;lion 179 propeny. 

For Ihc sAke of brevit)" I ,.ill 1101 indulge in a deep discussion of each uf Ihcs.: ~ 

provisIons, Sumce il 10 !OIl' Ir~ y arc of gI"I.'al va lue to ",ilU 'l~ of American workcn;.. families. 

and 10CIl1 i;x),;ncsse!i. and J bcllc\'e all impon.:ml ,nvestment in Ihe fulUII' "fourcounl')', 

I \han~ Y(')'i a~in for ,he (')pporlunity ttl 1~!lijy. mid look IOntllrd 10 ,",'orkin}! "ilil bolh of 

you a.< Ihe oy~ & M~a!ls C"mmilleeCo'Hjnu~ ;I~ woO: 011 tax cXI~ndcrs. 
163 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.086

ong~~nl n Jos~ ph Crll ~Y 

Slalcmcnt - Tu t;ncndcrs lIu ring 

"'pril 2". 2012 

11lank )'011 Chaiml~n TIt-.cri and Rank.ing Member Ne91 !orconduc1in,B;lhis hearinS tod~l' On 

,""vend expirinsscclion3 Qflh~ laX cooc. 

While I aP!ll""cial~ thai it is being held. I do wani 10 suy tlHlt I hope lhi~ i~ the last y~ar we n.,.,d \Q 

undertllke Ihi~ e~~rt i:;c. TI!<' rt'Dson is I belie"e Sln:mgly thai Detno.:ral~ and Republicall~. lh~ 

11 011-"" and Senale. Con~s and Ihe Whil~ !louse n,-ed 10 cnme 10gClhcr.like we did in 1986.10 

dcvdnp ~ coolpn:h.;'lL~i .. e re-write nf lhc IU~ .ode. 

An)' Ins I\'-wrile 1ll1l;;1 be all inclusive. uddrcssillJl, bolh perron~1 anJ hu!;incr.s laxalion. 

!mIll busin.cssesalld household, need !;!Nater cenainly "ilhinthe "IS code 10 plan Iheir budgets 

~nd mceltiltir linancial obli);o~ liolls. That c.1nOOI be dnne if Congress is eSlablishilig lax policy 

p;!SI de~dline arnl in a piecelllcal f.'lShioll. "hieh is whnl l~1' b..-en happening )ear alkr )"Cllr "ilh 

respccllo Ihese .. ~s nlendcrs billS. 

! Ulll proud'" be a lI1emb....,. Drlhis t()mmintt. and lak~ seriO\l ~lyour ()bli!!.lliion l() wrile and 

Q"cn;e~ Ihe I~S code. I W:lnt to ""fonll the la~ c.-Ide ro 'W pmllH"ltc gfowlh, ~IL~nr~ ~implidl)'. 

l!lJaranlce equil)' and lend to greatcr dl1cicncy for nll "~pll)1:rs, Ilhink Ihese gOllls arc 

bip.lnisan, and I am "'ilUng 10 work willi anyolle- DemocmlSand Republicans alike - who is 

inleresled in puniog fom-dol a sound. slabl" amI comprdwnsi,,"· t:u policy proposal. 

With ""l"'cllO the issue II hand looa),. lh~,~ 3'" """Crnllax exlellde ... I would lik.e 10 hi hli~l. 

";11 Slal1 wilh indi"idu.llaxp;!y",,, .lId Ihen shift 10 Ih" expenditures f""used on Am"rieunjub 

erealDrs. 

1'. r;lI· ror c)!dlls;un frum (nt"lIIt f<:lt ~m pl"l'C r- pru' id~d m." Inr''';1 and nllr~jng h~nefil ' 

IIIKU!21 

Fur indi vidUllIIa.xpa.y~rs. I IDl'.ut SH'On!;ly lhalll!<' Commillcc should extend loop:!rily for 

exciusiull from income for tlllployer-providcd IIlUS IrJnsil arid parking benefils. 

In 201 1. wnr~ers we"" able 10 set aside 5230 a month ~fnre laxes In cover Ihe cnsl nfeilh.er Iheir 

Inmsil commutes or fUf p.1fking. Sioee II~ Slim 01"2012. the commUI~rhencfil ha~ been reduced 

10 SI2S a month. "hilc thnse prople .. hn dril ... • into wmt can now S~l uside S".AO a month before 

taxes 10 pay for parking "sp.m~es . I urge the Conllllille>: 10 mi,.., th~ IIlnss lmnsit >el a.ide 1<'1 

S2~0 for 2012 10 (n~ure parity ~I ... ('('n mas~ Iran!'1 beoelilS and parking "',"efilS. 

Repre:;ellti ngQllecn~ and Ihe Omox, New Y\>Ik. a large oumber ofmyeonSlilllenlS - and o''Cr 

8.S million people in lOI~ J doily In Ihe Iri-stmc ~rea .. take mass 1I":1I>5il into New York CilY. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.087

Th;~ t!l;t: b .... J],: would '()nti" e ~n impon.ant D\:ndilnQl only for tllOS<' itS nlillion rommuten 

who take th~ ~, ~ubway, MetroNQl1h. PATII. or the t ens Island Railroad inl(> l11e City daily. 

but it would help an)' ton"nlll~ratross th.:- tountry who 11';", ma" tr.msi! to g<'1 10 work, 

U!tim~ dy, this D\:udil S3"es eath ofthl.'SC: t3,1(p:.!ym hu ndrerls of dollars per y~ar in 

tr.lnsport~lion wm. asid.:- from the' fao:t h~t it intr.:-a,;e, ~"c g)' con~r;aljQn U well Ill; r.,:duCl."!i 

troOic. rcngC'Stiou uod smog. 

Thj~ nul)' d~ benet;t h~ wmking middle clas!,. 

" ,elllsi!)n !)r di 'c pn:~ nrinddlt dn e" 'In pnndnMI re,i e f1fR -42021 

First enacted in 2007 "hen the for.-closure "ri~is Ixgan. this tax pfO\'ision prev.::nts Strugsling 

h"nK'C\me,.. frQlIt 3 f,,"'ernl incoQ1~ tax li3bilit)' 3., 3 ",suI! ofl1)Ortgage debt forgiw ness from a 

li{llmda) inslitutiotl. 

Beforc this low was enactcd. th~re w~rc situations in \\hkh hOllloowners could lose their home to 

tl,.-oollk and th.-" be fa.:<'<1 whh a ta.~ hill lor the "forgl"en in~(}IH~" repres.:nting theditTercnce 

bc1ll'~n tit<.- v31uc of their home lind thciroutslanding nmrtgage. Wecannol nnd should not roll 

bnck tile clOC~ on this needed dmngc in tax policy. Ld ~ uphold 100 chnngc made b)' Dcmocral~ 

in 2007 by ..,~t~ndingthis Hl.~ provision tor tnll,blcd 1I00l~'Owners. 

E, te n<;un r,lo ~ ".duct;h;'i,\' of Mortgage In," nnet, ;ndud;"g Prem;n",. id Oil FIlA 

and VA IInu,ing lua n. (II R HII RI 

Alollil wilh Representative Nu"l:'5. I am leading the char~c to extend th,s bipaf1 isan tax provision. 

which allowJ homro\\in~R "ho arc paying mortg:l);j: insumncl'to dedu~t lh~'s : costs from \h~ r 

inL'OlW: taxn. 

tlcsi ess rv ngll5 ta."< ~Iicffor hmnc'Own.-rs. it ;s al;oo alK)!her ;ncentive' to hep "'oving 

hunK'Owners uway from the e~otie mortgagc'S, lik~ p;s..~~b.1e k tnortgagl"S, that contribuk"', in 

P.lrt. \0 the ", .. ;eot home fnn.·closure crisis. With the frayle state of the housing !ll'c\or i" I'<.",.-nl 

yeaR, eslcn5i<,)n oflhe privat~ mortgage ;')S"rwlC~ deduction;~ i"Jpnrtanl to e,m"ing U""tlh~n: 

c()n1inu~'S tn Ix inc.:ntivl'S airnl'tl at stabilizing and strcngtlt~ning th~ housin); market. while doing 

:;0 it, a saf~ war. 

to uddition to helping tho~ with trMIijiollitl OlOMIl'll:C insur~nce, it wil13100 extend thf'SC hene{it$ 

to tho~ with !lIlA. VA and Rur..tl iiousing mortgage 1000ns as well. 

EMPLOYERS 

J would al50 like to highligh t mysuppol1 for the folJowini! tax c~etldl!f'S rllCusc-d un ernployers. 

UN: h ani.! !l !lm nt Tu Cre,n (lfR !J 2J 

The ~scar.:h and d\.-\'elop,nem Ins cl'\.'dit \\'35 first creolt,"<! In i'JX I to ioccnti\'ize tcthnological 

ad'llt1cc> and the hIring of workers 10 p>eriorm R&D. 
165 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.088

While COfllV'-'SS is ~xploring ways I<) ~wTit~ th~ tax tOIle. indudi"!/. the pouibility (If 

<'iimin3ting all ~Xpend;lu",~ such as lhis one, we should n<11 lInilal.mJ.lly tak~5uch ~l ic acti<')fl 

lInkss and umil we havc succcnfuU y emlCled rl'3 ta~ refonn into luw. The R&D tax credit 

inc.:nlil'izcs ~~ping ingenuilY nnd bruinpoweron US soil ~ thal'sa good Ihing. 

A,kjilionally. Ihi§ lax credil ellII be: ulili~ed nOl onl)' by large compunies.llke lho~e in Ih~ high 

l,xl! and ph3ml~ceulical fields.. bUI b} sm~llcrcomp.~ulcs such as sonware de, d()pc~3nd 

cnginCt!t'S. lllr~e Ih,' e.\I,-n5inn of the R&D lax credillot 311 American irusinesws. 

Work OtllHlr hmily Tu Credit jHR 211811 

TIlt: Work Opponunity Tax Cn:dit. which was enacled as P"" of 1996 wclt'lrc refonn law. 

provid,'S businesseS:tll im:cn1i\'e to hire n~"'v workers. SiUt:d its ~l1actment. more than 7.5 milliol1 

individllllis have found ~mplo)'mcI11 tlmlligh this proJ;mnl - at leasl 500.000 uflhl'm were rrom 

New York Stale. AI lea~t 15% of New Yor~ tenilicmions l'OI1U: from the Designat,'() 

Commullit)' Roidcnls catcgory, which I!Qvers Empowcnnem Z01l!."S and Enterprise [ommlllli!y 

resj<l~ntg. 

In a r«ent tudy by I'~ler Cappelli j) Uni"C"r.Iit)' ()f Pennsylvnnia Wharton U'L .. in~s, Schooll.llhor 

~onomist found (hnl WOTC "'itS one oflhe 'nosl cost ctTt<>t;,'cjob:l program, Congress has 

enacted. Dr. Cappelli f{lund hatt~ wOTe pmgnllll sawd the go'·cnllllent, on average, S5,()OO 

in fcdcrnl publk assiSllll1l'e payments for every year (hallho.: illdi"idual hired staycd in h~ 

wurkforce at a m,,-~imum cus( Ii! the govenlillenl Qf5 1.500. 

Jllst la~1 ),c"'. lhe COtl)llIitt~",expallded the \VOTC pRlgrmll IQ indude o ur 1't-1umin); ",,,undL'tl 

and unemployed ~ frum the It:!<] and AfJ;haniSlan Wars, I am pleascd Ihc ComlllitlCt' 

n.'W!:l'i~ed the ch~lIengl'S faci ng our returning ~eterons aud worked, in a bipartisan W~)'. 10 

addres51he issue. The cn:U:10\Cl11 of!he Rctuminl< HL'l'()CS and Woundl'll Waniol'> Work 

Opp<)nunilyTas Credils will em:oumgc~mp OYl'r.i to ~hange their hiring pr'JCtire. and Sl..,k til 

hire ,'NerJns. 

II ()w~v.,.. I \1m c()('I(:emed thaI without the extension oflhecore W01'C progrom which api",d 

at Ihecnd ofl3!<t year, many of tile !\lime employers \1110 panic;pme in the traditional WOTC 

progr:lln "iii find thn( Ihey cann"tjusli/y the l'ilSt nf maint ai ning Ih~ wore infrastructure 

n~ded tn mok.: (he elCr'~ns ~n:dit 0 sue~ss, 'Illis infraslructure includes recntltmen! o Ulre3eh. 

Imlning of hiring mnn.agcrs 10 ~SSiS l job npplic all ~ In filing out the IRS prt)'-s~TCcnilll! form. 

includillg lite IRS fonn in their job application. coll<.'Cling the inionnolion requir~'\llo :\<'Cure n 

~'CTljf1crt ti{ln. tllinll the foon \I;thin 28 a)'~ ns well ~s lhe.-.ddcd costs oflrJi nio g Ihese new 

elllp[oyecs. 

It i~ cle"r lh~ Commitk", ought 10 eXlend both the cOre won: provisiun, which e.pirt.'\l at the 

end of 2()1 1. and lhe Vl1cr:ms (n:tiit. which is ;;chl-duled (0 ~pi", al the end of 2012. 
166 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.089

!'II hpan '/'\ N;n Fin and,,!!, (Il l{ 74111 

I u'g" Ih"Cummilll"t:" to I.'xtend the Utt;' ... IinMc;ng(.wcrtion. Thi5 I~\ .. ~p.:ndillll'l'all()ws U.S. 

mlli!in.:llionai iin:mcbl..,rvicc. com!",,,il.''' .uch ru; Ci(ibank which is (he l"'!;l'Sl pri"3(e .<;ec(Of 

~",plt'»l.'r in Qu .. -el1sCoumy. New Yorio.. (I\(' ahili(y H, deFer tl.-dcrallax .. 'S on (heir rn'>n·U.S, 

1i1\1In('i~I'5(rvi""5 infilmc. r~i s pr<!";sion i~ needed ~ il ullow~ US nnJncinl comp:lllil.'S Ihl.' 

ubility 10 cumJle1e in IIl'ers.:u m",kcI$ w;lh r1Un-LJ_S. ban~~ 

New Yon. CilY is tile &10001 c3pil~1 ufc3pilai. and 10 enSurc i\ ",,,,ains in Ihis poSiliuo il is 

~s>en1ialth~llhe K1iw linaMin!!, rules DFSuhp;u1 F. "hieh e.\l'i",d al lhe en~ orluSI yl.'ar.lx· 

I.'Slendeti. TI:> dalc, 20 members Oflh .. llou..;" W~Y' nnd M~~I's C(n"mill."', rolh R~puhlil.'ijn s 

and D~moc"JIS. h~\'( cru;pon'>Qred 1101.' 1~llislu(i'm 1<> make (1\e'IC ruk~ p.:nnancnl. '11,1.' acli,'" 

l"in3""ingruJcs ~rc "O( 3 spec ial inccnt;ve. Rather, lhey a(low US banks. imurunce cllmr~"ti,'S 

and r"llinc~ companil'S 10 apply Ihe nonnnli,.. U.S. !a.~ lawallowint rQr the dcferr~1 of U.S. 

t~"t'!; on i\cliw !<)",illn bu,;n'-'Ss incomt. 

Th.<o;e f\lle~ ul~ play an in,pot1am I'(Ile in finunl.'inglhecxpon of~JdU<.·1!i n,3nuf...,IUn.'d in the 

U.S. 'fa.x e.xp"ns ha"t te~lilio:tJ (hallhese n,k., should 00 ~ml<lnent in IIt.c ,'onlext orl:l~ 

",rom" In lhe ml·'nI;m,·. as we ,nntinUl"O study and hopdully work lQwatt!s n,~anil1l1ful. 

Il"n"oncnt ("" "'limn. an cxt ~nsi"n llr~,C acliw fin<mcin!:\ ruh.", is crilic.IH> all"winG our 

l"inuncial s<:r"IN~ cl101panic~ It'> compel: in r~ig" mnr~~I~. Failun'ttl eSlend 11\eSC rulc~ co~IJ 

rrs~h in lit.< loss of £lobol finun";al S<'" ;~ .. ~ mp,""t;; to fordgn cnmpani<'S and a de.;, linc tll!}.S, 

<':'ipons. 

CFC Luok Through III~ 17.1S! 

I "Qllid like (Q as:;ocia(c m~ ",m~'~5 on thc " ...,d (0 I!Xlcnd the CfC l.ook 'nu"QlIl!.h provision 

"ith Ib;)s.- (!fCon{!,rC5smon OoO:;"'n). Who h~5 cirel,lmcd ~ hipanlSlln lCl1cr In Ihe Commiu.:-c<", 

Ihis C':(lcnd ..... T~C C LQQ~ Through oro\'i;inn helpS cnsu", h~tlhc ta.~ law~ <)f,his coumT) 

pU! worldwide American cQmpan;"'; onu level playing tield "ito their counlcrp:tru &om -abl"Q3d, 

The("rc Lu<,k Through pro~i'i"n ~nahlcs 1In:"'lercnmf":t il iv,~w:s~ and ,implil; • ..:! h,,,i,1I$.' 

lann in~ for Americsn oom""r1ies \Vith~cli\';li~", abrolld. like SO rnanycornp:lnic., Ihal are hast...t 

in Nc\\ Yon. City. b)' Ic'elin!! lhe play ng l"icld ,,'lIh rcspc.::t (0 our inlcmnilon.:ll ~O"' rct ilO rs, 

l.u<th"ld lI ~prui~' " l l1K l2/i~1 

I ur),;,e (h,' Committe<- 10 I.'.Xlcnd an impon~nl pru~i~io" oftru.: lull' known as l<!:1schold 

dCI"""";al;on. "hiell would ali!>w 3 15·~\'ar depreciation lire fOr cOlllln.",iall~OlSI'hold 

impm,'ements. {lltw",is(, 1Io.)n11 U5 Ihe buil" -llutS buildi ~ """cnl make lil cusl"mizc on;c~ 

~PO""c In ~ lenanf~ b""inc~ l1<:ed~. 'I1,i. h1l1 i~ good for dc,'dop.:f!;. hU:iint'Sses, and II", 

~onstruclion und buildin ~ (rades. With !Jillions of dollars in,..,led in leasehold impro"cmcms in 

.. '{)mmcrci:,1 r~31 eSlale annually, (Ill: im[XIc( "re~lcndi"g umil "'t' undcnukecompro:~.nsiv"'3x 

",rum, _ thi. I!Xpcnditur" is an imponant way 10 ~PU' gro\\1h arul employmenl in (11<: 

c('nstn'-'Iion !idd. 

;;;::,;,~': ':,~~;;:;,::,'~ ~:.~ Yon. eiL.." wilh One indu;l,.,. _ finmc;al servi~.., - my city's ...,0'10111)1 i :uJd "ib"mt as iLS ~opk. 
167 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.090

For e.xm"rl~, aooll,c't" key indus!!)' andj~b C"-"IIlor in New Yutk is Ihe I<!,leruinmelll indUSI!') . 

Fur1hj~ ,c"!iOo. I u'Bee Ih~ C<>mmiu,,,· t<>C ~lcml the p,uvi;;i()Il ,d~ICd Ii. (hi: proilUcl,C!n 

f.~~!di1Un:s related 10 domf"Stk film ~,d t~lcvision pmduttion~. 

Koown fI.~ Scuion 181 nrlhc 1~ x (-()de. I.,is r,nvi~ion .. ·us c~p.:.ndrd ~\cr.ll )cars ~~ So) tM! ~ 

prod""~r can expense up tu S I ~ milliun in Ih,' fi,sl ) eM. 1;0' larger bOOIl'"1 films 3,1d !clcvi.iul\ 

,ho"·H, soch as Iho,,", product:<!;" New York Cil)" this is a ,."I""ble lax cxp<ndilu", Illal has -

nnJ "ill ift)(lendM - hdped il\i.'cnli,jl.t Ihe t!;'tum ,)fcnlerulnmc!\l pmdu~lion 10 New Yo'~ 

Cily, k~pinsthou",, 'Kl 5 uf unil'niudjoils ~r al oome. 

Settion I''I - Smpll ll."in .... ' t:,pen' iftg 

M} homelown communi!} ;$ home tu B large numbe, ofsmQII bu~ines5c~. such as Iho"", ;nlhe 

Ou...:n. neighborhOQd of J;ock.'IOO Il ei&hl~. I am ~I mng "u ppontrofproviding& mort: l!,""""''''; 

melhod for Ih.>so: bus ll<'SSC~ 10 'Hilc--ofT Ih~ e<»lS of ne\\ i""lslmcnlS or pu"'h~'S, li c 

c-q"ir t~ ~1l! 3"d ".'el'"o (l!?~ . ! u'l:\" 1he Conlluilt,..., I" ,· \lc~d Ih~S<' bt'ndiu inln 201 J al (hd r 1012 

ral~, inde ~cd for inflalion. 

N.,,' !\luke! Tn end', (N~ ITCl ""l!r n'!II1t 26S5) 

The Ne .. Markel 'ra)( C~dil pn'gtanl, l.,.,a~lcd in P«e,nber 2000, SC,YCS a.~ 'hc only fcdo:rnllB:'< 

~""dil program ruT comme",iml pl'Qje~ls ill low,; ncome areas. Thi~ program is hdpinJ! 10 ~!'I:al" 

jobs and ",_il.lize emit!;' neigilborhoc .. h. I'roj''els 1"'1!" and ",nalllil:!1 m".1 1i'~"III<i.1 sp;...:ialisls 

'lJ:lfI-" \\nuld oeV("feumC 10 fru;I;QII n~ o11l<'''''ise laking shape tk.'<1l .... e oftil~ I&l< en-dit.>. 

Th"." tU .... m :dilS m~ke ri~kicr p"~j''CI' ",Me viable by , .. :du~in~ lh" ddll a,;sociUled "iih 

d"v~lopmcnt ~O~IS. P,i"ale i","'~lol"'I pay Ic,~ in 13S"" and lhe dc,'c!ol'<'r pas"', lhe saving> Oft 11) 

.hi: communily by, for example, lowering relllpe' sq""'" fOOl. This program has bee" \"<!f)' 

helpful 10 Cl":nMmi"lIl1y djsadvanla~ artas nfNe" York City und I urge ils eonlin lLHli(l1l, 

SJl"'<'ifically, i" New Ynrk Cily. Ihe NI\H'(' 1, 1lS prov idl-d a nu",be,. nfimronam tIono\its. For 

cxumple, Ihe New Yorl: CommUnil)' Bonk h~s ",ceived 542 million in N1.ITC awords which lhty 

hal'e in lum u>'Cd 10 "pron du"" to $200 million or diSIress«! communily proj<'<:15 in (he pru;l 5 

ycars, 011 "iihin Ihe 5 borougll' "fNYC. Theyhavc (unde,) 18 projecls Cily_wide indllding 

in"~:lli~ in husincss op<'rollons in 1'1 1l ;;hi~ ~nd Corona. Qu,"'n~. a~ ... cil as In the ll ron~ 

Trml''''''n' Inore, .. r in Li,n" nil Cn .... (h'~. or Rum t:,d.e 'r-H' 10 I'"en" Iti"" 0"'( Ih 

Virgin Island, 

J would t;~c III join wilh my c"l(~a&uc'S from !'lI"rtO Iti co and U.S. Vi~in IslMds lending my 

.upport for an ""'I~n ;"n or II,~ ~.>:;"!ing tL~ pro"i.io" to ~lend Ih. ",odes1 ;nc...,as~ iu (he lim il 

OIllhe c<>'crnvernl Oilll exei!>C la\CS In l'l>enO Iti<:o Oo\d Ihe U.S. V"l!in IslMtls. The pufJ1OS" 01 

Ih" progrJm i. to pro" ~ budgclJry suwon !O the Imi(urial gowmlll~,m and, hi~IOr;c~II), 

(" ,Kling h~s hecn lISCd primarily for Ce<fllO",;C dcwlopmem, heallh C3"', i!lii-'ll,truCI","" ~-duca!inn 

QnJ I~nd Nn,;cn':uioll, 

liuitd Ame i< ~ IInnd" 

Finnlly ... hilc I undns1Mil il is oUI,ide "flhe param"'''r.<oflnis hc .... ;ng. I ... <>ulilll~t In "oi~" 

my strong ~uppon fur Ihc lllliid Amc,,;cJ BondS program. 
168 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.091

An inf)O~al w b<Jnd progr\llll treated in ~ Ret:o\'<'T}' Act, ;1 has h~lp<'d .... sha~8 llL~ eX~n1pl 

munitipal bond m:Lrk<"l 11,,'1 had slIMed 10 II. halt in JOO8 dll~ LO Ihe fil13nti~1 cri~i . l1lh~ tl'S~ 

lilsn2 year.; or .. , lifespan. illillcd a massi'·c(1jpit.:ll in"~lm~nl ' ·IlCUUIll and rl'pn'>l:nte<i II.ln"'SI 

onc quaner ofthc emire IHllnicipal oond iSSLl:III(,~ in ,ht,l COUnl')', indudingan injection of o,·er 

SI81 billion in cllpilnl in>'e!'llllenll"1Iioll,,·i<JC. 

S~ci 1tIlIl )', Ih .. • Build AmenCIL Bonds progrnlH ~hanl1Cloo over $20.5 billion in new infr\l;;Lructurc 

funding \0 New York Slale belw .. ",n 2009 nlld 201 0 and helped funds local projecls like Pha!;t 

O"e ofWill~t.s l'l]inl in my Ct,JIl.gJ<',s5;<)naJ nisl";el. 1he EaS1 Side cc~ projec1. and Ihe Second 

""""ue Suhway - all of"hich arc v;I~1 infraslruclure pl"Qj~1li rh31 have e .... at~d "ell. j1<'),i"g. 

gQOd jobs ill New York City. 

J would ur~e Ihe Comminet: U) reau1 horize Ihis very suc~,-"Ssrul bond program. 

A!lain. my ,hanks 10 Ihe Chainnan and Ran~il1!! ~kmb<:r for ai!ol'ing me Ihe opportunity 10 

II:'5,iry loony. Thank you. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.092

tat nt for the R«ord 

"y 

Tbe 1I nor~hk ~vi n Hnuly_TXOH 

Heforr the 5uheunlmiUrr on !).Ircl RCVrllUC Mnwrt'S 

ofthr lIouse C'!nlmillu On W~}'~ . nd 1\·l u ns 

lI ~ring on rr ~in .; _piring Tu I'r l) "i s 

Allril26, 2012 

Mr. Ch<iinnan (lild Ranking. Mcmbt.-rNc31. (h<ink YOII fur the upponullilj 10 apIXar bcfurt: }uu 

loday (lnd lalk aboul l"u issu~s ufgreat imronance as we mu\'C luwaN cOlllprehcl\~i\'c Ill~ 

l'<!foou. ellcQuroging Amcrie:l1l cump;.'tiliv.:ucss Jnd la ~paycr fairul'"Ss_ 

America is lh~ "orld's lead ing inno~alor - de\'clopillg life_s.winj,llcchtlolugics_ $18Ie-of_ 

~,c an computer syslcms. and brt:aklhl"Qu~ manufacturing prodUCIS_ huI W~ arc losing ground 

to cO"'I"',im", alOund Ihe \\'orl<.l . The R&D c",dil was lirsl adoplc..t J,y Congre,s in I '.l81. hul 

since mal lime. il h"" been c)(t~",k..t some 14 limes. "ilh Ihe cu""ntcre<.lil e.Jo.llired at Ihe eOO of 

2011. 

The U.S. sh~",,,f £1':'001 rcsdn:h and d~~el(lpmenl has lI en from 38% in 1'199 lu 3 1% 

in 2009. "'hi Ie· China's h:lr~ has increased foorf"ld. Olher cmmlne, are moving ahead of uS by 

ol"lcrinQ 1tOng(r i",:emi,.:s to anrncl rcS<::arch and Mwlopment and Ih" ~ood-p;lyin!!jol>s Ih~1 \\0 

with il 10 lhi.'ir markets. In 2009, Ihe United Slales mnked Hlh OUI of38 counlries in Ihe slrength 

ofils R&D inccnli'·es. II is lime "e &-'1 Iml:k On Ihe pla}ing field hy modernizing Ihe Anterican 

R&O tax c .... '!Iil and ke.:ping Am"ri~~n job~ and jllllo\ tlon here ru home. 

Allhe bo:ginninll uflhis Confl".-ss. 1. along with Con~sllllln John Larson, inlrodncc:d 

H.R. '.l42. The "",~rican RC"SCarch aod COlllJlCtitivcn,"ss Act of2011 . 10 simplifY lind lr~nglhen 

the U.S. credit b)' inc~n.'i ing the "ahern~ti"e Jimplilied ,redit" fmm 14% 10 20% ~nd making it 

pemlan~nt_ whik pmviding B onO"_Y"Jr bridge for h~ comp!ln;~s that still uSC tho: -1rrulilional 

c,..,d1l.-10 December J I. 2012. 

The credit would ~pply equally to dll co"'p:!nie~ that perform R&D in til<" United ~t~s 

aOO would modemi~ tht- ,,.;...til by impliiYing and ; n"ngtl'len;nll il. Intre:t!;ing the alt ... mmiw 

simpliliw trwit rJI"!O 20% w(luld dllow companies to i~k:lS~ their curr~nl R&O ~pe nding. 

mlract new R&D spondinJ;. and udd U.s. jobs. 

1'.,., "lfomlal!On Techr1l)log) and lnnol"ation Fotllldation has cstinlalcd Ihat ~;o.:panding Ihe 

AltCfll.'ltiw Silllplifil<d C,.;.<dit (ASC) from 14 10 20 I"'rI:.:nt "ould ~pur Ihe c~al;on of 162,000 

jobs in thl.> shun run (and an ~dd;liunally, bUI unspecified. number of jobs in the lunger 

run/.increase GDP by $66 billion annually and the numtlcT Ufp:,IC1l1S filed by ml cSlinMro 3.80(). 

It is alsu ;I1lPQr1Itnl 1\1 pro\'id( l·~rt.lin\y fOT ("t)mpanie~ lhal11l3ke lunj!.-tctltl inVC"Sltll(nlS in 

R&D. On a"crage, R&D projfcls ~c 5- 1 0 rca",_ Mak ing the credil perm""C"1 would pro"ide 
170 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.093

coolpanie1; th~ ~onfiJe"et lilt.')' nl'ffi 10 make those long·lenn inveSlnl~nlS. As ,n' lllO~ loward 

making lhe R&D ~",dil r>ennanem in ta)( ",foml. w·" mUSI tak ~ aliion now Iii ~)(Iend Ih" cn:dil 

fur2012aod201J. 

r,xI.ndinjt. lh~ federal ;ncom~ lax ded~lion IQr s\'"11~ ~nd local sal~ s I,,-'''S will ~n:ale 

fairness and "'Iuit)' for Ih~ uwr 6~ Inilliun pNpl~ livinG in TexllS, Florida, Washin!>!ton. 

Tcn""sse.:. Ne~ada. South Dakota. ;lJ1d Wyoming. whi"h ha\"e flO I"'rso",,1 income lax. For Ih8\ 

reaSOn I illln'xlu", .. 1 H.It. 476. whidl ",ould m3~e pcrnmncnl It I<: smle and local ~Ies I ... " 

dC\l"elion. ~"ding lhe I"'rylClual cycle ofcx[lirnlioll nnd xlensi"", 

In December 201 I. In a demonstralion of Mmllll bip;,niSOlIl surrpon for eXleltsion of Ihe 

~lalC :<;lIes I~X deduclion. I. und Con!!res.~m"n Jim McDennol!. "ere joined by (,6 Mcmbt.-n of 

COngre!lS in ,igllinS Ihe nlluchcd klll.'r 10 Ch~irn1an (;lUnp und Ranking Member t.c"in urging 

1""1 Ihe de'lluclion be cO"ljnu~d. Atthe end of Mnrch. a joint leUer frolll lhe Glwemor; of lhe 

se~en Slftl"'; Wilhoul ~tal .. inwme !a}(es ,em 3 l..tler 10 1'l<lUse and S""ate leadership in $Ilppon of 

Ollr effort. 

In 2008. SU$o1n Combs. 11'1<' lb;as Com pi roller of Public ,\ c(."(Jums.. ~xplnined Ihe folio" ing 

bene I,\!; 111;11 TC,lian~ ~njoyed rrom Ihe dcduclion and urge'll ils exlcnsion bcyornJ 2007: 

ESlendin!, Ihe dedoclion \\<luld 6OI\'e Texans B proje;:le<i 11.2 billion 0 yenr. or an 3"NlIge 

0(S52H ptr filer dniming th~ dedllction, h.'lSCd on 13X )'I::u 2005 dow, "hich "'3" Ihe 

IDlesl }1.'.1t Slale dut~ WBS al-'oilable: 

• Mainlaining Ih~ deduction for tax )'~ar 2008 and ix-yond \\ollld be vi tally imponanl to Ihe 

$(ale, in lhal il is aS50dm<'ll wi,h bem·c""" J5,700and 25,700j"bs ".,.] $1. t bHli~", hI $1.-1 

billion in gross ~\.lIc prod""\. 

In T exas. the SllItc I know bc::sl. Ihe 2009 tax ycor infornlalil>fl from ~\C IRS showed lhal 2.1 

",i!lion T~a~ file.,; claimcd s-t.O biUion in sak-l:; lax dt.-dLlClions. ",""ulling in ~"'Iimalcd I~X 

savings of m'er St billion, And sir.;e 2003. owr 600.(I()() mure Tc.~ans haw boo..:n ilcmizing Iheir 

\;IX rclUms "ilh L' sob,lanliul jXlnion cluimin8 lhe r.nlcs I~x dcdu.:lion. EXI~l"Iding lhe sales \;I ~ 

dcduclion wiU benefit millions of Texal1S "ho work hard I,~ k(cp Ihe Slntc·S «<lnom} I'ibmnl, It 

is vil~lIy impon rull for I;lxpalers In Slmc~ "llhoUI an i"cmn~ lax 10 be able 10 \;I~( Ihe sales I~~ 

deducllon "lid Ix"' ()n equal foolinll Willi rcsidcnl~ in olher ~t31CS. The deduclion pul~ eSlr.lllloney 

in Te~allS' POC~CI~ which helpS OilY fbmily's budgd. 

Amerjrnn~ li"ing ,n Slah!S Wilhoul i"",-"(Jmc laxes rigtl1fully cspccllhat Ihey ..... iII conlinue 10 be. 

l""'le'll equally und('r Iht law by 1M rWi:r.l1 govcrnmcm. rcJ:!.'lrdless of Ihe local lax syslem 

el«led by Itwir slm~. It i~ the righl aoo fair Ihing 10 do. 

Th~nl: y<lU. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.094

a:Ullgrl'E~ nf 1I!l' lluitdl §.tnh'n 

UI~ollhl\llpu , DC!: :!US\:; 

Decunl:><:r 5, 2011 

Tho! Il o""",bl~ Dav~ Camp 

C~_ 

CommltiteM Way,; lind M"""" 

U.s, Ilo_ofl!~o:n ... ti_ 

W""tIlOI1011, D.C. 20515 

1'110> lI0n0nble S""""," Lev," 

Rank,ns M<mber 

Commlu...,oo Wol'1' lnd MOll"" 

V,S. llou..- of Rqnsemoh_ 

WtslllngiOll, D,C. 1(I~15 

A. m<mb<n from Sial .. "'lhoul an 'I\I:O<lIC 11.\, ... ~ wril. 10 ~ Y"" 10 I~<ludt an 

.... lens"", "fib<: SUet. ancll(lCal a.l0$ l.llI d"<lucuo" in ""Y I"" •• t.oo .... pock_g" dunna !he 

.."",.,ning " '<:eb"fttlo fint""';oo ofthtc 1 J~"CO"W'<'", 0... oh}ottlvd. 10 I"'Wldc:1I\It 

O(II'\S!;t ..... I. wilh ,b<: sam<l' Ireot""",1 afford"" to ftI,dc:n~ or ~~ "·'tll on I""",n" I"" . 

"... ... 1.,. I"" d"""",,,,,, ",',," I .. ",yers in OUl" ""I.,. mlllo""" of dollars per l""" """ i •• vilol 

oompooo:nl ofOW' ~""",' ~in. ipu.ninssmWlh and creo"nsJoM. Un/OnulUlloly, as)'lll> 

),00.0'. the .. la tn dod"tt''''' "lll C>.p''''u, them<! ,,(2011. Ifl"" dc:;IlII.1.on i,1I<>! ""ltnIkd in. 

lim.l~ ma,,,,,,,. OU'<:<>n.S1itllClliS w,lI oot be .ble IOdcdutt too'Slaleood IocsI .. l .. I .... on their 

2011 fodcr.tl In rctunu. 

Th<: 111 .. 1"" dcJIIClion Iw ... joyed .Itong bip&n'.un 6Upp<)I1 dunnll the aix reus .,"'" il was 

<fI:ICIod in il' """, ... 1 (om, by the: Americ.>n Jobs Cu:w<m Act oflOO4. It " '&I utond"" by 

b'paI1illn CongJ""",,n 20011.lOO8 and 2010, Millo" ... uf",,,ldlc-c:ia!'l r3milc .. in T~4$, 

N ... -.da. Florid:>. W""hinillon, T<'I\IICSt«. Soulh 001:001 ~nd Wyomjng "'111 be nC"l!""''CIy hll 

with • h;~ w; burd .... if C<>ItWt$S does "'" Jot! 10 •• lto1d Ihi. dcd\ltt,,"" 

W •• troolJly utgc l"'" I" INlnWD r.;l'I'I«< in the t"" c:0d<\ .nd l(I proVIde ten.inty ond 

~..,.lot:lllbil'IY ~, I •• p.:>ycn by e.lendina !he $alb< t .. dcdUttlc>a We gmo~y OPI'''''''al" your 

cootinu«l aupport "" ,hi, issue and we Ihank )'OIl rot }'C •• OT """;d.,."hon oflh" ""Iu,,"" 

Sineerely. 

-...... 
172 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.095

;di£"h I 

iih¥5:ew#t 

'tt ~ 1'""",, 7 

17~LL. 

• 
173 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.096
174 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.097

LCLr 

~j/,~~ 

~~.~ 
175 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.098

- E§b 

61 .... P-L-

~ Ndf-J~ 

~ ;pa-
176 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.099

f)! : "":'iI * • 

, " 

Tho 1II>IIOI1Ibldoilft A. Bo.hnot -. U.s. H_..rIl.~j .... 

H .. 2J1 C.opill>1 !luild;nK 

w..ru~ DC lMIS 

Tho Il..-.bk limy Rrid 

Mo,ioril)' U<oda 

U.S. Senate 

s.:u I l"api!UI Bldldi~ 

......... lng!0ft, IX: 2OS10 

ilIi: ~1c N ..... 1 ' .. 1otI 

/o1 nori t~ 

U.~.I ofR~,j_ 

II_WoI c.pilOllluildina 

W.slo;n~OC Wl5 

n.. ~I. Milch M"c""",,11 

Mj~ ~I'-

lJ.~. fk'tIIII< 

S·2J(l oIl1uildint 

w...hiIljp.Oll. OC lOSlO 

0.... Speoku RoIeIula. t.c.Ior Rdd. l.dd<r r.\l)Ji _ l-.le< MtConno:lI: 

As ..,...'......r.. Q{ JIioIc. wlme cili""", .... noI .....:uod owe IIId k>eal iI>eomf lUllS. " . urII"' roo !O 

l"'V'idtd 

,,,,,Jude,,,, 

thi. 

""_"" dtduct"'" of,

('" 

,,,, ~ 

..... ~ 

ond IooIl 

UJO.( 

sales 

.. 2011 

WI 

• ...! 

.............. 

C<>njIInOI 

in u;>«HIllni 

mUll .. , ocain 

1<1PsIatiun In _ . ~ 

Mr ..... 

c~i..,., 10 ~ Ibor will h ... b'" I<> em,in"" u, Ilal"", sta'" 0UId to.:..I <ak. ... ~ In lieu ,fa ...... 

i""",,,",~ ro. ... ~ ... 2012 ond bo)'(Mld, 

A. ~ .....".,. pn:.;.....Jy. ,"" fod.n! "'" cod< <WIly 01_ ,"xPO}'CB In ...... II>1II rol1<c .... _. 

;"""""'\Q .. lhcabll;1)' 10 dod .... _ I&X<to- In 2004, ~ _ortd r ......... 1OI)d cornl) \0 lhJ 

fI<IOI>lo> <>f(>ltl' """'" by ~11()"iq _ .;,;_'" ~ ......... It>eoIJlI .. ""' ..... ,!,cit fodctat 

i .... """ ... .,., 

'1b<"'1t an.IIO<'OI .. I",....- do.lL><l"" ..,...,.,. lhal C""'l' U.s. ""'''I'''' is _ cq .... ly "'s-<I~ <>f 

I>f 

hi. 

......... 

or h .... 

, .. 

010.·."'" 

"*J' «lft\i...., 

.... Um 

II> 

..... 

OIIJOY onctI>ad5. tquol lInImaIl 

\\'c ""' ...... 

...J 

"'...,thi. 

.. 11>0 \4.0 D(N!e. 

dcdU<ticm "",lmoJod O(J ~ ~ 

W. "'SC ,..,.. ,0 ;"" ....... llIi. il«I<I<l ..... In • bill thai " ill bo..-J thU year. 

S~Jy. 

eel..-

G<wcmot Rick S«I<I 

l'I9riJo 
177 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.100

Go •• ..- M.,lho>w 1.1_ W,.,.",". 

0-...-

'ii~;J~ 11(11 11"' ....... .~ 
178 

Rep. Michael Grimm 1, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.101

i(ongnsJ' o( tlJt i!lnitrb ,i)tatrg 

:I,IoUSt of BrprCStl11atillts 

ftI.UIJi"ll'., j:I( 2051(;-2103 

The HOl\Qnlbl. Joltn A. Iloclmo:r 

SpoaL..-

!l_2l2 Tho c.r',ol 

WO$hin"OII. DC 20' I S 

Tho ll00wable Eric CMtQr 

Majority I.ca<k .. 

1I.J29ThoOopiM 

W""""'~!On, DC 2!lS I S 

February ------9, 

... 2012 -~ 

-rhc fl<Jll<M'a\>l. Nancy I'd",,; 

lkmoorollic L""" .... H_1(I4 l h. Dopil<ll 

Wosbintton, DC 20S 15 

Tht HOfI'7I'Ohle Steny II 110)"'" 

l~lcY;bip 

!l.1 48',"",C"l'l!ol 

W .. bittl\ton. DC 20S15 

D= S.,eoker Boell/ll,r, L~ .. Canl<>l. l .. aJe, l'.kI>l onoJ Wbip 110)'''' 

.. _.- _---

--- _ .. -----. .... - --- ._---- '''''''''''''' --

.~-­

--- "'-

-_ _._ .... _.-... "'" 

~~ --

--

" 01110'("""" p!qlIl1'OS Ie ."",idcr im""""", !aI< on<! ~'''''ioo n"*""",,, in Iho 

toJIIil>ll W<cl< .. "'e "'~ you ... -Itlpp<9'I1ht qulU pa«age .. ra _gel ocrutraI romili"" to "",_ 

!Wil), bcIween lhe .,..,.W: """,i, IOd pa<tU,K """"r,,,,, flilwe IQ pal> 1hif illlj>O<tant pm>i,w" 

will IUIIh i • • PO~"Y thaI .. ",,,,m dri ... ", ODd onfllirly pwUPes tran,il rid ... , 

Bc8innin8 J"llwy I. 21)12, lranoi. ~ .. iIo ... the "",,"i, P"""OI\ Qf Ihr """""""", 

b<".r" hlod 'he cool of th"ir """"""'" i""",_ ~ tho uaruil bcoofi, lU ""'''i.ti0l' ""pit.:.!. 

Tra.ltsilride<s~"'''''' """,tilly eap "" lhetnln>;l_r" r«lu .... from $2JO]l<'rmoruh '" Sl~ 

perlllOlUb - Ill""'" • SO ~l ~,op. Moan","" •• «l<Mlll\Or'l .. '1>0 dri", l~ , ... .,,-k aM pan: !bc:i, 

ur> """"w.:lln incr$IC In thoir rrIMlhI}' bn..ofit f",,,, $2.JO.,.,. """oth ... S2~ PC' II>DI>th. d ... 

to OI' out""",,", ro,il of Ii.'ins """.as<. &ru,fil .,.oly un b< .-.l:iIi_ at II<>.otl to the fNeioi "'''''mill''''' <imply by ocl6",.the rnaxilllum benclil 1'Q.,,;bt< for both III<>Ib '" $200 por month. 

If we do "'" "'" quickly, miUi"", "f!l1lnOn and """"",,I rid ..... ill "","tin"" '" 1M: IaJccd 

""' .. u.,. thei, f~ll1lw OJ<JIUtul<n ,,110 drivt to .. otk. Thi' inequity will fruu mIlD)' "",,,,,,w.: .. outoftniM. bus«.M<I .... """I$.1IIIlI hac:k ;,tlO Ibc:it oar.I "Ilich wiU only I..J W ~;" 

"""'I.:.t>liM. (""I «In,,'''''plion. 1051 rrod!>c!;~hy aM "'""'W Ii"", wi could b< spenl "" p!t><IIId".., WOfI; or wll~ u.cl. (IIn;h .. , 

The """";1 benefi' .bn I'ro"ide:I.",. ll bl>.<inffiel ODd job ", ... 11>11 with 0 financial 

in«.u'''~ I<> help tb<lr "",ploye .. """""" tb<ir dls~b ~ i~.". This •• a P"'fi!<:l <:x .... ple of 

bow targeteJ ODd "tT .. ,""" f<denol ""Iicy can "",>ide emplc.»<" wilb "" ~ppu:l""'\y '" help In.i. 

<mpi<o)_ .. , .. money o. Ihe!r \WllmIIl<. while ......... employer.! 1nOr>ty that.." b< "".,.''''00 

into thei, b<ioin<S$O>' IQ ....... DCW j<>bz. C""WC"" should 001 ""nli""" to 1"""1<110-. WI pelky 

thaI r ....... driv ... "'~ """"""'"' ond !hal lI<'OaIizts """'~ lIlal do Iho "!:It I thing b)' 

olferiltjl1ll<il em[>loy_ h=n.;v<s 10 "Iilil<" YOrie!y oflRnSporw;"" 0,>1101'1>. 
179 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.102

w. JUppM Iht ."ift ~ ef leglsLui"" '" p<mWl<fI~y cstab!;"b parity bet .... n the 

uansi, :and partin, bcner.13 al l monthly '",,,1 thai will ~t iII "" lIdditionai 00SlS 10 1ht rcdenol 

&O''tnlIr>tflt '" !hal worI:inK Ameri""", who choose PJb!i. tnuISpO<UItion and '''''''''''~ ~ve 

r. ir and ""Iuil3ble ",Iieff"'''' tho rug!> a)$I ofthoir ."mIlllnGS. 

rr. II 

Member efe""""", 

R .... 

~ CMmahan 

Member efCcnV'"SS 

P ... l o/i 
180 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.103

~~ Momber ofConI/'OS 

/}!.r:/(Jf 

Membct .fConaress 

EIij Cumminp 

M.mb<r f~ 

~ M.mberofC",,~ 

w/l.;... 

David It p,;"" 

Member .,rC""""" 

'.Jo/I 
181 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.104

Member nfConIlT"" 
182 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.105

~~£; Mombo;r ofe""""",, ~ 

S'.,'. II .... I 

M .... bcr ofCOOIV<>' 
183 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.106

c..;"._ 

Mcmbnof~ 

~ ~1 .... borofCoqral 

G1... ,-I15~ _ 

M .... buDrC""""" 

.(!fb;.. ;(.1/ ..... MaDe K. lIiroc1o 

McmbtrorCoqrns 

'?:t.d[G,.......D Midlod Ii. c.puar.o 

McmbcrofC...,..,.. 

<SL~~ SteYaI R. R.<JIhman 

M .... bo. ofCco~ 
184 

Rep. Michael Grimm 2, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.107

l(ongrtS:!I' o( IIJf runitrb ~tiltt5 

1!U~1~"III011, K 2,\51~ 

1110 llon<Inbio o. ... c....r (RoMl) 

II ..... w.~ • .t. M-. cu.., IIIll Loog"""'h 11""",011"", II"ildl,,! 

W··t.1nIl--.llClOSIS 

'11'>< 1""_1>10 [lo,OI 0..;.". (R.r .... ) 

1100 ... R"1co Coo,"' ......... 0.;, 

11.JlllI ..... eap;"'1 a.iltling 

"' '~IlCXlSIS 

'r"" I r ...... ohl. SaIl ..... Le ... (I).MI) 

II"""" W.".ol M ...... M .. ~ .. ~ M ... ,.,.,. 

11110 l,on"""""1"" ... Ofli"" IMkli". 

WlUbi.gIOO, DC 10$15 

n", _~", Lou;' Sl><lghl« 

Ito. .. R,,\<1 t'_,.ilf<l<. Rrii'A lMt\,br, 

16l11...,.,g""''''' u", ... orr",. !lttil<lio, ";'i"~DC20S1S 

W • ..n.e ,. -..\. d ... ~,,,, ..... .. ..root '" ,,,dude ",' _r', pOOlog ... _" _om,.,.oO)' 

boI_ ,be ,.,.... ",,,,,;. .... pork;", .... "'0'" IO"~ ... If"", I""""""W ....... 0 .. 0..:.+_ b,H 

""",Won<l .. ''''' 1WI.",Iloo<, 

~~ J .. ..,. I.l012. u", .. 11 ,him ........, .... '""I ...... ' """,." "'''''' .",.","1« "",.,r~ .. "" u",,,,,", 

01'01",;, ",,"-L< ri>< __ u.. ""","'I)' C'r "" ",", ... ,,1 _rol "'" mIIo«J ""'" WV pet ..... iII '" 

SllS pettoonlll _ ....,.. . S~J"'P. M~;Je, poopIe-..l\odri",'. ,,<)C\: ond f""\ ....... _""' .. 'od 

'" ....... '" '" ~ .. ir """"~Iy _r~ "."." roo "'"Ulh '" SUO .""' ... f, ihn.lo _Itl "'-I"'" "' .. ""'" 

"""y bel,....,..I,.." .. ojt .. MlI>O"' .. ~ t.alc1ll .. ""'0IICI<lf2(l11 ..... '" 10 . 1 .. 1<4 po!ioy .... ,"""''''" 

dri><" '"'" ..... 111"" ' .... il ,Ok .... 

Irwe do _ ocL 'l"",Iy, •• ~11un, oJ .. IJ.!lo.<:IUi ...... ~ . rI<I ".p/lOI ,i<\on "" _,.jly li,~ in 

" .... rI>iIo> ""'''I' trId no .. II>< ~ , od ....... peNI .... """"',."'" "ill _"in .. 10'" w.eJ .. "" "'"" 

tboi, t<11ow """"'"_ .. I., ,,"w.1oot '" wort. 1 hi. ""","II~ ,,111 .... "" 0\00')' <i:>o""''' ..... "", QflfOins. 

I>u_,~~" ... ' bto:k ;,~" 'hti, .... ltadirlg"';naa ... l. OIlII&"I"", JOCI_'"p!ion, "'" 

~iou""''''''''''lj ..... 

1'1 ......... i' ...... r.,.1<0 """'WOS ..... II \><>I"-,..JJ<>I>.,......,.. wiI~ . r ... nciol _Ivc Ie kip 100' 

.. opI"l'«> i""", ... lhok ofuj_ in<.-. Ttl" 11.. pt,f<cI ....... 1<> <>1"1_ 1"'8<'''' ...... If\ocl;", 

_toJ]'<IIky .. ,,""'"'ldo .... "'.,.mI ... "">o~'y.,lId~Ibcfr ... ~ .. ..,~ ... ....,;, «)<It'""'" Tho _y .. """ by ,,,, .. ,.,..11 1>\100.0. ... """ jotI"""I'" "",, 1M: ~",,,,'oJ In _ b.,i_Io ........ ,,,. jobs. 

w ........ "'" <OIolin ... II> """""'<. polky ...... """,, b<o>"- '''"' O<t <10"" '110 "Ill_ 'h~ by ""l\Ii,l~ ' '''', ... ~,- ... I,h ".n.""""' ...... 1Iom .. i, .... W~"""",,, II,. i"do"" off.olll! .. g< ~ 

.. LtohIi""nc """'1 I><,wreo ........... iI or'" p;toicinll _~.I. ""l' """., ........ f..., """","""",,, 

>00_,,,100 ~ilL 

_ ..._.-
185 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.108

lI-_ #!(-- IlOOOY IIU)NG 

~""" f t""~ 

~z.:e-
186 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.109

A:.D.;?~. "'I<1~ [' L!I·t~ ItI --

"'.",100' .ro.o.v-

~~~ M""I><o'~feo..ar-
187 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.110

\J1UiOORIO KIWLl CAMACHO SAIII..AN 

M"nMI ""CooIg:ms 

PI!TEIl DEI'AlI 

Membor of 
188 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.111

II O~. MICIIM':L C.GR IM,\ I 

NEWYORK 

Sn:r U IENT .·OR TIn: RF.COR. V 

HQUS<' Commiu.cun W3)"; "n" Mfan. 

Subrommitt~ on Sel"", R.'en,", ~I~a:\u = 

HCllringon 'fax 1;"" cndc!1l 

Thur .... a)'. April 16. ~O] 2 

Chairman Till<!ri. Ranking Memher Neal, Ihonk you for allowing "'~ 10 t~5t1fy today In $uppor 

I orex endi ~ Ihe eXpiringcommuler lransil benefit A~ ~ memberofCongr"" repr£'Sentlng th 

e aliY-ens tf SUtt~ lllJnd ~r!d Brooklyn, who already f.ce tile l"ngt'St ~utnmu ~ tlmes ~ te na 

lion, Jtelng tim v;Ull llfOgr:llll extended Is of tile utmost inlport""c~. 

The t",,,~it beMfil ~ I highly .IfMi~ tool u,;ed by an ~I;mamd 2.1 million Amerl ... ", to redue 

ethecoslofcommutinc. Trans;tCem ... , I New lo rk Diy no", 

'p,,-,fi\ found l~ 1"IIta "3nsit tIonelits ore Introd..red l~ <I workpl:ttf 2~ ofemploye..os olt~r I 

heir rommulinll patterns /.lid ",~lu p<lblk Ir~nsit 01 I1nllOilI. When /nMldulng that I 1'11- red 

1I<l10ll In sjng~ uct:upancy ,-ehio:les t.lI1 lead 10 • ;m., rtduC\lO!1 m «)rIgati",,- n 11 dear lhal iii' 

Ir~nslt 

benefit if lI' rf!e<tiVl m~an~"rrl'<lurirjg Ir'dffic. 

WhH~ there areadditionsl cllergy slid environmental benefits that call be drawn fl"<llll \his, I 

want to lake thistim~ t"also rec<)gnile th~ rol~ transit benent~ have on employers. 

Simply put. the transIt benellt makessellSe fur businesses of all shapes and sizes. Theprovisio 

n kf . pr;, 

·tu benellt nul only ror employe\$, but ~lw for (heemploy~rs whl> offer It 11f<)vicling OSQlI~vi 

II!' by e"",i~ their payroll tax bmd'll According In corpornt. smKe provld", Edenrnl, I 

astyear, employers who otTer1!u the transilhenej'itsaved an estJmal~d 

$311 million In t:Ixes. Wh~n ~ IooIt -It ml~ :tI (OnleXt, t""~ :>;Iring> could II<! used ' hi .. 

6,200 new wurki-r!. I'ruvidi"~ roanyvnployers with additional rO:S(lUf(Ces tu e~pand and 

cre~te fleW j(.IIs. 

The tr311511 benellt a lso provldes smaU businesses an d lob cr"lltors with a flnanda l it\cent\ve to 

help thelrempl"yetl.. In crease their disposable incomes. This Isa perfe~'te""rnple ofhow lal1!~t 

ed ,l1li offO'erive IedclOl pOJk)' an provide employ;,rswlth an oppmlunily to help thdT~",plo 

yetiS Save mon ey un their commme, while saving employers money that can bt rei ve~led Into I 

l,elrbuslness<.'S 10 cre;>te new rubs. Congr~ss should nOlcuntinul' tu promote I W POli~ Wt fa 

WITS drivers wercommutersand that penaUl.es b"slnesse:<; that d,) the right thin!!. by offering III 

eiT employees ;1)C<;'ntjves to utlU.e a v~rlety of trJ~Spor(~tiQn optluns. 

If we do nol act quickly, millions of""nsil and vanpool rlMrs will cmllinu~ to be ,"xed nlO ~ t 

hili their fellowcommutt."rs who drive to work. This inequIty will forc ~ many commut.rSOlil Ii 

lraln ~ buies. ~A d \I;1nt>'ml~ 111<1 book iIIIo lll<ir a.~ whkh will ooi)' leM '" ,1KTt;I~ I~ conge 

sllon, fuel CQnsuroplion.IOSI prud~ctivity ,mil wasted tlmethal cuuld he spl'~t I'n pruducti ve w 

ork or With their famili es. 

The effort 10 extend thlslmpor(ant benetlt has re<elved bIpartisan suppurt h~re in the Ilou~e. 

"" ev! d~flced by the ]07 signa tu"", sarner~d by twu len,,,.,, til this commiu .... and leadership, 

and I ncour,,# the commiltee to ~)(!end pilril;' belWefll the tr:tn!il ;wi p.rkI~ beneti ~ • • 

monthly h-veL ~rorid;"g relief from Ihe high cost of commuting to Ame-rican workers who rho 

ose publK tra n~ po,. ation and vanpools. 
189 

Rep. Mike Coffman, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.112

(tiOllgft,GU of tilt 1Il1ilt.b .state,. 

lIw 1I0","ble P.I TIb.,] 

(lgirmon 

Ulull;"!Ilml, I!(! 2D51S 

MI~ I, lOll 

U,S. H"" .. Wrt.and M~an' 5ub<"", .. a, ... on Seleu ~_u. Mu."," 

106 OM"" 110 ..... 0111«: 8ulldina 

W .. h/nt'''''. DI;: 2I.l515 

A. Mo,.,be!. 01 C""lfU. lrom Colorado, I "",. ""'Of. ''-wod. of _ ... 1« .... ~IO'1od 

be .. ",. 01 the wind rtd~"rv, WI ... ~o '0 _.pro" 1>1" "'PIlII '"i>POft 101 I n . " ... >Ion 01 

1IIe. .. "", .... 'fY ~,,",U(Ik>n , •• , ..... it (PTe)_ 

Ttl. PK it .~.I to <he IUI"fe 01 wind enO/IV ",<>01,'''1001 in CDIor_ . 'MI Kto .. '~e nation_ 

("""odo in p."icuIOi h •• uP .... '" 016,000 indMduII$ .",ploYed In )oM ,eI. ted '0 'Iro 

wind "'u"rv - ",ony 01 "hictl ",e., .... k. """ ... d <h. PK C)plrl 'lSi't now. "'''''~k>nll'''' , 

"'_ ',,'al com",unltit> ••• ,eclp;.nt. at no" '.~"e, th 'r ~' 10 .. io>d MillY ... 06"<1;011, 

{a.ch 01 u' 1001 ..... in • ""tv o1Ij 01 tne ._ 'PII<OO,h """'" ~ "."'., to US •• ""'8V DOII<'!_ 

60th U.odi,iMai Ind ,en.",.bJe ..... re •• pI.y vit.1 .ole. in "'haocln, ", .. dom .... 1t _ray 

~y, ~ .. '''''"I'''''''''' "'" enetlV .. dependonco il< . <Ullo .. 

WIllie u... PTe doe. nol e. p". until , he ...... of lOll. iI "lmperlt~ lhat ~ be ' en .... M •• 

,oon .. "",'Ible. '" orole< foo • ''''''FJilny 10 be ell&ibIo for tI>t PTe. iI must h ...... wind 

,u,blnu up lod runnl ... by t ......... 01 the I""" cal.nda, ~.,. "'!UClo, p.ojecn lor tho 

lOU cale<>dor ~If -!I>""d ol .. adv be Tn tho pI"""InA ..... d ... """,,~"' p.i"<><." '" ord., 10 

bot tompl ... d in . limei1 fa'hI"", Simply put, Conl'~" ,._ w>It u~, l N"""",be, 01 

Ooc.",boI< to ''''''OW, "n e<le",1on oflf>t PlC. 1>citIf,., would .. ,utt In ,., ... l'1Ie 10\'O'Is Ind 

projKt del ... 001h ~ ''''''p.n'*< .hot ore .'PKtm. It. 

TI>t wind indu"", is """'I. a<>d wi'<~ • ","ditt.bI~ I .... ',."'. 10 redLKl! "'. <te<l~, ~ .. i~ 

<01""'"" 'I> remoln thai ",.,. Thu., wM. _ .... 101 ." ... ~,"'" 01 the ".dit .. k 

<",,"",11 •• Ist., "'" "",""file \'OU to r.a,.,". I pi." '0 rtduta lhat cr-edit Tn .ub'eq ... n, 

'tea,., flfld • "'1 to P'1 lor the ufdl, •• ...:1 wort towa,d, "",,!><,"""""'O II, .iOfu.-m .... d • 

II, ",,,,,ur. '" whitlllh~ fTC 1< flO long ... netd" _ 

_ <4«_ 
190 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.113

klltl Tlpt(>:l 

M~mbe< 01 Conl'ell (C0-1) 
191 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.114

~~p. Mll;;e Tbompwn 

Sla l, nlCni for Ib ~ efnrd Sullcomminft nn 

St le.I ~ ... ~nu.· M.MM,r" Ways Rnd MORns 

COlllon,lI u 

lI urin~ on ['Iliring T ... rro"i~ s 

May 111.211 12 

In addil;on 10 Ihec,xpiring ar.J cx pil'l'd!:lx cXI~IJders I spoke abo,,' allhc S(I('ClRc"enuc 

Mc'llSurc h<>~rin!;on April 16, 2011. I w()Uld al;;o lik~ \0 submit this 5tatcm~nl (Of the ~conl 

d~m(lIlst"ll ng m~ suppnn for the following ta,>; .... ~lenders. 

AS !he Ic-ad [kmocrat;c cosponsorofi LR. 3087. I ~nppon thtl ~xten~ion ufth,' $,"'1:n- ~f~r 

",covery "", ioo for mOtooron;; enten~inm~nt complexes. Tn ... seven_} ~r n'Cov.ry ""riod for 

1l\otorsp.)ns eomplcx~'Se<l ;fi,"S the III~ In:atmCtlt ofmotorspm1s facilities that has bc~n 'I~d r{)r 

y~"r:i. It plac($ molo~purh r~cililic§ in Ihe same dcpl'\'Cialion "cllcd,.le as cntcruinmcnt 

complex,'S. This W"5 the longstanding lrealmc", ,,(these faeili' ic_, u",n,he IRS nnldo an 

"dministrnli\'eehangc and ~da>'$ilied motor.;puns f.1cililiC!$. Congress ~mcdied Ih:ll miSlakcn 

red a;silic$liol1 by lhe IRS and in 1004 "'01porurilycodilied Ih~ s~"~ n. yeard~prt('i3tion """"d,,l~ 

ror molorsron~ Ibcililics. 111C nlolorsp.)ru lOOllst!)' ilweSIS bcl"'CCO S 121t nllllilYl and SI50 

million annually in cap'I.11 pmje<1s. Th,,"c pruje<:t~ me:lnjo~ in uurcommunitic,>. According to 

3n e<:(lnomic ;"'P~,I tudy cUn1miSl'iouro b) Ihe llIutQfli)l<Jl'1,; 'ntlu.wy, ,,'cry $1 0 mil1 io!l5J11:I11 in 

capital c}(pcnditure~ l"IlSults in the ere-otion of ISO jobs_ This provision should be made 

pennonem. owe ~er. umil such iifn e Ihal il is. it should bc ~"tcndcd, 

AI III<' hearill!;. 1 spoke in suppun orlhc e~ clis on ofim ronulI\ rc""'>able CIICI);!' pn,visiolls. 

inciuding lhe pfUl.h'''liQn lax credit (PTe) (ur "ind whkh e~p;m;:1\ Illl' cnd of2012. Bulh Ih~ 

PTe ~nd Ihe In l'eSllncm Ta~ Credil (ITC) hal" been fl""ti ~ tool$ t<l ~""P electric ity r-Jtes loW 

IIml en(:ouroged<',-elopmenl Ofd wide mn&e Mpmv"n c1c~n ener£.v Jl<"Oji."CI~. "hith nl\lSI playa 

~ntr:ll ,,)Ie in Arrt~ri" ,, ~ In l!.-'~nn "{<!ttrie "n'''ID " 'Wly_ 

I" addilion \0 Ihe ntend;ng.t"" wind j·Te. I aho suppon the extension ofaddilional "'ne,~able 

e'II"g) ;nc,'nt;vc rro"isio"s. includ;n!! Ih ~ PTC for ht.~nc'I!Y sourees. It is liln~ fo.), CO'lgNSS 

10 pass I",,!!-tcml and $\able energy ta~ polid.-s. eSjlI:('ially in n.'g:lnllo large scak cnergy 

pmji.'CIS "hkh !\'<luire nlany nwntll< lcaJ time 10 fin.1nec. pennit. und build. We mUSI ensure 

lhal prol'cn nasc Irnlil rcne,,""lIb!e "llCi'g,) pru.:J,o(:c rs !o.k:h as g~'olhe nnal, waste·" ... ncrj1)'. biOmass 

alld h)d"'powe. c"n p",,,,,rI} finant:c alld dc,d"p nc" projl'Cts, in addiiion!<1 I'",m<>1;l1g 

""lI'wal;>k l'O"cr like wind and ~In'. It is lime 1<,> I'Nvidc mu rke] cenainly ";th the ~'1S code 1(' 

cnhufll.-'· domes,ic C1IC'IIY pn>duclion. "hid, creI!h,S high p~)'in .. job:s 311£1 bcllclil< MI~ "OJ, 

energy n~cd~ ~Ild our llal;(ln~1 :lecur;ty inlc","st5, 
192 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.115

The S«tion 1603 T~a;;uryGmm I'mgmn' ~TGI'): This SIl~cCl;Slul pmgmm infused 

.rilical f"oding In\u ek~n cnc'lI.v proj~'\:ts and :mr..l<:tcd mQre than $20 billiQ" i" direcl 

im eS!ln~m from prl~mc, r<:worul, lind sillte sourc~s, Wilhoutthe 1603 TGI', tens Qf 

thousa!~ of jobs i" the cl!erl:.~ Secl!)r WQuid ha' ... been lost and our rcli~,IC;" on r,'rci!,;11 

\!11ergy sou",e,; would have i~rcased mlher Ihan decrellS<'\l, 

Parity for cxdusi{)t1 oflransil bcndits from income: This provisio" provides Ihe .same 

tQ)( In.':ltment for employer-rmwi\lcd Ir:lnsit commuting b<:nelit~ a.. is pnlvidl.'tl tilT 

<:mployer-P'Vvided parl;inJ1, bcnefil5_ Thi$ f'wvi$ion t",ats f~irly the millif)l1S uf 

Am~ril'llns,l"'P"<'iully those livinJ!, in suburban sellings, whu comntutc 10 work via mass 

tmnsit or "anptlOls. Allowing for an inequity bet"~~n employer-provided trnnsit and 

cmpl!l)'er-providl'd (XIrkinf' ~ctits will furce many lXlmt1luters uut of trains. buSl'S. and 

wUlpools, and back into tlteir ~ars leading to incre:ascs in eon!!,cstion, fllel consumption, 

10SI pr1,>lhll1ion and wasted time. 

Tile New Mnrkcls TlIx Cn.'tlit: l1tis pmgram "11'; c,cnlw 10 prfll"lllC n~w Ind incrt"aSCtJ 

;o\csuncnt intu busincS1>CS IIl1d rt"aJ estale prujccl5l(ICutcd;n low·income emnmuni!il"S--

which ~n: !lncn ol'Crlooked by the cupilnl mar*'cls. In 2UIU, this \ux crooil !lf39 pereent 

g~ncr:ucd 59.5 billi"" in capital for proj~clS aod busincS5<"S in luw.income communities. 

f..l;lcnsioll of tile 1I1ortgage lnsurnn.'c f'n:miUI1I DedUClion: f""':lcnsi!ln Ilflh~ priVale 

"'ort!:ng~ 'fl'jurancc (PMI) d~doclion is ;mpnrlam to ensuring Ih~tth~re continue 10 be 

inccmi,",~s pimcd Ot ~abili~iog and strenglbe(ling the housing m~rket, wbich is "ill 

.... -<:overing. I'MI enables fir.;Hime and 10"<- and mO(kr1l1,,·incom~ borrower.; and thus..' 

in high COSI housing arros 10 purchru;c homes, promutingnnd pft':Scrving lhe trndilion of 

I)()me.,,'·ncr!;hip in a safe and responsible "':Jr. 

I ~ppr<'cial~ I Clt:tirrn"" Tibo.'1"i und Ranking Ml'mbcr N~~I for beginning lite di.;eussion on 

tcmpomry 13)< p",v;,ions. It is my Sirong belicflhal we must Slri,·" for more certaim), in Ihe lax 

c"d~ ~nd that the ten'flOrury nUlureoft!;csc In." pmvi~;ons un\lcr<:UIS their crTmi"encss, II i~ 

sh:nlle th~1 'W h~ve nlluwl'tl S<) many L~x ['I"ovisions 10 al",ad} cspin: and have faile'" to extend 

ones thm ~pi", shonl~. I hope Ihatthe group ofprovisinns known ns"'\:IS extenders"' ,,·ill be 

e."lcnded until such liml' as we hal'e tun! an opportunity 10 fCI'ie" and ~onsidcr all oflh,·m. 
193 

Rep. Niki Tsongas, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.116

Ilous~ Cenlll1itll'o:: 0" Wa}'~ and Means 

$ubeommittL .... en S~!cCI Revenue C'd~Ures 

~karing on Ta.x E!"'lend~r Provision. 

Tsongas Slalemenl 

ThurOOay. April 26.. 2012 

Chainll311 Tiberi and Rankins Member Neal, 

Thank }'OU fur holding this hearing today. As H slrong supl"'n~r nfa num1Jcr nflh~ tax exkndeni 

unlkrdi'!Cu>sionloday_ inc1udin!; the ",,,,,arch and d~\"c1opment 18.' credit., N~w Markets laX 

credil. 800 Build Am .. "fica Bonds. amon!! nl he 1 ru" l~d Ihal Ihe SubeommiUl'" i~ ,...., in~ 

input from a bro.-.d rang~ of Mcmber~. Il ow~\"er. I 3rn '1uile concerned Ihal nne pro~tn lax 

inctnlivc. Ihe R~nl·"al Cernmunil}, (RC I pMl:'ram. is rhl1 pdn ortod~y's hearing. 

Thmughoullhe III'" Congn.'SS, ""Iensinns o1"1he RCpmyam (WISS<.'d b01h ehamlli:rsolTonJ!.reSS. 

and Wilh good ",05011. During.ils lifelime, Ihis bipanison proyam prol·e.i ilsdfio b.: ioc~ibl) 

successful ill fnstering C"Cn'lnOlie dcvelnpmenl in dislrcsc<cd mll"lIlonllies. Ilow~I er. dtlong la~1 

minule negnlinlions Oflhe Tftx Relief. Unemp!oyrncm lilsurnnce Reaut horizalion. ~nd Job 

Crealion Act nf2010. the RC pmgram was de.coupled fmlll the l:ml"'ll'cfnlem ZOo~ 

pwgrom and allo'lw In e~pire. 

Duri!lg IhisCoogr<~~. I MI'(" joinro J;CI"ml nfmy I lou!oe colleagues in imrnducing II.R. 1421\ \<} 

ntend the RC progrnm through Ihe el>d 01'2012 b.:cause! haw s~cn firslhlUld whal these I:I ~ 

incentil'("!:enn accomplish. to IWO eommlloitiesthal I r~cnl. Lowd \ ~nd Lawrern:e. 

M'ISSllchusc\!~. Ihe pmgram j!Cnemlcd a coolbined S85 millitm in pri"UI~ iOI"<'~tmcnl and 

hundl"ds nfn .. ·w job51hrough laS in~n1i\"e~ lhal ~ncOllr!l8.ed bu>ioesse~ to open ..... spand. QmI 

hire local reliidcnls. 

Thai im·esln1<!r1I. in turn. had ~ ripple effect on the resl orlh. community. For il1StUntc. in 

downtown La"rcncc. RC ,,"311<) incenlives help<:d New Dalal1cc Alhlelic Shoe. (nc. maintain 

lheir l11~nuf;ICll,rinl! opernlions in Ih<l Unilt'll StatC5. h~ 1'1S1 athlL1jcsshocmuktr to muke 

snt:ak~rs frum stitch III final prodUCI in the U.S. Tht: N~'w OatanL-': plant and wart"lmu5e 

colll.'(;li~ely emplo)' nwoo than 800 La"'rellCe wQrkers. and New Balum'c is:HI active particip.:llll 

in Ille CQn""un;,)'. lot Ihe Riverwalk CQmpk~. lhc LuPQ!i Cooul>ani.-s inl"CSll"t.i ol'er $100 

",illion, in pan thanks 10 RC incen1 ivcs. dnming nver a hundrcd companies and brin!!ing more 

tItan 2.000 lie", jobs 10 1,3wrcnce. 

Similarly, RCc",dilll helped restn", II", American T e"lile Mu~u11l. a !)mithsonian affiliate. "'hlen 

slrellJo\the ned L"'lldl· .• at1rucli\"cneSS lo bu~ille.., by pmvidinscuhur~1 pmgrnnrming olh~ area 

and contributed II} a rcn.issante in Luwdl's "",alive economy. 

lim Ih~ power oflhcse inCenlivL'S giloL~ far b(·)"Ond purt: economic ""I'clol''''''[\\. Older in<iU!;lrial 

cities like l}w~1I .. nd Lm,·"'ncc. ami olhen; like them throut;!hoUlthc count!)·. serve as a 

rcposilnry ofart:hil«lund nod cullUml riches: their prt'SCJ""\'alion helps prt:wntlll<1 spru"' lth.11 

~'I1dangen:our ('111";room~n' nnd ,kslroys our hisloric and tl"l.'IISUro:d Inl1d~cupo . RC inccnliw~ in 
194 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.117

ooth cities were eritkalto the adapt,\'(.,- reus~ of historic mill buildings. prescn'ing nnd 

reiuvigorming the history ofthl'Sl: two s;t~s ofthl' Industrial Revolution. 

Mr. Cbuimll1n, Mr. Runking Member, with the CC\lIlOnty rt'co\cring. but "itll historically 

di,trcs..<ed cummunities ,till struggling. nolY is nOllhe lillie to tum our backs 011 job erentioll 

tools thm work. Thank you again for IcHing me par1icipatc il1tooay's hearing 10 dist:uss 

kgislalion critical to a~s ~ting di~trcsscd communit;"'!;. I look fi)1"w~rd w wurking with you a.~ 

you ernflthis year's ~xtcndcrs hill 10 ens tire that thl' RC program is once again ~lcndcd. 

Ni~iTsol1t;a> 

Mcmb<,.1' ofCongrcs.> 
195 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.118

® 

Congressman P~drn R. (>i~luisi 

S(atem~"t ror the RecQrd 

Iiouse Comminct: on Wa)'s and Means. S"ocommiw.";! 011 S~Il"'1 Rewlluc Measures 

"Member [)ay~ Hl'lIrin,!; on Tax Extenders 

Ap~i111 lOll 

Thnnk rou Chainnan Tiberi. Ranking Member N~31 nnd ~'Icrnbcrs oflhe Subcummiu~-e: 

I I"e'lpcclluily urge the e;<lension of 1\\0 1 ... ~ pro"isions lhm "Xpired ;,, 1:0 11 and 111m are of weal 

imp6nani:e to P"crto Rico's ccon{>m~. 

Flm. J have introduced 11K 4605, which would e,xlcl1d f(>T two year.; lh ~ deduction ~UQ",able 

with respo.·ct 10 intome anributable to domestic production aCliviliL"5 in f'u<'rto Ricu. 

Ln lhe: lI",e";('(/I' ./v"$ o-.'<Ili{#' .. k, 411)/).1, Congress CllaClCd th .. • SL"Cl ion 199 domeslic 

production a(:rivi,ies dffiucli<m. The dcdoclion w:u; inICl1,kd to achieve 3 number of policy 

~Is. including pn.widing SUPPo" lOT the Jrn" .... lic "'~nllfaclurin!: seclor and ...,ducin,g elf..,tive 

corpor.1t~ lax rll1es. 

SC"(:lioll 199 ~lIow> ~ company 10 re<:.:iI'C a deduclion <'qual 10 9 percelll of the la~abl~ income 

Ihm the c()ll'~ny derives from qualilied pl"Olluction ~tiviti", within the Unite-d S\IIt~'S. wh,ch 

effecli""'ly n.-.:luce ~ the lOP r<"de",1 la~ rate Ihat a C\.llup.1(ly will P"Y on slI4' h '",.Xllne from 35 

pcn:em t032 percent. 

Howcver. the 2~ ACI did nor au hori~~ a com~ny 10 m:eiw the Section 199 dL"duction on 

irxomc deri-'w frum soc\! a<:tivilies within Poeno Rko. even thouW' Pocno Rico is a U.S. 

jurisdiction andjobs on lh~ Island are Amcrieanjobs. 

Fonun.mcly. this cxcill';ion Was" """,,tted in th" Tax R"Ii~fUlI<I fim/,iK:ur,' A,·, of ](J()(j. thanks to 

the clfort~ of my prixleci.Ol;sor and 1l0\l-I}()I'cmor Luis Fortul'oO, \lorking clostl)' wilh thenChain":!,, mil Thomas. 11':11 1"l:i510110n mad~ the !k:<iuclion PI ailablc 10 U.S. compn"i~ that 

opemtc in I'uerto Rico in bronch Ibnn. /lOt 10 eompanlC"lO thaI operate O11thc Ishlnd "" CilfUrulleJ 

foreign ~orpomtio"~. 

I respeclfully submit lhat ~mplc ju~ ii;calion esists II) extend Ihis prQvi~ion for an ,LdditiQnal 

pt'riod I)f years and, indeed. to m~ke il permanent. American comp"~n;<Ol; Ihal oper.n .. in I'lIt'rlO 

Rico in brJoch form arc subjccl to tuD U.S. \a~ on tile income from (hc,it Island 0p<:I"31i005. 

Accordingly, lhC$C companies should be p<:nniucd to 13ke the ,..,m. bllSiness dt";uctio"" 
196 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.119

",'ailablc '0 U.s. coml""""" "Il"r:dinS in mher AII1"'1"i~nl1 jurisdictions_ As j. docs dscwt>crc. 

Seetio" 111'1 proO'OIC> c~OII!Il lk ac1i~il)' a,J(lJI'th <realk,,, In I'uc"o ico ... hich i~ home 10 O'er 

3.7 mill,,,,, U.S. ciliJ.~". 

Mr. th"'m,an. I h.we also c"OSf"'nSl>rctl II .11.. n.1. imrooU\:«I b)' Col1l1-rcs.wonlal1 hriSl~"",n. 

"hich "ould ~M~od for two )cars th~ InO<l~:\1 i",,,,o~c in II", nmJt <)II lhe covcr-o"" of "un 

,·.,d<ela.\l'"S tl> Put",) Kic(' and th;, U,S. Virgill Island •. 

The", is a Sll.SO per prOl'f g.1110n f«l,·r.,1 t.,ci'le Ia.' on disl;IIl'<J ~pi il$. Unde, SCCt;Qfl 1652 of 

the IKe: 513.15 ... fthe ~mol1nt (11;'1 Treasu,y ("»Ik",t! M nlm prud llCnI;n 1',,,,01,, K;~j'.lt>c USVI. 

and ro!"(';gn coumric .. Md $Old in lhe SO Sl3K'll has bo,.·ell gmllled \I> III,· !l<'vcm lll.~u. of I'unto 

ico Bnd the USV!. $10.50 of thi, amount ;. authori/.oo by pemlal1Cnl !all. IIhile Ihe balm ... ..:: 

rcquiri.'5 po.'riodic ,,-,,'CI1$;O". 

11", co" .... ""\ r PlOgrnm dal~ t>a~~ 10 1~17 ;11 II", Ca5e \"If !'""" o Rico 81W 10 1954 ill (hecao;<' of 

lhe USVI. The (CrrilOries arc ,rc3{cd u'rllually under 111m,), fe'tlc",1 pml;:rWn. "lid {he c"\"~r-o\"cr 

progmm helps {O c()lnpc"su(~ for Ihi~ fll<'l, The purpolSt' of {)'" pmgmon I~ h1 pr<l\"idc l)udg~lnry 

supf'lln In the lerril< ... i~ 1 b'(lvemm"nl$ and. hi.""lcally. fu!ldint,; hotS tx..,,, u:;ed primarily ror 

~'Co "o",it' dc,·(·loponcnt. hc~lth care. l"fru lruclurc. cd ..... "llililll ~'Id land cunw .... atlo". 

I (k) Ilo.:lic, ~ lite eo'cr'Mer pn~gra ' (oold be n:1l1W<I in cCo1Jin rcsp..·CI" h~ ~nsurc t!\;l{ il IS 

J'fO",dio!l Ihe gr.:a'csi pUS.<ibic benetil {O {h", U.S. cili7c"tI.< l;vi~1I in (1"1<: 1" 0 Icrrilorics, "he,,", 

moo;8n h"uscl1ntd il"''''''~; ~ rollghly half or'lhuI it ;s ;n our jX'Ofi!SI 'tat~. and I Ilave inlrodu\.1.'tJ 

Iegjsl~l;on 10' lhal purpose. N(v~nhcles!l> (ke ihlponarn.-c of II", C"'W-oVCr pm!?",I" for Iny 

co"st; ~"ls anJ CilO~",s "ohl~n Chri,;t~11.wn·s cilf);lihicnls, ,,110 ru~ "h()mh~nlled In SU man~' 

f>!Sp..OC1S, canl10l be O"c'maled. 

Mr. Ch<lirm;lJ1. If>csc 1"'0 e~lcndo:rs have enjo)cd b,partisan surpon and have had a po$il;"e 

;mpact 011 Out n:I1;On:l) ~'Conorny. "r which 1'lIcno loIico.od Ihe USVI are ;nle!lral part.. I hupc 

Ilk: -Sul;ICQm",inte ,,;U 1a~ ~ ""lion 10 pr~wm lhe fi:O"om ic harm Ih., "'(Wld ,(;nlt ifll>es;.o I"" 

provision. aIT nol "'newcd. 

"fhal "')I!elude.,; III)' 1~'li \()I'y . l'hank Y"" Qt§l i". MI". Ch,irman. 
197 

Rep. Ron Kind 1, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.120

(fuJl1gnslI of tqt ltl1itdl etattJ.i 

Jll.:J8~l n!lI ~'1. DC!! ~1I'i1'i 

"'priI16.2012 

Tho !I""" .. b'" Pot TibOri 

(""'inn." 

H""", W' Y' , nd ~ C.n,,~i'L<r 

Sub<"", .. i'ltt on So..." II..WIt"" Mu,urr< 

106 ~ IIou$eOlr",. Building 

Wm,ft\IIOO. OC 20S!' 

Dur Choirmoo 'I'll-<Ti and JWU:.ill& Me"""" Nnl, 

n... 1"""""blo Ricnud 1>1 .. 1 

l!.OfII;i",Men,bet 

11ou .. \V'l'" on<! Me.n. Co",' ni~~ 

Subrom.,I"o. "" Sol«:! I!. ....... M .......... 2208 R.ybwn I """" orr",. Bui ldi~, 

Wu/tiltll\M. DC 20515 

W. ",i'e to l"" wd>.y tQ thank yoII for holding 1M. hHrin8 '" .~omino the pack,lI" of"al< 

•• ..".;.,,: "",ny or which .. ircd .. tho end or2011 . The eXpi .. 'i"" ot ","ny orthdo "",oi,l"", 

""""" 1IfI'I' t1ncctU1inty 10 ,he btIli~ c:o",n" .. i'y. ond ... 00.,. ,ho, C~ will IC' """" to 

od ... n« 'PI""!"i'" "'Ili.htion """'~ ",gulor onIo,. 

W. u'l< the Committe< '0 Intludt Cf C LooIt.Th"",," in Ill" " ........ IOI',lMi"". 11>< CFC i.A><>Io. 

Th""'iI> 1"'" i~. cuJifiod as Staion 954«)(6) of the Intt",,1 R" '<1I1l<. Code of '915. "'~,. 

In Im~' way to ......... tha, the "'" low' or thi, OO"""Y PU' .-\dwid<o Ameno." comp>llie. on • 1.,;.1 p!oyin~ r",kI ... "~ the;,- """""''''''''"' r""" ",bet juriodk,i".... 11;' erucia, tballhl. PfO>ilion .-.:.t 

on l1' be OJilorWod. but "'" ~ become • ptrmtntrd ftawrc oflll< ,ax I.~ of\~i, toon"),. Tho bHl 

.. "ick .... .u~. H,R. 27JS. would make Lili>p«Wision. po ........ '" fe.oM< of the , .. law, 

alklwini ro,- 3r<01l<'r f.I""". on.! plonnlnj; 

CFC 1,MIr;. Througll . llo .... P")'!'IC"\l; of di.idotKh. i:t .... SI. "00 .... royal';'" in lire ... nnol toon< of 

"Ii ...... i.,... ope",'I .... b ..... """ U.S. o..-nod fon:i4:t> ",bi<idi.ri .. '" ",,,,,,in tiet>/<lyw in 11 ... ........... ill><><lt .. immedial. US. La>. burden. It doe. _ OJ'PIY 10 pUs'''''. ~iW>lY mobile I""""",. 

"'I0Il11 with """Y <><he, .,.,,,.isions. CFC Look·Thr<>ollh ~pi",d "" o.c.mk-r 31. 2()11. 

"",",cn ; L<>oL.Thwoil> """;,ion .... 1>1<. Rf<O'<r «<npel.ll;"",,", Irld "mpllfied 00., ..... pI"""i"l! 

fO< AtrIC""""""'plllia with XI"'li< •• brwd. In MOClin& I"" prov;1Ion in 2006, thoCon~ 

wi .. 1y 0_ '" ~W: 'hOi ;1 ,,"wid .... ~ ill simlt.rly . iOlOllcd '''"1101'''' boin. ' .... d «fIl'11y. 

Ike ..... ofC}"C look·~. "",Id .. id< AtrlCnu.. <Omp'niel«n do u thOi, forol"" <O""'etpUU 

<.On <10. and r"CdcpIo)lIOli .. f .... 'gn .. ",in", f",.me;"" _ in "'" ",i.i,i .. of\llti, """....-. 

W. ht>pe tho, the C"",minu " 'Ill "'" Ioti""",,, --. .. ""', thin I., .. \IIat ,,,,,luLIe> an .XI ........ 

~fCI'C 1.o<>k··n.""'Ih. 
198 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.121

g~t:.~#- MemberofConr,ous 

~2 TO berorConllf"lS 
199 

Rep. Ron Kind 2, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.122

The 1I 0"or~~'" Pal Tiber! 

.;'m~" 

Hou'~ Way. and Mu"" Co"'mitt~!! 

Subcommitt ee on~lect Rt\l eJ> u~ Mt.w,e. 

lilt Cannon 1I0u •• OWe" 8ulldin8 

WlO.h ington, DC 20515 

Dear Chairman Tib .. l.nd Ranking Member Neal, 

The HOnoJ';lble Aichard Neal 

A.ol<log Member 

Hou.e WaY' and Mu"" Committe!! 

SubC(lmml!tee On Select Ae.enut Musure. 

2208 Ravburn 1I0u •• Offic. Bu,lding 

Washing lon, OC 20515 

I wr1le loday to Ihan. 'f<'u 10' holdln, the he.rrn~ on tUtXl" "de,,. AI my tim .. 10 IlM'a , wa; Ifmited 10 

onlV three mlnut"" how""el, t would I~ 10 upr",. my 5Up~ for the followlnll ta ~ provision.: 

Bu.!ne!'lj fro'l1Jlon! 

A prwi,ion 01 chiel imponarn:e i, the lI""i510n re<ludng tne holdi ng period lor Built-iW.in. Irom 10 

yea" 10 fiV<! y •• ,.lor thos ... nail bu§/"""",. nown a, 5 co.poralion •. Thl, p'wlsion .lIow. our bu§/" ... 

community Ie creale jobs In the Unll ~d SlJIlel. Unl ike publk: companies. the", do,ely_held bu.l"e",. 

J>ave little Or ft<O aceel> to Ike publl~ capital m~rk etl. and muSI be able to 3cteU Iheir Own capllJllln J 

tlmelV m.nn~ ' In ortier 10 grow tnele bullne ...... c .... t .. job •• ~nd remain comp .. liuve_ lhe5 Corl'Oforion 

Modernilarion ,",e! ~A H 78) thaI I co-a~tko e<l with D.v~ Re1Ckefl (A .WA) eXlends the 

flve-yur holding per,oo, ~nd e nsur •• thoI5 oorao •• !lon. will oontlnue to .pur job Krowth. 

UnleSI Congress eXlends the fhoe-ye.' holding period. It w~ 1 reven back 10 10 ~urs. ~nd S corpo,.tlon, 

will be lorcl.'d to w~ t an ~mire decode to .«e" ln ~lr own c~plta l with aul pen~(ty. AII""" .. d to mv 

wrltlen .t lem 1 (,. leiter f,om l] o"anl'.Vons tllat SYPport ",pnd( & the fiv~ye., ho lding ",,'lod. 

Anolher pfOY;'''m 15Pt'cifiCiliv .uPpor! (s the (rC!.O\!k ThrQ~gh pro.i.ion •• lell er of .upport lor which 

is "lached to mv wrillen S1atemenl. BV way of. bill I cosponsored wilh Chari .. Boustanv (R·lA), fjR 

21J5, lorelgn \-UbSldi.ne\ 01 US comp""~1 can ul\ll,e .ct;ve l" ,ome depfOved In Ihose buslMUe\ 

wltnout ImmediJte IJI~ rec<>!Inition in tk. Unite<! St3t ... The prwl.ion 3110ws componle. 10 crow thel, 

bu,ln ... aClM,"", ab road usin, capilal alrudV g .. nerated. ~R InS i,. perm.nenl eXlen"o~ of Ihe UC 

look-ThrQ"ih rule. which would pro"';de ta. certainly. competlti"en~.~, ~nd e~h~nted business plannlo •. 

The t$ear~h !o Dt"rIQDm~nt Cred,t i\ _ISO 01 vital impOrtance to Ameriun I"no.atioo ~I'd Inlenujly, It 

in,ures thar high-Iech. energy. and prof.sslonal job, rem. in in I~ e United Stote " ,purnng on 1I1e 

eCOf1omy with compc'lltive job. a"d enh,~ced competili" ~~". Tne R&D credit should at least be 

e~ ended, Iinot made pe'maoenl. 

Finally", In order 10 prD~lde bu,ine" planning ,ustalnability and ce rl alnty, I '~PPO" extending ce".ln 

otner tn Incentive>. Until we .,n!eve compr .. nen.lve ta. 'elorm. 1t ifnece ... ",. tnat we wntinue te 
200 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.123

N ....... M~rI<elO T*. C.edit 

[mployer W.8 <rnd;t 101 emplo~..e. who a,e act, •• duty m.m~. of Ih~ unlfOlmed ,.,..iceJ 

IS·.,....r O\ •• iih.~in~ <0>1 ,eto.ery 101 qual,fled lu~hold imp,,"emen', 

(.poe""n! of en- oronmenl.1 ",medi3llon co,,,/BlOwnflot!d de.elopmen. 

heeptlon, fo, acto •• linancll\ll inrome 

ua .. , a"juSlment 10 Mode of S Corp' making 'h.""'~I. c""tributi<>r>. 01 PIOPllrt'/ 

Wo,k 0Ppolwni1v I •• credil 

(m",over woge ~dll 101 3<lw •• ed mmlory re'e",I,t< 

'"<feased ~ 179 'm"""IS: exp.nd~ dellnllion of f 179 pr0l>l"ty 

l"dlrldu. 1 P'o.iil"". 

PI""',Ion, ,h •• allow ou, tuche« 10 belief do Iheir Job. ~nd a,olll "'" "OI<IenlS wilh unlolOn, tu,tlon 

cost< a,e neee, .. ,..,. .0 educa.e ./Oe youni ""'0!>k In W .. lem W"eon,'n and .,ound ./Oe roun,,..,.. 

Add~io<1.lly. provi,Ion. l~. ' h.lp I.ml,." .nd ~u,lne .... p'eseN. lI'Ie" ~udge ... rid our .,M,onment 

,"auid M • .,end • .,. "Thu •. I am ,uppotl/vtl '" 1M 1"'10"/0"1 p,ovll!Of1" 

O«dl<<llon fo, c~ .'n ",.,.n,e' 0' elemen.lrV and ..,condar"\'" """'" tuch~" 

Oed~,tlQn for ,,~~ .nd 001 .. .,i '1. 

Con""", •• ion USemen!> 

Ab""e'lheo-line dedl><I1"" 10' .,,,or-fled ,ulllo" .nd ,elated .. pen.." 

[nerD PrpylSiOns 

Incenl"'e. 1o pro.ide rlp,n or I, een eMr(\< .'te'n.~y ... ,.., Impe ''',,,e 10 In''''ina lh.1 tI1e United 

Sl.lel mo.el mo'e toward ..... 'IN independe"c'. M.ny of the foltowine "e blp.r!l$.Ofl <elu'ioN lhal 

make ",".e. 1""" 1'1' ..... 1<1. job •• ptomote ene,aY l"fIO"'ion •• nd reduce our dependence on ID"'I" 

"""'KV. 

('edl, for reflnM «>.II.ci"I). , 

New .... "'iY "tride"' home "edl. 

E.><",e In <redil< and ""day ~vfl'\e"n IOf .Iternalive fuela"d alt"'n~l '" 'uel m;'lure, 

(,Ien,ion of Iran" fo, spe£Hied em::,aY p,operty In ~eu 01 'a~ 'redk. 

<""'IV elf"" n' appl,_""" " edi' 

Allema';"" luel Vl!hlde 'el""I'"5 prollt!TIV 

(redil fo, e"<tI1e d,;"" moto,<ycl ... Ih"''''''huled .. eniel ..... and Iow"' p""d .e~lr!R< 

Q"~ltr~d g'~n build",!, ~n., ,m"."nat»e del"" ptojf('bdnd. 

Ptodur,Ion laX Cledl, fur wind laeHHo'" 

,,,dian coni credH; 

(""II'" <,..,dltln ~"" of p,odUctlon la. <redit 
201 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.124

TIle (I~Jf1 Re"ewahl@E....,'1I\! Sond prog' m. w~icr. lo ' elettrlc coopera!lve' to I<su~ ta>< e'edit bo"dl 

10 linAnee reMewable proj~U_ The!'! bond' '''ed lih lo ..... inter.'t loa"', and Ilnlroduced 3 hill In HIe 

11'" Con«ress, HR Sse l , with 8'I~n HIUlnl (I).-NV) that wou ld e.tend the program through 2016, Sadly, it 

explrlMlin lUlU and I' ln need of r .... itall'.tlon. 

The poliC'/ imbedded Tn tne O· ... "er Til. Acto! lOl l is al'" .",,,elhing I .upport. We need a federal 

di .. <ter ,el!ef prog,am that lIow~ tho .... <tN<k by an act 01 God to rehulld their no"",. and 

[ommunm.~_ Mv 1>111, H1I 2718, whkh I introductd wltll Spence r aaehm (".Aq, Richa,d N.IIII).-MA), 

I nd T.ttl Sewell (O_Al), would make pe'manent e' l>f!f1"ng provhloM /0, quahfied dluSter •• penIM and 

qualified dll<1lle, assil!."". P'OI>('''Y, . nd for Mtopera ting 101leS 'I!ributable to federally dedared 

" I ... U,"S_ II would .1", Increase 1M IIm;t 10' cha,;,"bl. conttil>utiOni for dl Mlller reliC! tor IndMdualS 

.nd corporations wroo choose to pf'1lvid .... lSlance 10 Ih",. in need. 

Though hoI an "eOltnder' I would like to e.or." my 'uoJlOft , ... , th~ Renew,,!!le 'nlu,~!!on (,edll HR 

2391, which Ilntf'1lduced with [,,~ !'aul.en I~ MN). As ou, ""tlon', elecu", utmllt. !nCfu ... thel, 

~leC1ric~y prod,,"lon hom wind and ",la, ,e.'iOurc:e~ , tney - and !hel, [U<lom~" - aOl' facing "gnlfieant 

<0'(.\ ~uodat~d lt~ !n ~g'atlnB tn~l~ re~rct< In\o Ihe a,ld to en,u,,, system .tabllity and 'eli~b;lilV , 

Because wind . nd ,ola, a,e inrermirtet>t ,e'dureM-lhat i" .. Iec!t",~y i, only av.nable when the 

wind I!; blowin8 or th .. §un I, ,M"ing-the,e ~, .. w .. < t<1 back up the ,y.tem ~nd mainta;n the flow of 

electricltv ill all lime •. Th\ll, the RIC of bell the (am at Inlegratln8 wind and ",Iar r,,"'\lreeS InlD the 

g,ld, II aim ... ,,,,,Ide, it dire ct paymen! 10 ,u",1 electric cool>I"alive' and municlp;ol util,lle., who 

[ilMOt lake advantase of lit~ Incentive,. The uedit ph3le. oul 0 ..... lime unle .. utllilie. c""ti nue 10 

Inc reale their ",,,",wabl. portiolio. Thi. will drive continual imp,,,,,emenl> In wind and .e"r penettalion. 

f;naUV, I suppon Ihe c""cepl at la,l-tn, Fi"' -QuI IPl O) aCUlu ntln« .... , ind~a ed bV mv <ignalure on Ihe 

leller to Pre.ldent Obom. urSing hm 10 include the ,el>l'l l ot lIFO In hi. budgel, I 'Uppeltt lhe pra<lke. 

6ecau.e liFO I. u .. d bV approxm31ely 36% ot bu,in ~, In the United SUItt<, and <hanglnllhe 

iCCO\lntlnB Pf ctkt could POW disaStf'1lu, relults. AI Iht lener, .ilned by 22 Membei$ Qf Con~ ess, 

Indica les, "Ind~>lrleJ affected '."Be f,om ""'Ials, p'l>I'r, chtmk:ill., and oeuoieum ,elinlng to lUI<> 

Dons, be ... erage., di"Wlerle', ~,,,,,,,r...-, led ile., buil<l'n~ rn~\e,lal, and Indust,l.1 ~qu'",,"'n\. Reoeal 

would Impacl manuI3clu,e", whole.a ler-distributer<, and retan ... ; m" " and ",tlen of,T'tually all 

product.< p,oduced, <old and con.umed In the Uniled SIal"'. Thllimpaci of LIFO 'eoeal would .u,elv be 

telt in our Cons,p"l""al Ol.trict.< dMd!'Ve .... rotn ... 01 Ame'''a." 

~on Kind 
202 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.125

Sl_lemenl fnr lhr Rccorll 

Th ~ Ilonnnoble S.nIlH 1. I. "in 

foi LlbcnnuLliUI'i' on Sc ~c l nu f CII'! Llr f~ 

Hur;,,!! 0" Ctrtain E'l'iring Tn l'rO\ on" 

Al'r;126, 2U12 

The Ways and M~:\LI~ Cnonm;lI~oe has Ii,. maLI) y~ar:s provilled for lhe wLlliLlU31ion of"lIrious 

prm'isions in our llIX code thaI suppert job cn:ml'on. '"i:,"lOm;e l!I\,"lh ~nd uliler purpose~. 

Memberll afOOlh JXlrt;cs lindcrstood lh~ impn"ance of extending lhese.prOV's;c'lll on a timely 

oosis. I welcom~ this opro"unityto e.x3min~ the approprialcness ofthe~ c.~plri"! pm ... ision~. 

ttlough 1 3m ~ml<'enled lhatlhe :>COp" of the examination is inappnJl,,;slc!y narrow. 

A number of ... ital proV;S;OIIS!.hat expired during the la~I CQlrgreSS "erecxplic~l)' ~.~cluded from 

the scope oflhjs hearin!\- II eJ<ciudes highly ~ueef5$fuJ provisions dcsij!.,)N 10 spur job crutjo" 

such as Ouild America I3orods and the section 411C Advanced E.ocrgy Manufac\u ring C",dit. II 

excludes an ~ut;rc package of pro";s;ons dc"S;IP'~d to e~5<' economic ",cowry in the ",ak" or 

11"IlWJI disastclS. II c .. eludes protecling millions of middle class !a~payclS frOm the Alternative 

l\'lini111um Tax. 

! hope: Ihe importlUlccoflhcsc provisions will be l1Iiscd;n this hcar;og anyway, and lhallhc 

majoril)" will recoQsider ilS artilr'dl)' limitalion Oil which lax cXlenders will be considered by lhis 

commiut:e. 

I also .... pc tIJ.1t following hi~ h~aring. thc .. ommil1~e will mOve Wilh 011 ddiber:lIe speed to bring 

Up:1 ta.x e.Xl<'lujen; bill SOllhal bu,inesses and fam ilic-s h3v~ !\Ome d"gr;.... of .. etlllinty in Iheir 

planning. Imporlllni pmvision> like Ihe R&D Credil and lhe Active Fin3ncing, Exccption 10 

Su~rt f have nl",ady<'xpired. I'unh .. r. lhe t'Xpir:llion of olhen; such 35 lhe f'rtlducrion Tax 

Cre-dit for ,,;nd llt Ihe end Mtllis yenris already di~nlpt;ng busines:i d~i:i ons, 

Firudly, J would lik .. 10 highlight lh ... importll''''c of~""".,, 1 pl'Clvlsions thul I Bin very fammor 

with and advocale their limel), clitem-ion. 

Energy f.nici("1lt Appli3nce.Credit Section -lSM provides A strong ;ne.nlive. for the 

producl,on orhighly emdenl applinncC5 here in the United StOICS. uud it ShUllld w ontin u~d. 

f-kdium :md I !c-<lVV Dutv tlvbrjd VchicleCrt'dit - 111eemlit fOf hybrid truch helps 111ake 

Ihese advancro l ... dmolog,)' ,'chicl es 100'" alTordabie until lar!;C1" scale deplu)"rn~m c~n 

reduce costs. US producers currently ha\~ thc competitive ad":1n ag~ i~ th,sscgment of 

lhe hybrid "ehicle martel. and Mr. Reichen and I bave imrotiucrd icgis:alion (tI.R. 

]374) to Slrcnglhcn lhis importllill il1Ccnli,,~ IInder scciion JOB, hut m n l1linhnull1 1h ~ 

und~rlying ~I\'dil f<lr hellvy dUl)' hybrid~ 5h<>uld be n:ncw~d, 

AIlcmalivt Fuel Vehicle Rdudjng hl[fl','trwh,ccC,,'dil - &"i:l;OI'](I(' provides an 

;necLlli,'~ for Ihe dcpluyn'cm " frefueling ;nr"'Stn'C1UI'C for advJllCed Il'thnotOIlY 

vchicles. n,~ availabilily of relueling infra5lructure;s a critical ehallcl1i;<' to the 
203 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.126

d"pltl)'m~m 1)( all oovanc~d tN'Ilnl)logy v~hides. in<.'luoJinSlho,... pO"~ r~d hy <'INlrieity. 

n~turnl !OlI~. anti bitlfurls. In Ihe pa!!1 this cn.'<Iil has been iocrt'ajO.'<Itu 50% uf qualililod 

('H IS. but at a minimum die turrent c~dil of)OOA. ~hould be mui ~incd. 

Fcdcnll ilomc !.o~n Ibnk Guar~nl~e"fJBX·E~el11pl Il,mds - Ouring 2009 Md 20 1(), 

rcd~ ... ~lllumc Loon Hanks W"ru pcrmiucd 10 ""rk through local banks 10 provide credil 

i:nh:mccmenl Ii). 10<.111 131.:-esempt bunds. As a result m<lre than 54 billion ofpri'~tc 

1Ie!;";t}' bond~ "ere i5SUI.'<l at lower intereSI Me> than would otherwise ho,'c been 

J'fI.\slhk fiMIl"';ng hospital additioll~. ~wd("nt hou>ing.. community inlhli;IL1.1C!UI\' arid 

lXOn<lmk dewlopmcnt pmjcclS. Mosl IIrlhes~ pmj~lS 'IT\"e vel)' snlall a l1d Ihcrei<>n' 

would likcly nul be """,<'<I by trllditiunnl SOUri:es ufcredil cnh8n<.'Cmcnl. This prov; io" 

slJQ~ld be ","ewt"d. 

Exclu,ion ofG3ins on Q""li(jcd Smalll1ysincss Stoo;k - Th" Smalll1usineS-l' Jobs ACI 

incrt~<'<Ilh,' ,,~clu~ion Un gains for qualified SI11311 business stock under Sl"Clion 1202 

fmm 50% 10 100% thmu@1ll",enduf 2011. Thi~ ~Irong inccnLi,e for e..tuil) im esll11~ nl 

in snwli OfWt":lling businesses shuuld jx, n;t,;ndcd. 

f)nh~n,cd D~od\Ocli"n t9, (haril'It-le DIII\",11"n uf Fnild In,cnto,...·. The enhancro 

d~'tluclion fur dunaling food ;nv~n1<)ry hils bc~n 31'ailable to C curporaliuns nl~ 1970. 

In 2{)O5. COligres~ ,''\"tcndlod this incenli,"c IU 11OIl-C' corror~\ionsuL1 a IcmJ'Ol"~ry Ixtsis. 

Mr. D:wis and I hJ"C ;ntroduccU legislation iH.rCJ729) 10 strengthen pnd ",ake 

P<'mJan~nt Ihis impon,ml incemi,<c for bu~ine>S6 '0 dorene food inventury In food b~lkl; 

~nd pamril'S. bon al 3 minim"", Ih ... c."(i~linl; prol'ision $lwuld be cXlcnd~'<I. 

Mlmgnge In<;urnnu I'remium Dc<i!.lCt;(lQ - Since 20m. mortgage ;o~ur:tIlcc pn:miums 

hn"e ~cn l .... lIto..""d as mungage i,,~ereSI for IDX PU",.,""5. As the mil.' <lfguVl'rn",entaJ and 

priVUI~ nmngage insumnc" in mung:tgc I~ndinll. ha"e increas<-J. it is more impOrtIlnl Ihon 

C' ~r Ihm "e cUOlinue 10 provide this ,-qual tl"t'"lmCnl 10 borTOWC1"S 'Iho JlI3Y ml)n~.gc 

inSU[(l",,~ premiums. J hlLl'C introduc<>d lcgisbtion in pn:viuus Congre.~ tu mal.c Ihis 

prt,,"i~iu" pi>rmancnt, ~Iung wi th Mr. Kyan, m,d I ~)ine Mr. Nunes and Mr. Crowle}" 

luI',· ;ntlt>duccd StICh icgisl:nion this Congn'Ss. 

S!!,;eial Rule 1"0 Implement Eicelrie l "rnnsmissi"" R''''lru~""1urin g Seelion 4~1 ~1I,,'Is 

utilities to re""tI"il<: Ihe !:-'Iins from th~ sale of ek"Clric tr:"msmission pmperty uwr eight 

)"~al'l<. provide.:1lhJI th,' pme,,,,ds art ruim ~st~'d in quulilied utilil} prOpi:rty. This tWi 

trdlment supPUr1~ FERC's pOlk)' ofen~llul1.tgjngcle.:lric utilities 10 di,'esl trunsmlsslon 

a~!iets 1<1 lnde~rldenllmnsmission ro'np,U\i~'$. "hidl ~rc m.)", li ~cl y 10 m~k~ 

;""estmc,,1li' 10 enhance reliability and 10 build out uaotsmission linL." t<l n:ncWl.ble ~ncfgy 

producer.; such as wind r3nns. This provision should Ix; ,,-"<tended. 
204 

Rep. Scott Tipton, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.127

(tiOllgft,GU of tilt 1Il1ilt.b .state,. 

lIw 1I0","ble P.I TIb.,] 

(lgirmon 

Ulull;"!Ilml, I!(! 2D51S 

MI~ I, lOll 

U,S. H"" .. Wrt.and M~an' 5ub<"", .. a, ... on Seleu ~_u. Mu."," 

106 OM"" 110 ..... 0111«: 8ulldina 

W .. h/nt'''''. DI;: 2I.l515 

A. Mo,.,be!. 01 C""lfU. lrom Colorado, I "",. ""'Of. ''-wod. of _ ... 1« .... ~IO'1od 

be .. ",. 01 the wind rtd~"rv, WI ... ~o '0 _.pro" 1>1" "'PIlII '"i>POft 101 I n . " ... >Ion 01 

1IIe. .. "", .... 'fY ~,,",U(Ik>n , •• , ..... it (PTe)_ 

Ttl. PK it .~.I to <he IUI"fe 01 wind enO/IV ",<>01,'''1001 in CDIor_ . 'MI Kto .. '~e nation_ 

("""odo in p."icuIOi h •• uP .... '" 016,000 indMduII$ .",ploYed In )oM ,eI. ted '0 'Iro 

wind "'u"rv - ",ony 01 "hictl ",e., .... k. """ ... d <h. PK C)plrl 'lSi't now. "'''''~k>nll'''' , 

"'_ ',,'al com",unltit> ••• ,eclp;.nt. at no" '.~"e, th 'r ~' 10 .. io>d MillY ... 06"<1;011, 

{a.ch 01 u' 1001 ..... in • ""tv o1Ij 01 tne ._ 'PII<OO,h """'" ~ "."'., to US •• ""'8V DOII<'!_ 

60th U.odi,iMai Ind ,en.",.bJe ..... re •• pI.y vit.1 .ole. in "'haocln, ", .. dom .... 1t _ray 

~y, ~ .. '''''"I'''''''''' "'" enetlV .. dependonco il< . <Ullo .. 

WIllie u... PTe doe. nol e. p". until , he ...... of lOll. iI "lmperlt~ lhat ~ be ' en .... M •• 

,oon .. "",'Ible. '" orole< foo • ''''''FJilny 10 be ell&ibIo for tI>t PTe. iI must h ...... wind 

,u,blnu up lod runnl ... by t ......... 01 the I""" cal.nda, ~.,. "'!UClo, p.ojecn lor tho 

lOU cale<>dor ~If -!I>""d ol .. adv be Tn tho pI"""InA ..... d ... """,,~"' p.i"<><." '" ord., 10 

bot tompl ... d in . limei1 fa'hI"", Simply put, Conl'~" ,._ w>It u~, l N"""",be, 01 

Ooc.",boI< to ''''''OW, "n e<le",1on oflf>t PlC. 1>citIf,., would .. ,utt In ,., ... l'1Ie 10\'O'Is Ind 

projKt del ... 001h ~ ''''''p.n'*< .hot ore .'PKtm. It. 

TI>t wind indu"", is """'I. a<>d wi'<~ • ","ditt.bI~ I .... ',."'. 10 redLKl! "'. <te<l~, ~ .. i~ 

<01""'"" 'I> remoln thai ",.,. Thu., wM. _ .... 101 ." ... ~,"'" 01 the ".dit .. k 

<",,"",11 •• Ist., "'" "",""file \'OU to r.a,.,". I pi." '0 rtduta lhat cr-edit Tn .ub'eq ... n, 

'tea,., flfld • "'1 to P'1 lor the ufdl, •• ...:1 wort towa,d, "",,!><,"""""'O II, .iOfu.-m .... d • 

II, ",,,,,ur. '" whitlllh~ fTC 1< flO long ... netd" _ 

_ <4«_ 
205 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.128

klltl Tlpt(>:l 

M~mbe< 01 Conl'ell (C0-1) 
206 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.129

II"tiring on Certain f!:..:piring Ta;>: Provisions 

Sele.:1 Rcwnue Subcomminc.: 

W~Y5 omj " 1"011$ Commitlt'C 

April 26. 2012 

'-lr. Cha ml~n, thank you for holding Ihls hearing 10 review 1111." 2011 and 1()12 la~ estel1d~rs. 

am plcased th~ t()lllllliu .... has hdd lhi ~ heurin!l to ~gj!l proyiding cel1ainty to middk ... das~ 

fUlnitiesand small bu~iocsses in Nevada and around lhe ~ollntry thaI will fae,' a m~jor tax 

inm:usc ifm~n) "flhe....., pmvi~i!lns nr~ nol mainlllin~d. 

Firsl, Ih" exl"n~i()Jl nfthc deduction of Io.:al SlIlc.o; taws is viul1lo $Ihl~$ . like N~vada. Ihal do 1"'\ 

irnp<ls': an incom" m~ on n:sid"nts. In N<'Vada. 316.000 Nevadans sa\'ed ~n ~\'''rasc $1.443 per 

ye'Jr thank~ It") this deduction, Thc>c SlIying:< ~n: I1febl()t\(j 10 bardworidng Ncvad.1 families and 

prnte.:tlhem fronl double- IlI.lmion ~~ they work In 1l"llxick 1m Iheir f~, 

~mL I urge )'01' 10 extl'lld Ihc altem3tive fud to.~ credit and mainwin pmpane us On cligjbk 

:lhe"'~tive fu~1. Thi~ credil i~ essential 1<1 in~rea~ing d~'!l" cll .. 'rgy cilnsumplion and reduciugour 

depo:ndellceon Rm,-igll oil. ('specially illth~ face ()ri ~rea~ingly >'(l tatil" glI~ priCe!; ond ""cord 

pmlits for oil companil'S, 

Third. NeYad~'~ housing Illilrket f\'l11ain~ the worst in thc COUIltf)', with I in 16 hnllw~ fnn:dOlOcd 

and ovcr6O% ofhomC(l"11ers underwater on Ihelr 1ll0n!;R!;c. Now i~ nOI th~ time to eliminate the 

dciu.>ion ormon~gc (ld>! fOrSi\"~~ss, "hich pmkcr~ hnm~o"ncf5 "heo RIce for~'CIMur;,,; or 

short s"lt"S from ~inll hil by:JddilionaJ la.~es. 

S~"ernl other pro"isions el~ible for review in Ihi~ hearinS should also re..~il c the commillc'C's 

r,,11 oll ~nt ion' 

EXlension ofl~ scwn-ycar~ost rcro,'cr), period for mlltOfSpc>ns enlcn:ijnl1lenl 

eomplc);cs 

xt~nsi n ufabol'.Hbe-linedeductions for e~nain cxp<'nsc~ ofprimtlry anI15.'l:ondary 

.school teachers 

Extension ofll\!.· ... :sean:h ,Old del'elopment 111.'0 credll 

E~I(n~ion oflhc 15-)car d(lHttiatiOn for I"asehold irnpml'"mcnts, restOUr3nl 

irnprov~mCnts. and nCWColl~truc ioll nod I"CtAil improwm~nl~ 

I'in<lll)'. lhe M'ljorit)' d(."i:me\l scver.!.1 I'ilal tax pro~ sions incfigible for di;;cussion ~I this hearing. 

It ,s my hop..: that as we mo~c forward wilh Ia.\! externkrs. we "ill also consider 11to.-se illlpurt:mt 

issu~. In panicul:lr. Ihe eXlension Uf$L"l.1ion "Se cicJn ,'ncrgy ma11Ur'IC1Urill~ lax credits is vital 

tu A,"criCl!'~ futun;. Th~sc c .... '(]ilS will crt'!!te job-> in Nc~a<.l:, and across lhecuuntry wllile 

('muring IW rentain :lttbe fo~fl'Qnt of d~vdoping a SUSlainabl ... cn~ ... g)' future. 

Thnnk YOl' ngain. ~Ir. ChainnM. and 1 look forward to working with you as Ihi, process 

oonlilluc.'. 
207 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.130

C" nJ;l'\'li$llla n St~, e KinS 

LIlO!} 1131 

2"22S-~~26 

e(!lI'tfl.cI fmllnn ',;- "l ~jl.ll\lll;;":.¥,)\ 

IIurinll o n Cc rt. in F:l[liring Tu l·r O\"i.\ ~ 

ChainnanTibcri. R:mking M~mbcr Ne:,I. Mcmbcrs Or(Me "tx:ommi((tt. 

Th~nk you for gi~ing nle tl1eoprortunil} to c"me befoT'C tn,., $ubcommi((cetooay lu discuss tll~ 

import3n/:c ofthe Wind Production Tax Cl'I...Jitto 10"'3 and the United ta1~"S . 

A~ you Ulay lno"'. Iowa pass(d one of the country's first rencwabl~ !;~nerJtion I~ws in 19S3. 

This law has ali",,,,,] IUW310 be a leader in Ihe "ind indu 1rY fontimoSI 3 dec~c _ In facl. Iowa 

tTails only Tc.xas il1tutal electricity produced b}' "iud ,,;.h 4.322 mCgllwalls. Addiliunally. if 

should be nuled that luwM gels :,lnHlst 200;. urits tOlal dC~1ricity from "ind gcncration, "hich 

rowers .wer I million humcs in Iny I~IC_ 

The bi~cr SIJL'\:CSS IOry with w,,'01 gene""ion ,II Iowa is nOI the electricity pwdll<;cd. bul Ihc 

jQbs \hOI haw been c",",cd. The", 3'" belwecQ .. ,000 _ 5.000 job. in Iowa thaI nrc d irectly 

affccted by Inc w,nd '"duslry. This indud~s 3.200 mall\,r:u:tur;ngjobs. Mall}' a'" UIl.""drc In" 

tn" cOmponen'" lor the wind industry muSt be produc~d near the wind fam)s. A sinSI .. ,,·ind 

turbine blade can be owr 150 f~..,t looJ!.. ",suitillg in dimcull~' in tr.lII"JXlrtill~ th~ bladc, over 

lonl! d'SlllllCl'5. This me ~ Ibt bU$in~sj'l"S an: moving ill.\o " 'ra1 A'J'lerica II) build th~ 

comJXloent~ ne<:e~$IIry to co uStruCI wind farms. Thesejobs "uuld nOt be in CXi"tCn~" "'itnom Ihc 

,,-ind I'TC in place. 

'1'"" "ind PTC h ... crealed stability in the induslry for iuve.lors ~Ild compani"" In ~",'nli m .... 

building wind fanns aeros.lht country. Tht abililY to p!"" Over the lOllS Icrm has helped Ihe 

indusl'}' to de,e[op new and moreefljcicnt ("chnolo i~ •. In I IJ'XI, the aver"~l.\e wind turbine 

could produce 250 kiIOl,alts o fd,,"tricit)' _ ludal'. wind turbine. produce lUJ 8"C"'l!" uf 1.97 

meg,mattsofde(lricit}. In I 'NO. th~ cOSI 10 pl1xlnc .. elcctricity from "ind ,,·as 01<" 15 ccnts 

per kilo",u huur. now il clUJ b" "chi"v~..J for under S cenls pcr kilo"'11 hour in tJ)~ ri1'1l1 

condItions. This Wem a.dvanc"mcnl in Inc iIlJu I'} can N; a\\ribul~-d to the wind PTC providing 

thc incenli,-c fur C\lmpanies lu in"csl Hnd promole the" ind indust'}'. 

I live in a ,'cry rullli a"," of 10"3. and I C~n sec wind lurbin~-s oulSidl' my win.dows. Wilhoul ttw 

"ind PTC, Ih~ sc "ind farm s WOuld have 001 )x,cn ronStruClcd. young people " 'o uld h,,, e len the 

m-ca 10 find work in other places. and the las base Mthe eOlil\! l\f'I)a wuuld suner. This is "hy 

Ihe "ind PTe is sO important. It pm,·id"" economic ,., pportunil;~-s for thecoflslruclion wtlfkcl'S 

~nd the lando"ocn; ,,-ho lease land 10 the wind Indu t'} , 

f ~an rcmemh<:r Ih"last lime th~re "<15 ~ thrctll oflhc "Iod PTC ending. ",.IiJ"Americ~, an en~fJ!Y 

plll\"i d~r in Iowa. had conSlntClion crews [lUt In fOlllldnt;olls Ii" a m~s i"c wind !'mn. As Ihe.end 

oflh: ye~rapprooehN. lowe rs w:n: p~t up at n mpid JllIce so lhey CQu!d IBkc advanlage 
208 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.131

of In" wind I'TC ~fore il expil>'d. To mc, Ihis i. [lfOOflh~1 energy (omp;lIli~> "'011110 hn"'" wind 

as fYdrt oflheir ovrr:lll p<!nfolio. 

[flhe wind p'rc is llOt rcncw~'\.I, Ihe results would be de"as~~ling for Iowa. J<.ttI I<,ISSCS io II", 

wind indumy are ~Iready proje-cled at !.000-3.000 jobs b.:ginning inlhe s<:cOltd half ofmis year. 

"h~"'SC job 10sS<.'S arc primarily due to manufacl\lrers 1101 pl~cing orders for ne)(1 year doe 10 Ihe 

onccrtainlythm s ul"f\,unds Ihc future of the "illd PTe. Businesscs need st.1bililylSO They (Un plan 

for Ibc long 1~'I"\n . We C:lnt>OT CUI olrlke wind Pl·C wilhout giving bllsinCSSl'li Ihe ab"it) 10l,IM 

nccordinWy. This is why I ha'e supponed the id~a ofa 10llg \enll "''''p dow'" of Ihe wind PTe. 

COI'I:res>l needs 10 work wilh the wind industry to dercnni"" the right amount ofli))lc nl..,.j~-d tn 

proJ"'rly '-,I!"P do"n lhe wind PTe. This wuld be ten ~cars or ks., hul we need to Imrk lI'ilh the 

iooll5try first 10 makc su ..... wc' aren·1 slining the inno"ntion and rt'Scarch th~t 11M !Iready la~cn 

plttCC "ithinthe induslry "hik ~n uring thai wind ('nergy will cOl!linu~ to grow ~Ild pwvide 

cheap, de~n eicclricity to th ~ Uniwd St~ll"'S. 

In the ne~r lenn, we nced 10 pass an ~tclisjon Qfl\w wind PTC thalll'ill gi~e COll!lreSS Ihe time 

necdl.'d 10 pUl lugethcr a 10n!ll~n" "dUlp do",t. Wc should conlinue 10 look at ~II available 

Ofltil'n~ in f>'lSSin!l a sho" ti\ll~ cSlension or~ wind pre. It is ion[lOl1am ror jobs in the Un ited 

Slates and it is l"'l'pl",;ally critical for jom in WCSlen, to"·,,. 

Thank you for your lime. 
209 

Rep. Tom Latham, Statement 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.132

C" tnmrnlS fur Ih o ~""(l rll 

lI ollS<! Canlnl'U"" on W.l' uo! .~n! 

Sul",ommiU..., on &1 •• 1 R~'~nu. Mn. "", 

.~ rin~ uu Ct'rhli" E,,.irioli\ T», l'r",'1< in".' 

Submin«i by, C(l b~ ..... u To", Lith", 

I wi.h In ~~prt'S" m; ,pp=i"ion 10 Chllin""n Pal Tillllri for hnlding. h~arin,g III disoun th<! fait {)fth" 

"I<p,rinl! provisions. I h""~ long bcm. ~uppon~r(lfdomcslic soun:~~(lf ~ .... ~-rgl'. DQm~Slk fud, m~On 

jobs in Amenca uod less reli."ce "" "'~o"s (>flhe "orld "Ikn unfriendly I\! OUr inler($l~, ~ you 

"'v ~wlh~ In>: ,""I.",\crn. I "QUid urg~ j">U l(l ,"'n.idcre"~ndi"glhe AIl"","li,,. """I. Credil and, wilh 

lhedomise oflh~ ethanol la, credil .• mendin[l; Inlemal Revenue Lod~"'.lio" 6426(d)(2) to includ~ F.8S 

a. an ahcm~li,"" fuel. simibrlu C(lmprcs.«<I Mlurnl &0>. propane. ""d hydrollcn. 

Th~ E .... rg; and Policy Acl ofl9'l2 has lonll "":(IJi.lliz<"ll Eli5 . compflsed ofSS percent dom"'li. elhallol 

and I ~ pc"'."1 8'~",l ine . a. ~n "llcrTlaliw fuel f(lr <I""'~"Slic cnergy policy pulJl'l'SC~. Th. simple rC"~S"n 

il wa;; fIOl io<:ludcd with r1luur:tI!;M. rrop"". nnd hydrogc'1\ in 1t.: .. h'maltVe f~1 credil Wa5 IDe pl"1:1en<:e 

"flheg~neral ~lhnnQl erroll. As II~ Commiuc" kn<)ws. all aUlom"Nles ""n run em il3o;oline "ltb 10 

percent elhallol. Only ,pcci~111""ibl,· fud vchidc. ~ ... n run on 1:85 .... d there 3n: nver9 minio n 0., Ihe 

rood loday. 1:85 CO\lld be ~ ";abJ~ "ltenl<lc;' e ruell",by if lhe (I,er I Ilo.OOO iml~p"'ndc~'l rel"i lers -across 

the egYn!ry ""uld boo e(ln';n~"" lhul ,h"y """Id mov<Tlhdr ,n,'<-slmt'nl in s:lks,W"'Ih" ~~C S year$. 

Th~ price' "fH~ i., Ihe key 10 Ihal .ucce .. ful ",Iun> i" in,·es,mcnl . 

Tho: clomesli~ a"l~ manufa..111rr:S. f(lrcl. GM. and Ch!)'~I~r h!t,·c pl""l:~d IIJIlI in model )e~r lOll. h~lf uf 

,I>o-ir~,.,. prodlK:tinn "in be in tl~~ible fud ~hid...,. Untimw""el)'. IhI' supply ch.in for E85 rud i, 

immal"'" to non OX;!I~nt;1I m"", Ih." hAlf of the .Lltes. Cu""ntly. I"" Ihan:1 p"'=nlof •• "",ce 

sialino. in the Uniled Slates p",,,idc E85 11.0 an aitcmali,e fll .... oplion. rompI""d I" 100 [\Creenl of 

1.I=j]·,35.000 s'~ljo""- fhi ~ rn"k"" ,lit: rod unrK-""es~rily e~p.;nsi\e in mO$l <lfl""."",un,!)'. M"re 

pump!; m""n low ... p .. k~ •. UniQnuJlOldy.oll15ide of II ... MidweSI. II is ea!;;~rlo lind a dea" I!nlhmom 

alonll oornalion'! hill,),wa)"' IhM il i,lO fiml an 1085 fuol pump. 

i\llrn. s:lme,im<'.1l:S manyas2.S00 $"",11 and mld'sll'" b\I$;ness<'S ha\'~ made tn., tinandt>JjUlnp 'nlll 

selling EB:5. With me!","!:" i""rea"" in prioe. CRU ... ..J hy In.. ,,,,,·,,,ning llflh~ "th3nol "",dit nn 

ikc"t'm\:ler lJ "f2()11. many~lalions "...,.!imlin!! Ihcir saJl>S havcdf(lpfled drntnalica lly. In "ffecl.having 

relied lin Ih" 8,wennnenl to make IIle signili~3tlt hw."tm"m - ~v ..... ging o"~r SI,O,O(Xl - III<')' ""w!lrtd 

Ihc""eh·., ";Ih 'IflI,Jd«<lasselS. Wilho"l IDe sl",n'lem, price break 11"'1 a Ulx o",dill""\'id< •. I .m 

" r,.. id tha, Ihe 2.S00 s,.,ion, "'1lJipjll.-<l 10",,11 0,5 Md fUM" cellulosic bin-fu.1 will be!;in '" di~ppt·"" 

IlOad)n8 Ih .. >t'pply cNtin III th~ opp<»ile di""'liQtl from whal il nc.ro«i flllihil . 11".,...livc ( .... 1 '0 ii\3tld {)ll 

ils ,,"'n wilnnUII!O'·em",.minl""""lion. 

Bast<I on cu"..,m E8S :\:1 1 ... Ihese~h''''lI""S ",ould only OQ)I $~4 million ",,,,ually, MOPpoSfil 10 Ihc lUll 

o:thBfI01."b,id),. "hich ""stsS6.J bil!i(!n alll,,,,,II}". III oth .... ",ord •. fixing Ine E85 C"" be done for Ie., 

than I perc~nl of II .. COOl of II .. r11i", Clha'lOl subsidy. While .nsunni' Ih~1 Ih. sitlJlilicanl inf!"a'ilnlClure 

in"'~tm"nl$ """lin"';' "' boo m;)fj~ while pml"<'ling 11\< sm~1I b",;ne;;sc'S .na! h:!H' made tm~nIS 1(1 

dme 
210 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.133

SIHlemelU for Ibe Rccnnl S uhminw by Ibe 

lIo no nollle Vern n" ll Membe r, Uniled 

S lalt!l Huuse of Rcpre; ~nl li. c Cnmmill ec on 

~ys wnd Mn ns 

S u beom miller ' ''' el~cl Ite, ellu~ Me ... u"", 

II carillg 11 11 Cerla ill f.~ l'irillll TlI~ l'rmi,ioIlS 

i\ l'ril2(i,2012 

Ch:iinnan Tiberi, Rankin\:- Member NC3L and Members oflhe SubcommitH_"e on Sek-el Revenue 

Mcasuf'l."S, 1 CQfl!!ncnd you for yuur lead,orshir iiI ",o~in!>! forward Wilh a much ttCl.-d<."d and lOll!>! 

overdue examination oflhe rrovisio!1' of the Internal Revenue Code thaI expired at Ihe end of 

1011 and thai will c,~piroatthc end of til is year. 

I .... ould like IQ takL\U mOnlent tQ highlight Qn': StJdl provision that is impol1antto many 

charit'lb!.' UrguniZ<lI;Qlts. Section 511(b)( 13) allows chari.tllble organization 10 maintain a 

Slructure that .,.,nnils them IU amlia ... wilh I taxable emity on a limiloo ~i~ whill! lIlaint~ining 

Iheir eharitnblc 5tmuh and thdr vital charitnble l11i~~ion. Without the .se<.:tion so.ne chariticslnisht 

h~\ c 10 consider J ditli:r.:nl muc!Urc Ihm would reduce !hcirCOIllOlillllcnlto th;lrity, 

In th" Ta'p"yer Relief ACI of I '.197 under the leadership of Chaimlan Bill Archer. CunS""" 

IlCmtan~nlly modilinl h~ rules rdating hI dclinin~" Il<'fl II tax ~cm pt organi1-"tion hM a 

C(lntrollin~ h.'rc nfa ,."bl~-d laxable subsidiary. Unll~rthe law, iflhe orgsniZJtion i~ controlled. 

pa)'nt~nlS 10 lhe ~xempl Of"KaniZilliot! frolll the mxab!c ~nb:;;diary (usually in Ihc fonn ofinten.'St, 

rents. ~nd roYlllties)arc IaMbic. I>rior \0 Ihis changc. ala" e.xCmpl did nOI conlonl a taxable 

s"b:;idinl)' ifit difi.: • .:lly uwned kss Ihan 80 percent; the 11)97 nt{)dification n.-duccd the share 

ol,~rship lc,'ellU direcl or indirect c<ln trol or so percent 

This chJnse \I"J$ of s~riousconC"eTn to many chariiobk organil.1liOllstmd 1.:1)( eS~IIlpts thOI are 

dCI'OlW to ' he suppon of (harili,..,; bee:tuse "Ilile il i, ~ l.:on"110l1 pr..-:lke t<lllmliutc wilh lll.~uhle 

orl\o1nir.ation!i. an ownership level txolow 50 pl'rccntwnuld make II much harder t'i,T Ihe excl11pl 

organi 7.Dliool 10 prolecllilc usc or",; m<lst impo.Jnonl nnrlbutes. its good nam~. its symbols, ilS 

logos and other identifying inromwlon, and its b'OOd wili . 

Follo"ing Ihe cfl3clm~nt nfthe 1997 llI<Jdilical;oll, numcr<lUS ch~rities and orgaoi7111ions 

~uppor1inscharil y elltere<1 inlO discussions wilh Chainnan Archer. his ~laf , and w;\h Ihe Joilll 

('ouun;I1~"" on TaS31ioll to dcvefop all aJ ... .,.:llivc Icst Ihat "ould bol~ O'<xl Ihe L'OIICL'TIlS Ihatthe 

Chaiml3n had when ~e proposcd Ihe 1997 ch3ngC. bu! also ml'<!t the n ..... "tJs of the char;!Jblc 

('r!llmir.lltions. Thc n.'Sult "flhese discus~jons "':\5 Ihe dcvelQpnlenl and cnaClJn<.'l1I in the 

I' en~ io" PrQtcctio n ACI oran Jliernat;vc t~'SI und~r II'hj~h the IRS will u~ tools milS dispoo;al to 

Il'SI l,hl'l~cr payments b..1wl'cn 3 l:l~ cxcmlJl or8,mi)I.:J.lion ~od a Iu.~abk' subsidiary ~rc al amI's 

lenglh!lOd fair Illarkct I"Jlu~ . In the event that tMy art' not, Cnngn.'Ss n.:lt only provided !lunthe 

cs~ess paymcnl, wnuld be t:I~OO bul also ~ubj~t III a 20 pl'm:nt c,wi~ lax. 
211 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.134

"nlis 3ltcrnmiv~ Icst has workw "ell. but ,w.ning with ils "riginal enaClment, bo.'cnme 3 p.lnof 

tM!! pcn.'nniui extend~rs p.,ckllge for Ihe political and bodgctary reasons Ihutltie Commillee is 

""'''' Iryin ~ tl) renl~dy_ 

s.."'I:tion 5 12tb) (13) ~ an alternative to a pennanenl prtIvision in existing law thm should itself 

ha ve been made permuncnt , 

"nle S 12(b) i IJi provision thm expired m the end nf20 II is limited ~s wclilo existinjOcommm 

(and their ren,"\\'als) in dk'd 3t the lime of enaelmenL llw flS.'ilimption nl lMllime was [hal 

wlk:n a future Con~",w undertook the pain t~kinl! elTon of examinin g all of the extcn(k", thiS 

pro\'isioll~ would. likely Ix- made pemmncnt and opened up (() new ~mlllgcmCnl5. 

I urg~ the Commiuce altimatel), to eXlend se~tiun 512(b) (13) on n jlCnllunent basis wilh th~ 

rem .. wul of the existing limitntion \0.1 contr.ICiS ill etfeel on the d~\e of lma<:tmcnt;15 pun oflll[lt 

elfon. lfin Ih., interim tl'mporaryextcnsions Brt'. necd~d one mnrt'. time, S 12(b) \ I 3) should 

dtfmilely b.: intluded as wdl. 

I thank the Chaimlan, tile Ranking Mcmbo.'r. and the Membo.'r.; of the Subl.'olUminee on Select 

Rc venu~ Measures. ror the impt'nam w<)rk thc)' are dQing, and for the upponunil)" to submit 

the.e conllucnlS. 
212 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.135

STATEMENT Of REP. XAVIER BECERRA 

WAYS AND MEANS SUSCOMMI1TEEON SELECT REVENUE 

HEARING ON TAX EXTENDERS 

MAV10,2012 

Every<Jn" knows that t he Internal K~Vt!nue Code could use refurms 10 mah- 11 simpler, 

{alr~r, and mQre effident. Examining tempQrdry tax pru~lsluns Is an Important ster In 

laying the ~ruu"dwurk fur romprehenslve tax refQrm_ 

I havesupported a numb~rofrdx ... xt~nders that h~lp spureconQmlcyowth and JQbs. 

11Qwt'vertuday, !<Iltler than (ocus un one extenderoranuther, 1 wuuld like to urge the 

Commit!"" tu examin ... in depth and earnest the efficacy uf each ",de"decso wecan prepare 

",,,selves fur the more consequential task ofuveralll:!x refurm. 

Todaywefind (),,,-sel~es In a budgcl sitl,atlon where ev~ry expendltl,re lor mandMQry and 

appropriated federal services receiws helghtcned sen'tl ny. ~nd the same .~hnuld be in,e fQr 

eXllenditures In Ihe!:ax code, The Ollmber Qflt'mpnrarytJX provislnns in the cOile number 

In Ihedozens. H~ving so n"'flY tempo",ry pr!)vi~i'ms increas<.'S uncertaintyfn planning for 

falnn;~, d for businesses. and the ~t~rHm ·SIOp nature often>I'Orarye~ ensians for ~o 

many tll. inc~ntJVi" is no way to run the largc5\ ~nd mllsladv3nCf'd economy in Ihe world. 

Alt hough w~ tend to lQ<lk at the custs ofl!lCtendlng thes~ provisluns Qneor twO years at a 

i",~, th~ t15callmpact Qf extending all Qf these. provisions is signifiC:lIlt-in fact, according 

to C80, Ihe cust Qfextending all tempurary provisions Is $8l9 billlQn frum 2013 thrQugh 

2022-nollncludln~ "nuther $173 billion in assodatefl debt service roStS, 

Ala lim(' when Ihemajority st'<:ks tQ slash access tQ health care fQr seniQrs und Qur paQf1'St 

Citizens. when we 3rt' being told that we simply cannot . rTQrd to inwst In Infrastruclurt' 

and uur schools, we need to tak~ a hard luok 3t our budget priOrities and ensure every lax 

d1l1l3r. whether it's spent through the tax code ar Ihe appropriations process. is .ubj"'t to 

thesames\..; ndard ufscrutiny. 

Despite the merits Qf eJGImining tempu",ryprovisions in Ihe rnx CQdeas we p"'pare for tax 

refQrm,this panicuJa,proress initiated by the majurityun the Ways and M .. ansCollimitJer 

~k~s a very narrCIw view afwh~t pruvisinns dcscrveconsi<lcr1Illan by thIs Commjtt~e. 

Along with many uf my colleagues, t ~m dls.~ppnlnted thaI Ibis processarbitrnrlly e~dudcs 

a numberafprovlsions that have proven to be effective In promatingeconomicgroWth ~nd 

creallngjobs, I'orcx"mple. Build America flond ~ heJpt'd flnan~ hundreds uf criti(31 

Infrastructu~ proje<:tS acrQSS the CQunny, and the 4BC Advanced Ene rgy Manufacturing 

CT<'dtt spurrNi new Investments ,n rt!n~w bl~ and auvanred energy pru!~cts, 
213 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.136

These provisIons an: no less deserving of cunsldcnUon by Ihls Cmnm!ttee as we uplo .... ' 

how to best ~nsurr our r4~ code supports economic growth. and I would encourage the 

'n~iority 10 engage in comprehensive. no. arbilrory.over$igh' of our taJ< rude_ 

ADDENDUM: 

I hnvc in pasl CO/lgresseSSpo/lsored bipartisan legislation on two t3~ extenders that I 

hell eve merit f"rthercrmsiderolion by thisCnmmlttee In thIs pnxess; 

SECTION 196 ENVIRONMENTAL REMEDIATIONTAX INCENTIVE -I h~ve slIpported 

mnking Section 19B of the nlem 1 Revenue Code penn~nenl , Browl1f1eldsore3b~ndolled 

or underulllf1.ed propertieslhal have nO! hc n devdoped heCl'llise oflhepresenceof; or 

perceived pre~~nce of. haurdOl'ssuhstances. Section '1'111 all<lwsa lMp.~yer 10 fully deduct 

Ihe C<lSl~ of enyiromnenT;lI cleanup of hrowntlelds propertIes In the year Ihe CQSL~ are 

Incurred. This provision w~s adopted 10 help incemlvl~e cl nnll )~nd development pf 

",nlaminated siles hy provlding ~ Inx henefltlo d~velopersofbrpwnfi ld propcrtie~. 

Unfortlin3tely. the templlmry nnt nre of thIs proYislrm h~s meanl Ihls incenllve has-not 

been as widely u~ed as origlnallyllntlclpated. Making Ihis provisl<ln permaneM will 

pr<!vide more certllinty to developers. whlcb will help lead 10 InCN'aS~d n!dev~lopmen l and 

.... vltalization of conta,"lnawd properties in our nelgbborhood~. 

SECTION IBI EXPENSING fOR QUAllflEIl FII.M AND TELEVISION PRODUCTIONS - I 

have bosupported klng e~penslng forqunlifi ed film ~nd television productions under 

Seaion 181 penllanent, which 1$lmport:mt for produtt!ons acrou the (oumry ~s well as In 

my di~trict In Los Angcle , ThiS provision hell'S Ih~ film and elevi~lo n Induslry C'OnUnU(' 10 

he a ~Ignmcan t contrlhutorof Srowth In our~tono y. Section 181 was enacted to enSU .... 

film hd lelevj$ion production ""mains Inth" United $tale$ and continues to support wellpaying lobs to communities n<ltlonwlde. Film and lelevlsion productions er~ e~duded 

from bonu~ d~preci3t1on I~gjslatlon that covers yirtually ~v~ryolher dom<'SUclnduslry, 

and any chances in Ihis proYisio" should not be considered outside Ihe conlex' of oyer~1I 

ta~ reform. 
214 

Multiple Member Letter, Statement 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.137

l(ongrtS:!I' o( IIJf runitrb ~tiltt5 

1!U~1~"III011, K 2,\51~ 

1110 llon<Inbio o. ... c....r (RoMl) 

II ..... w.~ • .t. M-. cu.., IIIll Loog"""'h 11""",011"", II"ildl,,! 

W··t.1nIl--.llClOSIS 

'11'>< 1""_1>10 [lo,OI 0..;.". (R.r .... ) 

1100 ... R"1co Coo,"' ......... 0.;, 

11.JlllI ..... eap;"'1 a.iltling 

"' '~IlCXlSIS 

'r"" I r ...... ohl. SaIl ..... Le ... (I).MI) 

II"""" W.".ol M ...... M .. ~ .. ~ M ... ,.,.,. 

11110 l,on"""""1"" ... Ofli"" IMkli". 

WlUbi.gIOO, DC 10$15 

n", _~", Lou;' Sl><lghl« 

Ito. .. R,,\<1 t'_,.ilf<l<. Rrii'A lMt\,br, 

16l11...,.,g""''''' u", ... orr",. !lttil<lio, ";'i"~DC20S1S 

W • ..n.e ,. -..\. d ... ~,,,, ..... .. ..root '" ,,,dude ",' _r', pOOlog ... _" _om,.,.oO)' 

boI_ ,be ,.,.... ",,,,,;. .... pork;", .... "'0'" IO"~ ... If"", I""""""W ....... 0 .. 0..:.+_ b,H 

""",Won<l .. ''''' 1WI.",Iloo<, 

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[Public Submissions for the Record follows:] 


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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.141

Statement for the Record 

Hearing on Certain Expiring Tax Provisions 

U.S. House Committee on Ways and Means 

Subcommittee on Select Revenue Measures 

April 26, 2012 

Submitted by: 

Manning Feraci 

Vice President, Legislative Affairs 

Solar Ener.gy Industries Association 

575 i" St. NW, Suite 400 

Washington, DC 20004 

202-682-0556 

mferaci@seia.org 

On Behalf of: 

1603 Coalition 
219 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.142

1603 (oaliUon 

SlOlemenl /0, the lIecotd 

H~~rln! on ern';n E><pi,i~ h. P,o";olon. 

u.s. Ho~ ... eo_illuon Wa.,. .nd Me'n> 

s..bcommln •• on Selectll,.....,...ue M<!a'Uf.' 

4p,1I 26. 2012 

Tne 1603 ""'lllIon '.IIf ..... m.""e' a dozen <Iuo ene'lY irldu>!'; ... and 11101'''011' of compaole •• cro .. ln" 

entl'~ counl ...... Th" w. ~!on ~pp,etj"' ... ~.vin& Ihe Ol>l>ort nil~ 10 .1>""'11 • ,"'Ie,nenl for the 'etord for thl' 

Important hurlog 'e •• 'dlnl e>pl'inJ t .. p<ollis~ •. 

The Inlernal A"""nue (!>de ("Code") D'O"Iod .... nost 01 t • • incentives d ... lgned 10 'OU' .,, ~ de""lopmen' ond 

uu of dome"lc eners~ '0'''''''' and ' "c"oolos,,,,·ln in<tan" ...... hMt!. ""'paver doe, no. ho.,. ,ulfoci"n' II" 

li .M~y to utlll,e an .. n.'IV tA> InCf!nllve. proifoc' r\Pv"ID!l<''' commonly "",o"U,. I".,,, , ... .,i .. by parl0erin8 

.... ith II, equllV iO""'10" who hl"e 1M liQuidity 'M la, lI.bil ~y 10 1'101,,, the",. 

The 1008 " conomo: cr .... and the .uboeQue"' ....: .... ;em "",de'ed many <lun ene'BY 1 •• loc...,I""'O 01 lillie 

Im"",di' le "alue. Prlof '0 the ronan<lal erl, •• , many ,enew, ble_,1V pfojech ,eUed upon Ihird·p;ort y ••• 

q""y i"..."lo",o mon~ti'e ' h", value of feder.of ","ew~bl .. ""~'lY iflcen""~,. The economk downturn 

dra.licallv ,educed I~ ..... Dability of la. Oqu~V, ,e.e",lv limitlfll 1M Ilnanc.i n, available for ,,,,,,,,wable eoerIV 

project •. 

T .. eq uity io" l h@le .mu,""d.ode .. "i\w.hep.;l«i"" 

11".ndng of an .sSM 0' project bV la,s" la ... p;oyJ~ . 

entitle, ,hal uo ul'li,", I .. rr.te MI" •• Ul nff,e lll\el, la. 

11a~ iH ... fa. equity in ...... ,,,,, in re".wablo.eoaf£"Y 

PfOjetl •• ec""'" f.' Um "" io ...... ''''''''' Ia.ed nol only 

on Ihe inco,,", I,om lhe a .. et or projec .. bUI olso on 

fed~lln<om~ .... pfef ... e<Ke . ln,o"Bh Ihe ",lII",uo" 

of , .. credito). Proj .. , d ..... .,lop"" Ihe "~""".· fYPluq.,. 

do 00' ha"" ",fIl<;"'lt ab e l<Kcme 10 ~e it 

dl'KliV Irom." ..... I.'""dll. and mu .. Pi'rtne,w1th 

II. equity ",lIe'lo" In <>rtIer.o finance prcjo-n,. For 

u.mple, they p"rtlc.ipa'f! In 3 P'r10".<~ip "fUt"lure In 

which owoe'S/'Iip of I~e p,oj"ct I. Irao.I""w from th" 

, •• "QU'ty lov,mo. 101M 1I"""lope,"""wn,., once . he 

, •• bene' lt> . ... ,ea ll'lId. lea.lng "'uctu'''' , I:in 1D 

Ih",e CQmmoniy lounrl irI many ... <;11><. of ' he 

eco nOmy ore .Iso UllfiLe<!. 

'. 

.. 

.. 

... L. 

.. 

.. 

O' .' • I I ,u 

- , >0. ,., • .... - ",_ ..... _"'_ ... - -,--'-----
220 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.143

lhe pool of t •• ~q~I'V In,,,,,",or> I. tV!>l<aHy limlt~ 101M 1.'8 ..... n<! mos. IOpnlnlc.,<>d I1n."dol f" .... • nd 

ulilitle., _,,<I the ZOO3 OOW(1omlt Cf'oI. "gflifioonUy 'edu<;e<i,he """~'" dem~nd .moog Ihe ... "",II!..> fu. t., eQuity. A 'evan elu,~ I>f tn., Bip.ltj~n ol'ry ("",e' on Moreh n, 2011. not01l .h .. . he number of ... 

equity In",,",o .. ln newabl~ "ne'ty 1><0;"<" declined f,om 3PI><",imUely 20 In 2007 to II in 2008 and only 

II In 2009. The o,_lat01l dwl oc ln ""e",II, • • eQulW ll""nc1ng pl'<IVld01lto 'enewoble"""'JVarojetts w .. i>Qual!yd,om.Uc, falli"&: I,om S6.1 bl~lon In 200710 $).4 bllll"., I" 2003,,,d SI.2bll11"" In 2009. 

' ad<you"d on the s..rtlon 1&0] l ..... ury !'rol,am 

Ttle Seellon 1603 Tre ....... P'og'am 1"160]")",., Cl~d in 2009 .nd " ,Iended In 2010 10 ~d,enlne I.cle of 

la~ e"~' V available 10 finance 'e"ew.ble ""elS'! p'oJ"C\ " The 1I'0s •• m l.p..,<1 Ollhe ",,<I 011011 , 

" .. imoorla",tO ,,,,''' In., unde, Ihe 161')3pro" a"" the 10"",'""",,,, <I"","ot pld:wlnner.and Iooe"-" 

.imply .1I0ws la """" ... o 1000e;"e. delOl .lOnl in li~~ gf ta~", an .,.Ist",. ene'K1 taK~ ed~ ,h~y 0",-

olh",w!,,, e",;lled to cloim, Thi. ",e'''I~ eon>ll!"' e. a eh.nB~ 10 Ih" timing of ",hen an eXi";na """'IV !a. 

if\Cenliw oon be "1II1,ed. Thl.e""n!" \J1 .lmina. _e.er, p,,,,,kIe'lh" Ilquldit~ "udKlfortl>e fUrlhe, 

d""",lopme'" of dorn".tI< ene'gy p'o~c ... 

5«tIon 1.03 Trfl"'"- "",,,.,. 1Io'I 8Hn . su-.. 

16'J3 is iI'uc:\Y'ed In • '<,<hooI0ll1 "",,"al m.nn~r Ihol ""cou' •• e'the <levelopmenl of • wldo! Vlriet>/ of 

"""""tl< ene'liV I<!<hnolotll'" \f\cl ud"'l: blom ... ; combine<! ""., .n<! """' .... ; fu~1 cell.; SeOlh", mo+; 

hydropower, "'ndfill p.; m .. lne hyd rokineti<; mkro ... rblne; ""1dp. .~kI wast e; wlnd.nd "'lor. 

Since III en~menl , Ihe Nallonal R""ewoble [n .... ' v labo,otory"I "NREL") p,el,ml"",..,. .n.lv~' <on"""'3,"""ly 

e.llmoles lha, 1603 ha •• uppo"ed~" _rase of 52,00010 75,ooolob, 0 .... ' Ihe "" rio<l,,,oly>ed. lhe pr<>grom 

I'll' ""'e"ged S1.5.8 billton In pM",,'e "'ClO' Inve5lm"", '0 "'PPO" 0 .... ' l4,OOOdom ... ic project. utlij,I"g a 

",ide rang'"- of n~.cv IRI1MI08ie . in ,II SCI ,Ulu. 

It is Important '0 note thot 1601 i. P'rll<ula'l~ help/ul lor .mall I".al"e .. ". mat Ife Ihe nalion', enslne 0/ 

economic groWlh and Job "",aUon. Tl1e<e buline"", lVP!caliv <10 not h ..... ttle ,e""",eel or ~c;I", to ""Ie, l"tO 

compliOOled la. eq uity finandnl l'o" .. ct1on., 6'1 Vlrl .... of il5 ... "ctUf1!. l 6Cll ollow • . ""all bu,'oc,,,,. and 

PfOjO!<, de""lope.-. 10 mone,i'e tI1e ~n<le.lyinl l1" ' or ne to fin.nce the d""elopment of woltkwhile 

di,tribu, ed ,eM,a.r"" P'Oj""". 

' ..... "e .. Should Elclend lhe Section 1603 P,oliram 

lhOl'Sh IMe.~, """ ilyrnar'e' h~. mo<l~.lylmpl'<IV~ . th~ e 'em.i", ~ ne~ for 1603. lI«;e .. to t""eQuity 

fin.nci"R ha. "ill no! r"cov,,,,,d to '~e le.el, .v~l .b l .. pri<>r '0 ' he ,,,,,.,.<lon, a.nd the ,ale. of 'eW,n 'hat .re 

t...lng d"""'nded in ,0<131'" m.,I<Mplaee by I""" .. "" r~"",i~ aroh bi i.el~ high 

Due 10 global eCOllOm1< cond~io"., a targe I'Ia ~""ts be."""," tile 10 •• 1 amo,, " 1 of finor><JnR .h., ' ""ewabje 

eoe'BY d~"","""''' need 10 'ullv ,ull,,, the bo!nefiu of c""lll\ u~d expo",,,,,, of dom ... "c .01., lI'ojO!<". 

E.pl'olion of 160l i, Pfofe<:.ed to red " ,e Ihe "".iI.bllir; of I~x "",,!ly fin.""lns from." e.l1moted ~1.s bll llo" 

In 2QU to.ppro.lm lySl.6 bil lion In 2C11l- . ,,,d,,e'lDn of ",ore Ih.n~, Thi,will.tine jobuu.ion and 

..,,,,,,ely .e;!,1et 'he m., ket', abili.v to 1~.e"'8~ p'lvat~ wet,,, <:>pital tP finance "ew do ...... ti< me,gy 
221 


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IIfOJ""" lheeefb.e, ' o CQn!ln~ ~ 'hi, ,uc"" .. ful, ]o,,",,'eo,I"8 p,ol.am, .h~ IWl (0011,1"" ~""ou.al'" (onll' .... 

'0 exttnd 1&QJ. 

............. · .. ·.,... .. _ · ...... r G .... ' ''..-.. 

" . "." %'(-" , ~ r .... lI-w.. .. . .. . ,

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_ I ...... ""'''''- '.m ...... '" ...... - .<ej",:1 ... ,,., .... , '''_'lIIfl~'''' . - " .. - .. -,-"" .. -.... ',,_ .... ...,.,,--, .. ,---

(onclusion 

Chol,,,,",, TIberl, R.nki".MembtrNeal .nd "".mbe"o/ the Subcomm n~, ~ 1603c....r.tion •• ~'" thon k. 

'fOu 10, ,"" oWOr1""ity to provide a stat .. "",,,. lor 'h ~ ,e«>,d. for YO'" ,0'1," .. ,nce, iMtac.hed i. a <OPV 01 ~ 

HOYember 30, 20111etter '0 ,he Ltad"",hlp pf the U.s. "'"u ~ and U.s. Senate "8"od b'f "" .... 7S1) <Pmpan"" 

. nd trode o,sonl. aHon.in .upport oltl<lendl"ll60l. 
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Statement of Aaron Funsfsinn 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.157

l1u.' 1<!IIlpt1rary PrtXh'clion TM Credil for wind cuergy wll.~ enattc<l in 1992. ]flke 

indumy h"" no! caugbl up wilh Ihc ",ari<cI by (lOW, Ihen il will ncw.cmch up with Ihe markeL It 

is vital 10 tht futun.' of our t'CoIIl)my Ihat electricity prices be reduced, nlll hidden by ta~ cr~'tlit s. I 

urn fmm a farm rpmi]y and we oppos,'lhe ~Nlension oflhi~ I~~ crc<lil. MO.'1 farm~rswlKl ha'e 

bet:n pllslK:d aside by Ibe wind induslry, which is mOn: interested in capturing t"" cr(,'diti Ihan 

compo:nsaling r~m1CI'S rl)r Ihe Il)ss oflheir pmpl.'ny v:llu~. do nol support the emiOJ1 or this ta~ 

credit. Recently, I ,poke with a fanner who "cl"uliy reUIW property,," which wind turbincnit. 

He lold me IhRI dminallc tik was cru,hcd by Ihe heavy <:<tuipmcnl and cranes. soil ,,:Ill 

cOmpaC\l...t, clccaical c"bil-s Ih" wcre SUppos.o.."<.I1O be buried five tct'l deep were cXPQSCd althl.'" 

surfa,:,e. snd rock was thrown imo the fidd. "hich caused $],000 damage 1<) "'lvipmenl. You will 

(iud Ihal \l,c majorily offanncl'S and landowners n~':lr thesc wind "fam1~" opf>OS<' Ihc ext~n!ion 

ofthis ta~ CrediL and other ~upp<lns. Th" following c.xcerpts ",,,w ",rin"" by Glenn R. Schkoede: 

Point 4: I,.lIrg" p..rts ofLlle true capital and operatingCOSLS of eI~ctri,ity from wind """ hidden 

because maSS;\'e fcdc""~I , ~IC and JI)I.'a i t3X breaks and subsidiL'S shill much of its truecosl from 

'"wind lann~ developers and owners 10 lIIxpayel1i alld eketri" cu.~lo!l1ers. Wind industry ofTkilLls 

and lobbyist!! lIS ",ell as the politicians. reJ:::ulators. and other J:::",·cmmcnLoflic ials. Sov~mmem 

cu"tract<)['S, and JLu"·govcnllDcl1trxganizali0J1s (NGOsl that suppon wind induSlry intcn:sls. 

oil"" "rnlcr;t~te grea tly the tru(' costof~\\'ind farms" and elettticily prtJduccd from ~\\'ind 

fnnns:' SlIdly, some ck'Clric ntililyot1icials also ponkipate in hiding the true cnslsofd~tricit)' 

fro", wind. Whcn initially proplI5I.'<J, \l,e rationale fU\' providing 18.X Ixe~ks and subsidi~"S for win:d 

encrgy 11'115 to help" relali"ely new I(chnology for rroducing c1cctricit)'cOll1peIC with established 

ciectric genemtiog technologies u"ii! advances in t~ ... hnolog)' would pennil wind to compete 

without SuMidics. Howc\ ~r. Ihc m~!IIlive ta.\ break. and sub,idi,:s no" ~vailabl"and th~ wind 

illduslry's "'clJ·I;nat\c~'d lobbying ell'ons to preser\'e. cxpand. and cX1cnd them makl'S ckar thilt 

Lhcre i, no 10000gcrany !;eri<)us e~p« icm Ihm eil-<:Iricity fT<)rn wind wi1l become competitive (II" 

Lhat Significant ad'llnces in wind lC'Chnologyn~ likely 10 c,'cr pmniL wind Ii) becrlme u 

cOnll"'tilive source of e!<.'Ctricity. 

l11C uS En~rgy Infoonatioll Administl'lllion lElA). In on April :200S rcport. indicmi.'Il thm fcder.ll 

ULX brcaks and subsidies during 20U7 ~"erngcd $0.2337 per kWh ofdeclricit)' produced by" ind 

during 2007,1 fowe\'cr, that E]A rel"J11 undcm.tinlaK...t Ihc lrue cost oflbe tll.~ brc:,ks and 

subsidie.l for wind IJ,;)cause il: 

o Foiled to ta~~ inlo IICcoum eilher the VAlue ofS·ycnr double dedining bal~nce al:CeICmIN 

dcpre~istion (descrilJ,;)d below) Lhal is 3,."ibblc l'ot"wind lam," equipment. but nO! 

available for t'l'li~bk generating units. 

o Did not cover. Qf~Qurse. o\'i.'r 51 hillion in addiLlonal tax brcaks and subsidies for wind 

energy aw"rdcd in 1009 by lhe US IXpanmc-uiSofEIlergy and Treasury la"thori7.cd by 

"arious ··Stimulus·· mcasurcs)~lIcgedl) lo c"'~ti:jOM in Ihe US.AS indic3t~'<.l bclow. a 

sil!ltlif,callt share ofthcse awards Wtre fot proje,'ts ownC{! by foreiw' cnt;tic5, covcn.'<J 

equipment ,nanufacll1r<'d in ()\h~ countri~. or now~d to owner.; of "wind f3rm'~ were 

already under construction or completed. 

D [lid 1101 eo\,etSlftle and loeal IU breaks 311d sub~idies for "wind fa",," OWIICrs, 
235 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.158

Among Ihe many fW<''flII, ~11I1~ and local lax breaks and subsidi<"S Ihnl reduce "WM fimn" 

di.'vclopl:r{ and own~r~' CUSIS - "'hil~ shinin~ IhUliC ClHIS 10 ordinary [:lXJI'~~"'11l und C!Cl.1ri,' 

CUSIOI1lOTS - lin: Ihe (011.)",i08: 

A, fl'tic llIlln brcaks and ub id ics. 

J, Accciernled [)cp(!.'Cialion ("MeISS), Nearly HlIlhe capilal CO;;I ala ",,'ind lorn," 

- whelh"r financt.'!I win, equily or debl - can t,., ...... "'<.,,~,,:d IhrouJ:l1 deduction,; 

from olh~~wi c lB.' able i"cum~ using,5-y"ar double declining baJa.,ce 8<-.:eI~raJ..d 

dCp"-'Ci~tio" is,~ r.-!OO%Do). n,ese d"dllCliollS from laxable iOCQm~ .wue" lax 

liabilily auhc o"ncr's marg.inal !locralC. usuall;. $35 for eru;h $100 deductioll. All 

oflbe clj!!iblc capital '<:>Sl can be wrille" oITC'recovered") over6tax yean; al Ihe 

follO\'oing rllles - illll,lrnled wilh $1 00,000,000 in digihle L.lpilUI ro,l: 

Tax Ye(l("l.olTnrjlal invesullcm AmiJunt 

Further rcduction in income tax 

li~hilit y tinoodillnn tn PTCl 

lSi 2()OA, $20,000,000 .. 7,000,000 

2nd J2% 532,000,01)0 511,200,000 

3 rt! 19,2" S I9,200,OOO ~ 6,720,000 

"h U2~t S I1.520,OOO ~ 4,031,000 

5th 11.52~o SII,520.000 S4,on.oon 

"h ~.7M" ~ ~,7(-iO ,O([O ,HOI6!!Q2 

TOlals 100% 5 100,000,000 5J5,OOO,OOO 

1. O!~ Ihatlhesc d~duc\ion.~ from Olherwi"" taxable income and rrom tax liabili! y 

could be mhn regardles;; I)fwhelh~r the $ 100 million 'wind !inm" investm""t is 

Hnallced Wilh Ikbt or~'quit ~·, 

3, NUle ~IS!I !hal, in add\!ion tn!he IUnher ",duct;on in IIIX liability, dli~ g"n~rous 

:K'Celcr!llC1i depreciation deduction for fedcrnl ,n';OI11<: ta ~ pll~ ha~ tWO OIher 

huge b.!n~lits : spo.'Ciiically: 

a. Prompl reco""ry ofail lhc owner's e<;juityin",-'Slnlcnl. Quite likely, th. 

equity itlWstmcnl by "wind farm" O"nL'I'S and Itldr "ta ~ panll"rs" WQuid 

b.! 110 more thall 30% with the remaining borrowed 10 red~cc its cost, As 

II\{: Wille allow $hows. all orlhe <"<)uiIY in veslm~I!I would I),: r«O\~T~ thM! 

depn. ... iution dcducli(>()s ~3rly in lhe ,o;eo;<)nd tlllC ycar ~I)d in 1= than 1 Y(1lr 

irlhe pmjom bcgil1~ o)li:!"/Ilin& lale in the tlrsl lax y~-ar, Wilh no remaining 

e<;juity inl'<-'f>lmcnt.lhc owners' return on e<;juity"oold be .,finite. 

b. A larg~ intcrest·fret 10811. rhc depreciation deduction cnnlinu~ even 

lhou&il a ll c<juilY h3~ Ix...,n rL-co '~n::d. Thns, in cfl~..,t, the 0,,,,,,111 ,,-"Cci,c 

an ime ... "'1 1m lo:m., connesy of US taxpa~ crs for all amoom eqU3110 the 

debt financi,,!!. 

4, Wind Produ~liOj ' Ta, Credil IPTC1, A "wind fann"nwlli'r is eligibic for p Wind 

PTe, currently $0.021 per kiltl'Ml1l-huurjkWh). ror eleclricilY prndun-d during 

the- lSI 10 y.".,.,. ofOpcr~tioll, The Il~W expIration dat~ ibr 10" I'TC was eXlended 
236 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.159

10 Dc:.:emlwr 31,20 11. If the il lustrative $1 OI)'11illioll pmject had lUrtJin~ with 

the combined. '·rntctl" cap~ejty 01" 50 megaw3l1S IMW) !lnd they o~rn ctl at a 

30% cllpacity f.~t\lr, the turbint.-s Ilouid prutlm."t: 131,400,000 kWh of cil'Ctncit)' 

cueh YCRr, the owners would rtccj~e 3 t3""l"<"\Iil \D direcl deduction (,lmltDX 

liabilily) of$2,759.400 pcr year duri,,~ Ihe Ilrsl 10 )',,,,rs Df openniDn, Ihus 

reducing fctler.1I ir\tDI1lC 13)( liability b) S27 S9 ,OOO OVer 10 years. 

5. I ·t. ·'Stimulus" ICJl:isl~lion ena.::K'll during 200S and 

il ·i n in\"cstmenllax credit (i.e .. I direct 

dctluctiml from laxcsOIherwis<' duc~ cquallo 30% Dfcapital costs in lieu mIne 

I'roduNion Ta~ Credit. If Iil<' "wind f:lnll'· owner docs n\ll have sutlicient lax 

liJbitity 1<) use :111 orlhe tTC d~duclion. unused amoulllS can be l·arried f()fflard 

and deducted in future y.:al""S. Thi~ Ia.~ brenk is 31'Uilablc for proji:i:ts pinero in 

sef\liec dtiri,,!!2!11l<) and 101 0 UI" wh~rc(;(}nstru<:tio n ha~ stancd by :WI 0 and 

placed in ~yic~ befure the ~nd of 2012. Tin· "cwly 3ulhuriu-.i fTC has 

su]):o;t:mtlallx'l1elils for '." ind limll·' o"ners eompn...:d to the PTC b«-au.se (j) the 

bend;t 18 available immediately ,..~ther than ovcr a 10_ ycar pt'riQd lind (ii) th~ 

benefil I. based on l':lpitnl COSt and. th~'l"Clb,..,. is available regardless oflhe. 

amount of ck>dricity prutlucc'(\ by the ··wind fam,." 

6. Cash Gny" in Lil'U oflTe. ·1111.' genl'rousl008-1009 ·'stimulus·'lcgislutionalso 

m:lde ·'wind f~nn-· tlevelojlelS eligihle for Ihe ITC In elecllo rtte've n c-ash gmm 

of equal Vlllu~ from th~ US Treasury i .. lieu oflhc ITC. OIlring September W()9, 

The US Dcpanmc"11tsurTr~asory and Energy awank-.i grnnts fDr ~wind famt'· 

pmjOCl~ tOlalin!: Ubolll S9O<J million. 5546 l11illi(lIl Of l1~arlyf>O'Y. nfthe IOI~lwa, 

3wardt-.i to the Spain-based lirm. lbcrdrola. The Ibcrtlrol3 ('EO b3~ indicaled lbat 

hI! e:-:pccls to win another .$470 m;lIi(1I1 in gran(~ from Tn':lSuryand DOE during 

2010. C'realingjobs WIIS, allegedly, n key reas,)n for the 57&7 hillion "$tim~lus" 

Il.'gjslalion hut mOSI of··wind farm" proj<'CI5 inciudM in Ihe 51 billion in gronts 

all"a.nled by Treasury and DOt: 011 September 1 and Scptembe 2~. 2009. ,,·cre for 

(II) pmJcel~ that "c...: nlreac.ly CUn1plcted, ncarly completed oralrelldy fully 

comm;ucd 11'1 by the I!fl1Il1 n:<:ipieJ11S, (b) were ~oippcd with turbint'S 

mal1ufaetured primarilyill olh~r coumrie-s, and (c) were owned by fo..-ign ·bas;,t! 

cm11paJ1i~..,.. Furthenno...:. '·wind fann"· ",sull in very f"w ""w jobs, e~rtl!inly 

f ... " ·cr than would bo;: CI<':u<'1I by Similar in\" ... sunl~lIS in reliable gem.·ralinj!.unilS 

powered by trudiliollul energy s<1un::C!;. (CleM!),. any cloim thm tlte huge 

I.'XrMdilure orla" dollars Ihll\ ~l~ g •• cn to o"lJers <,If'·"'ind farms'· woul4 

provid ... signiticmnj(,b lIlId ~1lrl()lnil· bctlclit~ in Ihe US cannOI be m~ell 

serIously.) 

7. I..OO"Clled r£t!uirell1em< lOr t~x brcak'lUld subsidk'S. The S:"11~ $timulu$ 

kJ.\islmk>n ~Iso rela.wd a number ofrestnclionson Ihal had applied IU Ihe lal( 

bn:lIk~ and ~u]):O;idics . A "':jlOn = ently rekased by DOE's Law"':lIe ... Bcn.cky 

National '·I..3oo"'lor)" ~L Nt_, white obj~~tiort:lhle in ""ver:ll r""I"'cl< - p",.ides 

a usdnl snmmarYDf ~encrou~ Ia.~ breaks and subsidies 1I0W ;I·ailable for "wind 

fnnns:' 

8. llS Pi;P:V!l1lcUl A!!,ricu!lurcGrdnb~ While nOI t3rgel n~ larg~ <"OJTHncn·i3I''',ind 

fanus,'· a ~micty <tfrcncwable energy pr(1(htClion inCenli\es. grJllIs. loans, and 
237 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.160

low ;n!eresl b.)nd nnangenwnll;nrc available for <'eMin wind enerJ;Y projcc!s. 

The~ nr~ also slimmarll.ed in Ihe LBNL ""PO" ~ik>d awve. Su,lIe ofllu.'S<' 

arrangeml1115 3re~ v3il~bk for I~rl:\e ",itld lurbine projC(IS o"n~"d by Rural 

Elccuic ~ooperuli"es and publk powcrorymizlllions o,,"ncd by Siale and loall 

go .... 'mmcnls. 

9. !>Of I,Q31\ !'rm:rn'lJ. II DOl! In~n progrom i"lend~'(! 10 CIloourage Ihe 

rnmmcrciali7-'ltion of ··;nI\Qvative ~"l(rg y tc~hl1olngles·· .... 3;; l1/"5t 3Ulhori?cd hy 

lite Encrgy P"licy ,\ ct of2005 :lttd then was sub~lantially e~pandcd by the 

Am .... ican Recowry a!ld R~investtnenlAcl of2009. Billions in l(>3f)s and 1000n 

guarantees afC available for various renewable ~nef\lY (including wind) and 

cnerJ!,.vefficicncy projl'<;tS. One wind projecl (Nordic Windpower) has ~n 

approved via this pntltf7lm for a $16 million 100Ln . Final regulations for Ihis DOE 

program "'''''' is~ul'<l nn Dc<:':mbcr 7, 2009. 

10. Add'tjonal US DeR"rtmenl ufEnergy (f)OEt Subsidies. n,,, DOE provides 

!;e,-.:rol additional suhsidk~to the. wind industry, all !inall~d wilh ta~ dollar.<. 

inchuling, 

a, Some $60 to SI ()O n,iIlion peT year for "wind CtICrg.y R&D" CQntra~lii and 

grams. 

b. Add iti on~1 millions in t:I~pa)CI' dollars for ··swdics,'· ·'3nal~S<."':· 

'"TepMS:' and mher wind em:rJ;Y prilmo!iona! in formation p/"tp;lred by (>f 

for OOI!·s Office of Ener£.~ Eflicicneyand Renewable Ene rgy (OOEEERl!), DOE's Natjt'Oa! Encrgy ··Labordwries:· stmcC1wrgy t,mec.'>, and 

olher DO ~ Ctliltractor.< and i;mnlcn. 

While the Nati onal "!aoornlorics" undu"hl~dIYp"rfon" some objecli"" 

"'ork Ihal ~ based Qn ~icntific ntClhod~ and cngim-eringprinciplc'S. much 

oft!", inf,)nn3tion issued hy tt",sc ,)rganiz;ttion5Ihm deuls with ,,"'ind 

ener!:)' is d('1l1onSlrobly biase<.!. misk,uJing. and e"en fhlse. These 

"laborJlory'" 1Il.1 ivilir-s arc mt»'c akin to thos<: ~'arried uul by lrude 

associations thmt typically pro vide onc.-sidNi lnl,)fmDlloll (or propaganda) 

lhal is used lu innucnce lh~ public, ",wia and governmenl omcial •. 

e, More Ia.~pa~cr dollars nO"'ing though DOF.. and NREL to $Upp(>rt ~nriou~ 

~tatc guvernment " 'ind promotional ~li\'itie~ and 10 iilate """'ind working 

groups.'· consisting of w,nd 'nd"~try rcpresemativcs and Olher wind 

encrgyadvQc31es (bul seldOm, if ever, include reprcsem31;~es Iron! c,tiz~'I1 

groups opposed 10 "Wind f~rrn s" ) th~t work In suppon of wlnd Industry 

objl'(:live~. 

II, M~ndal<l'\1 usc of·'r~newahlc" ener~}' by I'ed~rol Ag~ncjes, 'Ilte Energy Policy 

Ael M2oo5 ri:<Juit\.'S Ihe follnwing amounls i'tft,)ial clectricllrt"l1nsum~'d by the 

Fed,,~,1 OoVt:nttl1cnllO co,ne from rcnewablecuergy: 

o Nn cs.~ tltJIl 3% in ilscul YClll"l' 2007-2009 

o Nu k-ss Ih~1l 5~\ in tiscal c~n;2010.20L l 

o !'fn less than 7SY. ;n fi>eal year 201) and Ihcrcafl(r 

I'residl'lllial E.·u,(:uliveOrd~r 13423, issu~'d in Jm1llary2007. requires lliat at k'llst 

one--halfof!he re41uired electrici!), from rencwohk cnergyoome fmm "!lC-W 
238 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.161

rcncw~ble sources." In faCl, In~lch of the cl~ctricity fmm "renewabl:en~rll)'~ 

purdlaJled by fe!kNlI agencies ~'(lI1I S from II ind lurbines. Uk~ IIlBn(b[ed Sllll<" 

"gn:t:n <'ncrll)" programs. lhis fcd~ral n:qLlin:m~n1 in em:el rcquim Ihm fcdcrul 

BgCIICi.:-5 p~y premium price:; for part pfth'" ~1C(:tricityth"'y use, thlE crealing a 

~Il'-..,i"l, high pric<:<l market [hal is available 10 "wind fan liS." The higher_Ihan< 

m:lrkCI premiums lhal mll~1 1:><' p3id fpr dN:1ricily from wind a", an<t1her subsidy 

for the .... ind industry. The higher pric~'S a", paid !r.)m mgcncy approprialions 

which 3'" financ~-dlhrough la:>: dollars. 

n. "uhtic land. maMgcd by lhe US Bure~u of LaM Man.1ccmeul and US Forest 

Service IJolh Jgencies have policies Jud regublions deaJillg with Ihe conSlruction 

of"wind farms" ond re1<ucd trall~11lis.~iun f;lcililies ()fl public lands 111.11 they 

marmt,'e. More lhan JOn MW of"ind turbin«cAl"'cily is 001" loc~loo on BLMman~gcd 1l1li<.1 •. Typically. rents charl:'~<.1 b~' a u .. , <111<.1 USI'S are lo"~r thull Ihose 

ci>aTj!oo for eOillpilrab1c private land~ , 

13. tao( hr£;Ib and sub§idjc., [m "wind fann" L"'vipmcnl [I"\IW["",1\I1];1}. Qlle 2()()9 

oconomic "~l in\Ulu 5" me'~sull.''''Slnblish<'I:l n new $2.3 billion in V<'"SI "I<~ll tas ='I:lit 

"to enco\ll'a£~ th~ <.Icvdopm ... nl ora U,S.·ba, .. 'I:l rencw:lbl" cnert!)' manuf:l<:lur,ng 

Sl.'Clor. In any UL~3bll' yc~r, Ihl! inl'cstmcn!!ax el<.odit is cquullo 3~ o[the 

4Wllified im'cSlmcO! rt'quiml for U[I f.l[1\'nnccd eo,'Tg)' project 111.11 c5wblishcs, 1\'-

equips Or expands a manufllClltn'nl! facilily lbat produces , .... 80m~(hillg 

<'OI1,i .. kn.'I:l by Ihe US Tre"suryand Energy Dcp;1Mments (IS an cncrg.y efficiency, 

conservation, or """,w~bje en£'"Tgy l.-.,hn.:>lugy, including wind CIlI'r¥)'. fhe 

applicaliun process cOl1<.1ucl<:<l durin); the fall uf 2009 "'.LlI[i.'<I ,n the seleclion of 

dozeM ofproject~ that -:Jppmcl1llyexwJUSIN 1M- 52.} billi(m UlrthoriZ:llion. 

I'mjc.::ts selN:te<.l for this new t~x break il1dud~d J3 pmj~c's involving wind 

lurbines. bearings. lowers, and blnd .. 'S IOlalinJ; more tI~1n $lS(HlOO,OOO. Treasury 

and DOE. h3\'e aJ1!K1Un~c<.llllal flO mon: ~pplic3lions are being ocl'cpu:d fur this 

progTllm. However, Pn.'Sidcnfs FY 20 II budget n:qll'-'S15 Dn additional S5 billion 

fur Ihe program. 

B. Slatc lax bruks yml tlb idi" for ~w ind rllrm~ ,," nN'S , Many ~le g""enlnl~nls have 

adopt~od !*rn:n'lUS tas bn::a~s and subsidies tMl berl<!lit ""iOO lr.rm"' d~vdof'Cr.l an..! 

ow~rs addi,,!! more tu 111~ C031S IMI ar~ shilk-d from devctOV"f'>and owners 10 

ordin3ry taXpa)crSllnd ell'Clriccu>lOnlCfll 3nd "hidden" in Ihdr lax bills and momh!}' 

ele-elricbills, The sfl""',lic t!IX bn:aks and SUbsidic$ v3r'l widel}' antons, Sla ~S. InfQnll3ti(ln 

for each stale cun ~ found al 3 Ut)(Pl'~ er iioanced w~b sit~, Datab;c;e of St~te hlCet1lil''', 

for Rcnewables& Ellkieney, II'ww,dsin:usu,org, Among the scor..'S of~illtcmives"lor 

in<.lll"rial sCllI~ "wind fanns" prov;<J<.o<.l b~ al leasl une and "ften more sIal.." III'" 

I. S,ate production tax creditS (e.g .• Iowa) 

1. Ex~~n plions fmm ~II or part fpropertyta.~es (e.g., 10\\", West Vi'linin, New 

Yurk~ 

J. Artifitiall} loll' Bli~smCn1S Ofl win<! !urbin~'S (e.g.. Illinoi~) 

4. Exemplitms from sales (8)( un win<.l faml~ ("<lu;pmcnl and m3("ri~Js (e.!!: .• 

MinllesQ!a) 

5. Low-Cnsllo<1l1S (e.g., indu.slrial tIe>'elopment bon<.ls\ 
239 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.162

6. Renewable I'ortfo!io StOndBrd~ (RPS) dlOltypii:allypr~ribcd .some percentage 

ora dimibulilm utility's .<.IICll must ~O\1S'SI of .-..ieclr'elly produced from wind or 

:;ome Oilier "renewable' encrgy oouTc" laboul 20 SW.IL~I. 

7. Purchases of, or markets fllr, "~en cm:rgy" cenl ,cat~eamcd by produccrs of 

eleetricily fmm wind (q;., asSlldm.et\ll). 

8. Gr~"""11 tn~ ~ proi'!'"dm~ by clcciric distribution comp nie~ tim offer Ck'<.1riclty 

",,)( n~ed from" Ind at a premium prie ~ - elth~r rc\juired or enc.lllrJged by SlntC 

PUC or iegisJJwrc (many ,Iales). 

9. Payments for "green energy 8t1rib"tc5~ usinG. revcnueeolk-C1w via a "syslems 

benel!t eharg~" (effectively; n lax) added to eleclrle bills (e.g.. Nell' York). 

10. Higltcr allowed caming~ for eleelri,' uti lily investmems in rt'llcwabie ener~v 

fac lili s (c,t; .. Virginia) 

AI leasl /bur uflhe above SUlle re~nremenlS l6, 1, K alld Q) have.lllc df""t ofC"-"Jt>Il!;a 

~peciall\l rh( "here oWnCn; or"wind f3mls":md mhl". n:nc"Bbtc energy facilitie. COn 

sell thelre!(-clricily al above nmr ... t pric<'S.. Of course, Ih<' clectricily actually USL-d by 

cuslOoners [l'lying eXira for "green" dC<'triei!) is highly unlikelY ln be produced by II 

"'",newabl,,"' energy I',cility. 'n ,,, owners ~an .... ..., iv~ Ihe hiP,er •• bove marketl'riccs for 

lite elct:lricilylhcy prodUl .... even ifthdr fudlilics:lre nul producin~ ~I Ihe lime the 

cI~tricilY is b.:illJ; "sed. Utilities' "gn:cn energy'" progmmsare !leldnm self~pponing. 

That i~, the amolonls collected 10 premiulHs from eu'lumers who as.rce 10 p~y cMrJ ~I\: 

1101 ~u lc III l'uvcr(i) ihe high~ costs uflhe ~gn.'tm ~lIc gy" and (ii\ Ihe u(;lily's COSt 

ofndmll1islcril1ll1h~ "'1!f\.'CIl" progmm. C()l;ts not rc.."Ocerc<l Imm I'n.:onium I'a)~ncntsart 

me",I)' passed along 10 all of,hc utility's cUStom""" 

C. Local gn,·.,rQmenl llnd C<'IInmnit deHlopmcnt agency la \ breaks and 

ub idi . Som~ ItlClli.;ovenH"C"1113111' <"COllom,,, dev~lopn](."111 ufllc'.1ls believ~ Ihal 

construction of "wind limns" in !heir 3"'U3 will provide new jobs and oliter L't:onomic 

benefits, ActuJI b;;ncfits tend to be much icss than Dssul1l.:d by "wind fann" d"wtopo!l'S 

and local officials. "unher. (j,e cOlt ofany.uch bcnelits is, in one \l'a)' or 31l0ther, shifi c-d 

'0 ordinary axpayl'r~ and/or ~I\:(·tric cu~!Oon~rs. There i, no readilyaYdllnblc, 

compr ... hC~I~i, c sourc .... "f,nf,'mtaIIOn fin 11ltn11J' pnwide<i Ill' bre"ks and suMidies. 

Howe\'cr. cxampl~ include: 

I. Low-cost loans or bond f'lIan~ llg. Coumy or rl'l'iQnnl"cconomic devetop,"cm 

aullmrillcs" may hnvc authority 10 on"r low cost or lntcrcst tree loons or bond 

f,nancing I,hich siguificamly reduce a "wind farm" o"'ocr', c3pilal cost. 

1. Acceptance of [l'lymcllIs in lieu of taxes. Of PI LOTs. For example. local 

!lo"Mune,n and school board omcinls in some to,,'m; in New Ymk <lttCpl 

Pt OT~ rfl~n ",viml rann"'owners alld JI.i"t' up their slatul0T)' aUlhority to 

override n sIPtc-aulhorizcdc~c."ptlon frunl propel'll' laxe~. P1LOT5 are ~llrn~livc 

10 loc~1 omci~ls ~ca",c they lend In be ~frum.e",tl"aded"; thm is, they I'f't)virlc 

,ignifirant early hcncfits Ihat loan he prcs.;-med to Ipcul Voters as nn oppOrtunity 

for ncar lenn r~...Jucliolls in homc-tlwncrs' pmpcrty laws. n"W f,,,, trudtior olher 

l'quipmcm, rt',turnt;utl of historic lIuildings. or ulher measures thm e:m't be 

IlCcomlnllllated in local hlldgel5 wilnoul rnis,ng taws. For 10C31 poliliciall,nnd 
240 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.163

6!i, .. "", ~ ma),~ppe:!r\1) 1>0 J;~ntn)utI !;ills' I'!LOTs "'" a1tr:IC!i,~!o "w;OId 

farm~ ow~'" because lheir 00>1 oVer lilt as~ulnN I1f~ onhe·v.lod form".", 

much I"," Ib"" I"'jio~ l""p<:rI)"l.xe. and 10., "from·coo" b.mcr.!> a ... "nel' 

helpful in pining suppon f", rmj«"', frOnl Cml'2ll' '<WIn I)jfocials an<!. pqhaf!S. 

oili'l;<l\l .. h" do nOllake inlo a<"<"1)unl Ih.lo ........ loo1'.nn beMr."orimpac\S, 

hm" ("~IW." in4-wAICh.llf& 4'"(lmol''' 'l fl!I:Sg..<H1r·~I«'lri.il~·fr<>m-w'od·;;'-"IwaYllulllkn'Slilll.IN·and-'lf-yall,,~is-elwUH'"ll\-'''li'lIPJNr 

luenO!;"e IU 10 ..... " . ror Mw,nd ~ncn:\'w Q!'nll! 141' . nd Shell In "o d I""jog bundrrd. or 

",illion. in ( .. I ... I _n<l <I." I~" ... 

llP and Sh.1l ar. abl~ 10 m~. ~dl'l1nlage of al leasl lin wry ge"erous fed .... l and stale w break:; 

and " ... ""idi .. r,,, wind cnl"fllvand be able"'..,;c ,I>< ... ,:ox bn.":l~S 10 .. uid ~l'illg federal and 

"Ial. curl'0,.,IIC i""'1/110 la, (III hu,KlretlJ; ufn,illio"" in "roll" including pron, (rum Ihcir"il. 

De1ailoo infonnalio" Pn lhe 1'1'0 CQIJlp.'ln; .... filUl/lCial J'lualiPn wQuld br r.eedttl 10 mn);f prc~;,;., 

",1;m8Ieo .,fthe .mounl Mincom. ,h.1 each comp'''Y will II< oble 10 sho ll .. fro", feder.1 and 

Mill~ CO<pO<lUC 1"Ci>m~ :t~~, Ilo" ... , 'tr, rouglt ts!imatO':$ of 'axes \~a, the coll1 J1'1Oic"S would be able 

1o ,""oi.! <In be madt byma~ln~. fe" Nn".,,,,aliw&Uunlplion,. '-o ~impli fYI~ ""kulatiolls. 

the numher!; bel<1"" igl,me or aoo Shell"s existing proje<:t. and i",'ea<! one«ly ",,,,,me tnat to f 

~h C()!npolnyw;U in 2009 brI~g ,n'~ opo/'l'll,ioo "wind fan(ls" with a clpllCi'yoi 

1.000 MW. (b) I~ ~ Ihe cupil.al COSI 0r,I ... proj""l~ will"", S:>,O()I) prr kilo ... , u (~W ofcopacity, 

tel tI"" Ihey "ill opcrnLe "it" ..,onnual capacily fllC10r I.il of 30%. and M) ,h.1 Coog,r,,"s will 

II/Xwe 10 w,OId ,!\dusl,), lobbyists and e~l""d thc exuti"g ",,,,,,, ... bk energ:.' "ProduclionTax 

C",diC' bo)"",1 its cu"",u [)cccmber J I. lOOK expi"'tioo dale (at a" ""';,,'''od """t of '""orJl 

billll)n dollarsl, f~th<"comr""yhllild$IWi"~"" ",,,,,h wind capaci,y!i,c •. 2,000 MW). 11M: ta_ 

Jx.,ab .. "d sub/lfdies would be Iwitt I~ tsllmot<d bolow. 

I. .' 0<1 ... 1 ProIlut ,;on Tn errol! for tlt<'lr iri,), rronl wind (f'Te). hlSt, BI' Md Shell would 

each "",oi,. Ih.lw«,1 ,,'inti PTC. curJo"1IySO.02 PC' kil .,"all·hcur(kWh l;"-~Ie<:tric;ly 

produced d ..... inlllhe lSI I () ye"", u( ope<s'ion. CU"gn:" is txpt<:,.d 10 o:<,c "tI Ihi. I.~ sholtc, 

bo.'yofld II. eurrrot Dec.:mt...r ~ 1, 2008., "",,!mllon d~I •. El)' 110001f. Ih;~ t.~ <"redil .... ould redu« 

each eomp""{~ (ode",l '",:olll.,ax llabilil),""« 10 yc~", by $526.100.000. [l'ii) dTe<:liwly 

shllllll~ ,1m< ;lmo"," or,,,-,, burd,~, 10 13,XI"'YCI'$ "ho ~<)J\ '1 enjoy l l>th la' <he lters 

1. Acool ... , .. , I>cl'l"fti~linn , s...c""d, cach oil company·. (i. •. , BP and Sh.II) S2 billi oo (vlH(;n 

..... ·ind farro" ""ri'al ;1"'~lm.n!S " ould qu"lif~ fur lhe ne«<lingJ)' gcnclO<lJ 5-)/<,"" dQUble 

de.llinin/!.bal."" • ...,,,,,I<raleddcprc'Clarlon for frd.",II""",l'IC I .... ru~. [i ~1 Au" , .. l" ! lilat 

S2 b;liion i. the full cosl of each ."mpan),·' " "ind (""",," in 2009. 10., r"lIo",i"1; amuu" ... oo"ltI 

br dwuclcd from .~eh ooml"'OY"S O!~. r"' is.' 1:.~abJ. 'OCOOIO ""J JUrlhor red" •• each complln),'$ 

f.dNllI ;n(\lm~ 1,,'li~bil ly; sp.:citically; 

",""c1l,," (,(Om 1", • .,le in('O"'~ 

1'., " u r·,r, pr C" ril., i", OSln, on IAm,,",,1 

Funhc' ~ucli n in r .. I.",1 in.nol. 

tn li. bili!y Ii" od,iil ion to> PTC) 
241 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.164

I,t ::!()% S4OO.000,OOO $140,(lO(J,OOO 

2nd 32% $640,000,000 sn~.ooo.ooo 

)ru 19.2% S38.\,OOO,O()O SI34AOO,OOO 

4th 11,52% $230AOO,()(l(I S 80,b.\O,OIIO 

51h 11,52% S::!30,400,()()() $ 8O,MO,llOO ,," ).76% ~11~,fOO,O()O i 40,):20,000 

T()tals 1110% S2,(1OO,0IKl.(I(I)S700,IHIO,OIIO 

Note that thcsc deduCtions from oth,-rwisc.,:,xab1c i"co'llc ~l1d from fcdcr~1 inC{l'm' lax liability 

cuuld be t:lkcn regardll:.'>~ .,fwhl:thl'1' the "wil)<l f~nn" jnwSlln~m is tin.1I1CC'<i wilh <lcMOr'''Iuily, 

[xl So, ifencl, company "CfC In pl'l .Ip only S I billion ofc<juilY ~nd finance thl:nlhcr SI billinn 

with borrowing (10 hold <lown the C{lSI of their capiLa I iove,uuenl). the deductioa, fmn, income 

:m<l n.-.JUCl'" la~ liability woul<lstill be based on the full 52 billionshuwn in the wbl,' atlQvc, 

Nme also 1M!. in additlontn Ihe tunh~r red~tion in lax liability, this l!ctlerous aceclcMed 

depn."Cimion deduction IQr fedc",1 income lll.~ purposcs has twO other hu!;c benefil'; SJl<-'Cjficalty: 

ii, Pro/llPI rl!C'(ll'l!f')' qf ~'(I I camptl/I)" s equity {m'4I"',' tiI. Th~ cx(unplc abOl'c, conserva tively 

assumes Ihallhe cnlire "wind f~nt1~ C'dpilal iUVl:SlOlCm would be ''quily, ralher tl1;l0 debt Iflhc 

equily invtitment ,,"'as only halflhecapilal (051 and the ri:Olaimi<'r oorrowcd. {i,e" S I billion), 

!he lablc above shows Ihal Ill' and Shell would each rccmw!hrouWt d~pr~'Ciali[l" dcd~clio"Ji all 

orils equily inve-sunent in less lhan 2 years and injust OWl' I yl"Jr ifther!\)jt'Cll~l begin 

opt'rlIlion laic in Ihe t1rsl lax year. Wilh no remainingcqui'l)' iOVll!;lmcnt.l":,ch comp<Ul) 's relurn 

on equity would be infinite. 

h. A 11II'gI! 11I! -r~lf~I!f! 10011. 11,~ deprccialioll dl-duction co,uinllC' c'clIllw,,~h alll'ijuily has 

!)a,n rceoverro. 1ltus. ellch cQmpillly would, in ell"",,!. hc mcivingan inlefC$\ r~c loon. c<XIlluy 

of US \1I ~p:lYCrs for all amount equ:tllO IhccdCb! financing. In Ihe unlike case WI cilhcr company 

Willi uuable to IJ$I.' a lllhc IJK de<.!Ul:liolls in 2009, pall oflhc allowable deduction could be 

deterred or. alternalively, Sl:hcmes arc available \0 "sell" ta~ cn.-dits 10 o(her firtHS thaI have la~ 

~bjlili« Ihal lftey wish 10 avoid. 

3. An.iding Sla te C" q .nr,lt Tun. Ta~ br~'llks for "",;nd tam,s" ~re nnt limiled to 1i'k)SC 

provide<.! by Ihe fClkral gpvcmmcll1. Mosl SImes alSQ allow II corpo"'lion 10 take advanUlgc of 5· 

)'1'ar dO\lble dec:linins I:oalunre accelemtcd depret illiion dOOtICliOilS from Qth"rwl,.., ta ~3ble 

COrporalC income. Tllcrefim:. cnd, compun),could be nt>ic 10 Ink .. IkductinllS like llwse ~hi}wl1 

above when cnkulalins their~talc corpo",tc lax Ii~bilil)'. A~s.,",in!,l." 6.5~ "18le corpor~te talC 

ral". each cQ!"IJaQY'~ $1 billion ~wind fan,," capiLaI ;",,,,,I/II.,,,t would permil the rollnwing 

dc'dllClions from stme Icvcimx(lblc incolU"ulld red"ctions in each oil COtl pal1) ~ la ~ liabilit~: 

'ledUCli"" from lU'at>lc ;nf"m., 

Ta~ "en% ofC_I)ital inn'51mcntAmoun t 

lSi 20"'" i400.000.000 

2t1d 32% 5640.000.000 

Rfll uCli .. " in St.,,- Co )o l~ 

t a\' tj ~b il;l y (~n ''' i'' g 6.5% e) 

$ 26.000.000 

$ 41.600,(100 
242 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.165

3,d 19,1% $384.000.000 S24.%1'I.000 

"" 11 32~' $230,4110,000 S 14,976,000 

5th 11 .52% 5230.400,000 .Ii 14.976.00U 

"" S.76% $,II~~~,OOO s: 7,4Hg,OOIJ 

Tot:!ls 100% $2.000.000,00)$130,000.000 

J. Stale I'rudutlillll Ta. Cr€'<lilS Ilr S"b ;di ~.! ror kWi nd Farm" O" ~...-. 5.":=1 SIDles 03"C 

adopted their own "pr«luction '8)( credits," and olher Slal~s provide II direct subsidy. Irill' or 

Shell were [0 bllild Ih<:ir "wind F..rms'· in .s1:l!l"5 "';11l such subsidk's Ihe}' ... ,ould (njoy s1Hl 

unoth"r a~ brca~ or incom~ ~lre;lm, SWle prQgrelllS vury widely. If tt.;, u\.x brftl~ Dr sub>lKly "en' 

wonh SIS per mcgo1woll-hQlIr(MWh) of ~lcelricilY producl'" whi~h is equal to SO.015 cerns 

p;;r kWh. Ih~ lax brea); or subsidy would hi: S39,420,II00 pt:, yc~r and $394,420,000 OVcr 10 

years.lxi] 

S. r Rcncn a hlr J'orlfolioSlan,lard (RI'S). In addili,}I1ln the ntxwc taX hr-,;a~s and 

subsidies. severtll Sl:Ites h3\'e virtUIIlly lISSurcd big prof,l,> for ""ind fnrm" owners- b~ requiring 

tloat 3 yowing I"'rccnlagcofthe electrici ~ :<old in their SWt~ must cQmc from "re"e"able" 

energy ..... hich. in m051 sta1l'S is 110W e~pt'CK'd to be "'os!!y (rom wind. By dictati,,!: that a large 

porlion of l~ricity mUSI be prod~~ from "reneW"~ble~ ~rgy, o"'ners offaci!iti,'S that 

produ.;:~ <'itttricity from wind mul otllcr"rcnc\\'Dbles~ 3rt likely to beable to (kmand higher 

pric~g for their electricity than would be paid under MIll.ni mark~t conditions, ]~ highi:rcusts 

Qrdtttricity l'n.lm tene"'ablo:s that dcctric di~tributjo" ~'Ot"P"!lk 5 ~'" forced to pay are pasSl><i 

:llong to ekctrie eustom~rs in thl:ir nll/mhly bills. 

6, Other Tn Bru!.;, _"d S ubsidits. "Wind Fanos" enjoy 3 varicty of ol~r fc!krol and st~lC 

financial. man.:ct and ~gul3tOry subsidies. For ~mnplc, in some Slates. "wind Fan ns" are 

eligi!.>le for exemption from 011 or a part of their rrof)<'rIy ttI.\e$ or :;all'S taxes (1(1 wind farm 

C't!uipm~m. In >omc r~gions "wind farm" ownen; ",ceiw 3 VMiety ofregu!atol)'subsidi<'S; ~.g., 

lx>iol!.3warded an m1ificially high "CBpilcity credif' b}' ~o Imll-pendent System Operator (ISO). or 

being e.,cu,,'<! lmm !",,,"hi,,,, for nul ddi,erin~ d~c ri~;tl' to:m electric wid at liJe time cHlled for 

ill eontrJcts. III S(III1~ SUItes ie.J!., T ~}las) , St81~ 11tility c(~nlllissiuns an' counting ~n the 

con5tntction ortnm~mi$ion liTl<:S tu !i1.',,'e "win<l farm.s" lhal will rust billion~ or dollan, with 1m: 

C()51S pa<!;ed olong to el ctriccustl}ll1~rs in tll~ir ",onth!y bills. 

Conclu.ions 

Ordinary t;t.~pa} ers ore jusliti.1bly repulsed b}' having to bear the ~'L>{ burden c,;caped by 

cOrpOrdlinns lhat can take ad,'anlage ofthc c~tremdl' generous la.~ I,.-eaks and Ll bsidi~" 

prnvidl'd \<} lhem by the COfl!;f'CSS and Slale legislatures. l lowcvcr. it is ee1'\..inlynut illcg.ll for 

eurporntions to take advantage urthose brca~s. Th~ blame fur bad government policit'Sincluding the hug.!' IDX bre~ks and subsidies <It.<cribed in thir p.1I"'r - resls primarily .... ilh our 

cieCI(><i "'prc.'>i.'nt3Ii\·es who SCem unable 10 undeNtand lh~ full imp!icalionsofthe measUres they 

adop! and lor unable to "'S;";1 dcmaml$ rmm Inbbyists. 'I1.c hul.'" lax breaks and Sllbsidi~. r<;lf 

"ioo tn,,,iI." Jft: o:sp;:<:iaUy rcpulsiw !O many citizens, eil'ctric customers ~nd mxp.lyers bccallS(" 
243 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.166

il h:l.~ becQmeincI"'lIsingly de(lrduring the pout 3 years thall\u' "inJ indU~If)' pnd Olher "'inJ 

advoc:al~ s havc. For roore than a dcc3de. gn:al\y owrslal~-d enl'ironmcnt~ . energy aoJ economic 

""!)CfilS ofwind euergy 3nd gn:al\y updersta!l~ or isnored ils adverse environment"), ccologic31. 

economic • .scenic, mId pl\1pen)' value lmpl,cts. III fact, thchuge machines (man)" 400 fi or 40 

stories) produce very liule electricity, 11,at clcClricily is inlcmli\lcnt. volalile. and umcliabk 

Furtl"'r, bt.'C'.lU$C their OUlput is dc~mlcnl on wind speed. wind turbines cannUI be count~-d on 10 

be availnble 01 the lime nfpellk eilxlricily dcmund. This mClIlI> thaI an:as c.xpcricm:inS im:re:l.~~'S 

in peak lkm:md or needing to "'pia... .... older gcncrnlOr.< "ill h~\'c 10 add reliable ("dispalchablc", 

{;cm~mling capacity "hclhcror nol • ... ind ranns~ arc buill. Elcclriceustolllcl'!i could be paying 

Mice: oller r!'lr wind lurhim.'S and ag.."lin Ibr reliahle .!!'·ncr3ting unils. 

Gl enn It. S~hliXd<" 

18220 TumtICrry Drive 

j{ound Hill. VA 20141-2574 

540-338-9958 

t! /twww lnd Wa\(~ .pflld o(\J mpn t. tw<Hl ·co mD.n .j"l! •• -wlnd-f.rm-IP.·b ... a.HO .. h. lt ..... 

profl t. fro rr -Inc ome t~ 1 

GU;.'NN R. SCIII.EEDE 

lun~ J952_Junc 1956 U.S_ Air Fo",~ 

19~b-I9(,O I).A. Gustavus Ad lphu~ ColI~ge. St. I'etu. Minncsota 

1%1 Ulliversity ofMinn~sota. Summer School 

June 191>8 M.A. Industrial RciatioM. Uni\-crsilyoF Minnesota 

1%2-1 %5 Industrial Relations Officcr. U.S, Aton,i" En('Tgy C<lnnnission 

Scpteml>er 19M-Marth 1912 Bureau of/he Budget (IlOB1. c·i~Wet,"d T ""hnolog)', N:llur'~ 1 

RO'SOurt<'S Environnlenlnl Llnneh [On July I, 1970, fiOB bec-Umt Offitc of ManagClllenl and 

LludgelJ 

Scplcmi)<,r 1965-Jammry 1%6 Del~il , While Housc Task Forecon MaTlp<,)wer for Sial~a!)d 

Local GovemmeTlIS 

March 1972·I\1areh 1973 U.S. Atom,,' Energy Commission. Divisioll ofEnI'ironmcnlaJ AtTnirs 

March 1973-May 1974 Appointed to Dom~ lic Council. assiS18ntlO Mich~d Kaloul·O",·al. 

a,sociM~ dircelor For nalural llSOun:cs 

May I 97-1-January 1977 Assist"nl Director. Dolueslic Council 

1981 I\kmocrof Rcagan admini~ra1ion lran~iti n tcnlll. ,\ S;;oci"lC Direc10 r oromee of 

Management and Rudb...,l 

h!1 >lI ni,nn.~rchi\'~,!i.I'IV r..'rrr,;ellrchc rsl flnd ltS1lWl ""m ral ~lH('If !jCbicl.'Je,rbr 
244 

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Date, M'y8.2012 

Jln, Schw~,.. 

Org~l1l .... tl"n' 

Phone, 

( _Ma ll , 

Hearl." TW.: 

President/CEO 

IIble Ma""fanuring& A.",mbly. UC 

1000 Schifferd.",ker Avl!. 

(oplin, 1010 M801 

{417H23-306Q 

U ..... II>g on C~naln Expiring TIlx Provlsiuns 

I .............. ... 

-,~ 

,---~- _"

_ ...... , ~'",;'n_, .... ''' ~ .. . ,""M." 

IIbl. ~"of" Cluri g. b . ... d in (oplin. MO. " :I c"nlp'oy thaI produces compo,ite pal1. for wind 

turb,ne nocelles and blade •. IIble has doubled Its wind energy .al •• eV"'1'yt.'ar .Inc. 200a. Ib~ 

yt.'ar il entered InlO ,hI! wind bu!1~ • .s. Cum"' orders 'or wind .n~rgy prvdU<'ls ~I Able~xt~nd Qut 

only to Stpl~m\:H;', of Illi. y=. after Ihot pOlnl ,h • ..., 15 une.n ain ly withQuI • n.a, _term ... !."slon 

of lh"PTC. If new order< do 110' m.l<'riallX<'_ Ab le I. looking "I tile very r""1 pru<l"'ct of loying off 

m~"y "f Its n..wly Mred wind-related m)'IQY"""_ 

Thank you tnr YO'" <nn.ld.",Uon. 

SInct:ITly. 

Ji," Scl".,arz 

Preside""CEO 

IIhle Munofacturinll& Ass.<mbly, LLC 
245 

Statement of Accelerated Wind Holdings 

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Tefl)' KOHler 

Acccl~r~tcd Wind Hol<Jings, LI.C 

10449 NW 195,1, A~ e 

Hillsboro, OR 97124 

April 24. 2012 

Mr. DJveCaJ1lp 

Ch;limHlJ'l: I louse COJ1lmitLl'e on Ways and Means 

Wa~hing\()n D.C. 

ncaring 0n C~rlain 81:piring Tax Provisi0ns 

Dear Mr. Camp. 

As a Director t)f ACl'ckrated Wind Holdings (A WH). a IWW wind project 

de\'elopcr Hlanuf~cl\lrerbased in Delaware we urge Congress 10 e~lend the "ind energy 

production la~ credit (PTC) liS quickly us possible. We are young eomp3ny work illg.h~rd 

10 bring to PWducliun a nl.\W tt'l.·,hnoiligy Ih:l\ we bi.·llc\,e Ilill continuc Ihe march of cI'cr 

chcapcr elcclneal production frum wIlid. 

We are working closely with a wind form Ihm will usc Ollr tl"Chnology Oil their 111m1 and 

Ihe I'rc is vel)' much 31ilelor in their decision f1IJkingproces-s. lflhc I~rc is not rellcwed 

quickly both of our fim1S will have 10 look OVl'rscas. We hul'c had man)' discussions 

globally II ith wind faml del'clopers und in rq,'Urtis 10 mrbine manuli1cturing il5clf. II is 

(lur prercn:nce to dl\\'l.\lop in America. Withoul the PTe il would be dil1kuh \ll cunlinue 

with Ihnt gOl11 hnd create morcjobs here. 

We strongly urge IhiS commitle~ to immcdiatdy tuke up an extension (lfthe wind encrgy 

prodll~tion a~ credit. 

SiJlccrcly. 

T. Komer 

Tcrry Komer 

Dirccl(lr, A WI I 
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Statemenl for Ihe Hearing Record 

United States MoOse of RepresentatiVes 

Committee on Ways and Means 

Subcommiltee on Select Revenues 

Certain E)(plring Ta)( Provisions 

Hearing Dale: April 26, 2012 

The Active Financing Working Group 

900""" Street. N'JI/, Suite 750 

Washington, O.C, 20001 

Statement of the Active Financing Working Group 

The Active Financing Working Group applauds the Comminee on Ways and Means and 

the Select Revenues Subcommittee for holding its hearing on the critically important 

topic of expired and expiring \a)( provisioos. 

II is essential that the acti\ie flnanclflg rules be reinstated retrospectively, to !he 

beginning of 2012. and elrtended forward. 

The active financing rules, which have broad bipartisan support, are necessary to 

maintaIn the competitiveness of the U.S.-based financial services industry and 01 

manufacturing companies that rely on financial services arm!. to provide financing for 

large-ticket manufactured products . 

With the active financing rules, Ihe global active business income of U.S. financilll 

services firms Is givefl the same treatment as is provided for Ihe active Dusiness Income 

of other, non-financial U.S. companies doing bUSiness outside the U,S. The active 

financing IUles are not a special incentive. Rather, they simply apply the general rules of 

deferral to the financial services sector of our economy, 

Select Revenues Chairman Tiberi noled In his opening statemenl thai deferral lor active 

financing income is "among Ihe most fmportant recently expired provisions that must be 

e)(tended: Select Revenue Ranking Member Neal agreed noting that il is -essential 

that the active financing ruJes . be extended . 

The Active Financing Working GIOUp also nOles the testimony of Or. Roseanne 

Altshuler, Professor and Chair, Department of Economics, Rutgers University, before 

the Senate Finance Committee in January. She correctly identified the active financing 

IUles as one of the -fundamental policies or our current ta)( system" and called for the 

rules to be made pennanent. In her words, "II does not make sense for provisions that 

are more properly considered structural features of our la~ system. like the adive 

finance e~cep1ion . to be temporary in nature" 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.170

The active financing rules provide Ihat U.S. financial services companies will be taxed 

by Ille U.S on active business income earned by their foreign subsidiaries only when 

Ihe income is repatriated to the UMed States. As a result, that Income is taxed on a 

current basis at the same local country rate (e.g" the UK rate Is 24%) paid by non-U.S. 

competitors seIVing cusfomers In that country. Absent thls rule. U.S. subsidiarieS 

serving customers in foreign malilels would be subjed to immediala tax at the 35% U.S. 

rata, which would place them at a decisive competitive disadvantage. 

The active finallCiflg rules haYe already e~p red , U.S. businesses urgently need the 

rules to be reauthorized, The rules are critical 10 the ability 01 U.S. financial seIVlces 

firms to win foreign bUSiness, compete in foreign jurisdictions to selVa local customers, 

and to be global market leaders. II U,S. firms are disadVantaged in global malilets, 

foreign firms will become dominant It is In the tnteresl 01 toe United States to have 

U.S.-QWned companies among glol)<ll financial services Industry leaders. 

The adive financing rules do aQ! cerne at the expense 01 U.S. jobs, The provision of 

finartcial services is inherertlly a local business. To make loans, sell irtsurance, provide 

credit. or lease machinery. the business has to be where the customers are located. 

U,S. financial services companies cartnot serve foreign malilets without havil'lg an 

active foreign presence. 

To the contrary, the adive financial services rule supports U.S Jobs Tel'lS of tOousands 

of jobs at U.S. headquarters and in U.S. service centers are directly attribulable to 

supporting the business of serving global customers outside the Uniled Stales. Funher, 

U.S. manufacturers rely on the active financial services rule to promote their export 01 

products made by American wolilers; the rule allows them to offer competitive financing 

through Ihair foreign affiliates. 

In SUm, the Active Flnancmg Workilg Group urges Congress to el<1end the adive 

financing rules Immediately. Their conlinuat;on is cri!lcalto the competitiveness 01 

American finallcial services firms and the teps 01 thousa/lds of U.S. jobs that are 

dependent on thaI compeljlivenes~ . 

, 
248 

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Acli~e Financing WQ(king Group - Contacl lnlormatkln 

Active Financing WOfking Group 

Kristi Kennedy. Elmendorf Ryan 

900 1~ Street. NW 

Suite 750 

Wasllil1gtoll, DC 20001 

(202) 737-1010 

krisli@etmelldonryan.com 

, 
249 

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N,I.8etw> 

''0 

M~~ 

340 ~ .. R,_ POI!<; Suola eo 

~.IM<I \IT ()5671 

To!. (iOJ) 1~15~ 

Coli IlIIlJI m,!!333 

E ..... N8ehn@ .... 'gn'M!>doom 

WOb_Io.egosW,nc1 com 

RE: He;lring on Cl'!rtain E~pirlng T~K Provl$lgns 

I NiM; Behn. CEO o( AII(1's Wind Ioc/Iled in Waitsfield VT. rospecrfully urge C<Jngros$ to e1</eoo 

the wind ellflrgy production lax credit ,PrC) as Quickly liS possible. 

My company 1511 commum/y scalll wimf 1!,rb"'l1 inslallf", WII tllke projecJs from CClncepl through 

permil/iflg, procurement. mstellellon lind commissioning and provide long leml servlC6 and 

mainlemmce (or prOjecls reng,ng from 50kW _ BMW. Wind POWl!r 'S I'll """ do. I can lell you 

uneQUIvocally Ihel Ihll extension oflhe ProduclJon Tax Credit;s imperalive fa my ousmess fwd 

my emploYfles as wol/ as lens of tnousanl1s of otnef US wolke/S in the wind uli1uslry. /\IuGielil 

end FOSSJ1 fuels hlwe enjoyed long Ifmn Ilnd stable subs1di~ wh/cJl ha\le atlowed them 10 thrive, 

yel c/erm ellf?fIll' such es wind h8S had 10 deal with on IIgliin off again incentives thai malie II 

extrflmely difficult ror us 10 build and grow OOf businesses E~ter>d, ng Ihe PTe is smart business 

lor Ihe growt~ or lIle US economy elld ,t IS the right Ihing to do for our nation's sacurity end aul 

envlronmelll. 

Please extfmd the PTe Immedilile/yl 

With Respact. 

Nils Salin 

CW 

AegiS Wind LLC 

leO Mod Rjv~r ~.r~ SuI!. Ii, W.Udleid VI 0S613 .!: 1·802-<196-5155 • e,lnlg@Aegi,Wlnd.cgm 
250 

Statement of AG Resources LLC 

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RobM L Hodst1U 

p, •• klon' 

AG R"""t(~. llC 

30SB,oncns, 

u".~, PA 15101> 

Ma> 10, lOll 

[ho',mon 11be,1 

Sub<"",m1" •• on s.. .. rt R ..... ""ue Muwre> 

De., Chal'man T.I>e<I; 

'wfile ted.V to «or'I"O'IOtrnl """ 0"" y<oUf ''''''m>tt~1 "" ,",en, eft",",o '''''duct 0 mlln"""''- "' ..... ""ti,."to • 

• .,_ ..... ,,"cI<.~e. F"" ",,, "'. "" V*I " tile """"""II<)' natur .. ", ,lit", ..... n<Ier\. hIS " •• ,., """,,, .. n,, wi'~ 'n tile 

....... n .. '",mOl"";'. Tn.. .. ",."",n,, no< hID • PI"" .. II"'" neg.ative Import on .... e ~_nl ,.""w.D~ domt.", 

.... flv •• "O', 

I\G fie ............. 0 ,moll compo"v '" Ito ........ no .. '" 0 ... I0I>l"1 . .... deO"'1/lg ol,. ,nO'tlvt 100u", , .... J ,,",turn 1Ie""'0 

I,om blom .... We .,.ned in lOO!! ",l!~ 'he pI.n,o ""'e '''''''''''',,,,OJ print. <loIn bu,,.,,, ",.,n.U ••• ,o ,,, .. ij lui" 

wldel'i .... u"b' •. 'n 2009 ......... I blo Ie 'um , ... bo"" f~. 01 ,ne ta • ..,..,,""'. fo< ,'wno,w. f ... to ."" Iltt,nolive I ... , 

m',,,,,,, in'o)ol>.; dedlto,ed Ie 'ho c<m""".d d .. 0101> .... "' of ,leon burnTn~ ,. _ . b" I",", ~ 'n 1010 me", incl""'" 

"'0" _ ''' .. ~ ..... "" "' ... ro<<o~ '0 "'""<e "'" . !lotI •. In 101 1 .... "'''''''''' ' o .... ,d, ><olinS"O lIfOCIuction enOj 

'0 00 •• , ... Tn<.n' ...... ' .pl'.ln lOll ono 0." '" we tro.o b .. n lo'<ed,o . Iow OI'rello<t •. 

f .... ,. 0.""00 t",,,, 1IiOm ... can <omP'''' .. 0 aomoitit:.,Oj p,od",.a . ''''',o,,,,,enI.1I-/ /tIOna", , 11, ,,,,,,.,. to foHil 

' u.Io., H"", ... , ,ocloy w" ... '1IedI~"I ",d ..... IV .tn.I!'"'_ to tOoth ",0<1<><1"", 10 •• " "", woula IIIow tc"'l>It~"'" 

... ~~ c,~ , ~~ olica"" -...u","",." 'uef>. 1M oJ ... ",a,iw /IWI "''''!If<' ,,,,ai, for b"",",,, 1>1_ file,. i'I 01 'n~t.> 1 

imPOll.n<. "' ...... ",."Inl 'ndu.tty .. "",nl, 'nduWy , ....... I, .. ,I' ,'low 10< int' .... n ",p cyme"~ • tI ..... , 

1"""OIIm"".na n'tJcnal .... '11' 'KUI"iW •• we roo"". 0"'" ,.11",,,, on lo,oiln lull •. 

TOIIo. ,,... ~'.n.1on o' ,t>< ,o. ,",. nw .. lor '''."" ,lvo fuel'l l,om _ ... ,," "'" Ioiod .. UI~" ,rtdj, if. 

'm~', Ho"."",. 1, .. i",POII'PI til". w.a ... ""'.,ton for tn ... I"'."' ...... ~dtv.loped. Tv ""."',ft> fOf .,,,.001 

",oductk>n n . .. 1><' 0 '" pliK~ ...... 1974 • ..d ,od •• « 1<_Oj iK«'JMd, ... n t.ov _.,..;m,n ,,,. w.,noI Ind ... ",'f, tn •• 

"'" """ntN ••• ' . "" 1001" n.od«I. t wou lo I "",.t ,not otIlt!, d.,.., ... tlc:ol!-j p<oducrd , . ....... blo. ru.I> ......,Id follow tno 

w"", "'''''''''''' lild.. ",th. No 1n<M.t'l' ,1ooukI .. """" to "'''''''' ><IItOj ",,,,d on "' .. ,,,""'", l", ... ~ .... 0 .. _I t. '0 

ro.u. .""mob'" p,oduc'Km jo.,o~ olIff'""", ><o1O .. to .,Iow <omp.«it>oo ... "hin tho If .. """"'. W. ,"'otI"" ,~ .. , ... """ ...... '" 'he ""'''''''' <o<Iet. ""."' .... . m! unti,. , ... ""~ ph .... ou, pion lor ,.". ... bI ..... 'D' to. 

I""", .... con b. <Io~ .. pM! 01 tI. .. u . <ado t .... tnot 'nt o~ .. m"~ furl mI.""'. ««ii' .nd '"r lNodiru/ 'aK 

««ii< ... "",em!td tmm..Ji .. ,,'v "nt' 'h • .,,~ of lOll. 

Ro.bert L. lloolletti 

President 

AGR""",,,,,,.L.I.C 
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Statemcnt for the Record 

Submitted Jointly by 

Air Cond itioning Contractors of America (A e CA) 

Heating, Air-conditi oning & Refrigeration DistribuTors Internationa l 

(HA RDI) 

Page I l 

Plumbing- Heating-Cooling Contractors Associat ion (PHCC) 

Submitted for the hearing of the 

House Ways (lnd MC(llls 

Subcommittee on Se lect Revenue Measures 

for the 

Hearing on Ccrtuin Expiring Tux Prln'isionS 

April 26, 201 2 
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The AirConditioning Contractol'> of AIIl<'rica (ACCA). lhe I kating, Air-comlitioning & 

Rcfrilli:TIuion Distributors International (HARDI), and lhe Plumbing-I!<.>aling-Cooling 

CnntrnClOrs Associatiun arp~'t·ialcs the opponunily III suhmillhisjninl \\'riltcn slatcmem 

for tbe hearinllon ccrt;!;n expiring la.\ provisions. 

Our three Ofg.1ni7.:llions ",pr~'Senllhl' diSlribuj()fS and installers l1f rl'Sidential h~uling, 

l'Otil~tion. and :lir conditioning (IIVAC) :lnd hot water equipmem, lWO segmcnt~ of an 

industr)' supply chain lhal employs more Illan cme and a lIalfmitliOll workers whQ lIelp 

bomeo\\ners enjoy Ihe comforts and COSI sill'ings of higher efficiency appli;lIlCCS. 

Wc hope Ihis submission (or Ihe hcaring recnrd on potential federal energy ta~ incentives 

will assisllhc committee as il lxmsidl'Tll legislation lhm impuclS smulllJ.usiness owners 

and homcnwnefli in lhcsc tryii1g et:tmomic times. 

Nonbusiness EnHgy Prope rt y C",dit tion 25) 

Since 2006,Sl'Clioll 25C oflbc la'l: code hus allowcd eligible 11.~ pa ers 10 claim 13X 

<:redits for <lualilit1l improvemcnl£ uesigned to mak,:, Iheir primaf)' resident,:, mon: energy 

efficient. The lllx crc<iiL'; belp de fruy the inilial ill"e lmenl~ COSIS iUld shorten the payback 

period o f qualilioo fum3ce s. centrol air cOlldi.iollcrs and heat pumps. hOi W(lwr h~atcrs . 

ond OI)ler cnergy savings oppllances or building imp I'l.~menI S. 

The 25C Ia.~ credit \\ S originally aUlhOfi~ed in the Ellergy Policy Act of 2005 for las 

years 2006 and 201H. AI Ihallimc, lili::time claims w~rc limil~'d til 10"10 urIbe illslaJialioll 

costs oflhe improvemc11l, up to $500, II i!b spedfied caps plnccd nn individu(ll appli(lllccs 

or n:lrolit measures. 

The American Re~o"cry alld Rcinveslment Ac! of 200'} tARRA ) rencwed Ihe lax redil S 

for 2009 ~nd 20 10. Wilh st'ver.tI importanlmodificalions. most gnific~nllr boosting Ihe 

value of the ta.~ cl"l'dilS 10 cquul )()% Qflhl· installed C<lstS. up 10 a S I ,500 limit. Olher 

eh,lIlgt'S eliminated lbe lifetime cup on cumldativc claims, making II homoowncr eligjblc 

for claims C'dch lime Ihe credil w~s renewed: and Tcmol'lIl o flhe eap~ on individual 

applinnces or relronl nll'a ~urc~. 

fhe Ta\ Rclief. Unemployment Insurance Reauthorizalion, and Job Cremion I 01' 20 10 

cn~Cll'd in December of 201 () eXlended the 25C 13X cfl'llits to r 20 11 but at a Sigllific:tlllly 

!OIwr value for hOmt-Qwlll·n;, Tbe lax credit v(llul· 'I'll!; rclluc~-;J b;J~k lu 10% o rlbe 

il1s13lk-d costs: the $500 lil"O:lim.: erc<iil limil \Vas rcinSlllled; D5 were Ihc cups on 

individu,lI appliunc~ or retrolit mCiISUJ'e5. 

When cornparingJhc 1(0; crclli[s for rl-'S id~nlia! HVAC nnd hOI watef upplianccs availnble 

ill 200Q/20 I 0 lUld 20[ I. the- lt.~ imum 01110U111 all e li gible la.~p UyCT could cioim for a 

qualifying l"un13cc or boiler was rCdUCl'd from $ 1,500 to S150. Thc ma. imum amounl an 

eligible 13.\p(lyer could claim for 3 qunlined cenlral air condilioner. he;)1 pump. Of hOI 

watcr heater lI'as reduced from S 1,501l 10 $300. In addiliQn to IItcs4: dntsli~ reductions Ihe 

ta. paycr \\'~s limiled t(l $500 in c0111uhllivc credits over hisrt1cr Iili:timc tor qualilicd 

energy dlicielllupgTIldes. 

I'age 12 
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Succt'SS of Ihe 25C Tal Crt't,lib 

Surveys Qf ACCA conlmclOr mcmix'rs condUCled in 2009 Ill1C 211 10 fQlInd Ihe 25C tax 

Crl'dilS 10 be nn c!TeClive fimlncilll incentive thm encoumgcd homeowners 10 reach for 

and ohtain higher etlieicncy I-IVAC equipment while stimulating economic activit)', 

A key lindin!; oflh~ surveys de1\lUnSIr.tli: th~llhe 25C t:l;o.: cr...'dit ho.'lped ta:,p:,ycrs alTord 

higher efficienc), appliancl'S that an: the primary U::>Cf of l'nergy while helping the IIVAC 

industry maimain a slt:ady demand for it~ products and services, despite tlle ::>cvcrc 

econom ic-downturn, 

According to the sUNeys, 46% of ACCA's contruClOr members -S.1W a "signlfic-u nt" 

increase in the sale of qualifyin£ IIVAC equipmcm after the passage oflhe stimulus bill. 

Another32% saw a snmll incrl'aSC ill the sales of qllulifyiug HVAC equipment. When 

taken in landcm. more tMn 75% uf ACeA's cOntr..IC:lOr membi:rs saw an il1c~sc in Ihi.' 

sale of qualifying higher ellicienc), furnaces. central nil" conditioners, heut pumps. WId hot 

water c~ tc rs in the tllO yellr period when the L.a.'\: crediL~ were wonh lip t<, S 1.500, 

And even though 25C tax credits arc aimcd m indil'idual ta.xpayers, thc::>c vllluable 

inc~lltil't!'S helped the small businesses of the HVACR industry. 

Those surveyed provided a numbcr of positive comments from members, including; 

"Without the stimulus bill for 95% cllkient fumaces we would h~ve had nn 

c:"treml'1y bud time of it last year (2009), The stimulus helped us 10 ,gay in 

business lind helped a lot of conslimen; a.~ wdl. 

"M) buSinesS hu gI"OIIn and prOSpered through our dOli" l'COnom), and my 

customers arc more thaJl cI'cr more comtonnblc and SJlI'ing m~ mom'y lTJomh to 

1110nth for the more precious things in life such us their children's welf~re," 

.'J! is crucial that lhcse to:.: credits stay in l'ITeet as proposed and not canedlcd 

prematurely_" 

'~ hank gOodot'Ss for Ihe tB.X Cr...-dils or our business II'ould ha,'c seen a mUCh 

larger drop oITas people's ~pcnding habits changed whcther out of conecm for 

their jobs or dlll.'tn lh~ inability W obwin linancing:' 

"Last fall" as my husic5t .season in the 30 years I hal'c bc.-n in business_ All of 

my equipment sold II'US tOp of the line high efficiency:' 

"The lax ;lIceotive hel]ll.'d u.~ nut only survive a duwll year, but tum il inl\) a 

reasonably profitable onc," 

··Withollt the SI500 tux credit. we would hu\'e had massi,'c temporary and sam" 

pemmJlent 13)'otTs. nste~d, we have been able to keep steady work during n 

trad;tiun~lly slow time," 
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Indeed, Ihe higher value 13.\ credits.m:: helping homcowner1 eiccI16 rcplaeeequipmeni 

Ihat may be in need ofrepnir. revening a Ihree ~'enr lrend in Ihe inJu~ll)'. 

IRS Dalll 

According 10 IRS sim ist ics. full:- 93% 01'1o" cn.'(lit claims under sect iolls 25C and '250 

(for so13T. geothermal. wind. and pllOlnvoituie pr')p<!rties ~ weI'<: made by ta"paycrs with 

un adjusted gross income of fIQ nHlle than $200,000, which is indit:~live ,~fa middle dass 

tax I'rogl"UJn. 

Examining the 2{1()9 F..slim3!ed Data Line COlllllS for IndivioJual Twc Returns gin:$ II dear 

picture of how homeowners used S 1.500 residenlial energy tax credits in 2009. 

Ta;'(paycrs u~ FornI 5695 wurtshec\ II) daim one ofscwral al'ailable residential energy 

eredhs. The taxpayer lir:;1 eatcul:ltes 10 lowl CQSI of qualified eX))I'odilUrc", reduces Ihm 

umounl by )0%, and ctmlrares llial vulue with S I ,500. The laxpayer is eligible for las 

credilS equ31 to the lc.~ser amount. 

Data from lhc FornI 5695 in 2009 Itlls us how many ILl'(paye\'S duim~'d the re:sidemial 

energy lax credits: how l11any d~imct.l a credit lor thl' purchase of II qualifk'tl cenlr~1 air 

condilioner, lieal pump, or hOI \\a1<2' ilcaler: ~ qualified fi.tm QCc or hOI water bOiler, or an 

IldlilUlCCil main air circulating tin: ~nd thc 10lal eX['i:ndilure~ 0 11 these imprOIiCmel11S. 

In 2009. 6,753,885 households tiled Form 5695 10 claim a credil against their !aX liability 

for inswlling some type of energy cnieiel11 appliance or retrofit measure in their primary 

home. 

Of Iii at tolal aHH)Unt. 976.380 households made claims for pun:hasillg and inslallins 

"energy efficient building property," otherwise known liS qualified centnllair 

contlilion ~r, helll lllllnl), antI hOI water hellIer lotaling 53.968. 715,0()O ill espenditures. 

In '2009, 1.290.640 lax payers claim~d LaX cr.:dits for "qualified natunal gas, prOII:.tnr. ur 

oif furnace or h(l[ ,..aler builel"'!i" and reported IOlal ~p~lIdilures of$4.3 10.456.000. 

I\nd 221 ,274 13XP~)Crs claimed some credit tor ~n advanced IlIHili lIir circulating fan . 

!ill (,Ilcrgy c!Tideot compooent 00 a fumace. wilh rul nggrcgUle cxpenditllreanlOllllt o f 

S694.422.000. 

For all relrofil measures Dnd applillilces Ihat qualified ror thc ta,..: ~rcdi1. iocluding energy 

emcienl " indows and door. insul3tion. und roofing l11111erials. All1ericlln taspllyers 

claimed 55. 17 billion io lax credits on 525.1 biUioll wonli of wort. This significarn 

amoonl only represenlS 1he ~mOlJnl filed wi1h lhe. fRS in claiming a lllX credi\. Wha1's 

missing is the work perfomlcd for Ii. taxpayer who chose nOI to usc Ihe. l~X credit. 

Page 14 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.179

The NaiioMI i\ssocialion ofltum<-l3uihJer.s cslimale~ every S 100_000 in remodding 

expcndilurcs generales 1.1 I ftill-limejobs. 

lSC Should Be E~ nded A mi E)p anded 

The section 25C lax credits expired u! the end of 201 land our lhrt"i: 0I"£3 ni:r.:l1ion5 

n-commend that Congress ~- xtend the credits and booslthcir value 10 at lc~st 10"10 oflhc 

inslalh.-<! cOSIS. up 10 a lilllil ors I ,001} for 20 12. This will allow lu.\paytrs 10 conliouc 10 

nlOkl! energy ~1licicnl retrofils 10 Iheir homes and suppon work in the retrofil market. 

The e.\tension should remo,'e Ihe caps on indi"idmd r<'1rolil measures ~nd ullow for the 

COSIS oflahor to be included in Ihe ca!culmion of all qualified impl"Qvcmcnts. 

Funhetmore. the eredit-e liwblc waler heater levels should be divided into storage and 

lankll-ss. to bener rc-nc"Ct the advantages of both !eehnologk-s anll all,,\\" for more 

consumer choice. 

As a result or changes made by ARRA, hCllling. IICnlilat;on_ :lOd air conditioning 

(IIVAC) conlraCIOTS saw an increase in Illc numbcrof .,ualifyiog syslcms wid and 

inslalled in Ihe United States. The 15C lax cn:TIit succeedtd in helping millions of 

Americ;lnS anerd upgr~dcd and hi~hcr cfficicn"y HVAC ~'quipm~nt, resulting in 101\er 

utility bills ~nd more spt-nding mOIlC-Y. It had the additional benefit ofaeeell-rJting.tllc 

retiremcnl of syStems using refrigeranlS Wilh a higher global wamlingpot~nllal while 

providing u boost 10 the economy through the cre8tioll of jobs for IIVAC equipment 

nl~llufacturcrs, diwibutoTli, und il1Slalll'rs. 

hnpa(l of Shorf Tt rm Ex tensions on Sm 911 8u$ine!>.Ses 

Since 2005 when Section 25C was first au!horized for the ta\" years 2006 and 2007 as pan 

of the Enl'1"SY Po licy Act of2oo5_ COn.grl"5S has extended or modified thl-lIl.\" credilthr~e 

limes. 

While the nVAC and plumbing industry appreciates !he extension of the 25C tax credit, 

the timing ~nd method of the e~tcnsion make plmming dil1kuh lor manufaChlrers.. 

dislTibutol"S .. col1trnctors. und consumers. 

The uriginal 2jC Ia.\ credit expired on December] I. 2007. and was nOI ri:authorized for 

th~ 2()O~ tax year. On October 3, 200g, President Bush signed inlo law a 2St \tcn ion 

fi)r lax year 2009 as pan oflhe Emergency ECllnomic SwbiHz:uion Act uf2008. With the 

~xtension linalized in early October. the HVAC al1d plumbing industries had plenty of 

time to plan lor the produclion. purchasing. stocking. Dnd marh1ing of ~Iig.iblc 

equipmen1to coincide with the reinsuncmcnt of thc HI.\" cr~dits. 

Just si. ... "<-":\;:5 inlO 2009, the lax ert:dit was modifi~-d and ~pllndcd midstream by Ih.:: 

Am~rican Rc~ov~1)' and RcinvCSlmcnt Act of20U9_ Changes to the quali(ving criteria for 

SOmt products made it more difficult tor homcowners lotuke advantage ofthc tax eredil 

tor cl'I13in upgrndc ~, but HVAC m:mufactlJr ... rs. distributors alld commctors pivowd to 

meet the dcmand oft)le new tax credillc\'els. 

Page 15 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.180

In 2010, after months of debate, an extension was signe(] into law on Dt.-eemocr t7, 2010, 

les~ than two \\'ecl.-s before the tax cre(]it wru; ~t to expire. Witl1 no adV9l1Ccd notice, the 

25C tax cre(]il value "'as re(]ucc(] 10 the 2006·2007 IL'vels. greatly reducing ils 

3tlrnctivCfll"Ss to the eonSUlller, 

The HVAC supply elmin bu(]get~ for purehasing antI markcling,months in advance. Jt is 

nC;lrly impossible for a sOlali business' ability to plan and compete when Congress P <lSSCS 

shon k'ml extensions o f prOVisions in Ihe tax cooe so dosl' to their e~pirution date. The 

unccnainty over the future of the 25C t3." credits nHlke it very (]imcult for small 

business~s 10 prepare fur and successfully marketlhesc valuable inc~n ives to consumers. 

In l) ~IOr Gcncrnl's Re port 

Our organiwtions arc aware ofthc April 19. 20 1 I. Dcpanllleill ofTreasury'~ InSpL'Clllr 

Gencruls Repon thatlinds fault wilh [RS's ability to veri fy digibilily for the 25C and 

250 tax credits. 

The [RS could not vcrify \\hcthcr individuals claiming Residentia l Energy Credits are 

entitled to them mthe lime their laX l\.'Il,nl' arepmcessed. It is troe thm the IRS docs not 

require indi\"i(]u~l s to submit any third·puny documentation upponin~ the purchase of 

qUHlifying home impmVl'mcnt products amJforcosts associated widl making L'flergy 

etTiciency improvements or \vhether the~ quali fied purdmscs and/or iml'rovem~nts "'e~ 

made In their principal rt'Side,lces. However, OJ taxpay·cr is required 10 retain a 

m~nufm:lUrer'$ certilicate Vl'rifying a pro(]UC!5 qU3lifyin!l- (:meieney mling. In case of an 

IRS audit. the hom('"o\\ncr uld be able to pr~scnt such documentation. 

While the rl'ron did nole a uumocr of delici~ncies with Ihe [RS procl'SS lor cst:Iblishing 

\'erilieation of eligibility for lhe credit, not being able 10 estahlisll cligibiHI)' does not 

mean they were all illeg ilim.1!l! or ineligible claims. [n addition. the IRS noles that il can 

improve ils pmccs~ 10 add addilional safeguards and improve its ability to v~'rify 

di~bilily. Our organil:tlions stand ~ady to aSSi~1 the government in making sllre lhal th~ 

credit is- only going to those who trul y deserve th~ ocnefll. 

There arc a ril'ty ofmcthods Ihal should be c."pIOf(.-d to provide an identify ing number 

or code that could be includ~d on ta.\' rctdmsto help thc IRS tabli h thecligjbiHt)· ofa 

product for Ihe ta.\' credit Which could oc imp1emenle(] for u~e with electronic filing . WI:. 

remoil1 willing 10 continue to Wtlr\.; wilh Congress ant! Ihe IRS t<1 improve the $y.~tc m t)f 

produet vcrification and laxpayer eligibility. 

Section 179 

Sl'Ction 1790, the Commercial Building Ta~ Deduction, allows a $1.80 per 1.quarc foot 

ta." dcduetion fo( building owne rs who make qualitled improvements in overall 

pcrformnnce. Unfortull3tely. the incentive fnlls shorl and is 'Ullmeeting expectmions. 

Although the d~dul tioll has bcClt ueccs.~ru ny used 10 build (lIld retruf,t sOlne l:lrger 

cnergy emden! buildings, the l'conOll1il!erisi~ has r~duced the amoum ofbuildin~ design, 

construction Dnd renovations ac os~ th~ country. In addilion. Ihe deduction is based Oil 

energy con,umption reductions compared to model buildiog cod~ ASI RA~ 90.1 2004. 

Puge 16 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.181

"hich som<' older builders do not m.:et withuut major and expensive ti:trufits. 

I:unhenn.)n:, the expensive nature ofrnany HVAC lU1d \'oSlcr heating lIp1\r'Jdes reqllire 

majnr initial outlays uf capital, 3nothl"f dinicult hurdle in loday·s diniclIlt economy. 

OllT organi7.alions suppon Ihe passage of legislation to increase till: maximum allowable 

deduction from S 1.80 per sqllare foot III $3.00 per square foot (SI.OO in thc cas~ of 

individual subsystems) to crealejobs. FunhenrlOTC. ai!()wing dcdueti()ns or tax credits for 

spedlic HVAC and watcr heating ("OmponenlSsuch as chillcrs, boilers. or rooftop unilS, 

comhined with and an ullowablc squur~ footage d~duclion of$3.00. C()ngrcss could 

immediately Slimulmc building dcsigll. construction. and renovation across the (ouillry. 

spumngjob creation in every stat., ~nd region. while cnhancingour ene rgy independence 

and improl'ing OUT nation's infrustnlchlre for the 21 s\ century. 

l'ag\! 17 
258 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.182

Submitu:d by: 

Name: Charlie McCrudden 

Organization: Air Condilioning Contractors of America 

Addre!;~: 2800 Shirlinglon Koad, SUil1' 300, Arlinglon. V /I. 222 ~ 

Phone Number: 703-5754.\77 

Contact E-m.lil Address: charlie.m~cruddcn accil.ol'J; 

Name: Jonmhal1 Ml'lchi 

Organil..a1ion: Heating. Air-oondiliooing & Rcti-ij:;erarion Distributors lnrcnontilTnnl 

Address: 3455 Mill Run Drive, Suite 820, Columbus, 01143026 

Phonc Numhcr: 61 4-J 45-HEA 1'(4328) 

COUIllCI E·mail Addre~s jl1l<!lchi @; hnrdincl. rg 

Name: Mark R.i:;o 

Org~ni7A1tion: Plumbing. 1·lcmin{!. Cooling Conlractors 

Addre~s: 180 S. Washinglon Stre,'l - 1'.0. 3o ~ 6808 - Falls Church. VA 22046 

Phone Number: 703-237-8 ioo 

Cuntact E-mail Address: riso@naphcc,urg 
259 

Statement of Alex Potier 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.183

T he Ways alld MeJIIs Commitlc~ 

Alt;\ j'Olit.,. 

Gmlll"Sll Wind 

267·69~ 5300 

arl'l ic n:,"~amcs~ !)rp. ,ml 

TUCWJY 14 April 2012 

RE: llearingon Certain Expiring ra.~ l'rovisiQn$ 

I. Ale ~ floti~r. Account ""'Ianager in Ne\\' York. NY. respeclruU~ urge Congress 10 extend 

Ihe wil\d en~rgy production I~X credil (rTC) as quickly as pos.o;iblc. This i; un important 

measurc 10 nOI only $Upport jobs in an important industry, bUI also 10 rl'llucc our 

counlry's dependence on foreign oil nnd production of embon emissions, 

Mnnufacillring has been a s;.:c\or in declin~ for many years in the USA. IlolI"cvcr. lhe 

wind power industry hIlS helpctl create m~ny j obs 3nd r~-illvigornle many lillked 

induSlriC'!i . Mall)" foreign Ilind IlIrbinc compani~s hHve cQlllmi\tcd millions of dol13rs 10 

St.'uong up 1()C:l1 manuillcturing f3Cllitics in our county, and US-l}ascd production is al&o 

import~lll for exports lhrough Inlde organi7.:ltions like the US Export-Import B:lOk "hich 

provide support mCl:hanisms for locally lIlanutliclured products like wind turbincs. 

It's imj)<)rtlml 10 colllinue building upon the positive momentum of slIch a pl"Qlllising 

indll~lry lind Sl1slnin lhejobs in wind power. I urge h~ commillee t(ltak~ up 9n extension 

Qrlh~ wind cnl'l"j;)' prtlduction tax cl\:t!il righl :m'ay. 

Thanks for your auemion WId action. 

Ale.~ POli~r. 
260 

Statement of Alexander Bester 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.184

It would be lair to Rive the wind er>erR~ indun ..... the 5amr level 015uppon;H the fossil ruellr1duslr~ 

,ecei'les in tIM! form of subsidies and 1;VC breaks. Thanks 
261 

Statement of Alka Kapur 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.185

Subjecl: Wind Energy Produelion Tttx Cred it 

Tille of "karing: Hearing on Certain Expiring Tax Provisions 

I respeclfully urge Congress 10 cxtend the wind cnergy produclionlux credit 

(PTC) as quickly as possible. 

Increasing the amount of power that our country gets from de,ln, 

homegrown, affordable resources helps us maintain a cleaner environment 

wh ich is important not only for us, but for unborn future generations as welL 

We also develop allen1llt ive sources of energy, which wi ll bc:nefitthe 

country in years 10 come. This lax credit provides an incentive for the wind 

industry io continue to do just that. 

The PTe drives bill ions of dollars in private investment in homegrown 

American wind powcre(lch yelle II helps to revillllizeourcommunities. 

bringing in construction and maintemmce jobs, and generates revenue for 

our community schools and hospimls over the lifetimeoflhe project. 

I urge the committeI:' to take up:ln extension of the wi nd energy production 

tax credit right away. and nol wait uillii the last minute to m:lke:ln extension. 

Alka Kapur 

Ark Capilallnvestmcnts, LLC 

778 Edison Way 

Cannel , In 46032 

Tel: 317-574-9598 
262 

Statement of Alliance to Save Energy and 39 Other Groups and 

Organizations 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.186

The Honorable Dave GiI~ 

Chair 

Commlttl'e on Ways and Me;,/IS 

U.S. Hoose 01 RepreseotaUves 

Wa~ton, D.C. ·2{)SI5 

The Honorab~ Pat Tobeli 

Chair 

Subcomm~ee on Select Revenue Measures 

Committee on Ways and Means 

U.S. House 01 R~ta~v.,. 

Washlngton, D.C. 2{)515 

The Honorable Sarlder M. LeYi" 

Ran~lng Member 

Committee on Wavs and Means 

u.s. House of Represent~ tives 

Washin<;ton, D.C. 20515 

The HO(IO(lIbie Richard E. Neal 

Ranking Member 

Subcommittee on Select Revenue Measor~ 

COmmittee on Ways and MearlS 

U,s. """,se or Rl'P'esentatives 

Wa~lo9too, D.C. 20515 

Dear Chairmen camp and 1lberl and R;mk~ Nembef5 Le{ .... and Neal: 

A5 you begIn )'OUt .eview or tao e.uenders, we urge you to suppoft elItensIor1 or the New EoergV 

EffIcient Home Qed~ (Internal Revenue Code Sec. 45L). At a modest rost to the Am..nc.an ta. pa)'ff, 

this incentive promotes the construction of hlghlv fflQent new homes that create jobs in Amerb's 

housing Industry while SiI'Irng homeowners money on Iheit energy bliiS. We ouec!N~ rep.esen! 

businesses, fIDf1-prof~ organililtlofl5, state" and energy eff~ncy and envl.oromental org,mlzations 

thai suPPQ<1 tills c.itical ta~ incentive. 

Cong.ess ffiGCtffi the New Eff"K'lenl Home Credit In 2005 with slrOOlJ blpartl!.iln suppOrt, bot \[ e~pi'ed 

at the end 01 2UI I. OVer the yeatS, the New EffIcient Home Credit /las proven to be incre<:lJbfy 

Impact/ul at a modest cost. The Incentive Pr'Ollided iI $2,000 Cled~ for builders of homes that use 50 

~ less energy tor SpaCe heating and coo~ng, relative to the Jntemational Energy Const'r'la!k>n 

Code's (IECC) 200'1 supplement. It al50 provided a tax cred~ of $1,000 10 manulacturers 01 ENERGY 

STAR~uarrfied manufactured homes, The lna!ntive was the<efore based 00 a new i>ome's ene'9Y 

elflcler.cy perfu.mance. 

This performanc.e--based tax c.ooit has tleen suca.ssful in tra!l5lormirl9 the new home'i ma,~et. As 

show~ l~ the t<lbie below, the IOtal number of new homes eligible to< the credi! g.ew four-fold between 

2006 and 2009, despite thl! fact that total new home construction cIec.~ and the cffdlt's high 

elflcienqo requirements. Elefoie Congress enacted the In(entive, Ie<» thiln 600 homes had rome even 

dose to meetin<j this level. Addilklnally, enet"9y-effic:1eo\ homes 9ained a greatef m<llket share, as the 

mnnlle, Df homes ...uaible for the tu aedit rose to II percent of new homes sold in 2011. 

Thl~ ta~ cre<:lit IliIS effectively lowered en~y costs for Amentan homeowne.s putting more money Into 

kx~1 economies and making homeownershlp more affOrdatlie. It is crilic.ll that Congress "-"lend the New 

EffIcIent Home Credit to Increase the marl(el: share of new homes mee1lrl9 the efficiency criteria of the 

lrlC0lbYe as the new home construction marl<et rebounds from the ece~n. 
263 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.187

T.,. _ Hflc:len' H(me 0<>dII .... bfto1 ~ ~ In br\egi"oy """"'ative, 'Ii9"~ _ 

. ,," "'" ~ 'TlIHe """",,_._"""'9't or>eI ~ ~., IN!...,.,._ -.......... ....... _ """" ~ to.....,.. .. tI'« """""",lIIos, <~ 1oa!)aOO or>eIlm~ 

Ioca' -. For ....... -.., ..... ""l" ..... 10 .. _ tho __ En<ryy~' 10M (JWIiL 

-..... ~ co...d ,.,.. .n Erot:ton-E/fk:ie\lt E:c<w>omr (/lCfEf;) 

AlM<n to sa.. El'"'9Y (A5f) 

""~ ~ <>fAmerl<.O Bayer~llt 

_·1",_ C<>ntror:rors.o..ooc;.,tIorI (81IlCA) 

~ 

CO<.Wd ~-d tIctttI ~ 

.. ~ 1_ M.inuf.oc! ...... A, ....... Llo<1 

Elf'iCIeIIC'i Fnt 

~ I'uIon CoojitlDn 

En~ Um:nunlty I'-..n En ___ AmerI<.O 

~.0{111 ~ SlutIv ItIlIIOlIle (f£SI) 

EOS If'I<!U<try Alliance 

--(eynene Inc. 1_ l"otlt"t.Iw_T~""""",,," 

~ """""""Ion <I "nIe<U (teM) 

Knout I""", ..... 

leo>cIh">\I 8uIIdm 0( ........... 

MonlJloctOru! I10Wng Ino!iWte. 

fotO«l> Cnr!>or.Itioo 11 ........ , __ lot Slatlc 0ltMIuMy ~ """J' ..... (N.\SCSP) 

1l __ dlMVY_~(w.£SCO) 

N_ AosoooIlOft oIlUM ~ (N ..... B) 

N_ -..tDl <>f SI;Jte E""'9I' 0Ifi<l0I> (N.o&O) NatiOfIOI ~ ~ _ (Nf~"-l 

110_ l<Imbef" ono' &-.g fototoriol 0e.>Ie" _ 

Na\l>I"iI ~~ Pe/erooo! OlorKll (MUX:) -,- _ Er>e<gy ~ _ (~ESNETl 

-.~ 
264 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.188

Southern AJliance for Clean Energy 

Spray Polyurethane Foam Alliance (SPFA) 

The Dow Chemical Company 

The Polyisocyanurate Insulation Manufacturers Association (PIMA) 

Thermafiber, Inc. 

Tile Roofing Institute 

U.S. Green Building Council 

Window and Door Manufacturers Association 
265 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.189

a",~rlc;iI" (JU/'I'''9 ,,,stltutc'" 

........ -

I'roposed CTilic 1 Amendmenls 

T. 

Unile'" Slales Biofuels Poli~y 

To Preserve the Unile'" Siaies' Oleochemkwllnduslry 

Ol~,"'h~n.i""l ' 

Olro;;:ll<.',"i~a Sll"'" tlw orig,innl "gr«n chemi~ll)'," They are ~h~oni~~li made from anima l fat~ 

and sc'td oits. i"cludi,nl> falt}' alcuhuts""d falty lICid., 0 1"",,1I1<111 ;03 Is UIV u""J 115 il1gn.'<iicms iv 

pers<lnll) .... re prod""15. d""ning prudu"'s. pls~ICS. lires. lubsi.:anl<. drilling Illud,3nd pa~r 

pruducliou l$Oe alll101l11.elll). 

~ 

Ol"""h<micals IlJ'e impaclo....J by frdoral billfue ~ p<lll"y b<'<... u$O Ihe)',1Iare a raw mmer al~. 

i,~ .. aninml fals.," il h bi"dicscl "lid mho' bi"r .. ds. Unlill004. lhe animal fms ma, d lIa. fT"" 

and open. d,,' on by 5upplYliOO dCJnaOO. Sir«:e then. biof""" producers ""d O1hcrs have n.~jved 

rnw malerial s"hsiJic.\ of "p I" S ligallhrotlgh 1",,- <rC<Jill a~ "ell '" l!""rn ntc.::J Illa'~~ls ,·ia Inc 

Keno:wab lc Fuel S,andards and ilS lal<51 revisions (~fS~). Olroch.~"ical rrodu,~rs. 10 Iheir 

delrimC~1. ,e<:c!\'c no !u~h ~O\'<'I'''''<'TII SUPIWrt$. Oloochcmical pt'Odl''''1rsmustnow Nmpcle I;;'r 

!'ll'" mal~ri"l againSI ~ !:"wm"'l'1j '5Uh'id;l"" ind usuy_ Ita" ""u~ri~1 f"'i<<:s h~v~ 1l)(>re\h.'lI) 

doubled sin"~ 2004. 

Anin.,d,." provide a romp"titiw row m"erial ba>c '&ai"~t oreign poln. I;lil olt~mati"~5, If 

ani",al fats priet'Slo"" their "·ompclili\'eedg~. th~ dom .... ti. industl}' slandslO be 10'110 orrsh"",. 

foreign oomJ!'"litors-. "~nt "'lief. m.r1;~t e«>MOmiC5 " 'ill li"t dri"" oleocllemi.al production 

offshore 10 be folloll'ed by ,-datod r",i.o;lK.'<i prodllcl producti"" . Ani",al f"ls.re f"I""I)' ponraycd 

B. ··Wlll~." Th~yare Ir.. rif~blilOd ofth~ domCSlic oleo.::homi<lli indu~tl}' 'lnd lt3,e hiJturiC'al. 

"dl..,.tablishcd U"".;11 oth~r:tl,pli.c"ti{l!'"1IS w.:ll. illei,wing a"in.~1 fcro. 

Wl,ile it il; JiOmCWhal difTkull 10 Ie""",, oUI industry specific UUII,be", from d", Stalldard IlIdu,(1)' 

Cod~ (SIC) or DUlin and Brudmtet. our besl CS imat~ is that tho ol..ochcm'eal indumy dIrectly 

supports 20.000 job. in lh~ Un ih,d S~1te'. Oleochemical plan!s provide union, re ~d"iruK.'f job. 

n-presento:<l by Ihe Unit...! Commer<iu) and Food Work~"". ret1~cting the induStl}"~ oril:i,,~ in h~ 

5tock}'ard. of the Mid We.1. as wcll •• Ihe Uniled SI""h,.",kers Union. 

n,~dv s"Ol gh l 

I!limina ~sll tax cn.>dits rel.ted to the energy use of"'",m81 fall" ;nduJing lh~ biodi.".,ltu 

crodilli. all other b;,>fllOl crMils. c_!!_, "","""b ~ Ji,"SO'1. a~ ,,"II as ilK' .hernati"" ruel, ax ~rC<Jil 

for d,""'t bun.in8- Eliminate QlIim~1 fatO'-wrd biofllCls from ""l1lill~8Iion undcr the R!'S2, 

')I' L __ ,s.....sn _..,......,ocZOOO! IIlt)OI2000 _.<1_''''''''_ 
266 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.190

R",,,lt "r !'ro,!"O<t tl Am~"d"'~tl ' 

Th~ m~rkc( for animal fats would once again bcc0111i: free, open Jnd ,·omp"li,i\\:. Oleochcmical 

and biofuds produrers WQuid pun::h~,;canj",al f.1l_ III C(Nl'I"',i,i\'e, 01"''' markel prices. 

OIc'(l<:hc~l1ic~1 pn)du<'crs will no Illnger Ilt' in cQl11pclition Wilh tneir own go\'~mlllenl. 

Hack!: ... ,,,nd 

'.<'!olislpl;"" lliswy 

Animal fins us..'tl f\lf biodi.",cI. n.'oowabledilosei. ad"anc~d biofl.ll'l, and renl'w3l;>le biomass 

fudJ<' II'" ioccnliviLc<.l by II", "American J"b~ Crea,io" Act of~(lor and 6t he, I,.", b) 111)1 

cr>.:diI5 of up In SI /gIIL Uiodicsd markel> ~ al!\<) I!uarunl~ by th( mandates contPincd in the 

Rc,iscd RCTlcwublc Fuel Standards (RfS:) cstablished by the "Energy noJcpcndl~lcc8l1d 

Security Act of l(107"Il' "blic L:"," No. Ilo-l<fO). 'nil' RF'S2's m;mdatcd rrmrkcIH'IlII1I'o(llmd the 

si'"Jlioti by a!io" '"1; biofucls producl"1'S to purchase their rJw Illmcrials ~t Jlly pri~'C since they 

ClIIl cha,&\' wl~1I is fW':<.'ss'''Y 10 C\lV!.. tm,if !.'()Sl$ bc<:aIl5e lhe ""md atc-d vIII!!">c; of lh~ pmducI 

"""1 be puO't'hascd by blcndc~, 

Thc"SC 1\\'0 prillCiP.11 SUttul..-s ha\e caus,..! lite pne,' of 15110'" In efl"cclivcly dnub:., over preIt,K:c'Hive, htstorit.~'1 priel'>. This po.l5<.'S a .s<."';9US probi<.-"" 'he animal fal10 supply is illcla~lic. 

¥~nc",lIy "3') ;"~no .nOre lit,," 2% ".,0 ~nn" L I,;, ~.tock n,,: ""t J."O"" for '~.'r till. 

ConSl"quclllly. ,milnal fOIls. as ""11 as oltt.or tlQll-liJ<Xl po.lniolls Ofl~C livestock, ore ~!luwn ,15 "roproduetS"oflhc slJughlcr. 

Allimall'aL< U'l Nut Waste 

,\ nimal falS hJ"e historically oc-.:n ust.-d 10 a very high de)lft'C in "~ri()Us 3pplic~ iorl.i. Any 

cirJr..cI, .. ization of animal f~B as "wasle" nil'S in Ille fac~ of realilY. Wasle pliessomethin~ 

thaI d~ nol ()\hl'f\vise have a V3lue. Th is is cknrly nOI 1m, C:t$~ wilh animal f~lS. The Walt 

Streel Journal ~nd New " on. Times 11<) not puhl ~h commo,Jilypric .. s f(lr u!It'less male rial. If 

you wanllO kllOw the cutmnodily prices fur \1irious gnull'S ofl:tlt(l" or pur\.; Illl C" )oujusl 

hm' ... 10 ope', one orlhe",," Or other p~p"r; orn:~ord. 'J'1ll'Sc pnc~ an.'lIls(I Ihe ,-o!lccleti and 

publisl ... -d by pri lll~ f,nn~ such Il~ h~ J:K"QbS'''1 1,"1Icr. 

I'ro!!"wd Itemrtli« 

EljmjnateAni11lall'at< frnm /lipr" 'I~ I;:wise hs Crctli!s 

Thi~ wuuld have !he-eIK",! of ;;hif!ing ~t1 suhsidl~5 to c~[XIndphlellgricul1Ur.l1 Cll)PS. c.~" 

W) bea[l ~, Animal rab pri",,~ would 1'1\"" again Il<' determined hy fn.-.: markel conditions M th~y 

w~'"" prior 10 1(K"'. The ~~cmptiun ~hould includ( lhe Ailcmalive ruel Tns a> wdl!ls the 

biofuclsescise IUS credits. 

Amc!lJ ttFS2 Rioruc! Mandate 

The RI'S2 thrc:lltnS both stlppl} and pri~c. The m~nda1<."d v"lu \~ le"cls(>rl ~ RI'S2 as,ure 

biofuds prod ce~ B markel lt'gardlcs> I'f <'run ur price_ Ther call I"'Y whalever i~ nCC~5M) for 

raw m~l~ri8!S. lllo;r~b) innuling animal 1;,,1s pric~.,; beYI'nd tm, (licoch~mi, al ind u,try's ability In 

'!n """'" i_ ... 1I><.arne: .. i ... t f4lS-~ 0;''11'''''1 Imo1h)1 "" \>i.>Jk....t) u ",rrrr<~ Io)hJ ~irr"""1 ,<11lI • 

.Jt>r,,,, bCi"i Ill<' ........ pMd.",. 

, 
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compc l<\ !JecalLW lneir"'3ri<el i!; gual'!lll(c.:d. As tK'[C..J 300\'~, Oll~" lh~ pricc of"unimMI !ius;5 

i,d1alcd be)'Dnd Ihm of palm oil. the domeslic oleochclllkal indusl,)' will hav" re3ch~d Ih~ 

lippin& flIlin! uf~conomic ~uslai,mbility. r\CI proposes Ih~ folluw; n!l1O add",ss II", ine,!uitic> 

posed by,he RI'S:l volume manda le.,,, 

E"cJudc Fa," and Greases from !)';linilioll of ·K~,...,,~b! e lli(m!i\S ~ 

, 

TIJI' ddin;lioll "r""'newabl~ bioma,s~ ;"d",]es "Anima l waste malerial "lid animal 

b)1>l'U"lUClS." Animal byprud,,,,tS ..... g" fm$ and 10\"'''''''' h,,,,, long. w-cll-<:sI8bli,hed 

markelS in oleoch"mi~al ag well as 1" '\ [000, and othcrappllcatiuns. Whil,,;n sencrnl. 

all th~ olh~r .<Iipulal~'<I cOllslilu",,1S " r "",newabl" biomru.s" "", eithe r C~fI'UldDbl" cmps "' 

J:l~nu ;ne "asiC pril<.lu<:1s Wi\hoil[ pr;. .. -<.'"iSlin~ murkcu: ~ni -falS and grdses are (",de<! 

liS eommooiliCll,l",w a ,,'cognized e~ono,"ic value, arc" critical raw "'~I"ri~1 fur WI 

e,xistin!! indusll')' and ~re not nn ~xpandDblc supply, Neither arc the)' "US(",,: Ihe price per 

ba rrel for ~1110'\ is simil~rlo and at tl",e.~ higher pric~d than 3 barrel of crude oil. 

ACI bdicvcs Wal rcconsidcFJlioo of their i"clusion ought 10 be undet'l.kcll. 'Il>cy oughl 

nOilo be included in this dC'fi"it;"", 

A pr«cdem for soch considcrntjon is found 31 Seellon 932(o)(C)(i) ofthe "Energy PoUc)' 

Aet of2005." In deron,,,!', bjom~ss dcril'cd from ·forcs l·rcIDI~'(j" matcri~l lh c phrn,,,' 

.. Or olhemise non·merchantable 'Ml~ri ar' is appll<..!, The clear implicalilln "fthis is 

lhAl material "hich nlher",is<: has a mnrk~I is eXC luded fr(lm the d~ro"ilio" , ACr " 'ould 

"'Spectfully urge Ihal Similar language be in..::lu(led in tlk current "renewable hiol1l3-'<$·· 

delini,i"n, 

!'ljrl'ill~'c Altcrn;nivc Fuel Tax Cn;di,~ (or pj""1 BV[l1inguf AJ)ill",II'~ls 

The alt~mati\' .. [wi (ax credit currelltly appli~'S 10 IJIC d,n,'C' burning I){ fats in ooil~rs and ()(hcr 

smliUllary f"cilitic _ Such bum;!)!; ""ali" longsmndiug practice prior Illlhe subsidy 800 based on 

",ark~1 rnc~ for ruels and ('IS. As uch, it W"S a pr:lclice ""310gou5 to the bumil1!;or·'blnck 

liquor'" by Ihe p"pt'r indusI')'_ Consequently, it o;lughl 10 ~ climinmtXI a$ ,,~II. 

Lcgi$laliou 10 accomplish th~_", ch""l;-'S is attoched ru; well. 11'e pl\)posal i$ based (\/l c~istil\g 

c.xemplil)l1S found in related statU1C5 thaI already aCCO\l,11 lor ttw diversion I)f cs~l1tjal raw 

,nalerials fl\)111 historiclIll.lSeS 10 biofucl prl)doctioJl. 

('«'vcounCllt AClIOrtiVI1I1]Ctll "rlhe A"i1lJall'"t~ M,ui;ct - ,S% or Aoil1l31 1"11' and nrea.~ 

Should Be SCI Aside f(lr OINChc1IJical Use 

Anolher approach is to apJ'Onioflthc allimnllalS IORrkClS 10 assun' tlw IFd,jiiional users 

",f anilllal falS 1~1VC access 10 suffici,·nt frac tion~ uflhe IllHrkcl. TI,e US O~fmmnCn1'~ 

Ene'llv Infomlation AdminiwmiOfl3Ire"d)' cOllduc\:l. 3 ··Mo nthl)' Oiodic* l Pmduct;"n 

Survey'· pursuant 10 ~'1UtC . " hc infonnatiull "'quired by Fonl1 GlA-22/>1 (atlachcd) 

inCludes discll)s"rc oftJlC FJW male rial u>cd II) produce Ihe reponed biodil'SCL This 

d~~.iled dat~ wlJuld aliI)'" the EPA 10 apportil)o th" market JPPlVpri'lely among lite 

industries Ihat use Jl\im~1 fats as ~ raw maleriaL 
268 

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4 

Apponioning could be conducted allmg the Iblillwing lin~ .... Once allimnl fats 

cQ.nslLmplion trends for a calendar )cnr indicate lhal 2()% of animal fats ~land 10 be u:;cd 

in biofuels. ~s dclemlined by a rolling ~"eragc or olher appropriate stmislit':ll meusure. 

the ErA would tuke steps [0 disqu~lify unimal fulS under Ihe RFS2 10 asSUN.' th;I!IW 'llMe 

than 25% of animal fats llf<: being used for biodicscl production undt'r the program. The 

goal is \Q assure thullhc OIL'Ochclllical industry wi lllmve access \0 at leasl 35% of animal 

futs ;rnd gr~;"cs for ils U~, 

In add;!i!!n, the animal fills biodicscllll)( credit would be suspt:ndcd ()11CC.lhc 25% limit is 

rcached. 

lT150far a); this approal:h Ilouid impose new costs on government and industry. il is 1101 

the olcochcm ica l indllslry's preferred appro.1ch. NC'\'cnhdess, il is an option lilm should 

be cOJl~idered if:Lmcndmcnls 10 the RFS2 und biLlfut'ls la ~ crt:dit structure (;UJlout be 

~cCQlI1plishl-d, 
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.lInt/lun dNning Instlw to:'" --.... Representative OIeocbemjcaJ Uses 

Dll!y t o·le trv car, 

Soap (1IIIuid/bar' 

Toothpaste 

Shaving Cfeam 

MoisturIzing body Cre.m 

Mouthwash 

Cosmetic creams 

Shampoo 

Hilirconditioner 

Makf'..up 

~ody W3S~e.s 

Hand lotlens 

Nail c...", product. 

Cloth;!!, Care 

Detergent. 

fabric 50ftene. 

Stain re"lOVN S 

Clraninc/ horneslbultdings 

Hard surfacl! cleanerS & sa nitirers 

Dish detersent (hand/machine) 

GI. " deane r 

c...ndles 

Air treshen ~ 

Other V,es; 

Tires 

Various rubber products 

Pharrnaceutic"l. 

Building materials - foams 

l ubricants 

Manrt .. e, 

Automobiles · tar dashboardS 

'"" Paints 

Textile tiber flnl,hing 

Frilg"nces (carriers) 

Adhe,ivu 

Resins 

Pla~ jts 

Water trNlment material, 

Pa per Proce .. ing 

Hydro,ullc Fluids 

Corrosion inhibitors 

Dairies- food pmce",ins 

Agrkultu re-di!;pe"lng "gent 

1).I \l~,_NW_/,$\l ~.o:::_ 

---
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.194

Textual Analysis of the Proposed Amendment 

\0 Exempt Animal Fats from National Tax Credit and Standards Prograilis 

The propose<! :uncndmcni ,mllid m3k~ changes 10 thr~e statulQI') provisions relaling to 

fcdeml h",,'emmem pc>licy nn n:." ... "lIblt c~e'lb'. t"o Qf which provide lax ~ ... 'tl;ts for rell<'"abl ... 

fuels ~nd the other that cSTablishc"S n~Tiorutl reoc"ublc fuel stMd,1Ttls, Each of the thr~ changes 

in the am~ndm"ll1 would simply exempt Illcis deril'~-d fmm a'lhnal lats fmm Ihe application of 

the credils or Ihe ~tandard, 10 "hol1. ~\lJ<;h fuds "ould nO! lIelto laxe advantage of the Ia...; erroit>, 

and biofuci ",lIers \\'ould l\fIt bo r"l'<l"jred 11.'1 usc su.h fuds 10 meel the standards. 1'11<- dr~1 of 

the am~ndments will b<- 10 re-establi.h a ~'(JI11p<'iiliw open nl~rkel for the mar~~linS of lhe 

extremely inclasli,' upplie~ of animal f.,lS. Th<.< amendment \\'Quld have 110 ad,'frsc ell"et Qrt the 

us<: Qf cxpmldabk agricultural crops lu provide fe.:d stocks for biodiesel production, Biofucl 

producers eQuid co.llin..., 10 purchas~ m,jmal f.ll!1 in Ihe .... --eslablish,'d cO"' PCI;li\'c, fl'\.'C and uPC" 

Inarkct 

ll::i"~;:;:~~ii!;":~O:u:'ld am~l1d seclion JO,\ uflll" Imcrnal R,'~~ow Code 

I 1"" g:.lIon Ill>. cro:dir on Ihc sale of bindie...,I, and a 

10 cents per g.1llon i I producers ofagri-hiodies<:1 (whi"h is ddiol..J as di~1 deri ved 

fmm vlrjlln plant oll~ and anim31 rm s), 

Subsi.'Cli(}fl (al WQu)d nlnend the ddiniliDI1 of "biodi~~I," a~ u"'-..:I in lb~ J<'Ction 40A, by 

adding' caVeat atl~ end oflhe ddinilion th3lth<: l~nl1 ~ 1I0t include biodi.,.,;el de,il'ro solei)' 

or paninUy fronl animnl falS, Tht, ctTtct of this ~h3llgc is \0 bar the j,'l'llillilll! of the biodicS(:lla~ 

credit (osuch biodill'Sd derived [rom :H1imal f.11S, 

Sui>so;clion ~a) would aim amend tlJ.l, delinition "f "a~i"biaJie-""l." 3 S "",,'tl in the !!<-'CI;on, 

b}' <'\~k>Jins thl part of lite dclinili(}fl Ihal stat~'S Ihut the tcnn mCMS bio<.li~'Sd dcrih'tl lTom 

animal fals, 111C cffeel of this change sim\l8rly nill oor Ihe gronli"ll of lit,' agri-biodies~1 jIlX 

credit 10 oni, »al fn(s-oos.;,d biodics,,1. 

Suhstttion (hi Qf 11K ;lmcn4m~m would mn~nd :l<'(:tioll 6416 of the Code (Zb U,S,C. 

6426). ",hid, pro,.ioo an ucisc tn~ Ci"Wil fOr rc""wnblc fuel~, induding biodksel and 

"altcnt8iivc fuel" mixlures. With ""pcCI 10 the fumler-lh~t is, biodi~...,I -.] llinml fals-bas"d 

biodicsd would be e)(cluded from Ihe c.~ci5t' tax credil Iry Opt:1"d(ion of the ctulnge made b} 

subse\:lion (a) oftlte ament-hnent This is bccau,., paragrJph (51 o[ subs..'Clion (c) of;;'-<;Iion 6426 

("hieh U~'Clion "1ta1:!li<he5 Ih~ c",dil for biodi'''$Cl mi~I~) pnJvid('5 Ib"l. lOr rurr<->$i-"S of Ihe 

Sub~c'<:lion. Ihe terll1S used Ihe",in hove Ihe OIcanin!,! given IhcOi in seelion ~OA oflh~ Code. 

WhMt Subseclion (b) Uot."S is address The indusion of animal fals-ba;;\,'tl liquid fuel in tm' 

detinitlon ,)f"alteITll11,VC fuel" also eligihlc lilT an ~xcisc taX =<llt b) amcndinilsl1bseclion (d) of 

M'Ction 6426. "hich est!lblishes the nhemalive fuel credit. 

An Inlenlal Ke"~nu¢ Service !>Oil"e is:;ued in J()07 INNi"" ~OO7-97) Slales Iha(lh~ l~ml 

"3hc'rn8Iiv~ fuel" iodud..s liquids deri,'cd froll1 n'nde",<.\ Illl. Under Ihi ~ nolice, then, if lhe 

animal faTs-ba!!<-'tl liquid fuel i~ 111'1 biodio:se l (suOstc1;on (d)( I) of s~'Clion 6426 excludc'S 

biodicsel [rom (it,; delinil;on o f "allunm'I'c fuel"), Ih~ ahcmauw ruel is eligible [or !he crc<.\i1. 
271 

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Tht amendment will revise lhe definilil)l1 I)f "3hcma(iv~ fuel" Ibr pUl'p()S<"l of (he ~n."di( II) 

exclude an)' liquid fud derived from animal r~(. TIlis change will prevent Illc award oflllC.e ~cise 

lax credol fur such :''';l1lal fals-bas. . ."d fuel. 

Svi¥>CliQIl tel of IIII' amcIJ(jmcnl would amend sU~~lio" (oJ of .<celio" 211 of llle 

Clccm Air ,\CI ~.j2 U.S.c. 7543). whieh ",'ab ishc~ ","<.""allic fuel ~Iandanls. The eu""n! 

r,,"(.""1,able fue) standards 31\' n ",visiOIl made ill 2007 of standards c"Slablishc'<I cMlicr_ al1d ~re 

~lIown by the ",ron)1n "RFS2.·· 

Und~T the RFS2, all biofllCl ~ Illark~ted in the Uniled Smte~ annually mUSt clIPnulmive!y 

cl)nla;n Ih. folll)"'ing volurn<"5 ofbioma:lS-ba,;ed biooi~'$t'I: in 1009. 500 million 3J1 on~; in 2010. 

bSO million gnll'ms: in 2011. i!Clo million g.'dlons; and i,11011, I billion g311011$. 

Sub!;ect.ion\o) of ..... ction 211 defines "biomass-ba;;ed di~,*I" 11) mean renewable fuel tlmt 

is biooiesd; il dt'fint'S "renewabl., fut."!" Il) mean fuel (h3t i~ prodUCl-d from rcnew~hlc hioma~s: 

and il d~f,nes "renewable biomass· \(> indude "animal waSl~ muteri31 and anima! h'·pnxluCIS." 

The amend"'~nt mad~ by subst.-cI;on (e) WQuid limil tile t~m' 'animal byproduct,' 10 

Ihose byproducls (hal ha\"~ no C()m"'~n:ial JU~. TI", dT",,( of this ~han.!>~ is 10 clud~ from th" 

lenn animal f:lts u~d in ~'On"nen:c; mid in lum the efTecI of revised tenn would Do: IhDt ,,,,;mal 

rnls would [\{It he eonsid~I\'<.l rCIlc,,·ahlt biomass. Wilh Ih~l. omas~-m.s..'<.l diCS<."1 mu,jc from 

anlmullilts "oulilllOI be P<l" of the RI'S2. 
272 

Statement of American Cleaning Institute Appendix C 

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An Amcndmcnt 

To t~~nlpl ~"inlul fal5 from "aliornJl ~n~"al>l~ ene.,;.v taX C~d;l "od sl,,,,durUs l'nlllmnls 

10 ensuw Ihal CmMlC'f'Ciai "scrs orlllCS<' ,"Iuabl~ pru<!U<I> for PUrp<!'C';S oLher Ih." produclion of 

fuel httw rr..., -m"r~i!1 acc..ss IO lhem. 

"SEC. __ , EXE~ wnON OF AIII IMAI. fATS RO~I NA1'IONAl. REN.:WAUU: 

EN.: R(;" TAX CREIliT ANI) "TA AR [) S I'ROCRAJ'oI S. 

Idl of=lill" 40A oflhe 10lermi RcvC'l'uo Coo.: of 198b 126 U.S.C. ~OAl is am ... "L'(\ by-

"(I) in p;;ragmph (I). uddin!, hcfore Ih~ [X"rio.l llllhc ~nd the fQlkminj!: 'nor 

Modic",,1 de,;",d ""Iely or pa"ially fro'" m,i",al (alS': mid 

"(~~ ,n paral>"'rm (2). ~lri~i"&', and from ~ni'"allbl~' . 

"Ih) VOW\.II:UIC E:ri' SI T ... ~ eRr.on mil L"ft N"' 1IV~ FlIEI ... SU~ro" (d)(2)(0) 

of scclion 6426 of d,e Inlemal Rewnue COOt of 19~ (2b U.S.L. 6J2~) i. amend:d bl' in",n;\Ig 

before Ii", period m Ihc end lhc !hll""""S:' e.<cpt (or liquid fue l dl'1"ivl'(\ f .. n", anin,al fal', 

'anim~1 b),prOOo.k:IS': 
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------ ACEC 

STATEMENT OF THE 

AMERICAN COUNCIL OF ENGINEERING COMPANIES 

THE HEARING ON CERTAIN EXPIRING TAX CREDITS 

BEFORE THE 

SUBCOMMITTEE ON SELECT REVENUE MEASURES 

COMMITTEE ON WAYS AND MEANS 

U.S, HOUSE OF REPRESENTATIVES 

APRIL 26, 2012 

The Amcril:all Council ofEnginccrillll Comp~nic~ iA-eEC) is plC'Jscd to offer ItS views on 

lb~ chalkug .. of prvviding itl~""lives lha\ cau help the nalion ~wm~ more sdf..suilkk'fll QII 

d(Jmc..~lically produt<<d sources of o:netgy. \\re ,'om mend th,· Sutx:<lmmiU"" fur ils long·~landing 

3(>Jll'Q;lch 10 sol~ing Inx issue~ in n bi-pa"isan m~nnCl'" Rnd rur undertaking 8 thoughtful 

exploration ofmc issue oflB~ l'xlcnsjons. 

ACt::C i(! Ihe bUSltle5~ a.swciation of A",erica· ~engin<:.:ring jndu~lry. rcpn:5cnting<,w, .... 

5,000 independ~m "ngin=ing comp3nie-s Lhruug!mullh<' Unil~d SImes. ACtC mcmbel'>aI'C 

dirc..-liy en~:r.gcd in [he dcvetllpmen[ of Amcri~H's infrolSlructul'C. Dnd playa p"r1ieularly crhiCIII 

Nic in Ihe dfun \0 c.~pand and upgrade the nation's cnl..-gy infrastructure. ACEC member limts 

reprC>;('nllllc bro.,d spc~lrum of the Industry. fmm 'cry largc flrm~ to mall. famil)'-Qwncd 

Imsin"-<sc.. 0 '''1".111, our mcmbe", employ well ovcr )no,OOO people throughout rhe 50 stal~'li and 

Ihe District orColumbiu. 

ACI::C U'1!CS thallhc wind energy production la~ cr~dit (PTe) be CXlended by Congrc~s 

35 quickly as IIlliekly DS pt)ssible. 111., PTC is set 10 expire ~llhc end 0[2011, and ;1 i5 vilallO lhe 

economy lhol il be eXl~ndcd. Wilh Ihe currtnl threat ofthc PTC's c.lpimlion. wind pmjCel 

dcvdopcrs afl.' tlOllllaki,,~ rlJn~ tin the I1C ' cuastnlC1i(ln S<.~I5Q1' and I!"Ilgml·<,."·ring contracts for 
274 

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Ihe d~>ign ornew wind energypnlj<'<:t> a~ d~clining. On~"ag~in. 111<: wind induSI!)' is fating 

Ihe recum:nceoflhc 1>oro",·bu~I tyc!~ II hlIS.scm in p~"iQUS years when Ihe PTC wa s allowed Ii' 

c~por". Th~ hisI"ry for Ihe yean; lolio""",,S pr..·vious "<p;"";,,,,, is !h~I inslalluli",u dropped 

ocl"'ct'n 7J-QJ r<:n;cnl, W;1I1 cofYt'sf'O,ldingjob I~ 3eTOSS Ih" industry. 

The Ih incentives Rlr wind. 85 well as olhcr l)peS of ~ne",abl~ energy. hoye hecn Iremendousl y 

succ~sful in spurring construct;!)n of n~W prQjcclS and ~ul'poning ceo"o",;c dc\'eIOl'm"~'L Ifwc 

arc lolruly haye an ''all-of-Ill! abo\'t''' energy policy and tn~ouragccncrgy divcn;;]y. wind 

t.'ncrgymu~' he 1"''' nf Amer,.,,' , energy mi~. All MIllis is injropnrd y by Congress' r~ilun: 10 

aCllO .~ tcnd the wind cnCfl!Y PTe. 

11 is CTilit:r.I,hal Congrcs;;c.xlrod Lilewind cnCT&Y produ,,' ion lax cr .. -dil;; for m Iea>L an additional 

year while dl scu.~;;fIl ns Inkc placc on Ihc paramct~rs 01 n rc~sooableph;l5C-oul. nl!~e the 

permantnl lax .. ,."ditsand de.Juct;ons rur fos.;1 fucl~. the wind cne'eY indus]r}" and the 

cng;m-ering form s Ihat Illal support il. ~n: no! s<.:eking an c~IcJ\sio" Ihat lasts indefinitely. 

ACEC suppcons IR 3307, ~ bi·part;:l;jn bill 'Ihieh e~lcnds the PTC through the end 01'2016 tor 

,"ind l~,ef\':Y. as well as <'Olh~rma . ~ydmpOw,;r. landlillJ!M. municipal lnosh. marinl' and 

~ytlrokin~1ic t.'11Cfgy projl-eIS. S",h a timct,qblc provides pretiklabil;ly "hile lllc5C- induwit.'$ 

m~lur" and their robu~t pmgress cOn\;nue LI) sp~ad throughWI all [)l,ns .. fthe counlry. 

In the meaJllimc, !he wind energy I"TC should 1\0\ be alio'lcd LO e~pire PIW ciluseanolherdmp 'n 

!he dc\'ciopm .. '11\ and con~ rucl;on of wind en .... gy projc..,ls. We urge Ihesubcommill c-,:, (n 

eXpWiliou'lly lake lip an extension ofthc wind cncl'KY produclion u'x emil. 

Am lco n (o~n<lI of E"slnnr("s (ompanles 

lOIS IS" Str.et, N.W. 

Wnhin!,on. OC l OGOS 

( OnlKt: Olon, S. U. Dlroctor, [nvironmont & [ urf'/ Pros,. m. 

202_141_1474 

d,hu'h<ec.orl 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.199

May 1(1, 2012 

T.~l;mQny lOr the Rc'Cord 

Submilled 10 Ihe 

.ACES """"---

U.S. Ito"", ofR~pre5en\3\iV\.""S\lbeon"nllloeon Sd"", R~"'l\uc M.,1~=.' 

orlh~ Comm;Ul-""" WaYI' "nd M~""s 

1<>rlh~ April 26.1012/I."ri01: 011 Ceno'n E., ,,I';"g Ta~ I'm,i~i<lI1~ 

On bcha!rOrlhc h;~l'" educaliun 35"""i~\iOJ\S liSll-d below "'pm;cming aprroximaldy4,3(){1 

tWO- and f(our·y~'Ur punllc ami pri,-al': lXlllcgcs ond unhws;I;C', 1 am subll" n;ng Ihis ",nnen le',timon}' 

ftor Ihcft'~oru orlh~ Apri126.1011 hearing on ten,,;n ~xpiring la ~ pnH;,iuns. We appreciall' Ihe 

optJO!1 un;lyl0 hmjl m" ~1cWli 10 Ihc Su\x:')mmiue<.: "" SelCi.1 Re"c",'" Me",u~sOn se"l'Tlli e~piJ<..J 

~!\d c~ririnl!ux pro"ision~ "hieh are import nl to college students and [beir famili~, a. wcl l iIS 

charilabl~ s,,~ng 10 higher I,ducal;"", 

We ~1~ly "uP!X'" ... "ending Ihc Anlcrican Oppommily Ta~ Cr'''''l AO"C~ me.abuH-Ihcline dL-duction foc'IualifiL"" tuition ~nd ",1~tN o!Xl'en-.o; (Iuition deduction). l~ Enlplo)'<!'r-pro_idcd 

Educalinn.1 AMi.lance (Sec. 121) bendil! .. I~ "-'l"'n<l<'<I Studenl Loan InlerL,>1 D.:duCli"", [SLlO). MIl 

!he ~xJl8nJ<.'tl C'ovtTdell Edllcal'()n Savings At<'ounlS (ESAiJ. Each oflhCSC- prt>vi~,ons hdp ma~c 

high....- ed"e'dli,,,, 8c'Cessiblc lOr million" of A,ncrican. and ensure Ihal "ur n.tion will ha,'c Ihe 

<'liUCllIL-d cilium), tile fUlure requir~'$. ~ DIS(I Strongly soppon c"IL~ldinl!.lhe Indi"idlrdl Retiremenl 

Account (IRAj Charil~bl~ Rollover. ~ provision IhaL has gencrnlcd new:m<l incre •• i:d rri\'at~ suppon 

III cotlege,,!, and um",,,,,ili,,, .i c~ ils incc"PIion in 1006. 

Sc'1 to ~~pi""'~ lhc end oflhe year, the AOTC signifh:untlyinlpro""Slhc 1'!l1g!;lllnding IloJlo' 

Schnlarship Cre<lil by i,,,,,..,a..;inglhc crcdil from $1.800 10 $2..'l00. eXI"'"d;ng eligible c.'pel'''''s. 

mak'llg il 3nilablc fQr four rather Ihnn 0111)' tWO ycaT$ of colkg~. in~"'!'3$,"g Ihe in~omc pno""..,ut 

thn.·sh"lds. ""d m"king 1m: ,,..,dil pani.lly ",rutm.ble. AI .. , ""hcdull'tl \('. ex!',,,, th is y ...... rare 

in """ emem~ ori,ginally mad~ 10 S LID anJ Co, ... d~1I ESA~ in 1M E"'lnomicG"' .... tIl and Tn Iklief 

Act oF100I. lfnOl XI ~"de-d. SLID lI'ill b" llrast;ca lly limiled by rruuccd i,,,,ome Ihn:shold. lilld a Syear limil and Coverdel1 ESA, will ~ven!o allowing only S500 In In_free "nm,al c<l" rihu ion~ 

Icurrelllly Sl,OOO). Th""" l"';I,<al 1,,-, bc"flelil< are loil",ro 10 ~elp £lUd<1liS 3"d Ih~ir r",~ilic'" ",;mage 

the C<)$I$ of C() 11 ~gc auenda""e. 

In lIdditill<l. S", . 117 lIill upire in its entirety Ihis ~r, Originally enaclc.t in 1978. Se<:. 127 

.11011$ cn.pl"y= In orr",. up 1,,$5.250 in tuit'"'' ass;"lan~~ to ~mpl"Y"l'S Knnually. Th= fund. oITer 

I~X bcndiu 10 1>0111 ~mploy~ am! ;;lude"l employees. Accnrding 10 lhe ,"O,! lttcnt .\·nilablt 

l}ep,mn>cnl "fEdu~~ i"n wtla. lile ncarl)' "ne ""lIi"n "",eric,,, "'Jotc,... who used U1;s tuilion 

assislar><.:c in lh~ 2007-2008 nC"lldcmlc )'t'ur ha..l an 3l'cmg.c nnnuRI cmplo)m<:nl camlng;< nfS42.711. 

~OrdetlW W~ OC200J6..1!9J 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.200

Tcs';mony for 11~3n"G 0" Ccna;n 'riri'l!l Tas Pto,isi"t\s 

r"llc2 

May 10.2012 

'"is provision has been an imponanl mt'3ns ofbuildil\!! ~nU adding 10 lhecomfX'1~IIci ~"!I ofihc 

workforee. and is 8 criticallool 10 help ournuli"" 3CI...,ler~ c ils cc""o",k en,!!,nc. The lOp majors 

umong r~cipi.lIl$ oftax·f~c lu"iQO include ~ienCl:. t.'Chnology, engint'<.TinB lIIlJ mathemalic);. More 

than 35 percent ofdcgn...,. pu",,,,,d by cmpl{}~~5 ",,;nl\ etllioalioll =L<l:Inc~ sr. m3.'I""'5 d~~.:r~es. II i~ 

~.,.senli~ lh~1 S~. 127 II<' ~~l""doo as SOQf1 3~ pw.;siblc ro provide ""ru.inly 10 cmpIO)<n and ~Iudcnl 

emp!oy""" as I).ICY n,>II<c. rlans r".the c<),ning ycar ""d beY'.'nd, 

Two o(her I~~ pnwiS;()1IS ~'q"ally imporum to hi[1her ~'ducaliun - (he (uiliun deduction ~d (he 

lit" Charilabk 1I."lIowr _ c~pir,'" alll1c end "f laS! ycar. The (uili"" dC<lu~lion allo"'s sludc'Tll. or 

parents!O d.'du('1 up 10 $-1.000 in cligjbk high." l'd..c'dlion e .• pcn,;.."S from Ibeir la ble ,"eomc. like 

Ihe AOTC. the luition d,:duclioo cnh""cc. :ICC"'" I<> highcrC<luC31ion by helping 10 reduce 1m, ellol of 

~t1cnding college. Th. lui lion deduction 1$ p"rtii.'11larly ben~tidalill gradu3le Iu.:lenl ~who!lr<: 

ineligible forthe "OTC. 

The IRA Charil~ ,bk Rollover pcron;!> IRA IIl1'ncrs "I", a", al kasl 7() Y, yean; old 10 m~k"la_,_ 

f= dooatinn! 10 clillihlc ch~rilie.. ioduding tol!cj;e, ~nd un"<nlti~. Since it "11~ tirsilnSlillllcil in 

21.)06, Ihe IKA Ch;,nlable Rull"""" ha~ Pf'Jwn \0 be ~ alt ~,bl~ charil~ble giving ~x inc .... lI;'·C lhal 

sh"uld be e~lcndcd I" help ~Xllk!lc~ and uniw,-,;ilie, gcncffilc no:", Of incn: ... C<l charilable c'{)nlrihulions 

Ihal (,"In be lIscd '" a myriad ways Iii !>onefn 8\UdomIS. Signili('lIIl1ly. 5urwy cvidcnCeQfpasl IlI.A 

roll"wr Sills II> ""rcampu""" ",waled ~131 8 primlU)' u<c of.ych gin. by insliMi",,, ho. b<,,,,n st"d~"1 

financial aid. h. lollS" impair.'<!the ot>ilily ofwllcgc, and uni"c,-,;ilic'S III riI'~ .h~rn~b c llnd~ al II 

time wh~" pri"aJ~ suppon is ;'''''''lISi''~ly imponant 10 ~chools slruggli" l!.l<lll'ca(hcr d,esc challenllin.g 

l.'CotlQmk tim~" uncenn;n "'doWm~nl ""um>, and ~w"' dcclit1<!5 in ~13 1~ .llPrO(1l'ia lon~. 

A lIof\h,·", lII., pro, isions enhance ~cCt.'5~ 10 higher educalion Ih ... ,ugh di .... "1 ,uppon 10 

sludcm~ or thdr familicJ ~nd indireclly by helping !;CnCrlIlc charilabl~ donalions 10 ~oll<'l!t and 

unl\'cn;itics Ihot arc fl1:lJ"cnlly u>Ctl (i> sul'fl"t1 insl ilulional 'ludenl financial aid. We Ih. ~ (Ii<.' 

<;"mm;llc0 tor Ihi. opponunilY 10 submillhi.< Sialement tOr lhe h''lIring re<.'ord ~nd for cUf'l5idermi! our 

,'iews. 

MC'1J/ld" 

0" b.:halrof; 

Molly Coril.:u BroAd 

l'n'5jd~l1l 

Amcrican A~wcia io" "rCnllegiale RcJ,;istrnrs and "d,,,, .. io'" OfficeI>' 

"'meri",," A,;,;oeialion ofCommunily Collcg.:s· 

(\n"";C:>I1 Assndaliun ,,( SWtll C"I!Loges J~d Umvc",WC$ 
277 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.201

Testimony for Hearing on Certain Expiring Tax Provisions 

Page 3 

May 10, 20 12 

American Council on Education 

Association of American Universities 

Association of Community Coll ege Tmstecs 

Association of Jesuit Colleges and Universities 

Association or _publi c and Land-grant Universities 

Council for Advancement and Support of Education 

Counc il of Graduate Schools 

Hispanic Association of Colleges and Universities 

National Association of College and Uni versity Business Officers 

National Association of Independent Colleges an d Universities 

National Association of Student Financial Aid Administmtors 
278 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.202

Statement of the 

American Farm Bureau Federation 

TOTHE 

(lOUSE COf\1MITI'EE ON WA VS AND MEANS SUBCOMMITTEE ON 

SELECT REVENUE M [ASURES REGARDING: MEl\IRER 

I>ROI'OSALS RELATED TO CERTAIN TAX 

PROVISIONSTIIi\T EIT HER [XI'IRED IN 2011 OR WILL EXPIRE IN 

2012 

April 26, 2012 

... __ ... 1_'_1_ .... _1 .. Il0l_' .• __ ,_ 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.203

The Aml"litan Parm rlure~u FeMrution appn:cill(eS h~ l'Pponunity III fik Inis ~\(llcm(nt on Itt;( 

proyisinn~ Ihal cilh", ~.'pi",d 311he end '1r2nll Qr wIll ~xpire 31 Ihcend "f2012. With more 

than 6.2 milliml member l~milil"5 , uur Qrg;mi7.il1iuT) «:presents ~ diverse mn" .... ofal:ricullurtll 

pmduCL"f1 ~n.d sllpponcN; from all SO 5t;II,"5 und Pllertll Rico, ACl il'n by Congres~ t() ~:<tend 

many important tax provisions before )'cncnd is LTil;calto our. 

Ikfnrcdiscussing prO""IionS !Yl'i~"lly C"ltl:ori~L-d as nl'iring 1:I<:callSC "ftheir ~hQf\ tenn nQture 

()1" history tlfmullipk extensions, Farm Bllr"'du "'Quid like It) cmpha.>iz,,- Ihe imponancc of 

extending Ihe t llmn! estale IhX cx"mption. When cstal~ taxes on an agricullurol bu;;incss exceed 

cash and olher liquid aSSCI$. surviving family panncl1i may be forc~-d to.seIlIJnd. building:> or 

equipmenl ncecll-d to koep their businesses opcmlil1g. This nm only Can cripple a fam, or rJn~h 

oll/.'l"3tion. hut alro hUrlS Ih~ rurnl.~'mmunitil'S and business .. --s Ihllt agrituhure supports. Other 

importanl issu~s include Il1ainlainingcapit~1 gains ta~ rales, indi~idu:,1 inco",e la~ ratcs and 

holding the Ahtmo i,,~ Minimum fox hannkss. 

Inccntivcs Ii)r Ren~"'ahls Energ)' 

Clean. renewable. domestic energy will help America achic\'( 1000g·term economic gro",h. 

creale ~ eleaner envirotlm~nt and shield the tcunotny froln ttnrdiable forcigJI "Ilsrgy soun;es. 

Amerknn fanners nnd rnnchen; are playingll bigger n,le in :lu[l(llying Ihe nalion with Ihe energy 

11 n~cds through Ihe production of3t!riculturnl.bascd. r~ne\\ablc ~n~rgy rdourees. L.:mg·tcm, 

c)(t~nsions ufren(WlIbk ('IIcr!,":y tllX inL'e\l1in:s arc n<'Cl.Jcod 10 boost renewabk tcchnl'iogic;:and 

suppon del'slopmcnt of the market infrastructure ncce.~s al)' to make Ihes.: technolosies mOrC 

COOlI'I-,\;t;Ie. In addilion. the long-Icm, extension ofrc.newablc energy incent;ve.-; w;n ,,"sure 

illdn.stry ~Iability along wilb oUl1lcling Ihc-cupitnl neccsS<lry tu l'\!ali7.e th~ benefits nflong-lcnn 

planning. RCllcwablcencrgy Ia.x inccnti\'CS thai should be c,'IteodeJ include: 

Biodicsd and rcn~wllble biodicsd la~ i~~'1I1ives; 

Small biodicscl produc~'1" lax credit; 

Til.\" incenlives for dicsel rucl crealed from biomass: 

Tn itlccnlivC5 for alternative energy refueling property; 

Cellulosic bioru~ls prOOuC<.'rlax credil; 

Pmducliol1l1lx cn.-dit for p()wct" from wind; alld 

f'mductioula.\-credil f"r power from biomass. 

With heJlth insurance premium~ un Ihe rise and b..~,elits~m the d~clinc. self-employcd 

individuals. including most farmlTS ~nd mndlcl1i. cuntinuc 10 find il difficull lu obtain atld afford 

ItCllllh insuranC<' caveruge. Cnngress rccognir.ed the need 10 make cO"emS" more II!Tordab1c by 

pcn"nncntly allnwing ~ deduction for h~a th insurance premiwn, against income la~L"5. Wilh 

1T\:my producers paying as much nr more in se lf..:mploymenl tB.wS as incl'me t8;(CS. il i~ 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.204

in'pI'r1lInllo.] I\'in~lllle 3'ld extend lhe deducti"n lor health insni1lnte premillms againsl !<Cit: 

employmenl taxes. 

Th""lIilily to tlctlUCI eXll"n~ irmm."tli,'cly instcad ofllaving to d'·pR-.;iale Ihem ""cr lime 

improves cash 110,," and all()ws rarm antll1lnd businl'S,;c~ 111 Ix\l~r maleh incume and ("xp:ms~s. 

5.:<.:I;on 171l alll"'~ ~mal l bu!;o.]e5St:"l; 10 expen;;e the co.;t of qualilkd pro"'''y;n the yellr 

pUlchascd in lieu of deprecialion. HOnl~' d~pr~""iation ~i\"Cs bu.illcsS<.--s a way 10 wril~ orf 

addilional c~ll<nS<!~. Enhancctl S~etion 171l small busi cS~ e.~pensinJ; is especially important tu 

f"rm lind mneh hus'I1~~c~ and should be extended. Bonus dCrre<:IIl\'on i~ al>o '"alliable in 

instaJ)c~;; i",,,lvinS Ihe l'Ulch;."" "fn~,," equipment. 

Five y,:ar Dcprtti'l1in" ,,(Fann Equipment 

Agricullureis on ~"qujpmcnt-inle"s;\"e ind~lry with ncarly SI30 hillion of slock in lI~e during 

any given y<"'r. Id<"lly, Ihe allow<'d "umbo.,,. of years I() dt'fln:ci~lell pi<'C~ ofbusinl'S~ m3chin~ry 

or lXtujpm~nl should mUlch lhe pcriud of deb I serV;tt so Illal lhe' 13.' benefils Cnn be used 10 

r,nance payments. Surveys rronl USOA 'I; I'~ml Scn'ic~ " gene)' su" c~ show. on avcl1Il,'C. 

farmm und I1Illi:h~ ;;nance b\lsin~s C<juipmC1l1 und muchin~ry filr Ii,'c yc~rs. fi"e-)"<:"(lr 

de·p",-.;iation "fram, l"lU;pmcnt ,huuld Ix ri:in<;tatcd and ,'cnd~"tl. 

1o.·lodif'C31;Qn orthe TaN Tn:JlmCIIl "rCcn~i" r~y!T1em< 10 COUjrolli"g r""emlll Org~"i~.aliolll' 

Inlerest. r,-nts, royallk~ and anllllllic$ (i ,~ .. paymentS ofpass,,'c [ocumc) arc gcnl-rnlly recCIV<'d 

fr~ or'a ~ by cXc"'rl org-~nizUli(lns. Und~'T Intemol Rcvc"ueCodc Seelio" S 11(b)( 13). however. 

Ih<."i\C payments are SUbJCCllO ta ~ iflhey a~ rt.'\."ci,'etl frum a ··tonINI!;,t1·, ()~;",i;l.~lioo ("./1 .• ~ 

sut>sidiary). Fair markel provisions provide a ("(,",lSonab1c and r.,ir w~y (0 dClcrmine "hen 

Unrelated All~{{"Ie;;> Inem"e Tn~ (UBlTj is owed and ~hollid be re,nstoloo. extended nnd ~",cnded 

10 c"Q"L"1" new contracts bclweL~l lax·e.,cmpl parent organi~alion~ and Ihcircolllwilcd ~u~idinry 

org:.mi?.atilmS. 

Ehmi"~lion orTIlX ,m A"artis unMer the Nati(lnul Heallh Sj,,,,,ce C(lm~ SCI\(I!arship I'n\grlim 

In<li,·iduals living in ruml ~nd i~in\~d un."" face spn:ial chnUc'""lIges in receiving !imely, quality 

health care. The~c ~":as <)ft~~, ~unCr fWIII liQrtag~ s <)fphy~ieian~ a"d ()lher hc:)hh "arc 

pnl'"id<"1"S. and the C()~ts u[prcviding '1ualilY hcahh c~re in a nlr:tl h.",hh ;nfr:t>tructu~can 

c.(lend beyond available n!SIlurecs. 1111:." 1a.~-1re" tr~almem ofseholarshipsllwBrdcd tQ nealth c:lrc 

proviJel"S " 'h,, agree to practice in undc~r,",'d ""'as should be !!>.tcnded. 

Enh'l!l£,"tl Ch~rit"l h! 1; Dcduc!i()n for C1)lHrihu!i"n< ()[ Food In ycnlory 

501111." [anncrs aud r.lnchcr~ already doualc glcanctl [ood 10 eharilab!c Qrg"nf:calion.s Ihal l"ct.-d ,he 

huugry. Many mtlre ",ould ik, Si' if they are ahle to I~~C 11 la~ tk"tluclion thai ,,"ould help Ihem 10 

, 
281 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.205

COlier the e)!.~,~ ofharve!\ling. pmecssing3nd trJnsp!lrtlltion. The cnhan~d charitable 

deduction for dnn31ed r",>d f\lr non-C cOlpoxlIlions 5holll<1 be 1\"'in~tated, cstcmlc""<1 end sh'luld bc 

\pandt.-d W that cash method I:'nne", (,,-ho do no! usc " ... "noalaccounlingJ ",m lake adyantage 

ofUJ..x incentives [0' d'lnating food. 

C(>ntrihuliOl1s nrCar>ital Gains Real rr<>llCny Made for COIl<;<:,,·ation Puo"'<eS 

Ea'il'mcnt~are an imponunt 1001 R'r cOnserVing 'l", n~(ion·5 't....o"retS9nd saf.·guurding (,umland. 

When fa= aud rJJ)Chers voluntM), >lo!,atc coost.'f"IIaliun ea$t'(!)eUls, (hey pre-s..'l"VO farmland for 

fUlure gtn~rdli(ms by giving: up dcveJopmt.'!lt rights whilt "'Iainingown~r:lhip and managcme!\l of 

Ihe land. ·Ille ~nh nncC"d deduction for donnted cO!J!iC"'ntion CI1.'em~I1!S should be reitl~wt~d and 

ntended 10 gl'-c farmer;; and rnnch~rs 81) incentive 10 prest:,,·c f:lfm land and in t"l..-;;ognilion oflk 

n.-duccd ,"alue ofprotcCtc<l r~rmlllnd. 

R~ilr<,>i!d Tl'!\Ck MaintCll'lncc Credit 

Shlll1 line rnflrooch;- 3n: a ("-edc, ~ysWtn ro, la!);e Cluss L railroads. pi~l:il1g lip ", ddivcringonc 

(lut ofcw1")· I"our ",ii ca~ movinll 011 (I>e nalional miL nelwork _ They offer 81lriculturnl producers 

movinl1 commQdilil'!; 10 market an alternative to truck transpon and allow prOducers to rt:~ch 

market> far beyond Ihul In which Inlchcan reuch in an I:.:,,,,omic manner. Th~ tax credit i,)T 

track mainlL"I1anl:e should be re;nstaIL..:! and i:.\tendc-d. 

, 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.206

ST"TF.I\I ENT FOR TilE REC ORI) 

OF 

T H E AM·E RI CAN INSTITUTE OF A RCH ITECTS 

··CERTAIN EXI'I R I NC T AX P ROVI SIO NS" 

B I:: .. ' OIH: 

TUE U.S. H OUSE Of' R EI'R ES .:N TA 'r! Vl:S 

CO.,\I M ITT.: E; O N WAYS AN I) M.: ANS 

S U UC OM M ITT.:£ ON SEI. ECT R.:V.: NUE MEASU R ES 

A I'RIL -26. 2012 

I7JS N.:", V"rIo: Av ... "ue., sw. W~.nj,,~t<"'. DC 2UOQ6..521J:: 

~02 -1.2t.-7 OO 0 ","" .... ia_Mi:-
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.207

The Ailleriean InSlilul~ ofAr<:hill>t:IS (I\IA) app..,cinl~~ the' OPl'OnUnilyt<l SUbmit Ihi~ "Wtement 

fur lhe =urd 'llld eumm"nds the SI,bt.'~mmittl""5 work on the critical issue ore ~piring lax 

provisions. 

Gi\ l~J lhe crilical ~conomic. SttllrilY. ~l1d ~lIviro,'mcl1lal ('ollsid"'~lions sUrTO,LI,ding the- ~lIcrJ;Y 

$CClor, ttH: ~wofenergy tax PQlicy is an inlpon~nl cOllsidcrJtion as ~tcnsionsarc considered. 

Ahhough there a'" ",,,ncrollS lax policics Ihm ;mp"ci en~rgy polic)' and lhe bu;lt environmcnt, 

our S!.ltC)1lCnr roc~'" QI' all cn~r)!.) cfri ci~ncy lIJ,d co,,,,,,rvation ta.~ provision, the Ener.:.}' 

Efficienl Commercial lluilciinsOe<lIlClion. II'hich is comained In !iCclion 17'10 oflh;: Internal 

ItC"':II"" Oode, ,\lthough not an l'Xpiri'llS pr(}>;si<'m this )~'m /It is,..,1 h~ ",-pire in 2013). the. AlA 

high ighl~ Ihe 179D dl...Juclion as an nampl~ ofollc provi~ion in Ihe tnergy lax fnmilylMI hIlS 

had a dcmom;tmblc eIT,.,;1 Oil efl(rg)' cflkkncy investment, doml"Slk l11~nuf3c1Uring. and design 

~nd consln,el;"n induslry JOD;;. 

The 179D deduction ha~ Icv~rn!:('</ billio'lsof doll~rs in pril al~ capil;,I. r.!Sult,'i\ in Ihe cnerl',)'-

ct1icicnt 'On~1r\lClion or ",novalion nhh<Ju>and, ofhuildillW;. ~l1d crc;ltcd or pr<;$(rwd hundred~ 

of'housandi of jobs in Ihe. J>fOC"SS, Due to itS suctt!i!i in Ih~ r.~ld, 1791) is a &I>Od indicu'or nflhe 

posiriw impact eXI~nsion> of",n~wabJe ~n~rl,ty and ~r.ersY ~meie"c}' incen1;"e~ ("lin lIavMl/l Ihc 

""ooom)'. 

In rfi'QgJ,ilion Oflhc benefilst)fIIN: SC'C:lion 179D droucliQII. tht:re have b<'t:n rdonn proll<l!lllis 

ofl~red in rccCIll ",,,,,,Its aim~d al funher ~nhlJlcing Ihe illlpormlltl~.x bend;l. Th~ AlA sopport.s 

refunn Orilic 17QD dcdl,elion 111;" m~h"S it simrlcr and more ae~·t:ssibk_ As th..'SC diScussiuns 

prc)!.l"'t"S$. III.., A IA also Slronglyurg£S C:onl!fCSS u' consider enhanc~mcm.s 10 17(1) ,hal w"uld 

provideJII ~rrecti\ e alld ~mcien1 "Hy IU I'I1cournJ:1' il1ll'Stllll'l1lS in ~lIerJ:.v~rr,ciency, stimulating 

construction activilY and jobs- duri ng Ihi~ fI<I~ile lime in the nalioll's e.:onumy. 

Tht AlA rcp~~nls Ol-tr 75.000 nrchilects ~nd emerging [lI"ofcssionals n~lion\,ide and ~ruund 

Ihe ",,,rid. As ~ Ic;ld~r in the d('Sit;n und <:Ql~'tnll;th'n induslry, Ih~ AlA ~upl"ms inccmivi7jng 

cncrg) "fficicncy in a tn)riad of WDyS .. but particularl)' through provisiuns li~c I 79f), Ilml hal-e 

pm>'e'n 10 I>e quite sue.:¢Sifulin the iield, 

Tile A lA slron.:l)' supponC'd Ihi~ provo,iOll ",ht:n it wa~ ellllCIW a, JXln ofthl:" Energy I'olk)' Act 

of2005. Th~ AlA -also help<'d rom, a p:lMnership wilh (>III"" ~onecmed ~la~dlOld~1'$ and IJlrou);li 

Ihis p"nnen;hip. d~\"elop"d ;mpl~ml:"n""liun te<"Ol11mCndJliur1$ rur building owners 10 obtain this 

la~ dL-dUClioll. In 2008. lhi: AlA helped pass legislarion IQ ~tclld Ihc lik uf the deduc!ioll IiO that 

;t .m'crs property pla~L-d in service by O~e~",b"," 3 I. 2013. i~1I <.l,me y"ar, at the AIA's ill\:;n\:. 

lilt lit" ">l'\;>1 !{~iWIICC oni>ow the dcduclion could l>o: ailocaled 10 tile d('S;)!!K:r. 

The AlA wa~ plcaS<.-d with the iojlial clarif,cmioll thallh;. IRS guid"""" p .. uvidcd, and ",a"y 

agcncio On Ihc fcdcml. Slate and locnl "'vd~ followed Sllil by issuin.g polieicson 11K: .1llocalioll 

Oflhi~&duction. 

- 2 . 
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H~tkgr'" "d on ~t lfn ll 17!JU. thr Ene'll" .:mticnt COIllII ~rd~l ng ~ductilln 

Th~ En~..-g, flliciC'nt Commcrcial Buildi,,!!. [)eductiu" was nca!<:d by the Energy PolicyAc\ uf 

2005 (I'ub, L Nu. 109·581. in l"I."eollniti»n oft ...... Cael tiM a 5uOstal11iai poniun of U.S. CIII."I)!Y 

consumptiun Ii' ~!\ribulablc 10 com,.,crci~1 buildin~"J and 10 provid\' ~ ta~ i"ttnlivc 10 help ol1.S<:l 

1101." c,,"~ 3~:;oc a1L"d wilh ~nhancing II\e\rcnl."rgy cl1i~ic""y_ ~c\ion ,790 p",vides 0 ,k .... uoliun 

lor cenain cr~y....,mcjenl commercial building prop"ny ~"'p"ndilu",,,. 

Eligil-I ... p"ndltu"," arc fll' pTOp"ny which is: II) in~l:Il1cd on Or in any building tbl i. "i[hin 

Ihe SI. ... ,!* ofSlan.J!lrd 90.1-2001 M lhe Amcrican SO(:iclyof ll ealing. Rcrriger:l1ing, and Air 

CondilioninJ!,EnJ;ineers an~ Ihe illuminating Enllinc..,rinS So.:idY of Nonl! America 

r'ASHRflEflESNA '"); (2 ) in~lall<:d liS ran o(lhc (i) Interior ligluing sy~tcms, (i J hrollnll, 

co.1Hng, \·cntilnlion. and hhl \\~ncr s)~lem •. or (iii) buildingC111'c)0PC; nud (31 ccrtiHc:d ru; being 

instDII<:d 3, p,ln ot""a plnn dCS!j!J1ed to reduce IOwl nnnunlc'H.'rgyand !l"'wcr C\"'SIS h) 50 pcrctl11 

or m..-.re. TIlt deduction is efl~li\'c for Ilrop"ny ploced In .\oI.""'ic~ prior to Jnn\J~ry I, 2014, 

111<: ma.~im\J1H deduction is 51.~0 pcr fIq\l;\re fool. In Ihe ~a;-~ Ihal:! bu il dingdoc~ n,11 111,,<:11110,,, 

50 pcrel'l11 cnc~y snvings requiremC'nt, a partil)1 dl.'dLH.'tion of 511.60 per 5q11n!"c fOOl is 81101l ~d 

f»r ~~dl ,';(:lXlfUl<' buildlng5)5t~m tl1M eOl11pris~s cncrgy-e lll cient property and Ihlll is ccrtifie<l 0lS 

'"e<;'tinl:-",quin.od >:l~ing.~ Ulrl:-el5. 1"0 cncourag~ the puhliC' ~Ior \0 u!iliu Ihesl mc ~nN£) 

efliden! ... hancemcnls. 'he· 17/)D deduction !Ilso pm¥idc:s u federal, .'illite, or I~I ~'{)wnll ""l 

owner ofu commc'1"t'illl huilding an cltttioo 10 allO(:ale Ih., Ul.~ deduction 10 1m, primary pcrS(1Il 

n.-sr<!nsibl(' lor ~~s;g ni"g Iheenergy eflidenl enh:l(1 ..... menlli in.lall ed in Ihcbuikliog. 

Buildingollncrs IIho 'l~C ad\"'I1'11~gc of 1790 MI <Inlyenjoy ~ deduction for 'Il<llifying levels or 

ellidency bUI ~150 enjoy gll ificamly IOw ..... l~lcrg..Y l'OSIS down Ihe ru:w. Ihe bcllC'fils of lead in"" 

l .... IlC dl'S;gn and C<)nslruclion IIhich cnhan\'l'S Ihl' building.'J lung Icnll marh·t qluc. and Ih.: 

bclll'li\S of a clc.ln ..... l·nl';ronmcnt ol'crull. OWII\"rs h:we lIlilizc'l.llhc d~""uclion for both n~1I' 

cons!ruclion proj~X'!$ and rtlrofils of~x sl ing buildin . 

AllhO\l1lh ~ public C'l1tit~ eannot \Jk~ advulllUgc of Ill\' la~ proc~ .... ds from Ihc 179D deducliull 

allOl;a,ioll, il lIill also "-X'ciw o,her bencfits in Ihe 10n11 or l~,crgy savings :Iud n,ar\.:cI I'aluc. 

911.-11 W~1Iin!; mono' than Ihe dedUClion rroc~ed5 nxcil'<:d by Ihe dt'Sign ..... _ 

The ave"" ... 179D PRJjl'<.:I !)'pi~allySO_601 sq. fl.. ror lighting upgradt &:"e~ 8J1 u&C'ncy an 

avcrn~ ... nf20 percent on Ihcir('rn...-sytx!"'nses. Ilowcycr, evcn in cas"", where thC'"' 0'" minin,,1 

urf\.-.wk." ~1 qU:llify fhr INO, agenci'" ha.'': sav~"" reialh-dy lar,lW amuums. 

For e"ample. "hc'n II ",iddles<:ho()l <c1 ,~U110 reu"f,1 il' ligh ~ }'I~m. an ch i(~"=1 1I'<)rJ.;cd (" 

find 12 per....,nl energy ~avi gs jll", on Ihal si ntYc Iil;hllnl! ~y,;l~m , Thc syslcnl lhm qll3lified lor 

tI"'- 1790 p:trti:tllighlini: de~u~lion , In ...... Iurn, Ihe school s::.ve.J 515,000 on il~ energy hill in Ihal 

y"nr alone. It SllVed e\'cn more Ihe next year. H,Id will ronlinue 10 SUI'<." c3ch y~ar. 01'1.'1" 10 yeaTS. 

Ilml tot~l~ 10 o''''r 5 150,IJ(KJ. f(lrn single .ch'-"11 , School di~lriC\s Ihatl~ki.' Mvanlagc ot" 179D for 

r,,·c. 10, or20 ~e oo sC'l\ n ~'H' millions of,Mlnrs over 10 }~-a/'li. m no alI,jilional COSt to Ihem, 

bccll\ISC Ihcyc:m Ulili/": Ihe 179D deduction 10 li nnnce II\,.- additio,ml cocl)!..v sminJ;S. 
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This cxample illustrnl."S th .. intpa!:t()fju~t 11 ~rc .. .nl en .... gy saving:; in a ~i gkschool. Thc", <= 

hundred, Ilftllh .... ~a)upk"S of the dl'duclilln prnl"idin!, ~V .. n greater bo.-nctill; to school districts, 

:lnuy 1xL>~. civic JlruCl u",s, mtd ol h~r publidyo",ned buildings Utros~ the nation, 

1' r(lI'<>s~ ~ ,,, Iml'rll\'f tbe 1790 LUduetill n 

Theil: ha"c bl-;:f1 r.:fontll'Nposals l'fTcl'\.--d in recent tIlolllhs aimcd m fUMber c"lI;tllciltl; this 

imPOr1""t ta.~ bcn~r.t, AlA sUl'pons l'Q'nf!lon~ltsedlbm UI<U m~kc 1790 m!)!'! USlIblc, 

cffl'Cti,c :md simpler, As III\:SI! discussiolls pt'<)grcs~, til(> AlA, in panicul3r. wongly urj,'J:s 

('o,,~ ~ to lvn.<idcnJrrl'" I.e)' impro"l'l"-~lts 10 I7'1D: (If ensuring Ih<: ability"rpa.'s-through 

entities 10 c~pt\lll: d'e full "alue tJfJn allOXJll'(l d('(luclioll in Ih .. • Casl: ofa publ icowl1crofa 

building; (2) ~"hHncing the \'Jlue oflhe 17'10 dc'(lucli<m;·an<l iJ) "lfo\\in~ n,,>n·prulil OW!lers <If 

buildings. simibrlO public 0\\11Crs of buildinp. III 311oc31e t},e dcduction_ 

AIlIKu/;,IK "'f SI'Clilm 179{) D,'duNi"" '" l/ PII.I'I-Thrll Emil), 

Til<' s<'C!ion 17(1) d .. 'tIlK'!ion pro, ide5 a fedcr.;l, stak, <K local J:Ovl'fl lm~n! Q"""-Tof a 

c'.l mm~",i31 buildins an ck..:!i'.ln 10 aliocal~ thc 1lL~ dc'tluclion to thc'l'nmruy pe=n n:sponsiblc 

r.wde.;ignin~ Ihe cnergs ~Ilicien! ~nhancemenB, In D..",,,,,,b(,r 1\)10, !he IRS .... 1";1><:<1 ~ m~m'.l 

tllal .r<.'\:!iI cl~ pN\'enlS dc:s,~ linns orgllniud as parlncrshipsor S corpor:llio,Jl; from rull~ 

mtliting the bcflCflt '.lfa ~.:ti'.ll1 1790 allocall'ti dedueti'.ln. 

Thi~ prohlem is tlill 'Il"rdy Ih lilrcti~(lI lll"'O!;I 80 perrenl ofu .... hilCCIU("IIllinlll h;!",· f"wer dun 

10 cmpl'.lYel.'$ ~nd a $igllifiennt num~ oflhest smllil hu,<;;nesse':lre orgun ~'\I aJ; p;lr1ncrships 

ami S ''.lrpolUtions. ~I'.l~""", it is ()Ilen lhe:w ~'nall and mid·~iu linns Ib~t work /)I] slUte and 

IQ<:lII sov .. m""~ll projc'<:15 such 1ti schools, 

U)' ... u) of~~gmund, an nlll)Cllled S<'Ction 179D d~duclion is a IQ.~ d.'ducliontiml doc'! nOI 

re'lc~1 nn economic e,lSt to tile l'\.'Ciflient tlxp;lycr, h..'<.'auS<' Similar 10 :lIP~ (l'\.'<Iil. IIIe dcdtlCliOn 

pnwide5 un inc~nli\'e, The ""'hnical13x rules ""nethdes; t1'l'll1 an al1OC'aled deduclilln liS 

.... n<:cting an l'Ct'!n'.lmic COSllo the taxpayer pnd nceOfdingly reduce partnership;ll1d S (-orpomti{)n 

tasabl;: inconu,.""llhe pan"et'!\·!sharehtlldcrs't).1;ls in the flannershi plS cOl'p1)rd!iQn j /,j>" 

·'1)utsi<l<' n..sis") by the JmOUnl of the allocated deduction, The I\:dm'ed '.lulsid~bas; s may fol'l:" 

JlIIMIK.'fli and S oorpord(;On :!tmTl.'huldefll II> rec"Jllliz .. ' la~ableg;l n on (h( distribution of ec'.lnomic 

carninj!.S Ihat .... cre excluded from tax by the allocal<:d seclion 1791) deductioll a; Ihe parll1C!'Ship 

and S corporJ(iotl lewl. The IRS m<:nlO Slaies Ihal. ilt Ihe abs..:l!CC or~xplicil ~lulory authurity 

altowing for h:L,is adju<lmcms to pll:Si.'rw Ihe bendil "fllT<: dcdu<;lilln allhe P:lItncri>r 

sh3",hold~r I~vd, Ihe k",hnical (ax n,l~s govern, The ~ .. ult will b(,thaL in the cas." dmany 

parillerships and S corpordlions.the b<oncf.t of!hc !<i.'Ction 17'1D IkduCl;on "'ill be I'.lst or 

si8,l1iliclmlly diminished, This will h~nn I1Ilt '.lnly Illest fimls, hul ,,100 lhe scho.ll districts ~nd 

OI/oc.- public cn(lti .. "5 wh'.l own Ih,' buildings, 

In ()Nc.- for par1llCrshirs and S corpomlio!l~ 10 Oblaln Ihe inlended ben"fits. il is nl'l.'Cssary for 

panncrs and S corporation shal'l:holderslo obtain n basi~ in Ih~ir flUnncrship.< and S corpornlion~ 

Illal is nol n:duc.~l by hll al1O<."Jted 1790 deduction, Thi' i;;sue could be t}d re~:ICd by n iltlpl t 

'nooificati,)1l10 cxprd;~ly ro.:tuire Trcn~uryl(l issllC regulmions lh;ll rl'OpCrly dtlenninc 

l>anncl1ihifl or S corpora(il)l1 oulside basis in Ihe case where Ihe 1791) deduclion i. allocaled, 

.,. 
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Such 0 cbor;fi(';Jl;on would provid~ cert~imy Md udd,,'ss a wi(i~spR.'IId concen, ~mong Inany 

sm~11 b,,~inf'SS01lhal dl"Ji~ en<'l'llyrmcj~lIl huildilillS. 

Elihu",';,,!: Ihl' Stt'fim, J 7fJD ~lhl<'f;"" 

Til<' imp;ICl orllll. set:tiun 179D dcdncliun h..-; bo.'t:omc mulrd uvrr lime, The maximum 

dedllCliun "rSI.80 pi.'f s~uJre rool has nQl bo.... n i'lCfl'aIll'\l sinc~ lhe d\.'tJUClit)l1 "<IS pul in plal~ in 

2005 and. as a fl.osul!. has II<lI kt'pl p.:Icc Wilh inna lion. Moreuvcf. as ihd l'cunQlnyand [inancial 

mllrkcts cQminll~ llleir lragile r~o;:owry. lhl' amoul1l or capital :wailablc rur builcing(k:si~. 

construel;on. am! renovalion wl11illues IU be limill.,j. A R"'~flI AlA SUfWY of archilcX'llIre limls 

sho"~ ltwillcarly lw~"'hirds rep"" Ihut a lac~ oflinan<:in); h'~ 510;>,,"cd orstuppo:t! cUll51rucliQn 

pmj<X'lS Ihal ''')lIld Cf<:Jl,' jobs_ OWn<:f1; nrc alw less likely III im'l'Sl the uprronl capilnl cOSIS 

as!if)Cinlc"<l "ilh ~n'''~v cOicicnl s~ slcms. "hid] On ~JJ "'" SQmc"hal "'0'" c.\p<:nsi,c 1<) dc"Sign. 

build. and inslalt lhan Ih~ir less cfficicnl cllunlcrpans. 

In 20 10, a coal ilion of nlO'" than SO org:mizalillilli alld tompnnit'S called on Co~g.ress 10 incrcas.; 

tile 1790 dftlu~lion lrom lhc l'u~nl nm~imum allo"abl~amounl orSI .SO p<:r .'oI1(~1fC fOOl 10 

$3.00 per sq!l:lr~ foot In the ca;,~ of rndi, id,~,1 subsyslcms. Ilic maximum 9110wable dcduC1ion 

should be increased fronl 10.60 p<~ square foot 10 fl.OIl p<:r square foot Biplni5;lJ1 kg,islmion 

wns imroduc~..J in boIh chamber.; in the III'" COl1g"OS$IO enlmm:c the de..luclion in Ihis way. 

Enhancing the 179D dedl!i:lion would provid~ un important ~ourceofndditi on31 o;'.lpil:<l 10 

,timulatc building design, tOI1~lruc!ion, lind I't'novutiOJl. dri~ing the crealion oh .. ell-paying jobs. 

Studies hav,' ~ho"n Iha! ~v...,. S I million inveSled in design pnd C(lnSlroC1ion );"!d~ 2~.5 I'ullI;me job~. Moreol'l'r.:In enlmnttd >«lion 1790 d~duCliul1 wnuld funh~r in.:c'nt.vi;tC c"flcfi/.Y 

ci"fickncy, improve III" nation's cOnl nll'n:ial building stock. and incnoasc"nerJD indcpt'ud~'t1l"e. 

AlfI,,:lIfing fht 5«";011 1790 Oedu<'lioll in 'hI' Om: 'if tl l' ·OIl-Pr,Jjif OM'''''' (1/" 8r1ild;"1: Th ... 

179D deducI;on allo(:mion rrovision. which ullo"s 3 federal . sun~, or loc:d b'UYCnll11l"111 011 ocr 

of ~ building lu ull<)Cald lhedcduclion 10 lhedcsi",l~r. has been used lu greal cl"kcl by design 

profl'Ssionals 10 l~leourag"lh ,·i r publk SCl:lor cli~n1:>!O meellhc ern.'fgy targ~IS oflhc deduclion 

:uld 1I1en h:I\'c IIIe clil'U\ assign Ihl1n II«: lnl< dt'ductiun, '111t: !"<"Sull has iIl ... ·n 1\10 ... en~r~' 

cffkirnl public buildinllS.lo" .. r <1'CI"];.Y l'oSIS rur lilt: buUdinj!.ol"lcrs. und la.x reliefrof desigll 

professionals. 

In mall)' c:tSC$. lIon·prolit ~nlilil'S. slich as hillrilals. un;"crsilil'S. pri"ate sehwll. charilies, :lnd 

foulldalion~. condUCI funclions similar to JlalC and IOCHI sovcmmctl\.S. Currently,oon·prolil 

~"lilic5 own IhQu:!'lnds or prop..'fli "S acn.us Ihc~'OUol1ry. Allh<JUgll retrolils 10 11t..'5t' rrof'l'r!i~ 

could rcsuh in si!!l'iiicMl cn~rgy"'1\'ing.s. the non·profil enlille.,. dO!lOl pay la:<o:s and; 

Coosl"lu<:nll}', cauflOt t>cllcntlrom ' he scclion 1790 dc"<luctiQn. 

The SC<:liutl 1790 allocation provision should OCC~P.llllkd 10 rro"ide nOll-proll1 O""eN of 

buildinllS. simil~rly\(l public own~". ofb"ildings. with the abi lily 10 d""t 10 allocalelhc 

dl'lluclion 101"" rri",,,,) d<""il:"eroflhc buildi,,~ Such" provision "",,u(d >iS$i" non.p,,,r!1~ in 

financing l·ncrg}' efficicnc) upgrndn and would ",d",..., Ihcirencrg)" c",IS in lht ionscHcm,. 
287 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.211

C(lndu (\ (1 

The AlA npPfccill e~ the opportunitytfl sulmlitthis Stniclllcnllor thc n:cortl. As CongJ\.'SS 

cunsiders e~piri S t~~ pro~i~iQns, i\ is impl)rI:101 tu ~cu&fli~e the [m[lilC1 1M 179D dcducti'm has 

had in tevl'r"~l',ins private ClJpital and incl"I!"d~illg cnCT1;y-enicicm cunstrUCtiun and ,e,u>vatiun. 

Mode'St imp1\J\'L'Illent.s to the Sl'1:tiull t 79D deductiun WQuid irn:re:1$C the cm.'cliwncss al\d 

cftidcncyofthis important lax poliq. Th.· AlA and ils mcmocrs aM! I'\!ady tuscrve as:t 

,,"'SOurce to Cong.rcss. thc CQm",incc.and the Subcomminee on tk.sc and Qther ;S5Ul'S. 
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AMWCJ.N 

1'11111( 

rIA~j#f)'rAnaN 

AjUWAIIOII 

Chlli",,~n 1'.t Tiberi 

U.s. mlSCof ~'lltati'", 

Com",i\\~ On WaY" on<! Mcnns 

Subcomm'tweM Sci"", 

Re,·.nu. Mcasur." 

1102 Lo"J:"ur\h U,"'''' om"" Bldl;-

Washing!!"'. DC 2051S 

May 10.2012 

Rankin8 Mcm"", Rich~rJ Neal 

U.S. j Inu", or It<))l"CSCftUoI"'r; 

Commiuee On Wa~ a"~ Me:.ns 

S"b.:ootlnil1C<: on Sck'CI 

R"ven"" M,,:uurcs 

1102 Longworth lIowo omc~ BldJ. 

Wa;hinl!lOn. DC 10515 

Dear Chainnan Tiberi and Rankins Member Neal: 

On beh.lr of tho.. Am(:fican Public TJtI"'ll"nalion A\.l;OCi.tioo IAI'TM .od It> 

more Ih ln 1,500 ,n .. ",ber or!!"ni?",lion., I th.nk you I"r h{>ld,ng tile April 26, 2012 la, o .• tenders h<'uring I wrile tu highlighl tIo~ crilie;!! imp<>r1~,,," .. · of "<)tItiouing h.,) 

pollk"ln. la~ provi.ioo>"S, 

AII<ma ,~e cl! Tu Crrol! 

Tr.lllfilNllI1J1"'<>1 C""''''Ut<"l"(p'''.t"'1 Fringr Uonef,1$ 

Se,·.",1 re<ll"f:ll excise la. c'redilS for altcn"li,'" r""ls and related inf"'st""'ture 

"-"pin,d a, [)fDet."<."Il"Iber 31. 21"111. Am",,! "'on! WI."f"I." imp<ll"1"m provisi"". of ,m, Int,,",,1 fl..,"""" Code rena;";n)! to liqu.fied or oOlnprcss.."<l n:tluml p!; (LNQICNO). n,..., I""0"!J"'~ prov"k"<l inlf>O<1"nt ~tTs,-"\S I" InnSi, .geney fud and <lflCT'I~ing to'IS. !h~rt\l y 

5UPll"Minl! i",pro"cd mn>pOn~,jon ->en·tres, as ,,'dl as- . i,Jinj! in job ~\e"lioo and in 

mCl.1ing iml"'rtan! goa!s "r ~ir qwlli,y impm'<:ml'lll and carn.m cmissi<ll1 rcdu<lioo. 

Tl1In,i! I"'JVidc"fl' """"'"' lloe ",,"olry depend lin 110"""'00' of CN(;iLNG·fuclod .-chide. 

In "1"""""~ Ihei. S)'sl"mO ""rely ~nd ctncietl~ y carry milli"'," I<> "lor1c. ""hool. m.,d"'l 

.ptIIlin"ncIII •. and I" Ihcir "" ... ,,. or worship. 

Src<-·;r.""lly, Ihc ""mil induSlry uIl\'"" <uPfl"ll for Ic)lis!.,inn th.1 WtJuld ".,,,nd 

tht SO ttnt 11'-"- g:1S()hne ~~1I01:1 ,-quiv~l('n\ (gg<:) I .. , erroi' f", n"M,,1 gos (bQth CNU t nd 

LNG) used .s a motor fuel veh,cJ~ .nd .Iso eXlend lax ,--redilS tOr the [wi ns 

infl1l>tfUCtun." """t>lary W r""ili,:l\e CNG/LNG utili,..li,>o. P"hl", tran'f">I1o!.OIl 

"Il.<."IlCic" thaI "tHize ""uroIl ga' fi" • pon ion or .11 of their nl,"~ fuelinll "",'<Is h,ve 

c.xperienc.:d . ign ir.e.", buJgel sa" inw; frum Ihi, p",visioo. "",~ fuclinl' .""!!; ~",,"Ic 

impru"cnltnl£ ~I •• wh~ in an .~"cy· ......... itt .nd "1'""lIioo •. Notwitlmonding rurro:nl 

marh~ prites for ""tunol PI, i, ;, ,mJ'O'1;ln, '<) emrh!lSi~c Ih,,, lhl'S<l pr<Jvi~","s ""rl.,k 

public Ir.lI\Sf"J"alioo PIQ'i~l'rS 10 Juslify and IiSCIIlly maMi" h'ih upt""n' tapiwl C<lS1S 

lOr aisocl.,od inf .. sln,ctun:. 

_,10;2,_ 

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--
289 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.214

In 2(11 \, I(lA hilliQn~ ri<l<.." "'~rt lokon <)I' rubHe !J1InS!l<N'\lOIion ruoliOJlwldt - Ihe 2nd higiocsi 

lian"1 rid .. 1">I!'p '\11« 1951 - >I," w~ t>cIic,e Ihal ri<krsllip "'ill conlinuo 10 ~row. \:Iy ~M.ndinlll~ 

\:IX l"'-'vlsiQnSo public l1'Onspt'rI.llioo <~n <."qnI'nue '0 n,"" I"" n'""'-' or ilS growing ridership. "hile 

.... inll i" ran I<) mlu<<" hormrui c"""s<i<)fl.<. e" .. -ndi"g <II< CNt;llNG "", ",.:di, "'Y',fi", th.1 We "'" 

cum,nintd 10 a loog.l""" """'eg)" for cn"'l'y"""urily. 

I al>o II'!;C ),,,u h' ~Ufll'<\o\ p;u11), bd"",,,," ''''",i(/'~np<JOl .011 fIOrI<i"l! /TinKe b<:JI<IiI~. ,.,. )"" 

aft .warc. Ihe Tax Rd id: U....,."ploym<"111 Insurall<.'<': R •• u,hool:aliQn. and Job C~lion 1\<1 of 2010, 

nl,inlaineJ p;lrilY bet,,"«n uan"tI'lOp<JOl and f"lrld"g I; .. ,nofil< 01 $230 pe' n'~nlh ll\roogh W II . 

1I0wo ... ,. ~I Ihe cI(>$C <>f1011 Ihis plIrity lewl was Jllo,,'ed '0 ~'rirt. e~u,i"i h~ Irnoii lllr,l ~pool 

port''''' ,,[,ht I>rntlit (" .... " ... In><~ II' ~ m'~'mum "'-$12~ P'" month "hile Ihe f"i'"king f"l"ion ofo.h< 

b.:ndil '''''''-'''','II '0. ", ... imulI1 "rS2-W 1'<"1" JI"IOnth. -r"' ~ n.1".:s.""s. f,"""dol b"" in the ,,,,, ,-'I>Ik 

19:r.inM lra"s,1 "<t ... timo "hen r.a> prk.-. a!lll Ot"'lf.Y ind.pendence art uf ""''''''' cone,"",. 

Curn,U1 challerlgiog """",'mle "lOditiOlls haw placed coo,id.r~hk 1""""'" 01\ e,np lu)'I."tl; to 

"-"<I"", ........ , \\'dl a. 00 ~mplo)'"". 10 rWu,:" 1"',,",,0)1 SjlCr!diog. C"ornpaoi",. indudi"ll ;mall 

businossc,. llmefit from the pr".1II>. cu""n"l~ """.fil prv.i. Nro bc;. ... ...., II P"l,idcs ;>I,i ngs- hy 

rWucin& I"yroll Ia.,,,,. "hi!<- . 1 ... olTtring a ""I ... hl. cmp]OJlff =ruiu"o", H,Ki ""''''llicn 10<)1. 

EmI'JOl'~ benefil ilP'iroC\l"'I~ from ~U<:<'IJ C<lmO\"nng C05\S ~I • lin>e- "hen many Irani" ~nci~ 

. '" ... "jng f""-",,, they .. ruSllI. I<) ""I"""" Ih.,. t>W&'-~ ~ A •• ~II .,r. rtd"" ... rr.on.<i, ~"r,~ 

tho,,,, oonnnY,;n!: t" on<! from "i>I1< ~i a ltat .. ;, hlo.,'. e!lllo"'" hi~ ""mmunn~ """< amJ hmino:s.< "w,""" h., c ""'-"', lII<i. ~) rolll " liability incrc.'c>t\, 

(·on"",,,,O\,o Jim <C.o~.rn (MA) ha:. ;p<>n..".,·d II,R. 2411. TIw Commut.r 1I • .".,lirs ~qu'IY 

.... r of 1011 ",hioh " ',,old ";"'~Ii • .h perm.omt parilY bet",,,,,, tnln!,tI~an pool and po""ns brnor,t , 

w. 1i<lIy roppon Ihi. hill nd ""uld he i"clim.-d kl ""PPU" any ,,(h~r bililhat "" .. Id ·.\o ~li,h P"nl) 

and ,...."o~~ 'he eli"""l J' sI ~ti, < r".. ,,<>rki"f) (" ~Qtnmul' u,m~ public tnlo>pi>r1'lion. 

I Ihan~ )'001 for )"ur o:oruio.!;!RI'on 10 ext .. ."J thc ... 1t ..,.",IIII. Fuel. T., Credit an.! III< 

TTIIl\SitiVonp<>Ol Cnmm"'''' FnnS<' 1I,.,...,f'l_ [lOlh ",("i ioo~ art crilicallO Wppon ini- Ir.lnsil and "'It 

nOli<t'''$ «"""mie n .. ""vtt)"_ If)'\lll. Nt,,,, ~"..u"" •. plc_ ha ..... yoor .. , ff ""n"!<~ Briar, T)n"" ur 

APT A'< Govom,,,c.,,, A If.;", Depart,ne"' ., 1202) ~%-4897 01" "",.i) bl\'N,,'ti.Jrt~.<ntl~ 

~1PM bo 

Michael P. M< .oipl,~ 

Pn.'Si<knl/k eEI) 
290 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.215

Statement submitted by: 

Michael Melaniphy 

President and CEO 

Contact Information 

American Public Transportation Association CAPT A) 

1666 K Street, NW, Suite 1100 

Washington. DC 20006 

Office; (202) 496-4820 

Fax; (202) 496-4324 

E~mail : mmc laniphy@;apt[!.com 

Questions referred \0: 

Brian Tynan 

Director, Governmem Relations 

American Public Transportation Association (APTA) 

1666 K Street, NW, Suite \100 

Washington, DC 20006 

Office; (202) 496-4897 

Fax; (202) 496-4322 

E-mail: blynan@apta.com 
291 

Statement of American Wind Energy Association 1 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.216

Written comments for the Record: Hearing on Certain £)(piring Tal! Provisions 

House Ways ;md Means Subcommittee on Selea Revenue Measures 

April 16, 2012 

CnmmenfS iubmlrred by; 

I\.b ry kal! FrdnclS 

ProjeCi Manas." 

America, Wir14 [ill-fRY Associalio,", 

1501 M Streel NW, Washlnglon, DC2000!io 

102.383.2500 

mfrancis@awea.ofB 
292 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.217

EIoiow _ ... """ • "'1,.' ..... 1 "'Or,, 310 ,~ •• "" "' ..... ,.,ion< to ""'lrhoioroOI 1""en.IVI> Ihio 

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IOTC). T"" "000 «>ntI ..... '0 """"" '''I., .... '" ., .. " I",." 1,",,",",,'0 0· . ... ....,., d .... orr:. 

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W ..... ,.,."". IX 2allO 

1 .................... 9'''.'' •• Ch.I,. r"",,"" """...r,_ u_s. s.n. .. 

W .... ,..I"". DC :01510 

r ... _ .... om"f<o"" ~"" ................ ,.r._cr....... .... U.S,SeM,. 

W"'N .... 10<\ OC lO!;\O 

O'.,Scl< .... _'. Mo~' ... lo . ... 'Ioid. Mi_'", 1.0 .... , _, MI""" ...... _, M~. 

cnolmlo" ea""" 0>01",,,,, 50 ....... ~"l M<~' """", tnO RanlJr1l Mornb<;- ... ,,": 

W • • ro "';~n. to.""our'F I"'" '" t...., _ioon> ,t _ 10"'" ,.."""'ti". Ane,., -";ty, ro«>n<>mk 

d<._.nt, or><l • ~ ,flor'. bI, el."rkl ... "H'"'' b.l>O»inI . foo,-....• , ,,, ... icn Qflhe 

...... 10 . ... ."..11' ,..00",,""" t&< «edi' (1'fC) .......... ",. ..... cO ...-. " 1 ...... 1'<"', R!I "'FIll '''''t '"" 

,wold ..... -.. , ... 1"",,_ ""wi,.,.. ""'11'." """ .......... ..... uU,"I <'OW .... will <O!\~ ...... to 

"'I. wi'" cor,_I", lot> _ •• "ti1 • DAlto ......... tho FTC!o ~d 

Tho _.1 PTC!I o<,.n..:" .. I00I10 tH!> .Io<~i< ity ,It .. _ .... <'OtDO~. do_tnt 0/_ 

,Ie,n .... ' .... ""'"'''', _ ""''' ""V' «ntr.! r<k in """""", ~ • ..,.., ... "" .... '1. "'OPt'<, 

£q.,J_ wi'" u.. PTe. u.. wi"" _II'!nou<".,. ..... """,,;bulC<f ........ <!wIf 'Q us.. ooonomir: 

... _.n\. '\iru =.''''wi ... ""'u ..... h.o< ___ "dmor. ,n." SMlbllli ... <>I I ................. Tod.> •• 

"""' ~ ,. <ffitloo .. _. ~, ... I<. """"Ia<""" !co u.. _ ""'11' In,,",'rv. US""", '"1Giroo ""' .... I .. 'wV>t ~ I"""'" 11.·foId - 6010 of. ""'" ,.".... •• _ ..... !I ""'" _<>< ........ r.. ....... rI<o, b 

".,." .. 0<1 ""S'II.nor", l'OO!. '''''00, ""''' ...... -., _o<~d _, 'IQ!'<i,o IN/l, .... "~.rIrl\i"" 

by. 'yr .. r.. ....,«1>0".101 ~""""""'01 .... ""' •• '" , ... In' ""-', "'>n, .... "" «lO." ... v.- 1S""'.i ..... U,S._ .. ""..;,., 

... _to II> d .. , ._ .... '"" O'IC Ob _ ._«1 to ....... ".qUO"." "'" 50 ......... 'Q ., ...... , _ .... ~, """ . Haw;, no< ,"".,...., '0 '''''_ .. _ on ...... <ne<,,. _ I'Tc._ "" c ........ fno 
293 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.219

at least anothe r four yea .. sc that Ame.i<~ know 

~ow <a. keep producing domestic clea. enerilY. W~ n t~e PTC has eXpired in t~ e past, Installation. ha~e 

dropped between 73 and 93 pertent, with «lrre.pondlng iC>b lo.,u. An upl.alion ot t~ iI lime would Jeo 

pardi.e lh k new American manufaclurlng .eclor. 

The next fewye r. a re crltk~1 to en.ure I~at p.operlY .iled wind energy 1. 1 viable part of . ba lanced 

domhllc elrCl.khy oomoiio. We look fo.w. '" to working wn_ you 10 conlinue creallng economic op 

portu" ;11,,, 1!If Amerl"" comn"miti", through olea". aflordable, and homegrown wind energy 

Sincerely. 

Ala'ka Appll..t Sciences. Inc , Juneau AK 

O'Neallndu.!rie. Birmingha .... AL 

Signa! Inler~allonal. Inc .. MObil e. Al v !!"Clorply Corporation Phenl. City Al 

W'nds of Change Lu,eholdinll Uc, Humph rey AR 

lM Wind Power. Inc,. litO" R<Kk AR 

TP I c"mpo,lte,. Inc, Scomdale A1. UniSource En 

erlY (olllo,ation. Tunon. A1.lawrence Roll 

·Up Doors, Inc , Baldwio! Park. CA ( a lifo,nla Wi!\d 

Ene.&'! A'$Odalion Be.hley CA RAM A" oci'lei, 

Brenlwood CA 

Clipper Windpower Ca.l>inleria CA 

Oak Crn k Energy. E.«lndido CA 

B.I Seal Engineering. Inc. F0II1hiit Ranch CA A!rt~ 

ct. In te,national, In(. tiu~tln,lon 8each. CA Debe 

nl\3m £ne rgy LLC. L3ieslde. CA 

KouSi In ~rf\3tlonal LlC. tos Angt lei, CA 

Union Bank los Angties. CA 

Miuubishi Power SYSlem. America" Inc .. Newport. (A Whilew 

Oler Mj inten. nce Co'p<>ratloo,. North Palm Sprin,s, CA Whitewj 

~r Wind Energy, Inc .. North P.lm Springs. CA Rene\O/ ble Ent fgy 

c"nsultins Senrices, Inc. Palo AIIO CA 

l li Renewables. RedI3nd~. CA 

San Gorgonio farms. Inc . RedO!\du Beacll U. 

I"dependenl Energv tf oduce rs /.s,odalion Sac •• memo. (A 

~nKco San Diego. CA 

Eu .... Ene,sy Amerla Corporalion. San Diego. (A 

GlG ... ad Ha .. an San go CA 

Renewable Sl,al~gi~' llC, San DleIlO, CA 

POri of San Diego. 5an Diego. CA 

131co [ Iectro!,ies. San Diego CA 

Cenle, for Ro,ourc. Solutio", San ~,.". . CA P 

3<lIic Gas & Electric Company. ~~ ft. ~cis co. CA p 

alte rn Energy. San franci.eo, CA 

51ern Club. San Franci"o. CA 

Infinltv Wind Power San\l Barbara CA 

Rope Partner, Inc .. Sanu Crul. CA 
294 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.220

W"rld Wind Services, Teh.ch~p1 CA Whitewat 

er E"" rIN Corporation Torrance, CA PowerWo, 

ks LLC, T.aq CA 

MATl • CIF Uc. Au,o.a, CO O'Neal 

Stee~ Inc, Auro,a, CO Boulder Wm 

d power, Boulder CO 

Intermountain Wind llC. Boulde., CO 

JuwT Wind Energy USA. Boulder CO HE 

5Am .. ,iu~, B,oomlield, (0 

(himrrey Rock Orplta l Partners Den. er (0 

Coloraolo IPP Group, Colorada Independent Ene'GY AssocOition, Oenver CO 

CoIo •• oIo Renewable Ene.gy Society, Denyer, CO 

Interwest EnerGY Alliance. Denver CO 

Ken ersys Ame ricas, Denve. CO 

Knight P>esold Denver. (0 

REpower US~ Co.poration, Denve. CO Roci<y Mo 

unta], farmers UnTon, Denye, CO Western Goye 

rnors' Auociltion, Denver CO Power Company" 

f Wyoming lLc' Den.er (0 Sol .. Ene'l't (onsulti 

nl US, Inc ., Fort Coll,ns CO PMC Hydraulics, Inc. 

Golden CO 

5GB USA, Inc" Golden CO 

Disgen o..yelopment Services LlC, Lalrewood CO 

lincoln Countj Economic DeYelopment Corporation, Limon CO 

Town o f Limon Umon CO 

City 0' Ste.,I,,&- Sterling, CO 

log;!" Count! Commissione,s, Sler1ing CO 

Loga" Count\' Economk o"velopment Co'lIOralion, 5Io.<l;n8, (0 

Green [nersv 911llC, Thornton CO 

RENEW New England, M.di,ort CT 

Stran bchnologles, Nau,'tuck, CT 

AmericOlll Cor. G'owers Associalion Washington, DC Ame""" 

Council of Engineering Companies Wa,hlngto" DC Anler1cM 

FJrm Bure<!' federation, Washln8ton, DC 

Ame rica. Gre a! Lakes Pon, A"oclallon Wa.hington DC 

Americoto Wind Ener8Y A .. ociation. Washington DC Clea. 

Economy Network. Wa . hington, DC 

Defenders 01 Wildlife, WJ,hlnglon, DC EJ 

rth Day Netwo,k. Washington DC Earth P 

oliC'/ In"il\Jt ~ Washington. DC Edison Ele 

ctric Institute, Wa.hinaton DC 

Friend, Com min" on National Legi,la!ion. Wuhington D( 

League 01 ConseNaliof! Voteno. Washlnston, DC 

MAPA Group, Washington, DC 

Nalional Associallon 01 nulaC1u.er .. Wa shington DC 

Nanon.1 fa rmer< Union, Wa,hl"glO" DC 

Th e Pew Env],onment Group, Washington, DC 

Th e Wllde,ne" Societv, Wa,ninglon DC 
295 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.221

United Steelworker5, Wa,hlngton, DC 

World Wildlife FUnd, Washingtcm. DC S 

ca ~d En~rgv llC, Fort My~" Fl 

Ne.tE,a Energv RelOurces luno BuC/'i f L 

SiemMS {nergv Orlando. fL 

DeTect, lot, Pao~ml City, Fl Ne 

.!wind, Inc., St. Augu'line Fl 

Ame,[cal rg~ inn"".tion< llC Swart fl 

ARI G,ee, Energy, Inc" Yulee. FL 

OBI Pla$ll~ N.A., Inc .. AUan ta GA 

Southern Allianc. for Cle an Energy, Ad il nt. GA 

Zopp.s Indu>lrle, Al lanta, GA 

11 Wind Power ltC Galne<ville GA 

Sany EIKlrk. Peachtrft City GA Ros 

5i, Suwane e, GA 

Henon Wind & Renew.ble Energv Bellendorl 1,01, 

Allagomma America Burlinllton IA 

Webber Mela l Products, Inc" Cnude, 1,01, s.a 

dler Machin. Company, Cedar Rapids, 1,01. Sny 

der & Assoclale., Inc .. CouncilBlu!I., 1,01, Iowa 

!nvlronme nlal Council De. Mome. IA 

MH&W Internationa l Corporal lon, De~ MoineJ. 1,01, 

M,dAmerican Eneri'l Ccompany, De, ~ol ne~. 1,01, EI 

Mea, Inc., FaMev, IA 

Wind Utility Coosulting, Pc. jamaica, 1,01, 

Acte"a Group. Inc. Marlon IA 

Iowa Wind Inerev I.s.ocillion Milford, 1,01, 

loWOl farm luruu lederatian. West !k!s Moine., t.I 

Idaho Cooser'/allon league, Boise, 10 

[01I>po<lt'" One, Arlinl!«<' Heights, IL TIMn 

Tool Worlls ll[, [arol St,um, It AC[ION! (n 

ers~ Nort\ America. [hk.>go, Il Ak .. Energy 

USA. chicago, It 

E.ON [Iimate & lIenewables North Am~riCi tlC, [hicaHo, IL 

fnv[ronme"lallaw & Policy Cenler, Cnicaso. Il 

Invener8'/ LLC. Chicago. IL 

JPMoriian [~pital Corpor ti<ln . Chicago. Il 

Lubbod Economic Deve lopmem Allia"ce, Chicago It 

M.innream Ren~wab e Power, Chkal!o, 11 

Norde.x USA, Inc.. Cl'Ucago IL PNE 

WIND USA, Inc., Chkaso, It 

SUlion Wind Ene'lY Corporillon ChiC<lgo, Il 

Tempt'l Chic.go, It 

Leeco Sleel Darren Il 

Cre<;cent ( Ieurit Supply CompanY, h't Dubuque, IL 

Wine rgv Drrve Syuem. Corporation, Elgin Il 

Alliant Energy [orporallon, Geneva, ~ 

SSA6 America" U<le,1l 
296 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.222

ITH fngineerlng, 10<: •• McHen1'/, Il Pri 

dl Machi", Tool, Inc .. Me lrose Il 

NH Bearing Corporation, Mount Pro.pect Il 

BroadwltJ Energy, Inc., Naperville, Il 

Rock WIIId llC, Rockford, Il 

Sumitomo COrPOrition of Americ~ Rosemont, IL 

MasTel:, Sugar Grove, IL 

Bedforl Mackine alld Tool. Inc ~ Bedford IN 1'100 

' ier EnvirOnmental CouncIL Indianapolis IN 

Wind Energy Manufacturen Assoxlallon Indianapolis IN 

Wlli,e County Economic Develooment Monticello, IN Re,., 

County Willd 'nlliat~ Hutchin,on, kS 

Climate + [neflV Projec~ lawrence, KS 

Tr~deWind Ene rgy llC len~ KS Proer 

entv, Prl>Ouct., Inc ~ c il1sb",rg. KS Alltll' 

,Inc. WiChita I(S 

Balluft Inc.. florence. KY 

The ReGen Group, New Orlean. LA 

CP Global Bo'ion MA 

fnyironmenl America BOSlon MA 

fGI cowe. 80ston MA 

first Wind, leston, MA 

Competitive ~ower Ventures, Braintree, MA Un 

Ion 01 Concerned Scientist" Cambridge MA Cle 

'" Power Now Hyannl. MA 

II Management. In c •. Needllam MA 

Quromar,lnc-., Pembro~e, MA 

Borea~ Re"ewab le. LlC, Somerville, MA 

Second Wind Somerville MA 

NaliGlla l Grid, Westborough MA 

PcVue, Inc .. Woburn. MA NADICD 

M Fultort MO 

I,a.k Wallon le"gue ;f Ime,;c~, Gaith"r:;bu.S MO 

FIBOX Enclosure., Glen 8u.",e MD 

Chesape3ke CII"'~te Action Netwo"," Takornl P .. ~ MO Wlodepe 

ndence/Commynit'y Energy hr!ner~ Uc, Freeport, ME lames W. 

Sewall Company Old Town ME 

Saflenl Cmporatlo~ Slillw.t'" ME 

Orisol Energy, .<.nn Arbor MI 

~Inelik Partner>. Berkley, MI 

Danotek MotionTechnoloRles Canton MI 

EoergetA Composite., Holland, MI Vemowe 

r IndUSIf]e>. Monroe MI 

hydon Corpor~tion Mu.kegon, MI 

AlwelillC, Xoulhlield MI 

Blanner Energy, tne. A.on MN AlLElE 

/Minne'Ola Power, !luluth. /,IN 

Westwood PrOleSlfOl'ai Se"'lce~ Eden Prairie MN 
297 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.223

Otter Tail Power Company Fergu. Fall., MN South 

wesl Initiali~ 1 FGunditlon, fi utchlMon, MN En.ira 

nmem Minnesota Minneapoli. Mill 

Front Row Energy, Minneapolis MN Morte~so~ C 

onstruction MlnnuPOtis, MN Project Re ourc~s C 

orPO"'tlon, Minneapolis. MN Zero 

·Ma., Inc. Plymouth, MN 

Fresh En~rgv SI. Paul MN Kid 

Wind Project 5t. Pau ~ MN 

Minnesota Department of Emplovment and Economic De~eloomenl, SI. Paul MN 

Wind on the Wires. St. Piou ~ MN 

America. Wir!d Management, InL., Tower MN Integ"'t 

ed Wind In"rgV ;ervices. Cape GIrardeau MO carthaB 

e Ch amberotCommerce. Carthage. MO 

Able Manuf.clUring & Assembly Joplin MO 

CN, Machine Products, Inc .• Joplin, MO 

Joplin Area Chamber 01 Com me ICe, Joplin, MO 

Mlllcon Cables company Joplin, MO 

EnPower StaffingllC, Kin.a. Clly MO Pin 

nael, career institute hn!.as cil,/, MO 

Neo,ho Mi'<;Ourl Chamber Of Comme.ce, Neo,ho .. MO 

Wind C"pital Group St.loul, MO 

Affinity Wiod LlC. St. loui, MO 

A-I Ranch llC 6e ll. MT 

High Plains Afch ltectl., 8illinll' MT 

NOrthern Plain, Resou,ce (ouncll 1Ill lIng~ MT 

N52 EnerlY North Ame rica llC Billing •• MT Wi 

nd nase," llc. So,emil", MT 

Capital Communications Helena, MT 

MOlllana EnvironmenUllnformallon Cenler He lena. MT 

Kent Watson & Associates Missoula MT 

MOIII,na Renewab le Energv As.ociation Missoula MT 

Windmaker Ene'8V LLC, Whllefish, MT 

AKG of Ame,Ic..a . Inc. Mebane NC Wie\a 

nd (Iect'ic. Inc. 6urglw, NC Com@.rlndus 

trle., Inc,. Charlotte NC Duke fnerg~ Ren 

ewables. Charlot\f NC Nucor Steel Char 

lotte, NC 

8altek, Inc_ COlf~. NC 

ABB. Inc., Raleigh NC 

Wind Energy SupplV, Inc , 5helbv. NC 

Nonh D. kola Alliance forRe"ew~b e Energy, 8i.martk NO 

OMl lnduSilles Fargo NO 

O"er Tail COf\loration. Far80, NO fA 

PC Wind Ener8'V. Grand for~. NO 

Wind Mar keting Aliiance West Fargo, NO 

NonhSlar Wind LLC IIlai' NE 

center lor Rural Aflal.s. l VOflS. NE 
298 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.224

Sprogul Energy Corporation Portsmouth Nfl 

Power Communkatlons Cliffside r~ , NI 

DGO . ... Heavy Industrie. America Corporatfon, fort Lee, NJ 

Pionee r Power Solutions, Inc, Fort l~, N) 

Ports Amerl'a Iselin NJ 

Merrick & Company M~hwah, NJ An 

danle, USA, Inc. Wanama .. a N) 

E&M loternatlonaJ. IIIC., Albuque rque NM 

Farmers' Eleclric Cooperative, Inc, of New Mexico, Clovis. NM 

Acoustic Ecology Inslln.te Sanu Fe NM 

Oongkuk sac In Vegas. NV 

Nevada Wildernes, Project la, Vega, NV Allian 

ce for Clea. ("ergy New York. Albany NV AWS T 

ruepOwer LLC. Albany NY 

CG Holdin!, USA, Inc .. Alba"y NY 

Integrated En.ironment al Cata ll.c. Bernt , NY 

OwnEnergy, Inc., Brooklyn, NY 

Eastman Machine, BuffalO, NY 

Renewable Energy Long 1,I .. nd, Ea.t liampton, NY 

RiVe""ew Consulting, Inc " If'I,ngton, NY 

Llufer W,nd Group, Newyorl<. NY Nation 

at Audubo~ Society. New York NY 

Natural Re,ource. Defen.e Council NewVork, NY 

Terri-Gen Power lLC New York NY 

loou" Inc .. Oneonta, NY 

5u"alnaOk Energy O~"elopment, Inc. ontilrlO NY 

Milter Marine Services, Inc .. Port J~fferso n. NY f lshe 

r ASrodate s, P.E., L.S., P.C" Rochene r NY 

Natural Power (on,ulla n!s ltd., 5.aratoga Springs, NV 

Global Capital Finance AmeriCas LLC, WI!(te Plain, NY 

Molded fibe, Gl ass Companies A'htabula OM 

Precision Machined Products Association, Bre cksville, OH 

McSwain MinulaCluring Corporation Cincinn.lt OM GLW 

N, Global WIND Network, (le""l.nd OH 

LEEDCo C~v-ela nd, OH 

Nation.1 TO<IlIng & Machining A,socialion Independence, OM 

PreciSion Metalformlng A"ociation Independence, OH 

Ferro Corporation Mavf1eld Heights, OH We 

bCore rtcnnolog,e, lLC Miamisburg OM 

Kalt Manu facturing Company North Rjd8e~ le, OM 

1'1 Ted!, Inc. 5h" ron Center, OH 

Pep~rI+Fuch5, Inc., Twinsburg OM IMD 

5 !nergy lV.te"" Youngstown, OM 

OGE Ene rgy Corporation Oklaho",. City OK 

E6USA llC. Tulia OK 

CIIi.en,' Utilitv Boara olOregon Portland, OR 

Diane ~n kel •. Attornev at Law Port>and OR E 

lement PowerUllLC Portland. OR 
299 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.225

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B Group. 'nc., P,, , l)C 

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P",. (it~ Maunuln Re",n. P"'(I,V Ul 

P.,k Cit~ M~nlc:l p.1 (arpo'OIio" 1'.,. City. Ul 

\'i.,."h Wind Pork Cltv UT 

R",'V Mountab Powe, Salt ' Cny, UT 

Salt '-"let CountY, S.lt lo., Clf\' UT Unl p 

",,"' of Mont.no ~. t , alet C;tv ur Utah (I. 

~n [ne '1v So il Lok, City U1 

Ut.h IMe, t~ Powe' & li&ht Sa~ I« City U1 

WiW U!a~ P,oj~t S.lt La'" City UT 

REDCO, South IO,aan Ul 

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lh~ 5,.11i Gmup, ltd, 1\,1 "'.'on ~A 

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M-l. I<"ocla.teo W."."ton V~ 

BUrlinll"" e~"i<: ~POf\m nl SyfiinSlon VI 

~~~ ~y."m •• lnc. liln",buf& VT 

""Ii> Wind w~'I<r..ld VI 

GlObal Fibe 'SI .. , Solution. , 'nc. BelleVl,e WA 

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Onen Ad<oc~, B~l yue. Wr. 

C~lnoo' Wina her.cn WA 

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~"""" ClimlM!r W,nd !.eo"lf , W,," 

'r.n",""~ World .. id. tOili";'" Seaule, WA 

AII1"~ Co.po,.tiO" Spo~.n , WA 

N()f\~w"'t Rene ... bl. Ene'IV Inlll,y, .. V'"", ... II.' 1""" 

ReM .. Wi ... o",;n Modi,an WI 

WES E"8lnee rlnl, Inc. Maal",,.. 1'" 

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M;I ... u~"" 7, Milw.u~e ... WI 

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301 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.228

-~~ "'''''.iJllC:''f'I AWEA WINOINtltC.'t 

USOC! ... TION 

Written comments lor the Record: Hearing on Certain hpiring TaM Provisions 

House Ways and Means Subcommittee on Selea Revenue Measures 

April 16, 2012 

Com menl5 ~ubmltr/'d by: 

Denise Bode 

CEO 

America' WiM Energv Association 

lSOl M Stree! NW, W~sh;ngton. DC 20005 

202.383.2500 

dbode@awea ,olg 
302 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.229

T~e Am~'lcaM ~d Enefgy ~so"atio~ (AWEA), .. t:>ehall 01 It, Ovef 2.400 membe'€Omp3nll!f, urgf 

• the U.S COMB"''' to e"tend Iht wind en~r8Y productIon I .. credltjPTCIa. qulc~ly~, PD"lble. AWU ro. 

presenti 75.1XMl emplovee. ,n tN American wind indun,.,.: from project developers, 10 t,,"nspornt!on an 

d construction workers, 10 !he ",anul.eture" of u ta olthe 8,OOOromponent pam 01 a Wind !~rbl"e. WI 

th Ihe PTe t:>el"g eOJ\$iSlently Willable ove, tne past five yeirs. this indUS!,., n.sau,aGled;Wer3BI lOMual 

p,lV<lle inveSlme,," in U1e US of aver SLS bUnan, ,nd ~ <) \20 IIllla" .. ,slnaJe year. WlUOautthe ""ni 

nlV th ~ bu"ne$! incentive '>eyond this leaf. however, ialf 01 ,hest job. ~d twO 

nth as the PTe neaflthe ... pl,atlon deadline . The /lme,,,an wind IndusttY needs policy ce,talnty io .,der 

10 Kl"ti"Ue I<l gener;>u Ihi' level 01 ~conomlc •• owth. We urge the Ways and Mean. Committee 10 lake 

up Ihe PTe ~len. on righl .W . 

T~e PTe ha' be@~ Ih. most eHective policy 10 atttact P"V",f capital a"" deplov wlM tech~o ogy ~ 

the US. In I\>e fa.1 live yea", while Ihe pre has been <Onl nuou.~ .,, ~iI& e, 35,64(1 meg.wan. jMW) ~ 

76' 0110101 US wind powe, -

h."e t:>eto eo~wuct~d. This growlh has been complemented b.,.lechnology ad".Memenu, with wind 

wn rOIl$_ The He has iOllered an Ame,ican wi"" lIeellhal powers tht equivalent or OIIe, 12 millioo h 

ome •• '" employ, len. Ollhou,",nd. 01 people .. good-paying job> ."0» the counl,.,.. 

Homes"' .... Ame,ica~ wlntl POwe, I,al,o diversifying Ihe Ame.ica, electrlcltV po!"lfol~ ar,d ,Ire"gth 

enl", ule American economy foste.ed by th e PTe, wind power'. cos" ha"" com, down dram.licaHy, m 

aking it an IncruslnglY >lIIacti"" , oy,,, of affotdabl+ electric !ener . tr"n. Overon, Wind enet!y no, iCco 

unled 101 3S"01an new elmrie generllllll c.paclty ~ It.. t." liv. ye.rs, just behind 
303 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.230

geW"! mo" Il1an 5~ of Il1ei, elecUi<:ill f",m wind, nd fi .. e ,"'Ie'gening more than 10%. 

The lederall'T( ha. all-a helped prOtect ra tepayer) from luel PIke ,olalililV WI1 f/"1 u' illlvlece l E~ergv 

,emrell, wind POWet pu,chase In 2011. tile (olo,ado Utllitle~ [ommi"lon, in .pp"wlng :toe contraci. <Ial 

ed 11111 "lhecontl~ct will •• ve ralepaven $100 mill"'" on iii net·pfe.enl· ... lue bui. I)\/ef its 

25'VUr term undef iii base 

·use natu ral i.' pflce sct'nafio' willie pfovldinalM! op~nunl1! to "Ioc\ In" a price for 25 yea .... ~ PT{ e~ 

ten.11>n woulj enable the Indull",,, flnisl, tM job 0' bringing dOW. wInd ~wef'l COtis. and secure ton8 

In ttrm. of «Mng further "onomi<: n reneth, rrc pO hcy (e rtaint'! us lOitered In ~p.n.ion 01 the u 

S m.nulactmlna .... ctor. Seeinltlv .. alu. that m. Ul government was plarlng DO the wiM lndumy.manu 

iaeturing companie! .et up .hoP' ,n the US, Or retooled the" American iacilille., 10 build turbIne <O",OOM 

10,000 p<'Ople manufacture, wind IYrblne com~Mn" al nea,l, 500 factor!.., ~crO\l 44 "ateo. Producing 

com~nenll dOfl'esticaliV duce$lo~IsUC$ costs. en<lbllng ,educticns In tu,blne cost._ 

In addition I<> I~e PTC,1'l Slat<.'! h ... e enacted renew~ble ene'8V standards. In lombination, mese 

tWo policin have drive n t~e indust",·. growth. FO' companle. oln.ldeflng Inve "fTI~n " in the U.S., a fed 

e'al PTe In <lddltio" to eO'''in8 ".Ie "Mdard!l! "lIle.lto providing them wOth Iheconfldence to make I 

he.e multl·million doll. , capital inve.tlnen!>. 

Tile pendjflg upiraliclo oftne PTe pUIS ~llof 1",- p«>g,e"lhnlh! US, wind i!>dust", ha. mado at, 

T...,. and America, job. ar.d manulactu(ins fac ~"IP' Tn )topardV On an indLl.Sltv· 

wide~c.le, Na"illant Con ultin~ e"'males thot Ihe US wind Indus1", would lo.e 37,000 jot.. ondo ... , S 

10 billion or pri .. al~ 
304 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.231

'nvesrmenl l Ih~ PTC • 001 .. tended.' Wind .ne'IIY p,p)eel ,",v.lopmenl.Jl ~il. an 18 

-morrth p,o<ess, is show" i" E~hlb i! A. Poney certai"w OVt! the <pufle of Ihil time pe,k<j allows projects 

to mOve lo ..... ~'d efflcientlv Wilh Iht pendinl e~pl iltlon 01 ~ PTC, an InCfuslng numbe' of jobs ....tl be 

IoU ove, the cour ... 01 Ihe ea"~ a. IIlmtraled il hhlbll e 

The wind industry h~s already begun j<>b loyoll., Due 10 policy uncert ainlY, developers a, e nol plan 

"Inl prolect' 1>e\'CIM ~Dllat!d h.ve Del'" to I.v of! hell ,taU. Now, during Ihe ,econd '1u.rte" the m 

anufaelu"nll .uooly ,haln i. begi,,"inll!o .uller. Componenl manufactur .... ,e belinni,,!!!> comole!e 

lhet, 2012 .hlpmenr\ 10 wi rol turbine manufaclu,e,s, md til" have 'eceived vl,lua.llv no o,de" ror 201 

3 projettS ~oul ,,",w ",de" 10 f, ~ey ""O l l>e fo'ced to dOWNil. thel, o'~ lo'ce i51,end will 

sp,nd 10 lu.bh'e man ulactu,ers In the Ihltd Quarte" As develope" are unde.ltemendous p,..,;.u.e to 

complete <onsl, uclion olthei, p'ojO'C15and CO"flea Ihem 10 Ihe &,id by 

OecemDe. 3l H "' orde,!<> be fllgible 10 f •• n \he n'C, tU,blne ... nufactu.e .. . uS! ,omplele .nd >h lp 

t~er, tu,bines In Ine ifd Qua,le'. Again. if ma!'lufactu,,,,, ha." 1'101 rfcei\teo new o,delS bV Ille lime 11'Ie\' 

<omplele I~I. vear'llu,binel, Ihey will be lor<ed 10 tay <4 emplovees. In Ihe lourt~ QUlrter oIll1ls year, g 

pid"" , Conmuclion job. will be malnl.ln~ IlI,oUln Ine end ri lhe vu" In o,del to meel thol O~cembe, 3 

I" deadline, but Mginning In •• ,Iy ~013, Ihe .. Jobs 100 will bt losl. tj avigant's lIudy .st1mate, Ihat this < 

haln of joll 10"" Wilt 10Ial.37,000 by Ihe vear's end, Alle,na tively, "' eXlen.bI of the Pre would give dev 

elopers the certaimv to creale new US lIfojeo., plote tu,bine orders, and PUI manu factu,ers bac~ 10 work, 

The wind industry . on !f c~ (0 ,onlfiDuIt 20" 01 Amulca'seleclficlly .upply by 2030, a.nd '''pport 

corresponding SOO,roJ Amerfcan jobr, .. 'he \is De partment cl [n"'IY Iound .. be "nle. able uf\d"t 
305 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.232

IV, ecol>omic H'Ow!h. od dome.tic m.nufactu,ing by !altonll .wllt . cti", tl U !eN tie PTC. 

, USOeo."mem 01 [ne'!I'1. 20111 Worn! f""'9Y ~~ lOJIJ; 1~ "_1/I9 WI...,. [n'!'IJ{'J """t\b~!,,,, '0 U.s. ~"',C>!~ 

.upplr .~ 1008. 
306 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.233

Exhibit A: Typical U.S. Wind Project! Require 18 Months 01 Polky" Certainty 

Exhib it 8: Projected Job losses In U.S. Wind Industry a. PTt Expires 

• - -- .----.. - - - ._d __ ,, ____ , ....... , 

---- - _.- --_.--- - -- -- .- ..-.. _- <- --._-.. -. 

-... 

.- - -- - --., .. ~ 

~~ 

-~- ------ .- _. -, -, _. -
307 

Statement of American Wind Energy Association 3 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.234

Written Comments for the Record: Hearing 

on Certain h :piring TaK Provisions 

House Ways and Means Subcommittee on 

Select Revenue Measure5 

April 26, 2012 

The Honorable Cad leVin 

United States senale 

Washington, DC 20510 

The Honorable Debbie Stabenow 

United Stales senate Washington 

DC 20510 

The Honorable Justin Amasn 

U.S. House of Representatives 

Washington, DC 20515 

The Honorable Dan Benhhek 

U.S. House of Representativ6 

Wasi}ington, DC 20515 

The Honorable Dave ( amp U.S. 

HouSp of Reprp ent~tives 

Washington, DC 20Sts 

The Honorable Hansen Clarke 

u.S. House of Representatives 

Washington, DC lOSlS 

The Honorable John Conyen 

U,S. House of Representatives 

Washins\on, DC 20515 

The Honorable John Dingell 

U.S. Houu of Representatiyes 

Washinston, DC 20515 

The Honorable Bilt Huizenga 

U.s. House of Representatives 

Wasllillgto(1, DC 20515 

Tile !"Ionorable Dale Kildee 

u.s. House of Representatives 

Washington, DC lOStS 
308 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.235

Tne Honorable Sander Levin 

U.S. House of Representatives 

Wijshington, DC 20515 

The Honorable Thaddeus McCotter 

U.s. House of Representatives 

Washington, DC 20515 

The Ho!,\orable Carldice Miller 

U.S. House of Representijtives 

Washington, DC 20515 

The Honorable Gary Peters 

U.S. House of Represefltatives 

Washington, DC 20515 

The Honorable Mike Rogers 

U.S. House of Representatives 

Washington, DC 20515 

The Honor.tble Fred Upton 

U.S. House of Representatives 

Washlngton,OC 20515 

The Honorable Tim Walt;Jerg 

U.S. House 01 Representatives 

Washington, DC 20515 
309 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.236

Dea' :Senato, ln in, .se,.ater :Slabenow, Congressma" Ama,h, Congre .. man llenlshek, Cong,e .. man 

Cam , Cong,eum.n Cla'ke, Co ngres-miln Conve", Congressman Omgcli, Cong renman Huilengl, 

Congtessman lldee, Congtessman Le vin, Congtessm.," McCotter, Cong'esswoman Mille., Congtessman 

tefS, Cons.enman ROgefS, Conllres"".n Upton and Congre .. m.n Wolberg, 

Thank vou 111 1 for VO<J' 5e .... ice to MkI1 igan, We aie writlns YOV tod, v to encour.ge you to sund up fot 

clean a/fordable electrlcrty, ecOllomic de_eklpment and M)c higat1 jobs bv passing' lo",,-year e.tension 

01 the .enewable ene"", production ta. credit (PTe) a •• oon a, possible, It is ex!teme lv urgent thn the 

HC i. ".tended immediately 10 ~yokl a ma .. ive tu ;ncfn,e on willd energy. Right now, inve.stment in 

wind energy 1135 already besun to 51.11 and wni cOMlnue to 00 so if no action is taken. TillS will place 

m.nv Mlchig~n jobs 3t risk untillesl,talilln to e"end tlte PTC is o ... ed. 

The federal PTC 1,;1 very elfeCli.e 100110 not onlv keep eleclridty r.IU low, but also promote 

development of dun enersv proJects, Cl,,'m ~ne Bi' m..,<t play an Important 'ole ,n ou, ~atlon'l lonsterm uppl~ of elect.icitv .nd dolns so will not only ptotect our environment, but also our natlon,l 

.!!curil\'. With the PTe, the wind "nerlV ,ndYSlfy h •• made significant contri butions to u.s. ""erBY 

security ~nd e<onomk deYl!'iopmenl. Sinc e 2OOS, wind ene rBV has .pa.ked more than S&o billion of 

investment. "'merlcan wind turbine minulaclu rlng has ~rown mOre Ihan 12_fold _ 60% of i wi nd 

tu,blne', value js now ptoduced he '" In "'metlca, Befote 2005. that numbe r was onloi 25 . The PTC has 

pla ved. huge role In lowering cost . "d support the U.S. "conomy In the proce,.. On top of that, over.1I 

cost. for Ihe wind ene,lW industry have b&en ,educed bv mGr. than ~ .'nee 1980 ",11 GI U,&s. 

de_elopments h ..... led to wind energv prmldlng J5" 01 &11 new poW~r c~pacltV in "'merica. 

Mich igan plav.! in imporUnt role In Ihis development, Ou, rich mioufaClvrl'l1 he rilage ha, crUled 

many opportunities 10' Ihe wind enetgy Industry In ou' <Iale, with even more opportkUlltleJ for the 

futUre. fo, the past 10 ve ... , OUt Slate ha, ma"" headlines lor all Ihe wrong reason.-recessillns, loS! 

job" and econom~ hard,hlp-bul lhe wind ene rgy IlIdvslry ha, helped chan!!e Ihal landscape. In 2010, 

4,000 Michigan jobs were supported bV ~e win<! enelg~ industrv_ These i'" Il<il led, high 'Iual1l\' 

oositlons thaI are good for Mic lg~n worker, and Our communlli~, 3nd a,e I"n,fo,ming Out economy. 

M!<h n)s alteady cOflslde,ed a ma.nufacturlns powemou<e for wind ene'gy and Ihi' S,ewlh Is 

expected to continue far ioto the luture , New wind ene'gv projecl' ar" alreadv flocking to Michigan to 

iMest in cur talented wc ~lorce, bu,inen"., and our yaluable wiod 'e, cu,ee,. 

Howeve., the fede .. 1 PTC will play an Import.nt part fo. Mich,gan'< IUIu.re~. a "'ade. 10' the wind 

enefBV industr;. Oespite its yery clear ,ucce .. , the Pre has been allowed to expir ... frequentlv lind I, 

.1.led to do .oa!!oin ~I the elld 012012. This cle"le, a g,eal deal 01 uncerta inI\' 10f an industr; Ihal ha, 

'Mested:<o much ,n Michigan communities. Thete IS plenl\'.t st.~ e lot Michigan should Ihe PfC be 

'lIow d to e~p 'e and our state cannot aHe,d to 10<e any more lobs and In oenm" nl<. Too many of ou. 

lriend. and neighbo .. haye ~it that h~rdshlp Ihe pall decade, The PTC .hould be extended Ie, at lea. t 

""OIM, fout yea rs.so wo,kefS in OU, stale;oM acros< the counlr; can use Ihel. skills to p'oduG" cl ean 

dQm~1ic energv. 
310 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.237

Th .. n ... tlew 1"'"" an!' crllctalto en,ur~ that p'o~r y .Ited wind ~n~r8Y remain. a yjabl~ ccmponent 01 

a balanced domestic eoe,8'I portfolio. We look forward 10 working ~h you 10 continue cruling 

economic opportunities fo, Mlchlgan <ommun1l1es Ihrough c~.n . • lIord.~l e, and homegrown enerllY_ 

Ple.~ Ipe ~ loud"" In \Uppo<t 01 He \" Michigan', voice i. heard in Wa.hlngton. 

SU;cere)v. 

A.truu. Wind fn .. rfll raton R.pid •• MI 

fOP Renewibles Olstricl 8 Developer, MI 

O.nOleW Molton TechnOOlgies Conlon, MI 

D<lwdlng Indumie., Inc. falOn Rapid" MI 

fabory N<>r1h Am erita ron Cente" MI 

Gr.llot County Wind IIC 8rfd<~rid",. MI 

Herilage SUllalnable Ene'l'\' Travt''''' City. MI 

Inlernalkmal Painl 

Invenergy Wind Ckvelopmenl Breckenridge, MI 

ITC Holding. Novi, MI 

LO( Performance PrOduct<, Inc . Plymoulh. MI 

Mona Lah Investment Co. LLC Mulkegon. MI 

Orl.ol Ene'jlY US, Inc . Ann Arbor. MI 

AESAmeriu! Pigeon, MI 

Shepherd Ad,"sor~ AM Arbor, MI 

sn USA Piymouth, MI 

Sleel C'1I11 Technologle. 8elmont. MI 
311 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.238

COmmellfJ submitted b)" 

B",d l vma 

Man~&e' 01 Slate Campaigns 

Americall Wind Energy Association 

1501 M Street NW, Washington, DC 20005 

202.383.2500 

b1vstra@jlawea.or8 
312 

Statement of Amy Lindner and Michael Failing 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.240

III'.: Il ~r n,g"n Cerl~lo, Expiri"I! Tax I' ruvM""~ 

TiUe o f Ilearl n,g _ -!luring lin C,.nai n ElIplrl n8 Tao f',"vI1ibn," 

We a", wrl!lnK Ii> ask tha' yoo move 'aw rds e"dlng Ih~ Prod...:tl"n T;o.~ enodlo for Indu~1 wind 

,urbln.,.. The Wind en0l'l!Y indo,try has grawn sub'tan!lally .Int e the producoion Ia~ erNlI wao;adllpted 

In 1992, ~nd y"' wind prudo,co only abouI 2.3 I"'",ent 01 our .1l'C'rlt'l)' "ali""wld •. 

TupaJ'f'l'5ha ••• uMldlud wind oMrgy (or20)'mrs now. ~ have fun<le<l th~ Indu'irywlt)o m,ny 

.. ru 01 bililoru 01 ""I) .. ~ ($14 billion lUI J'f'.rJ via til" prQdunlon Ill" ,,",d'~ tile i"""",,,,o"' ,:OX t .... di~ 

and mhl'f !;Ix and "'Kul lory provlSions..' well u klan i"'''''''''''' and uu.nglll ¥"'"'' Thi, hmdln8 

waf InlM<led 1<'1 8M a n..w lochnGloi!Y Up and Nnnlng. 

Wind energy i. consldcn:d at Ibl. "me 10 be a ' m. ,uro ll'Chr>OlolIY" and ilil 's m,iy """nomically v"'hl. It 

5hould be 3bl ~ 10 hold it1; awn in til. nl.rkolpl:tn> wllhou, <ped.1 tu I""",'ment. 

Thot dl'~<1 COU "ltII. s " b!.ldy tu 'Y<'rs. . ..... ""n"d by lile <mlll", .. lonoll<lI"' Commhu.. "n Ta. 'I",~ 

"'()~Id be $6,8 blmll" frllm 20 11 'A 20 IS for .... '" pml«l.l: lmpll'me"'Ni by Ih~ ~nd oflhl. year. Thll "gU,.., 

"eNile«ly 3dds 10 Amerk .. ·s ~eb~ And pmjet'UIIegt'" In respon.' 10 an IOIl!;On oflh, .:ox <,...dill n the 

, .. xl y~.r would only In< ..... "" In .. """'b ..... 

Aft ... 20 ye31'5 "fta.poy ... iUpporl. tho wind Indumy """"01 5hoIY any ", ... ningful bemofol ronrer",nll 

~t'IId\lCllon uf "g,.".,,," en,'1:Y or thct .. hmln.tlon of old"r odini' p',we. pl.nr.< Howe""., Wl11<I 

de~lopmem "' .. pt'lldure<l nog.tlv. lonK"erm re'iuh., rural ",m","nltie. 1.1t dl,1dod. Idnd.uP<'> 

<ieJlrado<l. bird and 1>:01 p<>pu~tlo". Ih"'''Me<I. and ~lrNdy dWindllnll nalu .. 1 h.bllat1; doslroyoJ. 

The I . .. " politlcmd opproach would lie W ellmlno" al/ go""",,,,enl .ub!:idl •• " nd la~ crt dlts on 

pt'lld uct,"" of all prim. ry 50"" ""< of """'!Y. no., would give ,II m~,hndl nlenergy produ(1I,," .on .",;,n 

chana! I!>""mpete In In .. ",a"""l b.",d"n th.lnnle~m<i.nryand <",f!;. 

ThO pUrpOse ofth~ lax «>d<l ,~ould lie 10 .. ~ nlYCnu~ ior ''"' le8!t;m~le funn]O"" 01 til" fedcr31 

gtI~rnn" ~ It i. nDt "ppnlprfate 10 U«! II IQ ti p the $QIies I<IW:trtl faV<l",d ll'ChJlOi"l!i" 

Amy L,n dn'" 

Micha.1 F.llln8 

2128 BOMey Rd. 

Hamilton. NY 13316 

315-824--1569 

thefaltl ngs@l",.nmm 
313 

Statement of Ann Summer 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.241

I. Ann Sunlln~r (l't'Iired ;;.;hool social wort:cr from PnncetOn. New Je~y) rcsp«IMly 

urg<' Congre.<S 10 eMend the wind ~/1crgy pmdueliQn tax eredil (PTC) as qu:dd yas 

possible. As a (I!'.ull of the PTe. billions of lloll~rs of private investment hu~c Ix.'cn mnllc 

in ",inll power. creating jobs anll !!~'I1crating revenue during Ihe rttt'Ssiun. Al this tim ... of 

high gasoline pncl'S. il isa Inl¥e~ly IlOIlO sho .... a ~ommiltnen11O altematil ~ forms of 

~nc sy. Moret;l~er, "e nel'!110 wean this country ofiu de )Cnden~e QIl fbssil fuels so ~s M 

fTc.: oUl'!;el\'cs fmm dcpcnllcnccon the unll'."penda hlc Middle Easl fnr nur nerg)' sources. 

Wind pow~r may nOI Ill' THE answer, bUI e\'ery step w( lakei~ a 51ep toward ell~'I'gy 

inllept'11dcnce ond 8 deane, environment The sootier we encourage nlfll'C" i~\ ~lmenl in 

ahcmalil'e enersy sources .. the ~ater lI'ili be Ihe opporllmilies for d<'wloping more 

viable, ttOnOlllicul allcmalile5_ 1 l!\~ Ihe cOI"milt ec 10 lake up ~n tXlcnsim of lhe wmll 

energy pmduclion lax credit right away. 

RCSIX'Clfully, 

Ann Summer 
314 

Statement of Anna Derengowski 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.242

Alina Derensowskl 

2215 Haskell Slreet 

A""t,n, 1)( 78702 

765,914.1470 

annade 'engcwskl@Bmall,col'l 

Hearing O~ C~'n E!<P";flll Tu 1"0111,101'1< 

I, Anna Der"flgaw.kl, .. Camputer Netwark A"istant in Au";n, T~, re.pectlull~ urle Contre .. ta utend 

Ih~ wind enerlV praduu",n I.~ qedit (PTC! "'lIulckIV as po .. ible. 

Wind "nerBY I, .b~oIU el~ Import3nt In harn""lng mo ... ,,,,,.Inable enerfli fcr our cammunlt1es "nd 

re-(!utlng cur depe ndence on rossil fuel' which ppllute our planel. 

Currently. there I, batte"" <ell technology being develeped by Donald .sadeway at me UII""d Melllis 

I!.atl"rv Corperation th.t allew 111"- "erage of wInd energv_ Till!. wou ld meM mat wind en"'IV <ould 

rontribul,,-IO III" 8rld In a powerful way. much lI~ecoal. ga. and nudear enerBY do lCday. 

The de~elopmenl of Ih" wind power indu.try". well •• Ih" ballerie. which would make Ihem capable 

of powering larce. lndu",lal planl< would provide our <ountl"/ wilh emplovment .e,ources, 

Inve.tment in wind power would ultimatelv reduce Our conflict between count.ieswhere oil r;ghts ,re 

the m~inw ,,<e Df cDnmCl, 

We de'l'efate lv n('ed 10 focu, our eltoru on ImprOllinl alld p.oonotfng Ihe u~e of wind eMrIY now, 

whlle we lIa~ Ihe .esou'ces, If w~ w311 100 long, It maV very well be 100 131e. Additionally. OUt co~ntry ls 

m,!Sing an OPPOftun11V to gain an t COf)o'llk f!dge on othe r developed coufllr~, w~kl11re cu/.enlly 

~mbraclng Ilter3t1~e enelgle" 

I utge Ihe commillee 10 lake up ~n e~ten,I"n oflhe wind energ~ production tax credit Immediately. 
315 

Statement of Anthony Kerrigan 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.243

Dear Member. 01 the Committee: 

M.~ 1,2012 

Anthon~ ~efTil! n 

600 W Coun ~ lI'" Rd, ~&-20l 

High land. Ranch. CO 80129 

970-903-8967 

Plea .. ,on, Ide, extendlng lh. Produulon Tax Cr~dlt beyond it. Kheduled explralion ~llht end 01 thl, Y 

eir. In mt ,Iateillone ~undred,. jf nOI more. job. in the wind ene'll indust., will be aire ~ jeopardi'e 

d " ltllOol the YTC .. Ien.ion lhe economy 1. CO",inl back. Plen. don't .Iow down t hl economic reco 

~ery. 

If you re ioout s i nd tilt families Who rety on them, if IOU a(e Waut tner,V Independence.nd iI 

aillnl! ourse lves of eve.,. posllb l. ~ource. if (OU ~re .bout ,nvellin, ," the luture 01 our country .<ld ttl 

e envlro<lment. the<l il,e !lCte<ld the rrc. &l n'l et poUli", .. tenere .W, _hal .. "ghl. 

Than, You , Alltho 

nv Kerr,,>" 
316 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.244

_~ >tOOC!_ ~1D · ---. _1'I'~03 ' 9Ol.'ll?,5OiXl ' /NlI'IP).JII.I.01! ,,!IOD.71O,~72 

SUBMISSION OF WRITTEN COMME NTS FOR THE HEARING RECORD 

U.S, HOUSE OF REPRESENTATIVES 

COMMITTEE ON WAYS AND MEANS 

SUBCOMMITTEE ON SELECT REVENUE MEASURES 

HEARING ON CERTAIN EXPIRING TAX CREDITS 

APRIL 26, 2012 

Mr. Chairman, Rankll'lg Memtler Neal ana distinguished Meml)ers of the Committee: 

The Arctic Slope Regional COfPOJ'lItlon (ASRC) is pleased 10 submil Wfillen comme"iS for tha 

racom in connection wilh tha Apnl 26, 2012 ha~ nnll 01 tha Commit\etl on Ways and Maans 

Sutlcommll1ee on Select Revenue Measures O!1the imp<lrtanl lopk: 01 ellpiri"l1 ta~ pro~lsions. 

ASRC is en Il'iupiet'<)Wned Alaska Na~~e reg;onal corporation, formed pursuant 10 the Alnh 

Native ClaimS Seltlamenl Act 43 U.S.C. §1601 , al seq_ (ANCSA), th~t represents the inle,ests 

of the Ir,upiat Eskimos of tile Ardic Slope. ASRC's congressional ly-manCialed mission is to 

nve~1 in its land ba5e and business Interests to provKle for the _I~beir>g 01 our I!lupiat Eskimo 

shareholders. ASRC owns approximately folie million acres 01 land on the North Slope, 

includi"!l both surface and subsurface estale. 

Rele~ant to these oomments, ASRC owns and operates Pelro Star Inc" one of three refining 

companies in Alaska, and the only Alaskano()woed, and small bu$lness refiner in the slale. 

Petro Slar has two refining lad~ties. 000 ill North Pole and the other in Valdez, Alaska. In 

addition 10 jel and heating fuels , tha Valdez location also produoos ullra-low SUlfur diesel fvel 

(ULSO) lor the Alaska marllet as well as fo. U,S. 000 and USCG facilities in Ihe state, This 

rafinery is one 01 two pmduoors of ULSO In AI(I$"<a Which together Ciln sa!isfy slatewicle demand 

for these producls. 

CURRENT LAW 

EPA mandated that all refiners reduce the sulfur conlent of both motor vehicle and off road 

d,e~ fuels to 15 ppm. The IInal deadnne lor complying with the ultra-low sullu! diesel (ULSD) 

rules wes June I , 2001 for la'l,le raflneries across the country. However, Smal l BlISiness 

Refiners (SBR), Including Petro Star, wefe given until June I , 2010 10 fully comply witt! these 

ULSD standan::ls. 

ULSO ~ enables the use of cleaner lechnok">gy diesel englnas 8nd vehicles, resulting In 

signlflCanUy improved air queUty, acooroif'g to the Clean Oiesej Fvel AIHal1'Ce . Annual emission 

reducllons wil l tHl- e<[ulvalent to removing the pollution from more tnan 90 percent 01 toda(s 

truch end buses. Testli completed by EPA and others shbw that using the aIIvanced 

emissions control devices enabled by the use of ULSD lucl reduces emissions 01 hydrocarbons 

and nitrogen oxides (precLlrsors of ozone), as well es particulate matter, 10 near·zero levels. 
317 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.245

PQ~:lof3 

U,5. Hoo.J", CDmmiU ... "" w..),<am/ M""n, 

JoS~' WrI.,," Ca."''' .... '' 

A,prll16, lOU 

EPA sh.fdles conclude that ozone and palliculale matte< cause II f30ge 01 health I1roblems, 

l!!cIuding those related to breathing, with children and the eldel1y among those most at fisk, EPA 

estimates tflat Itlere are significant health benertts as.sodat&d with this program, 

Another environmenral bener.t is that ULSO fuel enables diesel·powered passenger cerl and 

light lrucks to meet the same stringent emissions standardS as gasoline veh"'~s 0;"",,1-

powered 'fflhid<!s also lend to be more f""l .... fflCKlnl than gasoline'powered vehid!!s_ 

Whil!! In the Pl'OOllS9 of taking the necessary sleps to comply with the EPA mandat!!, in 

Oectlmoor 2006. Petro Sta~s Valdez R!!finrllY eXperienced a fire. ceusing signifocant domage k:I 

the process unit. Reconstruction of lhe damBged uniis was complicated by Veldez' se~ere 

wmler weather COnditions and remoteness, as _II 89 lang delivery flma s for specialized 

lIquipm;mt ilems_ MoreoWlr, while mconstruction was procead;"g. P!!lm Star was 

simultaneously worlling 10 design ar>d Install the process units necessary to produce ULSO. 

Runnrng pBf3"el engineering and constructIOn profllcts of this magnitude represented a huge 

undertaking lor Petro Star "I[Id undoubtedly helped delay completion of its new ULSO fadllties 

unlil Novem\ler 2010. 

The costs associated with relrofitting Petro St8~S Vak:lez refinery to pfO(lu<;e ULSO ullimalel~ 

mached $t60 million, con~""ing EPA's staled view lhat \IIltse modiRcationa constilut&d "a 

significant aM Cllsproportionate finandal hardsl1lp' for the nation's small mfiners. To help SBR'a 

o~eroom!l the flnaf1Cl8l b~rden assodaled With the EPA UlSD mandate. Congress- induded two 

tu pro~i!ions in the Energy Policy Ad 01 2003 k:I alloW SBR's 10 l'8CO'Ier up 10 25% of the ULSO 

capital costs through e 5..:ent pel ULSO gallon IRK credit, while also providing for acceleraled 

depfBCiation 01 the remaining capital expemlitures. Sedions 4511 ami 179B, as they are 

respectively known, pasSIId with strof'Q bipartisan support and, thanks to th!!m, many SBR's 

were able to justify the expense 01 11'\0 mandatory EPA retrorrt. These same small I'ItfiIl9I'S - a 

dying breed due to pOOr economies of scals and the disproportionate impact 01 govemment 

re9ulations - ara of vital economk: Importance 10 rurat communities IhI'Oughout Ihls oounlry and 

provide fuel to many areas that have no othal viable options. These facllitias support hundreds 

of direct and indirect jobs while providing clean fuel cli~cal for transportation. electricity, and 

heabnll_ 

Unfortunately, constructoon delays altriDula~e to the Valdw: fire and tna puzzling mIsmatch 

\letw&en the SBR compliance deadline and the sunset Clale of 45H aM 179B (J~ne 1. 2010 and 

Oe<;eml!er 31 , 2009 le!\pectiv!!ly) meant that much of PIltrt> St8 ~S otherwise qualifying Ut.SO 

ca~tal costs were e~c uded lrom con\lib ~ling the essentilid tu benefits thai Congmss Inlended. 

PROPOSAL 

E~tend sections 179B and 45H Jor fWO )'!Iant. erractlVe January 1. 2010, 
318 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.246

.... a!J 

U.5. Hou", , ,,,,,,,,itt", "" Wo",> ....t M~R> 

AlK Wrirm-. Comn'lM" 

April 16. 2012 

REASON FOR CHANGE 

Extelldl~ the section 45H and 1198 tax provls~n$ ~II alloW Petro Stat (ASRC) al>d any other 

SImilarly p<:IlIitioned S8R mootIng the EPA relluiromenls to s~ 11 caplure tho ta~ benefot!! 

Congress intended to partially offset the enormous cepijal (;()Sill and financial burden 01 

oompliance. E~tension of 45(Hl , which by statute as wrinen will also eXLend 119B, will help to 

en"~'" 1h31 S8R·s that stepped up aoo complied with the fede,~1 OIflvtronmemat mandate will 

not suffer eoouring financial harm which could !unher jeopardize tile long 18m'! viablr.ly of these 

vital suppr,efS of dis.el fuels to IOral Bnd remote areas. 

Thank ~ for )'OUt lime and oonsideraoon cllhis ve,.., impana"! mailer. 

in c~rely, 

ARCTIC SLOPE REG!ONAL CORPORATION 

Tara M Swaeney 

Senla' Vice Pre",!Gtlnt 

E~tema l Allairs 

tsween" y@urJ;.com 
319 

Statement of Arion Energy 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.247

Dear Sirs 

April 24, 2012 

From Carl Cliflon 

AgricuhurJI Coordinator 

Arion Energy 

8400 Eat Crescent partway. Suit~ 600 

Gm'nwood Village Culorndo 80111 

W-72(}..528-4369 

M· 72()"346·1213 

I Carl E. Cl illon Agricultural CoordinalOr for Arion E'.nergy, respeclfully urge Congress 

10 eXlend the wind energy lax credit (PTe) as quickly as possible. 

The PTe, support thousands of jobs in our stale and lens oflhousands around the 

country. Orders must be mllde months in advance for turbines and support materiaL 

Withoulthc passage of an extension oflhc PTC soon. it will b..""Come impossible to make 

plaros for ne ~t y~ars , Thousands of people will be laid oft: It will take the industry years 

to get back to where we nre noll'. This wiIlaITect manufacturing jobs. con5lructionjnbs. 

engineeringjobs. trucking jobs, rJil jobs. maintenance jobs to mention just a fcw. We· 

have worked hard to promote education for our industry, !I.:ns of thousand o f Amcrieans 

are in e(Jllege right now studying 10 build and maintain American wind t:"lrms. Without an 

immediule passage of the PTC ex!Cnsion there will be no jobs when lhey graduate. 

The passage o f the PTC cffect Amerieao dti:tens from al! walks offife. Clean 

American wind energy has been a God Send for farmers all over the Midwest. It allows 

them a revenue stream they had not known in the past. The paymetlls they receive Jrc 

helping kecp a new generations 011 the land. Millions of acres arc under lease in lhe 

Midwest and West. Without quick-passage ofan extension of the PTe, developer will be 

foreed to cancel the leases and quil making.payment to farmers. 

The loss of jobs in our eilies lind revenue to our farmers could not come III ~ worse 

time for our <·ounlry. A. decision to move quickly will avcrt a disaster in this great 

Americall Industry. The total job loss country wide is l'om;ervativcly estimatcd to rcach 

45,000. The loss of invcslmcnl fmlll the USA and abroad will be counled in the billiolls. 

Loss ofreveouc to our slnJg&liog family farms in the hundreds of mill,005_ 

Now is Ihe lime to st..:p fOT\ .... urd and show your support fnr American encrgy. for 

American jobs, for American business, for the Amer;l'llll farnICr. 

We are a small Am..:riean business, working hard everyday 10 make a profit and a 

differ<'nce. Please ext<'nd the PTC and gil'e us and tens of thousands nf hard working 

Americans a chance 10 succeed. 

Sincerely Yours: 

Carl E. Clifton. 
320 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.248

._-

--- April 26. 201 ~ 

11", Honorable '~lrick Tiberi 

ChU;nnal1 

Subrommilt~"COI1 Sckcr RC\'l'fllk: Measures 

Cornminre on Ways and Ml':lllS 

1136 Longwonh HoU$C Oillet Building 

Washinb'toll. D.C 20515 

Dear Chaimmll Tiberi and RankingMcmbcr Nl'3l: 

The HooOlllble Richani Ncal 

Runkin;: Member 

SuocoIHmiu,,,",ull Scle.::t RC\'~'lUC McusuR."S 

C()11lmilll'eOIl Ways and Mc:lOs 

IIJ9E Lon!,\,,1;)rth Hons<: Omee Ruildi,,~ 

Washington. D,C. 2051 5 

ClrI behalr of As>oc;al .. ...J B(lihkrs ami ConlractQffl (ABC). a nmjooai association wilh 74 

ch~plcrs representing 22,000 mt'l'il shill' l'Oll~tnJc il)n ;lJId CII11S(!\Ictiol1-ro::ial .. 'll firm>. I am 

wriling in n'g::mIIQ the &>k'CI. c\'~'11uC M~lL>l1I\':S Sulx."(lmmiltee hearillg on certain !!.\pirinl( ami 

ro.'l-ntly .:.~pircd la .~ provisiol1s. While ABC sllJll)QltS"lh.:. c.xlcl1~ion or various c~~ndilures. We' 

bdicve compn.'hcllsilc ta.~ n:filml is necessary to end the anmaal extenders chamde while 

k'ldil1£ l'Cl1ainty and stability to thtl small businC$S community. With such rcfonn in mind. tlK" 

following provisions deserve COIlsidemtioo for permanent c.xtcnsion. 

Busin('SSCs \\.'= 9bk- liJ ",Tite (,If lOll pt'=nt or the C<y)l ofpllfChilSe$ ofnt:'W equipment plocl'd 

in .'i<.'f"iL'C dllnng 20 11 , whilc a 50 pcR.'C1l1 lirsl-YCM dcpr...'Cimjon allowlUlCl.' applil'S through 

2m2. 1j1 11 capital,intensive business such a!i cooSlJlJction. tltis accdcmtl'd depreciation creates 

an CXlmonlin:lI)' ince'nlil'e 10 invl"S1 in big tkk<., it<'llls thut would IlthL ..... \ise hoc ~'OSI prohibitive 

lunid tht:' ct0!l6rnic ad\'cr"$it}' of tllC pail few iCllf"$, Sirnilarly, the iocrru.~ ability 10 "'ntt:' lin' 

L'cnain plUp(."IIy under Sc<,'lion 179 expensing ruk'!\ slrongly cncoumg.:s this sort of cquipmt.'I11 

sp.:nding, BoIh dt.>ducliOitS sllould be rn:lde pennrutentlo pmmOl.t" slt:OOycnpillll ir1l'otmcm, 

ABC also >upporu the dc--duc:tion of SIlIt\' atld lucul sales taxes; the IS-year stmight-hnc tllst 

R'COVcry for quaJilied feaso:'hold jmpnJ\'~ments, ,,!ualilied rc~taurant buildings and 

impruvcments ("hieh we al"., Ix:licvc sltould bt: c.~paJldcd 10 indude new n:staunll1t 

construction): the abbrcViOlcd livo!-year wilt-in J!.lIin holding period for S Corpomtions: and the 

R&D ta.~ cmk 

Sound ta~ poliq' is nt.~· 001 only for a growing cooooruy. but alSo,! for a solvcll1 tCdeml 

budge\. The perpclltal l~n~ion Of'teHlpor-~ry 111.\ rcjj~r is n~illtCl' an e<.:ol1omiwlly dfectivl" nor 

!isc~ll y prudt:nt approach, lnsu;ad or annual "fiMOS," Con~~s muSt dctermir,,;, whi~h 

l'.xpt"lldilun:s ml-nt pcmt~nlTl! exk~lSil)l1, while allowing thosc pt\I\';sions tk:"111L'<I unworthy 10 

~pirc. 

Sincerely. 

Ua111 1'. Domwdn 

LJiR'Ctur, I..cgislJli\'e Aff.~jrs 
321 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.249

Uoust' Commilteeo n Ways and !'I'1eans 

April 26.2012 

~It ario g (In Certain Expiring, Tax Pr(lvisiQu.s 

' Vritten Comments :Iud 

Stlltell1enl for Ilu: Record 

oflhe 

M Socintion of rundra ising Proressionals (A fol') 

4300 Wilson 8h'd., Suile 300 

Arlinglon, VA 22203 

703-684-0410 

1-800-666-3863 

www,afpncl.org 
322 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.250

April 26. 2()I2 

Way, Rnd Mcnn~ COnlmluce OtYice 

1102 LonJr.>onh House Orn~e Building 

Wa.~h,"g1(lI1 , D.C. 20SIS 

Re: C.,lHll1ents fN the Ilou~c COmmillccon Ways and M~~IlS' I{ c~nng on Cen3in E~piring TB~ 

!'myisiom. 

On b<:halfoflhc Asso.:iot"m ofFundrnising Professionals(AFP). I om pleuserlto pmvidc a 

.... rincn statement reprdin); e~pirin~ ta~ provisions. poniculJrly tlie IRA Rollo"cr proYi~km th~t 

creutes a unique charitable ~il'int incentil·c. Afl' r~pres<:"lSthe Indi> idunls n."SJ1Onsible for 

J;l:n~ruting philimlhropic funds. SO we h~,e a uniqu~ understhndingofthe impact of charitable 

gil'ing and gil·'ng mcenli >'cs. 

Wc hope 01lT tiloughl§and fIl'rsp"'"'tivc ..... iIT prove helpful ro rhe House Commillet'.m Way~ and 

Means a~ it c<mtinu,,~ H,) r<,..,,·ic ..... ,,'pi...,d tax pro.i.ion$ such lI$th~ IRA RQllovcr I'fI1\"is;Q\). 

O r gunita ti(II,al Kuc kgrull nd 

AFI' is the largesl mmprulil u~sociatiun in lhe U,S.llIal f('pf('>cnts li.tndraiscrs in alJ 50 Slate.>. 

Fundraising serves as the L'"t1l!;nC that driws the charitable seC\()r by devdupil1lland m3intaining 

relationships with dOIlUfS and philamtU"opists whu provide tlte m":CSSDI)' fundin~ fur education, 

.sociul scrvkes. he~hhcare. medical res~ .. arch 1md the many other aitruistic functions provitkd by 

th.· '><.'(;tor. 

Fundmisin~cump cm~!\ls guv~m'Mn131 suppun fur chariti es and ~nsufCS the survival ut'the 

churitablc >~ttor when state, Inc:tl and federal g()I'cmml!r1lS lack th~ budg~tary means to help. 

AFP ro~ ~rs d~"~lupl11cr1l and ~wth uf fundraisingprofl'Ssionals th rough training and education 

and promot<'S high o:thkal standards;n the fundraising prof .... si\)J\. 

We<'nact thf Ut A Rullo,'cr I·r .... is,un 

Wl' urg~ Cong....,s~ to enhance charitablc giving by reenactin),' thc IRA Charitable Rullo,'cr 

provision, which cspi .....J at th.· cnd of2011. This pmvi~ on lIow~ tlon()r"s age 70 ~ and oldt"l' to 

(~clude from thtir tnsablc income any IRA funds up to SHiO,OOI) that have b<:cn withdmwn and 

tr:lnsfcrred til a charity wh~n filing B las mum, The pn)l'ision ~ originHlly"l13ctl'd as pan of 

lhc I'ensi<m rot~tlion Act of 2006 and WI" cst<'l1dcd lhrough De<'. 31. 2011. 

TIl.~ ;ncl,l1ivt:!; such as lh~ IRA Charitable lI.oll\)~er pn>v;~iQO playa vilal ruk in ell~"{)nr:o!:ing 

donors «) make sitts. csp..ocinlly ~s the.contribUliOfl n,n()unt~ b<:enme Inrga. The rtlilover 

pnwi!\ion is a pol"",iui ll,td unique way IhalOOnQr!i <::Ill suppoln charitable ~auses in their 

CO!lll11uniti".~. 
323 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.251

Private (\(mation> help I ..... 'e"'!: .. the impacl of gov<'mmem in"l'$tm~nl> llIld nlluw charilk's to 

provid~ the p'Ob'Tams and selVic~ thai do mll~h to auo;mcm th~ worl.: ofth., govenlm .... t. In that 

~nse. the IRA Rolln"er prQVision ri_odUCl'S th~ burd~n ()J1lh~ govemmeotlO help Ih,)~ Il"iS 

fonunate. and th~ pr(>CCl.od, ofthc: dOll:lt;on~ both incrcase Ih~ purcha>eofgt>ods such as IUod 

and ~uipment and hdp many ofuur ciliuru regain th~ir feXlling (emo!ltlnally, professiOll311y 

and financially). all ufwhich spun; eeOn<)mic pJV!;p<'1"ity and $parks the gro"1h ofta~able 

re,'elllle. 

MallY ind;\';dunl~ have more than sulTicicnt funds to relire comlortllbly. In nddilioll, intlividuals 

are enctlumgi:d under Ihe Current lax laws 10 liquidute their IRAs during Ih(ir I,f(time since their 

e~tate. will face Clmfisc:th)ry lax rale\; ofup la 8t) pl:r<.:C1lI if their IRA ((Inds arc left ttl a 

d~p"nd~nt or family m .. m!Jt,r(oth .... than their Sp(>Ilse). Any ~mlluntS left in all IRA when an 

individual diC'S Inay!Jt, Ia ~ed as in~olHe o the !Jt,nclicinry and nre nlsa ctlnsider('<.! asset!> fVl' thc 

pUrp(lSt'S ofealculming that individual's: eSt3tt"ta~ liability. 

11 is estimalt-d Ihat lhere ii mllre than 53 trillion in retirement fund~ ,uth as IRAs. Even if <lnly a 

small pertentage ofthcsc funds were dtlnated w ~harilable- pUrpQ:l<'$. it ctluld add ",i1liMs of 

dollars 10 supptm Ihe vilal wnrk th~t nanprofll org:lIli~alium d" in cammunities acrws AlHeriCll. 

III f3<:l, Ihe>ecomributi<lnJ; supp<m pn)ya111s for tho~e I~s linun~i3l1y weU-otTthmugh il1lp<lnunt 

SI.'TViccs. such as Iho~ pro.ided by heahh. etJucutian. ~ial set"o'ice~nd whuntl Q/'lo'Uni7.ations. 

The IRA Charitable Rllllnwr has wMcd very succ~'Ssfully O\'cr the lasl few )'~al'li. but i, would 

be f~r l110re ctTceli,'e ifit were made pcm13nem. Because dunuT'S ~rc ull3hlc til (OUIlI Ollth" IRA 

RollO\ ~'1' being in crr.:.."! el'Cry rear. they mn:ly plan ahead to SCI QSide funds 10 utilize the 

pr",·ision. Similarly. charitid and financial planne!'!; cannat counsel dunors SMul the IRA 

Rallov~'1' provision II-iven the all11QSI.1nnual uncenaintysurroundinj? it. We believe thatlhe 

provi~iulI's impact could reach billions uf tIQllars annually ifit ,,~re nmde penTIanent ur at Ic~1 

.. ~t t" llded much long~r than One ur twO ycal'S. 

I.laking the IRA Rulluvt"rpmvisian permanent simplifies the tax code. During a Senale Financ~ 

Cmn!llil(~.., hearing un Mardi )0, 201 I, lilkd "\low Do Cumplnity. UncenamlY and ()Ihcr 

l'aCIOf$ Impact Re~pul1$Cs to Ta:< InCL>tllives1," hearing panelis! Roocrt Carroll. Former Depmy 

Assil;t3flt Secretary rorT'L~ Analysis. U.S. Depanment of the Treasory, ~tal~-d thc folJuwing: 

There ar~ al~u a larg~ number of pruvisiOIlll- c~piring pr!,)visions- Qfkn 

c.tend .. od a year at a lime. In principle, Ihe periodic C)<lensiOll ore.~l'irin!? 

I"ovi~iulls Jl1\lvidL'S Congres$ an opponunily 10 l\.'Cu"sid~ ... a"d 1l..'C,·~h ~tc 

their effecli"~~less. but the l~cl; of their pertnallc!\ce may underminc the 

ahility ofla~l",yeno to rely upun and base decisians 00 the bencfits they 

provide. MOIl..'Qvcr. expiring provisions are no longer limillod 10 SI!"cr-JI 

dOlcn bu~iucss tax pro"isions, but nuw alsl) indude the alllTu<llive 

minimum lax(AMT) patch and the 2001 :uld 2003 tax cuts. The r<-'Sult i~ a 

la~ i)'Stem "h~re large !'Onions of the Code arc in cfTm temJl<lrary. 

During his orol lestimtlny, Dr. Carrol! Iluted thaI thCS<" temp"rary provisions wilhin thc lax 

sy~telH. pr<wisians Ihat nre c<lllslnntly expiring and subsequ<'1uly eXI~nd"d. add 10 the campl~)<ity 
324 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.252

oflhe lax syslem. which il1crca6~;; Ihe hurtam:mlic burden On IIIxpayC!l; and Ihe fc-dcrnl 

gPI·cnllllcm. 

By nlokil1£ Ihe IRA RollOl"o:r provision pemlonenL you would ~illlpli y Ihe lax cod~ nnd reduce 

Ihe nct'\l Ii~r Ihe fed~rnl gOI'cnllllcnl"s services t'Or Iho:'ic less tOnunUle while cxponcmi~lIy 

enhancing charilable givlnl!. 

We look r"rward '0 working with you and your sl;l1T "" this issue and on 3ny orher is,u~ 

~ITecling the dwnlablc SI.'<."lOr. 

Sioccrely. 

And .... ·" Wall, Fln~IF 

Presidem & CEO 

Association of FuudrJising Professionals 

A Wal!6i ~rl'ne1.on; 
325 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.253

IIW~ l1uopoWO' i • • n """""o"ono' .,"" ... In ,~n.w.ble ""e'cv proj.a """,,,,I,,,,, he~dq ... ,,<>rod In Ill1>an~ . .. y 

OUr fI,m 01 ills~<lUlled mflll!Q(oIo!!:l<l$, ."81~$. e",.;ron""," ... ' "*;'~$I$, ."d bu"n.~' 0..0.",<1"".1< proVide 

sofulloru. to ""WO<' PfoJ"'J d~lQ~m"" •• In.o<lm"". ~nd llna"" •• ,,1.,11 o>«1o.m.no.. """'SV 10'Ka<Una, • .,. 

puOlie ~icv oml pJO""T"I IO' IO"d-t>a.eeI ."" oils"",. wind eM'1Y ",o,ecu. 

on boil.lf of D"' <O<I1PiOV I 'I. Coolfeo< 10 I!!<1""d .ho- wind """"J'I pr<HIu<11oo I", ,,~i, (PITI •• qutdly •• 

_,,~. YO"' Im ... eeI .... ~ion w,H .~"', e <>nJIoin;Il"'Wlh'mI .""~I"ed i.-..Olen' II'Ilhe wiod and ... ,ry wIo~ 

crea,in, &cod lobo for ""'.,oeO"'. 

The pre ha, _" """"'"""'.'10 the ,"""u",,,n.31 . ,owth 01 1M wind lnd""ry ""'" .he I ... d~. ""''''''1 

d ..... ,01>1'" '0 'K",e ~" e ro' ..... #i ond "''''1 ptojeCU to «lmpJe1ion. The Un~eG Sto •• • ""'" ",,"m (7 

lisowltlS 01 wind ""0'1'1. 75.000 jobo, SOO ",a"uIKlIHI"II I_tl ... ond ......" S 15 blIU"" 01 """UO, '"WI'm",,'. 

:occ",d'"1 '0 ,h. _'lain Wind ~""rp A .. ocI;,IIon. UI:. ",hot comp;>nfn. "'" Ii,..., ...... ''''''"' with 'M indu.tt"Y 

. ... """" >upport. ""'" 100 hllhly .... ~lod ~. ond .e<h"ololV jDbs m ""bOny. NY. In odditlDn '0 .. ell~. ollkn 

h,ou~hou'lile U.s. 

With """ert.iI>'~ "_rnI t ... ext.",1oo 01 1M PTC. IhO wind '"d~""1 ".IId.to I ..... 37.000 lob. and OU, r"", ~ .. 

&I'ody 1><'1"" '0 .... ,he ~IfK" of I~~ Ioom'''i "P "IO~~' ou, c~.n" ore 11I< ..... ~.1y ~ •• ,'.", '0 ......,.;e ro,w. ,d 

an the _0" ..... ", of ,..w wir><! ""ojK!>. I. til. I'Tt i. n<>l ex,,,,,ded Immedi.,.Iy. OIl' ."."".,,>'1 o"tid"" .... a 

<jgnlfiGil"' <jawdow" In bu,''''''' wh;ch '""I .<)<UI' in ~ 10 .. t>I 8""d ~'''l job ... 

Tf>r<!ulhoo, It. h,,1O<V the PTe h • • been Illowed .0 .'PO'~ on mult'ple ceuljOfl'. which h,. had. /Ie!:""'" ImPI<l 

on tho lrowth 01 """ bu""~'S .nd .hOl 01 It.e todus.ry 0 .... ;01 1. We ... flOW 10< .... . "" .. ,c.>dl "",in. ~"'~P' W<th I 

lot more .t .... ke. Thi ... not the II ..... to hurt. ~Tt"-tec/t i ,oWlh Ind" ....... "'lJl'Cl.11y ""e '~., p,o","'''' , ... " 

e ..... '\< IKhnolo&Y."" ,0' t>f_n job "."or ...... 110., VO" c,,~,.der 1o<>8-Ie ..... ;nce<lU,,,, to o""ou,aile "'~l.rnod 

growlh of In," wIr>d e"1'tJ'o' 'nOu<lry. ~ft ..... ,1. Ihe 0<1 and P' "",,,wi., h .... beert " ff",dod Incentive, '''' decodH, 

. "" 'M "'.0 ma/<>n.y 01 Americ.ns ,up""", ""B'''"I in,ent""" I", wind """'IV. 

ComPi"i •• fill. OU" need '''''I'letm polley ce'''''nt~ .. ",d., 10 mO"'''''" job •• nd ......... , wltn totIlfde"ce In "'rille< 

jol> FOWl". r, II",.,o >uPQOt! the wincll""u"ry', PI"' .... and P'ome ~ IIIe , •• ti •• ,1on of mere _Ifll-li~," 

.tob" job!;, ct .. "~, . ..... 1Id ~i~ se<"lHit~-.. no' In th. n.'i ..... 1 t" ..... ~". II ...... jori ~ of SO o.eo .. , .. lIYde d~." 

elKtrkity pcnfoliot; • prior;". i "d '" ,""oukj ,he federa l i"""' nmem. On bfh111 of "'" """''''''1. Istrons1y "'I' 

tNt committe<' to ImmodiOlel1 .... p!lO<t on QtoMlon 01 , "" w1nd .., .... 11"/ PTC. 

@-,~I eLI, 81'\!C1 H. llaile-t. Ph,D, 

PrHi ...... '.nd ceD 

.m.' ............ IU I 4bl H ... lomn ~""I ., ....... ~.1IlDS 1 ... 5011 or StI·11J->l!)U , . ... ""_.,..,"'" 
326 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.254

""'tact Information: 

8<\1< .. fl. !laiiey.I'h.D. AWS 

Truepow .... LlC 

463 Ne ... a,,,,,, Road 

Albany. NY 12205 

Ph:.1 518· 213·0044 

bbaila!@awwyelXlWf{.cQro 

....." ' . . ...... : ....... . ..... AWS w-. .. True __ • __ power.. " 

AWS T' .. .,.,.. ... , ll( 1 '~l New ... "'" .""1 .. , ...... NV 'll05 1 U$l.1 p: ~" -lU-\lOU I .... ',""..,....'-'om 
327 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.256

AVERS MARITIME SERVICES, I NC. 

171 1 Ktil Loop. Sui •• 4H 

n . ... ,,". 'h . .. 71019 

1 •• n"~d1i., ,,,hlp."'!11 

A[lfiI 23. 1012 

To: Ways and Means Comm;n,.., 

Via Email: wa\.;..J.ldU\c;lI\s~<ubl1.!!i.lliU!)~I .. mail.hol.%go .. 

Re.: II curing un Ccru;" E~piring Tax Pro\'isi",u 

Ph: /7 Il ) ' N ~7l\O 

.'." (71l)'NIJ4.I ~ om«," n ' I"hi".tu ... 

Ayen; Mariljrn~ Services. Inc .• a Icuding Shippi!\!; A£~l\I:y and Tcmlinul Op~r3h)rbIlSL'<I on 

Houston. TeSD~ urgcsCrmgrcs~ 10 c.(lcnd the wind ClIC!1:Y pl'Oducli<m 14X cn<Il, (PTe) os quickly 

u po;;~ib e. 

Our ~ornp;my n:pl\'Sc nl ~ ~~'Sscls luadilll>and di",l!argill!l in Lh~ ron of Hws'VlI ant! Purl of 

BL'3Umonl, Te.us rnrrying C()nlp<)flCnlS for the wind energy industry nd Ihi ~ "",ivily tOmribul~S u 

. il'nificlllt pcn;un of our busi .... 'S~. We I.'mpluy tOllgSlu),cmcn,lerminal drivt'l'S.lruck driv~T<; a"d 

OlhcrC'S5<!,ui~1 pcrsollncl ((l h:mdle this cq uil'mcni ol(wiul1-throu!;h HOUSll.'ll. nIt loss oflhis 

busiu':n will si!!l'ificllntlyelfecl our\xJllom line and hirill!! elTons. 

Wilh the unccrtoin lyofthe PTC'~ fIll me. we undemond from buyers Dnd seJl~r.; bolh Ihallhcy arc 

eum:nll ~ "indingdoll'n produclion and inslaUulioo of n~"" units and are rcdirec:ling~rrOn $IO 

oth~HQUntric" Thi~ "ill result ill the los> of the business fQr us and e,'t"Il should I .... PTe b<'-

ulcnd.od later Ihis year or nC.t!. new production cuuld nut bt:gin for u,~r 3 yea. forcing us to lay 

otY lrnin~"d el1lplo)'l."\!S and sian ~ga n wilh ncw trnim.'cs ;f/Wh~n production rcsuUl.'S. 

We slrongly urJ!~ this COl1lnt;t1<'C 10 immcdia cl~13 ~ LIp an t xtcnsion orlhe wind .,.,crllY 

l>ro<!L1ctiOll UiX CU."dil, 

Sincerely. 

AY"~ Maritime s.: ... ·ico>S. Inc , 

L:IITY L Renaud 

LLRI 
328 

Statement of Baird Swanson 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.257

Baird $wan!i(ln 

310 1"AI'cS\\! 

PO Bo~ 981 

Pinc lslnnd, MN 55963 

(5117) 356-4873 

bairJl</ pife!.nc! 

Tille of Hcuring: Iknriog on C ... "ain E~pl inl: Tu Provisions 

I resl"'clfully urg ... Congress !O e.lend lI\c wind cnc'¥y production lax credil (PTf) as quickly 3.S 

pussible. 

A. hns bc<:n mentioned lime nnd ~gain in pre5s stories, the Ilncenajnlyin theal'llIlability of funds 

has a chilling df"CI on in, c~rmcnl. We neW 10 put our muney where our mOllt h is with resl"'ct 

to g,1Iin.!! unt6" ","": ureent.'f ~Y''''o nomy. F()SSil fllds 8ren'tlhc fulure. Alternale cn''fgy~urcc' 

are, alld WIND is a leadillg tcchnl>lu!;y in cneq;y allcm.tivt.'l;. 

I urge Ihe commilll"t'ro lake up an extt'l1sion oflhe wind ~n;.'rgy produclion tax credit 

imm.'<.Iiately. 

Thank you, Baird 

SwaHson Ta1<f"Iye. 

aud I"\lter 
329 

Statement of Ben Wright 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.258

To tile HOllse Ways and Means Committee. 

1. aen Wright. Physics OcmOUSIJ'3lOr"l the UniversilY of Oregon in Eugene. 

OR. respectfully urge Congress 10 rxlcnd the wind en"rgy production tax credit as 

soon as possible. 

Driving through the Columbia River Gorge only hours from my home, It is 

truly Inspiring tn see hundreds of windmills lurningaway. I've spoken with young 

chUdren durlngoutreach events ~t local schools who'~ cited wlndmlUs as their 

inspiration for wanting to go tu college. By delaying renewal Dr allDwing expltyof the 

PTe, a great opportunity is lost In foste ring strong values and providinga sOllrce of 

inS'jliralion jQr American cbildren to be driven to e .... cel. 

Flirthennore.lJy stalling on approval for this legislation, wind manufacturers 

are suffering terrible financial uocertainty for projects thaI would otberwise be 

readily undenvay and would produce high-paying reliable jobs for thousands of 

Americanswhile driving the American economy to its future of suslllinable 

manufacturing and clean energy. 

It is imperative we bolster this rapidly grnwing sectnr nf nur economy to 

prc~erve and "~pal1d Its myriad nefjt~. 

Thanks you for conSidering my comlllents. 

Regards. 

Ben Wright 
330 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.259

• 

I::xlcnsion or Produclion Tax Credit ror Wind Gencralion 

~I. 11I of 

Rober! A. Derman, Principal 

Il rn n £.,," omio 

B~nnan EcO<lmni.5lsan C\'OOfJnllCNllsultjng rom) s~ialil;n); itl energy. 

~""ironmc"'aJ. ""d n"(ur~1 rcSOUK,' isso...", including the cc"",onli~s of wind );""CI'l1I;oO; 

and has sob.II.101ial e~pcrienc. with electric Iililil i.·s and th. coronam!.J of NJ!,ulalw 

mar~CI$ "nd the implicali""s for public [IOliey. Be""." Eco",,",iCll;$ pleased 10 provide 

,ommeI1lS00 " 'hcthcr the Production Tax Credil\PTC) sboold be c~lcn<kd. Hennon 

ECO"<)Olk~. lih'mm;1 cClmomiSIS.;' fund~'I1~nt311y opr<)S<.'d 1<) I:'-'vcmmcnlsub!;idic;;, 

Ilo .... "".r. based on our ~nalyj;js "rthe PTe, we nnd thai the PTe docs n(lf conslilul~a 

subsidy aS~"OmiS1! lypkally d.r.nClha',cnn. Rather.lhe PTe ls in 'he ~"l~~ory,,( 

lin ioceoli,,,, l!) ~ncQurngc eCQnl)l1lic dc eIQpm~nl. It may nl:;o serve to redu"" unlnlcnJ<"<l 

~Ollsequ"nc"'l Qf Olh~r re~ 13 QI)' legislation. 

CQns;dcr~"d as on ec"''''mkd~vclup'''~nt inoenti\"e. Ikrrnan Ewnllnl;C~ findS lhal 

Ul" PTC is cx~cptiQoa ycl).l t·~mclh·c boI), in Ih~ vel)' n~m>w .<Cnse Qf f cdcl1Ii budGel 

imp."IC~.all w<:l) ,tS fmt1' a bmadcr l""OI)l''''ic (X'rspllCli,c. AccQrdingly. Ben,,,,,, 

F.cQnl'mic~blronl;ly ul"l:e& CQngress In extend Ihe I'TC hc)'(>I\d il5 M'hcJukd sunset on 

Ikt'ChI!;>u 31. 2012. BmMn r...c""omicscmphasi7C5lhaT I}[Jr support for the PTe ;s 

limiloo (0 th.· PTC alone. nod,b,"" nul include SUpP.)f1 for an inHslmcnl(~x en..!il CITC) 

i" Ii.tl oflhc PTC. wtuch would 1\01 "''<:''S$aril} rrovitlc Ib,- Slunc oc"tK'fns ~J>d would 

fronl·I<lIId Fedcf1I1 bl>dJ!,cl CO&I$. llaSi.-d on Qur analyses. Bem,.n Eco (>l1\ic~ findS Ih.1 

~xI"lIsion of I"'" PTt wonld m"k~ a net romribm;on 10 F~dernl budget rcHnu<:S. We 

funber find Ihallh~ I'TC lends 10 fa'Of US firms rdativc II) fo ..... il!l1 firm. and m:l'onmemJ 

ron&idertlliQo ofmodincaHon~ lhat ,,'mlld fW1hcr tn'llct (he Inct:oll~c hl US 

man fa<:1ur~n;. Sj)l"<:ifIClllly. our Cl'",melllS dcn'Qru;ltlIlc: 

F'TC It a, A l'o.iliH I"",ut 0" Th~ Fc n.l lJud ~t; . nd 

I·r .,du~t;"n And Emden~)" Inccllti ••• f.,·., .. US i\h"ur.ctUITfi;. 

PTC Has A I' ith ~ Impact On The fNlcralHud r;ct 

Qur a1)3lys,s of Fede-rulboogc! imp:tcis appropri~ldy f<)Cu,.,. on ;nore"'etllal pn:.: 

in'I'".I>. Not ul" d;nglh~ PTC ,,"o!lld haw nQ inHlIl-dialc impacI in Q\"eI3I1PTC credits 

in 2013 and in lhenear fulu ..... fOT Currenl wind gCllc"'tiQII ond wind l!~n~nHion .dd.-.J in 

2012. Rmilcr.1lO1 c~lc~,dilll! Ih~ PTC WQuid climinlH~."kI;,;u"-' 10 PTC fQr gl'llc-raliQn 

~ddcd ~f\cr D«:~mber) I. 2U12. Bnd would lIul ~' cn h<,!(iI110 ~ignllk~l1lJ) l"I.'ducc I'Te 

cl"l.'d irs unlil10t51x"CJusc the PTe lx:ndil pcr I'roj<:l:l is l;>J<ld r,,, 10 ~C~t$. Aocc>r<Ji"slr, 

Qllr ."al)·sis Iix u§C& unlron lhe Inclell1c'lll in I'TC eralils. Similnrl y. \\'C focllsQnly on 

Ih~ likdydi=1 employmenl and llS$ociall:d budgel impaels. 
331 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.260

, 

All ~""I)'$o:<, ,nch>ding lh~ by I~~ ('ongr",,~junallC~""rch !k .... ·"c. ~ur(1Ol'\ Ihc 

.",..,1..,'0011).""" 1.,"eI ofnconOOlk II<li\'il), in Ihe I"ind ;nd..,;,ry, indudin!( ~mploym"m. 

is do.cly Ii • ..! 10 Ihc PTe:. Due!O n:qujreoncnl~"f(he i>ubli. Ulili(;!:> Regulalory I'olicie. 

AC'T(PUICPA) regarding pric;nll.nd aV<)icled com. $O"'~ Sial"" "" Y r"C~ ,,""5'''''nu; on 

wholesale pricini "rn:"""",blc energy. AC''\Ird n~I)' .• rTC may"" ~CCSiia'Y n ro with 

m.nda1i>ry Rcnc".hk l'ilI'IfOlio Sl:lmUnl~ in m~n)' Slal,"j;, '11lc 

obse,,,,eura PTC may to. a .igtlificam barriet 10 d~, clupmC"1 urwind gcm,rn.liQ1l. 1"<!CIOd. 

it i! ""I<'''O!1hyth~1 on May 1, 2012. Gaml-s3 suspt'nd(d plans 10 Inmll whal m~y ba,e 

bt-cumc Iht" liN u _s_"m.l",rc lurbi" •• dl;ns f"llicy lIl'IITrtninry. l'he I!1)ml'''''Y will 

instcld mm " (o.wanl wilh • similar pmjcc\ ofTSpaill's Call3ry 1.lands.' 

Uur narro,,' focus on b"llget !lnpac~ "f di,,"'C1 ""'rloym~1 c('Onsc'<l"~'ICC:S should 

no)! ~ ~on~t"lCd II'! "Uta,;."-~mcnt that thc:;e WC>\l ~ b<- thc<mly negaliv~fOn~(I"'1\ct:l of 

n", "_"endin, ,hu PTe. Rmll~r. "urconclusion is Ih'I ,hi< illlpac 'er~lIt:! a ll OO,iOl" 

tower b<>Imd'lI1 nqpt;''C imp'-cts; and '-"~\ Ini, t(lwer b<>\,nd es.imate i~ mOl'<.' ,M" 

5ul11dcnllQj u>lify eXle'lldinJ',lhe credit. 

lJ.crm3n E.,.OO(I",i(:;$ ~lIalys,. aSsume, all "'Crca>e in PTe cfi,dll. of 

BPrro.,ima\dySS~2 ,"illi,,,, all",oally. rn..s~d on the· i"'-"liIa,.,. io wind S:c"I'rIIlion hoelwwn 

201(l and ~Ol !. Sfl<.'Cilic.liy, a",,",i,,~ 94.652 Ih,,". and mWh in 2010 and 11~_7 7 

IhuU9and mWh In 2011,' w~ culculalc an i""I"I-'Il"" of25.097 Ihousand mWh. Uas..-J on 11 paym~nt ofSn I mWh. III .. in~remenl"1 PTe w8S $552 m;lI;on. 

Since the Bureau of uoor Slali"iCJI (BlS) doc. 1101 )"1.1 "'pori wind energy 

,·mploymenl. tllol C"ngr~s>io n~1 Rc.c.rch S~" " .... leRS) idcmilics Ihe A",e,;""" Wind 

Enc'l!Y As"""ia~oo (A WEA) as til. brSl =" ofinfonnatioo on wind ellc'!!)' 

~ml)loymcnL' BIlS<.'<I <In an ill&"",I<k~II.'ll<I y. A WEA n.'f'01tS '-".,1011 cmplllY"'''''' in 

wind £cncr:ttiro of7lJ,11()O \\"QuJd okcii",: IQ 41.000 in 2(113 iflhc P1C we .... Obi 

r,"'c\\"',d.' Und~r Ihe bi~ ~ 'es.ri.til'c 8.sumpli<ln tltal the ,mly l>cncfilofthe PTe "'",,, 

11!_,urJ1<ll1lhc al risk 37.000j\lt>s. 'hc bud~", "<1St fll,. each or,he,;cj,'bs, in In., form !If 

PTC cn.'<Iil.<. woulJ bo SI 5,000 pcr job. 111<, bOOb ",I q"""I;On..lhclI. i.l" ide,"ify!he 

budgel ~\<.'nu ... ~,atllow rrom those joM. 

Th" <1;,,,o' FM~ .. I m,de<" """nd,," <lr,""", j"h<;. $ l!l,iUl I"" j<lh ",<"mi"e '''' 

;"din.-':I cmplnym'-'f11 '>f "'hcr c",,,,,",nic C<oru;c~UCllCes. Sfl<.""iftC'~I )'. ollr 1><:" .. ,<lilllatc "f 

Ihl' ",·ct1Igc ".IJrY io '-"e wind ;ndum}' i. appro_.ill\~tcly Sli2.000j

• which w:.ts coot;n"c><i 

.,: a reasonable "",imale in f"ll nil.' ,"Qf11 (ooti,,,,s" illt illS. lhsed lin IOkin, Ihe ~Irmdard 
332 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.261

• 

dedU':lioo. all ~"CI1lJ!,C incQtllC lil-~ rate (}f IS% ~nd fiCA and MC>licar< t~X~s aI6,2% 

Md I.4S% ",~pccti' dy. Ih;5 would fC~,,!t in bOO~I""""""('S ofapPl"()J<im3IfJy$IJ.OOO. 

axd'I>'/''f'-ofDny ~mplo)'cr ,ncOme ta~C'S~nd f iCA com,ibm;Ofl'. Ba>ed 00 

uncmpm)'IllC,1l cll'npcr!~1ion of S3JQ ' '''cd;". each of lh~~ jobl; ""prC;C,ll:i an 

unempillymcn, COmllenr.ilI;On li.;lbiliW of apfICo~ir!la\c!)' S 17 ,000 pcr year pcr joll, 

J 

Thus. at a ",in;'»!"". the neg:U"'f im)lao on the FC<.leml buJgcl " 'OIlld be twice til.: 

PTe savings, alIsum;Q!! nQ indil'<:\.1 employ",en' imr;K:t!i. II<) olh<:rfCl~tcd lossc~ .• nd no 

" • .!!.IIt;,·c implclson ~ta!c~. On a fedcrJi mldgtt bMi$ alooc. and IlndCtlhc O\'crly 

ron!;cI'\'~t;w and highly restt'iCl;ve _ss""'plion! herein.. the PTe should be r.:~ thori>.cd. 

From a bud!;cl impact. it c.,.cludc~ tile tu Il"wm.esll,at "auld be J1Iiill by future "lod 

P"U<.«:IS. Indeed. Ncxr£m bI1<'l'gJ' cO"~ali"cly eslimales Illal eVe" a ooc-y"ar cXlcn~ioo 

Ofillc PTe would ",~"II in a fLSClII net bcn~r.tIO the f,ovemmcnl orS768 ml1lion." 

Pruductiuo Aod Efficirocy In Cenli\ r~ FlI'ur US Mnnufuclurers 

il.:~ an IIl "<'!;lII",m a~ erroil Ihal accrues whelher""",,1 an inwslm~m IS ~ 

or "",fuland ":nminsso oVer it. life .• production I,.,. credit is di=llypropor1ionallo 

Ute n<'"d ~nd usdillness oflhe Ve~lmcm. OWl' Ihe lif" urlhe in~lmem . 11111"0:'10'" 

.cp""'<'I1IS a >I:'t.~lIldary JiSiriool~m or Ihe comi nuin!: bt,'f",r.t.· the inv~'1mcnt c",.les. 

MortQver, where an ITt' I, al best "nltral wllh r.:sp«1 to cftieiency,the PTe f. vol'S mo", 

cftieien! ~cne"'tion sy'leru.~ 10 Ie .. efrlcient s~neration since the pa)1tlel1l' = j,'.e~le , the 

l;t''''''ler Ihe !:enenltilm and c~p<'CLally'he lower W lo\s<>s in Ih~ trunsfomllltion pJQ<e.~ •• 

j,'en ~~liOfl "o IR~e trom a 'u,hin.: is su."pcd·"p r. "" ,llhe t",b;ne and Bj,'.;n al the 

5ubs!al;oO prior 10 lrnn'miss;uo. 

J'rodnctirnl and etlic;<'ncy ;n( ~mivt'$I'''1Ld to fUI'or LIS InanufatllLrtf'S. Unl;h 

IOrcign m"nlL .OL.'''rrcfS, US I"rbine manuractu",,,,, suclt as G£. "'rrJ EUropelIrr owned 

I"rb;nt m~nlL tltlun.'fS witb US f",il;I;I-'; melt as Vesla. and {jam.:sa row, on biglHn.d. 

IllO'" cffte;enllllro;nl'S. Chinese imports. by comnm, arc oriented 1011 a,&! the Jo"""cnd 

m3r~el iliON 5ellsilil'e 10 ;011;31 .OSI. Similarly, step-up Iraosfoml~fS an: ofl n Ih" Mwenl 

I;nk";n wind r.,.,n Iksigns a> ;nellie'""t lnmSrOmK""h ..... · a low ;n;,;a] OOSI but 

~ubstant;~lly higher 1(>SSe,,- More etTle;l'nl jlep-up t",,,,ronners. such ... 100.., with 

amorphous melal co",.,. avoLlable frum I""lor US mallUf3ClmCI'!; like AW:! and Howard 

Indu~lrtes. may be marj,';o~Jly ",ore~p<~,s;ve lh3n foreign ;mpon~ bul ha,·c sub51aOlJally 

low~, Ius ... .,. ",soll;ng in murc.dcclri,,;IYUI,tti!.blc r. .. ",Ie. Wind r.~nn ,kwio"",,, "h" 

devdop wind f~nns ;mendingto openlle the I:'nns IMm>eJ.,.,.nnd kit lite JIO" er len{] 10 

focus mu",On cflie;cncy as Iheire.minl!' derive from produClion. Ikvelopi:'" wlto focos 

on assembling pnJj~Cls fo, s.:tle 1<1 opentlQr> tend 10 focus on I<lwcr lirsl eMI ~qllLpment al 

~ ~ ... pcn'" or dftcil'nCY, a. proli" on Ih. sal" ofU ~ farm an: high ... \\,;th low ... 

&,elopm.nt COSIS. and Ihed~mMd for \I;nd l'lIplIcity o:'!alive 10 ~u~ly h'$ nOI penn;no<! 

d;.crim;nalion ba".,d on effici.ncy. 

~ hltpJ "".,<)_ .... _<o .. Ihu~ ..... ..,.di."'<.,'·)""· i.'~ .. .Jjo .•. ~ _· ... ,Ow ....... >1', 

, ~ltl'-I ~w ... .ft."onm<r l~ r ...... rc ... < ... pOr ,..(<<i£n,>OI Ond . "'o.p.lf. 
333 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.262

__ ... __ ................... _dIi< ... 

..-..-~ __ ... "_ ...... K .. _ 

--_ _ ,..-.. ..... ........ _------ _ ... _ ..... _""_ ... -."" ...... ..... ...... _-,-""_ .. ... ~ _______ K ___ ... _ 

_ .

-_ - ...... _0-..... - ... -..,. .. _ ..... """ ....... __ ... -

_._..........._---,- --'.-.-- .... _ .... _ .. ....... _--_.,., ..... _._ ..... -. --""_ .... ",' .. __ ..... _, 

-

_,'~ 

---

__ ...... ........... ----~ ........ _...,_, _--_ ... ... _" -.. _.... ,_ -.. 

.. _ 

-... .,_ .... _"' __ .... 

.-.-_,---_.- -.._- ... ... _._ ....... __ ..... -.. _---- .. _""" ... _",:-

----

., .. -~-----.... -.... - ..... ---- ~ .. ,-~ ... ,--
334 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.263

Contilct Infofmiltion: 

Robert A. Berman, Principal 

Berman Economl(:S 

www.BermanEconomlcs.com 

1915 Grand Court 

Vienna, VA 22182 

703-281-0490 

703-655-8398 (cell) 

BermanEconomics@gmail.tom 
335 

Statement of Bill Hinton 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.264

April 23. 2012 

Ways and Means Commiltee 

US Hou5e of Representatives 

Washington. DC 

via email 

RE: El(lend Ihe PTC 

ladies and Gen1lemen 

661 Cumberland Drive 

Sunnyvale. CA g4067 

billhllton@me.coll'\ 

As a privale citizen. I am very concerned about lack of progress in establishing 

alternalive energy generating capacily in Ihe US. Your exlending of a lax credil for wind 

energy production would be a slep In Ihe right direction 10 suPPOrt wind production of 

electricity. Please lake action to extend the credit for wind right away. 

Sir1cerely 

Bill Hillon 
336 

Statement of Bingham Greenebaum Doll LLP 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.265

Hearing on inll or Wind EIlHgy Produ~li n Tn Credit 

I n:op",,"senl sCHTJlleading "'ind projecT dcvcloperslm:lnuracTurcrsin IndiAna Dnd On Tllcir behalr 

urge Congr~'Ssto exTend the wind cncftly prQ(luct;onTa" credit (PTC) as quickly as p<>Sll ibl ~_ 

Wilh the ulleen:.inly of the PTC'~ fmure. they are reluctantly winding do"" a signilicant porlion 

oflndiana wind dcvelopment ~l1ivity th~( invC'ltment to date in our swe has I\Jlalcd :.Imos\ $3 

billion) and in t~ad n:diri.'<:ting runding. sen-iecs 311d tafrresoure~'S to C.nada and South 

America. This will result in this po!cmial invcstmcm in Indi ana consisting ofconstruction jubs. 

tax dollars. 3nd community benefits shifting llway frum th~ US. as 3 dirc't.1 result ofCongrcss' 

lk:l ay in p.1~sing a timely c.Xtl.'llSi<ll1 orthc PTe. 

w~ strungly urge yuur cumm;1[ .. 'e 10 imll1t'diatelytake Ull an c)tlcnsion oflh c wind enc'rgy 

Jlmduct;on ta~ ,redit. 

!3ingl.am Gre<:nc{xlu1I1 0011 LLl' 

2700 Market Tower. 10 WCSt Market Sl. 

Indianapolis. IN 46204 

317-635-S900 
337 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.266

810MASS ''''''''''- "' .... ,.,,, -""'''''''''''' ._",.-.." ,.,:31-" .. _ ""r ... ",_ "" .. ,,,,n_ ..... - ... " rAn:." ,:.,,. CIt'Ttif. RI() "A-"~ f'()"'f.K A:>SI I.1 ()~ 

""...--. __ .. 1"""-'_·_ .... ·_ .......... _ .. ""_ ...... """"':!II ___ ""'-"-.. ".,.~--.---,~-.. ..,;..,.""' __ ·""A_ ..... _"""' ___ ,_ r_ 

_____ ... ..-_""' ..... _ .. _ _ ... _ .. __ ." ..... ..... _.j .... _, .. c-,. ]('!O;' __ 

• • A .... ___ .... _ ............ _ ""' ____ _ 

....... _·;.. _ .. ____ _ ........ ""' __ "',..... .... .. _ _ ...... .. . -..r~ 

__ . ..,_ to_._ .. _ ....... .. _ ........ _ .. __ 0.. ____ " .... ___ ... _, 

""'''-_I _''''~.s._ " .... '~ ,""""" ........ __ -, ... ,.." ... _ .... .t ... _., ___ _ 

__ ... __ _...._ .......... _ ...... IC_ ....... 

.... _"'*s.._ .... M .. _ • ....., .... _c_ ........... _ .. _ .... _~ ...,.""' ___ ..... _ ... ___ ...... -~.,;J)ioo "" _ ... _ .• 

.. "'I)- .- ......... -. ... -.. ---...... -.-""--... .. - -..... _'""'-"'l_ ... _"'"... ... ~ .. ,_ ............. __ " .. ..... ........... ~,.-- -. .......... ,----_ ...... ... -.... -"'-- ... __ .. _. ..... "".,-.. -
338 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.267

.~ -' --.... "_ e 

--

"",,~---,",- _ ... __ .... ---... _ ...... .... __ ,-, .. -.. "~'- lo rJ_R_ ... -......... ..... ... ---- _"'~ "'--"' .. ,._ ..... ...... _ ......... _:0", .,. •• , "' __ ...... _ -' "{"-.-"".r",,", "",_., N ... ,_-'-'01 _. ____ ._""' . ..... "" .. .....,.. .. ~'rl1< I""...;«1.~ ..... ~_ .. 

... _~~ -.. ............... -.""~,.,., .... ,_ --"'- .............. _ .......... ..... ('.01000. ---- , ........ _ ... .. -

_ 

... _,_T .... r<.........-.,.o_' .... ""'.-_r_IJII_ ... __ '"·_ .. _" ..... _, .. W_' __ .llO .. _' .. _ ,_ ,-",,,,-, 

0.. _______ ... ".,,_; .. _ _ .. n'_ ....... _ ... 

--'" ...-.... - , •. ;." .. """""" ....... "'.->"''''-'' """""-> .. --""-"' .................... .. _......._ . ,........- ............. .......... "".-..- " "-"""""-- ... --... _. n _._- .. __ .. "' ......... _ .... _ .. . ............... _ .. _.-., 

.-_ _".1Ol ...... _ .. -O;~ ...... ,.,.- __ k; __ ........... "" ..... • ..-. ______ .... _ ... ___ ... _ --

_ r .... ,,_ _ ...... .. ... _ .--_ ........... _...-- ............ _ ... .-.. .. "'_ __.. D 

-.-.. -:otl. .

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______ _~. _____ .. .......... "-.. _-o "-"' •• __ -.. ""'_ ... ,..,.....,..,I«-- .. c ,~ ....... ... __ __ 

-_ """* • .." ... _ ... ... --.,- _-..... --~.""-.. - .. -

r ___ ...... ~_ ... _____ Tlo< __ c ... __ • 

-~ -..... .. ---... -... --.... ~ _ ... .. - _ -'..... -_""'*- ... .,....--~"" -. -_ ... - .. .. _--- ""--.~_~ ... _ .. ,_ ..... - -.-- _ ..... " • . PM. ..... __ -""' ........ 

....... _ -.. 

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.......... (_ .. __ ..... o.o. ........... _ ... r--_ .. . _ 

............. -...-.--. __ .. _ .... •._ 

.. .,.--_ .. ....... __ .............. .. - ... _-- ... 
339 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.268

Bia 

~1OT1 "~DI O(.¥ --... --~ .. - "t~n"'nt fur Ih ~ K""urd "r th o 

U.S. " /lu .. Co,nmit"" " n W.Y' ond M.on. 

Apri l 16, znn 

Th. Biotccnnowgy 'ndll,try Organi>:aUOII (010) "'p<CSen,s more than 1.1 OU Illnov,ni,'e 

bl",..,hnu iQgyoolnp.1ni", ooJ ins1ilulkrn ~ '"all S{J Slalc'S. ind odi"!? l~aJi"gc\)l1'lp.lnl~ in 

'he proo .... li~n of ti""cnlil'>Ml :Jr1J 1Id, ~~d binf""l~ ,,-,'cv. aliI<- ,'/'I(:mical.,~!Id ClIh~r 

>"'IlI;""hl. cncrjl) ;u,,1 manufOlClUring. ><>I,,'i<>n~. 

Ad"~n",'11 bi<)r"ds. ","<,wable ~hcmkal •. and bi!\b.1scJ producl~ h~,c tn.-mcndUUSp<lIcn.iol In add","" the nali",,'~ , ... ·o'n'm;<. cP • .,.Y "od na.ional """uri'Y challenges "n<l 

.,.., "'ad)' I;' .. l,{)lU",c,c;al d.ployn'~n~ hUI $imply "''''''''' s,,<ur~ ""'-'<loo copi,a' for li"ll. 

uf~J'~ lnd bk""f,nc'f)' oonSlnlC,io" ,,'lIhoUt .,o"m",..,. wPf'OI'I. 

Co ~ $'m"IJ i'lCloo. the follo" in~ ;mron~nl la~ P'l"',s,on; on an)' tM'];.)' la~ 

"';'enilers ~kaSc 10 help ","""able chomical30<l ~d\~n.."'<'Il biofuds dCI'eloper; access 

oril;'al ~.pil8l 10 mOI~ Iheir proje<:IS romard: 

o Exlend 'he cellulosic biofucll prodUCI;OO la, ~r' ar.d IICttkra,~"tl dep",ci~(ion 

for cellulosic biof"~J P""I"'"Y for lh. longes1 feasible du.:oliO!> and e~,,,,"d 

(Iigih!!i,y 10 ~lg,,·.J:)a$d biofuct!: 

o J'~ ..... e~u""nl inre"li vt:lli)fa il.mall\ 'c al~ol fllds; and 

o Fund and clarify eliglbilily of ,.,,,,wal:>l,, fh~lniC/lI~ aud bii>ba:;e;l proilllCl$ fur Ihe 

Im.mal Re,enll"Codc Si:cli"" 4gC Ad"lIl1c<d Mon"liI<:l"ringCn.'Ilil. 

SIII!p!lnivc. , .. bl.· fedeNI p!llie)' is <",scmial III Cnsllri"~ thaI .d,'aIICed :111<1 <:<: llulos;e 

bi"ruclS "", d"P""'~"" mu,. fb.ward UII lhfie l,' ... ·of·a·kind ~'1I1n"'crciall'l'<lj"""'_ 

Congress should co",i"". cnacling adJ;l;nnal ,,,,,,,,,,til',," ,0> rllnh..- holp """I',hle 

cll!..,nical .,1<1 ad,',,,ce" hiofucl. pnlducc,"" gain impru"cd """"". C"l'ilal. 

rl ,~cch"olugy Ill<Iu'lry Orgr!ni'1I1i"" 

JOIM'S C. (in.'tI"I\ (>lid. P .. ~iW"l ~~d Cf;O 

1201 Maryl",," AI~n"". ~W. Suite <l(IQ 
340 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.269

Washll\j!1on, DC 10024 

Bio 

Slalc",.,,1 (or Ihe R""nrli "rt.,. 

,\pril 26.1012 

t'Ill\llk Y"u rorln: upponunityt" pl'O\'ldc ~ wrintfl st~ lem ~nIIO Ihc U,S. lIouse Connniu ..... u1l 

WoysanJ Mo"n" Subc<tmlniuecon s,,11.'Ct Rewnuo MClISu"""('1h~ Sub...,mmiu",") l;;,r th~ 

"'",Jill or il> April :!6, 2012, hcaring "n "tefl.in f.~ fliring l'a~ Pro, i,;OIls." 

BIO IS the ,.,<>rld'5 13rge51 biOlechnolol1yorgamtatiO<l. wnh mtlr<: Ihan 1,1\10 m<:mbc"" 

'''lridWidi:. 'ndudin.!: Stoic and .... ·gional biolceh a~lcialioos. '"''"' 1<. PI'~I 'dor.> 1<11hc !"du;u), 

and 3cadcruic CC!l1Ct5, IlIO', ImJuslriai and Enl""''',,"Cnl31 Seclion ri:p ...... C!I1S ",'er8S leading 

tompani.-s In Ih" pn.l<.iuctiun oft<)rlV~li"""l nd ad"~ te-<.! billrucl:;, 1\"Dcwabk .:hcmica lsand 

Q\hor~u~,"inahl~ J;Qluliom to e~Il"'1!.)' and dim"tcchan~c. 1lI0 me",b<'rO:Olnp;lnk-:<~nrly 

induslria l blol.,<hnuillgid Iu help "';.,,, .. Impmlanl challenges in sy nllw,i ~ing D."", produels. 

\\'hol~ cell S~SICntS ""d '"""" h\Qlogk I'''''' •. ':SC' I" ;mrm'\'C the ra~v ,.f ",~~ur",-~uring ""d 

ch<m,cal pt"OCc'SSCS. 1310 memb..'f'I include Ihe leaden in dewlop,ngnc" ~ror ttchool~;"" for 

tiKKl. fe,,\!. fiber. and f..cl, 

I;IIU commtnds Ihe S" bo;ommillee fur holding IlId~y'$ bearing M npired and l>lri l! I.x 

pro' '~iolls to dOlerm,1I< ho,.,· Ih""" 'nrcnti,c~ mCa5IU'<"agaillsl ~y mct.rie, such as ellSl. 

df.-.:II\'clM.oss. and job en,alln". Hi.lm)' ho. <lcmon~lml"d Iba1Ia.~ I",:"ml, .. can be "",,"err,,1 

p<.>lky mechMi'lIIs, p;tnicul. rI ~ iit the caS'.' ofhclring II> athie,'r lht IIalil>n 's, ... crgy J)Olic~ 

oItje<:1i,·i.'$ hy promOling lilcdeploymcm .nd ul~,zatil)/l of new <... crgy I\.";oure".. 

~U5 3in.d ,ul'f"I'\ive ,"" rolley i, \Ory 1",,,,,,t31\'!O ."'",,&'''g l""hIIOJ"gi~s ~1al how not)'" 

achlC\ ~d commen:I~1 seal .... and should be 13r,elffl It h~ Io!\:hnologies with the l!Jt'at~1 

potenli.11o ~rt.l c lile jobs. tc/lno)rl1le i!ro\\th. m<'tgy .... ~urily II11J environmontal "'-·ndi .. "l.: 

"""k a •• n:tliun. Emerglnll "ochnologlcsln ad,'""", .... blnrucl .. rcnc\\'sbkchcmlcalo;. and 

bluba>rd pro.iuclS ha"e tn:mCfldou. potential 10 address the nati()(f'~ clwtllmgo:.sand sri: ~"d~ for 

eomm • .,-,:' ol doploymont, ilul 'mply ranoot ~Uri: noe<kd capi1<lJ Ii.". flr~l-of·.·kind ",ord;nery 

ClIRSIIll"tlo" \\ llllOIIt gO\ emm,'m i upp"n. We "rye you 10 e"(nd p",,·lsl!Jnt; Ihat sUJlllOl1lh~ 

s<al",,,!, "r u,c"" inlp<.1""lIltcdUlol,,!\irs. 
341 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.270

R .. kgrf) nd 

Adv~nced biofuds, r<'l1c",ablc chcmkul>and bioba~d prtlducl> na,'e grt.'(I1 pot<.'T!tial 10 

signifh:lImly intTi:;lSe Ibis nalion'~ cneTgy an<.l nalionnl Si.'Cu rity, whilccTi:;lting th,)uSllllds of 

solid. well-JliIying lJ.s. jobs (see pp ndi ~ A chart On "U.S. Job~ Assodated w;tlllh~ 

Production of Ad"ancw Biofuds and Rcnewable Chemk;II>~). In fact. lOOny. the domCl;tic 

binfutls industry is already e~atingjob;;. helping 10 rcdllCcour d~pcndcncc on foreign oil ~nd 

prO\'lding downward pre,;su~ on gas Ilrices allhe pump. It is now ronlrlbll1ing more than 

400,UOO jobs and 533 billion in n<'1I' activitytn lhe nation's ('(:onomy. A rcc'::nl "'port found lilat 

additi<)nal job creation from ad,'anced biofu(.>ls production und~r the fMeml Rene"'Bbl~ Fuel 

Standard (RFS) ~"uld reach 1I07.nOO by 2022.' Ad~an"ed hiofuels production under Ihe RFS 

could funherrL'ilucc U.S . pe1roleum imp<ll'lS by ncarly S70 billion by 2012. 

A recent 1\"port <~limal~"S Ihat Ih~ global suSl~il1able chemicallnduslry,,·ill grow 10 SI trillion. 

which pro"ides an imponanl opponunity for U.S. job 'Uld CApon ~Wlh. Currently. th<· '",.llnnry 

is .s1!n131ed 10 be only l'<'V"" percenl nf its- future projeCled size. U.S. companies Il"(Idilio!)ully 

l1l~h,u[J about 19 perc.;m of the l,."ditional glohal chemical induSlry. If U.S. companies ,~[Jturc 

Ihc &arne p<.or'ellla\:c of the s"slaill~bk- chcUJi~'lI1 industry as II g«J"'S 111 5 1 trillion, lI!O 

~nticipJrC8 237.000 dirL-c\ U.S. jobs. an<.l a trode s\llT'lu~ wilhin ,he chemical s..-Clor. Sox attached 

pp~ndh S 1310 "hite pilpcr. Also, pleasc!;IX 

hllp;/J"w".hio.urg/si!e .;/ocfm,IViilesi20IQ(PIQ biob;l~cd chcmicals.pdf for a n.-pon on 

iubas~d Chcmica!~ and rod uct~: A New Driver IIfU.S. Econumic !)('vclupmell1 ~nd Grren 

Jnb~ " Th;, repon ""-""idl'S limher explanation an<.l context shuwing lhal. IhrtluSh Ihc 

oc\'dll[lOlcm of the U.S. I\'n,',, ~blc chemicals and biobased prndUCtS in<.l""'lries. Ihe U.S. has the 

oppllTlunity 10 re<:o,cr~nd rttlaim significant U.S. m311ufacturingjllbs Ihat have brtn los. III 

other nalion~ in r.:ccm decade •. 

As the 2(J1 () Ou!ld~"nial Ddi!n~c Rcview nrnl!'!;. the Navy, other brJnchcsofthc miliw.ry, and 

Ihe nmion as a "hole. face a $il:"ifi can! national securily 1hreat from U.s. dependence on fo~i!:n 

SnUr~CS or-energy. This thrcm ~>ln be sif'nificanlly ~duccd ... ith an ample supply of U.S. 

ad,·"nccd b'ofuds. Innovalive adv,ulccd biofucls compHnies have made gr~al slrides in 

dc vdopinf: new k'ChnOlogic. 10 produce nC~1 ,!limCrnlion biof""ls from a variety off ..... 'ilstCH:ks. 

and are poised 10 produce billions ofga llon ~of3d\'aneed biofuel!i iFprojecl finanein!: can hi' 

J;\.'(;ur"d in a 1imely flGhion (Sco: fur example \ I) the following link 10 an 'mide 00 "Cl1ITCn! 

Stalus ofCcllulosic Bioruell'roouctioll in Ihe Unire<.l States": 

hUp:liw"," lichl.'(\ol1ljnc.cor)'l d"i ~bs/IO.J()gC)"ind.201 J ,36~. and (2) AI1llcnilil C chan of 

current and pl:ll1ned advunccd biofucil'rojl-cIS). upport;~e, stable fedtml policy- inctudinll ta.~ 

inc<1l1ives furbiofuds and biobas;,'il prnd"L'\S i~ l'Sscntialtu ensuring 11M advanced biufucls 

devell'pers can mo\'e forward on these: firsl-of·a·l.:ind commercial projcc,s. which an' a critical 

compo".·n! orplan~ I(J ",eellh~ ruJtion's ~lersy indep<.'1H.L:mcc and S!:curity nL",ds. f.,lany f .. '!lewl 

int(11\;"el; viUlI to U.S. udvanecd biofuel, devdopm(111 Md ~o",ml'1'Ciali~alion ha\'c.,-xpired or 

are ~I 10 expire in rhe n~a ·term. 

'u.s. £omom;c-/mpncl,!j,Id!'NICI->tIl!in!llels I'md"cl;nn: f',.'r .• (It'(llvc.1 /() ]030. bi().cl'II.l'eb. 

2009. available at: http),w",,,.a!;l'Cnslon-publisluog.comffiIlJ(lJO-es<JlI-jJ11Wc!.OOf 
342 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.271

To nc~ nlt .. large scale ~om ~rciali7mjoll of,,'.h'anted biof!ld~. renew~bJe I'~mkals nntl 

biobased oducI~, b..'low plea>e fi nd ~n onnie", of pro vii ions we bcli~e are nett~sary 10 drive 

cOnlinued illve,;tml'nt in the b~d~~! PQS~ib e ""t of emerging t~chn()logie,;. 

Tg ~ ~ten '''' s N ..... ess~n' To Dr" 'e 11I,'tstment In Advanced lliofurl ~, N.~n e ... able 

hl mic~ls and Hloha.1'd Prorluc" 

Tn~ fullowing existing tH ~ i"c~lItivcs must be c...t~ ll dc'<l. with =otnme d~'<l clarifications, so tbm 

rcncwablccbcmkal and adv:utcc:d biofuels producc'fll call ac '<:SS cntical capit~l o Ulove thcir 

projL"CtS rorw;ml and hdp the U,S. 11I~"C1 its encrgy indepcndcllce.national $CCurity. ,md job 

crem ion needs. 

E.:<:I('I111 !h~ C~/lul"'k Hio(ul'l P,.,.dut"fim, Ta.!' Cull'! "tid ,'<,I(' o!~d n <" 'TI'C;oti,,,, (!lr 

~lIul""ic Bj,l[u<"l Pml'em': m o's m<·",b..,r cOmpanil'llare "orking h:mlto 

comrn~rcialiLc c~lIulosic technologies and these companies are d~pelldL>nt On riya ~ 

;I1vestor.; to m,lp fwlth" il1 ,,0.3tion that will cnabl~ this comm~n:ia iZationerror1. The 

~dlulOSic biofuels produc,ion l u credit ~"d the 3o:1...,\cr&ted ep ~'Ciatio n filr c~II" oslc 

biuf"cI profl"'ny have th e pi!\emiallO ul1 locl; vita l project financi ng. BUl because 

commercia l biorclineryprojectS Hike Dn aver:o.g~ of two o r 1lI01l! y~arstll complete. the 

o.....,.::mbl:r 31. 2012. e)(pirntion d~tc pre~e,,\S pn)j~>C1 develope". from e~erallinl! thc' ,·aluc. 

ofthc;c, credits. ·nllls. even though the incentives are nDminoll) e f"!"'Cti,e throu,gh 

2011, the cn>(\;ts haH'Hlrcad) c f"!i."t'ti,ely c..~pik'<l with r~~ J to cum,nt f~ cllity 

dc~e menL r. tcnd th ~ ce llulosic biofueb pmduetlon t~l erl'dit (pTC) nd 

~"cel ratl-d depredation tor cdlulo. il· biufud pml,crly for tbe ","-,imum re ll lblt 

dura tion. 

A/gol Hi""''''I< Ta.~ PUr/II': llIe Internal RevenueCode cllcclively impcdd the 

cllmmcrtlalizDlion ofalg~e-bascd biof"cls by providing a production til.. credit ~nd 

favornble deprcciation to ce llulosic hil"lfuc ls de, clnpers. but ,,01 for algae-based fuel 

f~cilitie<. Algac·based fuels provide public bcncfit~ iimlla r to those provided b)' 

CellulosIc biofucls in tt:'rrns orjob creation. Cnl"l"):)' S<:<;lIrity, and environmental profile. 

As 101l~ 3~ the law dillCrimi c~a~3illst al!l31 fudsdO',·clopcfS. it will m ntin"" to be 

e~lll!md)'chHllelllling lor ¥ae bB~d fud start-np companies to attr.l.,t thecmpital 

requi",d to build thO' fi ffll commercial scale facilities. II! ~~_ba 1'd biofurl ~ sho ulrl he 

made digible for th ~ cdlulllsie rucl~ PTe and accci~ra d deprcciatilln. 

I',e"en'e ( uuell! i"'<'tlf;"~. Ii,r N,,,,_£!/,oll,,1 AIt·"/,,,1 Fue/I·' Under eUl"T"Cnl law, h~ 

Imemal R"VCllOt Code providl'S income a~ credits. orc.wisc tUX c",di ~ in liell of 

inL"t.'tnC tax credits, fOI a numbcroralcohol fuels. iuchll.ling advanced uon·ctlmnol alcohol 

fuels. It i:s impoMan1lhal lhesc lax inccmives for 1I0n'Clhanol alcohol ruels bc.consider~'<l 

QlI th"iro""" llIerits. Tbe tax c"",ils J"" non-ethanol alcohol nlcl "'I: available Qllly 10 

biofucl. that are poi.sed 10 come onlO Ihe market bU I that 11C<.'<l temporary policy support 

to hd p ensOIe h~ir cOlnmcrcjal viability;n the short-t~rm. Like the ~l:lIulosic biofud 

product inn 1M credillU1d QtCderaled d"Pr~ia io n rules, the non~ th l alco hol ru els 

cn-dl1s Sho uld be lI!lcd ~ 10111; MS possible. Moreovc r, b;,t"'~u~ production I''''cls of 

• 
343 

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Ihese ahemati\'e~ will bt $m~!I in th~ Il~~! f~w y<,ars. Ih~ CQ:i;l ofe~ endinl> Ih~ p!'(l~isitm 

for n I~-rm of)'~3n; is e;(fll'C1e\l to be modest. 

Funu UIIU Cluri[v El'gibill'ry 'I[ H"""",uh/1' Cllelf,,.,:,,I. " "U Hi{lbu ~u Prouucl. ror St'<:, 

4.YC Ad"ulfred M"nufuclUrilll! Creu": S. 1764, the Main: II ilf ,4",,,rica Tax Cn.\{1i1 Al'l uf 

!fill. pr<)~id~ much needed additional fWlding 10 Ihe Advanced Energy Manufaclurinl!: 

Tax Credit (Seclion 4SC) and c~plicilly clMifi~'S the eligibililY or renewablc chcmiClils 

and biobaiCd produel projects. Inccnli"iling im'cStmcnl in biO/efincri~ provhks Ih,' 

poIenl;allo create new markets for American proJU'::IS and jobs. Rcne"'abl ... chcmic~l~ 

Dnd biobnscd prodU~IS impacI clwydu)' prodUCIS such as C'ar pans 10 cleaning products. 

So.1I1p>. insulation mnlcrinl.~, plastics. (dnllls, fibers. 11Ihrics, and illlp.1cling our ~onomy, 

InCIIlllouftS, 1164 Inlo anr till n lr ndeno pack~g~. 

The fQllowing iucenliv"S ~hould also beenact,-d 10 fW'ltlC1' help m)tw~blc chtlllical ~ud 

advan~c<1 biofucls produccrs gain atcess 10 critical capit~IIO mOI'c Iheir projects forward. 

p"",·idr UII Im'f'.""'MI Tux Crf'dil (lTq tf>r Ad."wCt'd m,,(u"{ Rillf"t'fi"uit.'·: Capirol 

CO:5IS for COllSlmClion of ad\'Unced biofucl blon:fjn~ri<'5 arc a SUbSIDlllbl oorrier 10 

comm.::reinllz3tion. Congr('!;s hould trn id~ II inn'!itmelliln cr~dit " 111 ion 

(~. '' il bl e in liell nf pmducllon "IX credils) ror lI1 frgi g ad"MII(~d bio[II ... 1 proj« 1 

de" elopen; 10 hdp accelerat.:: cOllstroction OfOOHllccd biofud blclf.::i'iner1C'l; nnd spero 

ckplQ)'menl of (merging .dva", .. ~d bil1iuell«'hnoll1l!ie~. 

'r,," id ~ M Tu CrNil rllT I'rochlftinll nfOuarr" ille 1t lI e,, '. hl~ mi ca l. : Renewub1c 

chemicals and biobrl.wd plll.~lics represenlal1 impOltllltlccitnnlol:yplalform tor C'I.~Ill:inf! 

relian~e-O!l pnroleum. crellling gm.'n U.S, jobs. ;ncr~asjngenergy s«'urity. and reducing 

sre:nhOIl~ gus emissions, Uy providing 11 fed~ral incum"ta~ credit for domesliClllly 

produced r!'n~wabJe ch"m;c:lI" Congress .'lIn Crt'lllC dOI11"~ticjobs and other economic 

acti"i1Y. and can hdp s....:urt' Ameril.'ll·s k~dcrship il1lh~ impnnunt nn'I13,l)fgn.'l"l1 

chcm ~lry, LikccLirrellll3w C'I."l1ewableetcclric;ty production credit ~. Ih .. crt,dil~ W1)uld bt.. 

gcn<'r'lll businc~~ ~redilsavailablc fora limitet! period ~r f~ciljty . 1'" lruly a~hiL'V" en,'l'!!:y 

s.:curity. Ihe U.S. must d~vclog biorelinl'l'ics Ihal prodlK:<' l1~mm;vt'!; to all oflhe pnIdUL'IS 

m~(]t from "'Jch barrd uf oit. Industrial biotechnology erntbles the produclion of 

rellcwabk chemicals and biobascd rroducls rrom biomass. and th",olal displacement of 

fos.si I ruel producls can be: acccl~ratcd wilh a production lall emlil. 

The provision, abo,'( are (,scnlial ingredi(nl' in auy flfon III a~c~I=I( 'he oommereinliulion 

<)fad,'ancetl biofuds, n."l1ew8bl~ chemical. and biobasc..,] odua~. We a~ k Ibal yuu include tbt"SC 

provision' in any ta.~ e~lcndc!li pacbgc. 

Thnnk )'Oil, 

, 
344 

Statement of Biotechnology Industry Organization Appendix A 

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APPENDIX A 

U.S. lobs A ssociated With the Productioll of 

Adv allced Biotltels and Rellewable Chemicals 

So urce of obs Associated U.S. lo bs 

DOE/USDA 5505 currently 

usee attadled chart of public private bio~uel 

projects cOIllPiled by 610 

Biomass Crop 700,000 potential US jobs 

Assistance Program "'USDA SCAP Fact Sheel, Mi'lY 2011 . 

hit 12: l L w w w .fsa. usda .gOY L I nll.'rnel L FSA FileLbca 

p update mav2011.pdf 

Potential Advanced 800,000 

Biofuels jobs in "'''U.5. Economic hn paci of Advanced Biofuels 

agriculture, Production: Perspectives to 2030" (bio-era, 2009) 

engin~ring, 

constTuction and 

research by 2030 

Sustainable 237,000 direct U.s. jobs once the globaJ susta inable 

Olemistry Sector chemistTY industry grows 10 its widely projected 

$1 trillion size 
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Bio 

1lI0 l ECltNOLOGY "">Il".' """"~ ""IO'< 

ReneWl!lble Specialty Chemic" Working Group Wh~. Paper 

March 11 . 2010 

SuslllJfI3bIe c:l)emlSlry produces green che('!lcals from r&r,ewable raw n\'Ilerialll ~Ilg ellViroM'Ollntalty 

lfierdy processes ltJal 00\ only co,,"erve """'YY am ... at ... but also M ..... a tow carbon footprint. The 

prirTllry technoIDgy-<lfiv .... lor ~05ti>lnabla chem5\ry .. biotecmology ano;! ItI!! """In Input Is plant-<l!!rived 

raw n\'Ilerials. IsrJx>nar>tl)'. susla'naDle chilfn51ry allows U. S. W"l"Inies to fflpl;lOO raw malena" deri ..... O 

!rom foreign oil wilh agrio<lll.J'\l l materials produced dorresllcaiy. 

WhjI daM sus\all'l3b1e chenl51ry IOOke senH lor America? We ...... in., COrJl)l!lil''/e world. U.S. 

corrpa".n canCf9ata l8Wa,o"19 hIgIl_payl'lgjobs lor Americans, il gcwemmB<'ll supportS new Ird.lstries 

in whoCII!he U,S can rNintain a leaoolshop pO"~ioro . Sustall'\ab/e chemslry" a seck>< wher" l,hS. 

COfIl);'Irou ale positioned to lead beeaUlOe il OOI1'C>!r18S thrM- areas of U.S. Slrel'l\lUl: i;JItltecMology, 

agrlcull",. a nd cherricals. Fi ... l, tr.. U.S . haS been am OOfl!i"""" 10 be a world leadB. in biolecln'llogyI.., co~nies am research IM\itullons .. xcelln the <XI ... capablities required II)' this Industry; protein 

er9""en~. n.,llItx1P:c engiooeril1ll aM 'ynt""I;!: boolOgy . SeccflC/, llle 1Ime",:"n farmer has an 

ur)para!leled alli ~ty to produce tre raw material neeoed by this io:Iu!It')'. Finaty, the U.S rI8lI \tie woMa 

largest nIltlO/lilI cherrical IndUStry. Ten caols of <Nary U,S. "xport dolla, is derived f,om cherrical sales. 

ThE! Yaw 01 America's Share 01 the global ehemcal mar1<et j, $690 billion (t9% of the $.3.1 tnlon aoIar 

global mari<"t) The ch!!nocal ioo,,"1ry do rectly enllloys 860.000 people ln the U.S., arxl indirectly 

-s~ns Ito! e""loy .... nt al another 4.195,500 paopie. 

Why 5W~ch r/llm 1rlldilionill chemistry· to "Sustainable che"..slry"? Although the U.S. chemcallndustry 

relTll'ns so.o::o;ssf1..(, seve",' forces I\aVII f8Sh3ped the global chamcal industry over the past o:II!c<I(Ie. 

AtrcIng these is ",Owlh of the industry in the Middle Eastand Asi!!, Consider. forelC8,,"!,Ie. 00 ... 

Chemicars decision 10 ,,~jltho cornrmdity chemical bu!;illll,." in2oo1, Aa:ording 10 DoW5 CEO,I'n:1re ... 

Uve .... : "'Pe1fOCt)erncals wi. be looked al rro,n the point of ~jew ollow-<lOSt flied stock:!;; gWlln Ihe 

lI.e hood thai enefg'J' 'and feedstock COS!$' wil remain high by historical stanr:!a.rds. there Ii ev,,<y If!8!lOn 

10 I:Ietieve that productive OKSets wi. corn,_ 10 graVItate 10 regions thalol!or advantaged feed stocks. 

namely. lhe Mideast and Asia.· OVe, the pa!ll decade. U,S. direct elfllloyment in (he chelTicar( sedor hasdecfe3Sed rrom 992.000 to 860.000 eflllioyees. Regardifl\l6lCpOftS. (he U,S. er;o1ed a lraOEosurpius 01 

S13A bilioo itl t998, DIll by 2008lhe ~Iof sutrered a trede de~tiI r.A -$2,7 billion. We be-lieVII that lhe 

U.S. can reverSE! these trendS by capita, zing on lts core 51rerrglhS in biolrld1nOlOg'y. 3gr1culllfl8nd 

chenoca l ma rdact"';ng While the I1lIDt,mlal U S. chemcal lOOustJy" smflking, Bevllral irrleperrlerll 

~ have estllTl,lted tt"oat too global sostal .... bII! chomslly lt1dustf)' wil 'iTrNi to $1 tri.on dollal'$, This 

creal!!!; a slgoifx:anl opport"",!), for job growth aoo export growth becallSfl the clX,enl. global s""tainallia 

dIe~try Il1du5try is only abolA 7% of 115 projooled f\.lUA SilU, If U.S, C0lTll9ni1l1 can capturll- t9'l1. 01 tN6-

new $1 lrilOon rnartwI. (by analo!/Y w:.. tte traditional cherriall industry) ""'" project that the U.S. wi. create 

aboul 237.000 6reet U.S. jobilin the sustainable chelTislry :secIor, while !hlfting the balaoce r.A trade it> lhe cherrical sector 10 a IflIde SlJ'plus 

The traditional cllerrtcal ....rust')' Is "",de up of two I>ro;jd sectors: cormlldity "",,mcals a,nd specoally 

dle"..cals, Each plays oritical bIJI QffUfSot roles, Comro:ldity cherricali are matlufact<lred in IIIrge 

quantitJes. sailor a low Pi1cs and provide \he basil voUne for the ifldustry, However. they 819 c)'CIic and 

have w;os swings In prices and rTllrgins Bcross the commodity cycle, Specia_y cherricals In ror>i'8S! 

nave smaller~olurne!i and I"iQher ma'9i'lS. Their role II w:.. ~de higher n-uf'\li'ns tnal are consistent 

acf'OSll \he comm<>!lily C)'clll, 

Uke Ille trndotlollal chemcal lnrust')', the suslaillable chi!mstry ifldustry of the flJ!lXe wi. haye two 

product SOCia",,: oonvmcIity biochemCilIll (also ~nown a$ b!oprodUcts) and 5""da~y ~rricali;. Both 

win plily cIi~cat yet dltfllreflt roles in lila inlegralBd 00 ... 6 .... ry_ Cormndilyaocnerricats ikf! booflJets wi. 

1201 Maryland A~e SW Sulf1l900 Wast"ngtotl. DC 20024·2149 2029629200 - Fa. 

2024886301 wwwbraO'9 
f 


79894A.275wwoods2 on DSK499XVN1PROD with WAYS & MEANS

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347 

Statement of Biotechnology Industry Organization Appendix C 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.276

APPENDIX C 

I:::=' I ::!: ~ ~ ' 

,;-

~ ~ , I "m" , 

'"',: , , <~. '"" 

, , , '"~ 

I ~_":'" ~~ I ,,"on 

-. =::: , I"' , ~" , 1'"- ~ 

{"m .... lIl<. ' 11/2ClU 10_ .... ' 

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N,M. (ndiron 

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348 

Statement of Bitsa Burger 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.277

I respectfully urge Congrt"Ss to l".~tend th ... " 'ind energy productfon tax credit (I'TC) as 

quickly as possible. 

The long projeci development and manufacluring I ... ad times for wind energy projects 

mC3n that Ih~ PTC has already elT~ctively c.,pired. Right now. wind prqject dev ... lopeTS 

ure not making pl~n s in the U.S. Hnd Am .. ricaJl manufacturers arc nOI receiving ordCTS. 

The wind industry is facing Ihc n:<:urrence orthe boom·bust cycle i1 has secn in previous 

years whcu the PTC w~s allowed Ul e:o;pire. In the yeal> following expiration. 

instalialiOllS dropped bctwl"t:n 7J and 93%. with con·~.,;po ndin gjob losses. I dun't wanl 

this to h~ppcn again. 

Equipped wilh the I'TC, thc wind encrgy industry has contribnted imprt'!;sivdy 10 U.s. 

ecollomic development. Th'" PTe has tx::en inslrumental in helping the wind industry to: 

-Lower the cost of wind power hy more than 9(1";;' 

-r.-I3nui"::Jclure components for wind lurbin ... s 31 ov ... r 400 U.S. manufal"lliring f3cilitil!.~ 

-]>OWCT th~ ... quivnk!ll of 10 million Ame ric an homL'S 

-Provid ... 35% of all new U.S. pow ... r capacity in Ih ... past four years 

The PTC driv~""S billions of dollars in privale investment in homegrown Ame rican wind 

power each Y"':lr. Increasing the amount of power that our ~OOlllry g<,\S from dCII\1, 

homegro\\,\1, aflordablc rt'!iOUTCes is a\1 excdlcnt thing lor us to do - and this tn:o; credil 

provides a\1 inccntive !!;Ir the wiod industry to cQnl'nue to do just that. 

I urge rhe committee to luke up an e:O;len,i1111 uf the wind energy prodnctiun tax credit 

righl alVay. 

Sincerely 

Bitsa Burg.'r 

521 Al3mcda Del Pradu, #322 

Novato. (a 

707-591-5193 

burgcriok@)pon.ncl 
349 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.278

BLATTNER ... ENERGY" 

j\.lI"ll~,!Qll 

" 11 _, .. C""""~l""""_ 

~ JoI.. lib." ..... C'TO or BIoJ ..... r~. boo. ~_ ... 10'''.-. M!>l .......... 1Id1y _ ~ 

,"<>,""' .. ,.,..; ..... !!i"..,....., ...... ""JoT\I'KI .. _i..ly .. ""_ 

r~." .. _"O'.< .. ""'*"r.r .... ~rc ... .,..,.. T ... ,....-. ... ..",."j ........ ~., 

... "'oIoI w ""_ .......... _ .. ""'PfC ... IO .. ..,.....w • ....,. ... Io) ... <ofI_ 

.... "'U"'" ,_' ...................... , .. ;n.\uony """""", 

Aaut ...... ""'-."~ ,'I "-"_""'PTC .. ,I I"' .... -... .... " ........ .,, "'"' .. ,'fJt'>Ii"'ll.ir .... """'l._~ .......... '~· ...... _ .... ~""'r" ... .. - .. Ioy .... ., ~ 

W;"J _<w""",,_.,,"""'r><oI.....,._ooo, _ I. f'I<Ao<"Ii ,' .... -""I"""'1Y Mho,,,,,,..,..,.,, •• ~ """<If"'" ""'" ~ 

'''' P Ie """ ........ "", ...... ""'-r; ... ...." .... , _, ~ .. on<I<-..! '" ""'I""'II\lI"_ 

I _'liIIl ........ _ '''''' "' ",.,.a .... "0>11.,,.,., "",""""",..,. <MIl' ,,"'" .... ). 

s ...... Iy. 

" .... 0_ Cf.ll. 01_[....". 1 ... 

)'J1C_tM",,"~ 

.. ' .... ~5(,lIO 

)1fl-JS6.-1J" i<'fooI'Ie.-... ..... .,. . ..,.. 

- ... ·".'''1 -_ ...... , - __ 3.''': ....... _'''', _ ....... '" 
350 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.279

51K112 

Dear W~y$ and Means Commille.., 

BlucDot Analytics 

201 Ross Sln:et 

S:mt3 Cruz. CA 95%0 

Wtt :m: writing 10 you Jodayas ruth citizens and businc'SS own~rs 10 ~prt"SS our del1l eone~'Ill 

over the 1:lc~ oran ..,.xtension uflhc Produclion Tax Credil (PTe) for Ih~ U.S. wind energy 

industry. As you knllw. thc wind CnL"Tgy induSlry. a hum{"gl"own U.S. industry. h3S IJ<.oL"II growing 

3.1 a mpid clip here in the U.S. and around the world (on a,'cra£e owr 2~·;' annual growlh 

worldwide uver Ihe I~s t 10 yeal"!i a~cordjn£ 10 Thc\Yim.lP""S'r.ncl, 2012). Th .. wind indu!try is 

rCSpOll.lible for ~timulutingjob growlh ~ia multi-billion doHar cilpital in"l."Slmcnts thaI breathe life 

imu our llilliooul «t)l1omy. The wind induSlry i~ nlso inereasing()Ur SC(urilY by providing an 

indepi'ndl'!ll stlun'e oflol1g-teml ren(:w~bk energy. Then: ure a 1m of reasons 10 )uve Ihe wind 

illdu.try hen: in Ameritil: i, Cn""iIlesjobl;. cbannels invCSUHcnt dollars. comribules lu ena-gy 

S{'Curily and rcduc~ air pollution. 

A~ )ou can imagin,". with alllh(:dtscrilJo,d bi:ndit~the wind mdll',lry provides, we arC ,,",Ircmciy 

rruslF.n~d that Ihe industry is being slin<'tl b)' Ih~ ladLQfa PTe. Th,·Ia.;~ "fthl:" PTe ~ driving 

wind mHnllf8~tu in~jobs utTsbol'\' Dnd dcl~ying In"~"'llll<)nt in n~w wind assets and rt:scn ~h, and 

is ~lowing the spcctllCularmomenlllm thaI has been building in the U.S. wind industry m'er Ihe 

l:.st s~vet31 y~~rs (~\"Cn during the W(lrst Mlhe ~luMI L..,.:mo",ic crisis). Actt)n.ljn~ III lh~ 

American Wind Energy Associatiun (A WEA). wind cncr)O' has accounled for lhc ,e..'Olld-most 

nL"'; I."n~"-Il~ !:;tn~ratinf'.tapacit}" overth.· l:til fuur yt~rs behind naluml gas. Now is the lim~ IU;l("I 

and ~lcnd Ihe PTe", cnsllrc th31 nCW wind asselS arc instAlled hert: in the U.S. IIlld thai 

America does NOT los.;, llI1y n"JI'\: manufactllringjob._ 

Ouret,)mpau~, Blu(1)ot Anatytlc$. is 3 Slartup foc~mg on predicti,.e maintenance, a slmtcgy lhat 

Ih~ Department of Energy (OOE) a,;,;ctU might be "(he mOSI COSt clTc"Clivc of a!! 0&1>' 

strBll"gi~:' Th ... ("Co""mit~ofthc wind industry ar ... important 10 sm.all busin"5scs like mine and 

m:my otbel'> mn there_ In fuel the PTe is important to man)' large r;ompanies in Ihc U.S. as well. 

ineluding publi"-Hud pri'8le utilili~ae"",s Ihc coumry_ The PTe for wind is only 2.2 cenl>; p.:r 

kWh and rep"'~enl$only u tiny fl":I<1ion "rlhe s"bsid ic~ and crcdi ~ 011;''''<1 10 fossil rllel5. 

Additi<;>nally, Ihert i. biparti~an sUPl"'1"l for Ihc PTCc~lellsioQ. II seems Ihcre ar~ no wnlpelling 

r"3!iI1ns to NOT eXlend Ih~ PTe. 

Iltuet)<n Analyti~s "'l!~s ynu 10 cxlend rhe PTe rnrwind as a mauer "fprinrilY and (0 k~ep lhe 

positive momenwm injob b'mwtb, or:)l~~lir eapilal \!w ~tJ"~'l\. Qnd ~n~"'gy ~ecurity Gving al thi~ 

sljll unCC1lain lillic in our economic recovery. ;\rncriean eitjl~IIS and businC5SCS of all shapes and 
351 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.280

$iles Dr~ bi.'hind Ih~ eX ~nsion oflh{- I'Te, so pl~a>e ext~nd the PTC righl awayl AlJIl'rica is 

dl'pcnding on Ihesc jobs. and inVeSllIlelllS for growlh and prosperity. Pleasc do nOl repeal Ihe 

busts associah:d \~ilh paSt PTe c~ pinlli n~ in 21100, 2002, and 201)4. To be clear. III,IHlO's of 

jobs aud multi-hillio .. ll~ r inn'stmcuiS arC on Ihe line witb Ihe PTe. 

Sincerl!iy, 

Jnmes I'arie- Cu·Foundl'r and CEO 

JonMhan Gibson. Co-roufl,,kr 3"d eFa 

Juli en Gcrweau - C\~Pounderlmd CBoo 

Cha<l Rl"'$C - Co·Found{-r and CMO 

Slur OUI ic~ 

101 Russ Stn'Ci 

Sant a e ml., CA Y5060 

www blucdot \Il~1 ytiCS.C(llll 
352 

Statement of Bob Pabodie 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.281

Name: Bob Pabodie 

Organization (if applicable): Triumph Engineering Corp. 

Address: 100 Trl County Parkway. Cincinnati, Ohio 45246 

Phone Number: 513-763-7668 

Contact E·meil Address: bpabodie@triumph-eng.com 

Title of Hearing: Hooring on Cenaln Expiring Tax Provisions 

The wind energy production talC (PTe) is elCactly what we need /0 gel away from in this 

country. The wind industry simply cannot stand 00 Its own Without Incenlives, tax 

breaks. eiC. /I offers false hope and ultimately a burdensome tax on ai/ Americans who 

pay for subsidizing the profits of the companies involved. The GE's. Siemens. and 

many other companies will never advance the technology 10 be profitable unless you 

mmova Ihe incentives and force tiJ&m 10 adva()(;(J. Why should Congress selectively 

offer incenlives 10 /he Wind industry, when /he most are foreign companies tfiat simply' 

see il as a cash cow? 

If Ws u/limalely about "Green" Energy· and job crealion Ihan allowing the PTC /0 e:rcpire 

will force these compenies to stand on Iheirown and you will $ee Ihe technology 

advance much quicker. If there is proftt to be madefhe technology will be advanced to 

align with ii, but not if COIIgress simply keeps filling their pockets. If any incentives are 

10 be offered It should be directly for technology and effICiency advancement, not for a 

multi-billion doltar company to POI up another wind farm . The investment in technology 

advancements would be a small pe~ntage o( what is currently spent through the PTC. 

/I could be set up much !/le same way as NASA funds various progrems and the 

technology would be shared. After aI/It's about '"Clean Energy' and Jobs . fIOt 

advancmg /he profitability of a few companies, 

I respectfully urge t/le committae NOT TO EXTEND l/1e wirnf energy prodUction fall 

credit. 
353 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.282

BOND I NVESTMENT GROUP 

6243 Bun'alo RUIl, littleton. CO 80125 

Tel: (30J)9 8-37 2 

Fax (866) 801-3618 

Ema il: Bontlma@cs.com 

TO: liouse Wa}'S and Mcan ~ Commillee 

From: /'.lichad Bond 

Date: 414/12 .5J I&2012 

cc: 

Re : w~ OPPOSE lh~ ~ ~te<lsioll orthe Production Ta~ C,,-'dil 

pages wi cover : C-______________ ___ 

comments: 

I Dm a ..... Jt''''8bl~ energy ~);PC:It , fQ!lllcr [nl<:mallonDI t~rg) c"lupanyCEO. and I\dvi1iOl"Io O\W 

70 nfthe world's brgcsi utllilies and ne!)! cn'npanie~, I strong!y opro,c CXten~i!)11 ()flht PTe 

be" u,,,,: 

1. Wind lurbin~ do not lower greenhouse ga.~ m[ssion or tOssii fud lISC Ix..,ause wint! IS 

so cornlk thai fixed HC~lcrmi<lTl (USU3Ii} fossil-fueled) muSI always keep running as 

b""kup. 

1. EI'try mBjorS\l,tly "orld"itlc ha~ f(')lI nd Ihl1\ mAjor "ind turbine proje.1s resutl in no 

",duCli()fl of/bs:iil fuelU5e orC02 emissions. 

3. However wind projt'l:ts h.vI< dra,lit negalive impacls on humM health, PAlJK'l1Y v~lues. 

SOI';al valm"5, die ""viron",~m. and "; .• ual beaut y. 

4. Our "";00 i~ SI6 trill;"" d"lInrs In debl. This deh! i5 iu=asinl! by S3.5 hill;"" cWfy 41ay. 

Any additional Q:p""dil"re 5uch s I"" PTe will onl y add 10 th;,; mOOllm~n(81 d.bl, will 

incur i111cl'CSl pa)m~lIts fur y .... J t'S and Itcncr-<l\i.ms. and perhaps cnl1 nen"!" be reF'~iJ. 

5. S,a"d up fortlte American I"-'Of'ic. IW}t Ih~ ,,;1 comp'"ti,":! that 0"''' 82' _ of.1I ",i"d 

project •. No mOre c""poralc "elfari:! 

6. Wllo oo}'l1u ",on; r"r, anywa}'! 

t ... _t. "'"'""'" MOIJ .. "'" "' ObI< ~"'" "> .... n <001" ....... , ... l""i~ _ .. !i..... .., ....... , ......... , " ..... r ............. h ...t "'_'rOO)"", __ ....... ;....-.IN ...... , r .. 'II< ... of ,lot 1n.Ii'_ .. ..-.lQ- ... _ .... ,.,; ••. ,, 0;:.,.... s ...... 11) .... _"'" .... _ ~ )<'<J .... _r "I!'~ ", ,,,,",,).,,,,,, ...... ....,,;,,,. _ .. , ............... of.., "', ... ...- 'Q ,'" _ .... d ''''' , __ ;0 .' ...... 'Il ~ ~ , .......... """ ..... 

_" .. ~ "'""" b< ... _ ", '"' S .. d '.'-"'.".' """',. _ ... " . ,I ~"" ""'" , ..... oi ,.,. ' ...... """i .. ioo to ........ rJ .... ... " ........ ""'.to)'I<I""" .... """'iI .. '.,"' .... __ '''i~ .............. ' __ ... '''''''''' ... ,.... 

1"' ... I"' ''m H'''' ~;, rll 

S,!/i"'lJrl' O~, ... lo"Hlml 

f'1>Wj'I" Projf.·/ {)e''<'lol''''~1II 

Oil. Girl' & PQI.·u Dne/ovm,ml 

" ifurmlllion T""hntH"~· 

"-nl!rgy MJiA 

R .. 1I1 t:$lIIlt 

/",,. ,,,t/I:.~.pon 

Rtfim'ng & Crude OptmlilJlfs 
354 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.284

-'€. BOREAS 

" IIENE W AE> LES 

To.>: lic,us" W,ys 111111 MOMS Cn"""ill"'" 

From: Ab1~; 1 KrieR. Presido:nl.Ilo"' ... 'Rt'nc,",'.blcs. LLC' 

"",", .. I< ..... .t-Jof. L).l" 

Ii CII<n) St . • !~ 

S<>ro<r> ,Uo:. Mil U!"4 

1''- 60U~' .I OO 

r .. b"300 U,,~ 

Kri<\I .. Il ... .,R ..... H I .. "' ... 

...,;"·._M ....... ol .. "....., 

April :!-'.l(ll~ 

SubjN:r: Ct) ""n~"I oll .l '; ll n of lh ~ "'lid enrrgy Produ' n T ... · d;1 (l'Tq ror 

1\1',,111>. 10 11 .~ri ll .. n Cerl.;" ['r irin ~ T. , I'ro,';. ionf 

r fOllnlkd 11.0", .. R~n,,, "b es. LLC ill Ju ly 2()()8 "". co"sulling ~""' i"" ba:;c"<l in SumMHie. 

MA r" lI$S;,1 "'nN~bk ~"orgy proJetl de-'d • .,-.ers is lh~ N~nhcasl ",ilh Ihei' d<"ciopm,nl 

IIttiv;lics. A~ lh. «oMmy .:mk 'nlo ".'~CSS10/llh'l y.>ar. myl1u,il\<.'$> fioorisloed. The siabl. 

polidcs ~"""uraton~ n:nc" abk ~"~"&Y do, dop,,>.::n!. particularly Ih~ l'Te. e"'O\l"'l'ocd 

signilioanl i,,'c.lmcnl in Ihi> ~'Clor ",'en ... oHwr>«UH'l< "flhe c~m"'m}' """ i~d, 

I h.". 100 ~ <uocCS!Irul ~",. I! bus in...,; for ".arly f"ur ~a", now_V", .. 1m, '''-'OIlo",y hall he,", 

Tt<:oHrio!,!'h'" year, mwwabk ""erl!~ d,·,'do!",,<'1tt and my Mines> rroof'\.\!IS ha,',· sl",,~d 

""wn, Wilh lh~ I""",ing ~piraliol\ of the rTC "ltlo~ ... d "ftlle Y""', in"""",, are " " ryaMI 

inl""i"l! .ddilinMI mOlIC)' in pwjol1. Ih.11 "'" J\OI )'01 cOl151nlClion·",..Jy. Prnje<I' I h .. e 

wur\;ffi '''' ror. lImnrerof }"ar.; ha,e pUl lheirde\'ol"1'mcnlon"''' tmlillh.re i~ clanlY 

around" PTC eXI .... ,ion. New En~l~nd cnl!'im~r1l\g linns I c:Io business Wltil thai h.,. bo<.-n 

.';fl/Inding fi)r >c,,,,..~1 }''''',.,. are "'''. having a dillieul, tim,- kecpin~ Ih~ir cmfl'lnyC<.o;; bu,y as" 

dc' dop"'''''l.lo ..... 

The II iod 0",",'11}' .IcI'''I>pOIonl cyclo in Ihc ""n""a~1 i. Iyp ically -I.~ yc.", .nd co<h pruje-ct 

... quir .. millio", of doli ..... oral·risk prhal~ in'l:S!m<~1I in the early M.\:"" bel"", il i. ciear 

"'hoth ..... il will be .lICc<..;,;f"\. 11". Iyp" Qf t>!lty, lon~·"-rm in""lm""1 cann\)l ""A~" n'-d ~l 

hiS/1 ", ~ls "hen 11>0 polici",lh"t el\.ouno~ I~m an. ul\Ccnain. Thefl/lsl ~i~bl ye~rs "itillhc 

rTC In plJ"" hJ ... ·=n en\)nnous incr~ ... < ... in IIlnd rdot.dJo~ and in>"l"SllIlrm. hut aJ W~ 

"W III tlte lC~rs prio, to Ihi. periOO ".h<:1llhr PTe " •• all(>woo to c .• pi...:. we ri.k 1"~iJl.\l mOSI 

oflh., prell".'.' iflbe pre is "01 <~le", ed, 

By ~~I,,"dinJ< lhe PTe elI.l}' in 2012. ". CIl<' ~nd II« ol;h' 5;!.",.l" 10 in,"I'It'S"nd tmp\nycrs 

1(\ <Olllin ..... gro" 'n~ If,,~ allow I~ PTe 10 e)(pire. (I< ne~'ly r~pire, b<lQJe .~l"!ldin~ 1t. Ihe 

sljo'llal h U\0111k' US h nOi scr;ou~ abillJllbis lnJl\Slry'~ gt'O"lh nnd IhallnvOSlmcnl tkllla", 

sh(,,,ld ill) che,,·h'"fo. 

lllt"ng!y ~rge!h's ComOl'"'''' to imm.dlatdym~o ur:ln o\I,~,.ion oflh. "in<! energy 

prOO\lC1ion I .. ~ <mIil. 

Thank you. 

Abill"il Knoh 

PWliokm. Ilorta:; R,~ ew.bl .... LLC 
355 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.285

Written Statement of John C raham. President :lnd CEO, OP 

Wind Energy Nort h America, Inc. 

Select Re\'enue Measures Subcommittee Hl.'arin g on Certain 

Expiring Tax Provisions 

Committee on Ways and Means, May 10, 2012 

I am John Graham, President and CEO of BP Wind Energy North America. Inc. 

CBP Wind Energy"), a leading U.S. wind project developer, owner and 

operator based in Houston, Texas. I am submitting this writtcn statement in 

connection with the "Hearing on Certain Expiring Tax Provisions" which took 

place b('fore the House Comminee on Ways and Means. Select Revenue 

Measures Subcommittee ("Subcommittee") on April 26, 2012, in ordt'r to urge 

Congress to Clttcnd the wind energy production tax credit ("PTC") as quickly as 

possible. 

BP Wind Energy, which entered the U.S. rcnewl1ble energy market in latc 2005. 

is a business Unit within BI' which is oneofthe world's largest energy 

companies. In the U.S .. BP has approximately S52 billion in assets and 

employs somc 2].000 stair. The company's main bus.ioesses are exploration 

and production of oil and gas, refining. m:muf3cluring and marketing of oil 

products and petrochemicals, and the transportation and marketing of natural 

gas. 

With a growing business in wind power and advanced biofuels, BP has invested 

approximately $7 billion in alternative energy development. BP Wind Energy 

is a principal owner and operator of wind [)Ower facilities with interests in I] 

wind fanns. Today, BP Wind Encrgy has a gross generating cap:H.:ity of 1,955 

MW - enough electricity to power over 586,000 average American homes. By 

the end of this year. BP Wind energy e.~pec[s to have completed development of 

three more wind fanns that will gener'dte over 600 additional MW of electricity. 

which wi ll seeure BP Wind Energy's position as being among the top live U.S. 

wind developers. By the end of 20 12. BP Wind Energy wi II have built and wi ll 

be operating approximately 55 billion wonh of wind farms in the Unit~>d Swtes. 

We believe Chainnan Tiberi of the Seleet Revenues Measures SUbcommillee is 

leadi11g both an important and necessary elTon by tbe Subcommittee to 

examine more than 100 expired or expiring tax provisions to determine which 

warrant funhcr extension. It is our understanding that the criteria the 

Subcommittee will be using to detemline which of the provisions arc worthy of 

extension include whether the extCJlder in question will: positively impact U.S. 
356 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.286

jobs: c,onuibute to a U.S. economic recovery; and wbether, as a policy mailer. it 

wi ll continuc to achieve what it was originally d<:signed to accomplish. 

A Surcessfu l U.S. Tux I'olic), Thill Achievl's What Was F:n\'isioncd While 

puhlic discussion often focuses on tax outtlows from the U,S. Treasury. it is 

imponanl to keep in mind Ihm the PTe has Slimul:1led material new investment 

in wind en ... rgy that dwarfs what the T reusury has forgone Ul ta.~ revenues. By 

the end of2012. it is geneTIIllyestimaled that U.s. wintl generated power will 

account for between 4 and 5 percent of al l electric generation in the United 

Slates. The PTe and the investment it has brought have also led to numerous 

technologieul improvements includi ng in the on:us of wind turbine efficiency. 

micro-siting. weruher forecasting and energy storage. All of this has gre:1lly 

increased the capacity fuctors and overall cflkicney of what has becn 

considered an inlerminen! energy source and has lowered Ihe cost of wind 

energy to consumers. Wind cnergy is wcll on the road to aChieving grid pllrity 

lind lVe implorc Congress not to abandon this vcry promising. horne· grown 

source of energy that contributes both to energy indepentlcnee and diversity. 

Creates U.S. Jobs The wind Industry ha~ grown very Significantly since the 

last expiration ofthc PTC in 2003. Today. there 3Te over 400 domestic 

manufacturers of wind turbinc.components, that account tOT some 20.000 

manufacluring und supply chain jobs in this country. Indeed. so many new U.S. 

jobs have been allracted to Ihe U.S. from overseas as a result of domes lie wind 

developmc1ll thatlhe average American wind farm has gone from about 25% 

domcstic content to more than 60";" U.S. content Imby. Another 58.000 jobs 

reside in development, engineering. construction aod opt'rlltion of wind energy 

facilities. 

Contributes to U.S. Economic Rcen\Cry Manyofthe U.S. wind industry 

jobs have bt.'cn created in rural arcas particularly hard hit by the most rel;cm 

economic down-tum. In addition 10 the. nlllnufaclUring and supply chain jobs. 

good. ski lkd pt'nmlnenl jobs arc crCllled \\Ihcn cach new wind farm becomes 

operational. Many thous,ands of constructionjohs contribute to the bui lding of 

thosc facilities. MorCQvcr, thert" are the sih'lliticant "'knock·on'· economic 

clTeelS in anycommullity that come with bui lding a new wind farm. These 

include everything from an increased delll(lnd for housing, lOad ami services. to 

the royahy payments that (Ire paid to landowners on whose land the wind farms 

nrc eonstructcd . 10 the prop<:ny taxes Ihal flow into local communities to 

improve schools, roads anti Glher infmstructure. 

The U.S. wind energy industry sought without success to obtain II one-ycar pTe 

e.>.:tcnsion by the entl of" the tirst quancr of20 12. Thc reason for seeking action 

prior to expirat ion of the ercdit ;s th:1Ilhe PTe is a credit only against the actual 
357 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.287

production of energy. Congress mny nct 011 the extension during n "Inme duck" 

session. However, since project developme!lt kad timl! tnu take up to a year, 

unless a proj~'Ct is shovc!·readyat the time the Congress acts. there may be 

insunieient time to construct new projects before the nedit I!xpires 

lIg:)in. Therdore. while a one yenr cxte!lsion is critically important. a slightlY 

longer extension would send a signal that could truly jump-start the industfY 

and £.('t those who have alrcady Jost their johs back to work, 

BP Wind Encrgy docs not discount legitimmc concerns over govemmt'nt 

spending and support the efiorts o f the Ways 3m.1 Means Com milt~'e and the 

Congress liS n wbole to rake a hard look nt the existing extenders. Nonelhdess, 

we believe that the PTe should survive the welcome scrutiny that the. 

Subcommittee is applying. We al~i) know Ihst ,:\'I:n with rcspeet to those 

extenders that p:)ss muster in that regard. milny in Congress are looking for whnt 

h.as been called .. ~ light lit the end of the tunnel." They seek a commitn)cnl 

rrom our industry 10 phase-down its reliance on the PTe. with the expectation 

that in the not·too-distant future. a PTC will no longer be necessary. While 

there is mueh that is unknown induding the future pricing ofnaturol gas, BP 

Wind Energy is willing to make that commitmenl. 

Without at leastll one yellr t!.~tension of the PTC. mllny manufacturing and 

development jobs will be lost; the supply chain will be seriously disrupted; and 

it could be harmed irreparably. Our own development plans have already been 

ncgntivcly alTected by the contlnujng uncertllimy over a PTC Extension. I 

strongly urge this committee 10 immediately take up an ~tension of the wind 

energy production ta." credit. 

Finally, J would like to thank the Chairman of the Subcommittee, Congressman 

Tiberi. lor cnlling this imponant hearing and for the opponun ity to comment in 

writing. I look fO["\\lard to working with the Subcommittee and the Comminee to 

c.xtend thc PTe. 

John Graham 

Pr nt and (£0 

BP Wind En rllY ... ortn Amer c~ Inc. 

700 Louisiana 5treet 77002 

HOUloto ... , Texu 

I·mall: clo S)' n".d3ni(w~l!£!!l!1 

Tel: 713·354-4816 

May 10,2012 
358 

Statement of Brad Patterson 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.288

n ' Nld Paltr"'on, P"',. cI Onl~n~', aunklri, Indlon, .7J15/ _"{1lI1)r u,~ tonu"''' '" ~k'Md ,~~ 

wjnt! n~~~ produclion lax eNId:, IPTC) oj q"l<tljl "J poulbll!. 

rM PTC drNl. bII/lon. ", dr>ll"", In prlw'~ I"~W"~' In h<>m<'groWt! Am<'ricon Wind """""" ttK/I V~a(. I 

/w.e stttl Mr wind I",m """, my hou>l' rtWroUu m~ CQmmu"IlJ' - bringing In '''''Iff'''',,,,, Job. QI firll, 

and ""'''''''''''''''~ io/>, III ,,,./or>g f~'''' . and (l<nem""9 ~"" /0< 0'" <"",munl,y ... ""..,a and ho.op;roh 

<>11<'< lhe Ii/elime oJlho ",ojcc,. 1nu_"'9 III. <1fflO<Jnl al_, I"", <lur,,,,," ,')' g~b/""" <I~n. 

h_,,,wn, oJjr"';Qb~ "KlUtt:~.;, an 'HCdil!:n/IJI/"11« In IQda- lInd W. 'a~<Nldll ",a"",,, an 

in<fnfiYr tor 1M wlr>tI indtJJW /0 <Q"rj~~ 10 t!Q ju .. Ihal. 
359 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.289

Tl)<I Horo:l<abIe PatJlcj,; J, Tberi 

""""" 

_ .... ""'- .. _0Ii'_ _-"'-

_0 • .... ,..-, 

---

SuboommiUoo on ~ RaYenue Measor9s 

ComrTilWa on WeI'S and Mean9 

U.S. Hoose 0/ Rl!!IfB9MtatMis 

1102 ~ HotI56 0I!\ce B~ 

W~.OC2051s.6348 

D8aT CMmIar1 "TIlolot: 

----... ""_.- _ .. ,.." 

~ 

---

Oro be-haII" o/!he B..-. A88oc:iIIIic!n -Iho na~ trade assoclBliot1 for "'-lea's 

smal ~ - • -.old lIl\e to ma"... ~ for scheduling )'011" recenI S..t>commiUee 

haamg tooons;ldw certain I8K~1hiI1 eItIl6f BXPJred ifl2011 or wVI expn ifI 

2012 (also kil>:>wo as "We exlenders1, ! also am wriI!og to rospoctIiJIIy reQ\18611hat 

!he 

I>Ipartlsitn 

Subcorm>IIIee 

leglslatbn. 

8tld 

HR 

1h8 

1236 

lui Wal'l 

(!he 

and 

Sma

Moans 

! SCommItIae ~mer>I 

c:onsIOOf 

and 

~ 

Expand~ 

WOIIdcroe Adh 1n 8Il\IlaX extender& package 01 0Ihe< IagisIa1MI wtMda 1hat ~ 

ooror.. IhIt Sub<x>mmi\l:oo or tha !eII ~ IhiI year. 

The a...-" AssodaIlon ~ Ih!It H.R. 1236. wI1ict1 cahfor!hef"'" 

""",!ibm!ion o/!he B)(t';be ta~ on AmeIIc!o' • ...,;011 ~ In 36.,....,... is no! 

tactYlically m Iwt pm¥ision !hal eJC!limd in 2011·20,2. Howover, ItlIo mo::a6bmtlon '" 

!oro 0-.1"". and ~ onjoy5"rorv ~rtis!In IIUppCII\ on 11'>11 W81'S and Motall$ 

eo.rmtIee """ In Ihe Housa of RfIpmsantatMtB gBOIItIIlIy. TM t>* was 1nbOO.......t 

byWays and Means Comminee_ JimGeIlllct>. and. 81",--. 22 alta" 

member.. 0/ Iho Wal'l an:J MBa"" CommiIIae hIM! e<>-sponsonld It In .... Ihe bII 

lias 163 ~ and oompanIon ~ i1IrodUOlld in thaSanate (5. 534) by 

SenaIonI KIlny and Ctapo /leg 33 <XJ-SPOIl!IO<S. 
360 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.290

n.~bROlof"lIgiIIaoor! II ~ TheeJIdM WI~ 

"""""""'In

~ 

H.R. 123& ....... "'-":2 .tn"O!II"'-ln~ ~ 

jobsln r.:w.ns eapadty. and dI.iBs 

~ao:>nomi:<IItYoIopmenI_a.tIivmorw 

IICI"OU our nIIIkw\. Today ....... b<e-.1IITII*Iy 

~ 

netorIy 

100.000 IIJII. end pafI-1lme 'I\OI1un. and gen8/1IhI mora !han $3 baIn 8/lf"W'Y in 

W8gIIMIand banefihI, This II a~. ~1ndusIry. and H.R. 12:l6wouk1 help 

Itw IncuIty 00tveI0p ...... -. 

Sam Call1gbno 

Ct!flm...-.. Th!I B-. Aseocl8tIan 

Ft1.Irde< and PniM:ient. Oogfts/I HA;I BrewetY 

cc: Thol HDnombIe DII ... eon,:,. ~ ~on W.,...-.I """""' 

"The Hano:waIlIo Sanr:Ier M. LeW1, RIonU!g ""-'-. ~ or! W~..-.cI 

-. 
361 

Statement of Brian Lang 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.291

6152 auav Place NE 

Roanoke VA 24019 

APfll24,2012 

To om II Ma~ (once.n; 

I ~m writing 10 ..,.pre .. my strong-support lor eXlend,n, tn .. Produc.t Ta. Credil for eleclrlcity 

pradu(ed uSin, wind, 

My pr<>leui"".1 ca,ee , 0 1 Olle r twenty vea ... , . mechanical engineer for manufactu,'ng 

comp"nles as I~o n me that Ame.an manul"ctur111j! jobs lie "Itic,,+ to Our nation's ell ~i . 

l!>Corporatin, Ihe Production t., C. edit in lon8-1 .. ," , plans fa. investment in comme.clal wind I.,m, i, 

"iiic.1 to ene.gy companle,_ V"". Irote (I (I(Uca I IO In11 Produc(i<ln Ta. C ... dil_ The «mnection betwee n 

~our vote on thl. , .. "", a nd the c.eallon 01 American manufacturinajob.,,, . '!fang (onneclior>. 

While I do nol wo.k In I~e wind energy industry, I hiVe I"ends who dO, OIl GE'. Salem, Virgin ia 

ptanl, whl(~ I. IIgM .round the co.ner ' ,om wh .. re I hap~n 10 wo.k. We I",ow fw a I~<lt~.t jobs Ir<>m 

wind ene.gy .'e nol . pie-in-lh" .. I<y, r>ebulou. concept, They .'e ,,,,I. Tho ... jobs- put paychecks in the 

podce~ 01 people I 'now petsOnaUy. rho'il')<>b< put lood on the II ble (~ home, right he ... Tn t~e Roano e 

Jlle~_ 

Plea ... provide whalever '''PllOrI you can for • long-term eJ<leMlon of !he Prolluotion Tax (",lin 

fa. electri'ity produced u.log wi nd. 

.n~ yo" 

Sin<e rtlV, 
362 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.292

O • n !.l ~ .... " .... , 

I, Tom fyi, Manu/.tllI ...... En"neer, Br.td Foote Gel' WOl~'. In elcHO Il. 

fP'PKtIOlly U'I~ Coni"''' (0 ""'~nd H\& wind e",,'1~ pr<>dO>Ctio .. I •• Ct";~ (F'TCj~, QUickly" 

po"ible_ 

Brad Foote "".r Won, i>. di,,,,, ,uppller 01 . .... ,.;"g .y,lem' fo, wind ""bine. and mher lOne 

tlrl . pl)li""'l<m. ,n. reQuire he ..... , COUtU g •• ,ln8, W. '''!lply produa to major wind ,'",bme >I< 

liP''''', two 0/ them I><'i"l! GE and OIOQ'" Wino Pcwet. il,ack In 2007 and 2OOIl, ... e a, Brad Foote 

u ... ~ ,,,,,,,,M< 01 lI.od"o &O'''iIlo Ine~ uw , •• well .. other a.,,'n& ell<lO"",". AS SO<. 

nd 011 ", .. l1ed, """,d high. and OUr country looi<ed 10< enffC'( 

" Iternatl.", .... e looled OlIfS""p to prod"",," and 'hlp ove, 12 mmion ~." of wind prod....,. 10 

cur <",tome r>' month . Wind POWI!'f ... a •• ~ini", ",engtI1 and WI! look fo .... ord 10 ,""oy .,.., .. , " 

I growl"."d "'<>11 ... '''', 

AS _ .11 know, Ine tee."" r~,"on ho, 1.>k1! .. ~ toll on m.nV I~ of m,.'nMS_ 8r.td FOOte, 

~ '"10 heiSIIl 0/ ,,,,"wind 'boom'. em~~d over SOO peopl.<~ '0"" t~ri"<\I!.<ompan~ nd '0'., stili &,owinS M • 'KO,d ,.!e. w~ had .... O/.er. wo'~in8 ..... "'i""' .• nd hId train"" p'"",."" In h 

0, ....... het. empkr/"" we,. ',"",ed i~. du, 'oom 'I'/It, I. well I. ooo-Ihe-ohop· 

fioor valninl. As wind lIDWer ~ Ie .. and I ... notiud. and I~e price 01 all .. "", down, B •• d 

Foo ~ waS ~ with very hard ~r>Omic times. w. ,educe<! ou' wor'< force to ou' curr.nt "umlle 

• 01 tIS "",,,roy...., IS we SI'UUle<l to SI,V .11",,1. To ~i' d.y. "We .,m fHl Ih. "'<:tt. 01 the doW 

n '"mol Ihe economv. B"': """. im~n.ntly, the Ltdol 0 .... ,,,,,,<1\ in . 1"',"0\"' • • """v, In QU 

' ..... wind power, keellS OU' tomp onv" , lovel wh •• . I.ditflw~ '0 ".V compel" ..... witho,,' 

tompel]to". 

The pa.sin• of the nc eJ<\..,sion i>crlticalto A"""I .. " ""nufoctu .... ,! will f.e<' up CI,h lor c 

omp.n,., Lo n...,~ in bette, t«hnology, .row thei, blJsine ... " .nd pre.t<lIP. I gcod ,Ian Ie bring 

Amer"\<;ln .... nuf.<tunng bo<k 10 wh« b WI' befe.e tht re<."len betan. ~""",;oO QUkI<!v. 

Tnan" youforyou.Hme 

S'nce •• 'y. 

Tern tol 

Manul octu'inl £nl' .... ' 

mo ~ Get,.., 

Cice.o llo 60<11)4 

\21"~ «mnllr.r""""JJ""IiO~ 

M .... -l .. ~1I 1it1 

"". ~''''2 
363 

Statement of Built In Gains Coalition 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.293

April 26, 20 12 

Extend the 5-Year Holding Period for Built-In Gains 

Dear MembeJs of lt1e House Ways and Means COmmillee: 

As represel1tatives 01 AmerIca's small and dosely-held bll!lnesses, we respectfully encoyrage 

)'OIl to extend the s.year hoIdilg periOd for built-In gains, a key proylsioo of the bipartisan S COrporation 

Modernization Act (HR 14181 Introduced by Ways and Mearn; Commilteemembers DB'leRe!Chert (R' 

WA) and ROIl Kind (O-Wll, 

Small blJ5inessesare the engine of Arru!rica'seoonorrkgrowlh 8IId Scorpo~ ions ere the 

comentone of themlOlll truslroe!oScommunlty. ThIlreaf8 nearly 4.5 mlUion Soorporatioos nationwide. 

Theyare fIlevery community and IIVeI)'indU5try. A rooenl5tudy lIy Or. rt carroll (Ernst & Young) 

loom:! thai S corporations are a signifIcant source of jobs s well, ern>"o1ing one out of every four 

private sector workers, 

Unlike public comparnes. these dosely-hakl tlusinesses have little or no;}(:CeSS to the pullli.:: 

capital marlcets Thejlrely on hanks. they rely on relaijves. 8M the)< rely on their own aSl>ets for 

Inwitmoot and working capi1al. An ovorfy long built-in gains tax exacerbates lh di!oi!dVilntageby 

preventing corwertoo S corporations from putting tnecap'tal tMy already control to better use, 

S corporatlon~ should flOt be blodIed lrom accessing their own capital: these are critical 

fl!SOUrces Ihal allow private companies 10 grow theirbusfnesses. create jobs, arrd remain oompelilive. 

On behaH 01 America's Main SlreetlloJsiMss communll i . we respectfully ask, tnat yoU exl£!nd 

thl! ~yearhokling period lor built·!ngaln~ . 

Thall.\l you lor YOUI collSiderallOn. 

Sil1CBf!lly, 

Ame<ican Council 01 Er,gineenng Companies 

Associated Buiklers and Con triiClors. lnc, 

Independent community Bankers of America 

Natiorlal Beet WlloIesa\efs AS$OC:fation 

National FooBfalion of Indapenoont Busine6S 

Nation 1 Funeral Oireclol"$ ~$OCiation 

National Small Business Association 

Printlng Industries of Amefica 

profe!i5lO!lal Beauty Ai$OCIation 

Roofir,g Contraclln Association 

S Corporalion Msocial ion 

U,S. Chamber 01 Commerte 

Wine and Spirits Wholesalers of A.mefica 
364 

Statement of Burton Callicott 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.294

I, BOrTOn Call/calt, ~ Col/f ile Llbnlrl.n In Charlu lon , SC, rospecffully utye Congress /0 et/end 

the wind energy productiOl! tel( crodit (PTe). 

AI e t'me when we ere faced with diminishing oil end coal /"eseNes, It IS vilallo ef11:oursge ell 

forms 0/ altermlO've, nmewable Emergy soutt:as Inc/llding wind energy. Even int!mup,,'ng cU/rent 

incel1tives for e SflOri perIOd of time would sellflls IndusW back s/guificllntly and po/eMially be. 

even falal. 

The PTC drives billions of doIlani in private Inves/men/ln Ilomegrown Amencan wmd power 

each year. JUSI orr rhfl CO<ISI of Soul/! Caf'}i/na n!larmy 1l0fffll/S Ofltl of Illy oeSllocallOns for" 

wind farm in tlla whole country, Developing this ro.soolt"e would bring illlxms/ructioll job$ at 

firsl, and maintenance Jobs in lI!e long lerm. end generale mvenU8 for our community schools 

and hospitals over tile lifetifffll of the project. Increasing IIle amount of POWfK IIlal our COUnlry 

[}fits from cleen, Ilomegrown. anOft/f/bla resoufClJs Is an e)(cellant IIling for us to do - fmd Ihis 

la ~ cl'l'tdit provides an incentive for l/!e wiqd industry 10 conllnU!I to do just l/1al. 

I urge 1/78 oommill&e /0 lak8 up an eK/ensian olll1e willd energy produclian lalf credit righ/ 

away. 

Thank you for yourcoflslder3/iol1 , 

Burton. 

&rlrJI1 Callicott 

1f5Q Edisto AV8, 

Charleston. SC 19411 
365 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.295

Business 

Roundtable" 

Recommendation 

Sta tement of Bosim.'!i' unlll bl e fo r th~ Recant 

lI s~ .Y~ and Mehll.~ C(llllmillee 

Subcom mjlt ~ on Selecr Re .... nue i\tensuri."S 

Hearing on E~ pirinl: Tu Pru\';sions 

" "rI126. 20 12 

I he lI nonbl oh n M. Engler 

President. Business Ro undtahle 

Businl'liS RQundtable welcumcs this hl'"J.ring providing an e;I:31I1;n31;0I1 u!"lhecxlenS;<)II t)f 

e~pjred lIod cspiring la", provision;;, Business Roundtable ~1ieves th81 thC" la~ system plays 

an i'npon~11l role in dctem1inillgjoh crc~lion, economic growth. and Ihe ~'Q)\lpe iljvcncs.s of 

U.s. businesses. For thi~ reaSOll. [lu~incss RoundWblc strol1gly supports lh~ immcdi~l'" and 

seam le ssc~l~nsj!ln <IfillI.' ~xp red business rax provisions from Irtsl )'C3r, including the 

research credit nnd irnponant international provisions discussed below, as well as rhc 

refllporory continuatio,\ of the 100 [)eI'CCIII bonus deprrtiation n,les that e;o;pin:d at the end of 

201 L 

Given Ihe um:c":\inlycre~ted by nOI knowing what Ihc ~\3\C of the Inw may be and given Ihc 

competitive prcs~ures oftbc global oIaJ'ket, an iIlIDu:dia!c and seamless e..<Ctcnsion of these 

prllvisilln~ will provide immediate b.:'\cf,ts til the U.s. C('llnomy. Business Roundtable 

f"'1hcr urges IMI Cougress move forward as sOO n as possible On a proc.::ss to cnaCI corpor:lle 

la.~ n:IQrm providing a nll)(kmi~cd, compt'liliVl." and pc'nnancnlta:'\. sysl<"m Lhat diminal.'S 

confusion nnd IInccnainty for Amcrica'sjob crealors. True reform i, nbsolutely css~'1Hinlto 

economic growth 311d job creation to be compeli!il'c in world markels today. A competitive 

corpomte tax mle cOl npll r~ble to Ihe OECD ~I crllge and a compel;t;I'C lerritoriallas system 

simjlarto the Tt"$1 or th~ ",')rld arc two cS-';\'ntial cOlllp(mcQls ofcorporatc lid rc fonu . 

• • • 

Introduc tion 

Business Roundtable (3RT), the a~SN:iMi()1l of chiefexI!C,"ive otlictrs of!c~ding U.S. 

compani"~" 1L"pn:~~nls m"mbc.-roompanics " 'ith oVl'T $6 lrillion in ann ual revenu .. 'S ~nd mure 

lhol1 14 million tmployCl"S". ORT m~mbl'r ,'o,"panics cO,"j)ri~e n~arly a third Oflh .... IOlal 

\'tll l,e oftlle U.S. stock markel Bnd irwe,t more than Sl sO billion annually in rescllreh lind 

dCl'elopmcUl-- ncarly balf r~1\ private U,S. R.&D spending, Our cOf1Jp~Tlie s pay $ 163 

billi!)11 in dil'idcnds to shardl<llders and generate an .... still\ a\~d S410 hillioo in sale, fo r small 

tlnd medillm-sized busincsS<."'S annl':llI y. Business Roundt able commends (:h9i"11l1n Tiberi 
366 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.296

Dnd Rnnking Memb<:r NeDI for Iheir hip.1ni~~tJ support for I:l.,( rcfortn. The currenllas 

syslcm has nol been Ihoroughly cx~mincJ in over 25 ~ars. O""r lhis lime period Ihe rest of 

Ihe worltl has mUtlemi:.«·d lh~ir l~~ 5ySlems and h)day We lind the U.S. a~ syslem a 

signillcant obswcl~ In Ih" competitivcnc.ssol" U.S. com panics and thdr American IIo"Orkcrs. 

BusiOC$S RoundlahlcCEO, are finnly tledi,,-al~ 10 bu si l1~;; s tax refonn Ihal results in a 

p.:m13lH:·nl, mo(kmilc<i and simplified laJI cod.: to incll.'!lSC the compclilivenc>s oflhc Uniled 

Staid; a~ alo<:a lion for im'¢;lnlcnl and ~mploynlcntby bolh U.S.-i>ascd and fo,-<,ign-bascd 

companies. Our pulicic) should stril'': not only 10 make II, compeliliv!! with other world 

economies, but lu make the Unih:d SI.11es Ihe be~t plpce ;nlhc 'world 111 launch a career, 

hcad'luartcr a business. hire employees and COl1duCI bu. iocss operations. 

l'Yh'jnr slrucllIml features of our IIIX code have honn<!d U.S. competitiveness. While e.x!ensioll of 

c'piring pru"hiol1s IS no Subslilllie Im-Ihe urgent n,-~ for competilivc la.' ~form. failure 10 

nlCnd Ihese provisions before Congress can complete work 011 tax reforlll will onl y lunlter 

diminiSh AIl1~.,.ica·s competilive positi,~n and result in significanl dd leri u~ elTects on 

bUSiness expan~ion ""d job ~owth. Con17CS~ Should immediately and seamlessly cSlcntl the 

cspired business las provisions from last y,:ar, includinylhc research credit and imp<lrtJIII 

inlcmat;onnl provisiol1~ -- spcci ficully, ti ~~ financing income and "look Ihrough" rulesDod provide on extcn~ion oft~mporary 100 pcrc<!1ll bonus depreciotion 10 promote tit..., 

eeotlomic recovery and increase priv:lle scclor employment. 

Much 1<)l1l>standin/j. business tax l)()lky exists in the tax co!le today ;n Ihe fonn of tClllpurary 

provisions. n,e Joint CO!llmill .. ""1:"on Taxation identili.:s 10 1 lax provisions as ei!lu:r h~, inJ; 

c.xp;rt:<1 in 2011 {60 pm"i,ions) or /:'pirini\ in lO ll,,, 1 pro,i~ion~). By eompari';{]n, in 1'199 

the cO!nparab!ccount was jnst 12 provisions. The enactment ufprov;5ioll~ 011 a lemporary 

hasis ralher !hnn pennan...,nt results in diminish .. -d incemi vc cITC\:ts and cOnlribut~""S to 

unn~"(;~ S$aryb,, ineSJi "n~(>J1a nt y. ADY bus n~~s thaI Ir(-a llxi il~ " uSlOm"", in tht way Ih" 

g(l\"t'mntcnl rUII~ the tax code .. nOlldlillg ils customers the pric'es cha1);ed 10 them until 

aner they had made their purchases -- would lind ils customers Ie;!"ing 10 a more. reliabl" 

cO'"fli'liIOr. 

While the best 5()lution 10 fi ing our corpomlc 13:{ ~ysl~ln is pcnllOuCnl refonn. we CltnoOl 

alford 10 let important e~isting bu,incs~ pro i~i s eJo.pire bo1forca pcrm n"nlta.~ cod.::: is in 

place. EXI'-'llsioll oflhes.: provisions should nOI be controvcrsial. The AdminiSlralion has also 

c~II~1 for the eSIClU;Ol1 of lhc expiring bu,iness provisions in it ~ FY2013 Budget. 

Business Roundtable slftlllgly uppons Ihe seamless ~tension ofbus;ness .~ pl"\) \" s;un~ Ihal 

espired at the eml of2011 and dPcdally notes the impurtance<)f cxtending the n:s.:arch 

cr1."dil, Ihe acli"e lin3ncil1il provisions, aud "lOOK Ihrough" rulc ~ as ITIlctur$ll'ru vi$io ~ of 

Ihe Ius code. The pillk y gl);lls ofl h~~ Ihn.'C provi ioll s should piso he supported in p 

pcnnanent. reform~d lax syslem in order to dr;I"C innova tion and international 

cOIUP<'tiliveness_ln addition, Ihe Icmpo",r), 100 percen! expenSi.ng ( I on f"."ccot "bonus 

deprec iation") provision enacted in lOin W sp«'d economic recovery shuuld be c.xll'ntli.'d 10 

, 
367 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.297

solidify th\." rec,wcry lind job groll·th in :WI2. 

Resca[!,;h Co.-di!. The research eroo;t is <In l'.'{ample ora structural tal{ provision enacted on a 

t<:!l1pmary basis. The research credit "'ns implemented in order to illcrcas,' resc~rch n~(ivi y by 

American bllsincsSL'S. It has been n tcnded on 14 s<:par:ue occasions since its initial enactment 

in I ')81. The credit h~s frelluc"tly bc<:n e~tcnded I\:(n .... ctivcly, most R'\-'<:IlUy in lX=tnbt:r 

1010 as p'Jn of the Ta~ Rl.'licr. n~mplo)'m~nt In urnnce Reau1hori~al;on. ~nd Job Crt'lltillll 

Act of2010. which e~t~nde<lthe credit rctroacti,-ely to th\." beginningof2010 and 

pros~ i,cly throo!?,h the end M 20 11. In the 31 y~al1i sinN, itS on!?,;n,1 <'n3ct111cnt. il has 

btoCll in plat\." for all but on<, year when the credit expired and WlIS not TI:troocti,'e!y c.xlendcd 

(July 1,1995-Jun<,30.1996\. 

AS nuled by the Treasury D<'panmelll, Ihe rCkan:h credit provides 11 strong. incentive (or 

businesses to \."xpand thdr research efl."",, Ik .. ""IIus\." sciemific lIdvancenlcnls through 

research arc a form of a "publie good," the benefits of which are not I'ully r\."~ivcd by the 

~omp3"y undcrtllking the r(::\I:arch, b,JSiness ... .s undc~ in""st in R&D activities rcl~tivc to Ihe 

l"etlntltny-"'id~ bcllclits uf this spending. 

TIt~ TI.'SCllrch <·h.-dil din"elly sopports employment. Appr().ximm~ly 70 percent of research ~O ts 

thm qualify Ibr tbe credit are labor cnSh. C\'lmpanics T\.'\:eiving the credit employ one 111illiol1 

domcslic rescarch\."TS. Th~ rcscan:h credil suppons inOO\'Il11,ln in manttf8~luring.l\'ilh ncurly 

7(1 percell! or research cr~dits claimed by manur''':turing roml"'nics. 

Apivc Finan£in~ Income. A basic princ;p ~ ()f the U.S. t:1.'{ ~y~tet11 is thut ~~t;ve foreign 

business earning;; of subsidiaries of U.S. cnmpBnicsare not tuxed in th\." Unit~-d SI3l\."S uml1 

such earnings are rCn\;UL-d back 10 Ihe U.S. parco!. This basic principle "f dd<:rTl!1 has also 

been Ihe \;,11' ftlT active financial services income lor nc:trly Ih(' entire bistory ofthc ta.x code. 

oOlil chnnged in 19~6, Since 1997, the principle Ill' dct"crr~1 for nclivc linancial servire; 

income h~s be~n II temporary provisiDl'! oflhe un code, and has been eX lended num\."rous 

lim ... s. The c(,rtent temporary provision c~pired at the end of2UII. 

U.S. finnndai !\Crvice companies - induding banking. securtlie . and insurnnce companies --

compd,' in foreign marlH_1s around the world with OIher financial inslitulions hi provIde 

Iinanci~1 sc,....iccs locally to foreign custUtilcrs, Comn'crcial dicnlS ufthes .. linuncial sc:Tvlce 

~ompaniC5look to a financial in~tiluti nlhal <'an mC<:t th .. ir needs wOTld",id~ nOlju~t in Ih~ 

United Stales. Tb~ ~bi!ity of U.S. ftnuncial !'Crvice cotnpllni\."s 10 b<:-cotll(Jl.'titil'c ,n fnreign 

nmrkCIS increaseslh,' jobs h~y pro"id\." in Ihe United SllltCS. In ~ddition. U.S. r1nDllcial 

scrvic ... companies providin!" Ihcir services to forcign customers can help booSI ,'I{p(>ftS uf 

U.S. goods b}' assisling in the financing oflhese goods to foreign tu~tomcn;. 

In Ihe abscnce nflhc acliw financing tcmpornry provision U,S. linancial !\er\' ic~ tllmpaniL-';' 

would face a signilicanl ta.~ d;SlIdvan(~(!relativc 10 their furcign-hC".wquancredcompetiIQTS, 

Pnilure In extend this prnvisioll would ham) thCCO"tpelitivclll'SS of U,S. cntnpunies and 

rcducc U.S. jobs. 

3 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.298

"Lo.lk-tllfOugb" rule. A Icmpornryprovision of tile I~X cod~ ~lIo\\'s U.S. comranics \0 

redcpl"y income belwe"" a flJr";~n subsidiary eami ~ aCli"" bu;;in~ss incom~ and 8 rdal<:d 

foreign subsidi:lry in 3nOlhcr cuuntry through Ihe paymem of dividends.. iote=l, relllS. or 

royalties ";lhou1 b.:ing subj....,110 ~ulT~nl U.S. IIl.Hlie", tin lit" fXlyment. The look through rule 

"looks through" 10 the underlying sm" c.: of income 10 delennl!! .. whether sueb ineom .. is 8elive 

foreign bw;inCllS income ctigible for dcf .. rr~1 or passiv" i{)collle Ihat would b.: subj,:ct \0 current 

U.S. 13~alion. 

Th"look Ihrough rule was lirsl eilcrlive in 1(l(M and has bct'n e.'(tcndl'tllwice sinel' ils 

nrigin~1 enllctmcnt. The look through n,le e.lpin-d IIllhe end oflO II. 

The look throui\h rut.: p<'mlils income to be red~ploy~d ~n1on!: related lorei!lJ1 suMidiHries in 

an eflicicOl manuer.13l'<;"USC the eo~t of finanei"!! throug.h intc m~1 funlls i$ };cncrnl1y lower 

Ihan usc of extemal fund s. a finn will g~!1crn!ly lirst wish to uti1i~c internal funds ""fol"l.' 

wpping ".\lcmal sourecs or finance. The look Ihrough nM ~1I0,,"~ a ntuhinntionnl company \0 

redeploy intcmal funds be,,,";:<-n foreign subsidiruies withollt creating 3 t9X brrier 10 Sll~h 

tr m~ri:rs_ 

111e look through rul~ hclp5 maintain the eompctitil·cnessofU.S. cumpanies opcmting in 

foreign markets. In Ihe a~Il"c or,h .. look through rule. fmeign opcl1l li Of1~ might r(.'quirc 

greatcr ul't of e.xtcmal f\lnd~ or gl"\!llt<"r reliance 011 funds drawn dirc.:tly from the U.S. parent. 

MO!\t or Qllr foreign ~"t"npetiti)rs operuteunder terrilorial t.a ~ syskms Ihm fuciliul\e Ihe 

redeployment oftbreign eamings. Strong and intcnmtlOimllycomj>Ctltlve U.S. C(lml)'111t~s 

in",..,ase U.S_ employment and the Sirenglh and vilalil), of the U.S. e<.:onomy. 

) (,1() Pcm:nt E?:!Nnsing (1110 pcr.:ent "bonus deprecilltion"). Tempoml")' p.1ninl ~p.:nsing at a 

30 pcr.:cnt ralC lOr cquipmetll and machinl"'1")' was firsl enacted to boost e<.:onomic recovery in 

2001 ~J1d 2003 for invcstments made lin or afi~r Scplembi:r 11 , 2001 and before January I, 

2()05. 111e provision was later cnhanced to prol'ide 50 pcr.:CIll p:\Minl expensing and ~pircd Dt 

th .. cml of2004. In 200S. par1i~1 cxpcnsin)!. was cn3cI~d at ~ SO perc .. nt rul .. as I'M Oflhc 

Economic Stimulus Act of 200li and was latcr cxtcmkd through 2010. 

The 100 pcrtt11l es pcnsillg provis;(ln was cnacled in December 201 0 to provide full 

expcnsing.for inl'l'stml'!1IS m~d" alter September 8, 2010, and on or before o..'Ccmber 31, 

1011. The December 2010 law pnwided Ihal 31k r h~ ~xpimtiOll of 100 pcrcClll e.xj>Cnsiog, 50 

p.:r.CnI e~p.:nsing cOlltinm:s throllgh Dttclllber 31.1012. 

Studics r.:vicwed by the Tn:~sllT)' Department support expensing BS an l"'fii.'Ctil'c in\cstmcrt! 

stimulus. In vic", of the significnnl on!;ning world1Vjdee~'tmomie uncertaint y. Busincss 

Roundtablc suppons cOlllinuation of IOU percC11t expensing lor 2012. 

, 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.299

Reioml of th ~ U.S. corpordt~ta:'( ~)lstcm and ils treatment of intcnJ3tionai income ar,' of 

significant impononcclo thcgro"'th oftht' u.s. economy. U.S.-hcadquanered companies 

with operations both in the United Stales and abroad dire<;lly employ 23 million American 

worker;:. and they creOle .)VCr 40 million adllilionnl Amcricanjob-s throUg)1 th";T supply chain 

and the spending by their sopp li ~rs und ~mployccs. The Ilbility of Arneri<:an comp.1nlc!; to Ix< 

cOlnpctiti\"e in bolh lIomcstic ;lull foreign lIIarkets is esscnlialw impro\'ingecouomic growth 

in Ihe Unit .. <d Stal<'S. reducing high raws of U.S. uucmploymelJ\, and pro\'jding for rising 

American living siandards. 

Th.· U.S. ~"()rpo ra te incoml' t.1X system uxlay is an ulltlk'f rclati~e 10 the la.« syst<'m> or our 

trading partn~rs 3t a lime when ~"llpitnl is more mobile and the world's e<:onomies are mort' 

imcn:onne<:led than 31 any lime in history. 

Th.· <:Oll1binCd U.S. f<,.koml and stale ~ta tlll Qry corpomk lax rat,;, is now the higheSt in the 

OECD. 14 percentage poinlS above the averuge of olher OECD counlrie,. A eompt"tiliw 

corpomtc laX rate is an esscmiol clement ofmeanin,gful corpomte lax reform. 

Thl' Unit~d SWt~s is also h~ only G·R country Ih31t:tXCS tbe wl)rldw d~ incomet)f ils 

corporntions. Within the DECO. 26 oflhe 34 countries usc tcrritClrial systems for Ih~ taxatIOn 

uffurcign eamings. whereby liIlJe,'r no additional hOll1e eou!1lry la.« is ill1lJOscd 0'1 active 

tr~d" or bu, inc;s profits ~<lm~d uhrQ"Jd "hen lhos.' eaminl!S jI~ renlilled hume. J"pan and the 

United Kingdom adopl~-d lerrilorialtn..~ s~Slems in 2009 10 promote the coll1petiti\'enessof 

their locally hc~dquanl"1"l.:d 1l111(lil1~tiona[s ~nd booM thcir cC(IItumies. TIll' U.S. worldwide 

system oftaJOmtion signi ti~ lllll y magnifics the dllmnge done by the high U.S. corpomtc t3.:'\, 

and sign;!icaotly impairs American busill~sscs cOlllpetinS in world nlarkets. 

Since Ihe lime oflhc last major reform uflhe U.S. COrp<)rJle luX ~ysle," to 1\186, tbe world's 

economies have bi.'Come increasingly inlegra ted. Th ... imponanl'c of c!"()ss-bonlcr tmde and 

invcsnlJcm has grown signiiicantly. with worldwide cross-border investment risi ng si,,-t m~'5 

f.1ster than world output ~i <:c the I 980s. 

T(xby. Ihe U.S. corporntc tD .~ system hinders the ubilityofU.S. eompaniL'S to grow ulld 

comllCt e in the world economy with the eOI1S1."qUCl1CC of less investment in the Uuilcd StHlcs 

and a I11llrc slowly growing economy with fe",cr job opponuniti<:s for Amcrit""Jn work<'rs. 

The ability of American companies to compete and invest abroad is vital for opening foreign 

markets \0 U.s.·prod u~"Cd goods and expaudiugt/)e scope ofinveslJllcuts in R&D and other 

activities in lhe Un il ~d SWles. 

As CongrfSS undt'Makes tax rdonn. critical decisilln$ will be madc that will arreet the abil ity 

ofth;;:. U.S. cconomy to grow. crem~ jobs. und 0110'" AIlI~rican workers und the compatlics 

that elurloy them to be compelit'\'e in the world t"ConOIl1Y. A Ihorough c\ lu~t io n nrlh ~ tax 

code willl:>e n~"t:cS!>llry 10 dcto::rmino:: whkh policies shonld I:>e chang~d and which tClIl pomry 

policies ~I\Ould be made permanent. In mnking these dctcmlinmions, it i~ criticnl thaI 

Congress foc\l~ 011 the imponance of Cl;"onOlllic ~rowlh 3nd the signi fic3111 ga ins that can be 

, 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.300

aehi~vcd through a more cflkkl1t and competitive tas system. 

Business Roundtable ruUy SUPP<H1> yOllr vigorous pursuit of torpor~te ta.~ reform. 

nclu iun 

Bu;;iu~.,;s Roun(!ta!>le nppreciatcs thc.nn£oing work of the Way, and Means Commitlec and 

(h,~ Subcom",iu~~ ,n its focus On tax ...,foml tQ improve (h" co"'pc1itiV<:l1CS~ ofth" U.S. 

economy mtd incn:asejobs :md W8b't.-s of I\merican workers. While pcnnaneT1lt3.' ref<>nn is 

~ssenlinl for this purpose. l>efon: this; importunt work C:In be completed il is ncccsSllry 10 

provide the seamless c.~tcnsion orlhe bllsio~""Ss t~X pml'isions that expired (It lhe end orlOII. 

including the !"<'Search eredil and (he imporl anl inlema ion~ l Q"isio ~, a$ well as I no pi:rccnl 

bonus dCl'recimioll for 20 12. As shown in this IcstimollY. importanl structurJ.1 features of our 

t.,~ code arc cum:mly ~-anicd Oul through lheSt"" temporary pm\"isiollS. Their e~pir;ttio ll before 

a new pennancllliax "ode is in place would diminish the compelitivenC5S 

of AmcricJII businesses I! d plac\." Jt risk millions of U.S. jobs that dCJl<!lId on the abUily of 

U.S. oompanie~ 10 compete ill mukets around Ihe world. 

On ~bulfor Business RQtllld ~blc. I look furv. aed 10 "orkin!: ~loSt""ly will! Ihi> Commillc~ 

and CongJcs~ on the illlmcdinic estension of these tax provisions and toward Ihe !l\"~rridinl',. 

obj<"li:ti " coflnx I"I".'fom,. 
371 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.301

Supplemental She'" 

Statement on bch~ r ('I fBus,,,css Roundtable 

SUbllllUI:U by: 

The Honorable John M . Engler 

President, Business Rnundtable 

30(l New Jc~cy A~enuc. NW Suite 800 

Washington, DC 2000 1 

Phone: 202-872-1260 

Email: iIllCl;(J "'ill~@ hrt.o!,\! 

H~IJ:: Hcaringon f)cpiring Ta~ I'ml'iSions, April 26, 2(112 

7 
372 

Statement of Carl Oerke, Jr. 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.302

CAR~ N.OERU,IR_ 

16l lEXINGTON DRIVE 

RIVO EOOE, NI 07661·1006 

(20ll 48!1-O867 

t,,1 oe,~e@y.ll00 tom 

U APRIL1011 

I, Ca.1 8. Oi'.~~, , .• ~~dlca1 ~<lInologi<1 "I tude ~ III.hd.le, O(J re ,pec,lully, " Ie ton!!,e •• :o 

""lend tf>< wind "ne rlV production la~c.edi! a •• 99n •• po .. lble. 

Ame.ica /la, dep<lnde.o 011 dfny 10,,11 fuel, (011.,., <oal), natural!!", a"" un,af. nutiear power f 

'" iu ene'BV need. I", m.ny ve.,5, TN. ~., led ou' <ounuy to be dep"nd,,": on fo.eign <oont,i", 10< ou 

• "r><"IV ".ed,." II., ..... C .... i'.I ... ,upponln,lo.elgn coun"l", willi ",p.e"i~ ,eglm"" Ih.: ,uppon I 

."o.lnactioil; ... ~I oel"1 large con In mon"" and Ih"live, and well beini 01 our .,med forc.,. 

Muth 10 the di.may ollhe 72" ofille America " public Ihal wanled to end ,u~ldie, 1o Ihe la'1e 

011 ~omp.nltl lhme sub,idie1 ~ontinueon. Th •• ecenl expan,,,,n of oil .oplorotlonand ,ecovery in ou, .oo 

Un!", h.1 Iud 10 un.afe practictl li k. lIydfllul~ ' '''''''ufl''l (fracklnl) that pg" • • nvi,gnmentll d.nK~ 10 

OUi "Ir'~n •• COnl.mln.lion 01 OUJ 8round wale' and Ihe pg"ible c.u>at''''' 01 uf1.hqu.~e., 

Th~ wind f!<l"gV ~foduct",n 1.~ ,,~dit .... ill drive ,fv~le inve"menl ,n dun. ,usl.ln ~blf dom 

en,eeneflY lh.1 d ..... nol pUI ou, ,ltiten> O! risk. "will .110 creole job> .. Ihi. country du,ing. fece. 

,Ion anallt .. po,II'VI!. final lv, ~e product"'" o! win<! ene'gv will not conlribule to me d!mate chan!!e 

p.oblem. 

Therefe, ... ~tendl"l lh e wind enef8Y pfod.,,,lon t •• <fedll I, • '" 

-!!raIne, lllal willlnCfu,e ene'gy p,oduclOon and ene'IY lnde""ndence. e.uI< job •• and not put me live 

.01 ou"efVTcem ..... aod women ~l ,i,l< .. nd" good !Ot lhe environment. 

Since'e ly, 

CoM N.Oe(ke,Jf. 
373 

Statement of Carol Buck 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.303

TO: Way'S And Means Committee 

PROM: Carol Buck 16648 Harrison St. Livonia, MI481S4 

RE: Hearing on Certain Expiring Tax Provisions 

I, Carol Buck, respectfully urge Congress to extend the wind energy produetion 

tax credit (PTC) as quickly as possible. 

To continue this tax credit is an important part of the efforts we should bt: 

making to switch our energy resources to viable, non-oil related resources . .Let 

us be n:ulistic. Not only are the dwindling oil resources costing more and more 

to locate and produce, they are polluting just in the production. In addition. if 

we burn all of the oil in the remaining reserves we will be adding an 

unsustainable level of pollution to the planet. Just as the United States was at 

the forefront of the industrial, lIulOmotive and computer industries, we need to 

be in the forefront of the alternative energy industry. It is not only because it i~ 

the right thing to do for the planet, but it is the rightlhing to do for the 

economic growth of our counny. We cannot afford to bury our heads in the 

sand and wait for other countries to grab the lead in this area, as many are 

threatening to do. Do not let the powerful oil indust!)' continue tn push their 

agenda at the expense of our country's welfare. 

The wind energy production tax credit PTC drives billions of dollars in private 

investment in homegrown American wind power each year. It also increases the 

amount of power that our country gets from clean. homegrown. affordable 

resources and is an excellent thillg for us to do as we move into the 21 " 

century and end oil dependency. Every time l. and many other Americans, see 

a wind turbine we feel confident that we are moving in the rigbt direction to 

solve our ene.rgy problems. 

I urge the committee to take up an extension of the wind energy production tax 

credit right away. 
374 

Statement of Carol Frigault 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.304

Carol A Frigault 

129 B~lo\,' Rd 

Richfiel(] Springs, NY 13<139 

Carol!« ll earomei ~urapce.;;om 

315·1I58-Q549 

United SUlIe, Commille-eim Ways & Means 

Distinguished members: 

I ~m writing 10 YOll lo!lay 10 cxprl'S~ my slronl: oppllsitilln to the extension of the 

prQ<luetion tax er ... dit aod th ... im't!Stl1.lent taX credit for r ... newablc enerJ~y, namely wind 

energy. This industry has tuken the tax dollars of hard working Am~ricun ' and producoo 

no meaningful energy benefit. This failc(] tcrhnology Ims beCli promote(] by wind 

industry lobbyists, forthe benefit orhu\?" eorpoT1\te profits. at the c..~pc se of ordinary 

people and the en"ironment. 

In Ill)' town, a wind deveiOp"r proposed an 18 MW project with a substation. Thecost of 

the project was estimated at S40,O(JO,OOO. Our overoge wind speed is arollnd 12.6 

olileiilllOur, which barel), makes it :l viable site. When we caiculute the average wind 

speed and a 25% utili:altion fate of the turbine, the projcrt would produce-roughly 

$801l,{)()(llyr_ in ekelrkit)'. So befOre any expenscs, based on a generous 2S lif" 

exptttanc), of the turbines it will gen~mte $20,000.000 in revenue. No busim:ss would 

do this! This i~ not II new industry. they have bo:cn taking our ~ doHurs tor 30 years. and 

what do wt have to show' for it? There are over 30,000 wind turbines in America and 

th~ do not produce even 1% of our energy needs. \IIin(] is intenni!lent, and by its very 

nature CllOnO! be II reliable form of ellerg)'. 

Please stop the fundingofthis destructive industry. Wind cnerJ!.y development is ruining 

some of the most pristine dwindling eO\ ironm~'1l15: it destroys migrmory birds, and bats. 

There are ~omc awful health ..-ITeets on llle pc<lpk Ih:u arc IOTced 10 liw ncar lhe~ 

turbines, and it deen.'asl'S the propl!rl)' valu~5 of hard working Americans thaI arc 

unfortunate enough to have turbim.'s pbced ncar the;r homes. By sending our tax dollars 

to forei gn companies it is destroying our economy, and deterring renl job growth for 

Aml.'!"icans with viable in(]ustry. S 14 billion laSt year alone was given to ,hem I';a the 

production ta)( credi1. the more recenl investmenlta~ credit, and olher tax and regulatory 

provisions. as well tiS lo~n guarontees and outright grams. You nct:d 10 be more fiscally 

rcspol1siblc. 

We neoo 3 sustainable energy policy, but I urge you to allow the scicntific community to 

develop reliahle solutions. nOllobbyist. Pl ease be resp(lI)sihlc with our limited l3.~ donors 
375 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.305

and EN D Ihe Pnxluclion Tal( Cn,:dil.lhe In veslmcm Tax Credil, and 3ny a ther I'edcral 

support of in duSI ria! wind Cl]Crgy. 

Sin~·crcly. 

Caml Frigaull 
376 

Statement of Carol Keck 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.306

April 24, 2012 

Ways and Means Committee 

Dear COlOminee Me!ll~rs: 

Rcgardln):: Hearing Op Cenatn F.)Ipiring Ta_~ Provisions 

i, Carol Kt'~k, U Iwri;ing Mom in Greensboro, NC, urge Cougress mcm~rs 10 reoew Ihe 

wind CnCf!?y production tax credit (PTC) as soon as possibk. 

Please do il right awny so Ihal eompauics and their employees will be.- abk 10 piau aud 

carry ou with 11wir busin~s. Do nOI wailunlilthe laSI minute, plt'3.e! We uero small 

businesses and we necd lhe jobs they ~alt'. Wiod cncrg,y plovid~s oolh. It also prol'ides 

energy n~essary 10 run our growing COUlltry. 

I urge you 10 suppan PTe so that the investment of billions of dollars will conlinue in 

American communitics. Think ofwbm the revenuc gencrllled from these businesses and 

employees mean \0 our communilies: increased funding for schools. hospilals. and 

infrnstrllClun.'to name a few. Besl of all. with wind energy we would be growing our 011'0 

energ.y - homegrowu energy for American people. 

Pl euse suppan wind industryl 

Sincerely. 

Carol K~'~k 

1607 Rl-d Forest Rd 

Grecnsbol"Q, NC 2H IIl 

(336) 558:-6305 

ckcck@lriad.rr.torn 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.307

Comments fo r the Record 

House Committee on Ways and Melius 

Subeominillee on Select Revenue Me1lSures 

Hearillg on Certain EXlliring Ta:\: Pro\'isions 

Thursday, April 26. :WI2, lO:{)O AM 

By Michael G. Bindncr 

Ctn(cr rQr Fiscal Equity 

Chairman Titx.'ri und Rankin)! Member Neal, thank you ror !he oplJl.'Munity to subm;ttilese 

~OmmtnlS for the reronilo the Iluusc Wa}s ,md Means Commiutt Subcommillce on SCk':l 

Rev,·nuc c~sun:s. 

Ooing nothing i~ a jlO$ible solutio/J 10 alrn051 ewry issue. especially expiring tax provis;olls. 

While this is possible.;( is n<)( likely, as CJ,h orth~'S'." provi~ions hllS adhcretJts. as teslimony, 

COmml'11ts submined for the rttoru and calls 10 slaIThavc likely dcmOnSlrJlcd. Iflh,' ttonomy is 

m!)re robust in December than CUm."!I! r!)reca,ts sugg,-'Sl, (h"1l: is nlways (hc possibility (1i,1I th~'SC 

pr.wi,;on~ will beallo",~d to expire by th~ J'residcllI with nil otha l~mporary Ut~ prQvi~;on> if 

lhe I·!our.c mnj!)ritypnwC5 intfllns;genl!)n negotiations to iner .... lsc revenue. Indeed. thc hinl thnt 

he might do so may be the "tmngc,( impeul. to c<>mrromi,c, ~s "~ahhfer citi7cn~ halc much 

more to lo~ rroln lellil1l> the Clill!on er:ltU)1IllICS concern than the a,'erngc la ~payer. 

Congress and the Admioislr:ltion rould do th~ minimum required. Sadly, Ihis is the mos( likely 

.scellono giYen the stale ofthc nationai lX'onomy. Th~ most likely WD)' is (0 dclllY 3ction until 

~lkr lh~ C1Celion nnd, as a package, extend the d.:'bt limll lhrough December 2UI) in eXCh.lnge 

ror e~tcndingthe c~piriog incam~. payroll. unemploymen( and medical p;!),mcn( provision, ror 

an equal perioo Mlimc. including ~'Xt~ndinllthe lcmporW)' lllX provisions "'hil£! ACCepl)l1)!; lhe 

Icmporary pain orane year ofse"lu~'Sltmion. 

A slightly more mnbilious nnioll of this SCClh'riO. which lcuves le.'>ll lo cho c~ as Iilr ns lhe 

Impnd of the ,·Ie~tio n (as a lame duck President has nO inlerest in any rompromlse at a\l) is (0 

""lend the d~b( limit. do" fix suspen'ioll, lempi)f3/)' e:..pirinl:\ Ill.' cut~. Ihe pa}'Toll (as cut, 

eJllen,u,d unemploymcnl and lax MItes fot middle clasS 300 wcahhy 1!lJCf"'1""" lhruul',h Occemb.!r 

2UI) in cxchang,· for malin" ,,,,rtain lax cuts r"r Imler income Americans pcnnancnt, in~l "d;nl> 

the 10% tax role and c.'pand(od Child T3 ~ ('fi.odit- olT.iClling some or all oflhe spending culS Ihal 

h~w already been aw~..,d 10. This allows discourse Ofll"-\ reroml wilhou( holdIng our mOSI 

vulnernble cil;~ens hOSlal>e. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.308

Should the l'resid~nt indicate that he is likely to let Widlock rul~ Ihed~y, a medium.".11 solution 

is more likely. OpfI"sitionto a balann-d wlntion will t."V3pQratc should he hint he will acc..", 

3l1tonlllic Ia.~ CutS increa'f"li. a> major Rl'jlubli~an donors tell th~ir m~lnlJers to ("<Impmlllisc-. 1Me 

b3lnnCi:d whniun;5 SOllie ~"()l1lbin"tion ofthetulS and ta~ refonns ~uppunro by the mojorilY of 

Ihe Fiscal Commi~siOll. ai51'> lnowo as 1.l0wles·Simp!>(ln. Bnd thepnlposals of the Bip,misal1 

Policy C"enll"1". ~I>n knOwn as Ri vlin·\)omenki. Many ofth~e propilS:lls ar~ ,imilllJ" and "here 

they coincide ~m~ likea fruitful place Ifl start drafting legislution. Using th~ tlln~~illl\.(I1 

budget pl"ll<:f1S \(l begin enacting tllesc provision, could occur in n:gularordcr. willl Ill,' 

OI'jl;lMmem Ilfth~ T!\.'fl.~ury playing ~ suppiln;ng "M in wriling laX reform language. Under 

such D sccnllfio. mA.ny I:.~piring Ill.( provisions could Iilil. hut this is less likely II ithout rndicol 

chungc. 

The large ball g.1m(· would be 10 actuaJly bal:Ulcc the budgel and enacl r4dical reform in 

""titlem<'1lt r"'Vl'1lue and p ... udi"g provision,. 8 shill from in"'\)ln~ lases fo, nUl>! fliers to 

consu!I1pl;OO taJ<CS aod higher lax rates on those most abilily to pay. 1"h~ Center f()r Fiscul 

Equity pm~ n larg~ ~1I solution with fOI" nlajo, provi~;o,,~: 

A Valuc Added Tax (VAT) Il> fund dome.lic mililllry 5JlCnding and dOln~.lic 

.li5creliqllarysp""ding with a rdt~ bclw CI) 10% and 130/0, "hieh mah'S sure '~ry 

Ameri~rul pays something 

Personal income surta.xcs on joint and ,,;<lowed fliers with net annuul incomes of 

SlIKJ.{)W and single lilel"li earningSSO,OOO per y~arlo fund net interest paymenb. debt 

retirement ~nd uvc!'Was and slralCgic military 'pcnding and <lthcr intcmalion"1 spcnding. 

wllh /.Irnduatcd r.Udi betw"en 5% and 15% in eilh~"1" 5% Or I fl% inc",menlS. Heirs would 

al.o pay taxes l'n dislributions from estates. bllt not thc ass.:ts Ihemselves. with 

distrib\ltio,,~ froln salt'S to a qualifiL-d ESOP cuntinuing to be c~cml)t. 

employee Contrihutions III Old Ago: und SUr.'iv,-,n; ln~umncc (OAS1) wilh a lower income 

cap. which alllms for low .... fli'yme"ll"vel; 10 weahhi .... re1irt'e$ withoul nl3king Il<-nd 

)l'lin~~ mon: Il'ogrcssive. 

A VA T.li!.:e Nel I.\l.lSincss Receipls Ta;< (NUMT). which iii' essenlially a Sublr:lction VAT 

wilh addilional ta,>; e,!!,,ndilurcs fQl" family support. b~alth cme and Ih" private ddi"ery 

of I.'OW"""c!llal service$. 10 lund enlillemCl't ~pc,)(ting and replace income tax filing for 

tHost P<'QPk (including proplc ",ho fik without paying). the corporale in~"Qmc t.~~. 

bl.lSin<'SS tax filingthrouJ.!l1 individual iocome taxes and the clnp!oyerCl.}1ltribUlion 10 

OASI. aJi payroll ta~es for hospital ins unl!lcc. disability ill.5l1r.mcc, uoemplO)'lllcnl 

insornn,..., and iUrV;VOI"S under H!;C 60. 

Under Ihis :scmario. many temPQT'~ry ta;< provisi<lll5 would no longer\!<: ne~ded. ~ince Ihe nature 

oflhe lax code would challgc_ Wilh Ihe ~pilat io n Oflh~ co'porme incomc la.x. provisions 

Wrulling c.'Iccpliqn)' to il would notlong ..... be neces~y and would ~Iick Ollt like a son: thumb 

... h~~, 311ach~-d 10 any kind of con sump lion Ia.\ covering both "ages and profilS_ Likcwil;:e, lhe 

ilt~ome una~ we propose will have f",,·, if auy, deduct;..,n$. RlIdi.;al reform is the SUlnl wa y 10 

over~ome resistance 10 allowing I:v.. c}.lenders h) [X"l1n(lT)cnll y I:.,p;"'. 

"han~ you fl'r rhe opponllnityto addrhs the commiu~"C . We are, "r..,,,ur,,, .. , availabl e tOr direct 

le!itimony Or 10 answer question~ by members and SlBlT 
379 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.309

Contact Shect 

Michael Bindncr 

Cenler for Fiscal Equity 

4 Cnm~rbury Square, Suil~ 302 

Alc~andri~, Virginia 22304 

.571_334_R771 

\<4!",p!l!Wtl~rnlI)O 0<' 

Commill«> on Ways and e~ .~ 

SubCllmmitl.'t' on Sd~~ t R~,enuf M~lI urcs 

IIl'Nring 011 C~ rl:lio EJpiring T M,l Pro\'isiuns 

ThursdMY. April 26, 201 2, 10:00 AM 

Al15ubmissiun~ nlUSI include n list of nil diL,llS, p.:rs;uns ~ndlor org:lI1izulion ~ on wh!>Se behalf 

Ihe wilnt;;~ appears: 

This leslinl(lOY is not ubmiucd on bo:halfof al\y cli~nl, ~rs\lll or urg~nil.alion olh~r th nn tht 

Center ilWIt", ,.hich is so far unfunded by an)' .:l,}'l3lions, 
380 

Statement of Chad Glinsky 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.310

To whom It m~y <once'n; 

I. Chad Gt,n.~y. am a ,,,cem i!, ad "at ~ wilh • Master of 5clenCi!' in chanica l [og",,,,,,inK 

(MSME). and I '''Be Con" •• , 10 t<!end Ine wind ene'gv pfod~ctlQn t.a~ credll (PTC). Upon complttin, my 

MSME deg,ee ln Decembe . 2011. Illave ,esided in Colorado and ",.,eMd for employment Wilhin Ihe 

wind ene ,BY indUSlr)'. TIlf: are . i u.roundins Bouider, Colorado is conli<!erl!'d • capita l of wind ene,gy 

e ng;nee r;n&. due »Only to Ihe "'alional Wind TechnoloKY c"nler lI<!inK IOC"led just 10 the .outll. Thi, 

. rn " wlle,e I ha.e oc~,ed my lob , urch efforts. 

MV ac.demit hlstof'! indudes 1I •• du.ting V.lediclori. n of my high schooJ. gr. du'ling numll<!. two 

In mv undergraduate cI . .. in M...,hMlcal Enlineering at Michigan State Un .... ef!;ity, only behind a 

gentlt man wit h ; perfect 4.0 GPA. liSliy. I g'lOduated wilh. 3.95 GPA lor my MSME deS.ee with thesis 

re.earch conducted on a n advanud d.ivetrl ln de';gn fo, wino turbine" AddiUonally, I hI ve a ve, a I"'ar 

a nd I h.1t 01 e ngineering Indu.lf)' upe,len<e mh<ed in with my academic hluof)'. plu. a round two yu," 

01 a ... luant<hlp wor~ In t he 3"demlo industry. 

GNen mv academic h~tory. wilh foeu, on wind e"",BY engineering, combined wllh my Colorade 

re,ide ncy and lob .earch foeus¥d on key pl.,.." s in Ine wind ene'!V indu' tf)'. One might pre.ume I. nding. 

joll would be a Quic .nd ,Imple la,k. Unfo rtunate ty, I have found ilIa II<! quite Ine contrary., I am ' till 

jobl"" , ~nd Ilarlely attrlbu le In;, to the PTC unc la in ~. 10 a pe,lod of lou. and a hal! month" I 

had i S!rlile inlerview which ! expeCI to re ceive .. reSpOn", Irnm lhis week. Initud 01 hiring, Or e~n 

malnta",lng Iheir cu,,~nt w{lfHorce. ""me companle. a'e planning layoft.. I av~ relt the damaginS 

elfects of lhe loommg PTC expiration fl,,! hand. I u'ge Cong,e .. to e~\ ~d the PTC to secure jobs and 

.usI. in wi nd enerilY g.owth In our country. 

Slnre.ely, 

Chad Glin.ky 

1517) 931>'Il992 

ll lin sK'I'"-@m$u.edu 
381 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.311

CHAPARRAL STEVEDORING CO. O f T f.XAS, INC. 

1111 r .... , t...,p. So;,. ~~ J 

lI o."on. n ... noz~ 

Ap.iI23, 201! 

To: Ways and M'~dll~ ommitt~.., 

Via Email: W3\5<llldlllCJlIuub.n;.si."rlitnmil hi:lu~M'>V 

Ph, I7 J167~610U 

F .. , I? JI~Ho..U 

h~parral SlcvcdoriogofTexas. Inc ., ~ kadilli: Slevcdure and Icnniu:d handle. based in 1101.1510n, 

Texas urgn Congress 10 eXlend Ihe wind cner~' produclion lax c""';il (pre) as quickly as 

possible. 

Our company di)Charg~ "e~l~ in UI~ Pons ofl louslon and i"lcaulnl)nt canying <on!p!)n~nt~ for 

Ih.· wind ~nergy indu~hy and Ihi~:otti"ityl:(l ntribulesa~ignHi~,'nl p<,"ion of our blL~in~"S'J. w~ 

employ lon~hlll'<:mt'l\. Icmlim.1 dr;\·cn;. uuck drivers and OIher essenli:.1 perronnd 10 handle Ih ;s 

~",u ipm"ol movi,1.!! I',rough Ih)llslQtI. '[he loss oflhis bu~incss will ~ignilk"ullycrr''''l '.lUr 

bollQn! linc and hirin£ "ITons. 

WiU, the uncenainl) Mlhe PTC's fu.un::. W~ IIndcrstund from huyer.l and s<.'llen; bo.h .hal Ihe)' an.' 

"ulTeml)' w;ndingdown prod uction ~nd insl~l1mi<m nfnev. uni.s and!W mli=tlng effnrt.~ ta 

Qth~rCQ"nlries. Thi~ ..... ill ,,-'S lt in U'" IQ~, "r.he bu~iness rQr uS and ev~n should .he I'T(' be 

extended bt<'r Ihi, year or nClCI. ne ..... production could nOI b<'llin for ,"ver a yt."Jr ort"i J!. u~ to lay 

oiTtr:lin<'() "'llrloy~'OS alld sIan again w;lh n~w trJinct.'s if(when productiull resumes. 

We strongly ur~e thi. commi([~e If) imnlediatc1) la~e up an ~'tet\sio!l orll \~ wind ~nerl\Y 

production lax credit. 

Sincen::ly. 

ChopamJl St""~dl1Ting Co. Of e~ns III ~. 

Irby J. Oanqucr 

Pre.idem 

U!lI 
382 

Statement of Charlene Jordan 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.312

Cha.rlcnc Jorda n 3626 Com, .. Roo.!, Ma<lj"m. NY lJ401 

jord>njr64 m~n.~o", 

31~-893-7M4 

TO: U.S.! IOllsc Sut>c-tlmmiuee 00 Sd",,1 R,, ~en ue Mcasul"t-"S 

fROM: Charlen~ Jordan 

TITLE OF HEARING: Iknri'lg on Certain Espiring T~x Provisinns 

Ma~' 9.1011 

!'I~~ save our land. CO"lt"""ilics. ami our cnvironmem. SlOp ("dentlly surponi"g indu.'trial 

wind C~l~rgy wilh OU r la~ dolla~. For d'.""i::l,k"i WC' h3v~ poured billions of dull~~ 11110 induSlrial 

wind energy, yel we hnve seen no rewn! on 01" invc:<!1ucnl>, either cnvimnm~nUlI or financi~1. 

IndUSlrial wind turbine fanns have done nuthing morc lhan devalue our properti,.,.. Ik'SlTOY uur 

communities. ,md d"wade uur land. Many flh~ major wind c'nCTg)' fanns are owned and buill 

by comf'ani"" thilt arc h."\.~d nUtS ide of the United StmC!;. TIleSI' ~omp;Ulics h~vc no regard tor 

our h",d or our way of life. ('ominUl..-d 5Url"'" oflh,-"" induslrial wind turhi"" I:~nn. is uot 

conducive 10 our long-tenn go~ls 3.'! Am~Tic'lln cili;tens. TheSl' turbin~s are driving uS OUI of our 

humes and communities. 

f'rot ~ll h~ AmcritTIro cilizens llJ1d Our properly, ~nd $u pporl Mlhe wmd enc~ induSlf)', SItlp Ih~ 

Production Ta);. Credil. Ille jnVC"slmcnl T,\);. Crl-uil. alld all olher r<-dcral ~upporl urind um ial 

wind energy. 

Charlene Jord,ln 
383 

Statement of Charles Newell 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.313

MAY 10.2012 

RE: HEARING ON CBRTAIN EXI'I RING TAX PROVISIONS 

I AMTOTALJ.Y OPI'OSEDTQ ANY PHASE OOWN OR EXTENSION OP THB 

PRODUCTION TAX CREDIT FOR THE WIND INOUSTRY. 

OUR GOVERNMl:'NTCANNOT "FFORDTO CONTINUALLY WASlE 

BILLIONS OF OUR TAXPAYER'S MONEY WITII AN INEFFICIENT AND 

UNECONOMICAL SOURCE OF ENERGY AS WIND. 

I AM APPALLED TIIAT CONGRESS. INTI IE PAST. CONTINUED TO PROVIDE 

ENORMOUS SUBSIQ!ES TO LARGE WEALTHY WIND COMPANIES TIIAT 

PROVIDE It VERY LOW QUAI)'ry PRODUCT AT A HIG H COSTTluH 

CRBATES ADVERSB ENVIRONMENTAL, ECOLOGICAL, SCENIC. PROPERTY 

VALUE AND QUALITY OP LIFE IMPACTS. THE WIND COMPANY'S PATHETIC 

PERFORMANCE AS MEASURED AGAINST OTIIER ENERGY INDUSTRIES IS 

DOCUMENTED. ELIMINATION OF TI IESE SUBSIDIES IS MUCII NEEDED AS 

HilS CO UNTRY'S DEBT CONllNUES OUT OF CONTROL. 

PLEASE STOP nlESE UNREASONABLE SUBSIDIES TOTlIE WIND 

COMPANIES, 

THANK YOU. 

NAM E: CHARLES NEWELL 

ADDRI::$S; 201 I GRAFFENBUR(j ROAD 

SAUQUOIT.N.Y. 13456 

PHONE: 3J5·73H963 

E.-MA IL: GONEsrOL NG 8(a OA IJR ~~&. .COM 
384 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.314

Wrillen Commr nls fo r Ihe Retord: IIr aring on Cerlail1 E~pirin g Tax Provisions 

ou~c Ways ~nd Means Subcommitll'l:: on Sckt:lRcvcnue Measures 

Aprl126, 2012 

M~ 7,101 2 

COmlllcntss ubmiued by: Jaime l yle McAlpine. P. E. 

PI\.'S id~IH CEO 

Chemlnc Energy Corporation 

mculpinejJifl c.hc ml ~neO!y c(]m 

l)ear Mr. Chalml30 aod Committ<-'l:: Mctnlkrs, 

Chemlal' Energy Corporatioo, lwadquartered in Edmond. OK, hus 3,000 MW ofwiod 

developmeot (in Ok!uhoma. Kansas, Te.xas. amI New Me~i c.o ) CQlltiuuing 10 progress 

100\"Iud constructioll. Ilowevtr. there arc 3 101 of eompollellts to mesh tOgether ill the 

cightccll mOlllh, millimllm for ~ wind Illnn h i be put imo pmduclion. Nm knowiug iflhero 

wHi be a Federal PTe c>;len,iO!l has red uc...'d our dewlopment expenditures signilicantly 

this year and going forwHrtl, nlong with the opponllllity for our sm311 Nati ve Amcricilll 

owned businl'SS to have furthcr success in Ille wiud energy scc\nr like we 113\'1.' since 1005 

(364 MW of pmducing" ind famlS in Oklahoma ). 

lhc F(.'Ol'r.lt PTe is the single mOSI important fmuneia! inccntive for <kvclopmel1L and 

prooucliOl1 or,dnd em::rgy today. The PTe is not a t~ ~ give awa) , \Ie, as ,"ell (IS other 

wind owner/operators cam the credit by invesling hundreds of millions of dollnrs 10 mnke 

~n ... rgy oul of U.S. wind tl1nt tllkes ovcr 10 ycars In reach Mum 011 inwstmenl hili can 

laSI perpetually bccallSC Oflhl' infrm;trllClurc in place. Landowners. schools and pur kids. 

llS well county governments, 311 will $CC financial benefits from Ihe Federal PTe 

~L\:n ion. U.S. high t~'Ch manuracluringjobs and service indusI!)' j obs in wind \,·ill bI.' 

lo~1 and uthers riskl-d "ithout Ih.: PTC ext~nsion . 

I K.>ked fur your suppon 3nd VOle for HR 3307 or olher legislution 1hm will 'lllow for the 

l'cdcrnl PTe eXlension which in 1um will cau5C continued growlh in manufncturingjobs, 

odditionnl energy rcsourf.:es tor Nnlinnal Sl'l::Urit)': moncy tOf oo s. count)' 

g:ovcmmcnls nnd hmdowllcrs. I a~k Ihat you slippon nnd VOle for a ed I'TC e..~tc n~ion lo r 

our kids and our Nalion. 

Again, thank you tor this opponunity to sp(."ak Out Onthi ... import~nt i~sue fUr AJJ1eric~. 

Ch~'m/Qc En"rg}' C()rp<lrOliOlI 

(405) 34 I -]506 • F3 ~ (40S) 341-3566 • 2909 NW I 56'k Slreet • 1'.0. Uox 5446 • 

rdmond. Oklahomu 73083-5446 
385 

Statement of Chris McFarland 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.315

I. CMII M<Fa~.f'Id, • M.o:n.nicel En!;lineer in Louis"iDe, ColoraOc> ",. pedfuHy "'gil Coogte$~ to "xlend tl>e 

wln(j energy production ",x cr""~ (PTe) as quickly •• po.siIIlfI_ 

The PTC doive$ b<tlions of dot"''' in priv.Ie .,_I_nl In ""meg"""" American wlftd powet ud! yur 

h~.' " "n tl>f winO indu.1Iy In my .tate r~ila~e Ihe community - erea<~ hur!d' ~dl (if nOllhC ..... ndsj of 

bOIII construction & leeMical 101),. aM creolA "~.i1iv8 11'I1j)3C1 10r Our stale "lid ""I ~mrnunity Intleulng 

Ille amount 01 power lh'I Our counlly gew from clean. hOl1>!lgrown . • ffordable ruollrCe1 f$ tho! way 10 ' flOw 

lhe workI ihat ttle USA is ~ &t>out cli""'te Change aM ImplCl we have On tI\e M"lfO<'ment _ &nd th~ 

II> credit pro."," .n in<;enliw: 10< the wind ;"d.a!ly to oontinue to "" juSl tf>81 

1 urge 111. C<>mfT'lIee 10 lake up an •• um.lon of th. wond energy pr<>ducbon !.o. ",e~~ r~M :;.w.Y. 

Yol", Sirocerety, 
386 

Statement of Chris McKee 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.316

Cengren, 

I, (nrls McKee, an HIS S~ci.hst In Aunln, Te~as, respectfully uriI' Cengre .. tel eXtend the wind e nergy 

production tal credit (PTC) 's Quic kly 3$ po~.jbl e. 

I gr du.!ed Irom Ih~ Uni~"itv oj f ... , al Austin in OecemDer of 2010 "" SIlent almost. year looking 

for werk. fln3l1y, .ller I V".r el nenstep ,earchlng, Mil. ubi,hi Pewer SVSlem. America, offered me a 

po,IUon in IMir Wind Turb ine Oep."menl a' an EH~5p"cl.II". Had il not De en for Ihe boom In the 

Wind Indu~t.-y Ih.I .... ~ 1~le ed by Ihe PTe I would :lUll bt looking for. iob i..slud of ,Iartina my ,"ree r 

In the WIM Indun.-y. New the InduSl.-y in which I have dle,en 10 ,Ia" my c.reer I, beins Ih.eate",,,' willi 

Ihe ~p;".t ron 01 (Ill' PTe. The PTe drive! blll;o.,! 01 doll.r' In p.lvate irwl'!lment m homegrown American 

wind power each ye ••. Inqe •• ins I~ amount of power Ihal ou' coulll.-y l eu from clean, ~OmeirOWn, 

allo,d.ble re"""ree, I, an ('" ellenl thing for '15 10 do "" Ihi, Ia. credit provide, an incelll;ve lor Ihe 

wlnd Tndu51.-y Ie c""linu~ 10 do jun thaI. Wh~n compa,~d te Ihe help Ihe 011 OM go. 'Munty ,eceive" 

the PTC I, minus,ult. Why nOi ,,>!end ttle PTe and allow n clean form 01 ~e'IY whl,1l provlde5 11oous-ndl 

01 di,ut jol), and hund,e d5 of theus. nd, of 1""I,ect job, Ie I,ewand benefit our country? 

01 <OU"t, Ihe ceunt.-y .... ed' 10 ,educe its defICit, bUI • faC! of the maUl" i, there are .,ea. wilhln Ihe 

government . nd olhe' induSI,'e' Ih~1 could m~h d"" wilh . 101 ies. than they ' re cu"entl~ ",celYlng. 

The Wind Indunry 1, a promi,inl new pl;tyer in our counuie. ene,~y in~up IhOi need. 10 be rultwaled 

and WPf>OMed by ou r country In order 10 yiekl iI. full pol~ntjal. The,efo,,,. cuWng 11 <IOwn when 111, 

beginninlllO Iiourish does not make SenSe. 

fer Ihe ... '" a5On" and many othe .. , I u'ge Ihe ce"',",!!ee 10 lokI' up an ellen,ion olthe w,nd en~rgy 

p'odl>Cticn la. c",dil ,jght away, 
387 

Statement of Christian Billson 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.317

I. CnriSli." Ilill",n. respecrfully ur!,,,, Con!:",,, ro eX1cnd rhe wind energy producr",,, lax c .. diIIPTC) 

as qui"kly "" po.,il>lc. 

The PTe driWli billion. of doll ..... in l"i'lIlC im'eslmenr in oom~gmwn Amori"",, "ind puwer ~""h year. 

I h~vr ~n lh~ wind flll11)5 in California 'ni~~li~c l<xal commun;li(1O _ brinlling in CQllSlfUc1i<.njobs al 

fir.>l. and m.lnl"""IIC~jQb!; in II\.> I",,~ rerm. and g~nemlin.c "'VOIIU~ ro' ourrnmmulliry. <iChool$ and 

ImspilOl' ,I\'I/T the lif~limc "r(he projl't:r. In" ..... ~sinillhe aIHounr pfpu' .... 'flhul purc,)umry I!-CU 

from de,uI. hmnegrow". Btliml.blc "''''JU=S is a" ~xcclk"'llh;ng for us 10 do - ""d Illi, 1ll~ credil 

pro"ide'S M inc"mi"e fur the ,,;nd i,ldu,lty lu continue tQ do jU5\ 'hal_ 

I urj,'" lhc c,m,min..., 10 r3ke up an ""Iension "flhewinJ en .... !;)' pmJuc,ion I~~ credil riJ;hr 'WKy. 

h'[~i"n OII1SQn 

J95:! IX",wood Aw. 

Los AI .. n;I"" ('A 'KI710 
388 

Statement of Christopher Whelpton 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.318

I, ChristO(Jh~rWhflpro"'film dl"aor, in Crystol Rlw:r, FloridO, ftspect/ully urge COfIyreS.IO l xtend the 

wind tner~y I>rodunll>n tl>~ CIedlt (pUj 1>5 quickly o'lHI5lible, 

Th~ PTC df;V~' bWlon. a/ dollar.; I" private in .... "ment ill homegrown Ame,ko" wl"d />Owe, toeh V<'or. 

Increasing the amount of power thai our ",,,or,,, gets/rpm <lep", hOmegrow", affordable t.o~r<:es is 

on futllent tiling for u. to do -and mi. to.< crfdlt provide. a" In,,.,,tillf' fO! tilt! wind industry to canti""" 

10 do ju., !hot- II i. a morlct'l driw:n solution /0 "curing our enefg~ needs In IhejuhJrt! while f1! duVI.'!1 o~' 

defM:ndenu ""/O<eign oil rt!.e", ... thor mo .. e our country beholden to reg;"n. (ho/ "'-' not .up/>Ort 

Our 'nlertSIS. 

I urge (he rommrtlet to toke up on e~ltn5'on o/the w'/ld energy production to~ CItdlt rfgM "w'W· 
389 

Statement of Cielo Wind Services, Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.319

M.y 10,2012 

De.r W.ys Md ~f3ns Commiltee, 

I. L3C~ 11~maM, P,oject M~nase, and Attorney .... ith (iele Wind Se"' ce~. Inc., "'~l"'ctfuH'I urge 

Congress to U lend the ~d energy ~reductio"Ta. C,edit IPTq Immediately_ 

Congr .. ",· d~lav In ~xtending the production In c~it create, a deva'tating ripI'll fIfe" througheut th~ 

entire wind energy indu,ltV. The uncertainl'j '" the financial marketplace ca use' proiect financie rs and 

inv .. tors to become .eluct.mt to bock develepmellf. When projecllinancin~ dde. ~p. turb,ne .uppliers 

,e ~pcnd b)o limiting the supply chain. With"" financial Mck;"S o. tu,blne< to build prejNU, deveiopml'nt 

corne. to a hall. As a ~IWt. .... ind compa"lel and m.fluf.Clu.e.S "'e lo.ced to lav off lhei. wc.klcrce. 

elleclll1l millions of 13milie, a,.o" the United Stale,. In faci. the """erlean Wind Ene.sv A"oclatlon 

eSlimate. th.l. full 37.000 Ame.ican. face ~voff, thi, Vtit. if the PTC is nct t .ttndtd Immediately (," 

htl:4>:/lwww_.wu.o.glne .... "ccmfprewele.SflfRelease_ 02·06-11-<lm)_ 

II is al.c ImP'l',"tilre 10' (ons"''' to undef$tand that .... 'nd en.rav d~v~lapm~nt plavs a vital ,ale In 

",,,italllin8 ~e.ecanomi s 01 .ura! communities. Wind developme nt provides construction jobllnltlallv 

lollowed bV maintenance job. In th e lon, term. Wind d~~lopmenl 3150 ,ener.te. r1'V1'n,,,,- for 

community «1>001. and hospital. o~, th. lifetime of the proiecL In addition to iobc.e~l ion .nd local 

e<OnomOC stimulus. Wind ener&,! development inc.e a5eSlhe amcunt 1'1 ene'IY IMI Our country gets 

from ,enew.bl~ resource ...... hlch i!i imporl anlto our energy indep nd~nce •• a n3ton. 

I "'Be th e committee te lake up an ext enslcn 1'1 the wind ~ergy P.oducticn Ta. C •• dil right .way. Not 

only do thousands 01 AmerlC3n job. hanlln the balance. bul the ove .. 11 goo l af en ... ,v independ.rote 

remain. at stake. 

Since rely. 

l.lc~ Tiemann. JO 

P.oject M3n.g~ 

(lelo Wind "'ire<. Inc_ 

813 ConB'." Suite!;OO 

Aunjn. Teo., 18101 

512.440.0305 phone 

512.440.0117 Fa. 

~ipm.nn(!ilcj ell>wi nd C9m 

Plnse view cu r w"tb.lte www.c!e lowind.wm 
390 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.320

05/03/12 

AS ~ be<;uli.,.OI,e<;lor 01 (I ... 4 Wir>dS& Rene ... bln b .. O'd In Amarl~o, Ie."., I " 'ie C""I!' ~" lg '''PllOrI, 

In~ @.te"'ionoftheron.wableenerllYproduction t •• <'~dl t (prC) • • part Of '''1 Ux 1>111 th.t m~ fOrward thl. 

qu.ner. The PTC I. me prlma"1'/ fe-d ... " policy thot " driving the B"'Wlh of tle.n, afford.ble. hom",,,,wn 

An, ... lcan w,nd powe'. but w"h an "nCOfU)n policy lut""" b ... in ...... Ii~e mine and voflo". elM .. in le •••• r. 

I,cing 01,. <on'e<!u.""~._ 

.... . n"" ' profil " ade coa lilion ..",kinl to , dvoale on "oI'h.11 01 the wind .""'IV Industry. UW repr •• en" 

'ornp.ni ~ that emplO\' hund,e-d. of PI'Ople In IheT ~, ~.n~.nd"'. We'l e", Okl.h"", •• nd E."e", /lJew 

MUico. Ou, mem"ol',.h,p ;ndude.; contracto,. WhO <on,<ruet wind I.,m. and t'.n.mi»icn inf,.,t,uctu,.; 

m.",,'ocI"'." and .uppjl." who a,e ,Iready ,eeing fewe' o,den t>e<au", of 1/,. u!\Certainty behind t:/1e HC 

bevond 201~ ; develope .. wha h."" "PI'poed plannlni until the PTe I, ,..""wed: .nd ,,,,a! comm"nl""" Who .'" 

;n d ... ""role ""ed of the boost Tn P'PPCflV ta .... enyc tht1 will lee a ,,,.ult of. wind f.cilily in their 

''''~II ..... <0<1,11. .... 

8etau.e oflhe PIC", 2010, jobl crUled "' the StiU,,- of fe ... tot.le~ bt.twe..n 8,000 . 9.000; ~nu.1 P'Ol>t"flV 

tn payment< by .. ind p,oje" owne .. lotalO'd SIlO million: n~ 'Mu.ll"a,. p.ymen t< 101'~ $30 million. 

ac<ordln, 10 Ih Ame,lca n Wln~ r"",gy lI,"o<i.tlon. Telll' I • • m'"U'.c!u,lng Inde' In the .. Ind .... 'iV Indu'try 

os • ,.",11 of II> I'owtlt over the put decade , leu, lIost, 'ouglll>/ 40 facilitie. Ihal c""eotJy m."ufoctu'~ 

<omponenu lor the wlnd one'8Y Indu'II"\', whic~ ".n'lat~ 10 mo,," th.n 1.000 m.nufactutlng lob. In tlte ,tat~ . 

WI!h t~ . c"IYent ,,1""tti .. 1 tf.o.ml .. lo" inlra,uucIU,," be,n! bUilt In T ..... lho .. numbers Ire bound to ~,e 

fUflhe., but onlv if!1Ie PK i. ,.newed bevond ~Ol~ . 

On an ;nd"lll'/cwlde .scale. the PTe ha. p'oven iln lf 10 b" an lfe< ~ 100110 keep .1o<I,1c11'/ ",lei low and 

rocoU"B~ development of p,,,,,,,n ,enew.ble ene,1IY p,ol""" (QYlppe<l wltlt lilt! PTe. lhe wjnd ene,lIY indu,,"! 

h .. contnbUI. d ;mpre!S~11 0 U.$. economic ""lapm ~l . $ince lOOS, e wind ;nduOII'/ h"'''''f'ed more 

tlt.n $60 billion of in¥l!stmenl. Tod.v. ove. 400 f.dUtie-. o-t,.,.. 43 Itate. manufacture lor Ih. wlm! ene'lv 

fnd ""I'/. US w,nd lurbln e mlnul,"o'ing h" g,own 12·lold -6mIo 01 I w,nd lorbl",,', vallH' ~ now lI'odooO'd 

he'e In II,ml!'l"lca, ",compared to 25" prior to lOOS. forther. com ~ave _ ,educed ove, 9Ol" ,Ina' 1980. 

'ecenlly d.i""n b, • • 0'8e In .ame-c.h" nFnI te<"nolog .... 1 ~d .. nc ••. With 1u ability ro Bo.,"ntee fi 'm ",ice. In 

long. m '''''trocu. wT~d enerlVna' ",duc.d .!focI"<", r3le 'isk lOr Amerlc,n rn>m ... and bo.iM ..... 'md 

prov;dO'd 35" of .tl w U.s, powe, c~p'dIV In Ihe last rou, V.,,,. 

To fO'I., Ihe growth 01 1/l1nou<ll"\' Ihal r. doln, I tremendous .mount to <on"II>\<IO to economic d. ".'apm.nt, 

,e!nvigora!e I~e Amen"", manufa""",,. _ IOf, and dr.e,,11y aU' ~Iectriciro,' ."pply, We " 'go",,"., 10 act q" c~", 

10 e'1end Ih ~ PTC. We .op'e<i~~. vou, ."ppor~ fa' An,,,,ica', wTnd ..,e'!'I ind". lry , 

Sincerely 

And,ow II;)) Swope 

E"e<ullv. Oire<tor, CI ... 4 Wind' & Renew.ble. 

'" i swopef!)cla..,""wil'l.lI.orl 

PO aox 121~8 

Amarillo. Tt)(a. 19101 
391 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.322

TO: Commltt'*'- on W~y",aod ~I ea s 

U.s HOkl$e of Represent:lUI't!!; 

Fl"<)m: Carl(ll V. Pineda 

Fo~nd<f I Prlnripal 

Cleai Planet E::n~rgy, LtC 

SIll Ma rket Street, 15'" Floor 

San Fraoejscu.o, 9 4104 

Oate: April 29.2(112 

lIearing on C"Main ExplringTax Pro~ ,ioJl> 

Dear Honor.lbl! Representatives: 

1, Carl .... V. Pin!!tla. Foutl .... 3n.1 Pntlcipal " Clear I~nnt Enel)lY. W: in San Fr.lnelse 

\I, all(o mi~. respectfully uIl'! Congres.5- \0 mflld th~ witld ~1lffXlI prOOurtion w croolt [1'1 

CJ OU" quickl, ill possible. 

As a pl"<)fe5~inn31 dedkate<l tn the energy ~e( or - both renewables t\IJ Nssil fuelsfi>ruvcr 14 ye~ ... , It is£ritiral t"extend the PTC immtl{lImcly. fdth .... U'3n waiL Energy pm; 

!.'t:tS have ... long I,,~d lime alld o~ed oUCYfl!rr~l nt y to go lorward, I!I~dJ()lh my compJny an 

d l1I~ny ol heD"wlli h~v~ no chole;;: but to ~~I ~nd "II d~Y .. lopment efforts. and with it bllllnflS 

of dnll a ... "flnb~ atl d ,nyestlllellt tn tills oritioal 3"d gr<>wing sector. 

While we ge~r up tu defend the Strait:< of Ii om,uz 3lhundrt!d. u(billions "" 4011 ...... 

of tilllpay~r CO!irs. is it nOI 5en~ible tQ cnntlnue tl> look (0 don,estir :oour(es of energy. ~uch 

as w1ntJ. IOlar • .rnd wwr.II [lH! W~ ort!d ",pply dlvtrsity. and ca nnot rei, !III all)' single e 

nergy 'iOufC"l.' n~~cure our ftllllre. Our 'nllltary it:l lr~ t$Ir Wat willi a r!.'t:ent 

an nOUIlc<>mcnt of 1I 17. billion pl"O<."l 'r~mMt frenewab ~ "netgy31I) :;esa OI"<)~S the n3t;on. 

J urg~ rheco",mil1et' to Idkeupa"..,;tenSlon urlhe pmduction Il1x cr~d;L 

Re-spertfully yours. 

CarlOl! V. PIneda 

Fnllndor , Princfpal CI~ar 

PI.1n~1 En~rgy, l.LC. 

+\-415-511·1341 

t'pinN\.;!@lclej!Q)L1nM!·tWrgymw 

'''I)<,.,r, 
392 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.323

!GOlilion lor 

Jill Cons1itutiOQ A\'en .. e.NW 

S uite bOO West 

WlI5hington.lI.C. 2000 1 

202-638-1950 

" -" ·,,-.Coafilio,,r(f...,115 .• )r~ 

F.m~i : inro(o' co "ilionr ...,85 .o~ 

STATEMENT OFTHE COALITION fOR [85 

SUBMITTED TO 

T HE COMI\'IITTEE ON WAYS AND I\IEANS, SUBCOMM ITTEE 

ON SELECT REVENUE MEASURES 

April:2IJ.1011 

0" beh~lr of the COALITION FOR E85. a bro.1d based group of retail !!,loolil1~ 51~lion>, 

p<:trolc"m markclt"f'S, and ,-Vmno] .dV"""31es, we w(luld like to lhar.\l< ~\)(J for the orroflunity \<) 

prm'idc conllncnls reJi.:lfding.tilc i"']><Irlanl ;5.'.1'''' "rlw< ... "lenders. We apprcrialc }Ilur Icad..TShip 

in IInder13~jnl! 10 rev; ... ,,' lhe value of cadI ('}f lhe I:};pir.ffi lUX credits to tnsure Iha! Ihey are 

pnlVidlng posit;>·c oulCntllC for the U.s. e.:onol11),. 

We would lih 10 bring to your ~nellljOIl !he Ahem:lli,'e Fuel 'Tas C",dit found Bt Intema) 

Revenue Code (Code) $i.ocli un 642b(d)(1). 'I"is =dil WaS initia lly ,"Stablished !() provide u 

financial inccHtive It' ",Lailm of ("(K)1prcssed natu ... ~1 gas, propane and hydrogen when lh...,;c 

pNiluCtS are u5<:d i\S :thromi"c InmsponuI;on fwls. Eighly·f,"~ Il4'rc~nl clhanol. (E85), is nOl 

;lIdud~d ;n Ihe ddiu;liollsQralluwa\:tic all,,","I;lIe I'.ds pursuonl 10 Ihiss","-"!;oll orlb~ CQ<l~. 

E85 i~ lhe natil)n'~ ml)~t widely bdopled aitemal;w fuel. It is deriwd from elhanol. but it is 

NOT a fuel addiliw Ijk~ EI O. In fat!. !h~ Energy r olicy ACIOf 1992 s(!<'Cif,cally defined 1'.85 !IS 

~Il pll"f!lPli.·c fuel ', bUI for PUrpl'!oCS "fthe Inl ~mal Rcw"ue Cod~. E8S dQ("li not quality for Ihe 

Altematiw Fuel Cn.""<lit (~liol1 t>426ld). This exclusion ell~urro Ihat t:he~ would be no inSlaI" e 

whffi elhanol would =eivc nonl the Vnlumt:1ric Ethanol E:wi.<;C Tax Cr.""<l;1 (VEETC) aLld Ihe 

Altcn,atil"e Fllcl Cr("\lil. 

Now IhM Ihe Volumelric Ethnnol TaA CNdil ha. expin:.:l with no cflorl being made U> n.·inS\llI~. 

we a,;k thai rou cOII~id, ... extfndins th~ A1t~m3ti, ~ 1'",,1 18:< Cn""<lil f<lund 91 ~ti"n tMl6(d)(2) 

and including 85% ethanol as an eliSibk fuel. 

Wilh sirong encournJ;CIIII'1II from se"<'rJI ,idminislrolions. m()re tb~n 2,500 retailers have 

i""cstcd millions of dollars ill ."Slablish;III! illfl"llSIMlun: 10 dispc!\!oC such fuel. Addiliomlll y, 

auto","kers G" nerol MOIo,,;, Ford, and Chrysler lire prodllcing 50% of"their Model Year 2011 

production as 1:85 e~iblc Fuel Vehicles. M,)re limn 9 million FfVs = ellrrenlly on Ihe 

nation'~ highwlIy, f()l=coting 97 . of the enlin: n»lional fleet "faIICT1l ali ~e fuel Vehicles. 
393 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.324

S!~ltll1en l 10 SU~Qmmine~ 

Apri126,lQ12 

Page Two 

Abs<em the shon.lerm pric~ break ,hal a ta.x C .... -dil provides, we believe lhat the !,SOO smtions 

equipped to sell E85 alld rmure cciluIO$ic bio·fuel will begin 10 di5appcll', hrading Ihe supply 

h~in in Ihe opPOSile directi<JII from "hal i~ n".:dell fOr this altemali .. " ruclto stand on ils oWn 

"ithout g(> "~mmcnt int(:F1Icnlion, 

Protecting the millions invCSted ill E8S infrustnlcturc - ond making the EnC!1lY I'olicy Act of 

1992 cOllsist,'nt wilh th~ IRe - req"ires Iwo steps, I'i,,;[, ~nd mO,1 imponMnl. the Code 

§6426(d)(1) n~C{i ~ to he nmended to in<:ludc E8S as 011 uilcmuti,c tilel, si mil~f to cOmpressed 

natural gas. prOpane, and hydrogen. Thi~ is not ne" wHey; il r<iluiNS allw!ldilll: ,II .. (;00£ so 

E~5 is considered on !!\tcr!1ali"c fu~! 3cwrdiug I" Nllh St3tuteS s..cond, til.: Allcn,ative fuel 

Credit needs to be ~)(Icnded. 

B:l5ed on 2011 (!H5 sales, I"""'" changes WQuid CO$I apprl,)~kllatcl y $5" million au!\u..lly, as 

oppclSed to the espin.'l1 VEETC ethanol subsidy, whieh WSI S6:1 billion annllally. In th~T 

I\'ords, /i.(lnlllile E85 llIX ere!!it can be a<crompHshcd lor leu than I pcr.:erll o r Ihe cOSt of tile 

cowe ethanol subsid y, ",hile ctlsw;ng Ihm tll'" ignifica1)1 iruraslruclU'" in~~ IJ1JCll\S NOlin"" 10 

be mad~ while pmteC1ing the smull oosinesses Ihm have mad~ ;m'eslmenlslo dJle. 

We are cOl:llilIDl1 lhat th~ Comm;lI,>e l:en<"f"~lI y l'rder.s to ()Iainlain a clean Ill" ~~l(1)(kr8 bOt 

·'CI~an" m~anin l> eilh~ r ('Xl~nd or don't ~xtend, wilh no changes to the 'cxL In this case. 

hu\~e"~r, you ",iii alr""dy "" !llllcoding ""':1;On 6426 to rcmO,c VEE'I C I~ubsccliu" b) and "e 

simply AS~ that ER5 be inclu<kd lit aoothcr part of6"26 j3l1iJs1.-ction d). 

A~ the Subco"""in..e on Select R~venuc M ... ure~ provides ",rol!1m~n UliOlls to the- I-Iou,;e 

'l and M"",,~ Ql "IIIil1~~, we ~'lC"urJge you 10 includin£ Ihe exl~n ion (If the Alternative 

PUC'I Tas Cn.-dit IUId lhe indu ion oft8S lL< H fOTIII ofaltcm3ti,'~ Imnsp<lnalion fuel. 

COALITION fOR e~5 

PhillipJ. Lmn ptrt 

E .. u'{;uli,'c Direclor 

573-63,,·g647 

plamrcn4'h:85fucl_"' 1: 

JclT,"ry Trine" 

I.cgislmi'·c CuunSl:1 

102-638·1950 

jtrincalii",'W COm 
394 

Statement of Colata Harlan 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.325

Please Extend Wind Energy Production Tax Credit (PTe) 

Name,: Colata Harlan 

Organization (if applicable). 

Address; 426 Poplar Avenue 

Phone Number: 405-354-3189 

Contact E-mail Address: hwinc@c:ox.net 

Title of Hearing;Hearing on Cerla!n Expiring Tax Provisions 

The wind industry Is creating new jobs and re\litalizing communities in Oklahoma - one 

of the windlesl states in the U.S. It is critical that the Ways and Means Committee to 

discuss extending the Wind Energy Produc:t~n Tax Credit (PTC) to keep this new 

economic engine running efficiently in our stale. 

Coal, nuclear power, even rlaturat gas are energy sources from the past that contribute 

to pollution and related health problems because of dirty water and air. The solution for 

our future is rerlewable energy sources l,ke wirld, but the ,ndustry needs a fax Incentive 

to grow and expand. 

Please consider the Wlrld Erlergy Productiorl Tall: Credil (PTC), Thank you, 
395 

Statement of Colleen Mertes 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.326

I. ColI~en M"'les. Ri!.k M.n3gemenl As-I.!>n!. Avon, MN '~sp""lIuIiV Yr8f CMI'e5S 10 e. teod the wind 

~n~'£y prodUCI\cln!.il' rreditlPTC) u qu c~IV II po«ibl<!,. 

My fimi/Y i nd I wOt.lld be id.e,~1v .Uec<ed If II is fIOl Ulended. The delay in nOI e.lending Ihe PTC 

make. no •• m.e In lhe currenl economy we ~ •• e. Why wouldn', Coo8'e .. Win,lo do 311 Ih., " w,I"," ii, 

PIIwe' 10 encouroge Ihe coo,inu'nl or job. and "eW conslruct.",,/wirld p,ojecu throughoul me cP"nlryl 

The PTC helps 11"1 b;lIico, of doll." from pn.",e COmo;lni .. ,"10 liIe hond. 01 .... 011 bu.IMU'" ind 

communltlr, ilil pver Americ •. All pf thi' whilecreaHng clean. hameltrown enerlY far us 10 lI'f. 

Thi' 10. <,,,dil orovidn in Incent.ve fo' I~e wind ;n<l"""Il0 conlon"" 10 do all of Ihe,e l~ n5~. 

Collnn M~rte. 

S12 N 5" Avenue 

~uk Rapid,. MN S6119 

320356.206' 

Email: (olleen@blaUnerene.iV.(om 
396 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.327

Columbia Gear 

Corporation 

House Ways 3ud Mealls COllllnillcc 

llEARING ON CERTAIN EX1'IRING TAX PROVISIONS 

ro Thc COlTlll1illCCChairman: 

Columbia Gear Corpor~ljotl, II leading U.S. producer of Wind Turbiue geilrs und 

transmission components, is:I significant pan oflhc Renewable Energy mark"l !;Cgmcm. 

We urge Congress and your COl11mil1cc, 10 lake immcdi~tc Sleps f(lf no carly renewal of 

Ihe Pnxluclion l ':lx erelii, for this critical ioduslry. 

e~ausc of the uncertainty surrounding "hethcr C"ogress will r~ncw the Productiun T~ ~ 

Credit for renewablc cJwrgy industries. many busin~'Sscs have placl.'d hiring and 

investment plans in the U.S. on hold. 

Our business hIlS bC<'11 affected by a decline in orders from our wind turbine customer'S. 

They invested millions in new plants 10 support Wind Ener~y in the U.S .. and ml longer 

have the (lrders to filllh()sc plants. I'an of the reason is the uncenain tax situation. 

It is critical tor Ana'rica to 13k.' the ncccsr.ary steps to ~uppon and grow renewable 

energy ahemmil'cs to reduce our reliance on foreign oil. PlcU$e take action on rcnell ing 

the Production Ta.-.; Credit provision now. 

Ikst eg rd~, 

13i1l Rodger;; 

DircC1 Field Sall!.S 

Columbia Gear Corpor~ti()n 

Sales Ollice: 

128 Country Lodge Road 

Waynesboro. VA 22980 

Plant Operations: 

530 County Road 50 

Avon, MinneSOta 563 10 

II SUBSIOWlI' O~ IJiOUSTRlAlIMN-IJI'ACTURING COMPA/ff 
397 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.328

CRF OJ 

USA. 

Tl'It~PilTibe!l 

C!\aomIIOO, ~QM on So1ocI ~ I.Ie ... re. 

IbJoo! Wt)$ anti Moaos CMmitIw 

us ""51 of Re_IM", •• 

WO>I>"'I/torI. DC 2051-5 

--_ ..... I:VIl ___ ,I<tJ""" _._5"(1.' 

PI <1S.l/IIIIII617 :IJIUnl,h .. • " !It.1:t1f. __ 

0rI Ot/Iai of CMmM1il)' RetI1""S'llltll! FUM, US/\ rtlV"'l. I ~ II", oppotlU!'llt¥ 1:1 $1)1(1 011, \'Ie'" on ne N .... 

!.Iarkell Te, ~ rmtTCi P.-og,,",. We """" ~''J"'U' ""'0Ir0/Ig ""wort Jew tIIt.~ of ... NtooMa>ke1i Tit>. 

C_ wfl icn .o:Q<'Od""~ 11 , 201' L1t~ to """";"", r""CredOf'rogr" ....... _ u~2e'~. 

1/10 New Ma<'<etlo TiP (Ad;! Exl&nWl Acl of 1011 

CRF is a n.o1lOfllll, _i! CDH _ !lie 031 .... ·1 ~ in 0/IaMeIng ............ from 1\0 ~ .......... 1:1 '"P~ 

~!II!) ~1 '"' __ . Our missooo "l<In,oIomI tht ~ ~me,1! In.,,,,,, ')'Olein by 

•• <",,,.119 c.opIUII._. II .... tJoIIoII'" toaI..,..,.,... ~ 10 P'QfI'IO"IMg.wm. __ ..".....".... g«I'NII'I '" 

Io\rrj __ COIMlIInIio. s..:. 1988, CRfmilooJ5ioa1et _~.,..., $1 ,3 _ in e&p4IaI, prirnoriIy 10._ 

~S/II kIcaIId " """. tMn ISO ~.....,.. .,. ~ry, eRr'1 NH< 1oIaII,~ Tou c.r.dl iNMTC1 IofIdOlg Is 

• CIIIi:aI pio'oo 01 Ito" ..... deO..er S<grMc»oj boneko kI ftioOeM ....,; -. To _ commur>kioo 

i11111. ""'" No 302,000 ~ _ ~ ""'fIOilod III dfi<:f'y ~ _so "'CrtF" miTe IoaIIl. _~, 

" ... 50 pm .. tht",," ofw.~. 0-',300 "",owe",,")oIls: 
398 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.329

CRF OJ 

USA. 

TM~ Pllr....,; 

~""C.rIIWI ~ ,~, A1"'126,1012 

n..23, 2012 

P39t201S 

0.... lilt ~ _ )'tars. CRF II-. .. ~ • ~ IIIId III""",, InoC:i< ,IO)AI 01 ong...wg JAIl ....,agil>!lo< 

creGoI __ !skl~~_"""""""",,,~"""'r...,,,,",1Iy logo __ "" 

_ .. , NabONII No" M .... ll!Il .. ~ Funo "'<.. ("N!<MTCf"'), CRf MI. _ .... ofll'lelarjJHl ~., 1M 

"",ok)', _ing Il>: cnodiI~.,.,..,. oIHlo .... fII~ _lotalo>g $1<9.5 ..... oiINI""'1<Ig $~_5 

miiM "" tIeI>IIII 0I_~. Wor.,ng In ~ .. our_ landing IOI/NII, eRr Mo"'" ,." C(eC!' 

~ 10 _ fe",* IOar>S 1<> oe>e<.1YoQ' _ ..... IOcaIeoi .. ~ighty olIshSoeO ~ """""",,01'111, 

NMTCs: Background 

T~ ~ M~I To, CINI . trIo!>l<ld..::< of . ~.fo<1 bo_ Preoi:ItnI Ci\.,.,...,j ~ _~ 10 

, __ ..... n9 ~ b, UO"'ll 1a.< '010&,,",," iii otnt1 PIf'o3Ie _ .. l)II0I ram_ fIan ~ feoo, .. 

... """_ 111""'1/10" , It\Io ~''''''"._V''_ iIoeIlISn&rnooI~_.lIocI/WIlOOIloriM.-g 

"", .. _rlt .. d~_ lin<! ~ _ T1w Cornmu" 1Y "-"II T..,; RelioI ""' .. tabqn.<! /loW Ma$e1S T..,. 

Cteclil!O"ld PIO"ilod $tS bib) ~ mMIt ... Wloriry ~ 2001 a"Ml 2007 TtMl tlMlt PfO\'!<I!tS om·seve<l,.... credit 

ogaiIlJ1 le<:\afalla, .. b .. _" ~ diltrftood~. Coo51'''' rmdemon!, ~ ><JPIlO'\k>r 111 .. 

Prog'''''' b,.~",. NIoI1C lilt .. _ on 2001. 2009 0I'IIl201O 00I!ing $11 -. II <IfI<l~ OUtl'lOnty 

r,.. wc'"~ \OO/I<;J b'/0f')(XIUr3gIflQ ~ 10""" irw,,!mO!1!> ill ~ ~ EMilIe. ("COEs') tt\l1 

1'I.WII;to ~ trri rI!WId oI"'iU1\I ~ <It~t io ~.1!1 and ... ", ~1 111O ~ ~~ 

t:O<M'I""ly 1<llOi.>/l~ modi"",""," , COb ""'vb! ~ try.~ ""~ _IOn, I COFI <II Io.>n 

fuM, or a ptt'fMO"WICIOi _Iioo Tho COE, _INs cap4aI tI_"""" or ,,_ .. _ """led io 

~ dl.~_ """""_ CRr,.... choS"",., ... NI,ITC. kl lin.,..,. . _ iQ!!tblJJn ",,,,,,lIIlif1g 

Mrlesses ., ., o/brl Ie bnno) lie DonI*" oIl1'1e taJo. ~ .,~. fill hall lit otriIIy 10 cru.te. jobo OPel IGO'IOfItID 

IlW"1!l " ""'...."..,. commomftior. 

CRf no, _ nMlIO ......... IMI "",,,"!¥l1>/Wlg !Vm<. lbE/IeIG2 . ... 0l>I010 """"'. NI.ITC ~ IOS<J!IIlO'!!OO 

II""'"Ih 1'1 """""""" .~~ nigh IoIeIs oI~rn>O'll. For~. EoorG2 ~ ~ 532_ motTC 

_10 reoovoIo a 7'.000 oq. h . ...... ~ Jadi!l'lrIoUIon/. a...gon. TlIi5.1>IIHl4lle.1fl1ociO!y lias (IOSfIioIIfd 

Enf>/G.2 IIIItIe IorofrtJol oI .. t'r1f1ll 1 .1Or8\lt ,~\OQIutc<> , T~ eomc.rv wiII~ prOdllOe 000<1 "'" la....., IOOI~' 

.,.,.,,111 01 tie P'"" carton .... 1o!<IaI t>It ""'" _ .... 1:lfaQ! capatiIy lor _ car b<I!lo<\H arK! 0_ ""_. W,." 111ft! 

"""'iIT1O"t EnorG2 n:Q c;oaIO<I 3.'0 ~ ~ ~ p&$ ..., !ioI """tn>c:tiM pr.r "" 1\11"01 Or6lO of Or<!gon IMI " 

$llggiPg IOit1 olooubl&<l9l """mpIo'/ITIonl, 

NMTCs: A Recold of Success 

o.e. lit ="'" ,"lilt !*l_, ~ NM IC nA$ MroonsIt3lt<l 111111 ~ is :o'l .ICII'~ ttffe:ioe ~IMI (Or GfWIf1 ~ 

ptMIlI> _ ~ 100_ <Oi1Im<01irM SiIoo'" _pIO>II1IlCI ...... gn 2011. 0l0tI "'" $26 11i1ioo iI ,.MTC 
399 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.330

CRF II] USA. 

The~ P .. Tibori 

~ .. Co<\l*I Exp;ring To. F'I'o¥ioIoIIs,"'" 26, 2QT2 

Jw>t.21.2()12 

pog.3o!e 

.. ..,._ ... M .. _.-.. ~..........,_ ill $IdD:>o. """',,"_fit Mi!'_""~' A 

..... , o/NMTC i1 .. ...,." """><IL>OIeO~, 12'10 Go .. _ ~ Ofb ('Got.O') in 2007 ~ ~ as,. of 

_ ton ""","led 11>11_ nQI .... 1J1IIde M .. -..m....,..i\W ~ 0/"" , .. ertell ond ..... rII<l~ 

$OIO:III'MI, __ ~"""."""!!J n~ ___ so o!ltMtCr«lt """"0irv,J 1111110 eOfI Fdnd ,,, 

2010 _ . il\YllItm<'rl. in ~"'lC ~ IOI.oIod 59,5 -. 01_ 50'0. <ami 00", _ """"' .. .. od<!;!ioo 11112'10 

_~ _ """"". <If,..., ..... PmsI'"'" CIi ...... ....., .. 7Q,OOO plio _ng 38,000 ~ jobo 

NMTCS_....,_""OIO_r ..... .....m..."WI:! .... r. .. -....a~ For,,,,,,,,",, ,,*, 

..... _JromCRf ~U ..... "il __ "'_SI~_ .. IWICIinarlol>;lI>~._.lIIIlitot¥ 

38,900 oq It-oI<3Cafl!''''''''' IllInOSL ~~ .. ~"'C~'. ~1:It P .... ""'Il~- . TIIi! 

ptMo ....... ..". I"'P>"~ ""'Il~ ............ ;s _ • --..oIl IJr&tMI'IfId ........ , _ 1'10 reb<8boo ot R......-

\IIWI!O'SI!'r'l ~ p<og'"'" (PM_IOa~.'" 0lIl\<"" ~ ~LOl"''' _ poofo".o, .... """"111 -a, tKJI 

1I'MI_""oI~ParI< ... __ """"'_ .. """'I<.<j(,.IM~IIl'!I1>IItot$~"tI'ioIU" ..... 1oir(~ 

p~ ponlg.iI/II. ~ oores.o 10 QuMly......" .... oiw'Ig. _ POOl"''''''''''''''''" p<oIotsiorIoII ... II>< 

.·.,.,WIIiog40 ..... ~_~.,..iu'!.h"",.N!~~lIIim~".._OT 

I;<lmboi!l "n _''111_ 

NMTCs: Rell1l'11 on Investment 

At~reu <DI'ISIdtn "~ N!.jTC. III io1poI\arI! 10""""', hi oootO/I:N CMdil. in \IIImO 01 r ... "...~. By 

"",,,,,oS<J!e, NMTC~"~-". 'ftIt~.., .. 101lOF..s...~m"""'<>f $1 Io_I .. NMrC 

.. -" bj int<>M lei( "'\'OflbH, io ~iS\OI, '2!i te.,",' 

Tho Ill< RoW.l/rIt~rm"'1 ""'"- Rr~ .... JoOC/t"""" lo.dol2010 ~ N!d TC lor 2010 ond 

201''''''' $3,5!i6or1 in ......... ",",,~, AlnwllhIIl:J Iho Jon T •• ~ lilt IO~ .. I'll ........ _If _1!<l"""M~_ lO_$181~()I2:i.8"'. 

I'<I1l1dotalM_ in"" ... oIonIklill. 5IO •• ' .... no'"1 lIJitI;2010 .. ""e ... NWC __ 14,r 

_aro:IIOUliI>fClOClS""'Jor t,C1C 1r>tnoocI-.... ca<TIOl:J$S.5bMon. I",,_I:JN~ 01"'11$<1.1 

_ .. /wTC _IS ..... 11.21 _ . Tile .. til .. 10 ... go\'efllfI\eI'I ~ 68,OOOjot>s 0'" ",51 CIt S1t,lIOOpo, 

joe. ~ .. """ ""_ll:JroIe mat ... '1 21 -. oIinl'lUllenl ~ 0 10101 0159.5 ..... in"""""""" otIoVty-" 

~ """"' "'" 1I .. <:rI>If( ...... oed , f.....,.!lobt spI'IIl_OI ' ........ ""- bi .... _II 110_""" "" Nt,CTC.-"'_"$e,"~""'''~ in~. 

·~-... ........ _oI ____ .. "' __ T .. G!OOiO(NI.OJClPIogrJoo~DionoMiI 

~~_~"'_'~"'''f'lo\Ir'' '"'*"'1........-_ .. ....,.. "' ... __ ... __ ·""""""""""' ___ ... _........,"'""_0<11"'''Wl_r_ , ""' .... _ ..... _._"". ............. __ ,1-.. ___ ~ • • _ ... _ .. 

... :lS __ .. __ , __ ,._ ..... aotI .... f __ ..... li_ .. 

_ lS __ I·"·I>4SI°.75J!l1 
400 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.331

CRF OJ 

USA. 

T",,,",,, ""'filii" ~ "" CMBf1 Expiwlg 1M -....., .lIwiI2II. 2012 

....... 28, 2012 

PItJO 4 of 6 

NMTCs; Communi!y Impaci 

Ai tlM]"C ~!We ~Mod ~ ~ - u/Ien 'N """" ~I moSI ~'v aIIecIH t>y 

C_.conom.: crisIo, !.Ale< "'" ~~. 08m1TC n_ ..... t MlriI WS_ IXIIIed n 

""""""'"' __ flo I>OWIIY ,... Is :!O% or h8bt<!II __ 1110 ............ i:1too .. """" no! e.-d &Oil. oI ... ~ 

""""-' CDEs __ 10""" __ .,-. __ lei <:tIaIItnges .... 01>0-' II> 

"""""'"" 0<"""''' c:omr!1U/III)' _lIa_ la<MlI n ~ ~..cllurt. """,Joe W ctearl 0II0c.aIi0qs n 

1fI<I,1I9/IIy~~ 1 .... CO£I;~t!rI/lW$lir>I)IiIca$""""",.i»""'l'!1* .. ~"'g<Nl&r Wf)tt. 

_~ __ r<l!.-""Nd~oj ..... _, lIrIIl_fII""".,....... ' .... _ 15/NoilN 

__ ..... ' Hn_tISI.Io .. ,..",\IOS 

01 "" IlIoI 59.5 -. _ .. Nt.lTt: ~IIM '*lOllS tlOlS. """" NO MII_III_IOCI .. ......-. ...,OO 

~1_""""N1\5irr..s1t!&_ ... : 

__ $.II bain ...... _., bIIONsteS In """"".- -.1rItOffIeO io8fI ..... tIan ilO'lol ...... 

.., ...... , flf\lll"llio _ flo CIJOIoOO 01900<1 ~ I0I>0, 

~ __ oi NI.ITC _Nntl~,_-.-In~IocQ<! .. ~" 

.~ 11M _"'411' din ... _ . Wore ~noIlor"'" NMTC, _ ~oroesl "' ___ tie<"" 

~145 S_ tncI IJlfjOil.IrJ(:I oI~ OOloid _ blignlMl .... Llflderst""'"' _...,.. 12-" 

n <MSldll CI!IiIoIio ~ 10"""", ~I b-.I DfC1l!OIIr'i ion1nJ .... 1O """)olio ItIotI'6)'WlI, 

c.... __ 010 NI,ITC ProjocIII' .... "" __ StImg 0CI<TVII0IIiIy """"". N HDIIo!on FOOl! Bant. '1'1/11>, CRF'. 

'II/!I. 1M """I)/DIiI_8IlIo1D..,.... Wl...., .. NUrc.lOlInwo lNlOOI'I$trurtooo 01 ..... lO8.000 «1 ft fDiII''''' 

t~ ~1iorI _ (bot _ .... ~Ulol N "'" !aGiIIIy) Nt_ N "",.w>IUtio<! 10_ ""'" I...., 

,..,.. _ _ and 10 "",¥!do t1N/I'Iy """" Jood. 1 ..... "-one O\ ... ~ <JIOSoICffi:I bod ~ In !hi 

""""'" Ever)' ""' 5:\000 po<IIIIo .. ""' .... 0II1IIIogty If'Id 43'" or r)' _ .... , __ !Dod r.d 

~ Tt.! ~1Ii1ll Food Bank It II.1c!k1g !III ~ 1Og" 1 ~"""'ltIe~t Tt.1M ~ iR<l"lll lJ/,OOl M'lOlt 

MrY-' "' 0I_"'_l!\.iIflI!~m<IIII"""S3""' .. I1Wu._1J1<1U1f'I W""~II 

.. '"" .-..cy 01 .. __ ... IIrB._ II> on""" Nt II!i *11 at ewry _ <Ion.rea _ 0iItIcIy II> ~ 

NnlllWl'l In __ wiIo""arI)'500"""OR,_ogettilI, I'IfB-uII>"""'" .... 1_""001_1> 

__ ~_ .rnIIos.~""""""""or~tMfllllls, 
401 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.332

CRF OJ 

USA. 

rM~ PoITitIe!1 

'-<IlI""CtIla<l~ ,.,~, At"2e "2012 

....... 23, 2012 

Pago5016 

HR 2655 - The New Markets ElIl!f1sion Act of 2011 

1) A long_Term eXTension of rive years 

A\lhtMld 012010 CtwItmo .... .-III ~M1C Pros'." lor FY 2010and FY 2011 ,"" an ... 'n! ""'Ifi.,.., 

""""_ ..... lIIO""lIl'IaIauIr.o"".' .... .. 201, . a IOIaI 01 "5.'_ .. " ,_ inNM1C .... _ ......... , .... 

...., 87'110 ~ 111" 200II. W. IIeliM tI\iI _1M .... iIICr\IO$II in "_1$ _ • 0H<:t _ 10 !It I'l<:rN$6<l 

~ty erHlM D)' the....,)'U' .ideI>~ , ~ .. dNr M lilt GIJl MIO'I IIlI! ""8~ ofNM{Cs d>ilo!s." 

<><esIOr'. ~ 10 ....... GOrM1\IMy i. ... _ts. WI! "'t ~ "II w'Ch <nO!e _\y. ,,~ "tertSl .. 

IIMIC. wil ~rDW 1'10_, _ an • .........., in 11>0 filar "''''' In\'f:SIOI "IO,e51 .oil """'""" apCal MIl go .. _ 

""" N OOIM in !lit orIficoofq 01 ....... '""" 'Mil bII "'51 

l} An incteilse in Credit AUlhorily·· S5 billion annually 

Aomor>OOnoc! ._, IJIoraIo '"""'""" <lomond "" IIe' .. Mofo; ... Tal< Creojllo S;u'" Progr ..... '._ '" 2003, 

_ b" NMTCs ,..._ ~ -. ""'" 1I0\0I01533 WIM Iner.:l .. ""I_n ...... In....,." d<!maIIII 

""" ~ iUW1, 011 .. <nIdoli. by ~ bo;l:>I 01 ~I 7 J...t"",-"",, III !no ~ for the CteCI' iI .".. inpocIlI\aI 

IN ~ragra .. h .. , ad "" ~ dOo_ ~ BiIioM a/ck:Qrs Ito .. ~ 1000 .......... trad~ 

~ I)y __ flI'!41Or1 oW me .. neo.1ho!I)o oIIoCItd I l1\li _ssio<1 

mi .... 0""" 0'''11 sIIo¥M\I SIQIIS" ~Wl1o "".. • ~ .~ ..... PrOgram lIIO"ldiQg _ Gt~ty. ,,", ale 

_un...-nII .. ",,"Ci ~ of .. 2011 ~ $5.7 bOlon, B_ "" "" .. "",,-, ~Coogtess iN:".. ••• 

IIMIC to »_ in."rIU>/ CretJil "UlIIotity "" _ ... """" rhM JIUI>ifflrIf> .. _ ...... """"1 itt 

<Iis~ ieS _1Ilf <:fU!;"" <J< fO'Imtior> r>f Of iNS' 10.000 jobs Of ~ .... yo" I:OS' (0 !he 90"«11"""" 

a{ SI.29 biH/otI. 

3) An exl'/flp#on from fhcAltcrnaljve Minimum T~x fOf NMTC inveslmenlS 

"1Oqg ~ cw ~"'*'""1 011_"""" ~ also _ .. ~ !1Iat.~ N No "'_1 T"" Cn!dl 110m u... 

~MnmI>rn TII< (}Mn· s..dI.P«M\IIlI' _II"IHt. Mar\I..t>OIlP¥ ............ sImiar ... _IncM;,,; 

1>0 Low """""" IIouwIg ;trill ~1OIi: To. Crodrta. VoIJlooII1IIis " """" ...... N .... Morq" ........ "' I aisad_1ago Tn 1M 

...... 101" m_lPIeOe . .o.r.!IOI\l bOIl ~"'T """ alOrlQ-leml ~I\SIOII, 'j w;jI Do <lI!fltUll Ii> _ trI8 '"_t>! '-... trI8 

crWil bo)'\lr>6 ,.. Ia~ eRA ..,,,,allolj t..nI<J. ,,~ ........... 110<\ "'" ;.c...a.o _1M b'tte<liIt. res.ulli>g ... 

oe!let prkioQ I!I'M! IMreSUboidies t>H\I ~ on 10 Ioeod bll ......... . 
402 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.333

CRF OJ 

USA. 

rho t\oI1 , PM T'Ooti 

_rog M c.<Iaro E.<pmg 1 .. p~, .\,p;I26. 2012 

Jur>o 28. 201 2 

PI!Ql!6016 

Conclusion 

L'l000f\g '"" _ fiII8 10 """"""'" VO" 1oIr. C/Ia'IIIM, ""1'OllWIg l1>li1111"''''11 ""...,.., .1InoIy lIlO ~t tIpoC.. w. g'fiOWy ~~ iI>9 ~ 10...,.,.. Dl>r ¥Ie.., ~ )'W ;!Old yoU/ "'HofglOOf. Flo ... do,.,. Mslali 10 W11~ ... 

'oiMo .."., Q ..... tiotls rogOtdWlg amnon!S ~ In .... ~~I 
403 

Statement of Compass Wind, LLC 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.334

O',onl,allon: Compus Wind, HC 

IIddre.s: 1730 Blak~ St., Sle. 4oo 

Denver CO 80202 

Conlact phone: (303)658·9853 

Email: Doug.We.ley@.comp ... w.nd.com 

Compa', Wind. Ile. 3 ludlng wind P<O I develope' b~~d In Dtnv ' CO. u,ges (ong' .... !o e.lend the 

wind enerev producllon I •• credit (PTe) as quickly., po .. lb le. 

We have !>oen d""e"p'"8 plOjects In Ihe IJs We .. for] vea ... Our market. hOWi!ver. j , ,mall U'>-!oO MW 

Project') and de pendent on e.lning If.n,mi"k", lines, 

With the unuorlointv of the PTe', future, Wft are reluctantly winding d<>wn. ,tgniftcant ~ion of nur U5 

wind developmem activity and imlead redir&tinH funding. servke. and >IsH ,e""""e. e;' .. wh." ... Thi. 

wlUlikely re ,ult In ,Igfl]focant n~w lnve.Wnent doU .. <. cOM<truet",n Job,. I •• dollat< aM communlly 

Domefito ' hlftlnll away from the U5. a, • direct relull of Cong'''''' delav in p .. ,ing a IImely e~l n'lon 01 

the PTe, W~ I!(ongiv ilrg .. Ihi, <ommlnu 10 immedi"lely liI~t UP ~n Ule nsion of Ihe wind ene rRV PTC. 
404 

Statement of Competitive Energy Insight, Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.335

Name,: Slc~e I'r(wQI 

Urgall141t;on {ifnpplieable}: Compelit;"e Energy InsigtJl, Inc. 

Address: 12025 l31ue Diumond CI., San Diego, CA 92131 

Phone Numbcr: (858) 566·0221 

Contact E-mail Address: 

Title of Ilcaring:l lcarin~ on Cenain Expiring1'ax PrOl'lsions 

To Whom it May Concern 1m Capital Hill: 

April 24. 2012 

Please c~tend the Production Tax Cn:dilj; foc Wind Energy, l3iQfucl$ and other renewable 

energy;rlVestments. Strong domestic industries have developt'd as .. direct result of puSt 

stimulus for theS(' domestic ~~lcrgy production a~as. Tlll'l;l' 111l':U\ Jobs and a clo:>'oIner 

cllvirOllmCIll. 

1 elll;onrage )'OU\O e.~tend these credits for the longes\ feasible period possible. 

Yours truly. 

Slcve 1'1"0\'01- I'rcsidelll 

Competitive Energy Insight. In~, 

SanOiego.CA 92131 
405 

Statement of Concast, Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.336

Hurlnl on C,"rUln E~p rlnl Tn Provi.lon. 

I, 8en OllOn Vkl! President 01 CO~elI51. Inc, In Zumb rota, MN respectfully urge COll8r6110 ""tend the 

willd enerr; producllon la. cre dit (PTe) as qulcklV U pe"ibtl!, 

Conca.!, In~ has t>etn supply preelll,t con"ele products 10 t~e Wind Indull"! for ~.rjv 10 yearl. Alter 

Ihe resldenl;.1 ma'~el took its!)il hit we have been relying on the Wind Indu.try 10 keep our planlS busy. 

and h h .. , We have Ktually Krewn cen";derably. Thi, indu>!,,! has brOUKhl new opportunilies for 

COnellSl- The fndulll ies growth h~1 made 11 pos,lb le to increase employment and open a new 

proOuction f.clilly, The PTC drlw. blllk,,,, of doli ... ill private in""51ment In homegrown American wind 

power each VO., The proj&u bring tn con5lfu<lion job. al first, and then maintenance lOb, in the long 

term. and generating r~venue lor nur community <drool. and hn.pllOl. nver the Ii/e time o/-lI\e nj <t 

Inc.easing the .mounl of pewe, Illalour ceunlry ge!> from 'kran. homegrown . aflordable n!><lUrce. i. 

an e.<ellenllhina fer u. to dn - and thl' tnCledlt provides an IncenUII" Ie, the wind IndUstry te 

cenlinue Ie de ju,t thol, 

1 urge h~ comm;l!ee 10 tak~ u~ an e.ten.ion 01 th~ Wind eflerlV IIroduction I~ . cr~it r'llht awav. 

Than k. You. 

Ben Olson 

Vice PIl"'dent 

Conc~~t, Inc . 

1010 North Sill' Or~. PO BoX 69 

Zumbrota, MN 55992 

ben@leo""",!I"".com 
406 

Statement of Concerned Citizens of West Antelope Valley 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.337

Apri125,2012 

RF.: l!earinj! un CCl1;l!" E.\piring a~ I'rol'isi(}(l~ 

Fur 20 )'~MS. 10IX1'3Xers ha,!! pnJppc(l "p Ihe wi"d cntr~) ;"duSl!").". Despile the onauy le'lS<)r 

bil li lmsufdollars\$I~ billion 1;1.~1 y" .. ) gi,en LO It."m via Ihe prod"ction lax c",dil.mc mu", 

r~ccntlnv<'S!mcn! la\"cr.."l:Ilt. and o!h.,- las and r~guln!mypro'i~jOll>. 05 "dl 3~ 10811 guarom~N 

~nd o"uigh! ~ranls.. lhe industry still tOme~ bt:1l~ing. 

A nd e~"n .f1~r 20 ~'l: f"i'ors uch I"r~ssc, .he ind"~1ry mn "01 Ii-how "n)" mcan;n~"1 \>oneill 

conccminll an~ tni.·r~. roll,,!ilm. Or c..-bon problem. 

Instead. n,ral tomm"nit ie.; h.ve been left divided. landSCllptS dcgradtd. bird and bat ilOPulMions 

IhrC"dICncd ... nd already dwi,.Klli,,¥ ,,"IU131 hahilalS deslroyed. 

I urgt" yuu 10 END the Production T!I.~ Cmlil.lh\' hwtlilm~OI Tas C~il. and nny nlhff fl-dcrnl 

suppon of industria l "ind enc'rgy. 

Si"""rely, 

IHI R. MOr;\n 

Concerned Citizens of West Antelope Vall ey 

46472 Kings-e;.nyon Rd 

La ncaster, CA 9353b 

661-724-1861 

'ill R Mflran@gmail.C{lm 
407 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.338

ST,\TU, .:I'iT 0 ." COU }~' n T £C, ' I'iOLOC,t:S 

ON 

Il EAR'J'\"CONCERT ... IN EXI'IRUNC TAX PROVIDSIOIo'S 

SUB.\I IlT£OTO 

SUBCO.IIM1T1·[ ( ON SEL(CT REV[NIJE M[ASIJRES 

WA \'S "'1'0' 0 Mr.A \~ S COMMITTE': IJNrn:O 

ST ... TI:S UOUSE 0 .. REI'M£SEl'o'· ... TlVES 

WASIUNGTON OC 

",'RIL 21 •. ZQ IZ 

ME: EXTF:NSION O .. ... L TF:MNAT' VE .. UEL \'EIIICLF: REfUELING PROrEMn' CMEIJIT '! .... :Iioll 

"'" 

0",1,,,,,1:> T<'thnolo~i<:> ., a ,,,,.11 t>u'in""~ "."Iun: b:o<:~,,j <:OmJ"UI)' h":KkjUlUh'T\,d in C.mpbdl. Calif"",,,. IW 

$<.' 11 ond irlSlnll d""ric ,tlIid<.' $'-'TVi= and C'<jUIprt1tnt to ~uswm<"1'l;,b;J, 0"" d""rk """kl'" '" ",i,h 10 d'T"~ 

;nf .... -trU<IO",,,n public ur m,'a!. proJlrn). We di<lrihulcCnulun,"Chargd''''n, S':IIi"n lh"' ",!,,,,s,ml III" 

bi~"1 n<:l""fL ufpubllcl) " '. il:.llkcliarginl':,.:lI;",,, in Ihe nI.rt<11<Wj wilh ,,,. I~I"')II"";'''' "fdril','fS, 

~ '1l~ In" '" ."ood Ih. JOC I~~ <rroi' In' . U.moli.'. lurl vrbid ..... ru.li"l: P""~"Y "'hid, ",pir~" ill 

lDh "rof 20 11 . Tb. <rWi!' ~~ri iun Knd ,h. un •• r .. in,y .round it> rrn~,, ri d.m.l:lng ,n 

«>" ... ml'l'.- ud bu.i'n ...... plMnning .o in ... ' in plll ~. in hk~ . nd .'1li ~ rquipm. nl. 

rho JOC "I'I.'Jil " ~ 1~< hnoIOS~ -<ICtI,ml incenlJ,e fOl' COltiUmCf .mJ bwilli$ in".";lm,'n1 in i"''''''I'''''IOI'<.' 10 

<uM"l" ,chkk< ,ha, run on ~lI"'TIIl!i, es ' 0 oil. II p"'Y~ an <$-«:ntial role tn the 1\~1~\fI(I1 ~ff<'" 10 r<ducc OU, 

d~p<'IId .. 'II<~ on impun,'<I <>it "hich lh"'3.1 ..... "Uf nOliunal "",ufil) a, II~II "" uur """",""} . PI."", "Un;;,dcf I~ 

("ll""ill/:: 

lJ.lKd on dala li e hiI,e .,'11''1.1,'<1 as M bMIIIIIV 31. 012 ('''''~I''''n1 ".,i,,,,, .1'" rum",,'" di p<'n in~ 0""' 

J:!S MCgall;ol1 till"" tMWhj "rclccl,;" r",,1 ';'""to m,,"lh. Thi. 1 ... " , loltl> in'olhc (1<", ,,,,1 ;' qIliWl/~nl Qj 

J~,{/(HJ !{'II/DOl .• "/s'" ",,,jil..~1 ~ I) ~liIIi"" /Il. "/('01 ~,i. i",,,, "" ''''''~'' 

0. <. 6.tUI nQn·rtSid''flhal ch.fging Sf"" ~ or "" running. '"'" ing dri,'c," "hilt ,h,·y .n: """j' fF\lm lII~ir I",m., gamg,-;. 

r""''''CIJ' .,,,,1..,,, i,..,ull,'<I i" "ur mlril,1. ,hl'<.'c I",,,,k ~'Il ~, '''od: OI1C ,,, m'OUr""i"'" ,hcl"'ldu", ooll '1> 0 1", .. "IJobi;I<,iru.rall, 
408 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.339

C"'''(lm~ ;". ''''"l'On) th" .. , n"r..,,,,,,, .. !d tkrlo,. <b>'l!'n~ ...""",,,, ... ""<i",,, • .<oft",.", S)''''''"" mr ..... "K:. 

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,-.h",l< <~''l!"'I..,h.'''''. _oJ'. ~'",,_~ C,,"'II"I'OOt' N<l\"'''~ ;" 111< '-" ""Im< Bl<>I>oI <IIo'!l~'1 "","e,k 

<oo"",';n~ ,10<,"" ".~i<1< dri.- In 'h "'ll '"~ "..,ion. in ~_ I~ """n'';". C .... k .. 'b ,,,,, I',,,,U,,, Char~.I'0,,,, 

So, .. oo.. ""' ",0 P""" <1""""""<t.J ..,1.,,,,,,, ,.,., hon.ll< ~II ,Im~<'} ~illin~ a...t "'I'f'II". """ ,11.0\ ~" < Oo'j;;o>i .. ," .. , Iho 

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<OII ........... od ""-",,.,..,. pl"".in, '" in,..",. i. plu~..fn I'..,;"I .. ,.,.J O~Ol@ <G~II'm<"'. 

1\ "'011;.)'<0< ~.,.. cf the 5«,;". JIIC' ,radii "",,!.II"''';&' ,n;,; «"'".) 0IId. k,.1 rta) "'II f.,111 .. ,,''''' ol",,,,,,,i.,, 1Io<1 ....... ' .... ie,. lin .... ' .... gi"'" lilt ",.Ii,i« r .. in~ C;,,,,,,,"",, C""~",,II ''''l!'' m. S"I><,,,,,.,i,,.. '" r<."","""" 

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C'.'pl>oll. C.lirorni. 9'00f~<l(I1 

911·S1l_18iJ 
409 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.340

5"'len1<'nl of Ka.1~ Offrinfia 

l'r"";d,,,,1 k CEO 

Cour.:jl of the Nnrth Arneri,an n~ulation Anula~lurt'rs Association 

44 Canal C""ter PbZd, Suit .. 310 

\Iex~ndr;~, VA llJI4 

B<.fure 

HouS<! Commin"" on WdY5 ~"d ' .. ~ns 

SUOCommillLoe 011 Select R .. v~m!l" Men u .... ", 

Do 

1'/l~ E~lenJe"" 

"pril 26, 2012 

Thank you, Mr. Chairman ~n.t memb<":r> of th~ Sub«>mmi\le.::. My name is Kate Offrinlla 

Bnd I ,1m the l',..".-l,j;,nt ~n,j CEO u{ the Coundl u{ th .. North Am~.,.i o!"~n Insula llun 

M~nufd"lurers A~r.ociallun (Caun<..il of NAIMA). I would like 10 .<r'."Ild "few n,inul"" 

.i<!!;Criblng II><> import .. ,nl role thai ta~ ;"f~ntlv~'S pLay lor Ihe in"uIMI"n ;nJu~try ~nd adv,lIldng 

e,wrgy cOn~.,rvdtion. 

The dean.e:sl. least e.~,...,.nsive, and mOSI r .. llabl., en<'rgy .;om"" fron' more efficiently 

using tl><> ",,<'rgy we al .... aJ)' prod"",,,. N~...,rly 50 million An"~ricil.n hom.,., ar(' u",.I", lnsulJlc.I , 

and th" fc..vd of insuLati,,,, in many comm .. ,..;:;al bui ldinGs is wOO'fully inadequate. Pulling in 

proper I""'ds of insulation woulJ immNiatdy low~r l'ncrgy bllls, c,..;:ate fobs ,md oJeo:rease 

en.I'Sy u;ag ... If A",<'rican home, were I'roJ"'rly Instlj"t..·d, ..... I! could av .. 3(1 times th~ amount 

of "n~gy los! in Ill" 2010 Gulf oil spill. 

l\Iost ;mp"Nantiy. w .. don't n""oJ to JOC/ltll n.,w ~rves or de"elop "",w !!'Chnologi"": 

High quality insulation Is availabl .. today and can be instali.oci tomorrow. Th .. chall""g~ i. 

inc~ntiYiz;ng p""ple to install Knd reLrofit thaI insulation into new ilnd ex;sling homes ~"d 

buildings. 

0., .. importanl way to achieve h;~ goal is tu ~~pand and ""t<'I'\d " tru. CTl'dil that reward~ 

horn""",n .. .,. for in~t"liing .. ne.gy effidenl product. and "Guipmen\. first e~lablish..d in Ih., 

2005 Energ), I'"licy Act. Ih .. I'mvision known a. "25C" - or h,dmicaliy known as 11K' 

" nonbusil' l'SS l~le gy l~x crali!" - has helped I('ns of lhouS<lllds of honll'ownc," "cross lh~ 

~"'untl) e sub ... t~nt al amounl. of m""ey On monthly ell .. rgy !>ills. In 2011, il rnlvided a I~" 

cr ,,'it (If HI pt>o:.:Ilt-up to S5OO-for insuldtion, h~~\ing, vcn\il~ti"n, ;'InJ air olld tioning 

equipm.,nl, <:nergy-smart win(lows alld olh~r prooJucts desir,o""-' to ,",VC en<!rgy, 

2SC ha~ enjo)yed de('p bipartisan suprort 0" Capitol I lill and has ~n ~~tended ..e-' .. r~1 

t1",.,.,. The ~I\.-..lil w~s al~ ~"p"nded M tripl" it~ ~urr;ml siw In 2OCI'1 and 1(110, ,\s.\ r<'!;uli, th~ 
410 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.341

number of homL'Owne n;; taking advantage 01& in thest' )'l'ilrs inaeased substantially from 

pre\' ;0I.(Jj" y .. ars. 

llw' insubtion indu~try strongly s upports e~t"""""!on oI25C at Ihe hieh.,..t IL'Vel, the 

Congress can mdnag~ in light of budgel constraints. In add ilion. 25C should be amendl'<l to 

aUo..- \tlml'Own~n; to indude th~ COSI of la.rer n~ry for tit(> i.nslallation oj insulation. 

Curr .. ",ly, labor costs, which can amount to haH or th~ cost 01 insldlling insulation, are pxduded 

without any sound public policy basis. Including labor will ""II' put Insulation on mor~ "'lual 

looting with h~r produc .. ~ch a~ HVAC un;", whoc.t labor co. •• ~r@ alr .. ~dy Include.! on h~ 

"""lit. Mure importanU)" il will put qualified conlraclO'" and insla ll .. ",_ltard hit hy the 

current Non!)my _back to work. 

In addition to 25C, there a .... Sl'v~ral mher important lax i"....,ntives aimed at boosting 

ene rgy ~lIicieocy. The EIlI!rgy EIfiei.-n,1 New I 10ml'S T.x erroit • known as 45L _ allows 

ho",ebuilder~ 10 rl ... ...,ive a Sl.IXX1 [,,'I:!il for ..... ery new home ,h<.y build that is 50 percent mo ... 

""ergy i!ffidenl than c",l~ in r~gard to heating and cooling. U kewise, the Energy Efficient 

Commercial lIuilding Tax Deduclion. or 179(D), provides an incentive for ... trofilling e.isting 

mmm~rc al building.. through . t,,~ Jlodud;on of $111111"" square foot. UnfOnunalcly, 17'9D is 

uMuly c'JmpleK nnd, as n result, little uSi'd. TIl<" AJminis r~tion has r, ... cnlly t~k"" "lep~ 10 

imprt»'c 1790 through Ddmin;~tr1I ivc Kt;On,;. bUI legislAt,on ;5 n:... luin:. ... 1 10 ompl~'le y addrl"SS 

the short(omin!,;S or this provision. 

Th .. construction and comn.CtOr ""tors of t .... job markct h~,· .. been hit ~'Spedalfy hard 

by the curient l'Cunomy pnd the [Ontinu",t ~Iowdown of the Oou'ing mArke\. o.,,;pit~ 

improvemem in the <'[onomy, unemployment ,n the conslfu~l;on SL'Ctor remdins more Ih .. n 

douhle til<- nati"",,1 ev{..-at:" at 17.2 percem in Mlln:h, and 111.:. indust!)' is .-nllsidemhly s",pller 

than it was belore the recenl "·,,,·ssion. Likewise, our nlanufa(IUrers ~re hiring lewer wor~ers 

and producing r.,w~r I'rooucls. Energy ~lIkiency incentiv"," "uch as 25C, 451 ... ~nJ INO can 

help us ~Ilain ~ number of goals including putting Anwrkans hack 10 work, sav"'g mon~y 00 

our ntility bills, and making America mo", e"ergy ind<'pt'ndent. 

Unfortunately, both 25Cand 451. e~p rru at the end or 21)1 I, which has cau....! 

unc<'<laint)· in the mark~plac~ and undemlined ttw cauS{-' 01 energy com;e",ati on. Particularly 

in a tighl l>udgetdry cnvironm~nt, competing priorities r"<Juire d ifficu lt chok"g be mad~. fiul 

en<',gy conS<'rv~lion Hnd efficiency a ... ..till critical priorities. 

Installing io,walion may 0011>1' "" visually dramatic as a ~~sive wind farm or a ,,..w 

oilfield, but it i. ch~al"'r, deanl" and can contribuh! eVCll mo,.., signilk.11lUy 10 c ..... ting jobs and 

creating ~ secu ... energ}" lulure for America. 

Tll<mk you "gaio for the opportunity to !<'Stify today. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.342

TrSli(/umJ'oj 

Robert S. Collier 

President and CEO orthe Council of Michigan Foundations 

fill hrill/if "f 

The Council on Foundalions 

ill $upp fJrl of 

Extension of the Charitable IRA Rollover 

rl! ~e fctl III the 

United States House of Representatives 

Committee on \Vays and Means 

Subcommittee on Select Revenue Measu_res 

April 26, 2012 
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Chaimlan Tiberi. Kan~ing M~nlber Neal, and members t)rth~ $el e<o! ~~~enue Measures 

SuocommillceMth" W3~ S ~nd M~M Commiu«,·.thank you for this 0PPOl1"nitylO r't:Scnt 

te, timony in suppol1 of «.'tension oftlte chmitahlc Individual Retirement "eL'Ount rultover. 

My nnme.s Rt>b C"nil·r. and I Am president and chiefcxccuti\"cofTicerofthe Count. I of 

r. lichig;.tn Foundmions. The Council of Michigan I'oundatiuns ("CMF") is a 50 1(c)\11 nonprofit 

nlembt.'1'Ship aJ;S\)Ciation ufmore than 350 grantm:Ikingurganiz:uiul1s "''Orking tOgl1h<'r 10 

trenglh~n. promote. :md iocreA;;e philanthropy in Michi!!,<ln. eMF was fonn~'"tI in 1972 to 

represent round~tion interests with St3te and federal OfTici3is. and it h:lll since sen ~xl as 3 

c<~llralizcd l 'Uie;,' of MidliWJ,n pnil:mlhropy. OWr its 40 year history. eMF has grown 10 become 

the nOtion 's larg,cst (('gio",,1 QSSi)eiation fgrontnla~,,". servIng family foundations, cOrpOl"~tc 

fo"nd~titln s and giving program~. indqx,ndcnl and commt,";ty fotl11dutir>r15. and publi e charilies 

of all si~. eMF repmlC111S 88 percell! oFthe organiz~xl phila111hmric 3SSC1~ intk Sla1e of 

Michigan. 

I am teslifying todJ)' Oil bchalfofthe Council on FOIllJ<btions. of "hich the Councilor 

Michig:1I1 Found~ ion~ i~ a memb<'r. ",., Council on FI'umJ~tion~ ref',..,~m s ol'Crl.()()O 

grnn1nta~ing foundutious 3nd eorporntion> ",itn a:<:I<:lJ; of (wer SJOO hilliron. As the "oic( of 

phil3otnropy mtionaity, the C(lUocit "orks 10 cr~al " an ~nvimmn~I11 in " 'hich th~ mowlll~nl ~~n 

grow and thrive. ,md 1(' promote policies that cl1abk the philamhrupic S<.'C1I>r tu work most 

dfe<=tivel y. 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.344

My tl'Slimony ~dJressl'S a I'ttently expired prol isill" ofln~ tu cQde Ihat IlaS proven to t:." 

B ICI')' imJK1r1BnIIOOI fOT donors who wish 1(> make ~ fXlsiti, ~ dirrcrencc in i,hcircummunity. bUI 

\\no rna)' 001 ha,'c 5ub.;lanll11 ;w;elS t:."yond Ihose Iypically >;lIed by a family O,'CT Ihe COUI¥' of 

B li Clim~, "uch as a rcli",ml.'m :!Ccuunt. Unlil ils ~.pinllion atlne cnd or20] I. I.,ternal Itc,..,.,uc 

Cnde <'CI.1iOll 408Id)(8) pro~idC'd such daoor.; Ihc 'lp[lOr1unilylo make In.·free diSlribuliuns from 

Ihctr individual ... 'limn""'l rlans far thariI3blcpu~. 

l.Iy w:.y ufbackgmund. pnor 10 21)()6. I",paycno wishing 10 translh IndiVidual RMiri'mcnl 

A'~O\lIl t 1··lk .... ·/3 .. WI5 In dmr;l), fll1ll hIld II} "'-;:'-lgni1.c Ihc alllalJllI a~ in~(,m~. lIlakcg Imtlsfcr. 

and then daim a ~rilllble I:t)ntribUlion deduclion for lhe ~mout1l gifted. '(hi, olkn resullc'll in 

illS liabll'I),. even Ihnugh Ihe Moor ultlm;ud)' rol\~f~d the entire IRA distribution 1\1 charity. 

TIle Pmsion ['l'IlIeclion Act of2006 p;lrtiall), .'lOlled this problem by allo\\inl; individuals 10 

lr.lnSr .... attH>unts from lncir IltA ""cout\tsdi",ctly 10 charily w;lhoullin;, having 10 rcrugni,e Ihe 

dislribulion lIS inC{)me. Since ils ;nili;,] Ct1a.:IOlCt1t, the charilable IRA mllflVerhusllM-, 

""tended repcal~'llly with broad b;p;jMisan SUjlporl. 

E'l.I..-.siQtl of{h~ n.~..,mlyc~pin.-d charilat>tc IRA rollQ\"e"I" will be in")\~ns<:ly bdpful in 

cn~uring Ihal philanthropic organizations ha, c Ihc ml',-m~ and flC);lhi lily 10 aM .... "'$!; dramaticall y 

KJ"o"ing ,Ieffi$. Hlnhcr eSI~n~ion Mlhe f'I"O"isioll regardin!! IRA mllo"en;" ill rro"idedrmors 

the gn,atcr<-ertlIinty nCNtd lor prudcn{tharil~blctifl planning. und will ensure future uonors 

M,·c tnC abilily II> U5C this efficient tnC~nS of!;iving_ 'n'e charilablc IRA rollovrrhas pro"cn 

[lOpultu",,;lh dollOf"'. resuiting;n inc,""a",u g n ;"g from IitA :!CCOW1\S. Atlltis t;"", ofgr~"ler 

Ikmands ujl<)11 thc charitable ~or. "hen Ihe pn"ate donors arc ;n=asmgly called upon 10 hclp 

ad !"e!t ~ crilical net:<l$ in their con1l1lPnities-amidsl se,'cre 1i~1 conjU"ainlS tI('On lh~ jl1lt>lit 

; 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.345

~'t("Jr. il is vilQlIy impunan! Ihu! we not d~ny iodi~idual dOr.(ln; ~eek;ng to do their p;ln un 

impor1an! 1001 in il cilil~!ingchltri nbl(> givin~. Thtd is particularly-true for oonON ofrei3!ively 

nl(.l(k>5! means, wlm disproponionately have utilized tile ch;lritable IRA rollover. 

In addilion 10 I!>:tend;n~ til<' charitable IRA rollover. the emmcil on Foundation. slrongly 

SOpPQI15 reviSions 10 Internal Revenue Code s..'Ction 408(d)(8) lIlat would make the provisioll 

mOil: cfleeliw. Nonelhel~ Ihe Coullcil recognizes 11m!, in v,,,.,,· oflhe currenl fedcrnl budgel 

siuoatioll. il may flOt prove JXlSSiblc ;olhe shon tcmllO do mOfC Ih311 5imply CKI~r>d;og the 

<'spired provision. ~I ow,,\'er. ihe. Council3sk~ thaI. in Ih". intemlroiale 1<'011. lhe Commil1ee give 

serious considcralion 10 Ihe rcroml. to .$i."Clion 40S(d)(8) pmposcd in H.It. 2502. ·· h~ !'ublic 

Good IRA Rullo\· .. r ACI of1011"'. illlrodllCN by Congre ~n!an Ilerger, Cong.rcs;Jman 

Biulllcnal.lCr. and others. 

1·1.1t. 25(l2. which th" C()Unci! also strongly ~uppon . \Oi(}uld make S«1;on 408(d)(81 

pcmI3n.:nl. as well as implement important revisionS n.: .. -..:Ied 10 make Ihal provision eve" more 

effcctivc. Though ihe charilable IRA rollo"ffcnaclcd as p;lrt oflhc P~"sion ProtCClioo Act of 

2006 '_35 H ~ery imponanl s"."p fl>rw3rd.lIlm provision non~lhd,,5s "as limil • ...! in s;>\ernl 

respe;:15: it was efl ...... ,i\·e only for a f~w years: il "liS limit.-d 10 laxp;lY.::rs a~ .. 70 y, or older: Ih~ 

amounl of gills Wil& Clipped at 5100.000: and dOllors ViCIl." s~cijie'llIy not pcnnined 10 m~ke 

charitable rollo'·crs 10 donor-ad\';5t'd fUllds. supponingorgan;7.atiolls. and pri.·ale foondalioll$. 

Th" "I'ublic Good IRA Rollover A<'1 or 201 I ~ would ~xlend pennan~lly Ihe proYi~;OlI 

authuril'.irlg.d1.1ril~b e rollO\'crs,1f IRAs. ~"d make it ",Oil: .. ITecti,'e by ~liminnting lIlc 5100.000 

cap on rollovcrs, allowing donors 10 make rolluvcrs beginning al age 59 'n. and pcnnining 

rollo.·ers 10 dOllOr·ad.'iscd funds. suppanin!l,orJ!,llnizmions. and private roundatin"s. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.346

Mu~'ng Ih~ ehan\!lbk IfI:/\ mlJo~er ~~a;lable lor &ills III {I,)nor-advj:lC(j ru"d~. :lIlpp<,"ing 

Qrgani'l;llli<;>llS, and linVille fou",!alimlS will ~nabl~ :KidiliQn.al d"no~, pIlrlicularly among middle_ 

in'-"Qrne "",.'ricans. lo ulili~e charitabl~ rollowrs for lite b<-~\\:rlt of or!.'1'nizalion~ Ihut 3rt' 

panicularly well-sulled II> deli~~ring phi lantltropic n.'SOur~es quickly und effectively to 

communitics in. 11(.'W, 

By cl(pilndiog the ~hari",bk rollover Ioall philanthropic tools. includingdolNr-udvised 

flmds, supponinSor!;aJ1intions. and pnv:lte fourldaiions. charitable giviog would increa$l: e\'cn 

ntl)f'C, In p;trticular, community foundations. "hich m"h- as much as two-tbirtl ~ oflhcir granls 

from donOT-Dth'i5Cd funds, would Ix' nble 10 ultract new sources of supp<1n from ,'itltin tlte ir 

commullities. The..., new gin~ are f"IrI;cularly imp<1r1aot for sOIall community foundatioosIhose with less than $5 million in lU's<:ls- ,",'hidt are pani(.'ularly dCP<'oocnl un dooor-ad\'is~ 

funds 10 pm"id~ the chari ~ble rt'5O<Irces tltCirc('Ommunllies nlocd. 

Studicspy tI, eCouneil on Foundatioos found thm, i'l 2007. donar-advised funds 

~ccounlcd foro'~rooe_thirtl oran COIIllllllnilY fOUOO~lioo 3;;sds and 62'1-~ oftlt~ir wt,,1 

gmnlmaking. In addiliOJ1. lICcordiog 1<) ~ =<,nl study by 111<' National rhilanthropicTnlsl, lhe 

Jl<lynU! rnh: fmm donor-,tdl'ised fund.. ,,'as 17.1 ~ in 2UIU. N(}r was that high payoU! rn!~ an 

c~cC)ltiOfl: dOIl<lNtdvis<'{/ funds h:lv~ p;lid out mort: than 16% of~s.;cts annually for at l!:as! four 

Ye!lTS. over thr.,e limes lite minimum required fOf private foundations by foocrllilull. Donoradvi:s<'<i funds a1.", h~vc c..~pericnccd tremendoUS" growlh. Donors contribUietl S7.77 billioo 10 

donor-advi!>l."(j funds in 1010. an increase of25.5% compared with 2009. 

The Council also has f"llnd lhal donor41dl'isC<\ funds are. n parti~ul3r1ycncctivc 1001 fflr 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.347

middlt·inC<lmc Alll~riean~ 10 tllgag( in philamhropy. With mO!iI community fouooations 

accepling a donor·advised fuoo in Ih" "mgc of 55,000 10 SIS,UUO. dmlor.ad vi.ed fWKl5 a", 9 

philanthropic vehicle IlUIt can go to "IJr!.; imm.-tli~tely , >I panicuJ:u\y valullh 1r-~it given currenl 

demands. Be<:ausc donor·adYIsed funds are so crilicalto Ihe woo.: of communily fo"nd~lions 

and 11'1 Ih~ philnnthropic or gcncmtly, il is \'el)' impor\!lllI tlml r(>lIndmion~ Bl1d donor·advised 

fund. bi.- able 10 pili assc ls frllm IRA rollnvers In work fQr !heiroommunilie~. 

Donor·ruJ\'ised funds. supponing orgalliznlions. and priva!c foundations. along with 

public charities. all pia ), critical roles in mceling [he needs of!he cO"'lHw,ities Ihey serve. Y(t, 

whell enacling section4(}8(d)(!i), Congress identified no D:lsis for limilingl'haritsbk JRA 

rollover.; 10 c..'rIain philanthropit ""hieles. /o.·lo,,-'iwcr, to the ~H:rIlth~t sueh con~cms c~istcd, 

they were fully Iddl'1:SSW by reforms r<"iatingto sllpponingm!lani~aliuns ,md dunor-advi$4."<l 

flmds BIS([ enacled as part oflhe I' ~ns on I'rol.:.:lion Act. 

For all those reasons. the ~Pllblie G<lOd Rollov~r Ad of2011"' meri\.'i enaClment: il will 

provld., phil3nthropies "ilh val"abl~ additil'lnaJ lools "ecd~d to f"lliilth.:'r missions. and help 

mcclthc growing r1I:,"<ls urlheir comlllUnilil:'S. 

In sum, Ihc Council on Foundalion urg~s Ihis Commillcc. and Ihe Congress. 10 OCI 

pmmplly to e:-:lcnd the =cnlly pircrl charitable IRA roUOI'cr. The Coundl alS([ :lSks that.;n 

Ih~ int~ml<'ilial~ tern. Ihis Commill<-e and rhe Cl'lngress "ork 10 enaCI needed refonns to the 

chm;t~ble IRA rollover by passing II.R. 2502. ·'rh.: Public G<lOd IRA Rollover Act qr20 Ii" . 

l 'h..",k yQU again for Ihis opportunity to pre.>cnl I"-'<Iimon)'. 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.348

M.~ 16. ~012 

fkn' Sir 0' Mod.",. 

CR~ FOAM 

Crt.,;,..· F,"m {"0IJ'O" ';"" .• I •• di" ~ ",.nu( •• ,ur<f of lbon' .,... 1>0.1", ... iod lu,b,,,,, hl,d" .or< ~;". 

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I~ be i,npk,nenlcd if Ih< lock \,f <~n3i"') ' o.>S\o<iOlN "ilh 'ht 1'1(' "",,,in,,', '0 ",due ... oUr "" ·.11" •. 

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timea. ",os,ibl<:. 

fhooj;h emu;,. ~o .. n l''''J'Ilrauon "a. om ;n,-.,llod in Ih. wil\<l indOUlr)' wl'k.'n Ih. 1al;1 pre ""rin:<L 

We hal • • i",. i"'($,,(1 mitU",,; 01" .... ,1101'\< in rqu'l""cn,."J fIt<:;lili~ 10 &OPPV" thc "irld ioduo",', C"'~li'. 

1'0001 C<>rp(nlkm hco<!q"o"e",J In !'''''\On Mkhigan. no" h., 2 r"dllli,'> thol !ui'I""" the "[IIJ inJu,t", llnd 

nil> ~"", 14 yo"", d",di>pin!!,\)IIrComp<l>il0 S~>1"rn. [);";",,,, ;"'V a i.hlubu~in.». Oil. Mour I""ilit,., i. 

,,,,,.1,'<1 I" Fool<'" Michi!!,," .ho ,nll<...- in '< 'n~",""1 Col"rado, ['''~'1h'-''-lh'",,, f""ililin em.,.o) ",e, In f,,11 

,ime <"'I,loy •••. 

On d~uaJ)' '~ ~Ol~ .. ", loIrj;d IOu.<lo"o<t&lU'\IIIntN ~ 2U" ",<1..01;00 in prudUC:lion fur 201~ ~nd ". 

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en;,,,, 00 <I," <USI<>mtr. 2012 .. I .... IIfl>j«'i"n, BOS\:d 00 IIhul ho> h.rPCntd in fl'Il'vinuJ seMI whtn ~ pre c'rtirJli<JI' hi' 1,,,,,"oJ ""'fth~ in<hl .. ,)" I am .u~ Ih., Ih. lo"ge, "0' "'rr=", .. il'" in 1I'.,oi"II'OI' del.y 

""";'ll! a PTe O"~"I\oo'lh< m",~!ho 21/12 ",Ie> proj''<liM' ",II lit rtduotil, lA" ...... I .. f<)r 21/12 ""d "h., 

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I~ be i,npk,nenlcd if Ih< lock \,f <~n3i"') ' o.>S\o<iOlN "ilh 'ht 1'1(' "",,,in,,', '0 «due ... oUr "" ·.11" •. 

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c_'rirtllioo has 1""",,'oIl <wer Ihe induS'l). I am .= thaI ,ill! IonS" oUr ."I"""""ali ... ·S in WosJ!I" ~lon ""1~)' 

~--;inl!" I'TC c."e'llSk>n Inc nWr. Inc W1! sale. pro)"",ion; ,,;11 bo: red""od.I.Olle, ",,1.-. fur ~(112.nil "h", 

wjl1li~.!) bo: a di .... '..,u.20IJ iI1li~c1y r...-,c ".,0 e~illl>c: bu5incs>. 

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n""sh "'a1i"~ rOil'" C"IT'",,"i,", w"" n<>I im"lwd in <iI. wind indu"I)' when ,I", fa" J'TC e~p;",d. 

I'll: ho,' •• ,''''. i"".-'ed milli,,, .. "f <Iollan in '"<111;1''''''''' .lId f.cili,'''' '''&<ll'f'O'lthc" il><l i"d"my. C"""i,'o 

~""m C<>rp<>r""on h<:IdiJ".n' ..... -d in ~.n''''' Mi<hi"""., nnw """ 2 f"dfi,i« lh., sUI'f'OI' ,n. ",rul industry ond 

h .. sjl<1T'4 )"'al'S do" ~I,_pil\~ ""r (''''''p''''I,. S)'SI.:mj' Di"hion In ,,, I ~I. bl. bu,i","'" On, "roo. fll<lIi,i •• ' 

l""a",J in F"fI,,,,, Michig"" th.· ",h.-r in L""~II"IO' C,\Ii)r:W". T''!;t'he,'iIc,'' r .. ili,i"" .-mp ,~ mI." 1'25 full 

Ii", •• ,nplO) «"lI. 

On FI.'bn.." 2'" 21.111o(j' f"'llcSl c"Slum« annoou.eJ ~ 2Q% re;ll<c,i"" In rroJu",i,,,, I", ~012 <>nrl "" 

"'" unl) on.: m,,,,,h in'" Ih.:.~'''''i Til ""'Ihis i. a sip! Oo.l,1I1< II<nJin!!,I'TC .spinllion Ii )I,,'ady h",in~ "" 

,·11"" "" ,." .... "'~"'~r· ,1nl ~ ",t". r-mj<,c,;'-'" 11._.1 "" ,,~., ~., ~"rr<neJ in I""<" i",,, !00 ... ",rw,n 'he l"I'C 

c.' pi,... , ... ~ .. l,,,~n,,;j nWr th. indu"ry. , .m "'''' ,h., ,he l'IOlIc,,"'r n:prc""","'i,·c. in 1I"a.'hingmn dda) 

NlSing' p're .~,ens'(In ,he m,...e 'he 11112 •• 1", projec',,,,,s will be ""lut,"<I, I ""or ""Ie< ,o.2111! .... <1 "h., 

"ill likely Ix 8 <li';o:;tmus ~Ol J "i!l i~cly f<>re,' u, ()e.~ i""" l7uS1"c<~ 

Again "n April::!]'" lOll,,,, "'., IIith ,"" 1"'1;"" """"",,",. r"r '"<: lib' ~ )'cars ~ h."" had. 51 

\I'<:ek f<>rtt"" 'o'ou, prt!<luc's. I" "f'he """Ctinl\ wc on ly hod" 1i,1'«'" f'" ,h. ne" 3] M~L;.s. ""'bon ". 

lisked fur :lddilh",.1 Il1filn"u',()II "lth "'*"1 '" Li>c folO."COSI "UI <u"<>Inel ",,,101 n," <()m'~.nL d". '" Lh. 

i"'I.~ili')' in 'hc """kc1, 

A! of MOl I " '20 11 "c h., .. fro~"" OIIr hI"n~ .... d PUI I\,nh • ..,. <"IlliAI In' cs'm~nl pi,., en hold. I'hi. I. 

n'" Jue'~ OIIrunwilliILgn.s. ,,) '",e", ' .. an: "nl) rclP<l<'Jing ,,, "hal ". "'" h.pr<=ni"lIlu ,'ur inJ"",) . A, 

Ih,- ."In"- ,iml.' I hUI"< "'mll"in,"" to "Uf 11"",0/ "rOi","",.,.,o 1'",I',g«h,-, a~"n,,,Ii,b,,i,,n pi"" uOO un I. •. ';, pia" . 

<Q be i",pl.,,,clI,e<! if,,,,, I""k "feCf1";''')" ""'''CiB,~d "'i'" Ihe I'r, CI,,"im"~ '" ",duee pur "'\ c""~. 

\I'c .';I"",gl) "f};I.' ,1,;, c(lOlmiR~ '0 imOlcJia,dy '.~e up lin l.,;l=io" "f'I>o" ind enef};) prod.el;"" 

UI~ <"'<li1. 

Thon~ ) (\U for) our <(In;idl"r.llioo 

D"'d S'u<~ 

{""IIcml M'n.g ..... Lo"g","'" C,,",I"""cs 

/800 Plk~ Rood. /.m'gmQnt. C,'/OI"",/Q 80SII/ 

1'130J. 714]11fJ.I ~ 19/11 or fJ JiJl.n4 OJII 
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424 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.355

CROW TRI BI;: OF 1>IO/'\'Ti\NA 

T "Sli"",,,)' fnr 

Uni • .,.... H llo"H C ... "'mitl~r 0" W~Y' ~n oJ Mu n., 

llbc mmitl~~ (I" Stll..,1 Rcnn"~ Measur"" 

il EA RING un 

"C"IMi" £.. pirin ~ Tax r l"1.l,'l.iuos" 

A"riI 26,20I Z 

1"lroIlu"t;!}" 

l'hank you for the opponun;ly 10"~ Ihe views atKI cOncern; flh~ Crow NUlion on Fl'tk'ral 

(3); pol;cy, spttifically on Cl'D3;n c.xpiritl!!, tax prol'isions. Given rhallhe Crow Nalion's 

1"l'SO(ln:c~ are primarily energy-based, our C(ll11mems today f(lC us ... d 110 ttfuin expiring laX 

pl llVisi(t11~ th,n di~clly impacl Indian CIlCl"!l1' del'ciopmcnl. 

The Crow Na ';on ;s a fcdcmIlY·!'I."'\:ogni~l'd sol'ereign Tribal j;'}\~",u'cll1located ill SO U(ill'aSH.'nt 

M{)n~1na. The Crow Nat;un occupies a n..'servatiun ufappro~imalc1y 2.2 nlillion acres, "i,h 

abllndam lIalurnll'tsourc~s ineluding COllI. "il. n,Ill'!"JI gas. limeslollc 'Illd bet1t"nil~. Wt' 'llso are 

also aClivciy wurting to develop hydropowcr and wind powcr projecls ulilizin~ renewable 

encrgy reSQUfe..,; within our rt'!;<."1va tion. A$ lIdl. the Crow NUlion i~ uniquely positioned 10 

clInlribIJt( to the- ener!!y indeiJ(tKlcnce "f o~r counlry. 

WI: belitve tMt e,i~tin!!, tax ptU"isj"ns Serve to help counler the iml"'ct "rll~ many n-gulslory 

ol",la.,!es lacing energy dc,·elopmcnl in Indian CoulIl')·. Wc invite Ihis SUIxOl1l1nlUCe to 

~Vl\sider huw Ia.~ policy can ~Ip 1eV<' lh~ playing rodd IQrent. ... g,y oJevelQp1\lt:lll in Indian 

Countl)' mId help rcali~~ lhe economic ,·al"c of such T<..'sourccs nOI only 10 the Tribes Ihat own 

IIII'm, bUI to ~urrollnd ing local communities and the roation as a whole. 

C(')Dtinuing 10 pn~vidc tax incentives to Crt.1h: energy jobs in Indlnn COUI1!1)' will help OVC .... 'OI11C 

otherou.13dcs 10 energy project de,·clopnlcnL and "ill build addili"roal nalional capacit), 10 

c",arc en'n mllri.'jobs in the MlionaJ economy. This is an opponunity Ih~t ctumOl be misiiCd. 

While wc strongly suppon pemlanCn\ extensions nftltcsc tax pmvisi<lI1s 10 suppan Innger range 

infrastruClure projttts. we urj!.e C:o,.gress to cSlCnd lite ~p irll1 gpm" sions Icmpornrily umil 

bro.1der cOltsen~"S el111'r&es for p longer-tcon lax pIIckage. In any 81\"I.'n >ear, tit<: lrio oftnx 

pmvi~iolls disclIsscd below providcs crilieal be~lj,s 10 triba l cnergy projects and lribltl 

to,·cmmcnB. 
425 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.356

Th<:re;~ an esl ,malcd. some behe,,, consCl'1.ah,..::ly 56, 9 binion \Un~ 01 coa l held by Ih,' ('row 

Nalion. Thc Absalo~a mine outside of Ilardi". f., lonlnnn produc~"S 6 million Ions of co:\l 

~nnually; o,'cr 175 milliol1s "flons sin<:e 1974. The mine annually pII~ s la. cS and ffi)3ltics 10 

lhc ('mw Nal;01110111lil1j1; 519 mi!liO'I. whi~h;s (.0% of our on· l' ed~ml budget. The mine 

pro~idt'5 s~illcdioM 111.11 pay :516 lIIillion: 3g11ln cnliclIi in nurNoflOmy which Slrul!.!lles wilh 

nearly 50'10 "'l<'lllplo),mcnt. As a souree of jobs. crilicallinanci31 sup!'on. ond US produclXl 

energy. it is nbsohndy cnlicnl lhal il remain o(X1' and compclili,·c. 

A ~cn l OUlage al Ahsal"b's largeSI coal ClL'llon.er·s power plnm will hunjobt; and "" 'cnues in 

1012. and ctt'p)w;ilC'S Ihc 11(!~-d lor l11uhil'lc CllC'1lY projoxlS 10 di"crsify our revcnue sources_ 

1'0 111;11 cnd. wc ha"c bc<n developing Many Sial'S, a plBIll1cd Coal·I,,·Liquid, (Cl l) planl. The 

origilll'i plan~ called for a Sinte of.he 3n dean coal f:l('iiiL), capable of producing up 10 50.000 

barrels (>r 'nore of liquid producl5 per d"y ultimately ~ liquid fuel '-1Ipahl~ ofreplacil1g I>il ior 

uhrJ ... le3nj~1 olld diesel fllel. w-hith lranstales 10 a ~igll iflt 3m n-duclion in the need ror 

imponing r"reign oil. and in Lum tomnlrulc, to national security. It WlIS 3nticipall-d Ihal Many 

St~rs, :,5 designed, would create many jobs - up '01.000 eonSlruclionjohs and a rJnge 0[250 to 

9()() pr;;.:luclion jobs depelldenl on Lhrough,puL Aod wiLh fuil carbon .3pture alld se-qu~LrJ iOIl. 

M,my Stars s.c~ms to be Ihe t..-st way to mune';zelhoJ Trib,,'s v"-'t cool resunrec, in the longrun 

\'hiic 001 tomributing 10 the climate ~hangc problem. 

But ullcerlaimy about nalioll~1 ~nersy policy has made il dir1icult 10 anracl in .. ~lmcnr furthis 

CUlling .. 'dge project. Rcguln'ol)' uncertainly combined willl expiring lax pm'isioll!; "'8~C'S 

!i,lme plnnn;n!!, quile diflieult. FonLmately. l ...::hnoiogy impru\'e",cnl~ aT<' making u smaller scole 

fadiilY fIO"",iblc. We arT clllTemly worl;ing 10 bring in a 1)("-" tk'elopcr and :;taniog 01. ~ smaller 

scale /8.000 barrels per dllyl. "hich is now more feasible due to I«hnology impro\'cmenLs 

In addition 10 Il,e Abs..loka Mine and Ihe Man), Stars en .. I'.-oj.::.:!. Ibere is good p<.>lcmial for 

addiliomll de\'(lopl11ent of wry lo"·sulrur''OlI1 on the R(sc .... ·alion Ihat is d~pcndem 011 rail 

access I" Ih" WCSI "O>ISI. This "I'I ion is burd,'I1\'Il by WIl'" <"OSL d;s3dvanla!:~ and .ddi.iOllaj BIA 

rq;ula,oty hurd In. as compan:d LO l1(!arhy h-deml co.,!. 

!tN-enl ~"rlonl1;on h3S fouud I1<11UruJ gas resc .... ·es "onh de,~lnpillg. bl.lL at!i"ity Ila~ bo.·en halt~d 

by Ihe rnarh(.S ~nd (h~ Bun:~u oflaoo Manng~mcnt" s Applicalion for Penn;1 h) Drill (AI'D) 

fec ~ of$65 00 l"'r wcl!. Off~rt:Sc",, a';on pcnnil r~es "omp;.lre al le~ s Inan 5100. Limited oil 

,pl""'~li"n ~nd d~"cl"pm~1IL is occurring IIc~r the ""~Iem edge "flile Rc"'r""'li"". 
426 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.357

Severol years-worth of wind datn indicat~~ u steady and reliable Cia" 51b wind reSOllree in 

severnl ~rens of the ~servmion located in dire'l pl'll~imit y to esisting tmn,mii.Siotlline5. 

Ikcallsc t~ wind n'SOuree ~n'as CI\<":OlllpltSS lands held in ~ I'ariely ofClwnership fl'Iuem~, 

illCluding tribolltl\l~l, indi vidu~llriballllconbcr niJOllnC1l1S (m~ny ofwhith Bn' highly 

frncti<rn~ edl. nnd non·lndi an fet' lands. d~wJoping Ihi, resource has pro,"~ 10 be a challenge. 

l-hdro~ 

The rl-cent Crow Walcr Right~ SeH!elllem Act of 2010 Y"ms the Nation ""dll.iw rights 10 

develop and n'arkc1 h)"drQ-flOwer froltllhc Yellowtail Alk .. bay Oam. Preliminary 1,lanning is 

undcmay. To date , the plan is 10 build a 5111.11. 10"_iI,,.d h~drOp<",cr faeilil)" with an eslima led 

capacily Qr 10 MegaWDtlS 10 $upply the-local "' .... 1 e()IJl"'",tiws Ihat provideel.,,!ric power to the 

Reser..-ation. 

The lease approvoland den'topment p,,>ecss Is bullicnso',H.'. SIOll. and complie"ted. RegulatOl)' 

r~'<lui"'mcnts for apprniSl1l, Bnd w rlace acct:~ approvals to conducl ""plornlioo un Indian Inlst 

lands. alonl; with slow e",ironmental ~ssmenlS.. crerM dclay~ and uucenai01ies significanl 

Cllougb 1Q [J1ake our proj<:e1S llOIlo{:on'l"'liti'c. 'ilJese types ot"burdcns an<J 91hcr limitatiQns in 

~JC redcT<lll"dia11 Jaw tcnd to di'iCoul'lgt' investmenlJ; i,o,.and ultimatc!y devc!opmcnt of our 

proj~"CIS. 

I""ompicte land n,<:,~rds. inndcqualc UJA ~1.1mng. and surfacc Innd frM:tionation add more 

burdcn~ to energy project. on Rcser· .. ation lonlls. in Ihe limn of cx\cn~i\'c Land work. mineral 

righls re!iCareh_ pnd hundn'<1;; ofsurfacr landowner consel\\'. 

Effcct;ve Federal \lIX incenlives are l'Sst'ntiaIIO hell' offsct :;oInc ofthes-e ext'" bu.rde'lS. 

While the existing federal tax ;nccnlil'cs ..... ork to en~oumgc i'wc~tl11cnl and dcwlopmcru on 

Indian energy projC"l:t~ and to pro~idc critica l sUPflOrt 10 ongoing triDaI ~ner!Z)" proj~ls. their 

uscfulnc~, is linlil~d b) II~ kngth of the;, appli.ability. For exampk. the Ill.'; int~nti\'e<; ih,lt 

ro.ve ..... ori;cd to k«p tm: Ab>;alokD mille oflCo ~"d compelitive ~ince 2006 nrc due to expire neXI 

year and >() cannot tp", counted up<lTl by investors .on~idcrin~ support ormin~ e~p;!nsions and 

"Iher ue"" lu"g-h;:-"l.l-lillle"ruj«l" '~ i,,\'c,m,e,,!~ 110,11 wii! take 5 - 10 }'ean; tu bl:gill l'ruducilll!.' 

Tllal sa id. wc ~tl'Ol1gl)" rcwnllllcnd lllal tilt hldi "" Cool ProdUC1;OIl Tax C .... -..iit, the accelcraled 

deprl.'Cialioll rrovision. and the Indian Wage Ta.x Credil b< i"l'lu.bJ in Ih" e~tcndcrs pacltage 
427 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.358

ConlY""" consider,; Ihis )'~ar. We also s!ro,,~I} support !h~ India" Cual I'm<luclion Tax Credit 

and the "",cd~rnted d<:pr("{:iation prul'isioll bein~ made pemmnc"t. along w,lh SOme aliditi",ml 

modifications. We re'''>I"mend that !he Indian Wage Tax Credit be refashioned to mirror Ihc 

I'Cry Suc<:~ssfu l Wr>rk Opportunity Tax Cr('(jit. whleh wil l be a much more Cflc~live tool to 

eneourn!;c employmcm On re5cr'lationS. ,' dCI~ilcd c~pl;lnHti(", of e~ch ()f thc", three-ta.": 

pI"Iwisions "ilh our recommended changes is nHndlCd. 

E.~tens;on of Wind En('f~ I'roduclion Tax Cre-dil;~ also esscnti~1 to del'elopmcnt "fTribal wind 

resources and ability lor tile Tribe 10 make direcl use ol"l/tt, cred;\ w;1I providc options for 

o ..... l1(rship and ('o,Hro!. 

Hn~lIy, lie recommend c~ten,.lini! Ill<' cxpimtinn d~\e M \1Ie current SO...:ents pcr Il,allon 

alternative fuel <"Xe;S\: tax credit for a IX'riod of 10 years follol\iogslart·up for tho;;~ co.,l-toUlluids\CTLJ proj«ts starting constl'1.lCtion prior to 1020. 

Co lu~ lon 

Givcn our va~l mineral resou,""e$, tite Crow Natil'''' CUll, aoo should, be sdf ~ufiicicllt. We 5.'d 

to d~lop <lur mioernl resoorces ·in:m K<!nomically Klund. cl1\"irunmcmnUy n."'Sponsible 300 

safe manner Ihat i~ ~()n$iSlent "ith Crow culture and bclid,. 

The Crow people me tired of ."1Iying 1001 we 0'" ",;;ource riCh and ca~h pOOr; We respectfully 

rellUCSt your assi'nal1c~ in !;CIting the foundmion lU m~ke our vision ~ ",alilY. 

We h~"c been working to dcvelop ollrcncrg,y rcsourec5 alld to remove obstacles 10 successful 

de\"i:lopm~nt. \\'( hope to build a oeM·term future when our own n.'l;<)urccs. in our own h.1I1ds. 

provide for Ihc health. hopes and future of our people. 

It ~ critical!I .. ,t Con~s M't to protee! Indian nations' ;;o"cr~ignly Ol'er lheir nnlur.llre;;m,rccs 

and secure Indian na1ions as lhe prinml) governing entity mer lit~jr own homelands. This will 

h~"e nUm(rollS ""ndiu f.xthc local conunulliticli a'i well QS"lhe f(de",1 government. 

The Crow Nmioo hols been an (,lIy ofthc lJnited Stales all through its history. Today. tm: Crow 

Nation d""itt'S 10 dewl,)p it~ ,·a.l '\lIlura.1 resourcn "Ilt Illlly for ilSelf, bul to once 8g~ n help lhe 

Uniled States wirh a "C'" so;,1 .. Jchicvil1s.encrgy indcpendence, s<'Cur,ng a ~omcslic supply of 

I"aluable ~ne~, J"d ",d""iog ilS dept'ooctJ"e on foreign oil. 

Ilow~\ er. our visi()Jl CIIn only become II rcality wilh COng",:ij;' D~ iSlaocc. Mr. ChainoDn anti 

5111>\:0n""il1"" nlc",,,,,rs, lh~nk you al!a;n for lh~ opportunity to prQ~idc tcslinllln) on how 

f~dernlta~ p<Jlicy and iocc!lti\'cs ("lIO help level lhe. playing field for looian Energy development. 
428 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.359

A1TACIIM £NT 

F. pb," 'i lln ur I'r ll po d Ind i~ n u:·lnce n'i, ~ ndm II '~ 

Th~ Om"i/Ju,,' 8m/gel Reco",:i/io/ion Acl oj 1993. I'ul>. L. 103-66, 107 Seal. SS8-63. cOdified ac 

16 U.S.C. 168m. 38(b), ~nd 45(1\). (mIvidcd ror 1"-0 IR<!iilll reSCTlla,ion-ba:lCd FcocrJI tax 

incenti",,~ ~iSl.ed t() inc,,·~ investmenl and employment Qf1 Indi3n land~, The Iheory b<'hind 

lhese incenlil'ClI was Ihat 'he)' would act in llIndem 10 ~"eoumge pril'ale SCClrn- in\'eslm~'1" and 

economic activilY on Indian Iinds acrosll1hc Ul1il~d States. Neither incem;\'!" is available for 

glIming-rdated infillslructure or uClivilies. 'fh<, illcelllil'cs -- 011 ~ee"lcruwd dcpn-cialion 

allo\lanc" for "q""lili~-d ",open)''' placed in seTllicc on an IndiHn f\:Si..,-.,mio" and an Indi an 

employmenl eredil!ll cmpJoycrs ,,110 !lin: "q,,~lilic'" employees"·· ~pired on Dccl~nbcr J I, 

1003, and hal''' ~en included in lhe ~hon !enn ""slender;; packagt's" of e~piring (a~ j".,elllj"e$ 

since 11lal lime. 

The Indian C!)31 I'rodu!:!i!!n Th.t Credit was cl>atlcd in It..: Enl'rg:,' Ta ~ Incentives J\Cl of 2005 

""d SCTllCS 10 inoculs!" lribc, Ihal choSe to mine !Mir coal n.'S()u,c~", from llle many "agarics of 

lhe mllrkels. lhcn .. by nllowing$Omc sUbility in prodllClil'e usc orlriblll resources for 0", bcrn:fil 

oflh~,;e lribal governmenls and their meJllbcrs. 

Permanent e)(tcilsioos ofth~sc 1.1)( prol' sion~ urc $Oughl in order to nllra<:l long h:rm in\'Cs m~lll. 

Allhough shun·tcnn c~1Cnsions do nol provide t~ kind or cena,nt)' to inveslors "hen il comes 

I1Il0ng.lcm, b1l'jine~ p!3nnin~, lhenlcnde", scrw 10 support ,hc CUIT'Cnt ope"d!ions for lribal 

e!,~rgy Iribes. 

h1tJi n Coal Prollne,ion Tu Cnlli. 

The Indi~" CMI Prod uc,ion ns ered;, is vcr, impononl 11'1 'lie Cmw Trilx'. nit EnergyT3~ 

lneen!i""" A~' of 200S pm\"id~d a bUlii,,,,,,,, I:l~ cn.-di. startin!l in lax year 2006, bused upon Ille 

number ofttlns ofindia!l cool prodUCl...J and $O ld to an onrelated pliny. '!ndiM coal' i~ ~NlI 

produced from rescrI'CS oll'ned by:m Indi an Tribe or held in \rUSI by lhe lJnited SillIes for lhe 

!>eneli, of an Indian Ir;;"'. as of June )4,20115, ond from facilil''-'!l thaI were placed in i~rv ice 

before January 1.1009. The tn eredil is calculaled by multiplying lhe number of tons of Indian 

coal produced and sold by ~1.51) fM~alcnd3r )'CimI 20(J6tllrough 2010; and b~ S2.00 for 

c~J~ndar yean> beginning aflcr 2010_ RQlh dollar al1lounlS win be adjusled for ;nOatio" each y~ar, 

The cn.-di, dIX!> IlOI 3pply for salc~ occurring after Decembcl' 31, 2012. The pUrpO!Ie ofihis t~~ 

credil "'liS to ncutrnlizc llle imJlllCt ofprkc diftcrentinls crealed by SO. cmi,;sions ollowarn:cs 

Ihereby allowing Indian C""IIO remain compelil;,e, 
429 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.360

The Tribe s~eks 1'1 pt:nllall~nl eXI~n.'ion \I) Ihe Indian Cool Pl\ldu~lioIl1 11~ Credit, and 10 allow 

Ih~ "",dil to be u""d agaiosl aitenJali"" minimum ta.'[ (Afo.'fr) for Ihe full pc:riod of[he ~",dil, 10 

e)(I(,l1d Ihe "placed in S~f ... i1:C" dalC (from "by January 1.2009" 10 "by J:lI1u.'\IY 1.1025"}. and to 

dclet~ the requirement thal the cool be.sold In an unrelated pt:r.o;on (10 allnw mine-mouth cool 

conversion r.'\Cilitie~ 10 p.lnicilRl\(' as well as faciiilk-s uwned by Trib • .'s). 

As Ihe original lndial1 coBl proooclion LU: credil senicd to minrmi7.c lhe threallo Ih~ Crow 

Tribo.'·~ abililY 10 continue tominc ('00.1 at the Absaloka Mil\('. and thel'l.'by «'ntinuc prOviding 

emplO}I11Cnl and funding crlti.'lIll!o~cmmental funen,lns, thest: llmendments 11'1 c~ lcnd Ihe 

iCPTC roow !<Ought br 1111.' Cmw Tribe will .'Q{)lilll'" 10 ~ccomplish Ihose critical obj.'C\S while 

allowing tf><, Tribe furtllcr m,velop its ''''1)' large low-sulfur COlli "'S(lureC5 in Momana. 

Acctlenltl'tl f) prUi" i" n AlIowlnet 

In gencl1ll. ~qu,,'lil ed Indian J'1.'servatioo proP"") " is defined as pmpt:ny 1) used by too r:ctI~rnl 

ta~p.'y~r in the Modun ora tl'lldeor ~iness within un Indian TI.'''''I"I'.1tion, 2) is not us.'d or 

located outside Ih~ reservlItion On II ",&ub< basis. and J\ is nOI xquired by th~ LU:p.:I)'~r frum.1 

pcr.;.on I,ho is related to the taxpayer. Certain property ·qualifi~d infrJstruclure property"') mil)' 

be eliglhl~ for lhi.' lICeeicr.l1w ocpreciation ullo\\lInc1: e~~n if Io.;,atcd ("",<ilk an Ind inn 

res~rvBtion ifil C01l)""'U; With qUHli fi~d infr.lStructure prop"rty 1""31<.'d within th~ reservation. 

Sll'-~ifit examples inl'ludcd in ><-""tion 168 lire "mad~. P"\'~r lines. \\lIler ~)'~le'nS. milroad ~Pllrs. 

and communicmions facili1ies." See 26 U.S.c. 168{j)(~)jC). 

Dcpl\.~in1illn schedllle ~ for 'lu~lificd property all: as follows: 

3-)'\.'lIr pmpt:rlY 

S·yellr pmperty 

7-ycJr propl'n)' 

lO.ycnr profl"ny 

15·y.,.. r property 

lQ-year prOpe"y 

Nonrcsldc nll3l r~al propert}' 

::!)'em~ 

J ycars 

4 years 

6)'eurs 

\I yeaJ'$ 

12 yeur.; 

22 years 

l3i!i'ilu:;e rene\\lIbk!lJtd non-renewllbk ~nergy activities rcquirc .,ignifkanl <'quip",~nt und 

physicHI infm..,lructure and invol~elhc hirini! uf13ri!~ nurn],,!,!"! c",plo~e<:~. the Con~ress has 

repeatedly recogoil.cd that tlw 1993 inct:t1til'<'S.1re id.:ally g(."Jr<.'d w en~rKY dcvelupmenl on 
430 


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431 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.362

conclude Ihal 11K' C~I and dTQI1 of calculaling lilt: credit otIlw .... ighs any ~tldil ilmay pl'\,lv;d~_ 

We Ih cref"r~ pl'\,lpcpse Ihal the wal:!~ and hcallh c«<lil be revised ~I ons the lines of,h" nH~hhcrnld~>d Work OpporlunilY Ta~ Ctedil _" hieh is le~s cm"pliealetl and more like]) 10 be If>Cd b) 

II,,,, business co",,,,,,nily_ We propose tu "'lain Ihe prohibilion COnla in~d in 11", c~isling WlIg<' 

and b", .. 1Ih eredit agaill.t I"minalin!!, alld rehirill!!, all emploYl"e lind propose 10 aller Ihe delinili()fl 

o fi lle tern, -- Indiru, RC!iCrvalioo-- to ""pturc legilim"I" opponunilics for emplo;>ing tribal 

members who live on their rese .... ·ations, L'Vcn though lhe actuJI business activity nwy nOI be onl"\'Servation. n.is nnleoolll<."nl would nHow Ihe looinn Employmenl Wag<." CrlXlh \0 mon: 

cOi.'Cli\'dy fuifil i lhe purpose for" hich it was original I)' CII3tll..!. 
432 

Statement of Daniel Jaynes 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.363

I. Daoie i W, Javnes. Wiod 8. Site Engineer in POr'lland. OR. urgr Coogre~~ 10 f xlend Ihr wind ene rgy 

Producllon ~x Credil for ~ period of 10 ve~r~ or more. rhi~ ta~ credll is "lti(;illto the success 01 the 

wind ene'BV Indu~lrv where over 70,000 US worke .. are employed. 

Vou have tlw power lO support a rHess10n-busting. climate-protecting, job-CteaI1nS, comr\1unily51 ,enBthenfng indusuy nd I urge you to exerdse It wilh your colleagues on bOlh sides of Ihe 

Congresslonalaisla.. 

Thaok you, 

Daniel Jaynes 
433 

Statement of Danotek Motion Technologies 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.364

Wr;tlen Comments for the Record: Hearlnl on (!'rla;n Explrlnl Tax Provisions 

House Ways and Means Subcommillee on Selloct Revenu!' Measure§ 

MayS, 2012 

Commen/:5 5ubmiltedby: 

Don ~b 

President &. CEO 

Oa ole~ Motlon Technologies 

.8680 N. Haggertv Road, Cinton, MI 48187 

734.426.5976 

dnaab@danote~motlon.com 

Oa~olek Motion ec ~nclogies, hndquarteled in (anton, MI, de~elops amI manufactu,es highly etHelent 

enfrKV pe rmanent mas net generate,"" and converte,.lor me wind ""ersv martet. W.', •• growth 

<lage company Ihat'lloon 10 commence dellve"l of produclldn syllemslo wind lurbine manu facturers 

In North America and EUrope. Th~ possible Upl"l of the PTe at the end of this yurls something thaI 

greatlv concerns us., it i, .Iready cau,ing manv leading tu rbine manufacturers to sc.le·back their US· 

related bu,iness projectiom in 2013 - and beyond. We believe Ihal. strong US domestic-markel is a 

crilkal co",emOne 10 grewth in our Blobal bu,;nes •. 

Statemem com.ct: 

S.rah Za/., 

Market;n, Manager 

Oanetek Melien Tpcnnologie, 

8680 N. Haggerty Road 

Canton, 1011 48 187 

1: 134.426.5976, hI 442 

sH.@·@9~Qo.te~tru!tioo.cpm 
434 

Statement of David Jordan 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.365

Da ... id ,Iorda n 

3~~ 1 C~nkr RODcl. M.di",". NV n~o;>. 

3 IS-H93-74% 

david jru:!6 7(ri hlllmai I.c<m I 

'rO: U.S. I lou,,", SuocQmmiU..e On Selcct R~v"" e ~W!u= 

FROM: D-~ ;d Jord:l(J 

TITLE OF HEARING: Hcarin!l On Ccna;n E>.pirinJ,\ Tv; P,,)v;sions 

l).ear SuocooHnillCC", 

I um wrillng 10 )OU lOOPY imrlnrins you 10 l"11d ftoml\:;nl supJlOn Oflh(C wind n~rgy In dll"ilry 

1I1mllgh 1:1>. crc<.li,s, loan !lunrunK'I.'!i. grnnls, !!sId mhcr tfiX and regulJlmy provisions. Ark .. 

iovcSI;ng billiotlsor dollars in wind en<'!"g.)', we bave ye!!O ... ", a viable plan Iha! IxndiLl' ~i!her 

the ~"viro""'roll)r lhc N\lcricnn dtiltOS_ hJS1~~d, w~ have Slood by ""d wmchcd our ta.~ dollars 

funding non-Am" .. i,·an "wned conlp;,nit'S as theyd,..yalucour homcstlnd propc.'11Y. dCI'1a<.ie our 

,,"vironmenl, and dt'Slroy our C(lnH11Imil;e-s. 

Pro'C<;I America.;LI' co",n""';l;CS. and;LI' l"CSt'ur<:es; Slop (he Produ.::l;on Tax ('rc<.lil. the 

lowes''''"", Tax Cn.-.;!;t, ""d all other fe<Ic",1 $Uppun of ;ndustrial " ·;,,d c"cr~ _ 

Kind!!!;1 Rewmls. 
435 

Statement of David Rivers 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.366

I. David Rinrs. Qf Hinesllurg. VCmlQllI. resflC'C~flllly ijrgc Coul."'l'SS to ex~end tile "inti energy 

production tax c,,-"<lit (f'Te ) a._ quickly ~s p;l$sibl~. 

h~ PTe dr,vc"S b,II'QI1~ ordQJlars 'n ""vale 'nVelitml·11t in hQmeg;uwn Am~r'(3n w'ud pOwer 

e~ch yem. I h~ve ><""n I~ w,nd fun n ncar my hoU$ rev;l!tlize my ~()mmun'ly - br,ng,ng in 

eonslfUClionjobs 31 tirsl. and m:linlclI~l1ee jobs iulhe long Il"nt. and b",nerJ\ing reVCIIUl.' ft'r our 

community 5Chool~ and hospitals over Ihe li <''1im~ of the Pr'Qjl"i:l. Im'rc.asing Ihe amoonl ofpowcr 

that our cUlInlry gels rrom cieall. hOlTltgro"n. aObnbblc I'eSOlJrCl"S will cre~tc jobs and red,occ 

our d~pelldency uf foreign uil - and Ihis tax cn:dil provides 311 incenlive for Ih~ wind induslry 10 

co"tiuu~ to do just thai, As an clHplQY~c """''''Ily worl<..iug in Ihe wind as~'SSmenl ndd, 

extending the PTe is eritic31 ,o my job and Illy livelihood. 

I ur~c tilt: conllllincc I() takc up an e.tClIsion oflhc wind CIIC'\!.Y production la ~ credit righl away. 

"h.ank }'Oll for your lime:md cOllsiderJlion, 

Rcspect fully. 

[}a\,;d Ri\'en; 
436 

Statement of David Salvatore 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.367

: ... lay9.2()12 

DUI'id M, Sul,'ulore 

10172 Cumpbl!ff Ruull 

SUI//fuuit, Nek' York 13456 

1 /J.ll 1. O U4 _ Ju'''''''4 JuJrll"" ~' """J 

Rr:.: llcaring Oil Cenain Expiring Ta~ P!l;lVision5 

I'or 20 years, ta.~p~y':rs bave plUPJ't'd up Ihe wind c,lerg)' iodllWY. Dt.'Spit~ the Hl~"Y tens of 

billions Qf dQllars ($1..\ billioJI 1<1$1 year) given to (hcm viJ Ihe Pfoouelion lax credit. Ihe more 

rt:c~1H inve:lUllcn! 13 ~ eredi •• and !)thcr taK and regulalQry prQvisions. as well as loaf! gUar:J1lIces 

:md olllri!,\hll'fllnIS. ill<' induslry Iill comes begging_ 

And e,'en lIfitr 20 year.; of such Imge:1SC. Ih~ indu,lry C~n rl()l show uny nl(:,.lningflll lJ.cn"lit 

caneeming any en<:rgy . pollutiol1. or rori:>':)rj pN>blcm. 

In~lead. ruml cOm1llUnili~ haw been left divided. l~nd5Cllpcs degrndcd. bird nnd bm populalions 

IhrclIlcncd. lind ulre;!dy d"indJing nawml habit3 ~ destroyed. 

j urge you to END III.: Production Tax Cl"l:dit. the Invesl1nent T1\X Credit and ~ny other federal 

support ofinduSlrialll'ind ~ncrgy. 

Sincerel)'. 

David,l.L Sul":!lo'-':' 
437 

Statement of DC Association of Realtors 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.368

Edward R. Krauze 

District of Columbia Association of REALTORS· 

500 New Jersey Avenue, NW 

202-626-0099/202-422-5754 

ekrauze caar.com 

Chairman nberl- Hearing on Certain Expiring Tax Provisions 
438 

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439 


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Tho rh)fl .... ~bl. POI 11M 

a..;""." 

IJ,S. lIm...,"nl.!" ..... ,.ti_ 

WII)'O'o<I M""". SubooUIf\1'lI« 

nil Scl<c1 R""..,~ M~ 

ltol L""~"'X1b II ...... Offi« (\";Id,o, 

Wo;hirII!t<>n.D_C.2Q5IS 

'Th .. k )00 fo< )"Ollr ;.,._ m """"""B thIIt Amai<:JID b<!.;i ........ >nil WlI'"J"'fS 110., • • "'" 00<1. 

IIIaI holpo L<l "",,",0" 11><" «>1'1<",,,,,,.1 oo:!iyitico. y""" CQIlIh1,unonll<>!hi> i....e ha,o trul~ made 

• d,ffercnto ond il <k>co ""' II'> O""I'\>1'«'.,C"\l, 

T~. OISIri<I ofC"I"",bll Enlf<J>rl ... l-'1"" h.os inttu$rd ctT\pl~)"''''''~ d; ..... !fird Ibt Ill< ba:s<:. 

."d .1IlIan«d tho l.,.,g·tcmI r,,,,,,1 h<allh of "ur .... ';"n·~ ",,";I4l. II". "laI ,,,,,1 \I> '/KQW1I~~ """"""",de"""""""", in "'" Oi<"k,~rCollUtlb" m:l1 ~)'O" ",,,,,, ... <1 lilt prtJi!t"h1 "" 

quiokly'" pDlSibl •. 

The D,,,,;'I ot'Col"h1b,. Rtviuli .. 1ion At1 of 1991 (Ao1) oI1.nbo!i;r;e.d «<taln rNonI to,~ ""pm<Ii,,,,,,,, ~, """""rage j'Iri.OIe in ... lme-nI in bu,i...-. .. ,0 reo,dents w,lkin Ibc fruorpri .. 

lo.tno. Todo). r <;Ir) "'P"" ,h:1t the ",'.ll,\hllity 01' 11>0>0 10<>1, has 'n .... siSl'i!iCMl1 d,fforence' 

Zot(I 1>01«"' ""pilll gai"" 1 .... "'1ffI1 "r in"Qtme'" """"Ii" ~as bdp<d '" .ntra<t ""'J<>r- .. wC\l,nn .. teial i,.;';;I1' .... .,oj de,-.k>po .. m~, moj", c~ in II>< Oi .. ric,: 

"Th< SS.O(J(I fi..,.ti .... I>0""'bu~ ... '<~It ha$ he lped boo .. Di<trio, ho,,' • ...r~ 

dnon>tically. witlt ,j,,~Le fao'ily I>omo oaIo. , j:ling hy ,,",.0 ... 1 Lh<tuoan<J unil!: 

~""""'i<' Zono .mployer ... , oredj .. lIa", ~"""td • bu:<,nc« .,.-""l1li,,'''' tIw bu help«! 

,,, ~ttroct and ~.;" thoulli<ab or tMtri..1 job. and Inc:n:tse bu., .... pI'Ofilabili(),; 

Sl~ .,ill;, .. "rEnl..-pn"" 7-'1"" b"nIl proce«k M"" 1.vetJ.gCd _il,,,,,,ly I him"" 

dollvs of pnv~le 'n"a""",,' capil4l and ll'-", .... ,<d tb<>u.<.u>d$ of [}i'triOl)ol><: and 
440 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.371

~I"", IMIl$7I)1'1m;U["" ofbondilw boen ~U<d '~ 11"."...... d<;>l"'" ~km<ttwy....u 

... .:onJ;uy tdtI.,l", ;""ludi"l: 'radi'i"' .. I .. ..J public <"-1<1 ""t.><.ol •. 

Put ,;m,"y, I~ Diotrirt Of Columbi. En'crp;J< l.Im< ~ boelt. ro:tS;'l<nl and ""n'in.....t 

..... ""' •. I .,..all) "wm:i ... )'''''' '"1'1"'" "" ,hi, i ...... """ 1Irg< yo" '" eM"'" ,~., e""V"'" loia p'ompt. and f"""",bl< actl"" 00 'his cn,;ea! iniliati.-e. 

cc: 'n .. 'k"~~ RidwdN •• L 1UnL10I$ ..... ml>cr The Ilunotubk EIUloor t!'~n..,. N""",~ Dolo!!;". 
441 

Statement of Deborah Wagner 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.372

""J'!' and ~" . C"mmill«: 

Oebo~h Wagner 

198 MnrkeLSLree1 

Ilrooke>,lIe, MD ~(lIBJ 

,I\\a&l~ !lmA11_,.."n 

J0l.7R250\1 

RC: H~aring on Ct'11ai n hpiri", T:tlC \" '1:11""0115 

April;27, 20\1 

r ,,",p<:<:tfully urge COOgre5' In extend Ihe .... 'nd . ,"erg) prudu<t,un I"" credit ~ PTe) as quickly as poss,ble, 

WlthOUI some ,,,-na'nLy aboot fUiurelK'l;,y. numerous lirm. will "mply refu"" 10 cummiL 1"""",..,1,,.-5 I" 

cI~~n ene'g), p'Qje'<:lS. 

rllto PTe driw$ billions of dollars ,n ",,"ale 'n"esln"",1 in homC!1fow n ,\mer, can .... ind power ,'w:h y~3r_ 

l ocal ,,;nJ fann. wori.: fur «ImmU";I; .... brin&in~ in """-IINeliun jobl . t fjrg, .00 mainlCAilIK'" jutos 'n 

the futUN. ~" Cf!lI ;o g 'C"CIl"<' ror In.:: camm',",I), owrt!l..' l'fo.1'mc Qfllle proj"CI. I"orca,ing Ihc omounl of 

pow., that "urco1.",try gl:1s from de,,,. oorncJ:fUwn, aflOrdabl. fesou", .. is Lh< bt.. 1 thing f", '" lu do If' 

Srture 8 ~fur and li vable fOlu .... :md Ih " I3X Cri.'!l'1 pn:w,d<"l all ,n~mh e for Ih. wind indu!luy 10 

conlinue 10 00 jU11 Ih'l. 

I urg~ IMc"n"n'ne. 10 take up lIIIeXI ... I<'Cn "fLh. ,,';nd tnl'fl;)' producl'on lax cn:dit "<;hI aw.y. 'rhe 

eommin<:e m.m un<L..'1';I:IOO 1/l:II Ih •• Ii lin ~"'" bcUllh~ fUlu," of A",,,,;CII. hma.z;ngJ}·. "'''= Rill 

prn~ldlfl! alll<,mJ ~ I>f I:i.~ :;ubs,d,<'S f¢, foss,l ruel cOO'ILl"n'c. Ihal "~m ~ug~ prolils. Oul w'lhoul Ihc 

dev"lupm.m "fa suS-ta'''.1bl. en"'l:.)' infnlSlrucw,e, we "ill nol loa" • • rUin..,. 1'"",,;1 fuel. lire changing 

,h~ d;m".~, be<.'U,n;"1> inett""'ngly ul""""c, and <hrinkj"g ,nsoWly, 

Think I>fourehildren, lh.eirh ... ltll n"d .... "iIttomi~ nf\l ""ril}' I'I~a~ ,-()Ie Y'SIO "~I"nd 'heproJuOl",n III:< 

credit. 
442 

Statement of Denali Energy, Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.373

T\l lhe II\loorabl. Mcn,bcrs ofT'll.! WDY> wid Md"'" ('omltl;ttu of Ill;.- 110"",,, fRepresc miv~ " fll .. 

Uni'c>tl S,"ICS or ic ~ 

1(.: The cX lcn ~inn " f,he ,,'im! CfI<-'fg)' prOOuc 'io" lux c,cdil (P'Tq 

I. Cun J<>hn""," ('EO "r Ilo'''''' ~n"'V. III< .• ,,.j 1'""";,,,,1 or lI.nl .. 1<l Wi"" Fa,.,... I.LC", "''I'"'' b~ ... Min",',,,,,. 

am "rl'i"~ '" , .. " o"mml".,.:, U"" 0'" N • .,...,rull) u'l!in~ ·o"~. ,0 ~,!.....:! u,. "io>.l '''''!'i;) """""Ii<m I~" .<Ni, 

(Pl'C"la' ~"id'IJ''''' I"""~ <, 

F .......... h "'"..,. ,,111 ",;Ii« !hi: PTC" '" ",i<c • .... i'·.tt Copit1I" '" ~,~d"P and IiJUne.., "or'w.,d .""~ pro;""" ond .""'I"'I;'i,oly proJ ... .., .k.trid,~. 

)) Wh., "ill ""01<1;' tn:.n "," I're, 

n~ i, ,he W"'''''~ (>f,o. .1"""ldl)" 11)0' " .• pm<J ... .." 0 ... ('f\l<Iu.;' ,,,II c., fl'i«;:I . ' """,,,,,,lti.,o .. ,.. ,,;,hin ,I>< 

m.r\,e ,ploc<. ~,' ,"" ",a,I"" "' ","",,!>nl to I't) "~} t: than rnarl; •• rr'«. Thoo He "WILL Nor <"dU"" the r<kt· <lr 

.k<~"";')' '" T'i5<. Qui'" tbc"f'P"Sil<;n r.<t. 11>0 I>,,~j\f ... ppl) 3JKI """''''''' will b<""'pl<»~ '" lh"',,,,,,",. and til< 

1'1"(' "i!lli'd., cuu>< III< price'" n.~re.>I . gi.rnl"" ."";1;';""'1 'orr!) ~rl" pruJu.."'I.clMrkit)". 

s.-.oo.J \1111 to< III<- ","re. of ,!\c ""'"'" ('.pil~l, T'oM<- Ih'l p.J«I>a!oe ()( (>111<",;.., ··m"" .. ite" 00' ,,'] C'& .... 0( 

-"0\)' ~igh "," "nnh- g, ",'01} "",fit.llk" """"""'" <ntitja, 110 .. i> ,,~'" .. ..,. os ... ·.eIOf1O ... rond 0",""""" ~r 

'·" ,,,,,,,,,,",,,,,,,1" ro",,,,.;' .... 'n ,""oh ... !:'. for. r"'''''''' '" ' ... n<f .... ,\000 1''1'(' "1"'" f"""t .. ,,,,,, ~r , ... 1" ......... , 

<,,,,,,rid,), 'hoy pro' ilk '" ... , .......... ..tod "ri",1 R.r I""i"'''' do .... lo"""'''' .0>.1 r.,..ocinJ!.. 

l'i",;o lly. ,.,.,.. hi&h 1>.1 "onh indh'iduab .not'or <n,i'i.".. ",ill", 'ho PrC:s '100)"'. r«:,., ...... J t"rom u.", flO" prod"'" 

p!"t)(1"",""" '" ,m''''''''i} ~)" ''' ,100;'-'" to<m~,), 'h"' I"'<,,"iJi ~ '»,.'1" """" "pi .. 1 r.,.. ,,,,,,.,",,",,' i"", "'I' 

"'''''''''') 

,n ,u~'"t.ary, r",,~ Ro""blio.,. ,~,.""it'''' "'em"",," th<.!'·IC [ • • "to:< br\,al(" (." ,I>< "ron. I."",,,,,,.,,". pI.i,, _nd 

.';oopk. r.". ,,,,- I.><."" ..... .,.~, «,.,.,in<:<. ..... m..,'" "'" rTC run ....... ,II< c"",")fIO;"" or"R"",1 A'Il<nc.·. " t>.J btn<r., rron, ,,", Ik\'~kopm<n t <If<Mrll.'' proj •• ". _10 II< our llankand Wuw! h.nn 1"'<'.1"'" in "",1 Non!",."""" :>l~nh 

D.lo13 .• nJ for ,00...: 1nokrc"""""' <ommi", ... · mom"" .... ,lot pn ' funhoo", ,Ito S«wir:o or.,... :-.:.,ion .0>.1 <"'., •• jQboo 

d .. p in", .1"0<: "'JIll I)' t",i" "r """11\)1 "'~."'pm .. ". "~"'h lI\c look .. ",,,,,,r""I"';"1' .. ~I tho """""'1"_ du,,,.,,;. u( 

m\l m."" .. 1> 

C'IuIJnk","", 

CEO Ikroll ro"."i.v.l ..... 

f'riocifJIl - lbntan.l I'."onoi F.m, ll~41 Coo",} Rood 1l2 _ POBox ~" 

I""fU"I L.~, ... M'i s(u71- .k~hQ"" '68.~'OOIQtTo.< - M.i,,) r,,,oil; ""r1i ~'"'IIIIio:<mIp"""".cQm 
443 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.374

o 

The Denver Center 

for the PcrformingAns 

Name: 

O'I!.ni'~I;"n: 

Addr" .. : 

Pnoo'" 

£-Mall, 

D. Randall WH~S, President 

Denver Cenler fOfthe Performing An~ 

UOl 13'" Str~"I. Denve,. CO 80204 

1031934000 UI2242 

rweelul!!dcpa .O'K 

House Wavs and Means 

SElect !lev"nu,,- Me.surt'.Subcommlllee 

M'.Chairmin: 

As Pre.ident of The O .. n~e, c"nler lor 11l"- Performing ArlS I know Ih .. value 01 charitable ,lvlnltD the 

work thaI we do. including performances On our sl'ges and arlS In eduutlon In our ~DOls. For the 

pa.I""",,,.al ve.r., we have benefilled from IRe,en;"" 408 (dl (8). the deduct;"n of la_·fre" 

di,t,lbu\;"n. from indMdual retirement plan. for charitable purpo,e., The IRA charitable roliover laX 

incenlive, tim e"a<led In 2006 under th .. Pen.fen P,oledion 1\<1, encourage. ch.ri .bl~ Bivlnll bV older 

~dul" by ~lIowing donation. up to $100,000 to bf: gl~n directly hom th~ IRA to the cho",n charltv w"h 

no la~ on Ihe wilhdrawal, 

As VOII know Ihi~ provision lapsed in prior ve ... and then was ril insta ted retroactively. Unfortunatelv 

many Individllal. Plan fo r their IRA withdflwal.lonll in advance, and rlltroac!1ve meaSllreS limit the 

effect~ness of Ihi. provoliem, I urge VDIJ to rllin.tatll Ill. IRA Ch.filabl~ Roilover as SOOn a. ponible 10 

make II pOssible for older Amerlc3ns who try to plan tlleir IRA wilhdrawals elrly in the Ylli' to Inclu de 

charitable giving with Ihe aSlu rance that Ihis proviSion will be in eflett. 

The o..nve, Cemer rank,.s 1M- larKest performing arts in"iluliDn belwlle", Chicago and Ihe Wen Coast, 

combiniog Broadwav TOllriog with Resident Professional Theatre IInder oroe rool, with an annual budget 

of $50 million and se",i ng some 750.000 patrons each yur. 

The trustees and 51alf ollhe DCPA recognize Ihal all o,ovisions will be studied ca refully 3> Co08,e •• 

begins thll prot~s 01 overhauling Ihe ta. code lor tnll/uture. tn tne mean lime, WII belie .... that It is 

ImPOrtantlha t donors and charitable 0'llan1,al;OnS Can do their be.t work, knowin811lallhe IRA 

ellarlUbtll rollove, ta~ incentive will work for them In 2012. 

We Hfll"lly appreciate vour al1l1ntlon to {h is .ignlf"",nt matter, and will be h~ppV to an,wel anv 

Question. VDU mav have. 

Slncerelv, 

D. Aand~1I W~ek. 

Pres;""nt 

Denver Center for the Performing Am 

Cc; Color. d" H"u.e De legation 
444 

Statement of Diana Shaw 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.375

Date: April 24, 2012 

TO: U.S. House Subcommittee on Select Revenue M easures (Committee on Ways & Means) 

I urg~ you 10 oppose Ihe renewable ~(lergy produ~llon t,). credit (prC) e~l e(l .. on. Ouccounlry need. Its 

li"'ll~d dollar} (0 add~n c,itical M~S in I1nlt~ ca re, soci~1 S<!rvices. and tcue econo"'lcde~eJopme~1 ~ 

n(lIlhe sh.m of CrNllnll jobs Ih,u Big Wind and klng Ihe wullhy rtch~rl Pleale lislen 10" wh~1 is lell 

"I lh~ middl. clu., .nd lak .. h~ .. d "f Ih. . from lh.low income e.ili ... n, . 0.. nol va,," 10 utftml Ihil 

la~credlt. 

Thank you lor V<!Uf consideration. 

Name; Oi3n3 S\law 

Addres.~: P. O. GO): 631814. Luna; City. HI 96763 

Phon~ NUlI1ber: 808-565-90 10 

Conlact E-mail Address:Sh~\\.dm@alum.unnc.roches cr.cdu 

Till" uCHt.".tring: " Hearing on C"nain :.xp iringTa~ Provisions" 
445 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.376

Submitted Te~timollY ofth~ Distributed Wind Energy A~50cl~tion 

Suhcommlttee on Select Revenue Me;Jsures 

Hearing on Cernin Expiring Tax Provisions 

IIpril26,2012 

Organization: Distrihuted Wind Ellergy Association (DWElIl 

Name: 

DWEA 

Address: 

Phone: 

Contact: 

f.1ike Bergey, President uFBcrgey Windpower, President 01 

P.o, Sox IB61 , Flagstaff, AZ B6002 

{928J 255-0214 

Jenolfer Jenkins, Executive Director, OWE" 

Ij e~di~tr bu edw nd ,o g 

! am Mike 8ergey, Ihc Presidl!nt of81!rgcy Wind power and the current f>tesldent of 

the Distributed Wind Energy IIssociation (DWEll). I submit this testimony in that 

capacity and on behalf ufOWEA. 

The Distributed Wind Energy IIssociatlon (DWEA) Is a national trade association 

compriSl'd orwind energy C<lnlporu:nt manufa,turers, distributors, proje't 

deve!operN. dealers. installers. and ,ldvocates, who~e prirn~ry mis5ion Is to promote 

and foster all aspects oflhe US distributed wind energy Industry. DWEA has do~ens 

uf rnembl!t companies locilled throughout the United 5t~ll!s. 

"DIstrIbuted wind." also commonly referred to as sm~ l" or ·communlty WInd," 

invulves the use of typi cally smaller wind turbines at homes. farms, businesses, and 

pnblic facilities to off-setal! ora portion of on-site energy cOllsumption. This 

scgmcnt of the renewable energy industry already represents approxirn~tely $2 

billion 111 new energy infrdstructure fDr America's rural cummunities and 

commercial and indllstri~l energy consumers on an anllualized basis. Also, more 

than 80 pcrcem of distributed wind turbines sold in the U.S. are manufactured here 

at hum!'. Weappr~ciate this opportunity II> commenlon certain expiring pruvlsicms 

th~[significantly Impact our industry. 

Backgruund on the Distributed Wind Industry 

Community and distributed WInd iJ; a dyoamlc and growIng segment orthe 

renewable energy industry, It represented 5.6 percent ufa l! new wind projects 111 

the US in 2010 ~nd that figure rose tn nver 7 percent in 20 11. A unique ~spect of 

most community ~nd distribulCd wind projects is that local citizens and 

communities have an ownership stake In these prolects, meauing many uf the 

benefits ofthe project remain in the community, fueling dean energy development 
446 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.377

'hl'Ougfl '~ncw.hle ~ne'lP' pr<>(lurtilln, ",duclng <'tim: 10' .I.ctrld,y. bell fitJ.ng IIlGII 

"""numlel<,~nrl driYi"lIioh ....... ;on. 

Ber>I.L<O community "nd d, .. r!hut.d wind PI'O)"-ct<",,, 'yplcally .mJII .. th,n 

<om","",'.' .... '" ".oj.",. and the "nell)' S"nera''''' ,. often no' for whol ... l. grld 

di<lrH",tOon bu, ""ber for u,e by ~ner&y con'"mers at or n~~r Ihp $It~ of 

grn.ra.ion. they provide """~",,, ;utv"nl3g<" over la'1l.r, con"n.rd" ·~ .. ,,,- powe, 

llroll.'<". 

FI"'~ by rlorl ng gonera.;on riMer 10 II< JIIllnt of oon'""'p"OIl. Ih. d"ploy", .. nt of 

,11.Ulbul<'ll wind """"" can reduc. the n",d fur new <~I\'nh'l<,1 Kt'n~"'Uon and 

U'3Mml",lon 1'01<11111., and ('3n r.d"«, st,..", on vdJ;tinS dl<lrlbul;1In lof .. "",el"",. 

Also. Il<:c<o,,,. of t"""lln"""me,1l and "nlployt"CI'~ ""'nmunily wind pn"e"" 

f'<-quontty have ~ 1110", "gnin .. n' IO<"~ I er(jnomlr Impact th~n utlllly wind pro)o<:.,.. 

often p.ovldina up 10 ,hro" limes more t<Q~omit iml"'''' 'o a rornm"nityth.n I •• ge. 

<"m"'e""a'· .... l~ p.a)MS. Thu •. '''m"",,'11jI wInd project. pro,'idc a puwe.ful 

.'onoml~de.eIOllmenll"'" fur f .. nn ~. r-dn,he~. ,moll bu.ln= . ..,hool.-. hMphl$ 

and .ur" rMlmunities ~'''''IS An,.,I"", at" ,ime wh~n ;Qb growth i.Qfp~mln",,' 

<"n<~m. 

These p,..,jecl!I an~n triucr comm"ni'y In.erest ~nd SUpP"'" to. 'he devdopmenl of 

1"I\~r. "'lIllr· .... I. wInd ~rel .. t< 1".1, In ,u.", gen. "II •• ,,"n "'"'" c~a", dOln • .,Ic. 

tcne""ble . nergy and ct\"a'e mo.e gQOd·[>;Iylnlll"""lol>o. 

In addition. dislnbul<'ll w,nd I"'W"r ~gg, ... lvely pre"'ol .... flU' ."ergy unt,,,y. II's 

•• f}' ""nI to •• rrorlle wind ."rblne. do.ting tit. 1'''<1 .... p!:. 

However ~onlhl""l(y wind prO]Nts 13"" unlqu" challenge< wh.n ro'n[>;t .... d 10 

<onnnl;on.l. utllity·ocale ,vlnd j>Ower. fllnglng fronl ac«'SS to no' "ring, to Ihc 

Inability to ",k. foil "d ...... nt~G~ of redoral "'" !><onellt .. o."pll"- 'ltes< b.rri . ... 

c,,",muniljl wind praj,..,.. h,,,. d~vl""" Inn""a.lve hoanrlng 'U'Ilrturr< to m,"", 

r"""ottl with projt.'Clsln.",,. wtth quall.y wind re ... "", ... and ",..,dktJhl ... ~ 

tr~almenl "rthese prol~l1$ Is ctntralto!hal '''« .... , 

Current Low 

Whll. muth . " entioo In the .... n"w.ble ~Ionrlc'.y Industry has b",," plaad On aJ1 

~"cn.lun of Ih~ PloourUun To. C",dlt (MCI rM ""'~wabl. electrIcity. DIY.fft 'Ultt::< 

.l fn""D of Ih"'!li>lin. fetler~l InVe$lmenlbx CmlliJ ITe] ror~1I n~1!!!l'!.fi 

Pflliff!ljh.olJ.l!lt 2.016. which I. ccucl., to the ,,"n,inued growth of.his emerging 

indu""y. 

In'etTPl R~venu~ Code § 45 enabl~. all olcctrlc;ry gen,""' '''' from wind to ,e(~lve ~ 

PTC for 10 yea .. ~fl~r equipm",,' ittst3I1aU!I", I,m.ldl!<! It I, pl.ted in'" """,Ice by 0."'",,,,,, 31. 2012. inlernal Rev"nu" Cod~ § 48 or 'h~ Cod.- llow. rQmpanll'l. In 
447 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.378

lieu or tht' PTe, to claim a 30 percent ITe for all wind facilities placed inLQ setvi~ by 

December 31. 2012,. In other wordS. under L"Urrel)l law, allY COlnpany that places a 

wind facility into servke before December 31. 20 12 can claim either: 

A PTe of2.2¢/kwh for electricity produced from the wind for 10 yens; or 

A one-time Ire worth "30 percent of the cost of the facility. 

Smaller community and distributed wind projects rely hea~ily on the ITe to finance 

tbeir projects and installation, Ahhou~h the PTe has the poumtial to be Illore 

valuable to spedfic types of wind projl'Cl developers over the life of l~ tain, orten 

larger. projects. the ITe is vitOlI for distributed wind projects because potential 

incentives availahle under the PTe are III·suited to support private financing for 

distributed wind projects. This is the case fOI' three primary reasons: 

I. Renewable energy inVeS10rscannot take advantage of a PTC unless the 

energy generated from that project is soI4.ill.iUbir.s PilOY. As indicated 

above. tlrstributed gcner;)Hon, by its very nature. is designed to be consumed 

on·site. often by the project developer himself or herself, and is seldom sold 

to a third party, This greatly limits the ~ccl'S5ibi1ity and value oh PTe to 

small wind prnject developers, Tbe ITCis not limited hy tbls third·p~tty 

requiremenl 

2_ Moreover, the PTe can only be used to offset pas~ive illgl m~_ This feature 

generally does not impede large. institutional io~estors, because they 

routinely realize Significant paS51ve inCQme that can be offset by a PTe. 

However. because many potential investors in small. community or 

distributed wind projects have inadequate or 00 p;)sslve incoml:'. they aree 

precluded from taking advan[;tge of this tax credll making ule ITC much 

more;)ttractive and valuable to the distributed wind industry_ 

3. Finally. and relatedly. in order to fully realize the significant multiplier effect 

of small. distributed Wind projects on local economies, and minimize local 

oppOsitiOn to new community wind prolects. it is ideal to develop 11 broad 

pool of local investors for these projects, lfthey are unable to lltilil'.e the PTe 

and the ITC is aUowed to expire. this financial and personal support will not 

materiali~.c and prnieClS wm not gN done. 

Renewing the ITe for land·based wind power through 201615 also a matter of p.1rity 

and fairness. Solar photovoltalc projects of any size are currently eligible forlln ITe 

through 2016 and are widely used in distributed appliciltions. In many areas and 

for many ronsun1'l'rll, these two distributed generation technologies compet .. 

directly against one another, Extending the ITC for wind ulrnugh 2016 creates it 

The ITe will continue in forti! for ~mall wind project~ {up to 100kW) placed in 

service through the end of 2016, Also, solar projects of ;lIIY slzt' will continut' to be 

elll:lble for the ITe through 2016. 
448 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.379

level playing field ~mong these t~(hnologies and allows the customer to determlile 

the optimal technology selection for a given site, 

Without an ITC exwnsion for wind projects, federal Incentives will lead farnH.'rs, 

schools. manufacturl."rs, retailerS llod communitll."s to deploy solar photovolta!cs or 

(ontinue to consuille non-renewable energy from a centrali"led utility, rather lhan 

providing a broad range of energy choice~, to the unfair detriment of the distributed 

wind industry, 

Conclusion 

For the reasons stated ahove, we urge the House Ways and Means Committ ... e to 

approve and send to the. rull HOllse. of Reprl.'sentatives legislation that would 

immediately extend the § 48 ITC election throllgh 2016 for a ll sizes of wind power 

projects. An ITC e~tension would maintain a Icvel playiHg field among competing 

renewable energy tt'Chnologies, provide business cer1alnty to the smaller segments 

oflhe wind energy induslry that arc generally unable to utilize the PTC. and enable 

it to continue to deploy dean renewable, doml'5ti<'aliy produced energy, using 

American made equipment, to drive t'<ollomk growth and job cre~tion In 

communities across tnc counlry. 

Thank you ag~in for the opportunity t(l submit thc~e C(lmments and we look 

forward to working with you to ensure the continued C~l'ansion of tbis dynamic and 

Srowing Amerkan indu5try. 

Sincerely, 

Mike-Bergey 

PreSident, DWEA 
449 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.380

KEMA!( 

Written Comments for the Record: Hearing on Certain 

Expiring Tax Provisions 

House Ways and Means Subcomminee on Select Reven",e Measures 

May 9. 2012 

Comments suhmilled by: 

Karen Conover 

Vice President 

DNV KEMA Energy and Sustail1abllity 

1809 7'" Ave .. Su~e 900 

206-387-"'1200 

Karen,conover@dfwkema.com 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.381

DNV KEMA E"erg~ & SU5 lnilbll~~ (DNV KEMA) urges the U.S. Congren to extend the wind 

energy production tax cred~ (PTC) as quk:kly as possib~. DNV KEMA. wiTh more than 2.300 

experts in over 30 countries around the world, IS committed to driving the global transition 

toward a safe, reliable, efficient. and clean energy future With a heritage of nearly 150 years, 

we spec,ali2e in providing world·class. innovative solutions in the f,elds of blJsiness and & 

\8CM!ca! consultancy, testing, inspections & certification, risk management. and verification. We 

advise and support organizations afon,. the energ~ value chain: producers. suppHern & eodusers of energ~, equipment milnulactul"er1i. as well as government bodies. corporations and 

non-governmenlal organ,;zations. DNV KEMA Energy & Susla inabil~y is pan of DNV. a global 

pro'lider of services lor managing risk with more than 10,000 employees 10 over 100 countries.. 

DNV KEMA's Cleaner ergy Services business line includes over 250 people who provide 

consulting services specifically to the wind energy industry. including engIneers. scientists. 

analysts, and suppon personnel. In me us, we have wind energy specialISts In our offICes In 

SeaWe. BaSion, Houston, and the San Franci$CO Bay area_ Additional personnel from other 

departments and offICeS- WIthin the company contribute to o~r ....,lnd energy wor;; to provllle 

support in areas such as composl1es B~d materiats. m~rilrme ~nd offshore expeflise. grid 

integration, structural analys1s. ;,"d numerical modelrnQ. and other di5Clplines. 

Over the la31 year, we have had to reduce our wind energy staff in Ihe US by approximalely 

15,*" as uncenainly over the eJC\ension 01 the WInd energy PTC began to reduce the amounl of 

pre-development activity on wind protects, In addition, we've sent many 01 Our wind e(lergy 

e)(pens to wor;; in other off,ces in Europe, South Amen"". and Asia 10 suPPOrt our grOWing 

bUSIness ,n tnese geographic reasons Wilhoulthe PTC extens.on. a SIgnIficant amount of 

additional job§ 'Mil be at risk , Thqse po~itioos are ~lIed by well-educated. highly-skilled 
451 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.382

tectm,,;alorofessionals, We yrge the Way~ .. 1'1(1 Means Committee to taKe yp the PTe 

extension nght away In order \0 save these jotls_ 

DNV KEMA has beef! actively Iflvolve<l In (he global wind enerllY industry lor over 25 years 

The PTC has been the most effecti~e polky mechanism to grow the wind industry In the US In 

Just tne past live years, while the PTC has been continuously available, over 35,000 MW of wind 

energy has been Installed. During this time wind energy has accounted lor 35% of all new 

electric generating capacity in the US. This growth has been complimented by le<:Mology 

advances and innovation Ihal has increased the ethciency and reduced the cost olwind turbines 

significantly. Although the US has Deen viewed as a world leader in wind energy, we are now 

in danger 01 losing ollr position in the global marketplace as the US l aces a standstill in 

development Wllhoullhe PTC eJ(tension, Over 70 counlries now generate wind energy and 

China has surpassed the US on Installt'!<i wind energy capaclty_ 

In additIon to the PTC, 29 slates have enacted ,enewable energy standards. In oomb'inaUon, 

these two pollc[e£ have driven Ihe indyslry's growth. FOlcompanies considering investments in 

the US., a federal PTC in addijion to ElXlsti'lg Slale standards Is crrtrcal lo pro'i1ding them With 

the confidence to make \t1ese muni-mlilion dOllar capital investments 

Wind energy is widel~ supponed by US citizens and IS ewed as a true success slOry. As an 

Indigenous natural resource, Wind energy addresses concems about energy secunty. dimale 

change, and dlvefsification of our energy generation. It acts as a hedge saainst luIure fUal price 

increases, creates jolls, and brings additional re~enue streams to our lural communities. Wa 

need conslstentlederal policy to he~ Iile wind Industry conllnue to thrive in Iile US ONV 

KEMA urges Congress 10 take swift action to extend the PTe to ensure the continued growth of 

the US wind Industry 
452 

Statement of Donna Davidge, Peter Connely, and Candy Rupley 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.383

We are agHinsl and PTe lor ren<!wablcs especially wind 

II is ineffeclive and robbing Ihe taxpayers and ruining ()Uf 1110S1 prisline nature and 

wildlife. 

www.protec\.our-Iakes.org 

Island Falls Maine 

Donna Davidgc 

Peter Connely 

Candy Rupley 

April 15,2012 
453 

Statement of Dorayne Peplinski 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.384

Oorayne Peplin,kl 

Town of Warren Councilwoman 

17Q P".mwoOO RQ;ld 

Ri(hfl~fd Springs NY 13439 

"Hearing on Certain Expiring Tax Provision N 

Milyl,1011 

Alt'" twenty I'f'a .. 01 w~,tin& ,"xpayer dolia" on wind ~ne'ilY the Industry still can not ,urvlve on it, 

own, 

Nolo~IV does Ihe wind lndu~lry .eceive billions of doll.r, from the "production Ii' c.ediT' but 3lso 

another generous subsidy "accelerated depreci ation'. it's 1\0 wonder why Ihi, ii such "lucrative 

husin~" lor t"~ lor~i&n companies that are pushing Industria l turhln", in Ihe United St ate,. 

WInd energy h '0 ex".."'i"e Ih.t many "ales have p.,,,,d mandales that require ulilltie, to purch .... it 

and now Ih31 cost is passed on to the.consume •. Wher e is Ii>eS<lnity in all 01 this? 

The US should be look,n, 31 the !ailure of wind production In Europe; it it .Iwavs easi~' to le.rn from the 

mist.kes 0/ olke". So it make, me wonder i, it about the pmduction of energy or )ust pI.in GREED, 

agarn atlhe expense oflhe laxpaver. 

II is lime to u~ a sdentifk .ppmach In regards to U.S ~ne'gv production. 

Plel,"", reli.1" the PTe Ind S<I\lethe ~~pave' f,om fUrlher wafteful spending. 

Respectively, 

Dor.ayne Peplin.ki 
454 

Statement of Dorothy-Anne Johnson 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.385

Title of Hearing: Hearing on Certain Expiring Tax Provisions 

I, Dorothy-Anne Johnson, Disease Management Program Manager, residing 

at 5149 Rockdale Court, CentreYille, VA, 703-266-4466, email at 

Qursejohnson25@yjlhoo.com , respectfully urge Congress to extend the wind 

energy productioo tax credit (PTC) as quickly as possible. 

The PTC drives billions of dollars in private investment in homegrown 

American wind power each year. I have seen the wind farms In areas I have 

trayeled to reyitalize communities - bringing in construction jobs at first, 

and maintenance jobs in the long term, and generating revenue for 

community schools and hospitals oyer the Hfetlme of the project I'm hOpill,g 

for similar effects as they expand into my area. Increasing the amount of 

power that our country gets from clean, homegrown, affordable resources Is 

an excellent thing for us to do - and this tax credit proYldes an incentlYe for 

the wind industry to continue to do just that. 

I urge the committee to take up an extension of the wind energy production 

.tax credit right· away. 
455 

Statement of Douglas Lawson 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.386

Hearing on Certain Expiring Ta.\ Provisions 

I , DoughiS LUKWOJl, (I (umloK'lIer ill Niom"e, KUIISUS, '<:"''111.'('tji,liy w,!:c COtl,!:"'"s 10 1.')."lc,,4 

Ih(.> wind energy pr/)(iUCfiolllllX credil ((,TC) M 'I!lid;~v i',~ pll.'siMc. 

The Cru,'i.!! Timbers oJS,mll"'fl'>'l K'II.Oa:s lUll' !ialr agricullura/lmd rUllchill1{ ,'u/lie iJecwl)"e 

of its rocky IO{JOJ!.rtlplry. /Jw Ihis i,' ... h)' il hos reamlJ' ~m" Ih .. sit .. OJlhe Elk Ridg ... 

Wind Farm. The wind <'uerg)' prodlwtiou IIlX a<,dil is lI'amformin8 this his/orically 

IIIli/ertle,'eloped ::011<'. 

Tire PTC "ril"!',- bilfion~ ollk)Il.,,:)";n pri\'(Jlc illn','lm,,"1 i" Iwmegrmnt Americ(m \\"illd 

1'0""<" NIdI year. I hm'e SC('II 11,1.' willd form IIC(I' my hOllse re"i/<I/i: .. my n)ll1lrllmily -

bringillg in t"OIISlrJI(:l/onjohs iIlfirsl. {Jild lIIuill/ellllllc<'jobs in Ihe long 10'''11. {lIId 

g<'non/ling TCI'('/1/lejv, (/11/' <"QnUlWl1il), sc/ro()/J ,md ilospilll/s OIW Ihe lift'lime ol/he 

",oje(:l. fn(n'(/~i"g lilt: "/I/(Ium ufpower 111U1 our £'OIl/1lr)' gelsjfom deun. hom('StvII',I. 

ujJOI'dablc ~c:snllr<i!s i. "II exeell",,,, Illin.r.;jQr II)" 10 do - and Ihi. lax erroil prl)"ide.,' On 

il/Celllil'o'ior Ihe ",ind ill<ilmr)' /0 cowinlle {() do j";'1 thul. 

{ ,,~S" Ifll~ roll/Illillee w ~eportfo,",>ruN)' Oil ('.TIel/din,: ,III: II'illd .. nC'~.IO ' p~od'I''liO/f 1(0: 

ere.lil. 

Doug/us LUWJlJlI 

281)./ Ddt"" Rd. 

NiOIa:e. K{m~'"s 671jj-9I)14 

610-819-j491 
456 

Statement of Dwayne Weismann 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.387

Wedne,dtIy, April 25. 2012 

I, Dwayne Weismann, 3 disabll'u residenl uf Sarasola. Florid3 ~sreclfuJly ur£" Congress 

10 c;.;lcnd Ihe wind energy produclion la.'( cr"dil (PTe) as quickly as possible. 

The produclion I;,\x credil enCI)Ul";.lges wind as an energy S(lU~i: as Ilpposed 10 fossil fud s 

"hkh whilll providing much·needed ene rgy for our counlry also prodUCe"; pollution and 

cOI,mll css Olhcr adverse afl"lxIS on our c lean air, clean "alC1' and the overall henlth of "Uf 

citizi:us. Nmural gas is being touted as lh" energy of the fUiure, but Ih .. damage d .. ;\Oe 10 

our 0'10 cilizens around areas used In harve~t n~tuml gas through "fracking" ha ~ shl)l\ n 

signilicanl health risks over time and the long-ICon health risks have yCllo be 

dClcnnined. Oil ~ II velY costly and fon::es us 10 be dependent on outside sources for 

energy not to mention the risk of accidents broughl about by the Valdez & Ih.: [)ecpw:lter 

I lori zon wcll. 

I urgc thc·committee to Inkc up an extension of\he \I ind energy production tax credit 

right 3\\'3y. It is importllnt to cncourugc uhemati"c fonns of energy in loday'S world 

"here encrgy production is so expensive. 

Thank you. 

A Concern<:d Citi~.cn 

Dwayne Weismann 

3655 J lunlington Place !)rive 

Sarnsota. FL 34237 

941-487-8449 

dl\"cismann61 @£m~jl. tOm 
457 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.388

e·on l Climate & 

Renewables 

U.S. House of Represc>ntatiwes 

Ways and Means Committee 

April 25, 2012 

Production Ta l Credit 

Honorable Committee MembersE.ON Climate & Renewable •• a leading .... Irld project de~eloper based in Chi. 

cago, IL urges Congress to e~tend the wind energy productiorl lil. credit (PTC) 

as Quickly 35 possible. 

LON and other developers are at risk of cancelling de~elopmenl projects slat· 

ed for 2013 construction because of the expiratlon of Ihls credit, NOt only are 

development jobs at risk but So too are construction, operations and mainte· 

nance jobs at stake. The PK results In a ,,('Ilnerease in federal ta~ revenue, 

job creation, and economic development for fUrill Arne.;,;:". 

The PTC SHOULD NOT BE A PARTISAN ISSUE. The PTC benefits; rutallandowners, agricultural families, rUlal communitiO!s, utilities, utility cu.tomers, air 

quality, water rewun:es, municipal, county, state and federal tax revenue, 

I strongly urge thi5 committee to Immedl~tely take upan eKlen5ion of tne 

wind energy production ta~ credit, furtner delaying support lor tnis industry 

delavs lIS contribution to job growth and economic development. 

Collin c:s Wnltenead 

Development Manager 

E.ON Climate & Renewables 

mobile: 773.59.3139 

(OlIjn.!!hltehead~n,~om 

./ , 

~ t,).: ~lun'. N 

I\.~.w .... ! • 

H""'~ "m.<!.u. !.I 

• 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.390

Written Testimony 

Submitted 10 the House Ways and Me~ns Subtommittee on Selett Rewenue MeaslI.es by 

Stewe Trenholm, Chief ExeClitiwe Dffiter 

E.ON Climate & Renewables North Amerka, U( 

April 26, 2012 

As CEO, I can tell you our experience at E.ON Climate & Renewabll's North Amerka (f.ON) 

demonstratl'S the wind energy production tax credit prodUCe!; the results it was designed to 

accomplish. 

LON will have iI fleet of approximately 3,000 megawatts of U.S. wind generation by the 

end of 2012. 

ThIs represents ne~rly $S billion of direct foreign Investment in the united States. 

The constructlon and operation 01 these long·term capitallnvestmenl s has produced 

rural economic development In: 

o New York 

o Pennsylvania 

o Illinois 

o Texas 

o Indiana. 

In addition to local connructlon and operations jobs, E.ON has Increased local tax bases 

and provided royalty payments to landowners within the prOje<t boundaries. 

The PTC has wor ed as it was designed to, creatlng certalnw Within the tax code and 

allowing wind energy to compete onan industrial scale. As a result, ourlnvestment, 

along with that 01 other developers, has spurred major turbine suppliers to establish 

manufacturing facilities in the United States, supporting a supply chain of nearly SOO 

U.S. manufacturers In 44 states with appro~imatelv 75,000 lobs. 

Our hope Is to continue wind energy investments in the U.S. Unfortunately, with approximately 

$1 billion of our development pipeline · ready to construer" in 2013, the uncertainty 

surrounding the PTC's future has forced E.ON to delay ordering turbines and 10 delav 

(On~t uc ion ofthe~e projects. 

Unless Congress extends the PTC soon, the financing tor these project~ will be redirected bV OU f 

corporate parent to other projects in non,U,S. mar1<.e ts. Uke other developers, E,ON has also 

reduced staff due to the PTC uncertainty. 

f .ON ~trongly urges the Committee to Immediately conSider and pass an ntension of the wind 

energy production tax credft, The PTe i~ a tax incentive that produces exactly the investments 

il was d~s ~ned to accomplish. 
459 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.391

Contact Information: 

Steve Trenholm, CEO 

E.ON Climate & Renewables North America, LLC 

353 N. Clark Street, Floor 30 

Chicago,IL 

(312) 923-9463 

Steve.trenholm@eon .com 

2 
460 

Statement of Edward Kelly 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.392

Re: He~rjng on Certain hpiring Ta. Provi, lon, 

Dea. Comminee Member.. 

Edward KellV 

lOll Colin Dr, 

Royersford, PA 19468 

Pllone; 610,792,1165 

eMail: ed.loellySi!!Igmali.com 

April 14. 1012 

I . espectfully u.ge Cong.e .. to e>lend Ihe wind ene.1Y p.oouol10n la> ocedil (PTC) ~ quickly ~s po"lble . 

hploiti ng all available 'IOuree, of energy for Ollr wUMry minlmi,,,, au. dependence on foreign source. 

of energy and enSU'el; nOI onlV our nalional security but e<onomlc leadersh,p in Ihe world. 

The PTC drives blllklns 01 dolla.s in prlvale ItweSlmenl in homegrown American wind power each year, 

Thl. invenmentcreale. job. thaI requ ire 'kill' Ihalllle US need, to compete in th e glob~l, 21 ~ century 

e"onomy; JOM that creale produc" and ,eMce, that can be nponed. I oan't imaBine Ihe lis 

rt'milnlng 3 p'eeminen! economy, jf we continue 10 rely only on coal and 011 for our fulure . 

Wind energy II al$O cle an and eltklen! arid..., reduc,,", Ihe environ menIal imll"C1 that our children will 

be forced!o endu,e If we Ignort' clean e ne'IIV, 

I urge the comminee to take up an extension of the wind energy production tax credit right away. 

Ed Kelly 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.393

May 10. 2012 

The Honorable Pat Tiberi. Chair 

The Honorable Richard E. Neal Ranking Member 

Subcommittee on Select Revenue Measures 

CommJttee on WaY" and Means 

U.S. House of Representatives 

Washington, D.C. 2051S 

RE: Hearing on Certain hpirlng Tax Provisions, April 26. 2012 

Dear ChaJrman TIberi and Ranking Member Ne~l: 

On behalf of Efficiency Fir5t, a trade assoclatlon representing America's Home Performance 

workforce (see allached liS! 01 members), I thank you for the opportunity to express support l or 

the r",torallon and e~tenslon of the residential energy etficiency (2Sq tax credit. As large anti 

smal) busine"es that make up the hom~ performance industry - including contractors, buildiog 

product manutactur~r~ and related organizations - we recognize that energy effiCiency tax 

incentives are critical to increaSing the effidem:v of our na lion '~ homes. reducing energy bills. and 

putting our eontractOr! back to work. 

We urge vou to extend the Tax Code Section 2SC that provides a 10% tax tredit tor the purchase 01 

certaIn energV efficient materials up to 5500. 5ince its passage In 2005, this tax credit hn been a 

significant Intentlve for homeOWners LO chorue energy efficient products over less-e~pensi~e ind 

less·efficient ~lternatlVes . It has pro~en to be an important tool to promote energv efficiency bV 

affording home owners the opportunity to add enhanced insulation and air sealing to their home, 

as well as Jostilt highly energy efficient HVAC systems. hot water heite'S, i~d windows and dOOfS. 

It has . tso served 10 crnte and preserve American jobs!n the remodel1ng and retrofit indu5lry. 

The 2SC tax credit could be improved. Between De<:ember 31, 2008 and January 1, 2011 the tax 

credit was e~p flded to.lOS of the purchase of the energy effociencv products up to 51SOO. Tl1is 

.supported a growth in demand for those products in i challenging e<:onomic environment for the 

buildiog industry. A return 10 Ih~ levels would further support Ameriun jobs in Ihe residential 

building settor. 

In addition to rH toring, utending, and e~pandlng the 25C tax provision, Efficiency flrSI expresses 

support for a new tu credit proposal. recently introduced in the Senate. The bi-partjsan "Cut 

Energy Bills at Home Act" (S.1914) would create the 2SE tax credit _. the first residential 

perfof'l1ance·based til~ credit given to tIomeowners who ma~e ener8Y efflcJency impr~ments. 

As i performilnce·based Inceorl"". 2SE would reward energy sa~lng le~ els ralher than specific 

products, thus alisning laxpayer doliars directlv Wilh publicpolicV objectives. creallng significant 

energy 51~in8s ind job Creal lon. The 2SE In credit would lay the foundation not only for short 
462 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.394

term gains. but will also tlelp create a market for energy effociency am! an inc enli~e for sound, 

effident ~onSlructjOn bvtrained (Ontr~ctor~. 

Few a~ (redits unde, consIderation ~)fo~lde ta~ ,eliefto the a~erage American tlomeowrlE'f. 80ttl 

2SC and 2SE would reduce Amefita's ~nefgy use, create jobs. protect Our nation', ,e~urity , and put 

money back Irlto ttle pocket of the American taxpayer. 

WI!! appreciate the opportunIty to eKpres, our support olthese two lmportanttn pro~iSjOn5 . 

:ShOUld you have any qu~tions about Out posiliorl or organi,ation. pll!!ase do not hesitate to 

contact me or our WashIngton Representatlve Kara Saul Rirlaldl at kara@anndyl.comor 

202.176.1773 directly. 

:Sincerely, 

Jay Murdoch 

hecut!~e Director 

Ef(]'iency Fir"t 

70 Zoe Street 

Suite 201 

San Francisco. CA 94107 

202.6&O.B915 

jav.murdoch@ef(]ciencvflrsl.org 

Title of Hearing : Hearing on Certain h pi,ing a~ Pro~lsions, April 26. 20U 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.395

Company 

106 Greenway 

411 Energy Experts 

Essess, inc. 

A Benchmark Energy Solution 

A to l Green SOlutions Inc. 

AJ. Michaels Mechanical Services 

AAA Service Network 

AboutSavingHeat.com 

Abrahamse & Company Builders, 

AC Home Performance 

Acorn Home Improvements, Inc 

Adcor 

Advanced Building Technology 

Advanced Home Energy 

Advanced Home Inspections 

Advanced Home Performance 

AFC First FinanCial Corp. 

Affordable Energy Now, LLC 

AHordable Home flemodeling 

Affordable Home Solutions 

Alban Inspections, Inc 

Albemarle Heating & Air 

All American Plumbing·Heating·Alr & SOlar 

All Elements Mechanical Corporation 

All-State Enl!rllY Solutions LLC. 

Allen Associates 

Allied Energy Global of South FL LLC 

Allterra EnvironmentaL Inc, 

Alpha Energy Savers 

American AWS Corp 

American Home Consultants LlC 

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American Western Of Ari~ona LL.C. 

Amerigreen Property Solutions 

Ampro 

Anchor Insulation 

Anderson Home Inspection, lit 

Antet EnergV LLC 

Antonio Ciampa 

Apollo Energies 

Apperson Energy Management 

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464 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.396

Arthaus, LlC 

ASI Hastings Heating & Air 

Associated Inspectors, Inc 

Assured Energy Solutions 

Atlas Services Inc. 

Austin Green Team 

Avenue Builders 

Bassett Building and Construction 

Batt"!" Lear 

Beckner Contracting & Managment 

Better Building Performance 

Better World Builders, LLC 

Beutler Corporation/Advanced Comlort & Energy 

Systems 

Bill Brittan 

BKi (formerly Bevllacqua-KrI]ght, Inc.1 

Bovio Advanced Comfort & Energy SOlutions 

BPTC LLC 

Bright Power 

Bucks County Opportunity Council 

Buffalo Energy, InC. 

Build It Green 

Building Performance Institute 

Building Performance M.D. 

Building Performance SOlutions 

Building Professionals 

Building Science Academy 

Building5cieflce Inc. 

C!It J Construction Co., H C 

C.R. Wolfe Heating Corp 

Caal Synergy Group, Inc 

CAL Custom Building ServiCes, Inc 

Caleerts, Inc. 

California Center for Sustainable Energy 

Carbon Redu"ionServices 

Carl's Air Conditioning and Sheet Metal, Inc. 

Cascadia Consulting Group 

Cellar Ridge Energy Works 

Chaffey College 

CHO International 

Chick of All Trades 

Chris Cone Consultfng 

Christopher John Robert layco{k: lLC 

Cincinnati Energy Solutions LLC 

Encinitas 

San Diego 

Las Vegas 

Frankfort 

Fallston 

Austin 

Alexandria 

Elverta 

Seattle 

Walnut Creek 

las Vegas 

Kalamazoo 

Mcclellan 

Concord 

Oakland 

Sicklerville 

Tonawanda 

Ny 

QuakertowJl 

Elma 

Berkeley 

Malta 

Van Nuys 

Lockport 

Washington 

Sparta 

Mechanicsville 

Prairie Village 

Middletown 

San Pedro 

Santa Rosa 

Folsom 

San Diego 

(lIlver City 

Henderson 

Seattle 

McminrwiUe 

Rancho Cucamonga 

Irvine 

Portland 

Cotati 

Saline 

Cincinnati 

CA 

CA 

NV 

IL 

MO 

TX 

VA 

CA 

WA 

CA 

NV 

MI 

CA 

cA 

CA 

NJ 

NY 

NY 

PA 

NY 

CA 

NY 

CA 

NY 

DC 

MI 

VA 

KS 

NY 

CA 

CA 

CA 

CA 

CA 

NV 

WA 

OR 

CA 

CA 

OR 

CA 

MI 

OH 
465 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.397

. EfficienCYRrst 

""' .. ""',---_.- City of Henderson 

(Me Energy Servkes 

eNT Energy 

Co·Op Air Conditioning and Heating 

Co-op Power 

Coho COf'1struction Services, Inc. 

Colorado Home EHiciency Con5ultants 

Comfort Engineering 

Comfort Insulation 

Comfort Source LlC 

Commonwealth Building SCienceS,LtC 

Commonwealth Sustainability Works 

Community Action Agency of Slouxland 

Community Development Corporation of Long 

Island, Inc 

Community HOl/sing Partners 

Community Services Comortium 

Competitive Re'foOurces 1m;. 

Complete Home Solutions 

Con Com T, Inc. 

Conservation Connection Consulting 

Conservation SeI'Jices Group MA 

COnservation Services Group of Ohio 

Consolidated Construction 

Constructive Ideas llC 

Contract Action LlC 

eosel feed group lie 

COUrltry Wide Energy Audi ~ 

Cozy Home Performance LLC 

CTC Home Performance 

D.H. Serry Inc. 

DAN FULMER CO., INC. 

Danielsen Construction & Energy Management 

~Vid Starrett Construction 

Davis Energy Group 

Debra little Sustainable Design 

DefaultCompany lDO NOT EDIT) 

Del f\!lonte Construction 

DOGSTAR Energy Inc. 

Donovarl"5 Remodeling. LLC 

Dr. Energy Saver 

Dr. Energy Saver Outer Sanks 

ORO · Magic In Your Attic 

DSS Energy Services 

Henderson 

Fort Washington 

Chicago 

Tuk;wlla 

Greenfield 

Portland 

Thornton 

las Vegas 

Owings 

Charlottesville 

Richmond 

Culpeper 

Sioux City 

Centereach 

Christiansburg 

Corvallis 

Yalesville 

lothian 

Carmel 

Fairchild 

Westborough 

West Carrollton 

l.;!kewood 

Champaign 

River Vale 

Lakeville 

Cave Creek 

Northampton 

Ringwood 

N. Tonawanda 

Rochester 

Angels Camp 

Temecula 

Davis 

Nevada City 

Seattle 

Santa Rosa 

Allentown 

Hartland 

Seymour 

Kill Devil Hills 

Darnestown 

North Wales 

NV 

PA 

WA " 

MA 

OR 

CO 

NV 

MO 

VA 

VA 

VA 

IA 

NY 

VA 

OR 

CT 

MO 

CA 

WI 

MA 

OH 

01 

" N' 

CT 

AI 

MA 

NJ 

NY 

N' 

CA 

CA 

01 

01 

WA 

CA 

NJ 

WI 

CT 

NO 

MO 

PA 
466 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.398

a...... EfficienCY _..,.,.._._ RrSI .. OSL Development Corp. 

Duct Testers, Inc. 

DuctMedic 

Dundon Insulation, lilt, dba nh~ Insulation Man 

Dwelltet:h SOlutions 

Dwelltek 

Dynatemp, Inc 

E3 Effident Energy Evaluations, LtC 

E3 Power 

Eastern Building Performance 

Easy Energy USA 

feD Home Construction, LtC 

Eco Performance Builders 

feD Tech LtC 

Eco-Gree!l Energy Solutions 

Ecobe<:o LlC 

fcoHouse 

Ecolibriurn 3 - Duluth Energy Hficiepcy Program 

(DEEP) 

Ecology Action 

E(eno-Therm Insulation 

et:oProach I Chandler Building 

EcoSmart Solutions, lLc 

fcossential 

Ecalelligent Homes 

EDGE Energy 

EffiCiency 2.0 

Efficiency first 

Efficlency.org 

Effortless Effklen~'V 

EFI 

Egg Energy Systemi, Inc. 

EIC, Inc., ComfaltHome Corp. 

Elements Alternative LtC 

Elite Construction & Inspection Services Inc 

Ener G, LLC 

Energy Audits Unlimited 

ENERGY CO-OP Of VERMONT 

Energy Comfort & Construction, LLC 

Energy Conservation Group, LlC 

Energy Conservation Training CompanY 4 ECONTC 

Energy Construction LLC 

Putnam Valley 

Modesto 

BarbourSVille 

Binghamton 

Grand Rapids 

Park City 

Silver Spring 

Milwaukff> 

Denver 

lamoine 

Milford 

Katonah 

Concord 

Portland 

Batavia 

Roclcville 

W .. shington 

Duluth 

Santi! CrUl 

Baldwin 

Sunnyvale 

Rutherford 

Portland 

Farmington Hills 

Mclean 

New York 

San Francisco 

Sausalito 

Naperville 

Wenborough 

Hauppauge 

ledgewood 

Bayville 

Vero Beach 

Olney 

Manchester 

Colchester 

Clac~am .. s 

Las Vegas 

Portland 

Rave(la 

NY 

MI 

UT 

MD 

WI 

CO 

ME 

PA 

NY 

CA 

OR 

0' 

MD 

DC 

MN 

CA 

NY 

CA 

NJ 

OR 

MI 

VA 

N' 

CA 

CA 

IL 

MA 

NY 

NJ 

NY 

FL 

MD 

N' 

VT 0, 

NV 

OR 

NY 
467 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.399

Energy Di5ciosure5.l:om 

Energy Doc5 

Ene.gy Efficiency M~f)agefl1er"l t. !r"le; Building E'1ergy 

Efficiency Pe 

Energy Egghead, LtC 

Energy Insight, Int. 

Energy Integrity 

Energy Outfitter Llc 

Energy Pion!!e.~ Solutions 

Energy Rt'SQurce Group TechMlogles, Inc. 

Energy Savers America 

Energy Savers of North Carolina 

Energy Savers, LLC 

Energy Saving Services 

ENERGY SAVING SOLUTIONS LLC 

Energy Savings ProfeSSionals 

Energy SOlutions CO. 

ENERGY SOLUTIONS unlimited 

Energy Upgrade Services, Inc. 

[nergyLog!c, LLC 

En!!.gyMen Inc. 

EnergyPro Insulation 

EnergyPRZ 

EnergyReady, A Civic Works Venture 

EnergySawy.com 

EnergyWise 

Ene.gVWise Consultants LlC 

Ene.gyWorks KC 

Environmental Window Solutions 

EPIC Design Build 

ERA Herman Group Real Estate 

ESI Heating 

EverGreen Energy Savers, lLC 

Evergreen Technologies 

eZing, In( 

Faison Construction Energy SOlutions 

FD Associates Envio.mnental 

Fekete Thermallnspect;ons, llC 

FHA Services Inc. 

Fluid Market Strategies 

Foam It Insulation 

Free lighting Corporation 

Fresh Energy 

Gabriel Ruiz 

Plea5ant HIli 

Redding 

Fullerton 

Amesbury 

Reno 

Carlsbad 

Westfield 

Hastings 

Northford 

Westminster 

Zebulon 

Easton 

Kalamazoo 

Buffalo 

Lene~a 

SalamanCil 

Portland 

Fresno 

Greenville 

Chicago 

Staten Island 

Brookfield 

Baltimore 

Seattle 

Baton Rovge 

Grand Junction 

Kansas City 

Charlotte 

Santa Rosa 

Denver 

Portland 

Manchester 

Angels Camp 

Oak Park 

Portland 

Omaha 

Roseto 

Apple Valley 

Portland 

Binghamton 

Houston 

St Paul 

Bron~ 

CA 

CA 

CA 

MA 

NV 

CA 

IN 

NE 

CT 

MD 

NC 

MD 

MI 

NY 

" NY 

OR 

CA 

SC 

IL 

NY 

CT 

MD 

WA 

LA 

CO 

MO 

NC 

CA 

CO 

MI 

MI 

CA 

IL 

OR 

NE 

'A 

CA 

OR 

NY 

TJ( 

MN 

NY 
468 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.400

GAIA R&D 

Gale Contractor Service\ 

Gale Contractor Service~, SubSidiarY of i\Aasco 

Contractor Service 

GB3 Energy Solutions 

Geo Real Estate Services LLC 

Scotts Valley 

Vancouver, Wa 

Tempe 

Denyer 

West Monroe 

Gilmore Services Inc. dba Gilmore Heating Air & Soiar placerville 

Glenmont Heating & Alr Conditioning Rockville 

Go Green Energy Consulting 

Go Green lending 

Golden Valley Electric Association 

Gold~borough Company 

Good Energy Retrofit 

Greater Cincinnati Energy Alliance 

Green Audit USA 

Green Building Energy Services, LLC 

Green CAT services 

Green Choice Uylng 

Green Coast Enterprises 

Green Energy Improyement 

Green Energy Solutions 

Green Hammer Inc. 

Green Home logic, Inc 

Green Horilon 

GREEN HOUSE 

Green Market Solutions 

Green Nation Energy, LLC 

Green ReneWable~ 

Green Ridge Builder 

Green Step 

green works solutiOfl~, inc. 

GREENandSAVE 

Greene Solutions 

Greener Fitting 

Greenergy Home Preformante 

gr~NEWit 

GreenFiber 

GreenHomes America 

Greenhouse Energy SOlutions 

GreenWe Energy SOlutions 

Greenlight Construction, LlC 

GreenoverGreen 

GreenPath Energy Solutions 

Southfield 

Long Beach 

Ester 

Tampa 

Portland 

Cincinnati 

Greenlawn 

Austin 

Kansas City 

Oraflge 

New Orleans 

Oak Park 

HiIIsbQro 

Portlafld 

West Hempstead 

Durhilm 

San Luis Obispo 

Chicago 

Falls Church 

Alexandria 

Midyale 

Gaithersburg 

Glen Cove 

Deyofl 

Columbus 

Hacienda Heights 

Oraflgeburg 

Columbia 

Charlotte 

Irvine 

Chandler 

Absecon 

Annapolis 

Pittsburgh 

Shawnee 

CA 

OR 

AZ 

CO 

NY 

CA 

MD 

MI 

CA 

A' 

ft 

OR 

OH 

NY 

TX 

MO 

CA 

LA 

It 

OR 

OR 

NY 

NC 

CA 

It 

VA 

VA 

ur 

MO 

NY 

PA 

OH 

CA 

SC 

MD 

NC 

CA 

AZ 

NJ 

MO 

PA 

KS 
469 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.401

IIlEfficienCYRrst .... , .... __ ......... __ . GreenSavers USA 

GreenS!a, Home Performance 

Greenthink Advisors 

GreeJlWorks 

H.H .P. 

H,E.LP.IiOIl]I! Energy life Performance Group, Inc. 

Habitat Home EnerllY Specialist 

HAeC 

Hammer and Hand 

Hampton Roads Energy Solutions 

Hancock SoftwMe 

Hand Energy5ervices 

HarborEnergy Con~u!tjng, Llc 

Huney Construction 

Hawkeye Construction 

Healthy Home Services 

Healthy Homes Carolilla 

Heat Relief 

HeatMlzer 

Heflry Bush Home Energy Solutions 

Hi-Tech Energy Concepts, Inc 

High Performance Home, ue 

HlN Energy Services 

Holistic Home Energy Services 

Home Energy Answers 

Home Energy Connection, LLC 

Home Energy Design Services 

Home Energy Ucensed Professionals, ue 

Home Energy Matters Inc. 

Home Energy Preforrnance by Halco 

Home Energy Remedies, LlC 

Home Energy Repilir 

Home Energy Rescue 

Home Energy Savef'l 

Home Energy Saving Solutions, Hc 

Home Focus 

Home Green Home 

Home Performance Coliaborillive 

Home Performance Contractors Guild of Oregon 

Home Performance NC, Inc. 

Home Performance Specialists, LlC. 

Home Perfo(f"nance Technologies 

Bend 

Belfa~t 

Southbridge 

Las Cruces 

Baltimore 

Portland 

Seattle 

Harrisbur& 

Portland 

Norfolk 

Framingham 

Manche5ter Center 

Baltimore 

San Rafael 

Baltimore 

Portland 

North Wilkesboro 

Portl.lOd 

Sanford 

Redlands 

Riegelsville 

NewWiJ'ldsor 

Metairie 

Westminster 

Coopersville 

las Vegas 

Thetford 

l.1s Vegas 

Kinnelon 

Phelps 

Douglas 

Shirley 

Brookeville 

Norwalk 

Frederick 

Hebron 

St. Louis 

Seattle 

Portland 

Plttsooro 

Madison 

Brentwood 

OR 

ME 

MA 

NM 

MD 

OR 

WA 

PA 

OR 

VA 

MA 

VT 

MD 

CA 

MD 

OR 

DR " 

ME 

CA 

PA 

MD 

LA 

MD 

MI 

NV 

VT 

NV 

NJ 

NY 

MA 

MA 

MD 

CT 

MD 

IL 

MD 

WA 

OR 

NC 

WI 

"' 
470 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.402

._ru, EfficienCY _ ......... _.~ 

r5t Home Star Energy AudltOr5 Fairfield OH 

Home StM Iowa Cedar Rapids IA 

Home Visions West Hillsboro OR 

HomeFrel! Nevada Las Vegas NV 

HomeRx Seattle WA 

Homestar 811ildinll Performance Rohnert Pillk CA 

HomeTech Ketchikan 

HoneyweU- MO Lanham " MO 

House & Home Group San Frandsco CA 

HouseSmart Green Solutions Encino CA 

Housing Ass'sti!llce Program Essex County. Inc. Elilabethtown NY 

Hutchinson Plumbing Heating Coolil'll! lLC Cherry Hill NJ 

lAO Technologies, Inc. Syracuse NY 

IBACOS PittSburgh PA 

ICAST-International Center for Appropriate & 

Sustainable Technol lakewood CO 

ICF International Fairfax VA 

Imagine Energv Ponland OR 

Imagine Energy Efficiency Shawnee KS 

Indepel'ldenLConnecticut Pet.oleum Assn Education 

Foundation Cromwell C1 

Indoor E:nvironmel'ltal Systems ,,~ NO 

Infrared USA, Inc, Belgrade MT 

InorOut Smart fnergy Henderson CO 

Inspection Perfection llC San Diego CA 

Inspired Green Grand ledge MI 

INSTALLED MEASURES INC. Coventry RI 

Institute for Building T&hnology and Safety Herndon VA 

Institute of Building Technology and Safety Ashburn V, 

Integrated HVAC Islip NY 

IntelilGreen Partners New York NY 

Interplay Energy Denver CO 

IQ fnergy Conservation Dallas TX 

J R CONSTRUCTION-SOL SOLUTIONS, Inc. Napa CA 

Jag Construction Inc Rochester NY 

James A Wheat & SOns, Inc Gaithersburg MD 

JB Insulation Sherwood OR 

JEA Jacksonville Fl 

John Craig Construction, Inc dba: Beal'1stalk Energy SOnoma CA 

Johns Manville Denver CO 

Johnson County Community Coliege Overland Park 

Johnstone Supply of Michigan Muskegon " MI 

Kevel HOme Performance San Francisco (A 
471 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.403

._<u,_ EfficienCY .... _.~ 

Rr5t lCey Green Energy SOlutions llC 

Kil'\1I'oie Group, lLC 

Ladybug'le<tdc 

Landmarks ROC 

Lantern Energy 

Laura Reedy SWkel 

LEAP (Local Energy Alliance Program) 

Learn About Green LLC 

LEEReD 

LeI! Construction Design/BUild 

lightly Treading, Inc. 

linda Kogl:'!]and a~ociates 

Lionheart Energy Audits, LLC 

Local Economic and Employment Development 

Council 

Lone Pine Energy COl1sultants, LLC 

M,Win!!!r & Assocl1lleS 

MaGrann Associates 

Mainstream Energy Solutions 

Make It Green 

Malcilwe Contracting, IrK. 

Margert Communitv Corporation 

Marksman Builders 

Mason Construction Building Performance 

Professionals 

Mass Energy lab, InG. 

Ma.ome Construction 

McCormaCk Heating & Air Conditioning 

McDowell and Son 

MERCURY EXCELUM 

Metropolitan Energy (erlter 

Michigan Energy Savers 

Mid Michigan CommlJnity Action Agency 

Mid·MissOllri Healing & Cooling, Inc 

,...,idwest Energy Efficiency Alliance 

Mike Watson Co. 

Minne~ota BlJilding Performance Associatioll 

Minnick's 

M iSSOllri Botanical Garden's EarthWays Center 

MiSSOllri Gas Energy 

Mitch Levin 

MO·KAN Energy Soilltions, LlC 

Morrow & Sons 

mOtlJm b2b 

Charlonesville 

Ocean View 

Encinitas 

Santa Rosa 

Norwich 

Elmhllrst 

Charlottesville 

Gates Mills 

Lis Vegas 

Sebastopol 

Denver 

Highland Park 

Tappan 

Chicago 

Draper 

Santa Rosa 

Moorestowl'l 

Holly 

Bend 

Rhinebeck 

Far Rockaway 

Newcastle 

Martlnel 

Cambridge 

San FranciSCO 

Santa Barbara 

Hood River 

East Windsor 

Kansas City 

Fillshing 

Farwell 

Carrollton 

Chicago 

Wicl!ita 

Saini Palll 

Lallrel 

St. LOllis 

Kansas City 

Chicago 

Like lotawana 

Rohnert Paf~ 

Toronto, M5V1E3 Canada 

VA 

DE 

" CA 

CT 

Il 

VA 

OH 

NV 

CA 

CO 

IL 

NY 

Il 

UT 

CA 

NJ 

M' 

OR 

NY 

NY 

CA 

CA 

M' 

CA 

" OR 

CT 

MO 

M' 

M' 

MO 

Il 

KS 

MN 

MD 

MO 

MO 

IL 

MD 

CA 

NV 
472 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.404

.. Efficiency

_ 

First ..... -"-1-.. , ... - Mt. lincoln Constru~tion Inc. Tru(:kee CA 

Murdoch Architects Bethesda MD 

Murth(l Construction West Islip NY 

napa valley home inspections N<lpa CA 

N,ltional Fiber Cellulose Insulation Belchertown MA 

Neighborhood Pro Builders, Inc. Bartlett TN 

Neil Kelly Portland DR 

NeuNRG Building Performance Manchester WA 

New Buffalo Imp(lct Tonawanda NY 

New Dawn, LlC Oaytona Beach Fe 

New England Conservation Servkes Woodbridge CT 

New England Smart Energy Group, LlC Fairfield CT 

New England Spray Foam Insulation Newburgh ME 

New Jersey Natural Gas Co. Wall NJ 

New Opportunities Inc. Framingham MA 

NICHOLSONS HEATING &AIR Pine Bluff AR 

Nicor Home Services Naperville Il 

Noonan fnergy Corp Springfield MA 

Norm Clark Property Inspections, Inc. Olathe 

North Carolina EnergV Efficiency Alliance Boone " NC 

North Fork Retrof't/SolarOptions East Hampton NY 

Northsight Energv Solutions LtC Scottsdale AZ 

Northwest Infrared, LtC Newberg OR 

Nutmeg Mechanical Services Inc. M~nchester CT 

NV Energy Las Vegas NV 

NVborg Sustainable Construction, Inc, los Angele~ CA 

O'Hara Marketing Services Overland Park KS 

Old House Window Wright S~cr~mento CA 

Opportunity Council Bellingham WA 

Orange Energy Solutions, LLC Havertown 'A 

Owens Corning Washington DC 

P~cific Crown Builders V~caville, Ca CA 

P~gel Service Co, San Bernardino CA 

Pathways Energy Santa Rosa CA 

Patty Moore Oakland CA 

Paul Bowman Catonsville MD 

Peak Energy Performance Roanoke VA 

Penderwood Consulting Warrenton VA 

Pentalr Water Pool and Spa Sanford NC 

Peralta Energv Group Oakland CA 

Performance Energy AdvIsors Las Vegas NV 

Performance Systems Development IthaCil NY 

PEST CONTROl INSULATION SYSTEMS Homer GA 

Phoenix Home Performance Saginaw MI 
473 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.405

Pippin Brothers, int, 

PLS Installations Inc. 

Ponllil Energ9 

Pool Solutions Group 

Powersmith 

Precision Air Conditioning & Heating, LLC 

Premium Efficiency 

Princeton AirCondltioning 

PristineAire 

Pro Energy Consultants Of Richmond, VA 

Pro Energy Con5Ultant5·Phoeni~ 

Progressive Insul~tion & Windows 

Provident Energy Solutions, Inc 

Pulaski TechniC<l1 College 

Pure Construction Inc. 

Qvint<l Energy 

R, McL<lg<ln Incorporated 

R. PelTON BUILDERS, INC. 

RA Adamson General Contracting 

R<ldlant Insulation Systems 

Raia Energv Solutions Inc. 

ReCUNE' 

Red E3 

Renewable Funding 

Renewal System Solutions 

Reno Home Improvements IIc 

Residential Energy ConseNation 

Residential Heating and AlC, Inc. 

RESNEr 

Revival Energy Group 

Richart Family, Inc. 

Right Angle Home Inspections 

Rising Design & Construction 

Rising Sun Energy Center 

Riverbanks Construction, Inc 

Rod Johnson Air 

RubIno SeNice Company 

S.H.C. LlC 

Sacramento Building Performance 

Sallie Oniz - Wrller 

Sandalphon Energy Group, LlC, 

Satum Resource Management 

Saufley Electric 

Save Energy SeNices 

lawton 

Buchanan 

Encinitas 

Santa Rosa 

Copiague 

Memphis 

Eugene 

Princeton 

Calabasas 

Moseley 

Phoeni~ 

Chatsworth 

Fresno 

Little Rock 

las Vegas 

Fort Washington 

Clifton Park 

Berlin 

Hayward 

MJddle Island 

Bohemia 

S'an Francisco 

San Diego 

Oakland 

Dec<ltur 

Reno 

S. Setauket 

Campbell 

Oceanside 

Vancouver 

Vancouver 

Gales Ferry 

Petaluma 

Berkeley 

New Bern 

Stockton 

Voorhees 

Rainier 

Carmichael 

Kennewick 

Beacon 

Helena 

Agua Dulce 

Powell 

OK 

VA 

CA 

CA 

NY 

TN 

OR 

NJ 

CA 

VA 

AZ 

CA 

CA 

AR 

NV 

MO 

NY 

CT 

CA 

NY 

NY 

CA 

CA 

CA 

GA 

NV 

NY 

CA 

CA 

WA 

WA 

CT 

CA 

CA 

NC 

CA 

NJ 

WA 

CA 

WA 

NY 

MT 

CA 

OH 
474 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.406

e.EfficienCYRrst -~.\_ ... -.-. 

Save Energy SOlutions 

Save Home Energy, Inc. 

Saving Green Energy Audits ue 

Sayre Building Performance 

SCE&G [nergV Information Services 

Schaafsma Heating Company 

Scott Temperature EquipmeM Co, Int. 

Sellair LLC 

SENCON 

Sen!ca Air Conditioning Inc. 

Sensible Energy SOlutions 

Sequoia Energy Services 

Service 1st Energy SOlutiol'ls 

Shelter Alterna tives, IlleJEnergy Check 

Shepherd Design & Coostructlon 

Sierra Pacific Home ilnd Comfort 

Silve rado MeChanical 

Sime Palm oil 

Sinclair Bulldlng Studio 

Smart Green Realty 

Snuu'Home 

SolarClt.,. Corporation 

Solan:on 

SolarEnvi 

Sound Home Performance: A division of Puget Sound 

Solar 

South Mountain Company. Inc 

Southface 

Southwest (arpeMers Training fund 

Southwest EnergySavers,llC 

Specialty Comfort Enterprises db .. 

WeatherilationPRQ 

Splinters ConstrUction, Inc. 

Spray Polyurethane Foam Alliance (SPFA) 

SRA International 

St. Johns Housing Partnershlp,inc 

Standard Energy Solutions 

Standard Insulating Company 

Start Smart Energy Use, llC 

Stellar Windows and Insulation 

Stevens Home Pro Energy Audits 

Strategic Energy Innovalions 

Structure Metrics 

Suburban Green, llC. 

Cordova 

Kensington 

Easton 

Oakland 

cayce 

Grand Rapids 

lawrence 

Allentown 

Virginia Beach 

Spring Hill 

Portland 

Visalia 

las Vegas 

Blacksburg 

Bowie 

Rancho Cordova 

las Vegas 

Dallas 

Charleston 

Erdenheim 

Boulder 

Portland 

los Angeles 

Boulder City 

Seattle 

West Tisbury 

Atlanta 

los Angeles 

Phoenix 

Uttleton 

ftasadeoa 

Fairfax 

Bethesda 

St. Augustine 

Rockville 

Charlotte 

Newtowo Square 

Wheat Ridge 

Cilrrolltown 

San Rafael 

Winthrop 

Mahwah 

TN 

CT 

PA 

CA 

SC 

MI 

" PA 

VA 

FL 

OR 

CA 

NV 

VA 

MO 

CA 

NV 

TX 

WV 

PA 

CO 

O' 

CA 

NV 

WA 

MA 

GA 

CA 

AZ 

CO 

CA 

VA 

MO 

Fe 

MO 

NC 

PA 

CO 

PA 

CA 

ME 

NI 
475 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.407

Summit Insulation 

SUrlrise Real Estate Co 

SunSky Energy 

Sustainable Resources Center, Inc. 

Sustainable Solutions Unlimited 

SynerGreerl 

Synergy Companies 

Taylor Home Energy 

Tempo Mechanical Services 

Terra Aqua Builders DBA Energy Re~olutlons, Inc. 

Terralogos Energy Group 

Testo, Inc. 

The ACCESS Agency, Irlc, 

The Energuy 

The Energy Team 

The Home Energy Detective, Inc. 

The Nazerian Group 

The Weatherization COmpany 

ThermaCote, Inc. 

Thermal House 

Tidewater Insulators 

nle Roofing Institute 

Tohn Environmental Strategies llC 

Tomorrow's Strategies 

Trl Star Home Performance, llC 

True Energy Solutions, Inc. 

Turner's Heatlrlg & Cooling 

U,S. OePMtment of Energy 

US. Green Buildillg Courlcil 

UGI HVAC Services Inc 

unemploYi!d 

Vrlited Iliumirlating ComparlY 

Vader Air Irlc. 

Verve Solar COrlsultiflg 

Victory Enercy Solutions 

Virgirlia Weatheritatlorl Trairling CeMer at the VCCS 

Watt Eraser 

weeks construction service arld repair 

WegoWise.com 

Welhtome 

Wendel Rosen Black & Dean, llP 

Wesson Energy, Inc. 

Baltimore 

Auburn 

Spencer 

Minneapolis 

Portlarld 

Santa Rosa 

Hayward 

Rochester 

Irving 

Sacrameflto 

Baltimore 

Sparta 

Willimarltk 

5acramenlO 

5 

Manassas 

Encino 

New Orleans 

lawrenceVille 

Brattleboro 

Norfolk 

Chicago 

Wayland 

san Francisco 

Orangeburg 

East Rochester 

COflcord 

Washington 

Washington 

Reading 

Hackettstown 

New Haven 

Hawthorne 

Davis 

New Britain 

Lynchburg 

Walters 

los Angeles 

Boston 

Commerce City 

Oaklafld 

Waterbury 

MD 

" NY 

M" 

OR 

CA 

CA 

NY 

'" 

" MD 

NJ 

cr 

CA 

NJ 

VA 

CA 

LA 

GA 

V, 

VA 

IL 

MA 

CA 

5C 

NY 

NO 

DC 

DC 

PA 

NJ 

cr 

CA 

CA 

cr 

VA 

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CA 

MA 

CO 

CA 

q 
476 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.408

W~~tern Insulatlon lP / W~l home - Sacramento 

Wes tside Orywall & Insulation 

Wisconsin Energy Conservation Corporation 

Wise Energy Co 

WJBf3dley Mon gage 

Zero Energy Contracting 

Zodiac HVAC/Plumbing Int. 

Sacramento 

Hubbard 

Madir.on 

Ponland 

Edmond 

Phoenix 

Van Nuys 

CA 

OR 

W, 

OR 

0' 

AZ 

CA 
477 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.409

O,,"nl.atlon: 

Na",.: 

4dd,,",,, 

Pho,,", 

Conlac" 

5uhmTII~d T p,!lm""v of ~form.ti ... Op!lon, 

5ubco..,m;u •• on Sel~tt Re.en". Mea,ur~. 

He.,lng "" Conain bQirjn5 Ta. P", ... ;'ion~ 

M.~ 10, 2012 

~fo,"'''iW Opl<on,- ue 

He>!ne, ~no.d'- ~a .~" Principal 

P.O. 41, Va. han, W" 98070 

~2(6) 567-5466 

~~'llte'.t>eforn'-.li.eopJII,!!! •. mm 

I . ubmit Ini, te>l,monv on beloalf of .Formatt •• Op'ionl, a lIDall bu"n.,' ,to., I""i.ttl community ~nd 

cocp!!fat1Ve d .. elOjImen" . nhanco. local ecol>O",I • • , launch .. ""t.lnab .. venlU'.'. and 8"lde, future ~n'fgv 

cholc ••. 

· Oistributed wind" in",Ive'lhe u.e of tIPic.'1y .mall., wi~d Tu,bin ... al ho..,.>, t.,ms. bu>i~e .. e .. and Qublic 

full;,in 10 oll·.el.U or. pOrtion 01 on~ite .ne'EV cons"m~I"'n U .... n •• p,pj~ls wllh 1",,1 o ... ne"hip. or 

·commun,ty·· wiM. Oi<!,iDuiOd w,na powe' " of!.., oWnea and u<Od by ono,ev COtl<U", ... at 0' n.a,the 'ite 01 

generation. whi<h munl: 

OepJoV01enl of distribltt~d wind poWe, an ,Nluc~ "' ~ n~O<! fo, new <entratl.ed ,"nerat"'" and 

tr~n.mj .. ion licilitle.; and 

loul ",_to,. htl~ d,i •• 1<x31l,0<! ~",ploym.nt ~nd ~<onomk ben~lill. 

Olstributed wmd P'OjKIS of Un ,elv " ....... 11y C~ t~ . InvHtmO"t Tn (rNlil (ITC) to 1m. "CO 11001, p,ojpm and 

in.tan.tion. Tto,.I. becau.e , 

M.nv Renewable ene,BY In_to" ,"nnot ta~ e advantage 01 th P'oduClio" la. (,.,.,il (~TC) un l ... ,he 

eno,lV .n~ .. t. d lrom Ih al ptoft<t I, ",,'d to . third pa'ty. 6.""u", d!<I,Ib<rt.a g~n.'"ion I< 'iJn~d 

to be con,um_d on·,ite and i, "'dom ><>Id to. t~ird porty ~TC •• re not lleneralty a.altabloto ..... 11 wind 

p,cjo<l d.v.lop .... 

110. PTe n only be ">ed I" o/f,ot p;ouivl! income . flo;' f •• tu,e g.ne,ally d"", nct Imped. I.,ge, 

In,lItulional In ... "a", be<. u", thev ",ut;nely ,.aU,e "BoWCan! 10.'''...., incame1hat can be eff.e! bV ' 

~TC Howeve" b~<.u."m.ny potential '''''.sto," in "".,1, <ommunitv or d<.trlbuted wind project. h .... " 

Inado""alo Of no lOa .. "", Incam., !h.V .re P/Klud od 1'001 la~ nl advan,ago of !hr, I •• crod,l, ","klng 

the ITC mu<h mor • • n,aClive and vlluable 10 Ihe distribuled wind Indu,lty. 

~In.ltv. Md ,e latedly, Ito ortIer te fully ,ull'ell1e,lgnlficanl mu ljplle, ~ffea of <mall, dl~lflbuled wind 

p,ej«uon l ecoroomlo •. "nd mi~lmlze n~ con<ern. to neW wind pro)",,,, it. isid •• , to de.elo~ . 

b,aad poel of "'c"ll"v~'ta ... II toey .. e ""abl. 10 Uli~l. 1M PTC a»<l !ho IT(I. a~owed to . ,pit •. lIoi. 

finan".1 "nd pe .... ".1 .upporl will not mat.ri.ll,e and p,ojt'C15 will nol leI done. Jeb. will be 1oOl. 

Ronew,", ,h. ITC fa, land·b.,ed wind p"w~, I~ al", a ",an., of i><" ;ty and fol,,,,,,,_ Sol., pool,,",ol1al< p,ojec" 

ol any slu ,f, CUr,~n!1y otlsible fo, an ITC ,h,e Ui" 2016a"d "wid ''' used in large.s.c:ale applit.li""l. 

h1endinl the ITC for wind Ito,au8h 20lfi efeOle. a level plavlng fiold o",onl COml>lllill( 'enew.bl~ tochnolOllIe • 

• nd .!low. 1M eu,tomo' to dete,mlne Ih. opUm.llochnololV •• loctIcn fo, I liven .lle. 

Th.n~ you '5.in 10, Ihe opportunil~ to .ubmlllh"se tom.."on!> and we loo~ IolWa,d 10 Cf~in. wlln you 10 

. n .. He Ihe ,,,,,'inuO<! e.p.n.ion of this dvn.miC and i,o .. lnl "me,icln indumv. 

H .... the'Rho .... -Wu •• , 

p,inc,pal, eFo,maliveOp\lan., llC 
478 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.410

STATEMENT OF BRIAN 1'. WYNNE 

PRESIDEh'T. ELECTRIC DRIVE TRANSPORT A nON ASSOCIATION 

ON 

III;ARI NG ON CERTA IN !;:Xl'IRJN(j TAX PROVISIO"'S 

SUUMITTEO TO 

SUBCOMM1TfEE ON SELECT REVENUE MEASURES 

WAYS AND MEANSCOMMll1'EE 

UNITED 5'1 ATES J lOUSE 01' REI'RESP'''''-ATIVES 

WASJ[[NUTON. D.C" . 

AI'ltlL 20. 201~ 

The EIi."::I,ic P,i"" T"'"-,,ponalion AJ;soc inlion (EDTA) is th~ cross_induwy tnillc association 

promoting tm:· a<h allc~mcnt ofeli:ctric dri,'c Icclmolo£" .... 1UId elc..::tril;ed lramporlal;on. Our 

memberS rep,eSl.'nt the entire value ch~ill of electric ([ri,·c. including ,"chitle manuf:iC\urcrs. 

banery and component manllfnc\uren;, miiilies and encr~vc()lnl)Qnjcs. and smW1 grid ~nd 

charging infra~lmclu'e d~\'Cloper.;. Cllll~liwly. we are C(lntmined 10 rcaliling lhe C"Ctloolilic. 

natio ns! SrturilY. and ~nvironmental hcndi \li of dis plating oil with hyhrid. plug_in hybrid. 

tKIn<'rY, and fnel cell clt"Clric ~hicle>. 

Since II\(: U.S. imports roe"rl)' 500/0 orlheoiluscd in the Inm'p>.lrt:l1ion xctor - lll 3 cost ormor.: 

Ihan 51 hill ion per da), - Ihere is n 5Inl!"I~jc and cellno",i.: imJlC'rmivc ill mm'c Illward 

do",~slicall) _genl.,.,.tcd eI""lricily alj an ah~nl~tiw 10 uil. The "eed is Hlready dear Iu families and 

oo,in~sS<:>l fXiying ~lnr()s1 $-I gailon (Bnd in some plac~s more) for sasolilll" ~nd diesel fud lod"y. 

EIA pr."'!il"::IS barrel prices over Sino thrtmgb 2013. The implicalions for Ille tconomy are 0150 

ck~r; e''''ry S IO p.."T barrel increa .. e CP.>IS tlw ~""mmnr)' ~(lIlm~imal~ly S7S billion. 

Th~ Am~rican Energy Inno.-aliQ<) COllncil, II grollp oru.s. indu~try 1~"d,,1'S working. 10 "fO~I~r 

~Irong ..-conom;c growth. crc.::I1~ jobs in new i(ldu~lrics and re-eslablish Ame'rica's energy 

lcadcrship~ eundudoo il1lhdr 201! rcpon thilt f,"'\leNl paJ1icipllli"'11 ill "lIcrgy inOOV31il'li was 

impermive Ix..::~'u:;c " ready 'lCC~SS 10 reliable afion.lablc limns <>f energy is no! only vilal for the 

Jimctioning ufllte lar~ .... ~eon<Jmy. i! is ,';Ia!to penple's cwryday Ii, ~" and signi!icant!y i"'pacl~ 

Ihe counlry's rtlliorral securil~ and em'irunnrcma! wcll-bein!!." 

InnO\ ~lion in the lrnnSport~lio<r !l<..'CIor can be: >iCcelcr.llcd lIilh IIIrgclcd. lime·limiled and 

pertom'ancc.ro.<ed i",,,nl've>. SpecifLcally. EDTA ~uppons c~~n~;n" nflhe Scclioo 30( 

aiterTllu;,'e fuel whiek r~fueling properly "redil. which pro,·jd ... )O p<'r<~nl "fll!. COSI (up'" SIOOO 

fo, residonlial.m! SW.OOO!Or busi""", propcrl)'lofan)' ptol"'it)' for 'l<11inl( ordi'p"nsin!l.a IICMJli,.. 

rueL Til" "~ir was in~", .. oJ 1(1 ~O'!. ror 1M ~ •• rs ~()()9 and ~OIO_ II "'''' ."'nd<tlI~ItI"S~ ~O, I . ' Ih. 

J!r' I."~L 

The cxpimlion Dfll ... , cr~dil in 2011 unrMunmcly c<lincidcs >lilh Ih~ widespread commercial 

inlroduclion of plug-in v~hi"k~. MnnufaCLUn:r:s arc planuin~ tn bring mun: Ihan 20 plug·in 

whicks 10 l\larkel in Ilx nCSllwo 'cal'S. E!ceiTic dri,·.· "chic!c~ arc ho:inl! j"lroduc~d jillo the 

m .. r~ ct place in numcrous configurnti()<lS. ind!llling p!ls!o<nger cars. conrme((:ial truck!;. bu!><.'S. 

Ir"Il<IQI'S. and ground suppOn equipm~nI. These "ehidc~ provjde sub$I~lIIiB.! fu~1 savings and 

reduced emissions " hilt contributing 10 our Cll~rgy 'Hid ccoll"mic Si:curiIY. TIlt credil's 
479 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.411

expiration and the uncertainty around renewal is damaging to COnsumers and businesses planning 

to in"est in plug·in .. chicles and charging equipmcnt. 

Extension of the "edit is also imponant to the broader emm to pm"ide a variety of altemative 

fuel "ehicles to consumers. The JOC credit is t~"Chnology neUlml and reinforees private 

in,'estments in natural gas. biofuels and other altcmati .. c fuels. as well as in cle.:tricity. 

Seveml bills have been intr<.>duced in the 112" Congress that would extend and expand the 30C 

credit. including H.R. 1861, II.R. 1380. 11K 1685. II .R. 1875 and II.R. 2231. While the bills do 

not call for identical approaches to extension. they share the position that extension is integral to 

advancing "ehicle and fleet options for consumers and businesses seeking an alternative to 

paying "olatile oil prices. We agree and also support restoring the credit to the prior 500;. Ie"el to 

make it a more effe<:ti\"C investmCllt incenti"e at the commereial scale. 

EDTA also supportS extension and expansion of the S<."Ction JOU credit for clean. efficient hybrid 

and bancry e!e<:trie medium and heavy duty vehicles as called for in the bipartisan bill. H.R. 

3374. Trucks in this segment consume more than 52 billion gallons of fuel each year - 26% of 

all U.S. liquid tmnsponation fuels consumed. 

Hybrid and plug-in hybrid technologies increase the .. chiclcs· fuel cfficiency by 20 to 50010; fully 

ele<:trie medium and hcavy duty vehicles eliminate oil use entirely. This results in significant 

savings on fuel expenses for large fleets. as well as for small businesses. 

While these emerging ele<:tric dri,'c trucks ha,'c the potential to bencfit busincsses. consumers 

and Ihc counlry. the initial cost of these new techno logics is a market hurdle Ihatthe JOB 

incenti"es can help to reduce. By reducing the barriers 10 widespread commereiali?.ation of 

advanced vehicles. extension of the 30B credit wiil help businesses reduce fuel costs, grow U.S. 

manufacturing of ele<:tric drive truck te<:hnologies. and reduce U.S. dependence on foreign oil. 

As the tmdc association dedicatcd to ad"ancing electrification of transportation. we belie"c that 

the fcderal gO"cmment can playa critical role in acce!erating adoption of e!e<:trie drive vehicles. 

Promoting private i""estmcnt in ahemative fuel \"Chicles and refueling infmstructure is an 

effe<:tive tool in helping emerging technologies Overeome in itial market hurdles. The n"1um on 

the public invcstmcnt is a nation that is less dependent on foreign oil. spends its energy dollars 

domestically and competes effe.:ti'·cly in the global market for ad"anced technologies. 

We thank you for your considemtion of our views. 
480 

Statement of Element Power US, LLC 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.412

I, Ingrid Schwingler, ~ Development Coordinalor.t Elemen! Power US, LlC In Minneapolis, MN, 

re,peufllllv urge Congre" to &tend the wind ~nergv production tax credit (PTC) a, ,!Ilidfy~, po .. ible. 

The PTC drives billions of doll~r, In pri~ate Investment In homegrown Amerlcan wind power each vear. I 

have seen wind project!. .evitali, e commun(t"" - bringing in construction jobs at first, and maintenance 

jobs In the leng term, and generating revenue far community ",hool, and hospital! over the lifetime of 

the projecl.lnc rea.in81he amount of power that our country gel. from clean. homegrown, .Hordable 

resourCe, IS an excellent th ing lor uS to do -and thl, ta~ Cf.ditprovlde, an incent;"'e for the wind 

Industry to continUe to do jllst th~t. 

I urge Ihe commil1ee to take up an extension clthe wind enern produclion tax credlt right away. 
481 

Statement of Ellen Johnson-Fay 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.413

To: Ways aJld Means 

From: The Rev, D.', Ellen Johnson-Fay 

tillenJf@g.cQ!.1!. 2426W, Platte Ave. Colorado Springs. CO 80904 . 

phone: 719-473-7059 

Re: He~ri g on CCrtilin bpiriHg Tax Provisions 

Aprl12!>,2012 

J, £111.'11 jllhJlson-Fay, Millister I-:merita, All Souls Unitarilln Ulliversalist Church In 

Colorado Springs.CO, r!!spectfuUy urge Congress to !!xlend tbe wind energy 

production tax credit (PTCJ 3S quickly as possible. 

In an cra of global climate change and Jimit!!d supply of PO\lUtill/l fossil fuels, It is 

imperative that we Invest 111 sustainable Sllur<'e~ of energy for ollr future and future 

gene rations instead of subsidizing unsustainable practices which pollute air. land 

and wa ter. 

We have seen the benelitof the PTe in Colorado Springs where are Utilities ofkred 

customers the opportUnity to purchase energy from wind production, bringinG job 

opportunities and revenues \0 this community and places wbere wind energy is 

produced. This allows continued improvemellt ofwiHd l'11!!rgy production so tI.at it 

becomes deaner and mor~ sustainable. 

1 urge the committee to t.lke up an extension of the wind ener&y prodllction tax 

crt'dit without delay. 
482 

Statement of Emily Hill 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.414

J ..... 22, 2012 

11 ........ Woy" and ""''' .... e __ 

C12lOt>g'W<ltttlI1~ 0!fIce 6u11d1l1ll 

WotonIng,on D.C 20515 

~ ErIIly J HII 01 c.w",,1i'Y Il M<So ..... 1'<1, '~1 LII9I! C""II ...... 10 ""*'" "'" """" _GY I><D<II.oCt>O<l a<.:nod~ 

IPTClo. Q~.' PQO.S''''' 

",ll/IOUlIn ~ __ uIbm."'f1 r..""""" ... Ilt)' """,poootM. I. ao .""10""'" IOM<"9Y ."("",, ino:I."...cI",,' 01 tne 

0U0I><>I1 o. _""""" ...,..,_. 1 "'a, ",a, .~ II>e PTe 1<1 PfflTIa"",ely 01'<1 abnlplly •• pq I II,,, .. a 

"" ..... Ia~1\g ""I>Id on au, ""''''tty. Tnio Ia. cte<Ill iI tro! Inrro>.e "" tlilMons 01 <I<l(lan In . M .... """",,,tie,,,, 'n new 

win<! P"'"'" ",*","_ ra<~ I<> ".",1'<1 "'" PTC \0\11 oig<I;r,ca<>lty <!lillY"'" II<Ivan",,1l!ef'II .1 """""btal'Y """'Ll<lIl<I 

"""" power. and Will jew."'".II'>ousa"". of9'"" lObI Fl>r\IIem"o::Q, in JoIIinIII<> ".,"'" 1hII _""_ Tel< C,tdrI 

... "'"' be opening !/Ie door /0( oontend"'ll n.bOO> 10 _ •• I mot. P''''''"'''''' loot/IoIcI '" "'" U S. __ l"II3<ilel 

.I-.! IVlwic&"...,OClol wind po_ .... '''"'''' ~ 1<1 ' ..... '0 ,.Ie •• ,..,. in "'" afttim.olll 

In I><~er I<> .......... tilt! oeN., "fflcIer\cy 01 ""'" nation lot lUI .... geIIe,aUOM ... ....... , <iI-.-It "'" """'III' _piles. a"'" 

de "" in. m.Mer""""" '1tet\j/1IIer"o! au.-~ 'or tnio !O ""_. _ """"" roIy ..,.....,. on "'" """"" 01 klreo,;a" 

"""'<IQs. ~'" "'UI' conllrtUO 10 Ofea", ,.,.... _tIC ktIta ..... to. _III' /Ob'I ""he, then ei<"""~ ""'"' 

TIlI __ . I iO<lvoco!<l • 9,011"", Pf\O!tIng out of "'" PTe ..-• 2.<1 1"'" period •• "". _ ~ .. e "'" U,S. -.I power 

""""IllY III. <>PI>MUrV1)' '" ".,..".,. ...,. ... "'9'1 ."""""""' •• """ WO<li<I """o!oro """ ......... '" P<I>du"" l>PI>OIlun'''''. 

lor emplo,......l'. Ame",,"n ",,,-.,,,,. ",Iller ""'" _~ng ItII! joos mal ,..,., ..... gy M. crealtd ... ".., "'" I .. , ~ 

~". 

In ~M of 11"11 obollo, I .. 1><><1 "'" w.", .110 ""' . .... """"",tlee I<> m.~. a !Wporoson elfon 1<1 . , '_ "'" PTC ancj _ 

. ...... I00I\ II">IIt oM! not ,.. SU<II ""pPIong doocto on our ..... u5!ry I ...... you 1<1 """...,., "'" Arne""",,,. _ 

IiYehHoo<l. will ". "nowbtaaly ..,,,,,<Ie<! by !til. CIoIasioo, and !<l 'etIKI on "'" bene 1I 01 COOIirUnsi !<l .... ppon 

""rnsr>COl""",,<Ie """" I>OWII' T"" ..... yau for Y"'" .n..n\1on ,. ~ m.tIef 
483 

Statement of Emmett Carson 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.415

ChRinn~" D,,,"c C.mp 

Housc COlnrn;IH;C 011 W~)'S "",I ,\1(:".11\. 

J I021.ollgwoIlh Hous~ ()ffi ~e nu;ld;ng, 

W~~I"UglOl1 D.C 2(};15 

0 " bdmlf of SIlk on V.lley Commun,,)' l·uun<,hu;OfI. I uq,'c )OU lu r~",state the c-><p'rcd ch"rit.lbl~ 

gi"ing IU i"c{'''I;''\'S (kIlOWII ~_, cxt~"dm.'). " 'hid ~up[l<,rt VI<' ~I)ilit)· of Ch~rilics 1<> pfovI<k 

progr.UM ~"d ;"n'U;!"!I Ih.1 ~jjijl in<ln-iduaLo ~n l ~~milie , ~nd bend;1 ~'(Jmmum,ies ~crO!;l; th~ 

ooumry. 

Million! ~tt' ""r".ed b)' d,e e~scntilll "~l(k of public ehMit;e •• wh;ch;,; made I~";ble in p~rt b)" the 

charit.ble gt"in.: IIKen«,·" conrailwd in ,he <:xlt",kf1ll'ad;~ge, "111C,<: include I'rm- ~i"m that 

coufllg~ don.uom of food to help Ihme in nl"'~1. co p"t~ .. !O hdl' f'<'ople ,,;ho 3[C uncmployed 

look for w{)Tk und hook~ tn c·t:ono",k."lIy d;SlIJ" '''!:l!,,<=d ildr~ll_ Other p!"()\ i~io"s cncou"' ''''' th~ 

('liJunr ofitldi"idu~1 reurcmCIH atwum funds tu chorili<: •. ~nd th<: dona"on ofbnd (t)m<·r .. ~oo" 

1:<,,,c11lcnt. to pre,.",-" ul"'lI "P~cc, Co. &"ncflmOll'i to CO"k. 

AU oftlu"!S<: illccnli\"C".\. along with Ih .. ,<.,:t o( the t:I~ eluc",ler5 pt1ckage.l')(pi.n:d., Ih~ end \/f2<)1 I. 

ClUtm); off thi' "npotl~nt ~t1c.m uf funding 10 nun)' d'~ri!:t • ., .~ross Ih" coutU'! gt tlu" g.me ""''' 

Ihey ha""!<ee" Jcm:mds fo, Ih~ir hdp illere:.",. Onno", need to u." Ih~se ch3n!Kl>I~ !nc<:1l[""c, !O 

",~kc 1" 8'''' (Qmril>ulions. Our CQI)6t;W,,-uCY here in C~1ifQmi. dl'JlI.-",,,ll "n d1e pmgrnm. >Iud 

5ClVic"'l ch~nlh. s p'm"id~ thrQugbout Ihe )"e.r _ not iU~1.1 lux nmc - .nd d",n'obk orga1ll~~rion. 

,c<Jnir~ ,~""urCC" on a )"co,-rou"d bog,s. Th~ pcol'k \\"~ ser ... " ClInnO! \\",it for Congre~$ If) ,cinu.Hc 

thest' 1'r<!\';s;o.\S until Ihe "nd o(lh;s )' ... r (lr next. 

\X'.· re'f",clfo.l!ly R.k rh~1 Ihe;" inCl.111h·tJ [)(: r<:UIM~led illlln~.!i.lIc1y . W Ihar rhe donM~ ~nd 'he 

charitol>lc orwmh:aUo"., "." sc,, ·~ do nO! ""p.'nl~,ce an)" n">rc un • ...,tui""· or d"''''puon Qf their 

"'nrk, 

S"'r~r<:I)". 

£.rJ?c". 

Emmett D. C.",on. Ph.D. 

CEO nJ P!t!;IJ."U 
484 

Statement of Energetx Composities 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.416

TO: Th~ Hot,ls ~ W~ys and Means COl!lmitt~ 

fr: Steve n A Busch, Oirector of Hum"n Resot,lru., Enerle r. Compo.ill!>, Holland Mkhls"n 

Re: Hearins on Certain E.plnns Tao Provi.ions 

M3y 8, 2012 

En~r'tt. Compo.ltes Is a m3n" actur~rof utility scale wind blades, communll~ !CiI1~ wInd blade. Jnd 

nacelle hou,ings for the wind ""e'lTY indu.try. We .re headquarte red in Holland, Mkhilan. Ener~ .. t~ 

Composites w~. founded in 2008 aSa dJ~"jfjt.1llon e lfort from It. sist .. r company, 52 Yachts, a world· 

da"y"ht "!.,,ulacwring company with the Intent to "ti'"e Its [Ore compele""", in manufauurin, 

largeco'1lPosite structures if1 new Industries. 

Weare fortunat .. to h.\I~ uecuted agreements that p'ovide wbstanti.1 wo,1: in 2011. how eve" ou, 

cu'tome" are e."eme"" hesit.,,! 10 offe, any lor .. """ beyond 101<' due to the uncertainty oflhe. 

ProduCli"" Ta. Credl! IPTe), Du .. to recent ,,,,,tracts, we npeC110 doub le our wo,klo"e Irom 50 10 

over 100 employees in Ihe ned few month" However, wilhout.n ntenslon of the PTC, il r ••• fe to.av 

our workforce will be Impactl.'d In a neg"five way_ 

We Itrge Cong'e .. to e~tend Ihe Production Ta~ ((edit now, iD that proiects currently plan~ed lor 2013 

and b~yond can continue to develop. A PTCe>lensJon today will provide mar1<et cianty and _lIow oltr 

c\tSlome,s· wind dHelop~rI and wind turbrne OEMs- to place l<>ng te1m order. With OUf orl.~i.ation 

and Olhe" wilhin ou, supplV chain ,e,ultin, in Ihe conUnul.'d hir'n, of sk illed people and e",inee ring 

profeslfonals. 

Human ReiDu"es Director 

Ene ,g ~ Composites 

72S E 40'" SireI'I 

Holland MichIgan 49421 

616 _05 6831 

,bu,ch@tiarayachts.com 
485 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.417

II~ 0 

• i Enterpnseo 

SIAtemOn! of 

Entcrprrn. Co",muni'" I'grlnen; 

rur rh o R''''urd 

II "u~r WA~ 3Dd i\1<'>l Il$ Commine.' 

Su""onln.illu on S<- <t Re,'enue l\.Ie,,-, or .. 

ll rill ~ on CertAin ['(linng Ta _, I'm. ision. 

April 26. 2012 

Chaimmn liberi. RMking Mel"!>.:' Neal. ood Members ofth .. Subcomminc;,: 

Tlwlk" yoo for holdifl1llhis j,,,,,onan! hearing ()f1 1M value that lU <steride .... provide 10 Am"'l"icat' 

p""plc .nd lo"-income C<Jml1luni(ic~ acrt>s; the Mlion. Many of the "xpin...:i 3nd expiring IM ~ 

provi.ioos ore crucial to the ecoMmy and facilitate the .,'ailability to rri\"le capital (0) creal~ new. 

good-pa)'iog. h>ng.laslingj<)l:ls ill the comnlll"ilics lhal "<:cd Ih,,". 

At nl~'llri ..... We tre~\C oppOrtunity for low· and mQdffllh,·illComc poople through arTordable 

hou_.ing .n" di~crsc. thriving c"'l1nluni"L";. For hoosing 10 be 8 s['!'ingbuard 10 n good lire, il !Uu.>1 

exisl in 3 slLpponi,'I.· living cnvironmcm wilh job!!. q' ~lity scllool~. child car~. lr&n.spor1alion. Ilealill 

care und $Uppon for ""niors. with ~tt~$ to SOrYlc<'l; that supJlOrl B I\l.'<llthy lif""tyle. EmerpriS<.' 

dcwluPJi and pres<:n'es all"rd.1hl~ hQl1.<illg ill CI,)1nmunilics lulking pl.VVle 10 QPpt1r1unitio:s fOl 

IIeC<.>s>, When Ihc~ links nN ah!oCnt. Enlcrpri!ol.' fnnn s publk·pri,ate p:lnnerships mId bridl;~"S !c\o1p5 

toward .",:lUng mo ..... vibrnnt ploces for pe<lple 10 li,'e and po ... ..., their dreams, SilK. 1981. 

Enlcrpr~ ha.< .."i$O'<l and iov<-;Ictl more Ihan SII billj"o to help /i",,,IC" olore Ihan 300,000 

aITordable I~nta l and for·sale ilome"!; 10 cr~3te vilal cOlllnlUnilici and mot\' ~'lIl.' .l10.000 jobs 

'1lI1ionwidc, 

Two of the most imJKInant tools Emerpri'" and lIIan)' mller hOllsing and cOllllllunity deveiop,,,cnl 

(}I'gani1a1ions depend "1"1" 10 ",",,:ltt \lCCC Ss rlll. vi bmnl omn1Uniti~s IU'C d\<l New Mark",~ T:lx 

Cn-dil. Which cxpin-d al 'he CIIJ of 2011 • ..00 the l ow hlCome ou~il1 S Tax (,redit. a provisiou of 

which 1 .. ~ elTccli,'dy "-~pi",d for many are"" of the nOI;Oll, We urg" II", ,,'{)/nlll;uee 10 pport 

cxtcndin~ t~ ~xp;rlnl!l pm ;'-l!l . 

The New Mark~l s Tax Credil 4NMTC) proyid"..! 3 39 ""nocnl credil over ",,',," }C"'" lo~ in"eSlmcnt 

in ""onomic~II)' distn."'SSI-'<l communi,id;. Ta~raycn; made in"c lmcnl~ in ('m]1rnllOity lX~elopme", 

Enli,ics {C E~) Ihl.1 must baw a Irack rt'cord in community dtvclopmcnl an'" hive cst~blished 

comOlllll;t)' ,cwonlobilit} mech'lIis",,,- All uample I>f. CD£. is • w mmlll1ily dcvclopmcnl 

~ol"\'lCKal;on. CDFI Of loan fund (}I' pri\nle Jinand"1 inslillltioo, The CDEs u~ Ihe capita) 1m", thOSC' 

;nl'cstmcniS 10 makr loans or in,'estm,·nts in busim'SSCs locati.'<I in ccooomicall) distres.>cd 

communilies. The NMT(, i. lin xl raord;n~rily nc.iblc flnane i,,!! tool. providing k~y 10W..:o,;1 

capilal to retail «"lIters. r~~ ()rics . j,)1> trainiTlg: C<.'nlcr'S . .• malt I>usfne'$SCS. CN111cr >c hools. and health 

,'COh,rs. SIIch ''ariclY is due ", tne !1cxibility of the I.a.~ cn,dil in allowing l<)Cal mar\o;.cl forcO'S and 

comOlllll;t)· inpot 10 d~ .... idc which project. lind b""ineo5l's :rn: j;n3l'c~"' . so tong 3< Ih. project ",,,,,,IS 

the ba;;k ~'1'itcrla of !\<ling Iocaled in aO e<:OOOnlical1l' di.tn."'s<-d census \nIet. wilh the inlcllliOl1 i)f 

spu".inl' ,,'\.'unom;c growth. crell1ing jocl.1 jobs. IlIId impro\ inl' s\rlt!WJinJ; communilio:s. 

E"l'EIIPlltU _UC POJc-' 

,&G_ .. t.s.....,"'." __ uc-~ 1W_""~"" "" ... f-...-· ... """""''''" .n ... t~ ......... ''1''''''' 
486 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.418

~II~ . i • Enterpnse' 

The NMTC prngrnm i. among the T<lp 25 program~ gi,'en tb,- p""I,gious ·'I"oo\':lI;on. in Amc,icHn 

GoWrllm~nl Award," 8d",ini~lcred by Han'un! Uni,'fNi lY. That recognition is d"e in large pan \0 

Ih~ ,cry slll'c~~s f,,1 puhlic.priv~tc p"nnc ... hj~ wh~rc: private so.",'lX financing i. t>roupll 10 I)<,ar IU 

bring communi() bendil. 10 ",!!I"",erved IO",-jrn:Offi" con"'''mili~;;. 

And th""" in"e,;'mcnl.< w"uld nol have bc~" ",.de WilhQut the NMTC, J}, 1007, the U.S. 

G(l\'crnmcm A"co"nlabilil~ Onicc surveyed imcslOn and reponed thaI 88 pcr~i.·nl indic.1lcd they 

would nO\ ha,e mOOc the i,westmcni ",illlOnl II>< NMTC and almMl two-thirds !iIIid Lhcy increa:l<...J 

lh,~r im'<'SltnCn!5 in low_i,,,umc C()InmUuilirs tx-caUSl.· ..,1" lh<' Cn"<iit 

What nuke> this ..-redil SQ c<)St."/T",,,ivc f(lf IIXplIYers i. the extraQrdinary amOunt of pr;VlIt~ ... pillli 

(h~1 is unlocked through the inili&li,'c. AeCllr<ling III data (rom thc T"'''SIll)· lXpan.menl, for e\'ery 

on~ dollar offedeml i",,~slmeI11. S8 ofpri"ale c~pilal is Icwral'c"1. 

In 8ddili<)n In tlli ~ ........ ml \)f achic\'cmcru. thc NMTC "nj"y~ a 1001; hi$I0'1' of bipar!isan sU!'I',m. 

Inspired hy Jpck Kemp, Ihe c",<lil WiI.' ulIllloril:<:d by the Coromunily Renewal Tn~ Relief ACI of 

2000. "ppr'lWM by :r. R~pLlblican Congre!;>. w,d $i~d inl1l law by President Clinton. It wus 

implconenl.'Il ~"d slrun.sly , ul'IK>ncd by PresidclIl (ire'Sc \II. Bush. A Republic,," ConlV"'s 

authorized ~ sp..'Cial S I billion NMTC allucatlon in 1()05. Aller il expired f()r the Ii!"!;\ limc. il has 

bee ... e.~lcn!k..J Ihree tillle_ i" 2008.1009, Rnd 2010--\\ith troni bipanisan suppon. 

In thc II!" CorIgl'CSS. 64 Hoo!oC ",crobel'l. induding. 14 nil Ih.· \\I~>s & Mcnn~ COO""lllCC. ha,c 

al",ady cQspon>Qred 11K 2655 (Nc-. MarkelS Tax Credit E''ltension Act of 2011). whid, ~ek~ a 

f,,·c ·year c~tc,,,i,,,, "f 1m, credil. A companiun l>il1 in the Senate, S. 996. also ~,~oys 'he birani.,m 

suppon of 24 senators. Enterpr~ fully "'pportS the:;c bills. but alSlJ believes Ihe prvgr1lm II-"uld be 

~ven Inore su~eessful if the NMTC were made a pertlH.nent pan Qr ,he JO!enl~1 RCI'enue Cod~ 

throu!,lh eumprehen,il'c mx reform. 

Ind«,d. Ill<, Chllill'rl~n Tilled in his O!Xnil\8 StnlenlC!ll, ill' n fi~" ex<'eplinl1f , ~mplJrQry la, 

1"",,'1$10(1$ ,hal aft! wOTIhy ,"(mld bI: mod, //i:rm(mrm.'· \\Ie sITQngJy bdic\'c Ihe NMTC is 3 pt:rf .. 'Ct 

example of a lemporMY prm'ision thaI. if m.de p"m,,,,,,,"'. would rHuh in an eWn III"'" successful 

p"'gr~m, 

Like the NMTC. Ihe Low Income Housing Tax ('H,dit (Hollsiog Credit) is allOlhcr nrunplc ofa very 

!O\Io!ce5Sful public-pri'at. panncrship. Sir\\:c lIS inceplion a~ pan "rlll~ Ta~ Reform Atlnr 19%. and 

sign .. od 1010 JIW by I' n::sid~n\ R~agan. il Ws bI:cmnc the mnion's mOIl, successful affurdable hollsi,,!! 

production and r~""fmtion loul. rll)ancifl.!! more than 2.5 n,illion affordable r"",al homes. creating 

almost 3 million largdy >mall husi""ss job;;. and le"eraging Illure ~'an S75 hilllu" in I'lival~ 

invcstment ."'pitat through public-prl"mc pan,,~rships. 

Tm, Housi~g ('r~d ;1 is v;lnl to the ~r(alion Whl pn>$<''''ati(lll or affordable hoosing in ~"e'1' Sl~t~ in 

lhe Unioll. \~curdiug II> I~ ~li ~1 Coor><;il Qf Swc tlOll,iug Agcn<,:;Cj! (NCSHA). appro~imatd~ 

90 percent of 311 affordable re",al housing product:d annually is finarn:ed through the Hou,ing 

Cmlit. nnd in 2010. 1",lf nf II ntul,iIlllnlly ~ans \\Cre finalll'»d by tM lIo~s;ng Cn.-Jit ""cord\ng 10 

Ihc N31ional Association uf I lome Bui lders (NAHBl. In 8 Iypical rec~"t yc~r. Ihe emlil frrntrl<:e5 the 

production of 100.000-120.000 31Tonl.lblc hom~ ... suppnn. 800ul 9~.OOO jobs, and adds 

E1H~RPIlISE P\JBUC POLICV 

~Cl_"" _4l'O ''' ''_OCl!OO()l ;>O.l '' '' '' '''''' --'r)" ''''J: '~''w r:..<;p.oot(._., _ 

, 
487 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.419

~II~ - i • Enterpnse- "ppro.ximaldy $ 1.5 billion in I.a,,~~ and olher re""m"'~ !O )o.:al ""onomics, ac.oruil1K 10 NAH8. 

Housing Crt"dit properti.~ un: ve.y we)1 m""aged, ",Ill an ,"'(remel), low fore.::losure mlc of 0.62 

1"''''''''' (>,~r;1i 26-y<:o' h'$10')', .<cording (0 the Rcmk~ Orvvp. 

While the Credit i.<i r~,,()nsiblc for this i",pl"C'i~i"c re<'On! of ""hie\'.m~m. Lhe n~d for nlTor!ldblo 

rental housing is acule and &,""w;"!;_ Rem.,.,." arc col~~lraincd by a I""k of ;''''ome YOII'lh, a"d as 

more pcopk to dccilk' 10 ",,,I. 11..::", ha> nOi Dee!> an Acromp.lnyinS irn::reB;;c in Ihe .upply of 

arrQrdnblc apanrncnl>. !Ia ..... ard· ~ Joint C:cm~r for Hous;n~ Stodi.-.; recemly dOCumo"l...J an 

aOQrtl.1bililY crisis: 49 PC"",!)l of rc"l.~ in 200'l were al lca:;J mu<knl!ely l'<.'/:il_burdl"",j an<J 26 

p..'tc<'n( "Cr. se"orely oosl-burdcncd. Fur1hcrmo",.lIarvaru <kt.rmin<'d ,h= is u ll"P of6.4 mllliun 

apanmrms beIW\'~" Ihe low.int()m~ families ,;ee~ins for hQ'LJ;in!l. and the In"enlQry of homes 

affordable alld available to th"",- In the t)'pes of jobs curT .... tl)' hirinG new workers. four Out or,,,,, 

r,ve mos' p..::\ ~lent job.; do !lot pay workers enough to ufTord to rent or buy housing all)'l'icHI priC'-'s 

n~,ion .... ide. ocrordinJ,' 10 tM Cemer for IlouSinll l'olic). 

Although the Iiouslnil Credit as a wlwlc i~ a permanent pnn of the Code. the Ilou.ling and &onomK 

Re.:o~et')· I\ct 0(1008 (lteRA) cre311'<'l a temponuy minimum cn:dit percentage for no,,·ft'derully 

""bsidi.cd new bu(ldinl.'<"' 9l"'fn~lt providM th.,y 8'" place..! iot ""rvic~ bef"", ,m, eud of 1013. 

While the credit nonr t~'<:hnic3!1y <I, ... ", not c ' pir;,' until tk~",ber 20lJ ""d "c,' \",d~.,,;tan<l the 

h<.-.lring only addressed tll.~ provision,; espiring in 2011 and 1012. We !>eli"". lhal it soould be 

''''rI~id~rL'<l bec31l.'" the u",("loess oftl ... · e!'<.'dit noor f"" purposes of finanei',g new aflt,ruable ",mal 

ho\,siull eommunitl,'S essentir,lI) c~pired in c'llrly 201~. It t~pieally takCjl 18-24 ml1!llh~ From tlIC 

m(plnent a d~eloper IS ~wardcd Iionsing CredilS from the $tate allocatin!! age...:) to t!>e completion 

"nd I"a .... -up of. linished ap:uuncm building. 

W~n HERA eSlIIblisfJ.,d tll~ tcmpornl)' minimum credit rute. it diminatr.l lhe uncertainty of the 

pre"iolls "flo;"ing mte" ~~stcm and hd~d fill the funding j!lIJ>S by providing mn", pri"ate ~qnity to 

any <me pIIoicubr propeny. The c~t"",iotl of the c!'<.'dit noor. or !Kuer )'c!. " pennanem minimum 

credit ""rccllta!;c ..... ould continue to slabili1.c Ihe nflbrd~blc "p;>rtnwnt lIla",,,t and promote. it PS a 

frn,mcially stable induSlf), in ",hich w invcs,. In additiOQ. Ihe .dmin;strntion of th e cootin,,<'<! credi, 

noor does not imoh'c "')' additim,al ),'O"cnunent o"".,;il;l" and ",ould thus cost linlc f(l1' tilt: 

gO"cmment to cS~utc, Furth<:nn~. be~"Si' tilt Housing Credit is caplocd in eWI)' ~tPte, the c!'<.'dit 

noor doe!; nOl 3dd Rny addi,ional oUSts. Laotly. if a allo..~~ting agen<:y dcem<'<! that a projei;.'l ",,('ded 

fe ..... .,r lIou.in!!, Credit •• it h3< the ability to limit the gmOnm of Credits flowing to a [lfopen) or 

pro~idc PfCfcrcllc;:,; tn thoS(' projt.:t:i thnl do j(l OIl their o"n, For tlll'~ .... awns. "C belic\'( il i. 

importanl \0 ~teotd ur mHke permanent tin- c!'<.'dit floor cspeciall>' in th~ difficult ,;mes for 

aITordable housin~. 

If the erelli, nuor is flOt utend • ..!. Housing Credit·finunced propenies rould lose 15 - 20 percent of 

Ih~ pri~8te equity it could have olhcrwi!<i: ",eei"..! for Ho",in]; Credit alloc.tion$ st.1ning thi. year. 

n ,is would IIkd)' have a ""I!atj~c iOlpll"t OIl dli< tluonlwr of famil ,es s<:N<:d. ~nd \h~ types of 

afTortl1ble rellta! hou~ing developments thu\ ar<, r,I1lt)ce..!, 

Foou"nt~ly. 38 Ilou~ m~n'h<'rs. kd by Ch.airman Tiberi and Ranking M~mlwr N .... j and including 

15,m the W~ys & Mean.s Comnttt\C<.'. hav~ alre,ldy CO!flUlt'lOfCd 11K 3(i()1 whiCh would c1tlcnd In.: 

, EtHEcRPIiISE Pl)BUC POLICV 

~Cl_ st. S-4l'O • 1'1"_ PCl!tI!m • ;,>O.l.",-,,'OO · .... ",l-..---'r)'''''J: . ~"w r:-p.oot(._.,,_ 
488 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.420

~II~ . i I Enterpnse' <r~..Jil 11001. ,\ compM,oll bil l in the Senate'. S. 1989. ~I;;o ~njoy5 In..- bipaniJ,;,n suppon or 15 

,;enal(>r;. 

A~ajn. We Ihunk you ror holdini Ihis h~nring "mllook forwald h' \l'lIr~jng willI ),{)I, and Ihe 

su\)..-ommiue.. mem~rs 10 cnaCUIl extenSion "flh~ l&~ pmvisiolll; Ihi. }ear. 

E1H~RPIiISE P\JBUC POLICV ,~c;_"" _4$O .Y, "_OC1OOOl .:)O)l l<~ .• ,Qol '~ ""~""""'Y"""~"w,~..o<_;", _ 

• 
489 

Statement of enXco Inc. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.421

M.y 10. 201~ 

The H",,,,,,,hl., Pal f iben 

(,hojnnan 

U.S. 1100"" W~H nn~ Mear" Subcommill ..., 

on S~~I ~ven"" Measures 

106 C .. mon II "",~ om •• Building 

Washington D.C :W~15 

Wnn.n Commem;- S"bmined by: 

1).-, J.m~ A. Wa ~c, 

Vie~ CI1]inn3.n "flhe IJ.oIll1l 

cnX.-o, I"", 

Tel: m>Q1 83-:·5055 

£mail: ji \...g~M,. ' 

l'lw Hooonob!. Richanl Ne~J 

Rankins M~ml:>o:r 

U.S 11"0", Way • • nd :'k~o~ Sul>commin~ 

OIl Sel..:! e"~nue ~I.aw~ 

1208 hyhltrn Ih"'''''OlTocc Ilujldin,g 

WaShinglon D,C. :101 51 

Sutx:on \Tni,, ~ Suhenn"nil1U"" Sokct RC"~nu~ el\S"1"t'S 

Til!C ofHl":lring: "C.rmin bpifiosRel'enue .~su,~ s~ 

llo.leufH~ari~: April:::>O.10Ic 

Denr Chaimlan Tibe,i IIOd RanlJnl!, Member Nnl: 

As )'00 ",,,,,ider e~len''''n "r cenaio IlIX pno.i. i<>m ,hal d,her h., c ""pircd Uf lire dU<' to c~p"" b)' Ihe 

e"d "flO!1. W~ "'lie )"U IQ I.~C (Xl. ili.,,· DelillO ~I Ih,' caolie;" p"1~ ib1c lime I" "Meod Ihe ",,,0"'3bl. 

rncl'JP' I'!"<)ducli"n T,, ~ Cre<iiu; (I'TC J d"" I" expi,.. 31 Ihc ~nd ofWl2. iht PTC h"jl'tl:c;ve:d 

bip;>ftisan ,u~!>III'I since fil1il cna.,td in 1992. The PTe wu. lllo,,',oJ 10 expire <I. c,'1CndcJ 100 laic for 

proj«:. pl.rminsand "'Iuirm"", J'f"'J('u r<:rm~" th,..., liml'< Ji",,~ 1m. rtSu!ting ,n <Imp< in in<lu~lry 

iow,lme", lhe foll"""ng)"ar "r.n '~flIge ,)f81 %. Wh~n Iho I'TC wal ,· 'I~nded in a timdl rnA"",..-. 

from "I)O~ th ~ 2012. Ihe wind ,ndusuy Vt'W from less thas. $1 billi,," in inVeSlm .. m in Z(J().lIO "'-'llrly 

S:::>O billi"n in ~009 lind "1<111 likely in ~012, Wilho", a rimci)' cx'cn i"" io 2012. lho US I>oE tXfl<'CI. a 

Sl' ...... drop offin ,nvOSlmenl in US "' ,oJ proj«:1S in 20Jl of90·I~. Thi! WQIIld ","use rh~ 1<». Ofl<'1l$ 

uflhuu ..... d' ofjul>s and I~a<llulh .. 'hul d"",·" "rollmo,o ... malwf"wrinll f3<:ilili",.",.bli,h,"<I wilh II", 

~pocmlon oreOlllin,,"'" ",Iic)' la~;liIY in lhe US wind mark",. 

I'TIXon. In< .. HO H>t' "nc~jcs N<lu.'cll<'S Cil<npan) , i, a mUjUf de\Olopor. 0",'0'" .nd opo.·ralnr<lr 

",n"wable.-rIC'l!)' p'''io<I' io N"rth America based in San DicJl,'" Chlifonli". cnX",1'! ",oewobleeocrgy 

ponf"I;" w,,,i,,, uf ",,<1' 47 I'tMwahlc ""ergy ~roj«:l s in I ~ Sill'''' , Wilh add ili""", dc"clo~mcnl neli"iIY 

in Mexico. a nd Canada. Ou Operali~ ."d ~1&i"'''n.ntt Team. Ihe largest Nofth Amtriean pllwl<l<ruf 

lhird pan}' 0&1>1. SoI',."i~c "vtr 5..37Q lurbin~s r.p,..,.~nlin!l16 d;iT~r.n1IUl'binem~n"fa.:lurerJ. 

gO .... rDli"Jo; ovor~ 800 MW of e!cclriciJ)'_ onXm has ."",.",fully d ... ol"pod 31 wir.d projl'<L< 

g"""ratinf ",crJ.OOU MW., ... 011...- mUlliple utility_scale ""I.r proJ""", 
490 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.422

On April ~6 your Subeomminee he.r.! (eslimony from a number ~rwi(l~s fmm b<>!h .iue. ur(he . ;,Ie 

"'!!'Ir(\ing wnal is a( .<lak. fO, 1M nali"" irille I'Te is 1101 ~'I.Ild"". Ltl me brieOy d~sc,it>e wh.111 ,,'ill 

meon (0 "''' rum""ny or!d cmplo~'i:"., 

enXco i~ lonon.le 10 h.,·c bolh ~e<>gmphic mI (""hoolog,)' diwrsificalion" hien will help i( \'~~Ihcr 

wh~1 we foa, "ill be a wI)" Ic,.", US wind indu'I!)' downlu,n in ]013. We a", acli,·c in Canlda and 

!>lexi"" as ",eft as Ihe US. aJld aro makin& inveslmenls in solar, biog:l' ood bionl."" ,n addilion 10 wind. 

Unlil. ""me ofou, compel;IOI"' in lhe wind devci opmenl seclo,. we h,,·o bten abl.lo~void lay 01T. 10 

dal~. II 0w.,'.,. from ~OO3 Ihrough 20 11 our head COUIII nearly 'luadruplc-d from "round]OO 100VC'I" SOO. 

and Ini, lrend has now nallen"" OUI. To COO1I"'''' ou, de,.Jopmcn l plans in 2012.nd 2013. WO! III,. 

seyersl hu"dred MW o(wind ulIde, cnn'lruc\ioll in tho US Ihis )'."', bill no U.S. rrujrcls ",u.,.mlly 

5<'hM'lIcd f()teo»>tl"clion in 2013 ~i,'en III< unce".'"ly aNullm, PTe. 

Pcm~ps tnc mOOI >t"01l1 cO<tCcm "''' """.. "'garding 'he~~plra ti on of In" PTe i$11>< impo.N Ihis "'ill hal" 

on thc wil)d m.nllfaCIO,illg suppl~ chain _ 'f.n y~ars ~g'l Ihere "'''''' realty (Lnly 011. or lW<,l '11""li." of 

IIj(bin~5 1(> I"" US nwk"t iGIl ami VOIll3$). and Ihd, Jom(o$l;':' i:'<IlIl"nl .~ b<."lo),,· 30%. This ",,,ant 

,'t)n!idmlbl .. fo .... iGn ,,;,<ch"n ~. upcl<" .... procuring In",,, ,,,roin,·s "$ ""II as tonsid.nLbl" doli...-!)' 

!ioChc"'u ~ risk. , inr •• ""Y, a Jock Mrik. in ~nod\c1 coum!), <<l<Ild .0",. ~ dela) 'hal pr"vcnl~d oomplo,i"" 

.,r .. projC"1 "'i\hin l~hl tiwncing d~t>dline$. rhi~ year we I\a"e .. ",ide sri,."""" ,,( high q.all,y lorbi"" 

suppliers anJ Ihe US contenl o(thcirprnducl i.l>.."1w.,.,n 50 and 70'!i0. I(m.ny .. flh",. are ("",~d I" .hll' 

,h~i, doors by Ihe tnd of.he )'e-:o •• it "'ilt be." wI)' h.rd 10 pC1"!""d~ th"i, fMnalli.'Tl"..,1 ond inV<'SIOrs to 

come bock 10 Ill" US m.rl<e1just when "'" can lea'i .1T,,«110 I"", high I),yi~g manufocUlring jok. 

Over 1m, longe, lerm we 0 .. optimi"i<'lhM "'lnlim",d adv.""", in .... i,'d lurbine "",hn"logy. """,wed 

1lf""1h in ei .. ln"ily <I~mand, anJ ,h<' inh ~ .... nll>..'n,·~\ . or. I"',,·.r gentmli<>n «",imoloQ' Ihat h.~ "irtllally 

no .i, .. mi." io"" Of ""10' u~ .• nd "" ful" .... (u~ 1 rri"r ri!k. will all"w a phO'l" d"wn o(tne f'TC. 

c'p'ocially if bNlllder I •. , re(om, ran funhor··le,'cllh. pla}ing fidd·· b<'1,wcn "irW ~nd con ... ·mi"""l 

I'<lw<r ~o "'._<. IJO! th. immediale u'1'om ""'-"tl i~ (<I, a )1\0" lerm. on .. 01" IW<I year ")<Irll.,i"" ofth. PTe. 

,n ol'Oid a d.m~ging blow i<) ao induoUry "h;<~ noS demu~I"' ro it h.~ so mw:h hI Cilnl"bul. IQ Ih,' 

rntl''''''S ('1"''1!)' !~. t~ln and .con<mty. 

Sin""",I)", 

l>r. J"m~s A. ~c, 

Vk .. Cba,m,"n 

enXco. I"". 
491 

Statement of enXco Service Corporation 

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2411pril1011 

Mike Smllll 

en)(co Servke Corporation 

Britt. 11\ 50423 

mike.,mith@en",o.com 

Committee Member>, 

We ha ... a nationwide go~1 10 i" cre3~e manyl3cturinS JobS ana to stimulale the construction i"dunl)'. 

s"ems logical, then, Ihal we would want 10 ,I,mulate Ihe wind "n",BY lndustry. 

In order to ,n«nt compan'es to build a slronS manufacturing base. the market must be traMparenr and 

relallveIY!"r"ne. Th,,'e will be new elftCVlcal generating ~cllltiel b~llt I" thil count!)', It is just , mitte, 

e>f when and what type. Intermlnent renewal. <>1 Ihe Wind Production Tao Credit are hlnde,i"g the 

wind ene'gv induSlf'/ and Job growth in the supportlns manuf.cturlng stew,. as well alIne conSlrucllon 

I&tor. 
492 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.424

April lA, 20\2 

1. I.ck Kenw""hy. cnlefExe[u"v~Otliceraff..,ll.n Renew"b leEne'l\Y. LlC in PtIrt."n",,!h, N"w 

tlamp,hlre. respoc\fuliy urgo c.."grI!'5' 10 ~x!<",d !h~ wind ~n.".1O' productlo" lOx c, d;! {PTr.} a. qlllc~ly 

';IS pos,lble. 

Th. PTC drl .... hilBun. ufdull~'" 11\ pm".'" "'V"'''''~II< '" humet;rown Am"nc~n wiM pUw~r"~ch y .... r. 

t."lIa" R.new.bl. F."efIlY, U.c opond. millions of doli.,. in pnv .. c cap,tal each yea, devclap'ng h,gh 

quail!), wind energy projoct!; ,hrou!:",,"! \h~ Unl!N SI<H~5. Th .... a .... a!·rl,k prlv~U!.lnY.mn.nt5In 

pn'jen d"".lopm<nr tht !>en.r., loul l.ndown . .... <on<ul .. nl.<. en~;n ...... I""'Y""'" <o""orv,,,lo" NGO< 

and oth.", wurkln~ In .... "'1 p.rts nf Amortco !hal h .... be<:11 h.dly hUrl by !h • ....., . .. I01t, CJtlr I)rojoets 

bring hundred> uf thnu •• nd. o[ dull ... l" ".w ta. "",,,"u" W ntr.lloWlls that a,c .","'.,,! for new 

rw~IIoje opp<>rwnltlet. and cr.m. hll"drN. of high ~u~Ii!)'. hi 8h pl ying jobs durtng CQ ilnt<l.l~t\ and 

d~~<"" ,,"ore durlnt long "'I'm Op',"110'" ot th. 1.eIUt,)'. A, ,,"ore htgh qU311ty prol~CI' .ro b\l, ~ th. PTC 

.1.., h. lp;s .nable manur..ctor!ng lobS by~re allng P'''jl!<t do,nand - thus xp."dlng the P'''1fI.~ ]nll"'c! 

of the cn.'<lit - ex;rrtly what it i •• uppo ... d to do. 

Our nJl~""'. "n~ others. ",.., . 1«> e,j" e .• lly Important to ."hl""ing "."onal. r.-gln",1 :lnd ",10 goal< fnr 

Incl'u"nB d •• n clletJ:)' Bc""",fjo". Th. f"fC to a <r1!ical ",'mp,,,,"m dtt.inK 0Il1' '!lv03llncnU [It th .... 

pNlI ..... U, A~ A \!1~ crodl! hased on nrod!)C1IQn, the PTe lM'en!lVlW u"o ~letI in~~!tn~ntJln highly 

produn,, " " "a. wh~r. th~ maXImum """,un' of ~nergy <lin be "rod.<cd, .in<~ the (....-.ll! I. bo.ed on 

the omoU"' ol"onOfIO' produ"ed - not th .. cos. "r the ra",li)y. Th. I"" prescn!> .n x"",lI.nt valu" to thc 

wp.1yer In lhot It drive. YilSUy mo,"" p'i"'," In.o."""n! In quail!)' I'rII)""t!;!h.n l! <o,t.I t:."p.~ ... nu 

boca."" tI,. rn ba, no value (or co>!) U1>tll all o[!b. pti''lIt. c~pi!al i. In placo ."d !h. project i. 

acru~lIycr .rlnK lob. and prll<ludngdean. <lam<l5u< ~n.rl:Y . 

I urg" tlu< [o""n]" ... !o tab up an . "ten.!on 0' tit. wind ""orgy p'MurHnn !u credit. tight .W3Y, 

Thank Y"" ro, your <on, lcle"nlon of'h""" critl<ilily lmpllmm! ;"ues. 

R"'p"rtfull.\' Submitted 

J",,~ KeowQt1hy 

eh"'l fL<uo,iW OIfl<V" 

Eolia n n~ bl . En0'llY. LLC 

155 ~IMISu"'II--.v" IoIH I C:J.801 

~~~_<;\I!!l 03 ~70 4!><2 
493 

Statement of Eric Silverman 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.425

From Erk J, Silverman 

San Francisco, CA 

To Membi:-n;, House subcommittee 

re: undcrwritiug wind ~ncrgy lax credits 

,£.wmple: The PTe llril't!s billiUlIS of dol/lirs il! pri\'(//e im'l!j'lmCIII i" homegrowl! 

Amakml wind power eadl year, I hlll'/!' s!'en I/le wimlJol'lIIS in IIII' Altamolll 1'1I,1',I' 

lIeul' III)' hOllse revilUli::./! my COlll/llllllit)'- brillgillg ill cOllstruaioll jobs (II fin", lIlIll 

mointelllJlleC jails ill tlw 100Ig rerm, 01111 KenermillK rC\'t.'IIIII' for 0111' cOII//11l1l/il,l' 

sdl()()/s tlml hO~'Pilll/~' 01'61' rhe lifetime ofrhe projecl, The siS/II oJthest wind 

lurbill<'h' i,' ll "isibll' "igllalllllll wind is 8uillillS local. lind pllblic ,'Jll'purl.lJlld 

Impefllll.l', YOII ~ee Ihi,~ happenillg, as well, 

"rerew'illl; lire 011/011111 ofpoll'el' Ihat our COI//11I')' 81:IS fmm deol/, homegrown, 

affo/"dable resOIIf"!'S is ml eXalll:lltlilills/or lIS /() llo - ontlthis IlLl: credit prOl'itles 

lll! iI/celli;"/! for tlu: wind indllstry /0 t'onlimlt' to do jllstll1m, 

lVind is hIJpl',jobs (/1/(1 c/NlII. 

-II/rge lire (,OIl1/1lilll'C /Q ((Ike 1If! (III eXlcn",iol/ of tire "'il/d 1'IU'rg)' prudl/ction /(IX 

credi/ I'ighl (lway , 
494 

Statement of Evan Osler 

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14 flprl12011 

I, Evan O,ler, iltullnlcal sal~s a<count man.g~r ilt NRG SV"t~m' in Hin~,burg, Vermonl, respectflJlIv 

urge Con8r" .. to exlend Ihe wind ener8~ production lax credit (PTe) 8. quickly ~'I>O"ible. 

Tile P1C has lor years provided a Il'Vel plaving 1i~ld lor wind energy, and has illiowed the Industry 10 

burgeon and create thousands 01 skilled )ob~ln the USA. While I am nol a proponent 01 governmen t 

handouts. II r. critical 10 note thatlhe wind indumy i. me"'lv il'eking a level playing fie ld to be able to 

compete for a slice 01 the domestic energy supply. W,nd energy work. - lor 1M economy, lor nauonal 

securlly. and for Ihe e nylronment. It deSl!I\'es vour bipartisan s~ppo". 

Sincerely. 

Evan Osler 

NRG S~SlemS. tnc. 

110Rlgg.Roild 

Hinesburg, VTOS461 

Tel: 802.482.22'>5 ~140 

F;u: 802.482.2272 
495 

Statement of Ewa Gruszczynski 

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I, fWa GrunclJlnskl, Sr 81111n9 Qnd Revenue AnQi)lSl, ChleQ'lQ, IL, rt'.pecifu/lr u'ge C""9re" (Q eNlend 

Ihe wind tn rgy prodvctlon tQM creIJlt (PTC}QS qulck/rQS PQssible. 

The PTe dr'v". biWQn, 0/ doUars in private {nvl'Slmen! In homl'gfown American wInd polNt!f ~oc" veo'-

have seen Ihe wind fo,m ,~ llOlile communiry - bn'n9ln9ln construaion job. 01 (irn, and moint~nQlICt 

JDb.ln fhe /on9 le,m, Qnd gf!nerolin9 revenue forcommu/l,if)' «hool. ond hospila)'; oW', [/Ie Ii/tlfme af 

Ihe project In"eQsln9 the omQIln! Q{PQlNt!r Ihot QUfcoUntry geaf' Qm cinln, homl'grown, offordablt 

resoll"'''' i, on excellent Ihing for us to dQ - ond this ta~ oed!1 prQvlde. on fnunti"" for the w;nd 

Industry IQ cQn/lnllf! fo do /un fhQI . 

• / urge tile cammillee to toke up Qn en. on of till! wind ent rr;y produc/ion ION c,edi! right owoy. 

!iinCl'rery. 
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~. 

II 

FEED NG 

AMER CA 

Statement for the Record 

Submitted by 

Feeding America 

For The Hearing on Certain Expired 

and Expiring Tax Provisions 

Before The 

U.S. House of Representatives 

Committee on Ways and Means 

Subcommittee on Select Revenue Measures 

April 26, 2012 
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ChaIrman TIberi, Ran~jng Member Neal, and member5 of the House SubcommIttee on 

Select Reveflue Measures, thank you for the opportunity to submit thi5 statemeflt for the 

record on behalf of Feeding America. We are grateful to the Subcommittee lor recognizing the 

Importance 01 eumining the Impact that numerous expired and expiring tax elltenders have on 

the US economy and American taxpayers. In particular, Feeding Amerlca recognizes the vitally 

importafl! COfllribution that the charitable gMflg tax extenders have on the nonprofit 

community and those we sefVe. We urge Congress to swiftly renew expired tax provisions 

while the process of examining extenders In the context of comprehensive tax reform 

continues. 

f eeding America 15 the nation's leadinj\ domestic hUllger"relie! charity with a Iletwork of more 

than 200 food banks in every state sefVlng over 60,000 local food assistance agencies. Feedlns 

America lood banks as well as food i15sinaoce agencies relv on a variety of public and private 

funding Weams, sovernment commodities, as well as food dooated by retailers, food 

manufacturl!fs, farmers, and restaurants. Last year, 11 mlliloo peopll! •. or onejn eight 

Aml!rlcans, received I!merseoev food assistance through the Feediog America network of over 

200 food banks. This represents an increasl!J)f 46% since 2006. As a rl!sult, ap'ppximately 5.7 

miliioflReopi'tPeI..:!'deilare now receiving emergency food ilssistance through feeding 

America food banks. 

OurJng t~e worst economic do ..... nturn sirn:e tile Great Oepressiorl, tile (lumber of Amerkafl 

families wuggUng to make ends meet has increased slgnlflcantl¥. With unemployment 51111 

hovering near 8 percellt and millions of Americans undl!remplOYl!d, thl! nl!ed for food 

assistance continues to grow and food ban~s continue to be. pressed to meet thl! need in their 

communities. 

The fooc! distributed by feeding America and the programs our food bank members run in local 

communities provides a solid return on taxpaYl!r inve~ ments and hl!lps rl!duce statl! 

Government and private sector health costs as WI!ll as investing ifl a healthy future workforce. 

Fel!ding America network ml!mbl!rs utilile local and naliooal public private partnerships to 

ma~imlze the Impact 01 government commodities and provide the most complete and 

nutritiouS food pac~ases ilvailable. We also continue to do mo~ with less, respondIng to an 

unprecedented increase in demand while combatting a 30% decline in surplus agriculturl! 

products from USDA, stagnation in maniJfactured food donatJons and s staggering 1SO% 

Increase. in the amount 01 food ' purchased' by the network. 

Thl! food donation lax dl!duction (Internal Revenue Codl! Section 170 1!3) Is a critical tool lor 

feeding America network members in obtaining donated food. Thl! deduction provides an 

incenli~ e for bUsinessl!s 10 donatl! fil and wholesome food invenlor)' to a SOle] organilation 

serving the poor and needy. The deduction seeks to capture food that would otherwise be 

wasted by providing an incrl!mental tax dl!ductlon over the cost of goods sold if the food Is 
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donated to a SOld. Without Sedion170e3, there is no inclOnti~lO for a busine;~ to donat@the 

food ~erSeS dumping the food inventory in question or selling the food!O another retail outlet. 

Since the Inception of the food donation ta~ deduction in 1976, the provision was available to C 

corporation ta>paYlOrs onlv. However, as manufacturing efficiencies and improved sales 

forecasting bV lood manufacturers de.:rea.e the surplus goods donated 10 Feeding America 

members. It Is vital to secure additional food product that Is aVilliable across the food induWy 

spectrum, including from small buslnl'Sses like restaurants, f .. rmers, and retailers. In 2006, 

Congress enacted as part of the Pension Protection Act a two year provision expanding the food 

donation tax deduction to inch/de all business taxpayers as eligible donors, not just C 

corporations. lhis modification to the food donation tax deduction gave small bUSinesses, 

including pass·tnrough entities (Subchapter S corporations, limited liabilitv companies), the 

abilll'! to take the same enhanced deduction for tile contribution of food inventory a. C 

corporations. 

Feeding America stronglV belleves enactment of the Good Samafitan Hunger ReliefTa .. 

Incentive Act would help encourage donations of excess food inVentory across the food 

industry spectrum. The legislation would make permanent the temporary provision allowing all 

qualified business laxpave~ (induding farmers. retailers, reSlauranl5 and food manufucturers) 

to take a heightened charitable tax deduction lor donations off,t and wholesome food to non· 

profit charitable org~nlzations that serve the needy. Feeding America has seen a signifkant 

increase in the amount of food donations frofTI5m~11 bu~nes!ie5 such as restaurants, retailers. 

and farmers sioce the temporary pro~ision was enacted in 2006. AccOfding to dala collected bv 

Food Donation Connection, in 200S prior to the 2006 expansion donations of food from 

restaurants emolled In FOC's Harvest Program were approximately 15 million pounds. By 2008, 

that amount had grown through the e.panslon of the pro~ision to include 22 million pounds of 

food donated In 2008. However. the temporary nature of this provision makes it very diflkult 

for small businesses to incorporate food donations into a long term business plan and red"ces 

the amount of businesses wllling to donate food. 

The legislation would also allow farmers and other «cash method~ accounting taxpavers to 

consider 2S'l6 of the fair mar~et value 01 the donated food as the cost to produce the food. 

Current law does not accommodate the accounting chOices that most farmers organlled as sale 

proprietors use and prevents farmer~ that are sale proprietors from taking the tax deduction. 

l astly, the legislation would codify an importilnt ru Court ruling, Lucky Stores, Inc. v. 

Cornminionerot Internal Rl'venue, in which the Court upheld thl' right of the ta.pa~r to 

determine a reasonable lair market villue of donated food rather than the IRS. 

We greatly appreciate the opportunity to submit testimony today on behalf 01 F<!"edinS 

Amerka, our over 200 member food banks, and the 37 million Americans fed last year. The 

food donation tax extender and the broader Good Samaritan Hunger Relief Ta. tncentivl' Act 

would provide strong Incentives to capture millions of pounds of nutritious food currentlv going 
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to waste whlle gNing small business owners hir <ind equll<ible actes.s to the food donal for!' 

giving jn en ives C corporal ior'\S have had for decades 
500 

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Contact Information: 

Carrie Calvert 

Feeding America 

One Constitution Ave NE 

Washington DC 

202-546-7001 

ccalvert@feedingamerica.org 
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~ fei. 

';na!ld.11 e.ecu!,y", rn l e/natlonal 

STATEMENT OF 

COMMITTEE ON TAKA-fION 

f iNANCIAL EXECUTIVES INTERNATIONAL 

SEFORE THE 

1"0''''-, " , _ 

""' '' '''' J~''I><> 

" '.' woo "l ~lll~-' '~1f 

SUSCOMMITIEE ON SElECT REVENUE MEASURES 

COMMITTH ON WAYS AND MEANS 

U.S. HOUSE OF REPRESENTATIVES 

HEARING ON 

CERTAIN EXPIRING TAX PROVISIONS 

APRil 26, 1012 

Il {MlflAl[X!( 11ft .} 
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Th~ Commlnee all Taxation of Financial b~utive, International (FEI) thonh Chairman Tiberi and 

Ran~lnR Member Neal for the OIlPortulllty to wbmil this m,temenl on the annuil t. ~ e.lender 

provisions, The Commillee on Ta.atlon urge, Cong'ess to act 35 soon a, possible to ~.tend these 

~pi .. 'd t •• provisions. ina<:tion on the ... ta. provi,lons has broURht In"abllity and uncertaintY into the 

U.S, economv and pul AmeriGIn companies il;O compeUtlye disadvantJge in Ihe global marhtpl;oce. 

Hils the leading advocale for the views of corporate finil!"!clal managemenl. Its 15,000 members hold 

policvm •• lng posltlonl ii' chief finallci.1 officers, treasurers, and controller. at cornpo·nles from every 

m~Df industry. FEI enhances member profe .. ional developmenl through peer networking, career 

management services, cOllferen ce.s. teleconferences. al'd publlcalion! Members partlcipale In the 

adlvi!le, of 86 ch.pt~rs, 14 in th e U,S .. 11 in unada, .nd I in lapon. FEI I, headquartered In 

Morrislown, NJ, with additional olficelO In Wa,Jltnglon, O,c. and Toran 10. The Commiuee on Ti"alion 

'orm~\ate< tao poilCV fa' FEI jn line ",ith the ew~ of the member,hip. 

The Committee on Taxation belleye. Ihat tax policy that support~ KD~omk growth indudes certalntv 

and prl'dTctability In Ihe Internal Reven~e (ode (the "C<>de"). M"~V of the ta. e.tende" have lo~g been 

P~ft of the Code, and t3~paye" have come 10 e~pect they will be extended .nn~ally. Fail~ ,e to e)(lend 

Klme Of aU of Ihese pfOyiSIOnS before they e.plred, Or doinS SO laler In th e leglsl<ltiye. session ",ith 

retroacHve applk.atlon, creates uncertainty, "' ",eli a, lax H~andal reporting and planning c~allenge,. 

The failure to e.teM these lax provl,iO", In a tlmelv mannef reduces Iheir ince~I"" e e ffects and faise ~ 

taxes on businesses, leaylng less Income for Inve.tment and job crution. In addltkln, expired t3~ 

provisions can have a materia l impact on a bu.ine.~' available capital and pub lic perception when 

disclosures are required in linancial slat ement filings 

The Commlnee on "'.llo~ support. ta~ reform that ,Implilies, makes eenain and predictable, and 

improve. th e (ode, ",hlle Increa.ing the globa l competitivene" of U.S. companle •. The C<>mminee on 

TUition also believes Ihal these tax Pfovlsions should be carefully e~amined, .Iong with ali i •• policies. 

in the cont~.t of f~ndamentaltax r~fo . However, the Comm'ne/! on Taoation belieyes thatillese t .. 

provlsiom should not be allowed to remain e~pired durin. tM careful and delibt>rative legislative 

pr<xen on tU reform, Nonetheless, Ihe Commlltee on Taxatian too:lieves thJt permanenl tax Inc,eases 

should nol be u,ed to pay for tile I~mpofary e.tension of the ... provisions and thst permanent ta. 

changes ~hould only be CD~5id red In the cOnleM of fundament.1 tax reform. 

Many of Ille proviSions in Ihe annual ta~ exte~der p.chge have become fixtures ollhe Code. Despite 

Iheir rec~rrlnB @xpjrallon date. and ~ncel1arn renewal; taxpayers have come to reJ~ on these ' a. 

provl,lom when makina bu.lne .. decisions. Th~ research and deveiopment (R&D) ta. credit i, SIKh an 

e~ mple, While Ihe R&D coedit has been a proven incentive fOI R&O investment and fob creation in Ihe 

U.S .. companie, must rel ~ on annual Congressional action 10 malee 'he Investment. GlOMI competition 

for R&D Is fierce, and Ihe U.S. R&D la. credil only ranks 11'" overall among th e 34 countries In the 

Of£ani~iI'ion lor Economic Cooperallon and Development (O(CO). Thai is .... hy the Committee on 

laxation supports not 0~1v extension of the R&D tao credi" but also efforts to modernlle. "renglhen. 

and make it permanent, In Ihe meantime. f31lure to e~tend the current credit incrust'l the .isk Ihat 
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R&D - along with th~ Job., investment, and Intangible property that may re.ult - Will be tonducted 

outiide the U,S, at the e~~nse 01 our economy. 

lhe COmmlll .... on l.~.tion bel, ........ th.t acUve fln.ncin, exemption is another example of very ",und 

U X poiie'! within the lax e~lender packa,e and should be ulended. The aCli"e ronancin, exemPlion is 

.nO!h~r lonlstanding I •• e~tender prOVIslon that pr"""nu Ihe double I .. ation 01 income t,om .clive 

foreltfl business ope rations In Iht u.s. financial se<:tor. ,",Iuding 'apti~ finance ,omp.nles 01 U.s. 

m.nufacture~. It al:so enSures thM Americ;ln flnandal .e ... ltes prov'der! and U,S. e~poru financed by 

caPti"e finance compan,e, ~re not put at • compet't,ve dioad1lanmge compared to the" worldwide 

compeWors. 

A more retent ta. extender that Ihe Commiltee on Tantlon believe, .1I0uld be extended i. the related 

controlled lorelsn COfJl(l '.lion (CfC) look.through rules. Thl' P,ov,!,on .1", rem01l es Ihe dOUble 

taxation lorod bv U.s. comp.nies that operale and compele abrOild, It .llows related Cf Cs 01. [ommon 

U.S. psrent company to make cro •• ·borde. di~;d(>nd, inte.est, ,ent, Or royallV pavm~nts without 

"ealins subpan F Incom" If th" amount, a,e paid from active fo.t'IS" business p.ofit! or "ffecllvely 

cOMected income. w~nout thESe ,ules, such ,einve'tme~u would be subject to immediate tn that 

COmpelllOfS ba:>ed In ny other countries do nOllncu'. 

The CommIttee on Ta~ation allo u.ges ConGress to extend 100 petCe'l1 "benus depreciation" experoslng. 

TemPO""v paftlal e~pen!lnl has bl'en enacted, enhanced, and reenacted ,eve r.1 times since 2002 10 

boo>! nonomic ,eCovel)'. The 100 pe.cent e, pen, ins was enacted in Decembe, 2010 and e,p;r~ . t 

the end ot 2011 , T~e Committt'e on T.xil1ion belil!Ves Ihat ~~n,in8 .san effective in~estmenl 'timulus 

and should be Incre~sed back te 100 percent. 

lhe benefits 01 ,enewins the .nnU ll.~ enender pukaS"- .nd 100 percent bonus o..p,edalion to Job • 

• nd global competitNeness cannot be o"efsuted. The United Slites nOI only has Ihe highest corpolale 

lax ,ate in the DECO, but 31", i. Ihe onlv DECO cauntl)' that uses a woddwide system oll •• atlon. The.e 

ta~ (>,Iende. provls;ons help U.S. compani es compete globa llv. U.S. camp.nl..s and Ame,ican worker, 

un III-allord the Uncertalntv cau,ed by Inaction on these Important ta~ pro"i,len,. 

TI>(> Comm!\tei! on f". atiO(1 appreciates Ihe opportunjty 10 submit til .. se Com menu and looks forwold 

to work ins with Cangressln '''ppot! 01 exteodinl th ... ,e la'; p,ovi.ion. as quicklV as po"ibte. 
504 

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Submitted b~: 

K~(e~ l3p~evrc 

Director. Go"er~menl Affairs 

t.n~ndal E.ecut;ve,lnternal;onal 

182S KSlrt'et. NW. Suite 510 

W,shingl0n. DC 20006 

T: 202.626.7809 

F: 973.84.3.1222 

kI3PSe-V1c@flnilnd .. ~~ecul .. es.g,& 

" 
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FLORIDA COMM(JNII'( 

LOAN FUND 

Nom,,: 

OrgarlirollOrl: 

IgnacIo e,leb"n. h .. cullve DIrect", 

flOIldo Commu",ty loon f~nd. Inc 

Addr .... : 

Ptlone Number: 

Conloet f.moiI: 

nile at t<eoong: 

501 H. Mogn"li" Av.",ue ~~ij " tOO. Orlando. FIDfldo 32aOl ·13~4 

407246.0a.46 

IgnoCJoliilC~ Ofg 

House Way. and Mean. - Sel .. c! Revenue Measures Subcommlllee 

Hearil'l9 on Certain El(plrlng To. P,ovloionl 

The FIc::I<Ida Comn'lUl'lily loon '\KId I'<CLF) was among tile rut community devolopment linonciol 

"" lilulion< 10 be cettitiedln FIQrldo bY the U.S. Deportment at TrOOlury. and Ihelirll Florida bmed CDE 

to ><ICu/& NMTC. fClf li the aNY IIOIOwk!e. CDfI in FlorIoa and c,-",enlly IlOIC1I Ovet $120 millon in m~!I 

under "'onogement FClf'. three conVf1t!'Clallending prOO'om< IocU'l on ec()l'!<)l'lllC DOd cornmunl1y 

developt'nent, pr",ervolk!n o f olfOl'oooia muIli,tomilVf&lllo1 nou.:ng, ond New MOI'''I. Tox C'8dil., 

tn oadIt;oo, fClf ~ 0 membef o! tM NOlional New Mene!> Credit COD~lio<1 DOd 0 ~ time recipi&nt 

olledefol New MorI:e" 10" Cled~._ 10 dole we hove been cornpatlHvely oWOI'ded $111 mllion It> 

NMIC ono financed 9 NMTC project.: 0 Ime.lone mining ,edomohon project, a wood lo,,.eloctlon 

pk>nt, 3 chart ... ,choot •• 0 tJio.medicai le,earch porIo:.. 0 protolyp8 ooior ceM energ~ manufac turing 

locii;ly. On Od\llt ClOy care and me-dicot tocllltv. ond a neo~n and l1uman ;efV!c .... comPIJ' and 

m"dir::ot !OC:lt;ly, 

FCL,c', New MorI:et,!o." C.eo't project. will MIp Cleote over 25OO)obI to 'l.!ppo.1 flOrido 'J &Cof1Olflic 

,ecovelY_ 

"",Wed In th" loIowir>g pagel 01" .. : 

FeLF 5tOlewkle Impacl Mop, dePicting tl'le scope 01 OUI Q8f\erDl H!ncti~ on<! In" increo.ed 

Impacl of tne NMTC pmjec!, w" hove finonced' 

Summary desCliplion' 01 fCLn 9New Ma~ell lo~ Cfedit po-ojecll: 

Decemb .... 201 I Support letl", Imm lhe l'Iotionot NMTC CocRl''''' ,eque,ting ""ten<ion a! lhe 

progIOt'l, and a III 0I~' in flofldo who signed on 10 tM Ie!ler; 

Contoct inforrnollon Io<,cior>do CommlH1ily Loon kJod NMIC projects, 

New MorI: .. U 10>( C,ediU 110ve become a 1ine01 Dulin .... upon wtOc:n QUI DOIIOW6f1 ond IrweltOlS relY. 

Con<l'tent W;lh I1Ollonole. oetfen<::e our US" of NMTC 1105lev .... oged $I2in prlltot .. COpitot lor .. v.".,. 

one dollar in credit. The C(WI 11.00 (39'l1O ~eod over 1 l'SoolISlelOljvety .rtaIow. '" ,ome ltotel. 01 ~ 

the co ... In Florida, the I .. derol Cladil ho. been " ... d 10 .Ilmu!ot .. "~ .. n more bvWl .. " dev"lopme"t by 

comQlnlng l! wllh Ilote NMIC progrorrl'; wnlc:h POI'ollei the fedelole<edll in order to provide "" even 

mor" ,ob<"t ~tc""tlve 101 economic: developmenl ono bu,inM, growl". 

"" thi, moment in time, When <:opilQj tr ,0 hQrd to come bY,I! ~ not IU/prnIng Ihol theff! ~ treme<>dovr 

demond 101 NMIC. Since Ih" li'sl ollocotlon in 2003, demood 101 NMTC nos ,,~ce .. oed $225 ~n 

eomPOl"d to tM $330l"'" fn c,edil oWlilobllily. In Ihe co.e of the florldo Community Loan fund we 

ttove (> c unent e.Hm.lled pIpeline oj a ve' $300 mIllion In ","oJect 'eque.1s repre.entlng more thon len 

lime. the omoun! 01 OUI CUffen! $311 mUilon onocoflon - aU 01 wttlch ole capable 01 clo.tng wlthtn the 

~I!2 month. , 

Jost 01 imparton! 01 the demond;s the Impac! "lOt NMTC has hod on eeonomically distressed 

Communitiel, B;lI!om 01 dollOrS hove flowed 10 convnonitles trodiliof'K)[(y leU out 01 trleinveSlm6<11 

mO"SI,eom ond nom hit Dy Ine '"",e"ion_ ln th e co.e oIIh" flo.ldo Community Loon fund. all 9 NMTC 

plojeer. .tgnil!conHy benefll"d high poverty O'<!O' with unemploy"",nl rate. of 2.2 flme. the noHonol 

ove,oge, and ovefog" hou",ho'" Income ot 55';1; of the oleo median. 

""NOmc:. ~ulN MMOl<ou.o,AVI. 511In''''' OIR~NOOfl.O~iO''')I\la''1)6. 

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Floflda Cammllnlty Loan Fllnd's Sialewide Impocl M ap as of Jllne 30. 2011, showing lI\e Impact 01 New 

Marke" Ta~ Credillendlng, 

STATEWIDE IMPACT IU~f 'n. l .. ' 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.440

The following proJec" o,e example. 01 whol FIo,ldo Communltv loon Fund (fClf) hOI occompll.hNt 

u.lng NMIC •. To dole. f ClF·. NMTC p,o)!>c" han le"e,og .. d S211 million In oddll!onol private capitol 

and ",eol .. d on ... t!moted 2500 Job,. fCLf·, moo! ,ecenl NMIC Ollo'ollon 01 S30 million (Included In 

111 .. $111 m!lllon) w!ll nnenc .. Oddlilonol p,oj .. c" u.lng $1 In ' .. d .... ollnv .. "m"nl to I"v",og .. on 

.. ,flmot .. d oddlt!onol $12 In p,lvot .. ln" ... tmenl copltol or mor .. pit, p,ojec!. 

WtxtoooSO"'<l olE'~O/OlO<;'" rm ......... O<ln cu6 B"'''UOH 

U"""I>';(r'< "" Mt ... ,L.t"S"''''HR",.",~Pu •. M''''' fCHNMlC .... LLOUf<O" I , .. ~t"'" 

we IOfd Science. o· 1 ecfmology is developirlg 1M UM Life Science POll 

10 ptoYide opportun;jle~ 10 100ter tile developmellt o'_'e Ic",.-.ces. 

Ie<::hnology. alld biotechnology InnovOllom. In;.; 300.000 ,I complex. 

mfJocenl to lhe U";ve',,ly of Mami. w<II Include a 'e,ea'ch lob and a 

bu"n .... incubalar tar emerging b",ine<Je.alroiated wfil1 uni ...... ily 

, .. .earch. FC[F", NMTC allocalion wal u,ed 10 help oll'ad aadilio~ 

NMIC and convenlionollunding 10< pre-developrnenl and 

conltrvclion 01 Ihe Iilil OOIding in the- park. The P'oject hoI Cf~ted 

790 jot) • .:!"""g COMllrvction and will creote 53? permanent ;obl I · 

lOColed in a Cenlul trOCI wilh 39'lO MSA O"d 43% povetly ,Ole. Coml,ucTjon of tile l"leorch par~ 

began in Decemoo' 2009 and WOI 'ec"nllycompleled_ 

'.we.lor: U.S. 80ncoro Communily Developmenl CorpOfal>on 

Addlt!onol NMTC.: Ufbon Relearch POl~ 

lende,: M&T Bon~, Town5oend CaolTal. and olhels 

5"" .. 5tH" M .. HU'ACT1J.' ..... F .. "'UYV T'H ....... O'KI .. , ~ .. ", ", .. 

T ... c."."rr FeH NMU .0.,'-0'""-""" on S"''''''H SolorSin~. LlC i$" new ,tort·uo b",;""" c.eoled '0 produce a new. 

more effICient. heoUink technalogy and "eote co rolot or.ov on a s· 

acre ~tOl , utilizing .... no.oliol1l de~ek>pOO ... conj..mClion wilh FIotIda 

Stote UnJve!,ity. "'~ techr.ologl" oUom sola, ene'gY 10 be e!licientl~ 

converted to eleClliclly. and powet produced Wit be- used In Ihe 

manuloclUring todily. olher kx:oI 00""""81, and '>Old to Ihe 

municipally·, power grid. This projeclls irI a ~hly di,I"."ed <;er"llU' 

IIaCT ..... 111 49'1; PQ'Iel!y 'ole and wi~ proYide 137 temporory and 55 

perm<lnentjoO'_ Ihe ·,010, ,omoge<" 101 pictured aoovel wi! oe 

produced in th" U .. ted Stote •• m op~ 10 Chino. whe<e abaul 8(f,IC. 01 ,alar pone" 01" 

monufocTu,ed. These system, O'e ",timoled 10 be ~ las> cosTlY Ihon conventional ,010, w,tOlrm. The 

SoIoiSmk MOn,,'actoJling focilily .einto/cOls fCLf ·scommitmenl 10 green and en ..... onmentOIly 

wlloinoble projecl$. Conslfucliofl at lhe monulocluring 10dMty begon In ,DrinIl201 I. The project 

inclUde, NMTC c,edit, I.om tile Stale 01 Florida and a fedamt Enefgy Gran!. 

Inv."lo" U.S_ &oncOlo Community De~elap'nent Corporation 

l .. nd .. " Hunle, & Harp Holding' 

Slat" NMTCs: STonehenge Copilal 

CA.' P",,,.II"fOh.""" l",..., .. O'lcr-.lO ~""-L"''' 

M .. Tt>,(ou..,."., FlO.'0A fCl ~NMTf A"oe.nnH .. 6.", LKn. 

The Lake Poinl projecl;'; on Innovalive putlk-priYole envir"Onmentoi 

unde,la";n9 on 1.250 acre. In Soulh Flarido. Ille SO<Jlh florida WoT ... 

MO!lO\IOlment [MI,icl has helped design 0 pion thO! . .... hen complele, 

wl l be a druignoled weTland and wale< ,100age/ t.eclment Olea to 

pvn1p putilled .... olet boc~ inlo Lo~e OI\eechotlee and tr.e 

O~echobee walerwoy and 10 proVIde clean woTer Tor YOf!o<.tI notIJHJi. 

ot!en endonge<ed. ""b~o I, inclUding The Eve'9"'de. on.:! 01f1.er •. In Ihe 

.M.I 161m, tl"l" OPe!otfon w~ pto'llde 0 low-cmT wurce 01 etSentiol 

limest""" 'OW moteno," tor ",col inlto\lIuclure and con!<>fVO!ion 

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projecls. rucn m Ihe Mertlen Hoove, Dike. " 1eae.al top priority project lor the U.s. Army CorJ.H 01 

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emerging, Iror1SHkmat Ot\<l Ct'iloniC r\ee<15 01 roote trion 3.000 pefsons WhO ora hOrnet,m or 01 ~rJ: 01 

becorrlr1g homele$$. Tne Compvs wiN IJ.e buil in on 01&0 thot hal bellt'l to'gate{! tly the City 01 Mi<lmi 

lor ra.;lotizolion. The project;. ",xpaclOO to cfeole tOO permonenl oM 300 lemparO!)' ;om. in odailion 

to r"toiniog 50 e'''ling job. in In.. cemullrocl whete unempjoy(Jlenl Is Over 3 lime. the nolional 

O~erogll, The tr(]t'lloction iI cu"enl~ It'I dosing. 

Invade<: Norleol!!. Inc. 

let'lder. Norlhetn "ult 8on~ 

OuIT ..... WOCDTcR."""" .. P,..... To' .... P." .. u ~~Ql .. ," .. ' .. 

0.." ....... MS FCtfN~ITCA',,:IC""O'" " . "",", 

TOfleloction pIorIl. conven lor..,l. mwmll and urlXln WOOd relicluok and 

wa.le itt!o compaCled, torrefied wooer pelletl to be co-liled with cool in 

e~!rIc power pIonts. 'orret>e<:l W<>Od is 'ecognOled il\teUlollono ~ 0\ (] 

IDUt"ce 01 clean. green energywHh Ior1g-lerm corbon neutfatlty. In.. 

r",~hed torrefied wood pellet product wil be \Old to utiOly componim lor 

co-firing In e,""IOn9 coo PO""et pIonls 10 prodv<::e eleclrk:ily !rom a 

Clean renewable relOVrce bolh In Ine U.S. and ir1<urope. Ihe Qullfl10n 

Tortefoclion Plcmt begQn 0Pe,(]11r>g;" mid 2011 II i) lOCated itt (] !LJlOI 

ond Nghly d~"",,9d cemu, troct, wiln 0 :2(% poverly fale and 

unemploymenl fale 01 1.36. tn.. U.S. over<>g4l. 

Inved",: U,S, EkInco<p COrnrr>.Jnity De~e opme<11 Corporotlon 

lend .. : MislJslJppi Bu.<oess rtnonce Co<porollon 

Ad<li!lonal NM1C" Hope Enlerprl>e Co<porotk;>n 

NlW M ......... ["tR Fu. .. II TO'JOl. PO"J[('1" $7 S "Ill""" 

~.O< .. o~o. VA fnrNMT( ... uoc .. .." ..... "uO .. 

On a I..-ge tract al formerly unused kllld, tM development In Richmond 

begon wlll, Iwe> bviIdlng. One 20.000 sl community building Is 

occupied by a P'OQIom e>lAtJ.""=irJ.l"" Core to< the Ek:lerly IP,,"CEI. 

ooar01eO Dy Ri~er\.ide I>o<pilo l. PACE, Opened In Jonuary 2009. enoble$ 

~o! senoo to mainlain os much inoependence 0, pm"b!e and to sloy 

in their own hoMe, by proYldlng o~ Ie~a~ fll medicollOCiol. petSOOOf 

ce'e. and ,e.pile ..er~k:es 100:I!In/"" and lhe~ eareg'''B«. P,,"CEi, 

IUndaO tt'ilough Meclicolcl ono Medic",e Of prlVOlEl pay to< indlll\d",,~ . 

!h" ..econd 10.000" bviId>ng" milced·u'e. lncluding 'pedal needl 

oponmentl, and op"ned 10 Spring 20\0. Ihe New MoncP",ler PH>ject is in a ~ery low-income. high 

po_arty and high unemployment census troc!. Tl\i&projecl olio u,ed l'Ii>1ork to>< creef,ls and Ol,",e, 

"ublle IOIJIces at funding, 

Inve<lOf, t...nd". ,.d<li"r:>nal N~TC.; We'>s Forgo Son~ 

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511 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.443

NEW ~IARKIITS TAX CREDIT OOAI1l10N 

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",,,,/lIi,bod it1 :000 In II\< r, .... "',il) N.""""" T" krn.r ... " .. "' ",I< M,fgnod '" _ "" " .. ,1"";,,,, in ",,,,,,,,,,,,,.11) Ji ,1J'tl«<l urbln .. ~ nr.I._mom"i ... 

111<,. i ... !»Ia",'" •. , ........ thaI 'no NMTC i. "'or~i"~ , n .. c ,"<ll. hal ~ • ..,..",d." ""pte<~"lod (.,-., or""""", _u" in,',,,,,.<,,, in ", .. 'nu",,"" ,,'" ,",;~_~,.b "n," 1<1\ ",.,jd< ,!Ie .. """",", "",in"","", "n~ ,"' .. ,. SS bill"", in 

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TO""'"" ~Ol 0. NMfl' ... , r...,...·od m<r S!O bill"'" in ""JI> ",d "lui'; i.,e;""o"" to bu>inn><. ,,,,,.,N in '<>Im"wilk, 

,,,tI'_to,,,"1 ".". 01'"",'-"11) .,oJ "'''''''plo,''''<nl. Tho"" 0....; .... "'" j"",U<l< .","""",,,,.1\<1 ,,"'"", .. , r",lli,; ... 

" .. 111\<.", .. n ........ 0/1 ....... 1>",,"- """ • ""'OI}' "r • .,.,1 bII<I .... I!SC>, n .. ", .. iI: i, ... ..,.,..' j<>b and b\«i ... ,

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Unl.,~ C""!lf"" ,-"'''' \~ «".,.j NM'fC II "ill ',;>i""" ["'<.,ube, J I, 1011. 

I'-'~ 'H' has ,h'''l<lft.<lrOl«l _ " i> ... IT,,,,'''~ in pronlotinl! prin t< •• ,""" Im'".n,."" '" <omru"","" haN rul b) Ibo 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.445

florlda Cammunlly Loan Fund {FClF) N~w Markltll Ta. CredH Pfaj~c" Canlact Inf .... mafian 

PaUl Ah<, Camillu, HOUle 

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514 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.446

P,O. Box IS (105 S. 5" Stre~tl Flol'dada. Te.~ 7923S p, (806) 9S3-3318 F' (806) 983-6017 

Housl:' Ways and Means Committee 

lie: Hearing on Certain bpi ring Tax PrOViSIO(\~, PK 

It is with the utmost urgency that I wish to e~press the need for the Committee to consider the 

Importance of Production Tax Credit and its impact on American jobs. The longer this vital piece 

of legislation i~ left undecided, the longer and greater the Impact will be for the growth 01 the 

indu'try a, a whole. 

Rural tOmmunltie~, ~uch as the onf:' I rep(e~ent In the Stilte of Te.as. ;Ire seeing the. 

development of wind fa(m~ put on hold due to the uncertain future of thi5 credit. This means 

the. greatlv anticipated benefit of jobs and investmept in local economies is also put 0(\ hold and 

adding tD the greater sen~e of uncertainty of our future. 

Wind farm developmen! provid~~ ewnomic stabil ity in time~ when agriculture prOdUtlion i~ 

poor that keep our schools funded and hospitals open. Th15 industry has the ~ingle greaten 

potential to reenergile job growth In our region thal will creale a pOSitive ripple alfect across 

every dspl:'c1.of business. Pledse ta e action to preserve Ihe PTe. 

Sincerely, 

JU5 ljn Jawors~i 

Executive DirectO!1 

www.lloydadaed .. com Pag~lofl 
515 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.447

FOUNDATION 

W IN DPOW ER 

Submitted Testimony of the Foundation Wind power, Lt( 

SubcommIttee on Select Revenue MeasufCs 

Hearing on Certain Expiring Tax !'rtIvisiQIlS 

April 26, 20 12 

Organization: Foundation Wind power, LtC 

Name: John PimenteL PreSident, FoundMfon WHldpower, LtC 

Address: 431 Burgess Drive, Second floor, Menlo Park. CA 94025 

Phone: (650) 269·8933 

Email: john pimem el@fo llJld:!lloDwjDd power-w lD 

I ~m John Pimentel, Pr.-siden! orFoundation Windpowc r, LLC (FWP). I submillhis 

testimnny 011 behalf of FWP, 

Background on Foundathm WInd power 

Founda tion Windpower, LLC-wah offices in Menlo Park and San Fr.lnclsco. 

Ca]irorni.l-builds wind turbine generators on-site at bUSiness locatiuns facing large 

energy demand. high energy costs and increasingly strict emissions ilmlt<ltions. We 

finance, build, and Inaiotain our turbines ~t no capital cost to our customer.>, and 

help Ollr customers control costs by selling the electricity generated by tile turbInes 

dlmctly to them at prices lypically below utility rates, Our customers Include mines, 

quarries, distribution centers, a~ricultural processing facilities, water treatment 

facilities, and other large energy users looking to control and rcdu~e energy co~ts 

th rough renewable generation. 

Current Law Allows Market Participants the Freedom to Choose Iletween ITC 

a nd PTC a nd Promotes Te chrll>logy-Neutral Competition 

Internal Revenue Code Section 4S provides fo r a Production Tax Credit (PTe] for all 

wI nd projects placed in servin' through 12/31/Z012. Internal Re venue Code 

Section 48 alsu allows cumpanies, in lieu ufthe PTC, to claim a 30% Investment Tax 

Credit (lTC) for all wind faCilities, placed into service by 12/31/2012. Thus, under 

current Iltw, any company that places a wind facili ty into service befor~ 12/3 1/20 12 

has the freedom to choose to claim tilhJ:r (aJ -a PTC of 2.2(/kWh for electrltity 

prod uced from the wind for 10 years, or (b) a one-time ITC wonh 300/0 of the COSt of 

the facility. 
516 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.448

FOUNOATION 

W I N O PQ W ER 

If neither !he PTe nor the ITe for wi"d a re ex\\'luJed, neither p( he~e two options 

wil! remain. If. huweyer. only Ih~ PTe is extended. the unintended .... sult will be to 

favor 3 subset of renewable Ie<:hnoiogics. This imbalance Siems from the fact th~ t 

Sedion 48(c)(4) urtllt' Tax Cod .. also provides that the 30% ITe is available for solar 

and fuel cell energy projects and a small subset of wind projects sized under IOOkW. 

But. unlike the PTe and ITC for larger wind projects, which are expiring this year. 

the ince ntive for these other systems applies 10 projl'<:LS tlla! are placl'd In service 

through 12/31/16 By extending the ITe f"r,,1l wind projecL~ along ..... !tll the PTe, 

Congress will IIdp maintain a level plaYing field in the Tax Code between all Wind. 

solar and fuel cell technologies, the reby Inainlaining the ",~ ket'$ ability to pi~k 

winners in the renewable energy space. 

ITC·Backed On·Site Distributed Wind f'roje~ts Help US Businesses Cre ate a nd 

Retain U.S. jobs 

On Site DislributNi Wind projects Uke Fuundatiun Windpuwer·s are particularly 

helpful in creating and retaining jobs here in the United S&>tes ~ jobs that cannot he 

exported. 

First. uf WUTSe, there are U.s, jobs Cn'<lted in the development and cunstru.:t;on of 

our Wind prnjects. Each project r~ulres the efforts ofbetween 30 and 50 

engineerinc and constructlpn personnel over seVeral ooonjhs. With multiple 

projl'1:ts in development. our efforts ha~ helped locally-based engineering and 

construction fi rms we work with train, I\Ire and retllin employees In the relevant 

trades for years. 

Our pl"Ojects support job creation aod retention io another important wily. OIl·Site 

Distributed Wind is different frtJnt must wind projects that rely un the PTe in that 

the Wind energy created is not for wholesale dr~trihutfon to thegrid which is then 

subsequently marked up a nd resold by utilities. Rather. we locate our rurbines ·onsite." and we sell ~1I of the energy gener;lted by Ollr turbines dire<;tly to leading U.5.-

D3sed manufacturing and indllSlrial employers like Anheuser· Busch. Wal·Mart and 

SafeW",!.y Stores. The ITC enables uS to sell tltis energy to our manufacturing and 

[ndustrial customers at prices that are both predictab! ... and typically lower than 

utilily rales. Moreover, by deploying ~ero·entissions wi nd technology. we have also 

been able to help our customers comply with state· based greenhouse gas emission 

standards. By controIJin.: CII5Lli ilnd sjmult3nl'tlUsJy eas1m: compliance wjth 

f!lcreasjnglV strict emjssio!l stgmlu d s Fo u!ldatlo!l Wj!ldpllwer bas been belpjng key 

cQnstituents oCthe US industrial ami DljJO ufuctudnli base maintain a!ld grow their 

opergtjp!ls and all of tbe johs tbat come wjth lbat ecQtJQntic actjvity. 

2 
517 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.449

FOUNDATION 

W I NDPOWER 

The ITe Is Necessary to Leverage Priva te Capital for On-Site Distributed Wind 

Project Development 

More On·Site Distributed Wind projects using the ITe are under construction now; 

however, without the lTC. none ofthesc projects would be feasible. Extending the 

ITe for On-Site Distributed Wind projt'cts enable~ the contiuut'd development uf 

pmjoos located at mal\ur~cturlng and Industrial facUitles throughout the U.S. The 

ITC is well-suited for wind energy projects co-located with industrial facilities that 

are reliable energy custumers, and it therefore creates a dim! Incentlye to aUrn't 

pdvatc capital to enter this niche orlhe wind market As a result, extending Ihe ITe 

option brings new capital investm ... nt to projects which help U.s. ma!mfacturers use 

cheaper, cJCJnH, more prcdi~tahle wind energy to ruel Amerrcan manufacturing 

fobs. 

ITC Is a Vita l (And Unclent) Corollary to the PTC 

Most discu$5ion about wind energy tax credits focuses on thl' PTC; however, 

extending the corollary ITe option for project developers is equJlIy important and 

should not result in Increased taxpayer expenditure sinCE' develope rs must elect. 

!!i.thl:r Ihe PTe Ill: the lTC, but not both. This efficiency is magnified by Ihe fael that 

the PTe structure fans to ~ttr.lct private financing for On·Site Distributed Wind 

projeds, whe ~as the ITC has proven to be al\ effective mechanism for levl.'ragiflg 

privMe capital into these projects. Simply rut, retaining the ITC option is a n 

affordable way to give U.s. manufartu",rs acress 10 the ht!neflts of wind energy. 

Irthe ITC option Is extended. more U.S. employers can follow exanlples sel by 

leaders such as Anheuser-Busch, Cemex. Nestle Waters, Robertson's Ready 

Mix/Mitsublshl C.'menl, Safeway, Teichert Aggregates and Wal·Mart (all ust'1"$ of 

ITe supported On-Site Olstribl11ed Wind projects) til make rational choices between 

wind energy and other on-site renew~ble options. ITCsupported On·Site 

Distributed Wind also reduces the reUance on utility-supplied power. By placing 

generation closer to its polntof consumptIon, On·Site Distributed Wind reduCE's the 

need for flew investment in centrali~ed generation and transmission facilities 

subject to f!' nergy loss over long transmission lines. 

Congress Should Act to Preserve the ITC ror On-Site DistrIbuted Wind 

Congress will need to identify the most appropriate vehkle to ensure this Important 

tax credit option ",mains available to US manufacturers and industrial faalitles. 

Any ~u,b legislatIon wrll ellher (a) a~5umlng tbe PTe is eKtencied, ~mend Section 

4B[aj[Sj(CJ to extend the deadline for the ITC ejection for wind along with the 

requirement that any taxpayer seeking to use ITC simultanl.'Ously waive the Jight to 

3 
518 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.450

FOUNDATION 

WtNDPQW E R 

claim any benefits under the PTC-or (b) if PTe is not extended, amend $e(;tion 

48fc}(4) orthe Tax Code by I!ftjng the 100kW capon the Ite for wind, 

Thallk you for the opportunity to submit these comments. 

Sincerely. 

John Pimentel 

President 

FouJldation Windpower, LLC 

, 
519 

Statement of Fred Teal, Jr. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.451

W.y. lIJId M<'lII\ ~ Connniu",, ' 

FredT.T .... !.Jr. 

9 Nonlt Su.....,t 

Urook ..... iUe. MD 108]) 

301 77H151 (II) 

101928·2778 tel 

f\.alir@y:p.oo·,·,~" 

It,,: l!caring "" C~r1~io El<pirin~ TU>t Pr.wi ,,,,o ~ 

Apri126.2011 

I, Prod 111om"S T~31. Jr. In IJmok~,ill., MlJ. n:'P<"'lfully ",£C(.'OO&n:I$ I", eMl'1ld In,. ""oJ ....,rgy 

produclion lax "",dil (l'TC) as ~uidlra. pos.<ible, 

WlIMa1 'S<lono dell"'" of«nainlY about fUllIn: ('"'Jlicy. numm,US forms "ill simply ... fust III comm;1 

Ihem!'Cl,-ti I'" d."o ~n,W pmj'~I~ 

~ PT(' dtiws ~illi<mSofdoll~ in r.i".I~ i,,""";lm""l in l\."u,'\;I'''''''' A!\lL"l'k"" wind 1"lI"'" """It l"""-

It ~V" ~ rom Itand 1h.e impae! lluor oc~1 "'ind famu ron rosl .. in commU";I;" - bringi,,!! in con'1rOCI;on 

job.al 1i,..1. and ",.inr"nMc,,)"''''' in Ihe fU11l'" gcnemling ""enue 10. Ihe commUllil), ,,, •• Ih< lifetime uf 

1h"I1'\lj<:cI. Inc"'"-3ing Ih" amount MIl'-'''''''' rhal '-'UrL'{)UI1Uy I!."tS r",," clean. homegmwn. affordJbl" 

!'e!oO<Irc,~ !WI .~"dl.nllhlng fQl' u. I", dQ - llIkllhl. 18)< .redit proVide'S on i"""nlh't f(H" 111<- "Ind ,ndui-lf) 

II> conlin",'!" iii, just tbM. 

I urge lhe comoni""" \0 take up an ~~Ien$ioo ofthe .. illd .""rllY production lax credit righl away, Th~ 

CQllll11ln"" must under.\land Ihar Ihis is an i~$ue ab<lul the fulur. of Atll~r[oa. We 31\' Slill provjding all 

kind. "rlax "",,"k1io~ ror Io..il fuel cornpani,"I (hal orr",. hu&~ proll" in the present bllr Wi1houl lhe 

.... '·dOI'lIlL'11. t>f" 5<Ulaitlal>lo ""'''llY infr:uIf""IU"", we will n", ha"e n<)IlOtnurrtlW. I'ol'il ruels:lft 

ruining . hc.climatc. ~minf; inc"':tiinilly eX~Mi\ ealldshrinking in supply. 

Think of ,-,,,r child", ... Ih~ir h.ahh JrnJ ectJnumic P""I"'rity. Pleale "01<: y,." 10 .~lc'fld lh~ prod"'1i"" t:c< 

crooil 

S"""""ly. 

F",'" 1'. l' cal. Jr, 
520 

Statement of Friends of Lana’i 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.452

Fri6l1ds of Lana1 

P,O. eo. 631739 

Lana'i City, HI 96763 

808-559-6124 

faaMso!!a!ll!L gmail.CC!!!! 

HEARING ON CERTAIN EXPIRING TAX PROVISIONS 

Friends of Lana] Strongly lJrges om Congress to leI tha PfOOlJClion Tax Credits e~pire. 

Wind power piants on Lana'i, Hawaii are an economic, clJltlJral al'ld ecological disaster, 

lJnderwritten by the PTC. Wind is all intermittent SOlJrce of power !/lal reqlJires huge 

pieces of land on wl'lich to place monstrOlJS mochines Il'lat destroy [I'lat lartdscape, and 

artdanger already fBle and preciolJS blros_ 

TI'le PTC makes no sense. II lJndermines OlJr e!Torts to l ind atficienl. cost-e!!ectwe 

renewable er"lergy optIons. It is a give-a-way to already rich land developers and 

eorporatlOr"lS. It is an lJnw,se expenditlJre of OIJr t8JI dollars. Wind power plar1ts create a 

very limited source of local employment and do liltje 10 enrJcl1 OlJrlocal tax base. 

Please let Il'le PTC eKpira. 

Tto8r"lk you, 

Robin Kaya lor friends of Lana'; 

! \' 

....... 1 

M~ 

,,,,,r .... 

_ r ...... " _ ""' .. ~ .. , '$~'''''' •'.,., K • ...Io ... II • 

. -. F_afL_1 P.O, &"531739 

ffl!!~J!!IAI\I->lmail ,!!!!!!t 

Lana l Cil)'" HI 96163 
521 

Statement of Friends of Sand Canyon 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.453

"Hearini on ~rtain bpirin, Tax PravisionsTo Whom II MaV Concern: 

Asre.id"nt. 01 Tehachapi, CA, Ihe .ell-prodaime<! wind enerl'l hub ollh .. world .ince Ihe lirst Wind 

tu rbine! were erected, we spea k Irom experience. The wind eneri~ companies are not good neighoorsl 

III. an anjf(ciallnduslry maintained bV our tax dou.". al ben" huge pyramid scheme. The wind 

lurbine ,ener.tors, WTGs, are nOlg reen. Slap li,tenlng to Ihe indust"" propaganda st.tinll otherwise. 

Hundreds 01 thouunds 01 aCrf. aU! permanently destroyed, thousand, of eod.ngered Joshua t.eel.re 

bulldoled, million. 01 birds are mas'laQed, 0 1 ri'k I • ......,n Ihe Caillornia Condor .nd fa. whal1 WTG's ARE 

noi.y. Iherdo leak Ifansmi .. ion fluid •• Ihe ~ do -fly" .pa n and we have ... en WTG .el fires. An 

Inefflclenl Uf Ce of en""BV .hould not ~ wonhy 01 ouf ta< doll.fS or even ta. credits. <NO the 

Production Tax Credit and th In ...... tm .. nt Ta~ C.~dltl 

Sincerely, 

Dr. Beverly J. BillingSley 

President: Friends of Sand Canvon 

21832 Ferncll~o 

Tehachapi, CA 93561 

661·20}-6737 

ladVt! ... m@sbcglobal.fll't 
522 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.454

Aprit 24, 2012 

Ways and Means Committee Office 

1102 Longworth House Offire BuildinQ 

Washington O.C. 20515 

Alln: Jim Ge"3C11 

RE: PTC E~tension 

OearJirT>, 

I am wrIting on behaN 01 my company, G&W Electrie Company, a gieDaI electrical equipment 

manUfacturer headquartered in Belingbr()()~ . IL 10 urge Cengress te e)(lend the -Mod energy 

productien tax credit immediately. 

With the uncertainly ollhe PTC's lulure, we are see.ng a $Il ere decline on the pari atwlod 

dev~opmenl In the US thai wIlT ultimately grew inte a virtual collapse in 2013 and beyend if 

Cer.gress waits Ie elClend Ihe credit until just baroN! Or after II expires. OUf company 

manufactures and supplies medium vonage switchgear to wind turbine manufacturers and 

deveklpers whict1 ties the turbines lnte the electric grid. 

1"1<11\ 

Should this business evaporate over Ihe course 01 the next year and beyo!1'd. ~ will ce!lainly 

impact reb creation within OUr company. More importan~y, we will he.lorced 10 limit any funhel 

expan5i<m of this product line currently being planned to enable us to better compete with our 

foreign competmon. Hewever, in extending the PTC, you might also wish to consider that 

Congress po'ovlde enhanced taw credits for projects uUllzong a tar~r US content of material ilnd 

sel\lic:es over those using a majOflty of offShore material and sel\lices since US IlIXpayermonies 

are being used, 

As you are well aware, alternatives 10 foreign oij imports bear more importance than simply the 

financial aspects. By Umj~ng our exposure (lind money paid) to unfriendly na~ons from whom we 

imporl energy means, we enhance Our national security and self sufficiency , We slrongly urge 

ll1is comminee to immediately la~e up an e'(\"~sion of the wind energy produclion 1~. credit. 

Sincerely yours, 

Region~1 Vice Presklent, Northeast 

G&W Electric Compal'Y Ib' 

~~ -­

__ 

••• u __ _ 

., 
523 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.455

Gamesa Technology Corporation 

1150 Northbrook DriYe 

TfeYOSe, PA 19053 

215-71{)-3100 

WwW.~.com 

May 10, 2012 

Tho Honorable Pal Tlbe<i 

Chairman 

Gamesa 

May 10. 2012 

U.S. House Ways and Means Subcommillee 00 Select Revill\IJe Measures 

106 ClInnon HOll5e Otfic:e Building 

WilShingto". DC 20515 

Dell,'Chairman Tiberi: 

Gamosa Technology Cor;l .. Int .• a globilileader In tho design. manufacture, installallon and 

maintenance of wino turbine generators and ll1e development and sale ofwlOd farms. was 

Ihe first overseas wind manufacturer to set up full prodllClion faciliHes 1n the Un'tod Statos. In 

2005, when we deddod to build two manufacturing ptants and locate our NOI1h American 

headquarters In Pennsyl~anl . rt marked a major milestOI1e for our nation: Instead of losing 

jobs over.oeas, we were suddenly lUring overseas jobs here. 

Today. Gamesa is the lourth largest wind turbine manufacturer gtobally, with more than 

24 ,000 megawal!s Installed In 35 countrles on five continents. Since locating nere. we nave 

delivered more than 3,147 megawatts to 36 wind farms throughout the country, and _ have 

anoll1er 767 megawans under cooslfuction 0( set to be delivered later this year in the Unltoo 

Slates. The turbines we manufacture here also are belog eXpO(Ied to ptaces like canada, 

Mexico, Central America and Sooth America, helping our nation regain lis domillance in 

delivering edvaJK:oo lechnologies_ In 2011 , Gamesa delivered 51 turbines (102 megawatts) 

10( the forst wind farm in Honduras, earning us the U.S. Export-Imparl Bank's "Renewable 

Energy Exporter of the Year" award, 

Gamesa has n~estoo nearly $200 million in manufacturing facililies and expansions, 

growing operations to n~lKie ~Ies offices in Dallas, Denver amJ Tr ose, Pa .. and 

development offk:es in Minneapolis, Houston and San Diego, As part 01 our gloDaI Corporate 

Univorsity program, wo jointly operale a U.S_ traif1ing conter wittJ Buclll;; County Community 

College. where we pro~lde con1inulng education to e~is!lf19 employees and oller our 

customers aOd othel'S s~i ls training In Wind energy technology, Througn a partnership with 

the U.S. Department 01 Enefgy's National Renewable Energy LaboratOf)' (NREl), _ are 

help<f19 to guide development of the next generation of wind tmOines designl:d specifocally 

for the U,S. marketplace. 
524 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.456

A number 01 lactors wen! into Gamesa's decision to locate ,n Pennsylvania and have driven 

our continued U.S. Investments over the yeal"5. including incentives provided by the 

Production Tax Credit (PTC). which did exactly whatll was desIgned to do .- encourage 

investments in clean, domestic enllrgy and genllrale rllal economic growth and lamilysustaining jobs. Gamesa supporls an fllltfinsion of the PTC because Iha PTC 

remain~ the crfl/cal bridge 10 enable wind energy companies to fully develop 

the technological innoval/om! Ihat can bring down the cost of wind energy, 

ma~ing it compelillve 10 all other energy sourC6S. EVEB,Y sourre of energy 

enjoys some form of federal support. The wind industry only seeks a lair and level playing 

foeld. Nol renewing the PTC would iJ() tual ~ slngte out the industry as the only energy seclor 

NOT receiving support - and thars tar from leveling the playing field. 

It is our belief that the PTC wilt be needed no longer lhan three 10 four yeal"5 and then can be 

phaSed out completety. In the short lerm. hoWever. It remains Cliticat to market stal:)itity and 

continued Iinanciallnvflstmen\. 

There is a common misconception that the PTC Is a grant. It Is no\. It is a credit that comes 

into play only when the projoot has been bum. connected to the grid and is generaling 

taxable incoma. In addi~on. the amount of money spent on Ihe PTC is more Ihan 

compensated through the economic growth il generates tllrough the inveslments in 

manufaclUrlng faci lities and associated ;Cbs. the entire suppry chain that 5UPPOns the 

manufacturing and development, income to landownel"5. and taxes pai(! to local. state ano 

federal governments 

In just three short years. thewst of wind energy has come down more than 25 perrent. The 

cost 01 Wind In 2008 was $1.4 million per megawatt: in 2011 , the cost 01 wirld dropped to $1 

millklrt pef megawatt. In our 2011 busifl8ss plan. Gamesa committed to bringin-g dowfllhe 

cost of energy by 30 percent over five years. aod new advancements already have us welt 

on our way to meeting that goal. While oompetl~on is r.ertalnly a factor - tecl1nologlcal 

innovations have played a maJOr role. Modern turbines have vastly improved retiaollily and 

have s~nir,cantty more megawall outpu\. and new designs on the df3wing board will allow 

for more efllcient use of materials and maximum wind capture. 

Without the PTC, these advancements In teehoology will stall or be transferred overseas. 

and our nation wilt lall further behind other countries that inyeSI in elsao energy production. 

lon-g-term product",n ptans lor the Introducllon of new generation technologies are at rls~ . 

Jobs are Tn jeopardy. 100. Across the wind induslly. layoffs have begun ,n some SectOfS. A 

recenl Navigant study estimates that wind·supportedjobs wiU drop by nea.rty half, trom 

78.000 in 2012 to 41 .000 In 2013, purely due to that uncertainly. let alone a lolal absence of 

the PTC. Gamesa currently direelly employs more than 900 .sklUed U.S. workers in a variety 

of disciplines. including en:gineering. ,,,af)ufacluring, assembly. logistics. conslructjon . 

.services and fTlOfe. 
525 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.457

The PTe sunset plays a major role in Iong·term investment decisions. Development 

decisions are baing mapped out now. ana the uncertainty of the PTe is affecting how 

companies like Gamesa and other alternative energy and wind anergy compan~s do 

business. Wind dBVelopel'1i have stalled projects beyond 2012. ana commitments for 

equipment that would have been ordered lor those projects hlM 3 stopped. In part because or 

uncertainties surrounding \/'Ie PTe, Gamesa recently froze da elopme~t of its offshore wi~d 

turbine prototypa planned off the coast 01 Virginia in \/'Ie ehesapea e Bay. 

As projllcts are dela¥lId, tha developing supply chain thai has become so importanl for bOl/'I 

\/'Ie U.S. ana export mar1o.:ets IS'n joopardy 01 floundering. In fact. by the eM olthe second 

quarter of this year, Gamesa's supply chai~ will stan to dwindle wil/'lout orders, and the 

ripple effect throughout the ewnomy will be signlficant, 

The domestic content 01 our U.S,-made turbines is one of the highest in Ihe industry. Over 

the last several years, Gamesa has purchased more than $1.3 omlon 01 U.s.-sourced 

content and sarvices lor the manufacture 01 its wind turbfnes and the deva!opmant of Wind 

farms. Thosa investments spread across 45 slales, including Pennsylvania, where we gel 

Ihe bulk of our resources. 

Despite the dire situation, 11's not too late to tum things arOUnd, The cyCle time lor Wind 

projltcts is 12 months to 18 months. So, by passing \ha PTe e~tension now. we can Slill 

positively aHect orders in 2013 -- and bring certainty to Ihe Industry and IImployees worl<ing 

In these sectors. But Wit must pass lhlt PTe It~tens on now. 

The PTe hilS been Instrumenlal,n the rapid expanskm of our natIOn'$" renewabllt energy 

se<:tor. and ~ remains critical to ~f\Sure Gamesa can meet Its ga.al to continue bringing down 

the cost or enargy generated by wind. Its continuaHon is cri\ical to ensuring the oflQOing 

investment of billions of dollars in development and deployment, the creation of tens of 

thousands or jobs'n manufacturing and the Installation and use of dean, rltneWable. 

indigenous energy sources across Amer!ea, 

On blthalf of Gamesa, I raspectlully urge immltd'ata le,g'siativlt aclion to axtend the PTe and 

reassure the investment community so thatit1e wind IndUStry can continue to thrive, aUraet 

large·scala manufacturing Investment and creale jobs bo\/'l here in Pennsylvania and across 

the C\)untry. 

Sincerely, 

David Flilterman 

Chairman 

Gamesa Tedlnology Corporation 

1150 NlYthbrook Drive 

Trevose, PA 19053 

21S·710·)I00 

WYf!t.sa~ ~ 
526 

Statement of Gamesa Wind 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.459

Mr. L"n") Uon" on Enl"ironmonl !o. lI ~ and S,r,1y ~"P<" lsor 

G.",,,,,, Wi"" 

II""," Add""' : 

~0I!"2 " S,,,,,,, S II' 

"'""m V<rn.",.lo,... 513 14 

Ih.lle Phone: OI91895·8.1IQ 

W,,,.k \'1000<: (2~ 7) 19-1·9(XJ7 

~1) .. If(J,,\\an} 

/>I) omplo)<T". G,n,N' Wi nJ 

AWPA 

I<,\\". p"odtJ<c"<l. hight-r p<'~<'·fI1a.gc ufil$ d..,u ;c,,,I I"'w"" "''''' "")" (JIhct ",,,,,. I"wa", c'ponin&<h."<:"'c,1 ,~, 

""d IIMlhe c'J>II'il)""' prud",c .nd oxpon rubolanl;.II)"",= "fits ;nc'pen. i,· •. <kan en,"",,·. Nu' onl)" ,h<,uld 

"" . ul'fXII"l 'he 1 ... , ;,,,...,mi,,,, for Wind bnn O",·.,I""",onl. btu ",··"""'Id he in,'cling in lhe inlhl$lnfClu,,", m ... "d 

" .... bullUanl InIIIHw, .. 1 "f Ih< SIal. '""''' ;1 ,..illl>< all ino,!",,,;"" .llom.!i, ,. ~'<>lh,,- OI<"Clrico l ll<l"-er. 
527 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.460

(~. ........ '-

--"' .. "",....," ....... -.. - .. --. , ..-...... ~., .(." ... ", .~ 

. ~ .. '''''''~ ... ___ ~­ .v 

....-. ".'" .....,~." .. "" .. .. , 

-...... 

t:iI l9 a 

SH E RMAN 

J lOdge. Gill)' fh",,,pso,, 

Sh~rman C oU~IY 

1'.0. Sox 365 

500 COUK r STKIJiT _.0. Ko;JIi! 

MfI.().,lRHiON ,)i)\~ 

Mor", OR 97039 

S4 ·5~5-34\6 

~hOl!Ip50n~(>,~ ho;j1nHn.~ .I" 

Rc: fle~rillg ~n Cenain expiring Ta:< Proyisilm' 

Tu I"" Hoo>e Ways and Means Com mitt"": 

Alllhrllughuul Ea~tcm and rural Ore-gon ~ummunitil.'S . f~mi!\e,:. frie,td~ alKi neighbors 

3n' suffering., Jolls art scart:e. COM~ for c~CI)\hing from food Ii) omcrgy arc high. and 

sewr,,1 CUUnlY Illld cily gov<',mmcms 're facinll crippling defIcits and unilnag,""bly 

dlflkuh di!.;hi()fls aboul ..... hal ~ilnl ~!'\'k~1 1!I<'y It;jve 10 ~Ul . 

hI Sherman Counl} We h., ~ ~n 8ble '" wUlher ~ lough t.:()O{Jmi~ ,Ioml' by 

hllJ'llr<,ing .h" wi"d. We bujl. '!\OT forsl wind tilMn io 200~ and S!ICnnan Cuunty w)nd 

dovdopowm p1Qj""l, 1>0'" ha,,, m~ Ihan 1.000 mc'jl,awans "f",inll lu<bin.""p""ily . 

Taxes, fe"t:S and 1I.'~",m.nlS otl tb/j.., wind projectli hay. MoU~1 itl al'l'<oximaldy 

$21 million to Sh~nnan County O~~ 1~)!'lS ! ni"" ycan<. TIm mon;!)' has helped fund 

,,,,<cntial public serviei!!!, paid ror addili",ml ,""nIT de[l1Jlh.",. buill ~ library and 

3l1owi:d u~ 10 P"1 moru:y;n \/,.. poe""!' of Shennan COUIllY cilizens durins challenging 

eco"()fIlic limes. Wind dc,dopm~nl h.as played 3 HI)' imp<lrtanl role in ""' "",onomic 

sun'i,'al and Iha! of O!"", Oreg.on counties .lmt ~utl'e embrattd d, ..... dopmem "r 

.encwablc enc'1"SY. This ~ 3 " ... ~ g",w,h iOO".(1)' for our pan "f ,II<: stalc and 1 tn,ly 

belie"" ~13l renewable energy development. wind in panicul~'. can saverurnl OregOn. 

Slrlliegic go .mmeDt policies h3\'~ bee'll critical in promoting wind de\'elupm<'II! in 

",ral Oregoo. At the ,1111" lew!. the RCIIC"ablc »o" 'illio S!mlllanl ,,<\S,,,,,,S o"r .\tal" 

uliJi i~", will gcncntle a cenain ~m()U11I orlhcir clll:'t'gy frum l()Cal. ""n .. ",'able !j()O!t,'S. 

This M.I prompled i",'~s tmcnt in wind ~nd brou/!.hljob;; . nd erollomic devdop"'~nl to 

"c~ like $h''11113n C""'nty. 

At the federal lewi. 1M wind I'n">duclioo Ta, C .... 'di1 has 1,,'II>Cd bring \lind 

dcy.loplllcm proj""u; .nd j<>bs 1o rutlIl On.-gOIL Now C"ng""'S i, camide,'ng Il·uing 

tho Prod""!;",, T~~ Cn-'IlI! ~Xpi"'. whj~h ",uuld result in ~ sl];";1' •• nl lo~< Ilf tt.ln<ltn!c 

dc,,'ci0rrncm and jubs fOI Shern .. " Cou"ly ",\d ~,c .",,1 of rum I 0..<1;= 
528 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.461

Th." wind Prudutllon Tax (rt.-..lit is II smarl led~rJr in"C$tm~nt ,,-hkh hdps pri~ale 

companies d~\'dop local ~n~rg~ resourn-s and create jobs at hom~ _ It rcw:lrds nnly 

~u~c~~sful p"rfonnanc~ and hl\:l beC<HllC a multiplier for privale 5<:etor !\lV"th. I" each of 

the past Ihrt. .... years. Ihe wind industry has made between $10-10 billion of capital 

ilOvestlllCIII in (he United SMCS. Without Ihis critical pro-devciopmelll ta~ p<)licy. 

addition~1 ;nv!!'5tmcnl 'Iill disappt'ar. 

Shcmlan Coullty and all of nrr:r.1 Oregon will l'<' hurt if Congrcs~ allows th .. Production 

Tax Credit to expire but my com.:em "xtcnd~ be~olld Or..gon. There 3re mur~: (Imn 400 

manuf3cturing pl:mlS nnd 75.000 wind-related job> in Ihe United Sml!'S today. Tho~ 

jobs me HI rj~k. Already. due 10 Ih<' IIn .... rlai"ty around Ihe future uftll~ credit. Ic-JdiQI,t 

wind proj«1 developers lind InanufpclUrers nre :llo\\ing the;r phllls for 2013 .rod lx-yond. 

Scme dcvdopers ha,'" no pmject~ sche<lukd for ~OIJ, When the rn~ credit ellpired in th .. 

p,'S!. ln51111111110lls hllvc dropped by as much as 93 pereent. wirh oom:spondlngJob losses. 

Without the f'roJncrlon T~.\ Cn.-dlr, jobs, lllanuf:IClIlring. cn .. rgy dCI'cloplllcnt and 

funding.streams for n,ml Oregon allwlll suffer. Renewable crlCrg)' del'clopm~nr has been 

a lif('. lin(: f"r ShCm1!l1l Counl)' and is I'Cry imporl~nI t(> th" rc";tilli~3\;on of nil (If ruml 

Ore!:'oll. The limc to act is now. Due to the ICIId Ilmc n.:quirt.--d for ortkrs to malll,r:r'tun:: 

and a.~scmb e infr:lSlructun.: dem~nts, the industry' I~;II .uOcr major setbaek. in 

production timcliues if the wind ['rodudlon Tax C",dit i~ OOt exlend~-d iu the m:.~1 f,-w 

\\eeu, We cannot afford to wait any on;;~r. Coull"'S! m~l nlend the wind l'il)<luct;oo 

T,,-~ C...,dit to advance America's indcf'<'rKknt ~ncr~y fuw1\! and keep II1ml Oreg<)11 

mo';ng forw~rd. 

Sincerely, 

Gary ThumpS<)n 

Shennan County Judge 
529 

Statement of Gary Wyman 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.462

Gary Wyman 

7179 North Holmes Plate 

Painesville, OH 44077 

440·352·9380 

gfw999@roadrunner.com 

April 24, 20ll 

Hearing on Certain bplring Tax Provisions 

I, Gary Wyman, Retired in I'alnesville, OH respectflJlIv urge Congress to extend tlie wind energv 

production tax uedit (PTe) as quickly as possibl~_ We need to encourage the domestic 

production of alternate ,;ources of energy_ Doing so will not only prOl'l1(ltcjob growth but help 

to move us away from foreign energy dependence. rhe latter is not only an economic 

necessity, but a national security one as well. Citing budgetary reasons for not extending this 

credit is not a val id argumept, Rl'ducing the deficit, as evidenced by the Si'llPson Bowles 

Comission recomemlations can only be tackled by increasl l'1g revel'lues and cultil'lg entitl!'ments 

(MedTtare, Medicaid, SOCial Securltv and Defense). 
530 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.463

S ta lcmtnl llh"Ii"~tl r<>t 'he RCfortl o f the llta ring .m /lu ri"ll nil ~rt.in Expiring T a \ 

I't<>.;, ;""" April 26. 2U12, hy Ihr uh"o mmi" ~ on I .... I kC"~n" c MuslIn.'S "r lhe 

C"",milll-': un Wll~ ~ anti ~ 

Slalcmcnl submiltcd by and on behalrufK~rl (law.lI. f.xt<uI;ve O''''"lor. C;c()(~"nnal F.n<fl:.) 

A~Oo:i.liun. 209 Pe"n~l I~~ni~ Ave St:. W.uhinglon. D,C ~OOO~, :O~J~~_~~61. rl ~~nl"l:Y..Jl[l!. 

Mr. CI!:l;nnen. Mfmlx.rs uf thc SuOConlnliutt. olll:>ch~lf Dfll>t: Gl'Olhcnll~1 Em'rgy A5!!OC';IIil>!l. 

which has o~cr 100 US L'Omplln)' ",embers 8Cros~ Ihe UnilN STal<'S. I submillhi~ ~lc",enl f()r 

Ihe IWOrtl of},ollr h~fing. \'lhall~ Ihc Sllbron"ni!!«, fOf considering ollr 5lalemCm Q5 p"" of 

ilS dclilx:rlllions on Cc"~i" E.~piting Ta,~ " mvisions. 

While il is nOI alw~ys recogni~ ... 'tl in Ihe-debale. Ihe cO'.'<:Iil'c dalc upon "hkh u la~ inccnl;I'c 

c~pi",s is oflcn delemlincd by faelors other limn 1m, sl"'cilic lIIonlh. d~)' and Y"ar slipulatcd in a 

law. Suclt is Ihe cas;, for lhe- .... newabk energy production tax cred;1 ;\S ,Iappii,'s 10 ~olhcnnal. 

and for thai maner ml ... r bnso: load renewable power 1~lm ... logJ<'S, 

Fur biomass. hydroro" er, alld S""lllht:nnai ~nerg)-' the currem In'" pro, ides for a productivn t:, ~ 

"",-.lit for any facility plnc<'\l in s~r\'ie" by u"ccmbt'1', 31, 2013. White tlml is rna", titan n y ... ~r 

.way. lx...:a,'5< of lit" long lead limes n"lu;",d 10 I"'m,it and build 3 gemher", a l power plum. lhe 

indu$lry is al",'3dy facing its tllX ;nt'"nli'f cliff. In I'l'Ccnt yelllS. """thermal prQJ""ls 31'1: laking ~ 

10 S years from initial cllplorllliol1 to inilial po""r production. I"'rhaps h;,lf nfwhich is due tn 

gMemmcnlal re"i"w ~nd processing! We und;,rsl~ 1d olh"r bilge lood POIWf ll'<:hnologit'S have 

similaror evcII longer lead liml'S.' So, "'iih Iheir lax deadline II linl.: owr a yc~r IIway, i1 shoold 

nOI be SUlflrising thaI 1",,idcrJ; flum thc~ Ih",,, induslric ~ point OUI 3 receni letlcr 10 congressiOllal 

!caders Ihal Iheir lax eredil "csplmlion in 2013 is all\:ady leading 10 a tk~llnc in new projecls and 

tooslnlClioo." 

The ICxIDf lhe joinl lellcr lTorn the Geothcmml En~rgy Assndnl nl~ Biom3~s Power t\ Ssoc i~lion 

and 'he Nal;')IIal flydropower A, ,,,,,,ialion ii aPf"',,<.Icd 81 tlte end oflhis stale",e,,'- ,\liltt,n-c or 

Ih(:SC I~hnologies "crt: added to Ih" liSI ofe!illiblc Ie;:h,m\u!!ies for Ihe S(Cl;DI1 45 Productio l1 

Tax Credit by Ih~ £n~rgy I'oliey I\cI of2005. All three nftltese ,<s:hnolugies C'~n p«>\'ide IlniqllC 

and impo"al1l base load or ~iblc J'IO"fr It) Ihf grid ~nd lllt!ir development is cri!icnll) 

importanl fllr future yid ",liabilil),. 

GEA asks lhm Ihe. Sulx:ol1unittcc recognize Ihe uniquc nature. s,1d value. ()fbase lo"d n'ni: .. ahle 

po"'I.'1' rct<UU"''''I as il dd;bcrn ll"S "helher and when 10 t'J<tcnd expi,;n!! lax p1QvisiQll'j, in 

p;l"/cular Ihc placc<.l in !l<'Nice d~IC for thesc (<'l:hool()gi"~ "".let the Seclion 45 J'rtTduction ra~ 

Credil, Oue It) their long kad li", . lhey are ulrcad)' l"';Icing the imp"c!s of c:'piMilm. and 
531 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.464

supporting their com irlU(><j gro,,!h through an extcnsi()l' of tneir t:I~ il1~en'i~es minI's impl.rt3nt 

\,~IIk'~!'" Ihe nuti,.,,, and (ts power ~)'~Iem. 

The eXlcl,.,ion of the rt'1!ewable ene ... ,>" plPduction 1.11(. credit (I'rq to Bcothennal energ,y in the 

Enc'l!Y Polic)' Act of2005 has been g principa l facto, in Ihe reccntl!1owth ofl;eolhemlal energy. 

Prior 10 lhis chonge lhe I'Te wa~ a~ai able only 10 "uK! and dOSl:d_l()Qp bio",8Sii power projects 

and gWlhennal ~I>er gy wa, di'kldvanlllged in rt'n~w e pOw"r bidding ctr.POrtun it i~~. Since 

2005. G.eothem,al pow'" It:l' ,een 51""!!y gr(l"lh in the Unit~d StUtes. a$ ihe iigurt' below shows. 

Growth in US Gc'Oth~nnal Capacity On-Lined 

FIgure B: Total ' nna"ed Capacity 2005-2010 

,,~ 1 ~ ,,~ 

f - 1101 

• u ,- • • , .. ~ ~ 

;; 

, , .. 

• ,~ 

~, ''''' ,~, " .. "" 2010 

Tor.LI)" n~'" jl,'Othemlal p!>"tr prujetts comin~ to be placc-d in.scIVice. nlld "e CXJI«I that a 

signific3m numt,.,r of new pruje<:ts "ill ~ completed t,.,fo.re the Oc'Ceml>er J I, 201] I'Te 

deadlinc. 

How~\ (r this d~adlinc pres;.·nts a ~rious obslacle to groti1cmml energy JP"O"1h. Accoruil1g 10 

our-an~!ysj$. !;i:Qlhemt31 poWCT projects in the US lypi~lIl1 y l"Njoirc ~tW~<'Il fOllt -and dght }'~':lrs 

I,) compleH:. The timc ".:riod from initi~1 (ji!;(;,)v~<J) ' and dplor:ttion to bringing p()I\er on-line 

Iheref()f"t." t:lkes lon!,;"r than [h" CUlTt'1II lll;< witld"", ~llow$_ Once I)lvjcct, 1I0W in lal':r sI3~~""Sof 

dcvcl()pmcm 3'" completed. tit"", are indicalions lhal ,, ~ will sec only limite-d if3n), neW 

dfvclopment as n rl"SU\t of the oncmninly surrounding gro!hennnll3." int"emiws.'" 

w~ re~peclfully lltgC that 'Wlllh~nnnitax credil> j)j' cNtcndo.·d to provide continued suppo" for 

new project d.,\'tlopmcnt and the deployment of Ilo!W !.\d'lhero'31 cn~rID' t~'Chn(llogy. Our nnli(ln 

has among th" "orld·s "'05[ promising ~cothcmlal energy reS01.lrcc~. but wjlho~1 II!<: s upport of 
532 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.465

10n£-I""11 13}C intenlil1:$, "e will nOI see Ihe inV~ Ull~nI "",cess.1l)' I" d~vdop Ihi ~ inv31l111blc 

domestic snur\:e 'If base load renewable cl~rgy. 

II i~ worth noting thlllthe US Oepartm~nl QfJ.':lI<'1"g)' has ret~ntl y opprtlvcd important re, c3reh 

pmj~cts in g~oll,(:rmal ener~y . "hich ~rt Ih ~ li!"!!t si!Y1ificant im""tm~"ts in new' I:!c-olrn.·rmal 

IcchllOlogy by DOE in decades." A ~w;ng mar\;cl for geothermal energy ~ import:'nIIO 

=Iizing the rull benefits ofthi$ inv.>stmenl aruJ eXlension of the gNllh.'ml31 PTe;$ essenti31to 

gm"iflg tilt"" U.s. dcmelld fur geoth~nlln l cn~riO'. 

~ heallh of l~ uS gelllh~nnni ioot~~try ulld ils domestic mark~t is 01.<;\1 imporUlnt In Inc role of 

US gCOlhcnnaJ limls inlemotionally. There is a ~tro g and growi ng world mar1.: ~1 for grolhem131 

eners>', and US (innS arc among lilt le"dcrs in these markets ..... ccord;n!; to the Department of 

COtHUl crec, gwthenHlt! is one of Quly twO renewable technt)I(jg)' o"'~, "here US finll~ are 

oponing Inure Ihan lhe US manN is importin!;- and Ihe benefils of"uslainiug thatleade..ship 

arc "bvl0us. 

Extending lh,' deadlim . .,. under the cu .... cm law would hell' provide \I", ine~llti,e nc~d~'<l by 

invcstor.; looking Ht m.'W geolhcrmlll l'O,,"cr projrcts. Today. lrn.'re arc proje.;t~ utlder 

developmenl in some 15 I~te S, as sllm"'l b..'low. and we hope that I\dvances in tl'Chno)ogy "'ill 

SlIppurt expan.~ioll 10 mJny mOIl: Slates in the fuwn::. 

SlalCS wilh O"'llilerma l Pr\lj....,t ~ UoJ<,r Ocve!opmc-nl in 20tl' 

Til<.' invcstment of billions of dollars in nCW gCillh<:nllDI pom.'r projects will help the ~'Co"om} 

and crealejQbs_ To give som~ perspective. Id s look at on.., new project under dcvdopmcill in 

California. CnlJ.':~gy. a subsidia/Y ofMid·Amt:"ric:ln E1\e~. has three 65 m~gaw3n 

gC("lIhcnna l pr\}j~-tI S pcnnillcd and uooerd.:vciopmcnl in SOulhern California." These three 

l'mjccts will represcTlI aoout S?(l(I mmiOI1 in new inwstJUCTlI ill a counly wjlh o,,~ or(hc highest 
533 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.466

unemployment rules in the SlIlle - o,'er 30"10. lIurinlr,ll>e roughly tour years OfConstn,clion. 

ClIlEnergy "'i ll emplllY a monlhly a"crugt: of)23 ",orkers. When Cllnlplclctl. lhe projeci ,,'ill 

employ 57 fuil-lillie employCt's \opt:rJli\)!1s, en!!illl.'<!ring, mailllenalIC\\ ~<lJlI;lIis\J1llion). For 

CClmpariwn. MidAmerican 1101'-:; 1/131 a 300MW 11.'1111'3.1 )!;a~ plant in Op<'lmion will employ about 

I K people. 

TAX iOl.'1:nlivcs for ncw gcolhennal invc~lmcnl will 1101 olily 1lI~'lln economic stimuli,s onJ job 

cn.'"3tion. but will pn;xluce hJghly ",liable base load fl'U"cr. Goo,hCmlal p",,-er plslIl$ npt:"lIe ~ 

hours a duy. 7 da~ a wed:. 36S days n ycar. rcg.lrdle s~ of whether th~ wind blows 01 the sun 

hill~. The)' p'm'ide mIlCh Il<.'«<kd ",liability 10 the power grid. an aUribute which u'ilities 

"alue and an import.1n! re3$01I why they find gcothenll3l po,,-cr au",,,ti,-e ",l>en il i. !lV"di b ble. 

Wi,h CO'lI;nt>I'<J IJrogress ill cxplolllliOll. Icchfl<,)log} develop",ent. and markel growth Ihe"" 3'" 

sub:o;ulI1ial new gt'Olhcnnal resources which c"(tuld be 1I13\J~ available. Geolhermal r<'"SOuri.·"~ in 

the US remain largely U1l1.,pped. because-ofille high ris~ offinding and pro~il111 jI.~01 henn31 

"'WUI"<;CS. R<'ttnl\y a '1ICel;n!; of leading reseal"l:her.;; and cxplOf1ltion ~spt:rts c~lled for a 

n~tion~1 e~plomlion initialive by idc'nli~ i"g petifi,' prospecu for mil ndtliliom150.000 JI,'IW of 

g~'OlhcnnAI po"'cr, which C(lUlll be lapped 10 e51:lblish n Stf1l1cgic Goolhemml ReS<.' "c.'~ Wilh 

continued ince,"i,,"!; for in""$t)llcnt ill new powcr prQjl"c1S ,,-e w,lI c3pi'ali~e on \JI'II" 

Il"t:hnQlogics which ,'Ould mak~ sil:V'ificant 0011' geolh~mtal CII<'rg)' prWoclion a reality;n the US 

and SUSlain US lendership ;nlhe "nrld geothemlal mark~l, 

Te.rl "jU'II<.'r (){,tcd FeimmIY 8. 2012"": 

Dear J.ea<ler Reid. tead~r M<Cbn n~ll. Sp<.'akcr lIQ1:hner. ttuder clo~i. Chairm~n Uautu •. Qnki~ 

Mombor t",~h. Ch:!iml:U\ CIlIIIP, Ranki"!: Mombor Lovi". Cons' .... """ ~kh.n. 3/\d Congres',""" 

R\om~n.u~r: 

F", ","'It ",,,,,"ablo d«:lricil) technGlo,;,·. in ,h~ Uniled S\oI"". the !;ox i"".n,ivo. put in pi",," ow,-th. 

last dc~ade pm~ided ,he r, ... l s;gniflc:t\" fcdcn.) ""ppon in dcoc:sd~ ... By any mea .. ,,,,, I~o,e polki .. h,ve 

bc' .. l ... m~nd"""lysU""(!'sfu l i~ 'plJni"J.r,,*,SIruc:tion Or",,.. pmjr<.'\" and 'h~ deployml"" "rnllw 

te.:hnolog:l~ ""ron<ling 1M ,uppi)· "faITo-rdable. dean el.micity 10 ,he ~ri . supponll\g .igllilkant lonl 

O'eo)fIOn';" QPponuni'i<'$, ",,<I .r<'~l nS I"IS oflhOUSllnd! of U.S. job!;- in "'8io", ofth<- comHJ)' 1101 usually 

a!Socio'cd with .. """,able ene't)·. 

Ai. th~ Prosident rightly poink'd 0~1 hI hll Stolt of Ike Union uddm5, c lean cnorp) ta ~ inc.,mlns orento 

jobs an<i a rna"'.t fUr ;on","li~n. The l""odU<lion laX credit fo)r hydl'U"","'Cf. ~""lh.nn.1 and bioma.s~ is 

no n".p'inn, h. loomin& expi",'i"n in 2013 i, 31 .. ady leadinll 10) a d,oclin" in n.", projee", and 

CO!lSI"""jQfl, allin ~ '0 .~\ef\d '"est t.~ in<:l'ntiv.s "'ii! cn"<'<!'iwly bring 'hOM rrQj«:'S10 a ~rindin¥ hah 

and undcmli"" ,h. progress Our industr~ ha~e mad.: In .-.«nl )'ea .... 
534 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.467

U'ilily-scule hydropo ... er_ g(I>,hi:rmal and biG"'w prujttl' slar1ing loday ,.."uld r,nd;, "urly impo,sible 

hI be eomplett<! 1>1'hi:,(nd "f 201)_ I(ro~n' .'U'minatiOf' "fnew seo,h.,m31 r,oj«U fond; lead lin."'! of 

fou, 10 .iglll years. Hydropowe, haj B simila, ",ullI·}'U' licensin!!- schedule_ followed by Ih~ ~nstructlon 

lim~linc. For bi<>mass. a J'\'<'<'ntl)' c<lmpltted 100 MW facility in Tcx~. t<l<l~ mO~ I~nn fove yC~rl; ..... fon: 

o"~n b",a~ing )\","nd, 

The 'a~ inc.nli .. ~s in pi"". sineo Ihe mid-2000. hnl't hell"'<l "'M' in. renaiss.nnc. in our indusl,i~. Li~e 

.he fedoml 'o., incent;\'\.'!;. Ih. D~pnnmcn' ofl':"'rgy -~ inv""mcnl in new 'rehnol"lY "'Jlffilcnl'llhc fI ... ' 

slgnlfl • ...,1 federal .uppon for ""w gco' ..... rm~1 and hydropower 'e<:hll<>log) in decw;. Wel>cli~ve Ihe 

in,<'$lIn"I>' lIill p~) ,.,n: huI so'IIIining Ih. ""lIMTllum 1<> build new project. i~ .,il;cal. 

As Congress c~nsidC1'S e .• ,endingce"Bin key inc",,'i"o, this y~"r. i, "ill hav~a "'m"rkab ~ Oflil'O"uni.y 10 

pro.~c' rre~n' &!,"IOlh In''''' ,,,,,,hermal. hyd,opoWl'r and biomass ~tnrsa! .. "I 8$ build upon Iho 

.utCCSS5 "r,h".e polk;~ ... ThaI i. why i, i. cri';callnal C""gr ....... millimum. eXlend Ih. ronclI'3blc 

el>Cri~ prOdu.,]o" las credit> 'hl'Ollgh 1016 rOT ,he f,,11 rtmgeorrene .... ble energy I«h"olo,r.,:. Including 

b)'drllpj,lI'cr. gc"th~rmll. iUld biumass - all "(,,hich h~"c much longordcplo),mcntlead limcs cllnll';I1cd 

til orlrer renewable enc"fll.Y 'cch"ulogics. 

The ~ne!ilS"f"ur t<-<:hnoIOjli., a,. cl~ar. All ClIn provide hi~h qu.I"~ el«,rit !"""wr ",i,h ba><' I~"" 

reliabHity .. "oil a... llexibl. ourpull" complc",enl <lIhcr techl1ologi"". 1111 have lo'!!. umopped f50""'. 

blIS<'s acros.s rhe "'fill <.'Con""".,: or lhe nllion, and Ih.ir continued grll\\1h could p",vlde cn~ of 

thoUi~"dS"of3IroJtd3bk .• k~1I meg3\\1111$ to America:. rlretrie ~rid "h;le ."'.lin8 domeSliej,}!)! .nd 

d,ivinilioeal c>con"",ic """vitr. 

CUm'nlly. Ihe In'·.Slm.nll ~ c .. dit for !;()I~f il Iho only ",new.blo .Icrlrkily \a)t incen'i,'. elTrolive 

.hrtlllglll016. C"n8Jl::5S ex •• nd~d Ihi. cre<lil in explicit re<:ogniliOlI oflh. importance "r.labl. ~"d 

predic,able ta~ polick<. The dumlio" oflhi, drc"tiv~ pro~",m ~huuld be a mi!d~1 fo' ""h~~cln& ,~~ 

oITtcth'en<u of.he f""oml tax itILenth' ... for Ihc rc~, of lilt ,..,tlLwahlt <I.ctricit~ tN:h"ologie~. 

The polid« signed i~", law 0"", Ih<: losl d«~cl" sought'" expand f.d~,"1 ~upport ... d i"c~n,iv" '". 

wide ""'t" ofRo:hnologie •. and to pro,'ld<- 10~ger-'''''I'' in<emivn Ihol ,uPP<>" induSI!)' growrh snd "",II' 

.«hnology deployme",. And lltey h3V~ boe" .ucc~",rul l" cre~ling m""'!:fllu", for n~w conSln,et;"". nell' 

capati!~ and ntW i(>bs in Amcriea's n''' .... '3ble ene'll}' induSIr)". Thoi>'<" policies and Ih" i~"ts,,,,cnIS and 

jobs Lhalthcy holp Crc.'C need '0 be hpll" pia .. S<llhcY CM con.inue to work ti>< Am.rica-. e.:OllOmy. 

Signed. 

Linda Chu,ch Cioeci. b«uli\'e Dire<ior. National Hydropo"'c, IIs",,.;,,io,, 

DobCka,'", Pres'''''nl Diomoss Po ... e, Assodalion 

Ksrl Gall'ell. EXecullve Director. Geolhermal Elle,gy A~_'a.ion 

'0 ~u_", 1e<>'~~m~1 pm;'" lead ,im ... b ... Od upon GfA , .......... of prol'""" <om;nl Dn Ijn~ sl""c 2005. le~d I,..,,, 

of otner 'oth'lOlQf;j~. b .. ~ UPD11 o~lson.1 <ommun'wtlons wit~ 'heir ... ",,1.,10" lude ... ~Ip . 

, A""u*' u.s. Ge<I\h~m.' Power Pf'C>ducII"" ""d Development RO'OOrl 

"'P'~ 2011. 0." i1!Me)ohn, G""I~crm.' Energy .... ""'I";on. o"i~ble ." !U\2l'I!!!.:.~!l\'.e!!lI!P2G'd!P'! 

• GiA ha. und. rwo. r .... .,</l e •• minong obsl.dH '0 PO"'~' ~.nl dlWelop",.."t .• rd an u .... ""enl of I~e <u"~nt 

orojetlleod-~"'e . ThaI PIOjKI e'~m;n.d lne Ilme "~me '01 new projecIJ <omi., on·line "nc. 100, and found 

.~O\ Ihe r~nl e. oI I .. d tlm~. wa. fou, 10 elshl years. ~n )e"f\ejo~". Geothe,m.1 E"etiV ,4>s.o<laI\of1 ,ese.re~ 

."o~", 

• WIll" eo",,". h"' ""oin ,~ the n""; lor ,ese.reb ,uooort in ° .. nHe 01 g.."her",oltKltnoIOl,e •• ,.0' by 

po"inl: the 2001 !nh>nud G""the,mol Ene,f'I R .... .,<h o't<! De~lOp",ent "",on . ",onl t.·p.,tMn bo,I., unlil 
535 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.468

re< ntl~ !M OeQ.rtmenl 01 E~"' Y hal ~.ollided sun! lundl", 10. ,.o,he.",al '''''MDloEY, S,attlng w;t~ "'~RA 

200!1. OCE ~ •• >nnounced j"<t over $3GO mi ll "n In C"",,,,,,iti""ly awa.ded ' . ... a.rn c"",,;un 10, seot~ rm.1 

l. dHIOiOILV. · .... him have . 1.., am.cted an dd~lo n.' $lOO million In 'Kipie"t COSHh •••• bringing the lot.1 

in""$'m. "' to o.e, 5660 ",'Ilion. This . e".esen1> . mo •• b.alo "crd In •• ,'men';" DOE • • e ••• "h prio,;,I ••. 

• An"u.1 US, Geo'herm.1 Pow...- P,O<I",tion and O • •• <>pm~"t RepOrt 

A~'iI 2011. D.n 'f"""john. Geothormal Ene'IV ....... >Ciation. avan"bl •• t: M!p·U.l • .,..!!"'Bv.o'll.eJ!O" •.•• p • 

• Fm'" 1"' .... " .. "00 01 Orl. h.~ WOi<t ,lI. V;':. P'Mido"<. Mld ... "' ..... "'n E~.".IV. lo'i.t<'ion C· • • RETfCH 2011. 

Septembe< n lOll To ~ ••• II.bI. lrom l!ttp,Uw_ '. K~lO!I.t~ 

.. SU ~po" 01 Wo,"'~op On [",, 'ora,lo" and ...... "menl 01 lherm.' Reou" • •• p,.""red by 'he U"rv."itv 01 

N ... d. Reno G, • • t 8. oIn Ct nt •• 10' tn"'m.1 [no'K'!'. ~ •• n.blc at f:1.t1Il;l/S ...... "" 'l'I,g'i/.!P<'i1 •.• H! • 

.. Te .. topfO'd I.om letl . dtlu,Cuted to 110u.e na Senate le ~e .. ~p I. noted Dn Febluory 8. 2012, 
536 

Statement of Gerald K. Flakas 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.469

I. Gc",ld K. FI.ka$ or 29) Fiddstone Road. DoI.field. Wisc.msin. ~rfull~ urg~Cont;n'S< 10 ~xr"nd 

the wind ~nel"&' prt)du<tioo I.,. c...-dil (PTC,os quk~l y as p<l5Sibk 

I b<'li,'''~ Con(;Tts:< hUll!<- ", .. poosibjjil~. uJlI"$i'rib<d by t~ I'r<'ambk ofthaCorlS,ll\llioo oflh" Unil"d 

St."", "f Am~ric .... '" "promoto lh~ go.ncntl weir""," "r w~ ~le P""fl'~' p.." IIrd,i. "'.p<>rlllibiliry;,; u, 

<"f1SU'" lIal"~ Ila,·". mod~l'I1. Up--II}-<iaIO infraJl~ILI'" for lheprod""litm ()feIWrgy from doan 

",,,,,,,",,hie .o"",eg. WirnJ """lRv ~ '''''h a "",,"'c, and Ihe PTe i~an ~fT,'Cliw moan. for doing rhi •. 

The PTe dnv<!s billions ufdulla ... in privale """'Ilmenl in homeljlUwn A,,,one,,,, wind pow,.,. .~"h yc:u. 

I haV<" Ioi><'n the wind titon near Ol~ CQmmunity bringin& in C(llll;tru.:tjonj<>b~ at first. ornJ moint.naRC" 

jobs in the lor'g lenn. and !!"""ntting ",vo""" 10. cOInmunily schools and ho:;pil~ls o"~r th" lirelim~ of 

Ill<: ~tXts . IO<'I"<a:;ing lhe am"",,1 ,,(po'WI" !hal OVT coont')' ~ rrom ciean.l'omegrown. afford~ble 

rc>Ollre", is ~n excellenl thin!: for uS h"l do - , nd Ihi~ tlI.v eredil pro"idflll"n incenlive n" Ihe wind 

industry In conlin"" '" doju.1 m.l. 

I uf'lIc II", rommillec 10 lak,,-up un ","~n"iun ofihe wind ene'gy pnJd""'i",, t;,s ,;!\-"<l il 'i[!ht ~,, ") . • rnJ ror 

C01'PS IU aCI qvidJ~ 10 f"lS5 iL 

Sino~rdy, 

Gerold K, I'bbs 

!93 FicidslOnc Rood. Iklali.ld. WI 5301 N 
537 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.470

nil. 01 "oa,m,: "e. ,I.,. on C. rlaln Expl,lngl" P,ooM.,." 

We I I GeronlmoWlnd E""'Ir/,' uI;I;'y_.<.I. wT"d en"lN tIe"'l'lo","' bandT" Edin., MH, und. "tand 

Ihl! you hod ~ Ways and M .. n, Su!>co",mIUH 11 .. ,10, on COf1~jn I:.<t>\fin.l .. Pr",", /of11 on Ap,~ l6lh. 

~nd ....... ""CI that you w~1 be .' nll f'om \'Our <,"",. gu", and <o ... tl".e"u ot>oullh. I .. u~ o! the 

wind eno,B'I p,odu«IM to. c~d;t (PTe). A, you. CO!l'llit"""","" "'IO\'OU '0 "~pon 1110 PTC 

. " .o<ion_ TI •• nc .n<ion ;" impon'n' ,,, ou. company t..eou,," II ''''p' wind p", ~!$<omp.'. 

loday wi, " 0110 •• Io,m, ol . Ie<1,!u1 ,ene"lio". whleh .,.0 benefit Br."'1y Irom ", .. miws_ For . . .... plo. 

fossillue!-b •• ed ge,.,.,ion ha. ben.llned ~"d conllnue. '0 b<r""I~ lrom dl'"<1 and Ind l'ect inc.nllve .. 

1n<ludlna lK',m.nent ta. pro,!>",", . nd oU-e, """omk ~ •• "tale •. li" th e u", oIMa ... " limited 

P~nner,"ip, (MlP,) . .m0e1r wind o""rl Y d"", no' Ita •• IKe ... '0. 

U,e our p,. irle Rose Wind F.rm a •• 800<1 ~uml'le of the pooll .~ . 1f«:15 01 tho PTC_ IV. hi.e kept th~ 

"' lorfrl of our 25 0"'1'101'<'0' at GeronImo dil i!ently wo,kl.,. to ~ •• eIOP tho !>folect ovor 'he pa., 'h, ... 

y . .... ROt to ",ention dO'M' 01 eM,ullo"15, 10wl"'" . M ot"., Od ... I", .. to tet IMe project to who", It II 

tadav, W. -" . MW Dulldi'l!! , ... p.ojoet i" "'u,ltw. " MiM""',O and will ..... "'cy hur\d"d. af 

eon<lrucUo" wo,ke" Whl,," we do, ultimately yitldln8 • S:JOO<. mllli"o <apl,.. 'o"""m~nt In ,ura l 

"'",erlu. 01UI'in8 Gfwlnd ,",bin., th., we ,e buU, here in tho US 11'1 "'men,," m.nubet",I.,. """ •• " . 

Aft. , tlt pro~" ace. Ir>f<'0p", . ,Ton. wew-,II employ do,..." of ceopl. oper.nng a<WI m.lnt.'nlllllilte 

pia"" nO' 10 men'"," ",he ... admlnlsterm. ,ho p,oj~, remotel., f<lrthe" 1(>. I economy ... 11 be 

bol"e,.d by tl>o m1II("". 01 doll." th. , ... ~I r.'u," to the h"" eommun;!V "' '"" lo,m ,,' Iandowner 

pI.monts and 1"",,1 \a.e. _..,. yeo" flnolly. Ihe p"«hl .... olt ... powe' will ,.""jye. "able.le""""",,,,' 

e""'BY 'e_' .. 10< 10 ye ... by w .... of t~ co"'"cl w • ••• euled wllh X""I <n •• BY In wh,elt 'h .... .. Id to 

the MIM" "''' Publi< Ut ll ", Commi" io" ·con,"'"""y pr<wld .. lowe' col! . n.'1N to 0,,, 'V'l't'" ,Itan 

n~ .nliti<l3t~d coo, of t~ " . ,"rol p. iI~n~31 "" " 

Geron;mo eU"~~lly ~ •• • de.e(opmenl pipeline of .Imost 'h'ee thou.and mes.W.l" 1~". ~ fully 

""'loolOd, wouid provide bllll"'" of doll." of tapjt'II" •• "m~nl n ,uf.1 America and "und,.d. of 

ml lllo", In "'a •• p.ymen" '0 1oc.1 I.ndowner> " nd , .... to I"ull"""rnmen" <W.r ,ho Ule 0111>0 

projec"_ In tlte ", allewing tile PT( 10 e'pi'e h •• c.au.ed Wind de.~lopmenllo d,op up to !lQ%. As 

yo .. can ,eo Irom tit. abo •• "umbe ... tilT. doe,n'l IU" alleclln. wind IndUstry; II doe'n'l JUM .Iteel tlte 

londow""". loul so •• ,nm ... " wlte'. de .. lopmenl ,ltour,j be h'PII'!n1nl; It effecu m.n"f>.," ,,,, •. 

l!ue, d'I .... ", prole •• lon.1t and "ltimot.IV ,at" pave" w~o benefit /'om low cool electricity len.,. tlon 

til., .. not ,ubiect 10 \I1olent owint. from cn.n~ .. 1n fuol emt, '" de!flment 10 OU' "",u,. 1 PfI.I,onment. 

SI,k. HI"," 

Pre.ldenl 

Ge'on'''o Wind En~'£V 

bl"e@lloronlmowind.<"", 
538 

Statement of Gilford Wind Watch 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.471

Nancy Taylor 

Gilford Wind Watch 

P.O. Ball 185 

125 North Quanicassee Road 

Reese, MI 48757 

989-868-9893 

ntaylor125@gmail.com 

Hearing on Certain Expiring Talt Provisions 

To Whom It May Concern: 

This is our nightmare; a sequential account of how our small community will be 

forever changed. We feel our Township officials illegally approved two Special 

Use Permits to construct sixty-eight 40+ story industrial wind turbines in our 

township. To the best of our knowledge a group of land owners actively sought 

out wind companies some time beginning in 2008, possibly earlier. Residents 

were unaware that anything was taking place until we received the Public Hearing 

notice fifteen days before the Planning Commissiol) voted to approve the first 

sixty·three wind turbines on December 12, 2011. Prior to this, a new 20ning 

ordinance had been written and leases had been signed. Had we known about 

the project at Its inception we would have been better informed and better 

prepared to defend our position ilt the Public Hearing. We believe we were 

intentionally kept in the dark While land owners secretly signed leases starting 

sometime in 2009. How can you plan something that is supposed to jmpact a 

person's life and not talk to that person? Big Wind railroaded our naive township 

officials, promoting tax revenue ilnd economic growth, without thoroughly 

explaining the many implications a project of this magnitude would have on all 

residents in our small agricultural community. 

The following is a specific list of irregularities we found that did not comply with 

our Township Zoning Ordinance. 
539 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.472

We believe that the Special use permit was not complete at the time of the vote 

on December 12, 2011, Chapter 7,2,a of our Zoning Ordinance states: 

I} CONTENTS. The application package consists of a Special Use Permit 

Application form completed in full by the opplicant, accompanied by a 

fee as established by the Township Boord. 

2) APPLICATION DEAOLINE. The complete application package must 

be submitted to Ihe Zoning Administralor at least thirty (30) days 

before the Planning Commission meeting at which it will be 

considered. 

The Special Use Permit application was not dated. We found that a revision was 

made to the application on November 14, 2011; the Public Hearing was on 

December 12, 2011; this was less than 30 days from the application date. The 

application lacked the insurance requirement. It did not accurately state the 

boundaries of the project; the boundary map included all leased parcels, when 

only those with turbines-or turbine components necessary to this particular 

project should have been shown. The necessary environmental permits were not 

secured at the time of the public hearing, and we still aren't sure whether t hey 

have been approved and submitted. Residents were not treated fairly at the 

hearing. The township hall could not accommodate the number of people 

wanting to attend; many could not even get into the building. Several residents 

requested that the meeting be rescheduled at a larger venue, but their requests 

were ignored. Chopter 7.2.4 of the Zoning Ordinance saJls: The public sholl be 

given the opportunity for Input on both the rezoning and Special Use decisions. 

This Special Use is inconsistent with ~maintaining protection of the health, safety, 

comfort convenience and general welfare of neighbors and the community at 

large. Chapter 7.1 0/ the Zoning Ordinance stotes: The purpose of 

designating special uses is to allow practical latitude for a propertJl owner or 

developer to use a parcel a/land while maintaining protection of the health, 

safetJl, comfort, conllenience and general welfare 0/ neighbors and the 

community at large. 

On November 30, 2011, two Planning Commission members, both whom we 

believe were key players in solicitin!! Big Wind in our township, and who signed 

leases, resigned from the Planning Commission. We believe this was a calculated 

move on their part so it would not appear they had a conflict of interest, even 
540 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.473

though they were present, from the beginning, for <III the planning and dist'ussion 

leading up to the Public Hearing, Two new members were then appointed, 

leaving only 12 days for them to become informed and vote on the Special Use 

Permit. When residents spoke to both following the hearing they admitted they 

had no idea of the scope or Implications of what they were voting on, they were 

merely i"structed to vote yes if the application met the criteria of the zoning 

ordinance, (which it did not). In addition, there was a township trustee that 

remained on the Planning Commission, even though he had signed multiple 

leases. He was present for all planning and discussion, but recused himself from 

voting at the last minute, Chapter 1O.4.e of the Zoning Ordinance states: 

CONFLICT OF INTEREST. A member of the Zoning Boord of Appeals sholl 

disquolifV himself or herself from discussiofl ond voting in which the member 

has a conflict of interest. Fai/ure of a member to disqualify himself or herself 

from a vote In which the member has a conflict of interest sholl oonstitute 

misconduct in office. 

Chapter 10.7.1.3 states: Will not cause a substantial adverse effect upon 

property values in the immediate vlclflfty or in the district in which the 

property of the applicant is located. Our property values will be affected if 

our community becomes an industrial wind park. A township resident and real 

estate appraiser has reported that property owners could suffer as much a 

40% loss in the value of their homes If they are surrounded by Industrial wind 

turbines. 

An application to constrUction 81nduslrial turbines in a neighboring Township, to 

the west of us, was not approved, so 8ig Wind was back at our door again 

wanting to build them in our Township. Again they submitted an application 

with no date on it. The same errors t hat occurred the first time around were 

repeated with the new Special Use Permit Applicatlon_ We found a copy of the 

application that was at our township hall that did have March 8, 2012 as the 

date on it. A notice was sent to residents that a hearing would take place on 

March 27, 2012, and again it did not meet the 30 day review requirement 

stated In the zoning ordinance. This was brought to the attention of Ihe 

township supervisor; he acknowledged the error, and Ihe date of the public 

hearing was rescheduled to April l 7, 2012. This was the first attempt by the 

township to actually follow our zoning ordinance. The same irregularities that 
541 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.474

did not comply with the zoning ordinance the first time around were repeated 

a!;:ain with the new Special Use Permit Application. 

At the Public Hearing on April 17 • 2012 the majority of residents spoke a!;:ainst the 

additional turbines bein!;: constructed. There were union workers, from other 

parts of MI, that attended the hearing as well. They mOnopolized the public 

comment part of the hearin!;:, and a!;:ain, all residents did not have a chance to 

speak. These outsiders (not Gilford Township residents) also tried to 

intimidat e, argue with, and pick fights with reside nts. Residents were 

confronted in the restrooms. and were afraid to leave the auditorium. 

Residents were suspicious of the all the te xtin!;: that Big Wind representatives, the 

Engineering Firm representatives and one of our Planning CommissIon 

members were doing during the hearing. We also believe a note was passed 

from a Big Wind attorney to our Plannin!;: Commission before the vote was 

taken, 

The Planning Commission again voted in favor of the additional turbines, with 

the chairman abstaining and resigning when it came to casting his vote. 

Because of conflict of interest, another member also abstained. and the 

remaining three members decided our fate. Our Zonin!;: ordinance states in 

Chapter 9.1.b: The Planning Commission sholl be composed 0/ seven (7) 

members, comprised 0/ 

a) One member 0/ the Township Board selected by the Township Supervisor 

os an ex officio member, and 

b) Six residents 0/ the Township, representing, Ins%r as possible, different 

professions or occupations, who sholl be appointed by the Township 

Supervisor, subject to the opproval of 0 majority 0/ the members elected 

to the Board. 

Twenty·seven appeals were filed within one week of the hearing, and the same 

reply was recei ... ed by all: 

This is to advise you that the Township Zoning Ordinance does n2! vest the 

Zoning Board of Appeals with jurisdiction to review the Planning Commission 

declslons to grant special use permits. The Zoning Board of Appeals has the 

authority t o review decisions of the Zoning Administrator or a body concerning 

enforceme!!!, of the zoning ordinance. This authority does not include the 

review of Planning Commission decisions regarding special use permits. 
542 

f 


79894A.475wwoods2 on DSK499XVN1PROD with WAYS & MEANS

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e P"iU II PlnoM ~~M ';nuils <opewJ<oMod pU!M II WO!l\iJJd ~U!ln,>s 

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JO PJO!og lluluo1341 JO 1l1l!laaw e itua"uoo IOU IIlM d l4SUMOl 1'101119 '310JaJa4l. 
543 

Statement of Giovanni Milanese 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.477

I, Giovanni MBan ~s , a Commerdalu.ader in s.chenectady, NV, respectfullv urge Congre .. to extend the 

wind energv production ta ~ (Iedit (PTC)., qukkl~ as POuible. 

The-long project deVelopment and manUfacturing lead times for wind energy projects mean that the 

PTe has already effectively expired. Right no ..... , wind project deveHlpers are not making plans in the u.s. 

and American m.n~f.ctulers lire nOI receNing orders. The wind I"dullry I. lacing the recurrence of Ihe 

boom· bust cycle It h.sseen in previous vears when the PTew., allowed 10 expire. In the vears 

foliowing expiration, insUllations dropped between 73 ilnd 93%, wilh co"espondingjob lanes. I don 't 

want this to happen again. 

Equipped wit/1 the PTe. the wind energy i"duII", h., conulbuted impre"ive lv to U,S, economic 

development. fhe PTC h •• been instrumental in helping the wind industry to: 

lower the cost of wind powe, bV more than 90% 

Manulacture components lor wind turbines 3t over 400 U,S. m3n~fiCtllring lacllities 

Po ..... er the equivalent 01 10 million Ame,i"''' hOmes 

Prollfde ~s" of all n.w US power capa6tv in the pan four yeaf$ 

I urle t~e commIttee to takf up aM eKIensiOM of the W1Md energy product"" lax cred,t r1ehl ~wav. 1M 

doinS so, you will give the w,~d induSl1"'/ th e certainty that it ~eeds to co~trnue \0 SlOW its American 

manufacturing base and l/1vest 1n cleon, aflordabl ... homesrow" wond power. 

Giovanni Milane,e 
544 

Statement of Glen Bridges 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.478

To: 

Ways and Means Committu May 4, 2012 

Re: H~ al"' og on ~rtoin vcpiriog Tax Provisions 

My name is Glen Bridges, and I live in a small, rural Moine town. Since 2008 we have 

been the proud supporters of just three 1.5 MW wind turbines. Every day these 

majestic machines churn out enough clean electricity to power 2000 homes. And 

every year they pay about $150,000 in property taxes. 

During construction the developers poured millions of dollars into the local 

economy to truckers, road builders, constructiorl companies, engineers, etc., and 

now provide employment for a number of people for maintenance, snow plowing, 

management, and mechanical engineering. 

This industry has poured over a billion dollars into the Maine ecol1Omy ill 

recellt years, providing the only bright spot for future industry and future Jobs in 

Maine, not to ment ion the benefit to our erwironment, and tke avoidance of fossil 

fuel use. 

The vision in Maine is to have turbines manufactured here , and to export and 

to be il'lStalled here. A deep-water offshore wind project is planned for the future. 

So for we only have about 200 turbines installed; with a vast area. of nearly 31 ,000 

sq. miles, we have room for tkousands of turbines. 

Nationwide , wind development is in its infancy. Th is ingenious passive use of 

wind as a cost-free ftlel wifl never be subject to the whims of the Middle EtlSt, As 

you riO doubt know, t he USA is for behind Europe and China in developing wind 

power. It is shameful that we are not the world leaders. 

I believe that the wind industry needs the boost of the PTC, as long and 

until wind power is supplying enough power to shut down all of the polluting coal 

plants. How long has the oil industry been benefiting from tax incentives/credits? 

Shouldn't clean, efficient energy be given the same "leg up' and for the same 

number of years? 

We cannot afford NOT to do th is. r urge your committee to take up the 

extension of the wind energy production tax credit as soon as possible, and vote to 

recommend extension. We cannot keep 90i1l9 backwards in our attitude toward 

energy, and OUr concerns should be for a cleaner environment, not for the obscene 

profits of Exxon Oil et al. 

Thank you for your consideration 

Glen S. Bridges 

PO Box 156, Freedom, Maine 04941 

Phone #207-382-6221 or email Bothbridges@falrpoint.net 
545 

Statement of Global Energy Investors, LLC 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.479

I. David Richardson. Managing Partner for Global Energy Investors. LLC of Concord , 

MA respectfully urge Congress to e~ter'ld the wind energy produclloflta~ credit (PTC) as 

qu(ckly as possible. 

From my perspective. it is categorically unfair fOf the Federal Government to support the 

fossil fuels. including oil, gas, coal production, al'ld not s(milarly supportlhe fuel sources 

of our fulure_ 

The PTe drives billions 01 dollars in prll/ate investment In homegrown American wind 

power eacl] year. I have seen the wind farms in the Northeast revitaliz.e 'he commun~y 

- bringil'lg in construction jobs at first, afld maintenance jobs in the long term. and 

generating revenue for our commur1lty schools and hospitals over tile lifetime of the 

project. Increasing the amount of power that our country gets from clean. homegrown. 

affordable resources is an excellent thing for us to do - and this tax credit provides an 

incentive for the wind Industry to continue to do Just that. 

I urge the committee to take up an extension of the wl(1d energy production ta)( credit 

r;ght away, Thank you for your consideration. 

Sincerely. 

David W, Richardson. CFA 

Managing ParTner 

Global Energy Investofs. LLC 

Concord, MA 01742 

802-343-1400 

david@globaIBnergyillvestors.com 
546 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.480

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u" behalf olrh~ (i"" .. "",..' Bloh""(03I11I"". wO .'" wnllng to ""P""" "or 'UPfI<Irt f~' Ih. 

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"'lon'liIn or'hl, lmvort;lnt prool,lon. Undor ,lie ~"''Nl' I'<>ll<y A<I rg "92, 8S I, an . jwnO!lye 

fuel for r.d~", .o.'N fl<llIry PUflKI>". How".r. Con~r .... o'illn.lly w,,,te £85 oul 0' tho 

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10 bon.n, f"",n th~ . llo, • • Uv. ho"l. '",onll ••. 

The eo",,",oro' aiofu,l, c<>.lIlIan I, ... 4, up 0(]3 ,nemOt •• tal .. lhat prodL"'" 

.ppm" ... t,ly ~S p ...... "t ", tlte elh.,,01 prodo«d I" tho [I,s. w .... k to Inm,,, .. rh . uR of 

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the ~"vlrt'"ttI.nl. dlv."lfy our ."'an', '"trJ)' part/olio o"d >tlmo'''. the ",,'ian>1 «anomy. I" the 

'"",I ,...,nt dota " 0'" 2Q [g, .It. <Ih.nol i"dumy' 

III.p~d H S milli"" bo ..... I'ofoil,J 

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547 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.481

Employed Olle, 400.000 AO\criClln~. indud'ng Over 70,00() lobs w~re dlreclly ,nvolvcJ In 

Ih"elh nol producliM prQCe'lll3nd lb. delivery of gOQd$ 3nd .., ..... lces 10 elhanol 

produc~ · 

Added $36 blliion 10 Am.,ira" hou .... hold I"ro", ~ and ronlrlbuled $53.6 bIllion 10 Ih. 

Gros. Doonestic Pmduci. [GDP).-

Thre orr "vor" millio" f.85-<:o",pallbl~ flcxfu<1 VChid",,"" 'he .o. d ,oday .,,,1 

approxlrn;u.ly 2.500 ",tall StaIlO'" Ihal have Invesled ,,,m'O"$ "f dolla ... I" lh~ 'nm.'lruct"r. I" 

sell E85. E85 i. curr.nUy a ... iou! viable alternative II> pelroleum .l lhe pu"'p. R~PI'all"8Il1e 

elhAnol crodll willlo"l "dd""ssin~ Ihe I::B5,,,ue would Milt! serioos u"i"'.nded rons.quenc~. for 

lhllus.nds o("",all hu.i", ....... noillllln. ofnu (".'1 ".h'de owlle ... , and Ihe nal'on', ability In 

achieve lhe volume requir.meM$ 1I(lhe Rettew.IM fuel Standart! cilabll.hed In llIe Enety)' PoUty 

Aaa{2IJOS. 

While elhanol ala f"daddilivt (EIO) i, nlll 'C<lue"1in~ asubsldy. <Iha"ola,au . Itemal've 

fuel [E85).ln lh~ .hon nm,ca"li~ue.lo nud a Illx incemiv~ llle.tabli.h ilS po,ililln '" In. 

'''"rk~ll) la ce, 10 encour.ge exp.ndlng lhe al"",lability o( 'lalian. I"ovidi"g ailcrnallvc fuel oplions, 

and to . ttnw the Rellewabl. Fuel SlancianllO do Its lob. attawi~ E8SIa i><come a self-sustaln.blu 

ahcrnaliv~ fucl, Wllhoullhe cred,r,co"""",e .. wilt lum In . Iand.rd gasoline oplill"'. 

IfE8S Is tloclncluded in Ih ~allernal;v. fucllaxc",dll, He~ fuel vthid< drive .. witt pay •• 

much •• 38 ce nls mOre per Batton. slgnifica nlly re<ludng the demand for Ihe fuct . On Ih~ alher 

hand,exlcndi~g Ihe credit wilh FoSS would only tOSlln. Trea,ury .ppro"'m~lcly 0_8% uflhe {utt, 

exp]""d .Ihnul .IIh>idy, We b.li~ve thl. smatt .• hort-Ierm in"",lmco, wHI make. 'ign,ficam 

difference in Ihe .ucCv .. ofpclmleum fuel all. malivu 

Tnan" you In ado."" far yt>ur sUPPOI'I of lh. don,,,,,Uc blof ... 1 Ind""lry. Thank yuu for your 

UIlIe and ro",ld.raUon. 

S'ne.rdr. 

Mark Oaylon, Chaitand Govemor of M ,n" •• ola 

Terry It 1>"'''''13d. VICe Chai, 

and Gnvcmaro(lowa 

79894A.482wwoods2 on DSK499XVN1PROD with WAYS & MEANS

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549 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.483

mo,>e rhe n3rion forward In 3n energy sc('"\or Ihal oilers ~Iobal export oppor1llllilll'J; and 

IIl<! ~bility to nHxkml1.e n ~eJ:men1.of OUT deetric production infrn,trllClUre. 

The United States has some oflhc bcSI wind r...'"Sources inth.: world. but Ollr lack of 

lung·terlll national puli~il'5 hinders uur ability to dew lop thl'm fully. Extcnding the 

produc1iI}11 ~ Hedil tbis year, nlthcr than del'lying action, is critical to thc ~lability and 

growth of wind manufacturing in ollr stales. A nllllli-ycar clItcnsion of nt1casl 4 y<!o/"!< 

would encourngc invCllllnem of new capital. h\.'lp calaJ~ l.e the export of wind l'lll'rgy 

rcehnulol:,ics and rel:ued producIS. and support the gOM! ol"lncrellSing domesrk cncr!:: 

productiun. WithuuI puliey certainty, investors, de\·cluper:;, and manufactu .... rs will 

'nove proj ects andjob$ elsewhere. 

We respe<:lfully urge Cunllfl"OS promptly to pass a multi-year ~lension of the willd lax 

credi!. 

Sincerely, 

Lincoln ChafeI', Chairm3J1 

and Governor of Rhode Island 

, 

Terry Branstad, Vice Ch ~irm ~n 

~nd Governor of Iowa 

Members. Energ), and Nall.lral Resou~es COllllllillCCMembers. Finane,' Commil1ec 

Me,nbers. I·lousc Ways nnd I>lcan!i Conllni1tce 

TIIC Hont)rablc StCVl'11 Chu, Seen.'taT)'. U.S. DL'parlmenlofEn<'rgy 

The Honorable Ken S~la/ar. Se<;r"I~r;. ; U.S. Departmenl orlhe Interior 
550 

Statement of Great Lakes Wind Truth 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.484

u.s. House of Representatives 

Committee on Ways and Means 

Subcommittee on Selett Revenue Measures 

April 26, 2012 - He~ ing on Certain E.plrlng Ta. Provisions 

Comments Submitted forthe Rl"Cord 

The undersigned residents and property OWn erS 01 the Slale 01 New Yor~ re spectfully submit these 

Co m~na in response 10 the April 16, 2012 Hearing Oil Certain Expirine TaK Provisions. CU. 

comments are limited 10 the Production Ta~ Credit (PTCIlor wind energy. 

hecutlve Summary: The PTe i. ollen credited lor most 01 the srowth In the wind .edor but 

attributing market a ctivity to the subSidy is overly simpliui, and lail, 10 consider othe r crucial 

faclors drivi nll dellelopmeot. When evaluated asaln51 key e conomic and envirOnment Criteria, th e 

cost o f the su b.idy has proven exce"I,,!! and the bene fits 10 American taxpaye rs minimal. If the PTe 

were 10 expire. the economic. of the rlld ul lry would shift 10 Sla tes with renewa ble mandate •. 

Power"markets will ulHmately confront the re al COSI of wInd ene rgv. and p rice it according IV_ The 

overell impact on Ihe Indust ..... would be tar le.s severe than proponents claim' . 

Supporting Statement>: 

High Cost: Since adopled in 1992. Ine cost o f Ine PTC for w,nd eMe rgy has b31i00ned ffom 5S 

million/yur In 199810 51.5 billion nnu~lIy lod~y. The open-ended subsidy of 2.2C/~Wh in afler-Iax 

;n(ome represents a pre-tax value o f a pproxima tely 3.7C/kWh. In many gio~, of the country Ihe 

PTC IIOW equa ls. Of is grea ter th all. th@wholesale pric e ofpower. E\'en ,f Ihe PTe Were 10 sunset, 

taxpaye rs are Slill obligaled 10 cover nea rly $10 billion III lax credits for wind projects buill in Ihe 

last decad e. Th,s is In addilion 10 Ihe SIS billion debt fot wind proj ects eligibl e under Section 160] 

(includinganlicipaled 2012 grants). 

Ineffident: Since the PTC i. uniform aCro" t he country it is highly ineffident, supportIng poorly 

siled developmeOl In some areaS while ,n other a rU S supporting projects th aI would have been 

buill teg¥dles. of Ihe credit. This is true in Texas and t he P;r(ific- NorthweSl where wind capacilV 

e.ceed. tran,mi .. ion capacity and wind i. curtailed'. In New England Ihe PTC likely pay' more 

subsidy Ihall i. nece n ary owin@lo auren ive Slatemandales.Ulllitles'n New Eoeland routlnely 

sigll long·term power contracts for wind at price, Significantly above marhl. 

Other facio .. advancing wind deve lopmenl: The industry in,ists it's a t ri.k of a slow·down withoul 

the PTC. This "lew iBnore. other (rudal factors drilling development includfng state mandates and 

natural gas prices. It is not possible glyen available data to ide nl if"'/ Ihe eXlent 10 whk h the PTC has 

con tributed 10 growlh in the SHtOr'. In fan. demand for wind has eroded recently due. in pan . to 

, Un<r .. ., . ... 1. ZOI2 Cor!&, • ."'",,.1 ' Ol'ima"", hnp,I!>< '""" •. """~.I""/hO' TInsI."b<om", """·"' . .. tii , "o,"'nd-

"'''''lgl''·."b<ommRr'''''''''I!'I .• ~J!.«t W<r"",. n" ..u ~~l j"",, I\t .. ''''' 

, WI"" ~ BIllm, ••• ZQIO w;,.d TK}r""Io{j • ., Mati. , pon. IZQtl) " hnp,II.."d,IIrLI",,/ • • '.m>'.op<r<t,.Jtb,r1-

481o..pdf 

• Io>nr {""" llittff <If' h •• t ."... PrtUM I./>I¥ ~M tI<r<~g >"(kll><l R. loring Ta To . o-c-diu R:J< £rwrll:l (~ Proclu<tk><> FfOm 

"""WI>b '" Sowt~ (10051 1. ~ .. p .. " WWW.!CI.I .... / .... DII< . .... "..ntmlllu ..... ..... _~id 9 

Paee I 1 
551 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.485

stale~ meel ~g their renewable ma~dales. Lower nalural gas priers further reduced wind's 

attractiven,,-n 'IS a 'fuel ",,~,,-,'. The EIA now loreca~ts lIal growth in the wind ,,:dor lor this de<:ade 

regard len 01 what happe", with Ih" PTC', 

Job losses: Despite billions in public funding the wind ~ector uperienced a net loss 0110,000 direct 

and indi,ect job~ in 2010 bringing \~e 10lill to 75.000~ fobs. Most 01 th" remaining jobs .re 

temporary construction positions requiring p"ak levels 01 de~elol'ment V"ar·aft"r-year to maintain 

current le els . Attempts to attribute job creati on 10 the PTC must be tempered with correjjponding 

job losses due to higher renewableelle,gy prlces_ The State of Vermont found thaI adding just 50 

MWs 01 renew.ble energy at higher-than-market electricity prices "had the deleterious eflects of 

reshulliing COmumer spending and increaSing the rost of production lor Vermont businesses' ." Last 

year, rural electriC ratepavers In Minnesota paid mOre than 510 million in above-market enerBY 

prices due to the high cost 01 wind'. 

Environmenlal benellts: Wind enerBY is an unpredictable, variab le resource Ihal cannot be relied 

on to serve load. Its primary benefit is in reducing U.S, electriC ca rbon emission~, According the 

Navigant' . a fOil' year extension 01 Ihe PTC could avoid i n incremental 170 million tons of COl. This 

"best case" estimate i. not predicated on an arlual working Brid reBion, butifwe accept Naviganl'~ 

e,limal.e h~ cost 10 laxpayef"!i is at lea51 $23/lon COl', ten-llme. the 51.92/ton market prke for 

oftsets In the Northe~stern states participating in RGGI! The PTC Is a hlRh-priced vehicle for very 

questionable ' eductions of e02 emi5s;gn~, 

Con~luslon : The key question i. whether th e beneflts of the PTC for wind are worth the cost. This 

20'year old sub.idy it upensi~e. inefficient, h .. failed to pfOduce ne(.job increa,es t hat ale 

sustainable, and the coSI applied per ton 01 C02 is more than lOx the market price of u,bon unde r 

RGGI, The U,S. power market hill undergone significant change since Ihe PTe was adopted, 

indudin! deregulation, It Is not possible 10 isolate the .. xlenl to which the PTe contribut es to wind 

sector groWlh' ". Without the PTe, proj""t economics would shift to stat e, with RPS I'olleles. The 

value 01 renewable crediu might ri,e in response but power mar kets will ultimatel~ confront the 

real cost of wind enefSY, and price it accordinsly. 

I Wlo. , . M Bc~"I ''' • NOli" N" ;",,"lH!n""nl."d~ , •• 10110 ,,,,,ror,,, job c"um., SIne. on1_lob ill t~ . ","" .. tty 

.... ,'" mo" <D<1"i",,'~ ,,, ""' ••• 1ntI ,ho «>" of ~1 .. 1ri<lty, Ih" .... _ ca>nom1< de-otimu"' •. 

• VI 01".;, ~ ,"""'mi. ""w<flOfv.."""", Fl'td in lori/f;(lOOll) 12 

"Up /~ubliae",' ce ... r"""'I o./~t.lM"'s/DP<;'UOWnit .'UOf'.~lOFi!~OIn"lOTMl pc!1 

' W.II W~ j""m.' G""~'" bV (h~ Wjnd [M'j JOU) 

~up:''onIi"e ),<c'''lartlC le/S81000J4Z>lOSZ10nOlSglM)lSl1l6ol 401 0D6l91'10.mmIlmOCl_IOCI!_._ .... j 

, ~" iO n! Co",ulli"&. i"<' Im""ct D/ ~ <'rod«!"" fOJ! ".oj, /)f) !~~ U.s. W.,p MarU I (2011118 

• ,. .... If,. ,u 1>1' .......... no del.il "" new It cI.''''''_ 011 ... , •. $Iudi' :rnu .... >Om .. wlod bUil' wilhOllt '''' PTC Ind 0f)Iy 

_.0 a t "'CI.m "'ol bet>.fl, .,..., • ...., ... 12011-16). Th. UK' p<r "ff ... " """,."'I .~ hli"'r ttlO" $2J/l","" 

Pase 12 
552 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.486

Supplemental Sheet 

Submitted by: Thoma. Marks/Great lake. Wlndltulh/700;t Waring Circle, Oerbv, New or~ 

14047/tommarks@verilon.netn16·947·9350 

Oate submitted: Ma~ 10, 2012 

CommenU submitted On behalf 01 the following residents and property owne's ot the State 01 

Thoma, Marks, Exec. Dlr. 

Great lake. Wind Truth 

7004 Wadng CI,de 

Derby New York 14047 

Tag Price 

Ramona Bea~h, 

Pulaski, NY 

Rich Davenport 

208 Walter Avenue 

Tonawanda, NY 14150 

PaulJ Stoos 

1845 Clillton 5tr~t 

Buffalo, NV 14206 

JceJemiolo 

4898 langford Rd 

North Collins NY 14111 

Daniel D. De<;ker 

8648 North Main Slreet 

Angola, New York 

Charles Pohlm<ln 

West 5ell'eca Printing Inc. 

860 Center Road 

West Scne~a. NY 14224 

Chuck Godfrey 

29 'l'vette Or. 

Cheektowaga. NV 14227·3415 

Andrea Rebeck 

4652 Oak Orchard Read 

Albion, NV 14411·9509 

Alan & Mary Issei hard 

Bl3S North Huron Rd. 

Wolcott, New York 14590 (town of tluron) 

Great lakes Concerned Citizens 

Great Lakes WInd TrUth 

Coalition On Article)( 

lake Ontario Riparian Alilance 

John Hutchins 

Hutch Enterprises Inc. 

7S10 Porter ~C<ld 

Nlagaril Falls, NV 14304 

Pa~e I 3 
553 

Statement of Green Energy 911, LLC 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.487

t, Shari L Meisel, a business tlwncr in Thornton, CO, respedfully urge Congre~s to 

extend the wind enel"gy prnduction ta" credit (PTC) as 4uickJy as possible. 

I was unemployed for 3 ofS years and worked e"tremely hard to negotiated for 

Vestas Wind Systems, Nacelles' cable assembly contradon behalf of Walker 

CnmPOnl'nt Group, Denve r, CO. We w"o that contract and for two years have been 

ramping manufacturing product(on with Vestas, NA out of Brighton, CO. We have 

hired new staff and have many opponuniti es not only with Vestas but now other 

Wind Energy (WE) turbine manufacturers and sub-contractors such as 

transformers. 

My compa ny, Green Energy 911, LLC, stands to grow as a supply chain resource to 

the Wli industry in NA and globally, has~ right ht.'fe in Colorado. bUllhis 

opportunity tn expand won't happen ifthc PTC f~ not e.xtellded and soon. 

In fact the "cliff" of dllWIl turn in business and mannfacturing is heading toward us 

rapidly. Within a fl'w months Walker Component Gronp will have to begin layoffs 

becallseofthe hesil3tiotl of purchasers of wind turbines in America. My wmpany. 

GE9 1 t,wi)] havetu post-pllne hiring. 

Turbine manufacturing is a homegrowlI success story. America has been 311 

emergfng market iJl the WE global industry. Without the PTC we lose this growth. 

No matter who is In WashiQlltoll. I' nerl:Y iijdependellcl' and diversillcatioll is a good 

thing for all Amer;can~. 

Pleasc.1 respectfully urge the committee to take up an exte nsion of the wind e nergy 

production tax credit right away. Dnn't delay any looger. Protect the. m~l1l1facturjllg 

work forcl' (n America, Nooe of us wallt to he unemployed aga in. 

Shari L Meisel 

Owner 

Green Enl'rg)' 911, LLC 

Thorntoll, Colorado 

Account & Project Manager, RE 

Walker Cable Assembly Services 

A division of Walker Component Group 

www.wa lkucableassemhly.com 

Oiren: 720.298.6231 
554 

Statement of Greenline Renewables, Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.488

Grcenline Renewablcs Inc. 

ro Box 379 - 200 Main St. 

TOllchet, WA 99360 

(509) 394-2000 Office (509) 394-2978 Fax 

April 24, 2012 

Gre"/I/illc R",u.'wobles 1/1<' .. "I"",I;,,!; ... illd project del~'loJ1er ho..ed in Tm.e/oel, IVA 

lIrl«eS COIIg'·O.I/O cx/<'lId III1! "'Iml e"agy prl"></II<'liol/ I{IX cr.'dil (f'TCI 0'< qmckly us 1.>OI,.IIII/c. 

Grec"lin~ RenelO"ollles 1m::. /"'5 been ucth'e1y ,,,,',,I,'eil in I/,e Wind En~rgy blls;',~.,s sinc:t· 

19S1. WI' (1/.10 ",ol"k /11 olher I/c,,,''''ull/I' £ nefgJ' I'"de"'·ol".~. r ... " )'1'<1r.1 (lgo Gr<"<!/I/im.' 

Rene .... "t,Ie.... Int,. hod 1511 I:mploycI'J·. "." ,'''rreml)" 1m,"/! ri ""'I'I().'~'e'· olld are fIo()/ "IIre al II>i.~ 

lill/e 1/"'(' "'iII lit! o"'e /fI (',"IIIlilll'" ill r/t" I/,:II<,W(I"'I' ''''lillIe5,' wllholll "It cnergy Polic)" r/ml 

"'ill :JIm", $OlllC IOllg lerlll i""cS!I/II",I$ 111m ll'iiI/w)' o.fUor GrC",,/h,e R'.me",,,bh.'J· /"'·. An 

,-xI"""i!}1! 0(111<' PTe ,"',mid b .. " gtXl</ JI,," 101m ElwrlJJ' POliCJ' Ihis Admini ... traliw. In.·A,.. 

We .<lrOl!g(~ '''8e lhi .• commil"'e 10 immedlatl'ly /(Ikl' lOp <III <.'.\·I~"sir", ,,{,he w/",/ 

e'''''X'' l'rudllNilm 1(,>: ,·,..,dil, 

Kinnan J. Broadbent 

Vice President 
555 

Statement of GreenLink Employment Solutions Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.489

Cb.';s ');(;11 01:; 

:~ .·c"r; ... , \,I~f 'r~ ~hl~nl 

(;rt nLl"k mpIO)' O'~nI Mhll;,,,,, 

(A Division ofCorptll1l1e SHilling S"r'\IIC~S) 

15', MCllIument I{I':W, .,uile j III 

BOlla CYIll~)a. I· \ 19\1() ~ 

1' 611)·nl·I());7 

~!.\!®nbsc».com 

~Iuy 10" ,2012 

To The Hnuse Ways ami ~i<'al\S Committe,,: 

Conc(ntin" lhe Ik~ri,\g. on Certain Expiring Ta~ Pfuvi,;jl>ll$ (I'Te): 

I 1'\!s!,<'ClfuU) urg~Con(;l'eSS (0 ('Xk,\lI (he Prvd\l~l ion ra.~ credit as £oon ~s ~iblc! 

TIw..-rc c~" l:>c II() denying lhal Wind Po"cr is a "in, win. "'in tOr tile Un iled IUW~ of Amcri<:a. 

Wind Powcrcre~les "'ell payin~ long lcnll johs in Ihe manuf"clurin!!-, CO'1Slru~l;on & 10.llislics 

SCCl<II"5. Wind Power creal,os clean energy domcsTically! Wind I>{"' L.,.lc ssc ~ our "...~d lor r ........ ig" 

o il. Wind Power is a key CQlllp<JIlClll 10 rcdlleingcurt..m emission_' "Il;ch will nlll o nly help I~\'C 

off gl<lbal ,,-allt,i"g bUl il also ",Juc~~ harmful p<JllulanlS 111111 Il" isoo nurair, Wilier & Cit;lcn~. 

1 nm a Q,(cn I'ower stalling linn _ mO)t or ffi} diems are in some \lay ClJ,mL'Cled 10 Wind 

Power. The uneenaimy orlhis 1' TC extension ",Iuctanee has be~n JCv:l$tatin g 10 a great 

AmericBl1lrnh,-~(ry. 

1 Itali;.., thull11~ny ",,;,mbers ofCim!!fCSS recci,c cnc:.m,()u;;; flmdin,!' from tbe f,:o,;sil rud industry 

but 10 deny IhlS nlenSlOn would shamerul and un-Americanlll 

SIncerely, 

ChriSTopher Di(jan~i 
556 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.490

m""" '-"w-. .............. _"",o.t.lOCIO.! 

'" '''''''' 

I h~ lloOOt:lbl. 1'.1< Tib<'ri 

Choi"" .. 

S"bo:(Hlm,i ". ~"" Solo", Ik,-,""". M....s""" 

"0 ... " C .. "mi" ...... , W"Y,1IJId 1>1""", 

U.S. 11<.,,;0 "rl<,·pro .. "Wli,..,,, 

\"""'in~l",," DC 1"~15 

Dc:or Ch" n""" Tiberi. "lid I<.nkinr. Mon,b<:, Nc~l : 

n.. Ilonor:oble Rkh",d Il, Noel 

Ranl';,,~ ~krnbc"T 

SIo,",,"" ",'I1,"''''' SeI",11(.W"". Moa<u,,", 

II"""" C'~n",i" .. "" "~ •• rIIl MOln' 

U.S. II,",,,,, "r I(cpn."""!lIli",,,, 

W~hin~I",L1JC 10S1S 

1 h.lI~ )...., fl;>r .110\' in~ \b ,,, " a i'~'," ,,,,' lOr Ih" r<:Wrd I" l '...." """.ltin~ '''' C-'I';,;1Ijf ,", 1"V,;~i,,">-

11'<-'1"""""'''' III. "JII"""'Un,ly u, ,"~n"II.''' , 

G",,,,h ~'11} ii OIl a''''''''I;;. ' of the "ali""'5 1."lng eti>.001 prOOut,,,. .. 1d 5UPpQl\""', We ~nl 

75 Am"';"an bi"r.:r.""ri.,; thai ptod""c u\'or " bill,,,,, g;ollon< ,,( e,l1anol ",,"""11)'_ 0.=11. An..,ri",,· < 

•• hum" ;",1" ... ,. ."".i,,;; ~O billi,"' 'n """"'lmic aeli"'I},. S\'JIII<!'1i"K m,,,,, Ih,n ~OO.OOO ;'>b> in 19 !.I.I ~ 

hy o"'.'i ~ n~"'I} 14 billi"" ~IIOn, uf Amcri;.""..,,,aJl: . ..."o",.ble futl in "'''''' ~,"" 100 pl"nlS O<mS>" .10<: 

'Ol'nu~ , 

A,,,''';,~" ",b.",,1 5 .. "d_ ",ad} ,,,.IM C'''' R"""j<>bi; ."d ~ .. '" ""';,i') "j,b IlK: riM'" bkr\IJ "r'ax 

.00 ~1.lon' c<:"oinl) . W~.>I< th .. .wlJ Mea", Co,,~nill"" "'Pro<! .iT<M1S 'o~~!"l"d ,narh1 

.,-"," . lik. 'as ,,,,Ji!; Ii,. 1' ''''' "~I f'l'flIpS IIJId .dlulllS;' rlh .. ""I - . nd '''',,"''" ctlilftS ,ha, ,,'ilI limi' 

m.r1<<.'I.ccns. such"" bI"di"g th •. impl<ln<nlOlioo "rLIS ond di"",.nlling Ik~ Rc",.,..bl. r,,~1 S""Id'N 

(RFSt, 

h, p<trIicu l .... Wt >«\; ''''' ""lk,. ,ho, ),,,,,",,,h'.,,, """"""<Td,,,it<-K,1h< pon'~ _ Ihshl """. Ill. 

db"i!>."i,", IIr Ii~"id , .. """lIto,i"" (olel. is a .,..",i, ~ onaoi:eL o<"",,'"ed b\ Ihe oil ind,oM/)'. "'ex r "", 

p"mr> ~i,~.1>: «IR>um(:f"'"", el"""".,,~ flW"P b)' .11""in~ tr.:nI I(J:""""" 1\«'''' ...... "'''''' .1l000.bl~. cit<u ...... Am,'ricat> mod< '1MnoI. .... ",,,,,Ii .... dinicr. r,w'S"";1. 

We """Id""" ,II< Coo'm;"",,'o .. "end and ""Jdifrlhe IIhoma!i,,, """IiJ1jllnf",,,ru<:(Ur<. r.~C'Mi •. 

Thi, Ill)( cr<:<!it neil'S cO\O' Ih~<v"I or.t,tmo,iw r,,<:Ilng "'Iulpmenl. ineillding Fie., P""lptlmro>. I"'is 

impo"u",. cr<:<!i' •• xpi,e<l ., "'" 0.'1l<I ,,1'20 I !. ond .... c ""uld .. 4: f.,.. a ,no l,'.y""'" ,",(,.",i<)n ,,, pro. ilk "-n.,,,,) r.,..I\,,,,,,, i.'-<slmenl. I'unh ... ". """,III clIllcC,,,,,,,,i,,,,,,~, """ng.,h. "".,,,,,, .. 1 "r.'iI"""I. 

gi"ng. fiox 1'",,1 P,""p" I"" .. ",~ 1"'.Irn~n1'" I1~S poon",. TIli. 'a, i"C<..."i,~ ~ "'" ~o 10 "'" clllID<ll 

;.-.JUSlt)': rotbc .... II i""' ,,, r",,1 M~lI"" an.! nell" tho.~n lio ...... upgrade'S.1Id dUlIl£''l' 1!Ilhci, mtioil-

>laol"", '" on"" '''-''''n1<tS a t"",j~ ., tho rump-
557 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.491

E~ •• "ol is 001 lhe<H,ly altem.tive f"ol that ~ual fies fur !hls, .... J,t. In """I1£<. Inl. credit i> t,'Chl>l>l~ ' 

rltuor:ol. Other ottc",",';,,, fod, !ha, quali!)' r, .. !hi; "rt"ilit.re!h_ f",,,, n.,"",1 gos. liqucf,cJ 1I'-"Il"Ulo"", 

IP'- h.l'd ... ,¥.". el«lri<il)·. liM5. ,,.. dle:<.:l r,,,,1 hl .. "b c<Hot.i"i,,~ • 'ninin",,,, ,,(20"-, biodiesd. !"he <1'I.,li' 

hod ro" .... .., u~ to 10% .(11", in~t"tt.ti\", <:<><I. not ", ,,,ct<"<l $)0.000. 

S<c<"'d. 'w ,,"ookl :.sI< III<: C",,,",i,,,,, IOj 'PI""w • I""f.-Iern, .""",i",,,,f d," C.ttuk>sic Elllnnl>T hx 

C" ,<lil. !:M""d ing!h. «tt"l",i" ""oJil "itlju"'p->llrt "1""",,1 prod""I;"" I",," n<W r..ru.."",h. rhi, will 

~i"c I'i~.tcd, ,1.1.....01 fi nn$ lru: bu;i"...,;s c"".inl) tlo,<:d<d '" plUod clII..,ol m.\k rN'" Ih;uII> li~.""", 

'"",' .... ' " hchS'""-,,> ""d "'''''ioi".) w:l.~c . The 'a' "",<Ii. "ill fUI"\h<, J ..... "lop"'''''1 Ojf ccllul,>s>c "'hanoi :.nd 

coold "",.Ie ..... ' jolt> in ",'CI) sl.l<: in the ""'till} - ""C" "u",id< "rth~ , ...... iti"".1 ,om·lI<:ll. 

We.", no".. """,h &""'" IIlliI in til<: "orrenl n ..... 1 <i,,'ironIMn'. Io)l)g.h dlOicc:; "'.~' be '«iulred. Wt, 

w""ld ""'" u.., 6"", In entrg)' WlIS lilt Ii"" In l"<liwIl.ril)' .... ,,,,,,,,,,,nd an . ,kI 10 the V"luonttr;' f:lltannl 

,.;,., To, C",diL or VEErC. Th .. kad i><.. ",,1t< nl',., n,c.~,,!,,'d C"t'O)' 10, ".,Iit} afT<"<ti .. ~ lbe<1""n(~ 

il\Wl)lr)' ,·,pired . , Ih< '"Jld "fl"'l ) .... , an..! " " "'" "'~ """ ing Ih. VUn"C'3 ",,,,,,,,01. 

I" d""iog. "'. a ... ""<~in~ 1o, rol i\."} to 8i,.. «""urrn. ...... d",i ... , Ih. pump. Righ' .",11 .... /o.,K>I i •• 

m"," .rr ...... hl" mWor r""llhan n·gul.r l!ll5'llinc, ..... "ilh "'" obilil)' h),,,,,,.,..1e bead '" 1M:ad. "" r.d 

.lh(Ul{>1 will ""in. II""."",. \Ie lock O«~ IOC<l!\loUm,"",. E"'~""ln8 t!le><'IOX i""""li .. o ,,111 _II,,\\, III<-

'-1h.ana1 ind"<t~ trlC"",,,,,,,, '''' A kwl pl.);1\I! fltld. " ..... ,. in h~ """" ... 01,. ",1" !h""PI"»1lU>ilY lOr 

~<>Od PO) '"~ job, in s",.U «on,,,",,ilio; .",1 ",,,,I 0"''' >cross lit. ' ..... '''(1)'. 

Sincc",I)". 

Torn !lui< 

CI,D. URI"''' ln~ 

m .... " c ...... lf_."',_IOS.I'''_04_ 'lOU S_ ·.· ~~ 
558 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.492

Title of Hearing: Hearing on Certain Expiring Tax Provisions 

!, Steffen Kosi •• CEO 01 HaHo. llC in Elberton. Georgi3 • • espe<:lfully urge. 

Congres~ to (u,t9!1d thO'! wind O'!nergy production tax credit as quickly as po~slll _ 

Hailo llC .• Is a maF'lufacturer 01 mechanical tower components use<! iF'l the wind 

energy industr)' Our product assortment Irdudes pl a!lOfm~. bfae.ke\s. gua,d 

ralls and ladder systems. as well as safety eQuIpment Includ,ng servIce lifts and 

fal l arrest systems Hailo LlC has recerltly" relocated from New Yolie. to Georgia 

due to the continuous growth in this induslry. Ou' strategy is to c:on~nue to grow 

the c:ompany ""'ttl the high demand lor wind energy products aF'ld create 

approxImately 200 JObs here in Elbenon. GA 'Mlhin the ne)(\ five years. We can 

only do this In the e~ent that the PTC gels extended We urge politicians to 

support wind energy and the resulting contribution Hailo can offer a~ a sigrjifreant 

labor force in this community, as weH as support expansion lor the increaslng 

demand of wind energy. Hailo believes in US manufacturing and is fully 

committed to our role In providing products the growing US market demands 10 

meet their wioo 8!1ergy I)8"8ds. 

I urge the committee to ta~e up 3n extension of the Wind energy production tax 

Cfed~ right away 

8esl Regards, 

Steffen Koslr 

CEO 

" .... l~·, 1)<I).M ..... oo.!. ,:'0<' .... . _"'" r ..... I.lI>t"""w,. P" ... ~, 

........ )(OUSlAJoOO. I ........ ; .. 1IlIIJIl....oo. "" .... .tIt.) '" 

,..., 1 01"1 
559 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.493

Organization: 

Name: 

Address: 

Phone: 

Contact: 

SUbmitted Te~ imony o f Ih~ H~rve5l he Wind Network 

5ubco mitt~~ on S~ I~ (t ev~nu~ Me ~u es 

Hearing on Certain [~piring Ta . Provisions 

May 10, 2012 

Harvest th"- Wind Network (~ N) 

Miranda [ilis, Qirector of financ,,-, Harvest the Wind Network. 

15477 US 54 HwV Greensbuli. KS 67054 

6 20·723·]570 

Miranda Ems, Director of finance, HarveSlthe Wind Netwo ~ 

miranda,ellis@harvesllhewindnelWork.com 

I am Mirand3 £llls. Ih Oireclo' of Fin.nce 01 Ha .... e5tlhe Wi!ld Netwo.!t. I $Ubmltlh~ teltimonyln that 

cap"cil'(, 

Ha .... elt th e Wind twor~ II a natlonal ~a~e. In the sales and rnSl.lI llatlon of diSlfibuled wind enerBY 

prPJect •. 

"Oimlbuled wind" in.olve. lI,e USe ollypicallv ~m ller wind turbines at home., I;ifm •. busine.", •. 

and I'I'bliC f;KlIilies,o off·lel ill Or a pOrtion of on·,lle enerlV conwmplion a. well as projects With local 

ow ...... hlp. or "community'" wind, 

Distribuled wind i. a dynamic and irowlng segmeM of the "'new.b~ energy indUstry. 

Distribuled wind poweris ollen owned and u.ed bV energy co"'um~'! 3t or nur Ine site 01 

~ene'3tlon. ich muns' 

o Deploymenl of dislribUled wind power can reduce tire need fur new ~ntrol"ed ~ener.tlanand 

l,..n.ml,,10n f~dlit'e.; and 

o Local n~esto .. help drive localized emplovmenl and economic ~nell", 

Oinrlbuled wind projecn ollen ,.Iy heavily onth. Investment r.. Credil (11C) 10 financ. thet( 

proJe"s and in'tallation. This is t>ecal>"', 

" Many Aenewable energy Inve510r. cannot ta"e ad"antage of tl)e Production T.~C.ed t (P1C) unleS! the 

"nerav aenel.ted f,om that PIOJ"-<OI I$ $Old 10 a third party. Because di<l rr bUled Ken~,alion is desi&ned 

to be COn'"med on·.it .. and i. ",Idam >old to ~ third party PTCs . r .. nat 8.ner~lI y .vailable to Imall wind 

project develope ... 

o The PlC Can onlY be uled toollset p_31\!l:e In,ome. lhisfe3ture generally does not impetle large. 

In<lilution.,lnve<lor •. bo!c.use thev routinelv all'~ slgnlfrcant p ... iv. income that can be offset by. 

PlC. However. becau.~ mony IlOtentlallnve.tot, ,n .mall. communitv or di." ibuled Wind project. have 

lna equ~le orno p .. slve Income, tneV .re pre.:luded from laklnS_d"aMaSe ollhis lax credil, making 

the rTC m,,<.11 mO re allr3C(l"" and valuable 10 tne d(lttlb~ ed wind InduSlry_ 

o FinaUv. and relaledly, in order to fu lly r .. olin n~ .illllfka nt multiplier elfee! of .moll. disulbuled wind 

projeds on Ioc~I «onami •• , and minimize anv Con~"", 10 new wind project •. il is ideolto de.elop. 

broad pool 01 local investors. Iitnev are unable 10 ulilbe t~. PTC and I~. ITC I. aUowed 10 upire, Ih i. 

financial :tod persono\l JUPpa" will not malerl.lIl. and projects W, II not get done. Jobs will bt lost. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.494

Renewlnl the ITC for ~nd·b~led wind power i~ alr.o J m~tler of ~~rlIy ;In" fiim,,". 

So~ r photovoltalc projeclS of an~ slle are currentl~ elili ble for an ITCth rough 2016 and are widely 

und in dimlbuled applk~tions. 

E~tendlni the Il( for wlrtd !"'e~8h ~O 16 creale, a le~el playtni field omong cempet'n, renewable 

leohnelogle, and aUews the ,"'tome' to determine the OlIti'l1alt...:hnoloIV ,eleclion III< a gf""" 'Ite. 

Hinerv 

8TI Wind fn",gy Is one 01 the ",any ,ucces.Slories 11)~t wa, born In Il)eMterma' h ollolal d<!'VOItalion. 

On May4!h, ~007 , Grl!'ensbu'l, kS was complelely d~meved by one 01 the "Ion pow..m.llOfnados 

ever documenled. AlOnl Wilh every elhe, businen in Greens!)urc.lhe tom ado completely dellroved 

thedeal""nip, all of itoln ..... nlory, and lhe larg"st employe, In lown. The ,maU 'ioulnw,..;t ~an'.' lown 

r"sollred 10 rebund as Ihe "gft!enest [ilv"' in Am",lc,.led by Pr".idenl Kelly ute. and Gelleral Ma ... ge. 

Mike Ene., BTl Inc. wa. rebom, and Ihe bu,in~ .. opened wilh a MW addilion, BTl w rnd Energy Lie 

BTl Wind Energy formed The liar" .. t Ihe Wind Network of dealers 10 .ell, servke, and .upporl wiod 

""e'iY producu aero" NOMn AmerToa . n,l. nttworl< wa. ' ''Med 3S 3n f!ffor! 10 <how Ihe wood whal 

renf!wa~e "ofrgy Gan do for loca l bu,lness, nome5. schools, hGSpilal' lind many more, ju.1 as it did In 

Green,bu'g. The Ii""",,, Ihe Wind Netwo.k bell<!'Ves in implemeOllnl wind ene.gy elfetlrvely 

throughOul NOM" Amerie.. ~nd bringing Breen ""onomic beoefil' Ie 10",,1 communltiu. 

About HTWN 

H.,..,e,t Ihe Wind Nelwork (HTWNl i' comprised 01 13 IndePEndent dulel a roups Ihrooal\.Outlhe 

United Siale. "nd Canada who pro"';d ~ wind energy .olutio'l< Irom .esidenllal!o community wind 

proj""t •. f ach independenl de.ler group h~' dedicated wind ' I",cla li." and \e<;hnici~n, lrained and 

,upported bV H.rvestlhe Wind Nelwork. Servioe lraining elfo." a,e .uppo'led by our equIpmen t 

pa.lner, In partner,hi!' with Io<:al communlly ,ellel"'_ ["II awa rd winning HTW/ll dnl e, lin been 

e""bllshed .nd dollll! bu,ine .. In h~ir I~I communitle. fo'.n averaBe 01 SOye.". a.momer ... rvice, 

,,,pport and lovalty are Ihe nelworks' 3mbilion, ond goal •. Ga ining momentum very qulci:.ly, HTWN 

<urrenlly hu In.lalled .nd i> >"",icing on, 11S lu,bifll!'. Our nationwide pipeline I, In nee .. of II 100 

proj~cts ranging in ,I,e from SOkw 10 IOMW ,1~led forin'la lla!!on du ring the nnl JB mOn1~'. PI~~se 

vi,1t our web'lIe at www.h .... e.tthewindnelwO!k.com. loviewln.ta lledllfojeclS and currenl proj"'t, 

under [en<lfuction. 

Conclusion 

You c;on iee how imlKlninl ~n UlenSlOn of Ihe ITC ~Ietlion Is 10 our network .nd end cuStOmerS 

th.oughoul th~ United St~t ... fo, Ine 'u,,,,,. staled above. We em:O!".ge the Hou<l! Way, and Melin, 

(omml"ee 10 "ppr""e ond 'Ubmit 10 Ihe I~ I flou ... of R~pr~<enta!ive.Il'£[,lation that would ... tend Ihe 

§ 48ITC (In",,"mpnl ra, ( redill ~le'llon Ihrough 1016 lor wind pewe. projec\< of all ,i,e •. ElIlen.d[nB 

h~I1C elect;"" will support a I.", <ompeilil"" ren w~~ e energy m.rkel, encouroge tec~nol"llY 

ad"ancement, and pr""lde stabllir, to Ihe dlj!ributed and community wond In du"f)'. The ITC election 

e.,en,ion will leiler ene-rgy Independence for rUr;l1 ~nd l(I[al communi lies.. dr;";"" 10Cili and national 
561 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.495

""onomie growth and j<>b crea tion throughout the United Smtes. We. belle~e In the benefiu 01 wind 

e nergy and we beli.,ve dl5lrjbuled wind e nergy '. our lutu,!!. 

Thank you again I<>ryour lime ~nd C'OM id r~tion 01 1!>l'Se eomments. We look forward t<> the expansion 

of the Amerkan wind Industry and our Joint ellort< to devise effective policy. 

Sincerely. 

Mir."da tllis 

Director of finance 

HMvest the Wind Network 
562 

Statement of Heather P. Johnson 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.496

/, IIC;Hllo!r P. J,'/","m, I'rojr,'1 Coordi/WII>r for VI'.<lru· i" Brig/l/Q/'. CO. "'~IJi!"ljilllJ' ~/"!!.i.'. 

C,msf"t1S' IU talc/Kil/", ... iml C""'IO' ,,....,I,,,,IiO'l lUx cn'<li/ (/'TC) ,,,. 'II/ietly (I'·,IO .... /hle 

Tit.! PTe Ur;''''' hil/iotU of dollurs III I"';Wlle illl'rSMI<'III;II ham~gro" n ,Imuk,,,, 11'111<1,,,,11''',. 

"'H"h )'"".. I hu1'<' ",,"'" ~'I ",ljiU"~l\ ,,,.,,,. ~'Y 1",,'Sc ,..,.iluli:" my ClJllIIII""il)" brlll,;i'l.I: III 

CQI/1fr1~I/(!IJjvb$ ,Ujlfsl. tIIIlI JIIi'lIJ/cJk·l1f< .... jQbJ; III 1/'" 10llg "~J olld ge,,,,raliIl8 /"i"" 'IIIIefi>rollr 

rom,mmil)'3r/oQQJ., ",,J "o~pilol:s u",.,.lk" lifolin,,, ofllll' project. III.'r~osing II,.. 1I/fI1I"'" "fpo""'" 

II~)I "'". ,'t)"IIII)·Il." 'sjn>/fI de"" Il<)m"~:,.,)"" , "iJ,),",/iJI>I~ """"r-t'C$ 1$ ,m <'X, ~lI",,'lhi"/!.ff/l" II.> /(; 

dU - II11'/'lois lUX <"rt'dill"Q"/(~ un ifJI"',,'i''II% 1/11: "'I,~I ;IIi/1I11I")' 10 W/Ilill/W II)/Io}I<$/III/Il. 

lleoliw,l'. Johnso/l 

1:.;}17 O"m,. [Ki''I;', 

1""'f.",,,,,,.COIlIWIJ 
563 

Statement of Heidi Topp Brooks 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.497

"pr1i24,2012. 

To thl.' Chair, Ranking Member and Ml.'mbl.'rs of thl.' House Ways and Means 

Committee: 

RE: Hl.'aring on Certain ExpiringTax Provisiuns 

DearCommlttee: 

I am writing tQ respectfully requestlh~ t you e~tend the wind energy pr!)dOt liun Ia~ 

tredita snon a§ possible. I ask this as a concerned citizen ofa stale that suffers 

greally from th.- pollution g~n"r.:llcd by the very dirty, coal-fired San luan 

Generating Planl in nonhwest New MexiCQ. While carbon-based energil.'S have 

benefitted from government subsidies for decades, new technologies that could save 

lives and money In the long run, such 35 wind nnd solar power, need thats-ame kind 

of sustainl"d support to move us to Ihl.' ellergies orlhe future. The public health 

benefits alone justify subsidies for clean energy. 

New Mexiro ranks vt'ry high among the states for wind-power aud solar-powl'f 

potential. Yet we lag behind in developing these resuurces-a wa~ted opportonity. 

With incentives, we could not only be instrumental I" supplementing power for 

oilier slates in our regior~ we could replace our dirty-energy production, saving 

lives and creating nl'w lubs, as well. 

Thank you for your con§id~ra lon of my requl!SL 

Very truly yours, 

Heidi Topp Brooks, I.D .. M.P.H. 

4280 Ind !~n Spr!ng~ Or. NE 

Albuquerque, New Mexico 971 09·1912 

505 220-3330 

!~'i" itOPIlQl'po_h@rnac_r",n 
564 

Statement of HK Payroll Services, Inc. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.498

HI( Payroll rvlcel, Inc. 

1345 J.F.K. llood, P.O. Ball 3310 

Oubuque, IA 52004-33JO 

(563) 556-0J23 

smay@/ranAamp.cam 

Hearing on Certain flIplring TOll Provisions 

Apri/ 14, 2012 

Dear CommittE'€' on Ways and Means· 

We at HK PayroilServites, Inc. (HKP) .r", writins to urs", you to ""t",od tile remaining Work 

Opportunity h~ Credit (WOle) categories tllat ",. pired at tile end of last year. TheS(' ta. 

provisions, whlr n benefit a wide range of la'paye,.., ioduding associations, businesses, and 

Individuals, are e.tremely importanl lO U.S. jobs and Ine broader economy. 

Willie Ihe vow to Hire Heroes Act ex:ended the veterans catecories thro ugh 2012, thE! 

categories lor people IMnC In dlwessed communities, at·rlSk YOlltn, disabled workers, etc. 

eKp[rea at the end of last year, InJectlns more Instabihty and uncertainty Into the economy and 

furt her weakening confidence In tile employment market pl<lce , Additiona lly. not extending 

these proviSions will result in a crushing ta~ Increase to employers who have Incorpor;l\ed 

WOTe's public·priva.te sector partnership into tlleir IIlrins practices. 

Moreover, the el<l.ension 01 the expirtd WOTC categories should not be delayed. Emplovers 

are still giving forms to new nlres and state employment OIli'l!5 are stili collecting WOTC 

information. While we are hopeful that the tilK refor m deba t!! 'e5ults in policy that is falr, 

efficient. i1nd enWur~Kes economic growth, It Is critical that lhe current ta~ Svstem provide 

ce" ainty in the iotl'fim. Additional uncertainty isno! ~ recipe for improvins confidence in tllis 

ewnomy. 

The ~(ent p~sslng of the VOW to Hire Heroes Act demonstrates that tne effectIveness of 

WOTC is 51ili recognized on both s1des of the aisle. even aner fineen ye~rs in operation. If the 

(eU 01 the WOTC program is discontinued. it slloyld be done in an orderly way that allows 

emplO'(1!f5 to anticipate the change, after Congress lias gi'lt'n due consideration to tile issues. 

PI~a5e {onsider the followins testimonials from OUr TnCredl!S departmenton how thl!se 

'redlts benefit our clients: 
565 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.499

Multiple Clients ho~e expressed concern over the eKpirorion ofthe wore program, This program 

is a huge help to them. - Krls H, 

In the caul'll' a/conducting buslnl'u/or HKP WI' make courtesy calls to our cfents. These mils 

help to addreu ou, CU"nfS' concerns regarding WOTe. During severol colis, I ~~ perienced ciien~ 

I'JIpres$ing concern about the renewal a/WOTe This credit has helped many small businesses 

who employ QUalified employees keep their bUJine55es operational, To lose that tax credit could 

be devastating to some 0/ our clients, - Dione Ii. 

rhe work opportunity taKeredit program is a good tiling/or small companies to have to keep 

their buslneu success/ul and prafitoble; it encourages busine5Ses to hire ma~ people, helping to 

get them off unemployment. - Amanda G. 

The WOTe program is very importanl for our economy. These Vriluable taK credits help our 

busln"55"5 10 stay profilable and the""far .. kN'p peopl .. working which k .... ps ourunemploym .. nt 

num/){'rs low. Also, fhese 10KcrI'dits are on incentive/arcomponies to hi;e indiViduals fhot fall 

into Ihe many target groups and keep them employed. - Linda 5. 

I have heard frequently over the yeOI'lJram au' wore elients rhar these credits are necessary 

for their company to survive and expand, thai these lax credits allow the company 10 add 

additional employees. By nal renewing this great taJ< credit program would In essence be a lax 

increase 10 our clients, something they connor afford at rhls Ome to theirrampany in this 

economy. - Judd O. 

Working!or the Tax Credit departmenl 01 HI<P, I halle seen many of ourciientsjlo!Jrish because 

0/ wore I think It's ;mpartant ro eXlend WOTC /){''''!Jse it help!> al/ 5i'es of bU$in~ss whether 

5mall orlorgel - Kallie W, 

The wore ""dits Our cUents , .. ,etve are enentiol to the success of their b!JsifWll and rhei. 

ability to crear .. mo.e jobs. Nor only don this bent:fir rhem. b!JI the ewnamf as well. - Sharon 

K. 

I know tllot many of our cllent~ especially our clients witll smo/ler companies, have greatly 

benefited from thl! program. A5 you may know, many wslnl'5ses have struggled In this hard 

economic time. Ther"fare, the help tllal businesses recf'ive from this progro," has hel~d them 

out tremendously. This progrom doe>; not only help bUSinesses bul the peop~ working for them 

by allowing more companies to hire mar .. employees. Witll more busine5'les thai are able to 

hire and more people working, the belter the economy has a chance at recol'f'ry . • Erin M, 

This program has proven ro be a great bridge/or employees wha are trying ro get off 

government assistance and the employers wha can help them with this goal. Manv of our 
566 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.500

clients have been able to offer additional bent'fits, woge5, and other worlf/orct' improvements 

dut' to the savings wore h05 provided them. One client h05 bet'n able to improve their bu5lnl'u 

modt'l with thl' hl'lp 0/ this program. As a result, rhl'y are now scheduling annual componywide 

meeting. for their 221oeotions to srrotegize l'ffediVi' business proctice./or their nearly 12,000 

annual employee .. - Milfe N. 

Tile program is very lIelp/ul to our client •. TheIl' credit5 allow the employer to provide mare jobs 

and extend benefits ro their employees. - Christine M, 

As a tax Credir Cansulront. I worlf with lIundreds ofbusi"e"e5 every year who rolfe advantage 

0/ tllis program, These businesses ~ove t} g~er retention rates, can pOI' a hIgher salary to their 

workers, and impact their rconOmll'5 throug~ t/!Is (Nogrom. Thesl' tall provi.lians 0150 directly 

impact Ihe unemployment roles in their communities. Removing thl. prorJrom would have a 

significonl negative impact on busine55es. Businesses who hove taken advantage of t~t' WOTC 

program count on t~t' tax benefit5 an /ht'ir fiscal yt'orrerurns. Pulling thest' impact/ul bent'fits 

from tlleir businenes will have a (lerJotive resuit on both employment and t~t' economic climate 

o/r~eirloeol communities. The VOW oct beIng paned recently shows the impact o/WOTe. 

Howt'vt'r, target groups Off! bt'ing It'/r out if we art!: nor able to continut!: tht!: wore program. 5S1 

incom~ rf!(:lpif!:ntS, disabled and underprivileged empJayt!:t!:s and t!:mployees who comt!: from 

disadvantaged areas are allie/f out if the WOTC progrom is nat continued. Same of these 

target groups are the most widely used of all of thl' wore progrom. This makes nat only rhe 

business counting on rhese credits at-risk, bUE any of the employees rhot/oll into the torger 

groups will have ° more difficult lime finding work. - Mike 1_ 

Mon)' of our client5 ore oble to use the to~ provisiOlls tafinonce theircompony r;rowth, imernol 

ond external. As)'Vu are well aware, a growing business is onea/ the/oslest ways ro a growinr;, 

recovering economy. - Emily S. 

TlleJeedbocl< I receive from clienl.5 on why the W07C is 50 important i5 a two-fold opportun,ty. 

First, It is ° very low risk alternative ro inCfffDse bottom line performanu in todoy's struggling 

economy. Sewnlt clients can dirttt their hiring towards target groups who might not ot~erwlse 

be thought offor employment. The return can be equally benefK.iol to both mom and pop 

companies and large corporations who choose to employ low to middle clan applicants whilt>ot 

tht!: somt!: time boosting our blue collar work force. - Shone B. 

We urge you 10 include the rema1nins WOTCcalegories in the payroll taK cut bill, preventinc laK 

lrocre"ses on bu.irw5ses, farmers. workers, ,md erotire commuoities at lhisslage in the recovery. 

Sincerely, 

The Ta. Credit Department al Horokamp Krueger 
567 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.501

HKf Devdo~m~nt) LLC 

W;,vs and Muns Committee Ap.il30,1012 

US Ho~.e of Rep es.entati~e. 

Washington D. C. 

Our Committee Memtlers 

I would like to add mv name to tile many Irom around the United S~les "'gln8 you to 

extend the Production Tax (redits for the Wind Industry. Our firm 0 .. built oller.llion, and 

marl'llen."ce bu;!dings lor 3 number 01 rt ~S. Tke jobs creJIKi by this portJO<l of the wind 

energy field ~metimes get forgollen. Construction jobs a ' .. grut. and ongal,,! work Is w.ys 

needed to mainta in the equipment and keep il funning 31 p!!'ak elfkiencv. Manv voun~ PI!'''l>le 

in our a re a have <hosen this aSa co .... " ' and Ioul colleg~s .re offering degrees, to e"sure we 

have,killed and qualilled people fUMing Ihese huge Investments, Ar" we prep"ed to tell 

them It ha, an ~en 3 hoax? 

I realize other established Industries, SUGh ~s olt, coal.nd natur~1 gas, are doin8 

"verythlng in their power toscullie new le<:hnologTes_ It wasn't lar In our countries' put Ih" 

th.,.,. w.ore also groups 01 fledgling companieslOO\(ing 10 bener Ihems .. I ..... and the ed ~r al and 

nate governmt nlS w.o, .. are still aiding and subs,diling their .ctlollles, We as k lor a level 

pli'/ing fI~d . Wind's cosu per KW ooMlnue to imprO'le and Ine Wind alwavs blowS lor tree. II 

d""sn' , have any harmful effects on the environment. 

Th;, needs to be addressed immediatelv_ JUII a< a lacto!)' d"".n"ltarl W;Ih Ihe turn ot 

a switch, net doing something noW win lead to shut downs 01 thousand. of job, thai won't 

come back just beause you do methin8 later. Our firm will be IIfutlv "ffected should Ihe 

wind energy indullry continue to be a bon kici<ed back and lonh on political whims. We. need 

mOre cenalnty. The fdea 01 phased reductlon cl.ubsldies holds much promise. Please do 

eyerythinR you un to not puilihe pluS on such .... important part of Ou r society ind economy. 

Respectfully 

Tim Fredrickson. Manager 

605 East,J Slr • • I, Forest City, IA 50436 

Tel, 641·590-0517 Fall 641 -582-2013 
568 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.502

HOLLAND 

CONTRAC1fNG 

1400 Sooth -\1h S{~ F(>'"cst City. Iowa 50-\36 "l. 1_58S- ~~ll_ _~ b-lI-585-55&8 

Ways ""d 1· .. lrans Comm;!! • .., 

US flouse of R~n:senla'i\'..s 

Wa,hinwon D.C. 

IkIIr Co,mn;n"" M..,nb<rs 

Al'ri130.2012 

I woold lik. 10 lI'\kJ my "am"'IO 'h~ m:my from arntiM ,he Un;lro S~l"" u.,.i~ 

}O" 10 ""rond the Prvd\lC\ion T"" Crod;!! fb,r tile WIIld Industry. Our tim. ha, u..nchdl 

eleclrical cable alld done "'"" )' orner types "f"ork at 3 "umb.,. .... ofsil •• lhroughoUl Lhe 

id"'I.'SI_ We can 1,3\'. as manY'5 25 "npll~.CS "or\:ing O<J Incs<: pmjei:1$ at any oro: 

lime. Th~jub> c"'~led by 11\;$ ",ll1il)D "r,lk' "in.! ene'llY field ~me1ime. ij:ct r"ri,Mell. 

Cll1ls,,,,,,,ionjobs are lP"a~ and ""~O;'1g work is always Ilredcd 10 main,.in the 

'><Juipmrnt and k""p;1 runnins at pea); .mdeni.)'. Many youns p""'pl~ in oUr • ...,.~ h.w 

crn,<;t'n Ihis a. n can",ralJd I""ul <oll.g~. areuO"o'inJ,l dcgn~ •. 10 Cn,,,,,, 'w haw skillw 

and qUJlifil>d 1""",1. m.minglhe"" huge in\,~lIne,,",. A", wo P"'parro 10 lell ~lcnl il has. 

I t>e"n~ hoa~? 

I ","li7.e o, hc... "'lli)li!rw,.! ;nduSlrics. j.U(·U ~~ uil. c<",1 and n:uurul ~"", "re d<}ing 

e""l)lhin~ in th";r pow". 10 ..-unle fl<:w I«hnolog'r.;. II ,,""sn'l lar in ourcQunnir.;' I"UI 

Ihat Ihe}" ,,~ .... al'!iJ grouPI 'If l1edglirtg compani"'l looking 1'1 benor Ihen,,,,,lve, and Itto 

tederal and OIoto j,\oven,menl. Wen"" an> .till aiding ano.! ,ubs;d;zing Iheir ""t'\"ili ... We 

ISk for 81~wl playing fidd. Wind ',c""s pe .. KW ~"l1Iin"c 10 impro_eand ~ ,,·ind 

,ays blows for 11«. II clQe\Cn", navt IInr nal111 fu l .IT,...,t$ "" \.I.I~ "",,;mru:no:m. 

Thi. needll to be add""m:I immtdimdy. J"" as a (""'01") d""",,"'1111 WiLh the 

lurn ofa s"ilch. not doin8 som..ming now will lead loshut dO"TtS ufllwusands of jobs 

that " '<,,,'1 Nme OOckjl.W bo .. <~use)oo 0.1" wmolhlnj; late,. Our linn "ill bo ~Ily 

3lT""tcd should 'ho wind cn<"'lY ,nolusuy cominuc!O br;, a ball kid..J b..,k and f""h 0"' 

polilical whim~. We noed mQre .mainl)'. The ida of phas<d rTductlon of!ubsidies 

hold. mIlch promise. Ple:uc do " 'oI")1hingyoll C3n 10 nil! p"lliho plug oomplcldy un 

such"" i"'J'IIr""" p:trt oruur """,ely ~nd "'·OM",)'. 

Tim Fredrid,,,o,,. Cunlroll~r 
569 

Statement of Horn Wind, LLC 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.503

JimmyM.llom 

Hom Wind. I, LC 

119 Virgie Ln 

Windlhor.;l. TX 76389 

omC<'o (9 ~O) ~2 97S1 

hom. \0. inJ@yahoo.com 

Hdlo. my name is Jimmy 110m. I am th~ I'n.'l\idcnl of Hom Wind. LLC. My company i$ b 

r~mil)' IIwncd bU5;m'ss and has ilcen in businl'Ss fill' 5 ~~ar.; n"w. We ur~ located at 219 Virgie 

Ln. Will.Jtl'\Q,.,;t. TX 76389. 

19m writing this 1~llcr in suppOri of til.! cxt~nsion of II\.: l'roduction Ta.\ (redil ~s part of 

Amendment 1812 "rthe TI"~n sportation Bill. Without the Prudoction Tax CI'I.'<.i it, my company 

will not be abJ~ 10 de"eiop wind famu in this current man:ct lind two filII-lime smallb sine~s 

j{)bs will be !!lIcrificc.s iail.mll with 1005 ofthous,md of uther Rcnew3bl~sjobs in the USA). This 

will increase the "vcmll unemployment whiCh we do not need at this tim" in our country. So 

plem>e suppan" n~~cd and "ery prudoctive 13X credit prolll1lm that has be~n instrumen1al in 

creating. and mbinmininl1 US jOM and also illfrastruc!Un' l1JO"'th in our !;1C3tnation. 

My cumpany. Hum Wind. is all early and middl~ sta);t wind develope.'!' that is o",ned by Jerry 

Hom and his four Sl'm and One, daughter. Jerry Hllm muJ myself. Jimmy H"m. run the blls;n.'Ss 

and h3ve supported our f:imiJic .. and livings for th~ past five ye3/'S fmm our Wind Ik"dopm~nt 

lIusin~:IS. De .. clopm~m acti,'i1ies haw bc~n dimcuh ,,;th the wcrU: ~onQmy hut hJ\'e been 

jlOl;~ibl~ with 1m, juppan ft~ J'rQdu;: lion T3)( Credit. J 10m Wind jj 11 )o;;aJ dc"e)Op"r and only 

develop> in Nonh Texa., near Wkhhn Fall, Wc comp.:te in our" ind indll.try and ~Isn directly 

wilh alilhe uther electricily I,;ell<'ral;"l! fuel SQurces (nud~ar. coal. etc) with NalUrlll Gus hein.: 

tltc main f~e mnr\;cl encrgy pricing driver, We ha"c!xcll successful in dcvdoping several wind 

fanus in Nonh texas unJ hll"~ nul' ii~1 150MW wind farm;n ennSlnlct)nl1 cUlTClltly 10 h<' 

op.:rmionnl by the end of2012 to be oble to uliliu tile "Te. Wc alsn havc a large ill\'c~tmcnt nr 

nearly Sl million of our business and f3l11ili~s money ill a :lCrond 200I>'IW \O.ind form that ~ nil 

hold right nowduc to cconomlc viability is OO! po.~sibk "ithout 5up[)On of the PmducHoll fa:>: 

Credit. 

With the abundance ofnaturIIl gus in Te~a~ lind thmughout Ihe IUltiol\ thm ha.' arisell OVN Ihe 

p.1S1 few rears. the mar~~1 priccs for power havc dropjl<)d by 250/. in c~a> from 2007 to 2008 

lind 1> IlQI expected tn ri,o;c qllie~ly in till' tlClir futun:, Thus. due to Rco~wllbles (Wind ond Solar) 

hal'lng 10 comflClc dir«tly aj1.3inst the morc pollulnnt fossil fuel. Natural G3S" the Production 

Tax Credit serws as the main nled13nisnl in !cvcli:!.ing lhe playing lidd ~nd helping mow the 

US and thc world into a cleaner long.-tcnn future ilt preservi"s this planet olol1)! wjlh other 

benefits of energy indepcndcoi:'C from OVCl'liea~ oil ~Itd ""a1iQlland mail1tainillg US jot>:;, 

Witl'\Qut Ihe Production Ta ~ (mit nr annther similar in«nlive thot nccoonts for eurhfon into th~ 

enc~ ~q"lItions. Rcncwnblcs will remain at a disadvan1age o,'cr the ne ~t 5 to 15 years due to 

their higher uprmnt ro,tl of plant construction. And In Ih<' neM 5 years. RCllcwablc ""JiI1(\t IX' 
570 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.504

ahll.. II> ~I>lnpel~ al ell in Ih~ US Inark'" 8"d the "ind indu~ I)' "ill grind \0 8 h~1t ",thOUI Ill<: 

Production Ta~ Credil. 

Throug.iloullh" a[l[lro)(im~t" 20 Far hi,lory ofth~ Production T~~ erNil, Ihis cmJil hlli; c~al~ 

numemusjobs 8nd ha, driwn lhe IIf1Idllallno,'c fn'", all fossil fuds po"cr !',cocration 10 a Ini)\" 

ofRene,,"b\es Hnd fossil!>",,,,,,,,ion coesisling and 5uppoTling each olher o¥mll vcry w,,11. 

Thi~ PTe provides about 25·", ofthc r ..... e\H'e e~m for Ihe Wind ?Oljcct nver liS life. 

With Ihe. abo,-c. please extend the I'rodu.:lion Tas Credit ~s a vehicle 10 ",~inlnin ~ "ibmnt US 

v.ind iodu~ilry (induding nllm~rou~ m~nuraclUr ngnnd construclionjnbsl in liles<" lough 

economic IlIn"s. AIS() ~s 0 I,'ng-ternl meM H' US energ.) Ind"pendenee and kc.:ping III<." pimICI is 

good shape for our children. 

Thank you for )·our time and coniiidcrntion; 

JimmyM. Hom 

Hom Wind. I.LC 

219 Virgie Ln 

Windtllorsl, TX 76389 

Oni.c: (940) M2 9781 

h<Jrn.wind@valloo.com 
571 

Statement of Hugh Jarvis 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.505

i. Ilugh Jan'is. n Ubr:uian ~nd ta.xpQyer in OUITalo. NY, rcsp«lfuliy urg~ Congress; I() ~ten.:l th~ 

wind en~rgy prodlK1i<", tax "I'I.'tiit (I''r(') lIS q(Okkly ,.,: possible. 

Traditional eno:rgy costs arc soaring. Our dependence on lIon·rent:wabk oil. cool. ,HId gas 

resources drains our pockets and makes us over·reliant on foreign production and uut-Uated, 

illcf!ici~nt, and environtrlentally unfriendly tech!lulogic>_ 

"hc PTe driws billions of doll~", in I'ri\'at~ investmenl in oome\:r<lwn Americ"n "ir;d rower 

~3ch }'~ar. r hav~ " .. ,cn the wind farm near my house ~vitali~~ the country and our rCl!ion -

brin!!ingin c'mstnii.1iOfl jobs 01 lirs!. and mainlenant<:jobs in the Ion!! (em,. aud gencralin!! 

re,'em"" fOr 011' cummunily school. nlld IIospitals m','r the I;feljm~ of the proj~t, Irn:rca~ing the 

nlll(lIlllt i"lfpowcr that ()\I!' count!)' gets fmm clean. homcgmwn, affonlnhlc rC!'oOurees is Oil 

e~cdlenl thirtg !<)r u5 10 00 - Dnd this ta, credit provlde~ nil incentive rOf the wind Industry 10 

wmillue In dQjuslthlit, 

t urge the t()nrnritla' 10 tnkc up all extcnsiQfl oft~ wind ~lI<.'rgy production ta~ credit right away. 

TIl.n~ ~ou. 

Hugh J.",ls (PhD. MLS) 

46<1 Unwood ,....,. 

Buffalo, NV 14209 
572 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.506

Int.oductlol1 

Submission ror the Re<;ord 

Hearing on Certain Expiring Tax Provisions 

Subl'Ommitlee on Select Revenue Meas ures 

Committee on Ways and Mea ns 

United States Ho use of Representatives 

Iberdrola Renewables, LtC 

May l O,2012 

lberdrol. Renewables, lLC l"lberdrola Renewables N

} is subrnittlna this testimony for the record in 

respollsc to the Committee', April 26'" hearing on Certain E>piring ~ Provisions, 

Ibcrdrola Renewables develops, builds ~nd operates, wind, r, and na!Ural gas electric 

geMraling laemlles tl1roughoutthe Unitl'd Stales. The company is the ~KOnd lafaest generator of 

wind ellergy In the country, with ,",ore than 5,000 megawatts (MW) of illstalled capa<:lty of wind 

and solar energy located in 19 states. lberdrola Renewables is an indirect ~ubsidiary ollbefdrola 

SA, the largest willd power generator in the world, Since 2006 Iberdrola, through Iberdrola 

Renewables, has invested more than $10 bimoll On wind, solar ~lId other energy projccts in the 

Uniled States in large part due to the e~is tence of 5table, predictible govemment policies, such as 

the renewable production t<I~ credilj"PTC"}. The PTC is cufrently scheduled to e.pire 011 December 

31 and 1\5 potential expiration Is ha~ing a signifiCllnt impact on the Inyestment decisions currently 

beillg made by Iberdrola and other wind power develope rs. 

Renewable Product'on Tax Cr~it 

The PTC is One 01 the most effective provisions in the U.S, tax (ode for encouraging n~estmellts, 

promoting l'Conomk growth ind keep;lIg eleclricity rale5 low. The wind power indU5!ry. in 

particular, has become an important engine 10f l"Conomic growth due in large part to Ihe 

a~ailability of the PTe. Sinct' 2005, the wind industry ha s rnvestt'd more than 560 billiO!1 in the u.s. 

economy, More than 7S,OOO people are currently employed at 470 ladtlUes louted across 42 

st3les. In a ~lYy shott Ilme ram~, u.s. wind turbine m30ul3ctUring has grown at a dr3matic pace. 

&0')16 01 a typical wind ""bine's componelll parts are 1I0W produced here in An,eric a, compared 10 

25~ In 2005.' 

' , .... ,,1 _ .... ~o To. c._ fo! W .... (""II'\'. ~ WIn<! ( ...... ls>otJoIlo" lAWU I htl 51\ .. ,. 

"o;/l_ •. "'&I",_ ... o(JIoII<ylu_",rc.-F><..s, ..... ,""1 , 
573 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.507

further, wind energy <o,t~ hav .. b~~n redue .. d OV~r by 90% sine .. 1980, r~c~ntly driven by a ,urg .. in 

technologiclll advances. With Iti ability to guarantee firm prices in long·term contraclS and iI free 

source of fuel for decades, wind ener8\' has proyjded 35% of al l new U.S. power capacity in th~ fast 

fiye yeari.' 

Th~ PTe has enabled comp,lnies. suctl as Iberdrola Renewable" to make substantial investments in 

the United States. Ib<'rdrola Renewablei ' predecessor, PPM Energy, slirted In 2001 Wittl just 13 

employe . lberdrola Ren ewabk!s now hu more than 850 full I1me employees and ttl .. company 

employs thousands of others, indirectly, in the construction and manufacturing sectors. lberdrola 

Renewable, has worked with more than 200 diHerent US supplie.,; and (oMuuctlon (ompani~ on 

our wind power projects. 

Iberdrola Renewable, will soon achielli' commercial operations on the largest wind project In Ohio, 

the 304 MW 81ue Cre..k Wind Farm in Van Wen and Paulding counties .. At peak t imes of 

construction ther .. were mOre than SOD worker, on site, with 330 of them from local Ohio 

companies. ConSltllCtion of lberdrola Renewable,' 300 MW Cayuga Ridge wind farm In illinois 

included 80 American <ompanles, including steel from the Midwest, turbine blades manufactured 

in Nann oa~ota. tOWers frofT) Wiscol'sln, al'd turbine assembly in Penn5v1v~ni". 

Iberdrola Renewables' proj!!Cts prO'o'ide an important boost to the economies of the communities 

where we operate. Across the count"" we pay more than $30 million per year to landowners lor 

the Ti@ht to erect wind turbines and also pay mOTe than $50 million annually in property taxes, 

which enables local gO'o'eroments to fund schools, hospitals and emergency services_ In Sherman 

(ounty, Oreson, reyenue from Iberdrola Renewable,' fiVe wind farms ha~e enabled the county to 

Improve roads and bridges, expand local fire protection services, improve senior centers, and build 

a new libra", 31'd public school. tn LOlWille, NV, revenue from Iberdrola Renewable,' Maple Ridge 

wind farm enabled the IOCil school dIstrict to pul a nite",l·the art computer il' eye", cJassroom 

and build a new football field. In Illinois. revenue from Iberdrola Renewables' Cayu@3 Ridge Wind 

Farm el'abled a $1.6 million new high school buildins in Odell. 

The Energy Information Administration predicts that few, if any, wind power projects will be built in 

2013 if the PTe is al lowed to e~pire. j The ~piratlon of the PTe would crule seyere eCOnOfT);': 

• AWCA U. S W>rI<r HlCUSIry AnfflJIII IlJ <lI Repotr Vea, E""",,, 2'01 i, G ..... 011/ 

,. (M<T\' 'of ........ ';.", Ad ...... ' .. ""","""""', t_ .. Dutlool. 1011, "'OoW>I>Ioo (o",u (";@o . ... tJo-wto_ · •• ....,Goo .... lIr>n. 

(.,..--....l!!!yJ1"ww ...... ""lolor(.!<!/.-b.<;w_I." _ •• ,o~I&'""j!fl~I,,..'!!~~ 

~10"&'~"" ...... ""-"'Oltgl~ 
574 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.508

hard.hip. Navigant Con.ulting predict< as many as 37,000 permanent jobs could be 1"'1 without a 

PTC,' 

Th .. uncertainty anoclated with t~e future 01 the cred.t Is already having an adverse Impact. 

Companies can't finance proj .. cts if creditors do,,'t know whether th .. PTC will be avaHable. A 

significant numb .. r 01 wind proj .. ct d .. velop .. rs hav .. alreadv dramatically cut·back t~e r actPlities on 

proje~t~ Ihat can't be completed'n 2012 due 10 the uncertainty over the future 01 the cred'l ~ 

lbe.drol" R .. newables IS not immune to the impier of this policy unc .. rt ainty. Ove. the last three 

V'ears, Om parent companV invested approximately $Ii billion in 'enewable energy projects in the 

Unit .. d Stales, Congress' delay In extending the credit is tiluslng Ibe.drola to .econsld .. r its 2013 

investment slrategy in U.S. renewable l!nergy projec{§. Moreover, Iberdrola Renewables has had 

lay-off some .. mployees as a result of this uncertainty. 

The greatest impact of PTC unc .. rtainty is on th .. US manufacturing supply chain. After inyesting $1 

billion in four manufacturing planh in ColoraciQ, V .. stas announc .. d in January that it could lay oU 

1,600 p .. opl .. if the PTe i> not e.><1 .. nded.' As many as 47 I1ew Am .. nca" wind·re lat .. d manufactu.inB 

ladlities ha~e come onlin .. since 2009, ~ven III the midst 01 an economic downtum. Once the .... 

radliti .. s shut down. lon~ lead times required to p.ocur .. st .. el and secur .. -available component 

suppller~ will limit their ~billtv to g .. t back online quickly, 

Although con,tn;cting a wind larm can be done in as littl .. a~ si. months, .. quipm .. nt o.d .. rs, 

r.nancin~, and construction companies mull be secured up to a yea r prior. Construction -activities 

ar .. Iso imp,ltt .. d bV weath .. r constraints for much of the Midwest ~nd East .. rn US. In PalOt years, 

somethinB as seemingly simple as o.dering a crane tall ellOugh to install wind turbil1es hreat~ned 

rr>iny p.oj .. ct til'1elll1"s. as wind Industry o.de.s w ..... placed long after other multi·year 

construction projecu. As a .",ul, of these "'Clors, if the PTC is not extended by th .. summe., it may 

be inf .. asibl .. for d .. velopers to complete wind farms In 2013. If Congr .. ss waits much long .. , to 

eKtend the PTC, Ibe rdrola Renewables respect/ully requests the extension last at least through 

2014 to B've companiestlml! to act. 

lberd,ola Ren .. wables recogniz .. s Ihn growinc budget d .. ficit pressures and Congress' desire 10 

reform th .. tax cod .. suggesu !~ t lhe PTC might not last fo reyer. W .. are wllHng to, as part of the 

lax refo.m p.ocess, wo.~ with ml!mbers of ConBre5~ and the. Adminislr aUol1 to modify the progr.tm 

• N_ ", 'O"J'/, ""po<1 "',~ _'''''' r •• c_ "" , ...u.l; W'"" "'0 ..... Do<_ .. , 1). lVII, 

.,'p./!a_.OfIll'ro""' ... '/wllioCD'......".....,""._I.W[.<l·prc"'''''''11121 ,·1"", pdf. 

~i<""" .. ,51<, "N.,'E" ''''., t,,,,,, us .. "", ,.Wft,me<tt " ... ., • ..".,: "'"_, ~""'-'I " ~o_ i. ZO". "'IP.:J.I'- m:h'!I."!!"' <"""~&)''""odJ.!!t''''~8J11'l.~"'''' ,,.11 0 ......... , "[01' "'-_ .... ~ 10 _ 01 N 

A_".." .. r .. , ... ,..,... ... ~.J(). ZOII ... np#'..uI'..,...lgIM'IILOU19"""" ............. ,."'-o!f ·IIJ.~~ 

"",'_1'0".1 . • "OWl'" ". "". "V ...... ,0 -... oH """. ,"""1,100; ",old "" "" . ,.,...., '.600 It! , ,,. u,!,. "" ... , ... ~, .. ""_ 1'<In. UII .. " Il, lOll. ~tt":I/WWoI, __ ",<om/I>r • ...",.........:<I_lj1170180' .. <ltjLlld"b~ . 

, 
575 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.509

Or develop policy alternative!. However, although th", wind power indu~lry hal made "'normou~ 

Slrides in reducing costs, historically low n"tural gal pri~! threat",n the viability 01 altern"tive 

enerilY SOUrCeS without tax rellel. The industry needs 3 short-term extension 01 the PTe to 

eventually achieve sell·sufficiency. 

Iberdrola Ren wable~ appredates and thanks the Committee lor the opportunity to submlt 

testimony. To fO'lter the ilrowth of an indusUl' that Is doing a tremendous amount to contribute to 

""onomic development. reinvigorate the Ameriran manufacturing sector, and diver-itv our 

electricity supply, we hope the Committee and the Houst' 01 Representatiotes will act immediately 

to extend Ihe PT(. 
576 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.510

ILLINOIS WIND WATCH 

Be SMART about being ORCF.N 

{" r4' Ik~r;ng oil C~'f\aill E.~pirillg Tal( I'rovisiolls (bcld April 26.10 12) 

U.S. 1·louse of Rcprc",maliws 

Cllmmin~ on Ways Qnd M~ans 

Sub<;ommin"" elll Sel~1 Revellue M<,,~~urn 

S"bmitt~-d May 6. 2012 

illinois W,nd W~(ch is an unj'lCOflJoOlllletl. gr:lss rw!.h m;SlX:ialioo <)fcili~~lS and Cili?""",' groop:; 

1h,1 o[}flOSt' ;PT\.osponsible irnJus1r;:t1 wind dcvcl"Pfllcnt in IIlinQis. [WW is self· funded nnd 100% 

volunteer. NC;ll\c"I'lhc W"O"P <lor lhe undcrsigm:d rcprl.'S<'l1t.1live5 arc alii"'\! wilh any energy 

comp:rn>' OT induslrial inl~=l. f'Q' mor~ inromlalion. sec "w" .illmoi.!;wind,,31ch.com. As 

,,,,,,,denls and pn'lpert}~o"nc"" of the Siale ll in"i~ we respectfully ~ubmir rk-se comments ;nl0 

Ihe ",-.:ord for the ab<lvc-rc:fcrcoccd hearing. 

r.XECUTIVf. SUI\,MA RY 

We rl'Sfl'l'dfuUy 'eqlll'S t thaI the 1' .... <l1Idion TU Credit (" I'TC"'J b<' aUowl.'d 10 U p, .... 

""~ se U lcmling Ihc PTC will o~lu .. lLy IHlr",lh U.S. N l) nOllll' f,",, 111 101' II) 1>011 11111 : i I) 

C<'ooomk develop,nen, reports f,mn C"iSli,,~ IlLin ois wind prujl'Cl.'ishow ,hm Ihe wind industry 

has emlled ,cry f~w jobs desp;,e ,eceivin~ billiQlls in ta:< hrc""~ and other subsidi"5; (2) 

EnmpeM studi~'S Show II1l\! renc"able en~rg)' subsidies and maod3tesdeSlroy for more jobs Ih,1n 

they en:al ... ; 0) eXlending the I'Tt' "'ill !Iol pre",,", elimale cha"ge; (4f "ind iseXlremcly 

C'XlX'nsivc comp;tNd 10 1110." OIher WUIU$. und (5) our l);llion's utililie~ ",ill 1110"" loward 

ch~.!p"r, c leonc .. naiurlil gas ".i,holll gIJ'"<.711IJ1<'m ill/<'n'<'lIIi(1II ,)I" <!J.1Jt:II,r~ , thus cre".!ting 

ecooomical)) sustainable jobs alld making al) our busincS<$CS !lIc"'c competitive. Atk .. 20 years 

ofmassi\"C suhsidic-s in Ihe foml of cash Y311l.'i, lax breaks a"d loan guaranlees for "iod em ... ¥}" 

il i~ high II"''' I() reti,t Ih~ I'rlKlut:lion Tax C ... 'IIil. 

I. TILE PTC KILLS MORE JOBS TIIA," IT CR}:,\TES. 

Empirical evidence SU","St.~ 'MIll,e indusuy'sjobs claims are inlbled. I [OW" ....... eve" 

irwe "",c<'pllh ... ;ndu3lry's cblms al face val"". doing Ihcmalh ",~.."Is Ihal we will b... paying too 

Illuch for Ih~'SCjol>s. Eumll"a!l sludk'S ;;how, howcwr, Ihat rel\C'\""~hk encrg)' sub~id es d~slro)' 

m"~ jobs than Ihey c .... Dle. Gi"<'1lthc overull inlp~~1 on lht' rt'SIt)flhe "'011001)', we will paying 

billions on))' (ol'~JX. .. icn~<l net job lo.UI.'s • 

• :. Th~ induSlry 'S cla m~ of job c"",(ion do n,'>I ap[lCar 10 rcn<'C( "':'!li(y. R~ports fmm wind hU:<:t 

mnH"u"ilie.; indi~lIte toallhe wind indu~try Klually creales ,ery t .... w I"'mla",,"1 jobs. In 

ll1i""is, of1ici~ 1 quarterly reports liled with the 1II;.",i5 1Xl""'menl QfCOltllnercc and 

E~"mom;c Opportunity (lLDCEO) illdical~-d Ihal lh<ldcvclornwnt uf eil!llliarge industria) 

wind f~nHs ( 1.460 lurtoi"e<;) t~I~"Il only 61 10 75 pcnll~nel1l full ·li" ... jobs during 2007· 
577 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.511

2010, In l'ol11p11rison. a singl" hardware SIOl'Ccn:3lCd 75 jobs. Funh<:rmorc. il ~ppt.'m"S Ihese 

job~ WN" nOI lruly p"rmnncnl. 1he loc-~I reportS eilher did om indicale how muny ~nployees 

""n: ill ~nlployC'd b)' UIC proje'l:l Of not(d there "ere "0'" \II Ule timeofthc repon. The 

re~icw of DeEO r<'ponselll1 be: foond nl 111I(I:lIilllnais"jrnlv.:uch...:oml e:\C)I':-\!J.\I}o;i;-wlrtJ·jnb-

~~'i ",-&-~. An independ ent audil 10 detLTminc how many long·lcml. full· 

time joi>s bavc bc<... CfC'"dted in the U.S. i~ lOll!; OV<Tt.1IIl .. 

0} "WI! irw"-w;c~1!I...Wg Wind'5 number. wind jobs ~n: unalTordahlc. The fUlure CO$t or Ill" 

J>TC is unknown bc<:'~uS<' then: is nn Clip on the amnunl of eapadt)' that can qualify under 

current Inw. We ~uld nnl t1nd un onlein] c~lil113tc ofthc cost ofeslcnding Ihe PTe. 

Ilowcvcr. if wc 3sSUm,' the H,'cm~e annual wind capacil)' dcwlopmcllt from lOOS-lOII wili 

cOllt;nue. the I'TC will coSI the fedeml Wasllry 300m $4.5 billion po:r raJ" of e.xlcnsioll. 

Th us, iflhe PTe is eXl""d<:<l fOl juS! one more ye"r and develvpmcm necur,; al an avcrn~e 

p:K:l'. Ihal wm1;s out 10 SI21.622 l'EK JOH. Two lOU,"" wo uld C<I'II 3.2 3 I't:R J O Il. 

Th;, ~ in ",ldili,,,, 10 the $10 billlo n We ~, t ~ ta l" tutnmill ed fo r t hl' e~1 10 ~·,,,,rs. 

/o,kanwhif~. Ihen: is no lndic.:llion thai allthcse ulkgedjobs IIClIlali), e~isl. mu~h Ics~ Ihnl 

they "ill last ,ls Ion!) as the s"bsidy . 

• :. "ieking ",i,uLer'! in one s«IOf ofdl" <:co'lOmv inl1iets iob ~ on the 1't.'S1 o(llle eco'lOmy. 

lIdep<-~ldcJ1l studies oFthe il1lp;lcl of ,;."ewablc "nergy policies in Eoropc show th~ 1 lor "'cry 

ren"wable "ncrg)' job cre'.llcd (~t ~r"'J1 COSI).:! UJ 5 jobs w~~ 1<lS1 cls(,whcTe in the L'Cunumy 

due to higher e"erg)' C<>!<IS lind tllXCIi. Fer II ~ummary OfUl~ Eumpc-nn c~perjcnee. ~ "Grtt11 

Jobs R<"rour<Ocs. " hl' p:J/v.ww,i'I<lilulefore"erg),reS<..'<Ir<Oh.oqrJisoucsign:cn.jobs-resources!. 

As the impacl OIllhci, economics became dear. manr European nalions reduced Of 

e liminated subsidi<'S for renewable encrgy. For II lisl of cUIb;\ch wilil supponing.lillks. sec 

'"World Wide Subsidy CUls." hltp:,lww" .ev~'tltM ... ;nd.t1fg/I' orldwidc-~ub~id)"':"IS. The 

U.s. CaUl\!)1 win IhC' "clean "ncrg~ T3CC'~ - t here is no "'tt . En n C/,ilJlJ Is hatking aw,,)" 

from renewable ennlt)' nil ..... Sec "Chinn cuts re,wwnblcs 10 push nllclcnr. hydro," 

hllp:llwww .nlodcmpo"ers)'S1enl s.romistory.a~p1sectionCod"," 13 I &.>mD Cod~2n62146 

(Apri111.101n 

11 . TilE PTe 1l0~:S NOT G Ui\ RAi,· n :E I'ERFO R,\ IANCE. 

The asscniQI1 Ihallit<: PTe rewnrds wind dcvdopo:l":i only ifther lK1ullily SIJ(. ......... 'd is false 

for .... ·o unrcisled ",as"us; 

0} The PTe is ~inu W1d--kfore il '5 c~m,'(\ 10 h'MI)' profilable COrpora110nS Iilal are 

\Villing 10 13k<; on lhe risk of buying (il/m'" tax credits 31 ~ discovnl. TI,e I'rC is beinJ!. 

mQnetj, ... "<l (reduced 10 ;IS fl""S"n1 c:tsh value) and sold 10 cO!llOmli on~ Ihal ,,'" willing 10 

pfll\'ide ea~) up from 10 ",ind COlllpa"ll'S'O use as capilal for Ihe projl"<:1 Ihal will 

~erll'fll t~ Ihe credils. AccQrding. lo pll)-"'ind 5OUr<Oo:s. as 01"200, Ih~ banks. fossil f",,) 

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businl'SS<'jl and olh,,! comp.1nies eng:tged in thes.. com pit's tr.Ins3ctions iK'id 40 to 60 

~~nt.'i to ~ a dollar'~ wonb oftas avoidance in tb" future, Sec RC'I<l"'lIbl" J'", .. er. Pu};q' 

('lid IIII' Cn,," QrC"pil(ll. JlIlp""·i'!:.: Capil(l/ },fwket Ed!.:;'",c), 10 S"f1pflrl j'/ '~"" "bf" 

PUlI'.:rG.mcruliulI Pl'!ljt:t:I,", 

!l!!n: /l scfi.u n<·p .~""d",in mcililll.., fi dogtpub!iealion",I{"" .,.,~bl~ )'""cr (l li ~ 

lIr!lhLC<JSi.-!!r.i:~'pjl aI Jldr 0071. The di:i(:OIlf\t rcnoxlS the 111); avoidcn;' cs(jmat~ '}f 

tiLl- valueof PTCs proj~'t:ted t<l be !,wnl'f:lteU. the risk associated "'itllth" project. :md tho 

time value <lfmoney. Like u p.1yday- loan. thi ~-a llo"' s wind companil'S (mo. t uf"iLich an:: 

fordgn) to ict cash fwm Alu"ritan \U~ e<;juity invCS!<ll'S right up fTom. lhu~ Il'1lnsfelTi"g a 

chunk of the risk of en("rpris.: fitilure from the foreign wind dl'I elo~<s to tll')$ 

American im'eslorS. S<,.., App<~ldix B for a detailed <il"'SCTiplion uf how a I"1rfOnu3n",,-

based green incentive has been deverly (ifsolllc"haL indTicienlil'l convened to 

eQlj)<lrnk wc!fi,re for what 1Il0ny mi~! ~ol!si er "din y~ ~onglomemles and corl'omle fat 

eaL~. ThI:SC financing whiclc~ are l"QmpJe.x, with eocll deal ;aid to be unique, bUL Ih~ 

rep<m shllw~ there are Wme StOu!l."\rIl pancm ~. IlIduStry repre~II\Utivl'S haw said Ut 

~OI1f''T~nc('!; Ihat ifrh" I'TCs an: nOl eamcd for any reason. thc ~ equilY invcstor would 

lose that pOnion orlhe vol"" of irs investment. The wind dcvelo~r gcts the benefit of 

th~ I>TC in th~ form of Startup capital from lax equily inVl.,.,tors r"gurdless uf"hcther the 

prOjl"'~ w '~llT.ll es as Inuch ~Iwrgy as ;,'iliall)l projl'<'tcd. 

-:. Ihlt.!'IC willlllll pJ.:,o: ~~ignificanl!!!lc in prcvl~lli!!ggl ':l b.aJ [imall,' chall!!~. Nu flmhl'! 

subsidies slmuld be l'xtendcd tilth~n:: i~ independent. ~icllli!ic proofthol ~ddil1g wind 

10 the grid actmily n.>due.,.. carbon cmis~i<)lIs and use of fll5Sii l"ds. Severnl studies 

ullgt"'Sl it docs not. For all accl'SSiblc discussi(lll ofl/l;s issue, sec -'A New StudyTal:l'S 

the Wind OUI of Wind Em,rgy:' by R<)~n Bryce. 

[1Itp:!/"'" w.forbes.cumI20 ! l in 7, 19/" ind-,,!!,,® .. ,:arbun,html. See nf.n) 

h1!p ;//Ihe '"lc.rg~!c ¢.OOlI';n, .d~ 64~<)J , reviewing !<'Cent studi~). The time f{)r 

thCf'relical modding and hlind fullh is(lver, WC_lulder.;tand Ihalthc nCCl'Ssury dala exist 

in the lomlof quarter-hour utilily )!,elli:t9tion ..... [lOrIs. but tn,,)" ha\'c n()\ ilce .. release<.! lInd 

""vi""ed by ind~P<'ndem c_'p"nsto <ktemline wh~th~r th~,,· "'" indeed any n~1 carbon 

!>li vings. 

unh~nnore. elirnat~ change is a gloha] pmhlenl causcd by global CQnditions. 

lJnfonunutcl)'. il ~ppca!'j; Ihal our cum:nt pnlki~ havc llce1l1ncffccllve~ Ihe latc;;t 

al'ailable data trom the Energy Infofllmtion Administration show that after dcc.1dcs of 

mandaI .." and billions in ubsidies. wind . Iil! pro\'ides less Ihan 1-/. of Our nation's 

cne'!:..\,. ~ 1,,! £: {I l}vw_~i~ lI,ov ",n~w blelallnuallprcljQlilla'11E.<1rrprcl IIlIinary.£lll. 

Since our nation accollnts for 250/0 of worldwide energy conSllmption_ Amcric~l1 wind 

~lIergy accounts for li!'o'l' rlllll/ll /ilm,lI'r o/r}lle pt"""e"t oft~ world's energy nceds. 

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Common s<:nsc SlllU'.CJt5 we hoo beltl't stan;n!!. us;n~ our lin);Kod res<lurc.,,; to look for real 

~llIt;on~, indrnJillJ!,ncw tcchnolo!;ies th~t our 1<'S'$,fortunate f~lIow tro~cle" can afford. 

III. NATURAL GAS: C IIEAI'.;R. C I, EANER a mI MORE RELIABLE 

nIl' smart cne~ choice is 11"IUllll gas. MoS! C)(PCrt~ Ix:lIc'e thai this ~ 0 no-bm;".:r, 

!!!!f' ;J"" ,*",.n~",g<'9gr' phy,comironl~ I/OO:!.5Q9·~&<!inf,l·",ind. Thc A'~ lat l n'port 

shows th"t the cost ofnc ... gl'ncr'IItion of .. ·jntl CDCl"\IJ" is II bout 5([0":' hi gher thun nHtunll glls. 

.md lhis dINs 1101 ".,~" nCC'IJIIIII/or IIII! ''0-'' 0/ eXlell:;il'l "bJ' idiI!JS or Irlmsllli",'iIJn C!I '! 

!!ill! ;J12 j.15.j.135.z.j l\ ia t:l~""';cl c"ncitYJ.cner'lllioll.ht!! !l. Nor t1<l<'5 it accur.l1eiy acmuolt 10.. 

the. unav~ilabilil y of" ind at lim,'S ofpcak dcmnlld {and therefore its ](I1\'er value l. 

hllp ;Jl '\ wjn'titulCf rt'll~n:wcsc:ll"eh.orw'29 t I 2I221 ki!lg·sc:nS1.~l)f- e.ve li~.cd~ >¢ . Thcl"t' is 

no free lunch. If the I'Te is e)(I~llded. utilitie$ will [)aSs the hig,her eOlit ofe,, ~ on 10 industrial 

CUSlOm,'r.;, who will pit,S it on 10 eonsumcrs. Th" f~derJIl!ovemmcI11 is ilselfa m't5Siw 

co",un.er. li as 3n)'on~ Mt~nni'K'<I how I,;gherencrgy pricl.'S imp.-.ct the re<l"",1 budge!'! In 

rnntrast to wi,td, de~dopm""l1 of domestic natu,."t ga.< ,,"QUid erem~ good jobs and lri¥&I.'f 

cconom ic bix>ms "h~rc"~r n~tllral g,as. depOsits hm'c be<!'n found. The u3tural !;as indust!), needs 

NO fcdcml ~ub,id> or ""gulatory market f"",,inll-In nrde! 10 replace dirtier forms of energy. And 

n~tural WlS plantS coold be built 1QC:1lly wh~rc fl'O",,'er is used, uvoiding the r..x>tJ IQ build 

expcn~ive tl"Jnscontincntal power I;n~s ()t install "sman mctcrs" that few consum~rs want. We 

ha,,~ almnda"t dome:stic gas "'i)Crv~~ that willl""'Jvide ~ ~ure and dean source (lfenergy for 

centuri"s, g i"inS oor St: i~)lli sts plemy of lime tu look for ~i"ble non-f05Sil Olptions. 

CO NCLUSIO N 

C hairman Tibt>ri I'<'t'urt~dl)' asked, " Wllat"s Ihe mag ic nunlhH'!~ wjlh "'~jlI.'(,1 to II possible 

pb3$COlU of the PTC. Aftcr20 years h~~ and 30 years abroad, it is cl~ar Ihat the indu try will 

IWI'cr tw sdf-su~l~inilblc. Thu$. it will always claim Ihaljobs wiU be lOS!. iflhC I'TC ~nd other 

prcfL'l'enccs an: t.ot Cxtcnde<l. IfC n!p"cs~ extends t~c I'TC yet aJ:llin, Rig Wind will come back 

a year~fo", il expi,..,s cl3imin~ that it nl.'Cd ~ ou~ mo;>tl' exll~l ion, a"d w~ will ~ ntht ba<:k 

\~hcr" we arc toon). except we will hal'c' added billions more 10 our sm,l-sucking,national deb!. 

1Jlg. WIn<! wll! ' ...... w volum""r 10 Slop fo:-;:d[ng ~I th~ t~x hrcak trough. Given Congrts~ ' l"CIMl!"d 

suwcnsilllls of the snbsidy OVL'r the y~ars, the indnstry has ];,""en !!:iv~'n fBir "'~ming; no OI1~ c';tn 

cI~im 111 be urpr sed, The time ha~ CoolC, We a rc Msking Conl!rrss 10 gi,'c Ihe Amcrkun 

l.eo"le y ""Un rutur~_ n' on: job!:, lo""er IU","" e:!~ de bt ynt! lolO'u e.,,,,ns_ by F. NIlI NG 

tbe PTC no,,'. Thank )'OU lor )'OUr time and consider.ttion of the impact of the PTC on Our 

~ollnt!)"s filhlre. 

YQurs tndy. 

Carolyn K. G~rw'in 

70S South l.ocust St"""l 

Pontiac, II. 1017601 

(8 15) li4~~2.j~6 

c'~J'{1lyngcrwin!!.!'mch'i.tom 

Cynthia J. Ihrke 

14SSM 1700 E itd. 

Roberts, Il. bO'l62 

(2 17)841 -8120 

\'1Ie!l'i1~illinl\;~l1!!mil.~otn 

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AI'I't;NDIX i\ 

The S-I5 billionlyt liguri.' "3g e3iculu1cd as follows; 

J OW <"Jp.1C;ty - L millkm J.:W cap;ll:ily. 

I miJJiQ" kW * 10 yrs ' S7f>(l hrslyear * JJ% ctlj~i~nc y' 2.2 cenlSlkWh ~ abqu\ S(iJ6milliVI! ill 

ul>sidie~ P<'r GW in;;talled. 

Wind inSlulk'1ions;0 7(108·201 1 were 7, 10 • .5 and fi OW. ""~ iv~I}'. "nI31 a\ er.'~c s to 1 OW 

per year. i GW • $(,36 million/OW ~ ~t le"d ~t $4.5 billion drnine..i from the T...,asury fo r every 

y<"dT it is C"l<K-ndcd. 

Thj~ dOl!:s riot ;ndud ... thl< impac1 ofhigher cn~r~ o;()Sts nn the federal budgct 6r loss of In'; 

..... \'I:OllcS from job losSo!"s in Olher seclOtS orthe cc<lnomy. 
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APPENDIX R 

CASHING IN ON TIl E PTe 

Excerpt: Appendix D: Sample rTC Monetization StruclUre "j'artnership Flip:' 

Renewuble Power. Poliq GIIlI/he Co.,·/ u/Capi/al. IlIIprtJl'ing Capi{(l! Markel 

£.Dicif!lli:), /0 SllJlplJ/"I RCI/(!lI"(lhle Power GCI/era/inn Projects, (Frederick A. & 

Barbum M. Erb Institute. fo r Global Sustainnb1c Enterprise. Univi:rsi!yof 

Mich igan, Apri120071: 

There ~n .. t W[) primal)' rl!ltSQn, lor a Jevdope!" 10 tnQlleli~e llIe!ll~ eredil~ ~Ilow~ un,kr S~liOl\ 

45 urlhe IRS tax cod~. First. Ih,' d~'duper uncn "'\(." ~ 001 ha,e lhe lax appelile lu ad,'qualely 

take ad\'anla~ Mlhe .redil indep'SlIdc,ul),. S\.'COod. mUllCli7i"ll 'hc cn'"di\ up fronl can pmv;d~ a 

much ne.:,k<.l oo"ree ur cJpitnl lilr developing n renewable power project (DufTy :WIl5. 5). 

There re ~e-n.tl ~t"' t"re s that tan ;lliQW ftlr ",on('(i7.1l1iol1, intluding ~PJlnn~ip flip," 

"servi,,<, cUntru<:I," n<.! ~$:I I~ and le3S(."ba<·k~ tlhis struc ture i, nm ~vail3ble fur win<.! proj''CIS). 

Arnon~ Ih,'"S<" option,,- ooe ort"c "'Ol't CO","'<1" for wind facilities is Ihe panoc~ip flip. This 

structu'" h", seve,.,,1 ""';9tions Iha] can include nQIH"~ ""Iuil), in~"s\l}rs and debt capital in 

mldilion 10 Ihe dewlopcr and tax l'qll(ly iOl'''5tor, Thi~ aJlflC'"dix offen: all ,,,,,,!'View of lh~ 

partn~rship flip ~INtlll'" ill onlf'r to prol'ide a sense Mlhe t()f)lple~iIY "fmoneli un;OIl. Not~ thOI 

h~ c<ln~<'flIS p!"eSeltl~-d are 'wy I!l1H,rnl, 8, mU,1 mOI'H.1 ;zalio" Structures are hil;hl)' clIs\()mi~d I() 

fit the circumstances of individu.11 projects. 

Und"r SecliOlt 45, Ihe ..... are IImilllllons 10 transferring credits, primarily as a funcliOlI of 

clil!ibilily. Cum:nlly_ Only n",n".,; or~ gi"cn ""''''l'f f:..::ilily tan I:»;c ad"ant~g¢()flh(' lax cre<.lit 

~onc c:O;n'plioo is the moull orn -'Jle<:ial "'ie, whi"h nllow~ opcnl "'lp biomass powcr plam 

Ol"'nllOrs or Ics>o::e~ 10 claim tt..- creditsl ~l\ anin 1007, 10). 11",reforc. il i~ ne~es$<ll)' to cstnbli,h 

a limill-d liability '()mp~ny (LLC) or a j()im v(nlUre that rI.'Stllts in Ihe p;lrt,""l'S (dcvclop<.'f Jnd 

equity i""""l'tors) each be;,,!! cllI$ili,,-d as o...- ners. The panncn; are ,he" allocal~d crcdit~ in 

proportion In their o\\ t~ip. 10 :'Iddilioo, there areoth('f limiling faclors accon/ing III &"'Iioo 

45, including (Zae lkc 2()1)~_ 20): 

Subject 10 all tax ~quit)' inv.."lors: 

I. 1'"" credits fm'" the PTe can b.: dimillishetl b} other slHle, fe<.le,."l. and 1"",,1 inccmiv,," thal 

hel p pay Ihe capilal Co>l of Ill\: fadlil)'. 

1. The PTe ... il! lx-gin 11) phas;: "UI <IS the pOI ..... ,. price excrtds 10.7 C"'I11S p<,'f kWh. 

J. Th~ I'TC only c~n b." u",d to "IT"'I \h~ 311~mathe l)1inimunl L3x for ~ !irs! lour yea ... 

KUI ~~bjccl \Q large in:;,i,u,ional inve,lOrs and cQ'1'Oral;"ns who."" upplyi g tlw Ill" equilY ill 

p:lrtn~uhip flip dcal,: 

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1.I a~sive IUS:! rules rctluin: Ihm the taxp:iyer IOlIJt ~ actively <mJ;a~ed in the business or must be 

using the credit "nly to Qrr .... 1l)lher paS.~ ve invest'!)Cnl.$. 

2. i\t-ris~ rules that restrict indivld t'ols ~nd stnl,lIerco01p.1I1iC"!< in claiming filII depreciation 1"ron' 

~ prujCCt, limiting the amonm to the amoum ofeljult)' th~ in,'estnr has inv~led. 

The l..l..C is !!~"Ilcrally sum·tured with ,he dcveillpt:r a~ the m3nagingmcm~r nd th,' tax <"<jui,y 

inv"sOl" as a p.1ssivc p3l1icip3tU wili, li,niled v{)li,,!: right:>, b,n wilh 9(l to 100 percent of the 

economic ",I urns fmm th..- emily. In retun., the ta;o.. investor will pr<,..ide Ihe majorityofth" 

equity contribution tv linance the conSlruclion of,he ladllty. For the firs! I () ye=. the tas <'quity 

11IVCS!or will usually draw the lax credits and revenue in pmponion Iv ilscr,)nomic owncr.;hip. 

Effeclivdy, Ihe LLC is \reat<-d a> a p:lnne~hip to la~" advantagt."1 ofth~ tUX benefit ~, Ihough 

aeeordi,,~ to IRS rcl;ula ion .the panlM'S must share tlw rTCs in th..- s:t!1l~ rmio a~ ta ~ablc 

inCOQ1c. Oy Ihe e"d oftl,; ~ cycle, but nol before Ihe tllX ~"qui y inveS/or ha:i ",,,,,h<"<I" 

predelcm.ined rnte ofrctum •. Ihe ""Iuity proportion. will switch belw~n \he tax investor and Ihe 

dewloper. hence Ille lenn " ilip:' i\tlhis point, Ilk" interest o r the tnx investnr llsually .Imps to) 

fin' perccnt (Mun,n 2007. 9). 

To provide (he dcvc!op<."1". ,,110 is also ,'otnml>nly the m~nagillg m .. mOO- in chat)!cof dlty-to-d,IY 

operation oflhe facility. ",'ith cash durin!!- Ihe period of minimal NJuity. an upf!\lIlt d~velopment 

fee andlor ongoing lfIanH ~m<'IIt commct is ollen pm"! of th" awecmcm. Many lim~.,.. allerthc 

nip hilS IlCculTCd. Ihe developer hll., the oplion tn huy the IQS invCSlor's n""aininJ!, inlerc~t 311hc 

cum:m fair-mark~1 value (Zaelh 2005, J I). 

Ris~ allocation bcl"C<~J Ihe IIlX equity invt"SIor Jill! developer is neJ!.OIi31ed "he'll devell>pins Ihe 

oJlCnlling llgn:CmCnl fOf Iht: I..1.C as well as any 5Cp.1r~le pUn'hase ur equity l'tlmmitl11cm 

agreements. [fthe forc<:aSIS made by tbe dew!oper duri"g Ihcsc ncgotiJtiol1s fail 10 IIlateriahc. 

the inve,t"r will have D eI~ilfl "g.1in~t th ... develop':". the dnm3g<.,,; from \\'hich an: usual ly capfl"<1. 

The equily in",'5\or u«cpts t~ ri s~ thallhe de:!i .. ill deliver the !:Ix credits. In atiditiOlll1> 

damus:cs, the equilY ;nvl:"!ltor call dclllY the flip Unlillhe t.:!rgel Mum is n'achc-d. 

Th,''''' are scI'o:ml varimions 10 this structure. First. lewl1Ige eml ~ added III the ;ni1iJI capita!. 

Upqn compiction of the projCl1. cOJlstruction lenders Cl<pc<..110 be repaid. tIQweVl,.. thero is 

occasiomlly some 1",eI of debt remaining on the proj~ct from a '~rm" lend,,.. An), I"ml 

financing is then li ~uall y servicl'<l 0''Cr the same period M the PTe, 50 whi:i"lthc equit ~ !lips. the 

deveJOp<'r OWllS the facilily d"bl-rre ~. Non-tllX e.:ju;IY investol"!i ~150 may hal'e 'nwsted during the 

devellJpm<'IIt ph.1;e(>fth~ prtUl.'Cl. In this !:Me, ca!>h is initially p~id to this inve.;lor to cover the 

lU110U,,1 "flhe original inv<.,.tmclI1. wllile retums areeaml'<l over Ihe same pi.,.ioo as the t.:!x 

equity investor. 

In additlt)ll tl>, or in licI' 01: nil "pfront [l.1ymenl. the t:lx <'quit)' Invcstor al;;o can nwke Q,,~ncrly 

equily pnY'11l'llts (>11 an oogoinl! l>:\sis. fhe developer tal' borrow againsl these paYlllent, like 11 

,,","'3m of n:v.::nue, used to :>e<.·uritil.<l lh" debl, clTe<:tivcly mOnCl':.:.;ng Ihe fUIIlfC lax credil~. 'i"hi$ 

~trucLUn: is commonly re terred 10 as '·par -as-yt'u·go:· Whereas in aCljuisition deals Ihe inwstur 

mnkes pay"'''''lS to the d"vcl(.IfICr 10 btl)' the proje"'I, ta)< inv"Stors in new projects ~'e!)~l1IlI y ",ake 

a capilnl conlribution 

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10 Iht llC lu reJlll~ Ihe cooSiruclion debl. The pay-as-you-gc SlrutlUrc is lypi('~lJ y ~ way for the 

Ia.x inV~$IQ1" 10 rr"",d ri,1:. by not rrovidin~ Ihe c:mirety Qf the prvj""!'I' C<jUil)" ~apilal upfn)/,t 

(l)uffy2(lOS.IM). 

lllt Sl)p/listic<1tiOn inh~r.:m in IhC"S<:" structures ofiCll results iu ,1gu\t1cant legal ftnd ~c~ount;n!l 

fees. Thus flipS ~nd other n!(,netiUlion stn'CIUn!!; may nut allow fur mall~'T rroj ...,tslo 

elT~ ... 1ivcly \:,I:.c acl,-antage orthe. incentive. I"u overcome this Darner, small d~\"elupcrs may ell"'l 

10 cumhinc Iheir pmjccls into a siull-Ie emily 10 po4llax credils rur a 8;\\gle lax investor. Even so. 

Iher<' 8",(u""nl\) only about ~ dM..,n large institutiunal inveslurs supplying lax ~-quily 10 RHf'G 

proj':<':IS mtd ollen 1he) do not WII"I tn spend ti'HC willi small deals (DulTy 2005. 33). 

PTe syndication ha> alJo"ed lur inv,,-slor; ~ch as banks and i,l'''' ..... lce tompanics tu pani~ipalt 

in Ihe ren~""able )Xl,,",,r s;.'ClOr. in addilion to tnlditional en~'fgy nnd projl'CI filt.1nce im·l'Slors. The 

result 11ft. been !If''atcr t/"lln sfcr ufl'TC value 10 the dc.·clopL'f_ In addil;"". Ihe r,~Cl lhal Ihe 

s\ruClun: allQw~ fur Illc develQ!",r to remain in control makes il ant:"'li,·., 10 devdopers. 

s~ the full re[l<lM 3t 

htlp:/I'I<'ti."nl'J'l."rJJ/fik·adminlllltdiaiscfoldocvpublicalit'ln",Rencw:ibley.owC"t ---.J'''li~~~ alUl....!h~_ 

{'1"L!)Lf,)l2iI~I.~r. 

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"T ~ Economic Url~ncv of Ru torl .... Key Tu P,ovislon" 

SUlemen. fo, .he Reco,d 

o..n c:. Garfield, P,..,.idenl a"d 'EO, lnfo,ma.ion Tl'<hnol"!Y ... du .try Coun<1I 

H •• rine"" ' . <taln Eopl,in, h. P,ovblon< 

H.,.. ... Commitlu "" Way. and Moan. 

Subcommlnee "" Se ..... Revenue Mn.u,es 

Ap,1I n,20U 

CIIal,manTibe,J, Ran~in l Membe. Neal, and Memhers of I~e Subcommlltee, lh.n~ yOU fa, hold in! Ihls 

impan.n' heorln! on.he •• Iu" ' hot t •• ""ender, p,,,,,,de to , he Amerlco" pe<>pl., M'nv of the p"", .. I0","" 

intes",lla Amerko' , ,Iobal econom« "';ode "hlp and OUf <omp aniM' bl~IV 10 Innovate and <fe.te new, , ,,,,,,-

""yiRI, long·loslfng jebs. 

AS m~mbe"ofthl •• ubcomm,tte. well unde,,,."d, th. U.S. t •• Wlle i_<ompl •• I nd, of len, contradictOry. An 

ho" ... ' ,u din. 0/ Ih. code will '~ve.IIh.1" lor . 1I 0/ Ihe p' G-job. and economic: "owth ,helorlc: we ~a ' Itom all 

cOfne,., th e US, la. code u"falrly ,." ... Am. 'ita"· b .... d slobal CO'po1""<O"' Ihal aceount for I~ . bul. of U.5, 

R&D .peodinlLo •• po,h, and . lm<>.OI.1I outwa,d dl,«tinve_lmenl., A. we work 10ietrn" 10 ,t'O-.' !,om Ihe 

war" e<onomlc: ,."e .. lon In g<!n.'. IIo .... Wt ,~o",d . dopt • II> "'''''",e 11>. 1 enco"'.!", c"",,,,,nl,,, 10 In •• ,, 

in '~e Ame,i""n p""plo .nd A"'~rk.n ,omponl,,-. to p,oduceth. <"lI1n8· .... g. prod"c" t~. 1 'he world i, 

demandi n" 

Wh~n Ihecu[l' nl pack'le olt." ... ~d , pr""i$iM' ~p r"" in Decem be' 2011, U.5_''''''p.nl(!1. held Ihfoir 

,0110<tI'I0 b,."h 10 .ee w~e" - nol whel~e, - Ihe (ona,e .. would ,e.ulho,l,e tI,,, .. job~"''''"il p",,,l;lon •. 

UnlonuoleIV, .M!n I"e leno< 01 the polrtics of WI. hi nil lon," i, lnc,ea,lng", diificu" 10 see a o'lh forwo ,d Ihi< 

yur. h'h ,ommllmonl 0/ o,osreos;, me! w~h I pu'" for del. y. W" hop. to . .... Drogr.", 

Th. lechnology seclo' . g, ••• Ih", Ille Con"." 'hcui<! I"~ . a ,,,,iOll. loo~ 01 the me. 11 0/ ",,,e"llempo', ,,, I. " 

p,omion,a' ~ looks.t como'ehen,i.,,- t •• ,eform, flowe . ... , comp,che",i. " to. ",Iorm i, nol eJIJ"'ued until 

20U, >I th e to,li".., Ab>l!-nl an effon by (on" e>' Ihl' ve"lo p . ... tal e.,.nder. P"C""'" "Ilk. 1 job~,e nll 

,n p''''''''''n. could b<' "'It ofl the b<>oks lor two '1u" 0' mo,e , Enn I del. v of one 'In ., whiCh i, all bUI 

, en.in, I!i unacceptable, .,.peci .l ~ al a liml w~.n D,h.r 'OU""Ie, Ol e no, OI.ndini ' 1111 to aWfCt ~pi 1 

Invn'm""t, .nd enco~ .... ge. <ompan;es to crutljobs wi''''n I,"",ir bor<l ~ ... Bluntlv, our econom~ ""nO\ afford 

e.lend"" <Onll,""ion.1 fhactlon On I •• In.""".es I~~ t boost American job, .n~ Ih e Ame.ic.n economy. 

The tech nology c5e<to ' Is h",u, ed on th'ee .podlic . ... nd e' p,o.;,;on,. Th. Ii". il th e ''''f<h . nd 

O.""lopm,,-n, (~&Oll" "edit. Tn!. Is <fe.rly . p.G-job .... cto-dil, with .ppt""lm' '~ 70 percent 01 tile 

benefits of 1!'Ie " .... 1' att,lbut.ble 1o ,ala'"" of wo""'" P<'riormlnll U.S.· b .... d 'e ... ~"h. Thi. credille.d. to 

mo,. to. ,evenue, p .. ent., I nd job,. He''' al h<><!'l • • no . ,ound Ih. world, R&D I~ . incenl ..... ' ha.e been p'O'Ien 

'0 .ffectl.ely !I'c .... ,. ",,,,ate-sec,or IM"".t!on ond 1>00<1 economic: , rowlll. 
585 

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Th~ Unll~d sto,., wa, ,~ ~ U,,' nOlion 10 ",aU,,, ,~. Impo.toMe '" ~,,,,jn c ~!!OD 1~'o uRn ,lie , .. code. put!lnl in 

p",,, Ihe R&D tredi. '" I'.ISI . T~,aug~au, 11001 dec>d~. In.. U.S. h.d Ih~ m",' gen"''''', R&D .. " inc~nJ lve in 110. 

wo,ld. Kowev .... OS th ~ 'nfa,m>.ion T.a. nol08V and Innovi,i"" founda.ion hn noled. o.he, n.tiDn .... rned 

',om au •• uoc.,.and n."", ,.,>tju", cool.d u,. but left u. ln \/l.I. w. l<e , By 1996. ,"" Unit.d S .. , ... 10 .0 r.,len '0 

... ve".~ in R&D I •• ,ene,o.i'y.mong 110. 300ECD nation.; by l0ll4. lhe U.s. had lall~n 10 17'''. O\~~, "anDECO n"ion, - in"udin!! OUT lOP ,lob.1 ,omp<>titor. - h .... overt.k.., th .. U,S. In ,uplXlronH R&O .' And 01101 

,I>al w"' b/,Io .~ Ihe u .s. R&D 1 •• Uedll wos .'Iowed to "Pl' •. Du, Ilob.1 ,omp",IIO" wookl wel<:o"",-

Cong.e .. lo"allnoctlon on Ihe ~&D <r.dll; au' economy "mply unnal .ffa,d it. 

In .ddillon '0 R&D , •• <redil. Ihe,e-chnoloiY ... clo. ""'"'''' .upport • • n .'leMion ol lwo oln. , •• pl~ns , .. 

p.ovh",,,,, on whk~ camp.onie. d,p,,"d 'o<ompr>le ob'OIId and w~ i, k ore Importa", to Ike U.S. ~wnomV: ~e 

• .eeptlon unde, Subp, rt f fo, th e kH>~-I" ou.h t,Ulment 01 p' ymt nts I>I:lw"en rt l."ed 'on!roll~ I",.ign 

,0,po •• HOM ICfC5) .nd al,o Ike <o,o lla.v .. «pilon I.,.. ""live lin.n<lnlln<om" . In 200ll. P",I",,,,,, Mikl' Deul 

a~d Frit. foleV 01 ,"",nld amj J.mE. I'ti" , .. al th~ U~ive"ity 01 Mid,i •• ~ 5tudled Ih" domestic elfecl 01 U.s, 

lI.m,· fore i." Inv.,'ment.nd lound th. , w ,h iove,lme"' is . "o<i.l"d with Inerta,o>:<! US. in.e'lment. wale,. 

"mlllaym.nt. ~&O 'pending. ood e.""ru.' The hllh-t~<h lodu.1r'/ d"P<'nd, "" • ..vIol ma.ket< a,ound th. 

woOd. nd Ihefoe p'a,;"i", .... e crud.1 to ou, . bllity to comP<'te . b,oad ." ~at we tin ",m.'n Slrang and ,,,,. te 

job. he.e., hom.,. 

Mr. (h.~ .n. we are ,udv 10 wa.~ wilh memt.."on both ,idf" 01 I~ e ",i<' not ""Iv 10 win app.oval 01 Ill' 

ulen"on ollhe ... '''VII. p,ov""'n •. but ,o OIl , hlWn8 the hxu,ol the U.S. I .. wde tO BIo b.1 com""'"'. n ..... 

Ou, n3!lori.OUtmOded ta. ""lid., .,. M ldin, u' back. and all""'inl lM<o p,o.-1«oo. In .. bOM, ..,onom" 

I'0wthlo I.p., ,,,,,,e, nogood ..... d. I ~now I;",hood I",m mv discu,sIon. wllh "'. dl~1 ,ecl>nololY ,omp.n'''' 

th.t ""po,at. la. policy i, a ma1<>t d,"'''' 01 wne.~ 10 Iocato Ihe no.! laCla.y or la,lIl(v •• nd th~ joDs lhal 

",,,,mp.ny It. Th."" crlt"31 inv~"m~nl dKI'io~s a,~ "'" • <lm pl • ..,.m. of <ala", and ",pply·chain a,blt •• &". 

V~ •• com matte' to comp.~"'" ~, Ihoy do 10 CU,(Ome ... bUI the facIo" thil lmpa<l coSts a'. mul! ~ 

dim.nllenaL wilh 110" by,]n ... 'lima, •. Including , •• poll"'l. ollen becom'n, a derldina facto •. 

UPB,.dlnll th,,-, •• cod~ will 110' Ioni waYI"",.,d. red" minH Am\!fl,o', ero""mlc le. def1hlp lXI.itlon. Manyol 

,he mOst pr<>m I~'" 1 compani..- in oo, cou n"y. and t.">i"", many '" lh~ toch .e-cto,. ~!d nol •• iSl or " '<t.o In • 

• "ry dill ... ",lo,,,,whon our ,ode w"I.51 reW!~len in 19&6. likeo,he' m.jo, m.'~e" hovo p,ove<! .• n 

up,roded la> c<>de muSI be ,.mple. with Inno,.'lon incenti.e,lik •• _ma"ent R&O ta. c'edit", it, h •• .,.o 

d ..... iMOV3Iion, camPelit)\o-en . ... ana loed job, he,e al ~am •. 

1\II.ln, w. th~nk YOY lor h~di ll .hl, lIo:a,inl.nd look IOfWO,d 10 workioll with YOIl and lheNbtommitter 

",embers 10 ."actan •• ,. " "",, 0 1 the,. ,a> OOl.n,lon. ,hl, ye ••• 10 be lollowed by [II",,,," h""''''" tox refo.m 

tho' place. a low. an " • .,in, job,. nal d."'ing Ihem la forels" ho.~., 

About III 

The 'nlormatlon 1e-chOOI0l'llod .. "", Caun<:llllTlj I. lhe p'.ml" Woice, advoc.te. and IhO"gM I.ade. 10. lhe 

Information "od ,ommunlc.tlon, II,-c;h""",1I' I'CTllodu.'ry, ITI i, widely !f,ognl,ed a, Ihe Io<h i"dustry', most 

fl e-ct"'" advocacy "'lon;'3tlon 10 W><hinlt"n. 0 .( .• aM I~ capltols~"d ~~y m .... " a,ouod!l\e world. Ou, 

me",l>I: .. a,. lead ... In Ihe la~ tier allhe Inlo'ma!"'n ' fld commu nication. le-chnalon ",cIa, In the United 

Slates ond " roo nd !he I'obe, .nd lnclua e e~ 01 !he world', SO lo,!.,1 comp.o, .... ""d ten Qe!tent of bOlh Ihe 

Fo,,"n. SO aM Fortune 100 [IImpan l .... 

, Ro ..... O. At.i<.,,,,O,Od !.tot! An ..... , IN. No. ~~: n .. CoJ<'{or~ M",. Ollu" ~gO raJ<ct-edII. 201l. I. 

t "lilli' D .. al. Ftill f .... Y .... d I.!m •• I't ..... DrHn<>t1< fff«t> of .h< forrigtl 04"' .. 1< .... of U,5. MIJI"",,'ionab. lOOt!, lA-IS. 
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Statement for the Record 

Of 

The International Franchise Association 

For The Hearing On 

"Certain Expiring Tax Provisions" 

Before 

Subcommittee on Select Revenue Measures 

Committee on Ways and Means 

U.S. House of Representatives 

Thursday, April 26, 2012 

International Franchise Association 

Jav Perron, Vice President, Government Relations & Public Policy 

1501 K Street NW, Suite 350 

Washington, DC 20005 

jperron@franchise.org 

202-662-0797 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.521

IFA~' Franchising' 

8uAcflrJII ' •. _-- ~hlrOh ... ... 

Chairman Tiberi, Ranking Member Neal. and Membe~ of Ihe House Ways and Means 

Select Revenue Measures Subcommittee. on behalf of the International Franchise. 

Association. representing the nation's 825,000 franChise establishmellls which suppar! 

nearly 18 million jobs, I thank you lor Ihe opportunity to submit this statement on tax 

extenders and tax reform for the record al this hearing. We understand that your 

approach In Ihls hearin,g is to review all the e)(lenders Ihat have expired or will expire 10 

determine which represent policy appropriately plIrsued through the tax code. 

IFA joined colleagues in the bUSiness community recently asking Congress to pass an 

immediate and seamless extension of the business tax-eKtenders this year which is 

cnlic:allo small businesses, rather than a piecemeal, ol1e-off approach, 

Our franchise small business owners need certainty in the lax code in order 10 make 

hiring decisions. By allowing the extenders package to go unaddressed last year. 

lawmakers placed a great deal of uncertainty on small business- owners. Moving forward 

now with only some of these extenders, while leaVing others aside, would only heighten 

the uncertainty causrng many small business owners to delay plans for job creation. 

IFA believes the pacllage of ta~ extenders shoukl inctude provisions such as the 100 

percent bonus depreciation. 15-year straight-line recovery for qualified leasehokl 

improvements. restaurant improvements and new construction. and retail 

improvements. and the Won.. Opportunity Tax Credit for /ower's killed won..ers and the 

long-term unemployed, among others. 

IFA is a leading member of the Broad Tax Extenders Group, which represents business, 

individuals. organizations, and commul1ity groups. We sent a letter to Congress before 

Ihe 2011 adjournment urging Congress to pass the business package of expirIng tax 

provisions. These key incentives have an impact on a wide range of activities Ihat help 

spur economic growth, lob creation, and job retention. DespFte bicameral, bipartisan 

support for these provisions, Congress failed to extend them. 

Unfortunately, President Obama in his Administration's 201 J budget proposal to 

Congress Included ollly some tax extenders supported by the small business 

community such as extending for a year the ability of ali businesses 10 immediately 

deduct all of the costs of equipme1'lt arrd software purchases. And then. In late 

February, the U,S. Department of Treasury released President Obama's framework for 

reforming Ihe U.S. business tax system, The President's plan called for only a few of 

the business tax extenders to be e.rclended like the R&D tax credit. 
588 

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IFA applaoos tI'K! focus that Congress and the AdministratIOn have placed on our 

nation's economic health and we look /olWard to working together as more kleas and 

proposals are crafted, 1Mlile there are still many unanswered questions-, we will wor\( 

with vou 10 resolve them so thal franchising ~ one of the most job creative segments of 

our economy - can rema,n an Innovative force in this economy. 

Franchising is a crea!IVe and Innovative force In thiS economy. The International 

Franchise Association Is tt]e world's oldest and largest organization representing 

franchising worldwide. Celebrating over 50 years of excellence, education and 

advocacy, IFA works through its government relations and publiC policy, media relations 

and educational programs to protect. enhance and promote franchiSing, 

As the oldest and largest franchising trade group, the IFA·s mission js to safeguard Ihe 

bUSiness environmerli for franchising worldwide. IFA represents more than 11.000 

frarlchisee. 1,1 00 franchisor arld 575 supplier members nationwide. ACOOI"dillQ to a 

study conducted for the IFA Educational Foundation, there are over 625.000 franchised 

buslrlesses across 300 different business lilles that provide lor nearly 18 million jobs 

and gellerale over $2.1 trillfon to tile U.S, economy 

,5(l, K~~'" lO W. _J5(l ~ CC7OOO5 lISA 

_ ' \2O"II!I2&.eOO!1 f""· \"'_lI.(II!li __ _ 
589 

Statement of IntegEner-W 

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Th e Wind Ene rgy Prod uctio n Tax Credit 

For Continued Technology Improvement 

In such ~n ... Ili!dile<l mode •• wind ene.gv technology has been under since il' inception only th.ee or 

fou r decades 3S0, the re~3rch and development has nOt received Ihe mention that il ordinafilywould 

have received, such short cOts . making use of ofl·lhe-,helf components and hand·me-down 3~dl>on 

aerodynamic. welf known 10 ~av" been acce pted practice sine .. day o n". The frequent wind turbine 

manufacW'er b~ikupi and mergers In the\.e ~yeJrs Il lellimony enough of Ihe difficulties found. Thls 

I •• hort.ightedn",. neceliitated by the idu_li.m outpadng Ihe f''''' flow of capll. I. So it i. lhal not only 

are 10b'lh,e'lI!ned if lavored I •• trealment i. denied b.,lalm lhe inve"o<. a,e eh.,ed away, ullwillinglo 

a"epllhe risk •• 

As a small bu.iness, Inleg(ner.W In Teh~chapi, california has-assumed Its own COliS wllh linle wpport In 

m3klng good on a p,omi.e to u'''' micro .ule lelllniIn Ihe i""",.112a!lon of fleW Id a~. Ol!>erwl", ",en~' 0 

habit ,n need of being broken, lh~ indunry continue. I" leap direc!ly in!o bu ilding "nly a lorge, .ing~ 

p,ototype be or~ laking on se.rlal production of new , h,gher r3ted systems, The d~"illake It.e. hindmost. as 

! he ,aying goe" 

lhe environmental pre rogalive. are well enough understood., creating the in<emi"",. Wh3tl. nO! yel 

gener.olly giVen credil ;s how Klme1hing a, 1);0 51< is ilr ca., ~~y SO man~ Irtc~!. "The beha.-Ior 01 flUid! is in 

many respec" very ;ntere"ing and unexpe<ted", 5iI;.t Rlch3rd Feynman, !he Nobe l pri'~ winner in Physics. 

I! often apl*3r510 uS in Ihe WOrk we do that whal hasl>een learned!n a~;ation must be doublt>d again I" 

goinK forward in Ihe pu"uil of wind energy. 

Spealctr1g of ai, •••• ub""",e,l! 1. with exciled and emotiona l rhelorlc Ihll OIlr enlerpri.e communlcat .... 

wkal i. pl. in fact. One cubk y.rd of",~1 air h •• a rna" weigh! of two pound., Ihe ... mea, a quart of 

water. Air doe!n't hav", 10 be moving to have weight. ThU! One Ihoul.3nd c\lbieyard. 01 air has" rna .. 

weight of IWO Ihou,a nd pound!, Or one Ion. One Ihousand cllt>ic yard! Is hard ly Ihe volume ta ken UP by 

Klmelhing 1M. Ihan a fa rmya rd Darn. Unseen, air M. a p~Sfnce not al all in.ub5lanlial. 

50 what i< wpponed by in !hi. testimony i. a cont1nuallon of !he wond ",ne ra' developmenl 

lethnology PTe. There [, onlvone ",iSlaM Ihal Can be made -lettinK wind energy fa~e •. Nothing else15 of 

anywhe.e nea , Ihe ,a ~ g"''';tv. 

Anthony v. C!>e"ick, M.S., Managins DireClm 

nt eg£n ·W www.intege ner.com 

Tehach<lpi, ca~IQfllj . 

&61812·SZ21 elff~ ~ 

&61 972·2449 ce ll 

lony,thelljclc@integene,.com 
590 

Statement of Interstate Informed Citizens Coalition, Inc. 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.524

u.s. Hou .. • of Repr ..,ntat Yi" 

Committe " on WaY' and Mean. 

Sub<ommlttu on KI venue Mu.ur". 

April 26, 2012· He.,ln, on C"naln exp lrln, Tao Provl.lon. 

Commen ts Submitted for the Record 

The unde .. igned re,!<Ients and ro~rty owner' of Ih~ Slale of Michigan re.pectfully submit Ihe.~ 

<omm n~ In re'ponselo th .... SuDcommlttee ·, April 26, 2012 Hurlnll on Cerlain hplring Ta. Provi,ion •. 

Our comments ~re limited to the Production ra.o..dit (PTC) for wind energy. 

executive Summary: The PTC i. ott n credlud for mo.t of the ,rowlh In Ihe wind ,ector bUI amibutln, 

ma ' ket 3ctMIY 10 \l>e subSid y I. <M!fly simplistic and f3jls totonsider other cruci<ll iaclo" drlvlne 

developme nt. Whel' evaluated ag3ln,' key economk and envlronme", criteria. Ihe cost Ol llle subsldV 

has p'OV"I' e xcessive and the be/lefils 10 American taxpayers mlnimaLlf!he PTe we .e to e xpi.e . the 

economics of the Industry wo uld Shill 10 States with .enewable mandale,. Power mat~ets will ultlmalely 

<on l.ont th~ tnl COSI of wind ener8V. and price ~ acco rdTngly, Th" overalllmpaCi on the Ind u,lry would 

be far le.s ,ew~re than proponent! clalm'_ 

Supponln,SUtemenu: 

Hl,h CO<1: STnce adopted In 1992, Ihe. Call 01 ~e PTe'or Wind ene r8V has ballooned from SS 

mllllonNea. In 1998 to $LS billion annuallytodav_ Tne open·ended s ubsIdy 01 2.2C/kWn In alter.la~ 

Income rep resents a pre·13. value 0/ appro'omately 3.7C/kW~ n many teBlon~ 01 the counlry Ihe PTe 

now equals. or I, ,reale r Ihan. Ih" nol~l" price of power. Even If Ih" PTCw"'~ to wnsel. Inpal"'r~ 

are stili obligaled 10 cover neatlV $10 billion in tax cr dit~ for w,nd projec1, buill In the la<l decade. this 

Is!n addition 10 the $15 billion debt for wind project< eligible under Section 1603 (Includin£ anllc!paled 

2012 grants). 

In effide nl: 5i,\<e the PTe;~ un"orm .cross ~e rou"trylll~ highlY Inefficient. supporting poo.IY51led 

dewelopment In some .reaS while in othe/ a.eas supporting projects Ihal wou ld have been built 

regardle5.Sof the credit. T~ls is Iru e In Tnas afld the P3ciflc toorlhwe5t whele Wind CiOp3Cily u ceeds 

Iransmission capacltv and wind is <unalled'. In New england Ihe PTe likelY pays mo re subsldV than ~ 

necessary owing I{) agg~si""Sta e manda tes. Ulilitles In toew [ngland routinely sT,n lon,·te rm power 

cont'acts tor wind at ptices sig nificantly above ma rket. 

Ofher factor. adva ncing wind deve lopment! The Indu<lry in"n.II', al r1.k of a slow-down withoutlhe 

PTe. ThT' view Ignores other e.udal lactors drillin. de ""lopmenllnduding5late mandates and nalural 

'''' p.lces. II I, not possible ,iven available dala lo identify !.he eXle nl to whIch the PTe has conlribuled 

to grow!.h in I~e ~or'. In /aCI, dem,,"d for wind lin .roded recentlv du., In pan, to "ale. meeHn, 

the ir renewable mandale •. Lower natural Bas prlce,funne ••• duced wind', allractivene .. , a 'fuel 

'u_ . t,OI lOll (""I' .. ...,. .. r .. "m"". "tIjI"/I .. '.'n,""" ... __ " .... .tKo .. mittft._ti8o"0Q.·ond __ <>I' .. t· 

...... Qm..,IH .. _~ ,. "d ...... l,on,.,.nt-:li ~~jOI nt ......... 1 

• >oint ("",,,,'tt ... "" , ... ,jon, P< ... ." lo .. """ , •• 1·9'ound ~"""'lt T. r ... c...d!t.I 'orllr<lfkny ProdlKfio<> f""" Ro.rw _ 

_ "" , [20051 t. htt"'''' ......... ,i«.I ... lgubI;uI .. "' ... tm'7f\I''<>'Oto<1'"''""&i<I.I~1lI 

Page ( 1 
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S3ver·. The EIA now loreusU 1131 growth in Ih~ wind S<!'Clo, lor Ihis d<!'Cade regard lessof w~31I\appen~ 

wllh the PTc'. 

Job k • .,n, Despite billion. In pUblic fundlns Ihe wind .ector experienced a nello," 01 10.000 direct and 

Indlrecljob,ln 2010 bringing Ihe tolal lo 75.000' job,. Mo<! ollhe remJlning jobs ~r ~ temPDrary 

construction po"llons requiring peak level, 01 development vear-after·ve~r to mainuin current level •. 

Allempts \0 altribute job ('eation to the PTC muSI be tempered with cOffespendin&job losl-esdue 10 

higher renewab le energy pr"''''. The Sl3te of Vermont found Ihal addingjun 50 MW. of renewable 

"nereV at nigher_tnan_ma"el electricity prl~s "had the deleterlou. eflecl< 01 ~hufflln, consume, 

~p"n ins and inuea.ing the to~l of production 10' Vermontbu.ine .. e .· .. u.S! vu,. ,,,,,,I electric 

ratepave" in Minnesota paid more than $70 million In abO\le·m.r~et "nerg~ pri""s due 10 the high co,t 

01 wind'. 

( nvlronmen!al bene fits: Wind energv I. an unpredictable. ~ar;able reSO~fCe that C3nnot be ,elied on to 

.serve o~d. 115 primary benefit is in redu"ng U.s. elendc carbon emis,ion5_ According the Na"ipnr', 3 

four vea, exte",lon of the PTe <<I<Ild avo,d an inCfemenlai170 million to", of C02 This "be>! cue" 

estimate i. not p,il"diC3led on an iel".1 work,n, grid region, bul if we "CUP! Navig.nl·. estimale the 

co>l te t .. pave .. i, at le •• t SZ3/ton CO~·. te n-lime. the Sl.9~/ton market prke foroHsets in the 

Northea<t"rn <lat~' participating in RGGII The PTe I. a hiln.prlced lIehlcle la, "e<y q"e~lionabl~ 

'eduction, of C02 emi,.ion •. 

Concl ... klO ' TI>e bV question i. whether the benefjts of the PTC 1o. wind are wortll th .. co.t. This JOvear old ,ubsldyl. expen,ive. InefficIent. h.s Jailed to prDdyce net.job [ncre .. e. that r~ .u.,.lnable, 

and Ihe co.t applied p"J Ion of C02" mOre \hon 10>< the ma,kel prke of urbon under IIGGI. The U.S. 

power market ha, undergone "gniflcant ch.·nge .Incelhe PTe was adopted. Includin, deregulation. Itls 

Mt ponlble 10 i.olale tn e ~tent to which the PTe <cmlribule. to wind 'ector g,owlh". Without the 

PTe, project economics would .hll\ to ".te. with liPS polrc'e •. The "alue of renewab le c,edits migilt,;", 

in ,e.pon,e but power marke," will ul!Jmaleiv can [rant the 'eal um 01 wind energv, ind price 11 

accordlnelv. 

' Wi •• " ... d 11<1, ...... . NO",· No "''''!I>.''''""' ""' ..... " 10 <""f.,,,, joI> <O\jnt~ Sl"", , ,.., .... ioO" , .. . ~,.!<I\y ... , .. 

....... toni,""'''' ,,, ""', ... ; ..... ,,,. coJ< of .10< "' ~y. ,h., "H'" .,,,,,,,,,,.1< <!O--,~.,yJ ... 

• VT Df'~ r~. f"CO<H>"""'",-" 01 V..,.,"", ,_Ito 10ril/, 11OCJ!I) U 

hnp"'''''b'"''-v1t . ... '''''''' .. "''''I'''.nn.na/O''' ... ><lWh.,$ .. lOP . .. ..uoo._:ro.n''1fl Il '~' r>d! 

' W."S" ... _r~.Ic;.,.g<"<I"" 'M Wino"IM>y 1flll) 

h"p'"""~ .... 1j.<""" • .urleiYlOOOI.14052701J01>u_51n6'1 •• OO61g l.1O.1"""I __ '."" .......... 1 

• N...-ls.n, p,""'dooi no rioU~ on Mw ~ <!<to''''_ 01".". ''''' , ......... 'u"'"" "' .... ~"" _Id .... bU1ft ,,"\/>out ' ... PTt ,.-..I 

....... Ioo .. d .. ",,,..,,..,,,t bo .. m .,..' • I'Y" IXlll-'&). '1>0 co<1 ""' 01"" b ",,"'ntio>ly h'c .... ,10 ... 11/'''''. 

Page I 2 
592 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.526

Submiued by: Kevon Martis 

DI,uto,-lnterst ate Inte,med Clti.en', eca liuOfl, I"" 

101 £. Adrian St, ... et 

al;l~ne d, MI4'1218 

517-403-2438 

Dale ,ubmitted: M~V 10, l012 

Com",~nlS submItted on behalf oflhe following resfdemfand ~rope'ty ownt'fS 01 Mkhlsan. 

,.~ SIf~et Add, ,; City Slate '" lin ... u e and Rona ld Von Cilmp 6346 £ Honon Rd. el;.;,fi ... ld "' ~9228 

Eric Mmis 8612 E Mulberrv ReI Bli.sfitld "' 49228 

Ron ~nd Kale Simon 13131 Neu.oth Hwy J"per "' 49248 

Olvid R P,ice 5359 LL Rd Garden "' 9Sl~ 

Chuck .. nd Abby Bult 2670 Herron Rd . Frankfort "' 49635 

51""" and Sue Catter 7868 Holrnmb Rd C!o,~'ton "' 48148 

W3ynelyn.eh 808 Munge, Rd . eay City "' 48108 

Annel!e anll U( t OuRussei l~ hll Brown ROid Munger "' 4814 1 

(']'11 L Curtle 301~ S. Supe.lor St. Milw.ulee W, 5H01 

Ellzabelh kornacl<l 130~ Oilloway 0<;"'" Mldlan<l "' 48640 

An d.ew Plodennic,.k 4305 S. l.ke, ho,e 0,. Lu<l,"gton "' 49431 

Don and There .... Oa"., 2457 S. O .. dlo,d Rd . R"",e "' 481S1 

J~ryI CC"iby Ull G.~<~ lid Fran klon "' 4963S 

Dud and Oonn'~ Cole 18480 St. Pi~,.e A<cad,a "' 49613 

Tom "nd h cen Som~..,ille PO Box H 1. 16630Ware M . Arcadia "' 49613 

Ron ald H~ye(ly 3778 Cnwlcrd RO<Id Fr~nklcn "' 4963; 

Diane Zimme rman 10528 Riza Hwy. R,za "' 49176 

Ho..,ey langworthy 4SOS Wiko. Rd . Hall "' 411842 

ede(lc~ I'rinsle 1460 Walervale Roa<l A.udia "' 49613 

Ha..,ey Ilongwortlly 14+978 Otuwa liI, e lid. Onawa Iloke "' 492 67 

Jare ElJ.!le been Un8 Oak G.OW' ~<I . Grand Have~ "' 4'}4 11 

(hris!ine Smllh 8468 Kl"ll Rc.d een,~ni. "' 49616 

Rod Merrill IU3 W. Bhh Street 5conville "' 494.54 

Gto'ge a nd Marsha H",,~ 4189 we" Hawley Rd Lud,ngton "' 4'}431 

Mark Bischak PO 80. 26 Arc~d a "' 49613 

Nancy Tavl o. U5 North QUMi",,,ee R",,<I Ree,e "' 40151 

Heid i HISI.d 1740S. NoleiRd Munger "' 48747 

Oi:nise Hughes 10761 Wilshire Rd . Munger "' 48747 

Mon,ca E .. ~nmache, 202 Norfolk Midland "' 48 £040 

f re<lPatri<:k 2864 125th Iwe. Allegan "' 49010 

Oi:nis Holco ~ 2281 Summit Dr F'a,,~ ort "' 963~ 

Oi:e Dennen . 5cot1~ille 

Oaniel5<;hwyn 10494 Jl. Highway Riga "' "' 49276 

Page t 3 
593 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.527

Olno Picelnn! S4()S E Horton Ro.d BII .. f1eld "' 4':12lS 

jash Vilnc-.m~ 3883 FOk ~ Rd j •• p~r "' 49~48 

~.ur3 Viln camp and Sr.e'm~n \I'own 6867 Scotl Hwy 8lis.lield "' 49218 

00olgl31 C.'te' 17411 3,d 51., PO 80~ 140 ..... e.di. "' 496ll 

Colleen and 03.id Plum me, 6533 Ba .. Lake Blvd Pentwater "' ._, 

Cher; Wells "pd George Cluehev 2583rdStreet Penlwiller "' ._, 

RQblnT.lsmil PO 80"' 104 Honor "' 496040 

Wayne Anderlon 

FreeSoil 

john Morons F,eeSeil "' Kurt and M.", Krueger 6461 Oentle Hwv 8l:n,on>e "' "' 49616 

Victo,la B,ehm 15075 Countv Line Rd TUstin "' .~. 

C/lafle. Hen", 6599.5\'1"3 Su"" ~d Ca.""We "' 48725 

~abert 8riet.ke 6773 Forty Mile PI. Road Roger5City "' 49179 

(ral,and siI"OO" Goble 17725 Butwell Rd Bea, la"e "' 49614 

ler", Punch 4469 Satinwood 0..1\1" Okema. "' ..... Deb Neg'i·Ja'k$on and Oa..,d W, 

Jackson 11200 Belleneur Drive Bear Lake "' 49614 

Mlm Van Nortwick 3396 W_ Hilwley Rd_ ludlnllton "' 49431 

M.-flene_nd Ronald Smilh 11198 Aod.,ilie, Hwy, Ouawa lake "' 49261 

Su,an North ':Ill W Be

ver M Ludin8ton "' 49431 

Ma",Nowak 4234 N. Wa~hing o" Ubly "' 4847sG,eg Stein 8724 Neu'oth Hwv BIi~~fi ld "' 49228 

Tom and Hoan [Iai' PO Boo 129 Ludinglon "' 49431 

G'elChen Lovett SlOllai<e Road Rudin, "' 49283 

G,egcry G'een 5660 lutille In. Rudfng "' 49274 

ROMort .nd Oebor~h Mol~an 5200 Munfo,d lid Minden (ily "' 48456 

Jpan "'-nn .ndleftrey Siegler 7779 Thomp..,n Hwy BII .. field "' 48229 

Chaile, ~nd Glori. ve.r 

lIu •• and Ola"a Meld 10052 Croci<~11 Hwy Blissfield "' 49228 

Jonalh. nand Shannon Ray 1265 We't ilwl ~ ROiId ScotMlle "' 494S4 

Jeflrev Buler 4489 E. Deer Road Allen and Grelon.n OberdJclc 257B Bluff "'" Readf"g "' "' 49274 

Rob ilnd Holly Nel,cn 28)9 

W. Chawe, Road Scotlville "' 49454 

KimCambal 12802 CrockSII Highwav 

BI",l

ield "' 49H8 

Oallid Guertin 3830 Duryea lane H,llIodale "' 49242 

John Kfeinbrlnk PE 1037 North Fe,,,, St,eet llJdington "' 4':1UI 

Clay eherbom 6064 Dulty Road ca,,,,,ille "' 48125 

Vale,ie McCtllurn 6064 Duf

lV Road CJs""ille "' 48715 

Ryan lefief 6064 Dufto,o Road Cile.ille "' 48725 

Rob"rt lefiel 6064 DultV Road C~,,,,,ille "' 48725 

J3me,1 Fuse.lda 42495. W~ite~ill ROiId Cedar "' 49621 

J3nl. campbell 442 Heather Ridge T~il Beulah "' 49617 

John [orrl ...... u 7415 Hendrick. lid Blis'field "' 49218 

Eric lefferle . 49M5.Slile,lId Ludlnxton "' 49<13l 

tJsbelh S~'~~h 6014 Flke Ad 81i .. fleld "' 49228 

Page I 4 
594 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.528

P,uid, Irvin 6024 me Rd BII .. l1eld "' 49228 

Aldan Malecka. PO Box 139 CU'ler "' ,,,, $ul3Me W.tgle 330 M3~le $1 fs~ field "' 49228 

Rober! and 8a.ba •• WI<!U.en 

86405 County I.ln~ H· .. V ~Ica "' 49276 

Jim and Bmw Eo"", 4868 Crawlo,d ~d, 

FO 110. 89 BenlDn;" "' 49616 

M 8u"y~,k l PO 90~ 341 8emonl" "' 4%16 

Evelyn Berg.il. 2908 W. senheime ' Ro~d Llidinglon "' 49341 

cnarle. Cory IllRioe, Or Blis<fi

eld "' 49218 

evl" and Kelly 5m \~ 36705 GrosvtnOJ Hwy Palmv" "' 49268 

M.ttEm~ry &734 BenlleHwv 8i:n,oni. "' 49616 

Greg and C.,olyn Horvath U499 Yank ee ROlld Ouawa LBke "' 49267 

Y~te8,ooh 602 Rumson (oun WMi

!eLoke "' 48386 

jim and Angela B'enn." 64851. Ann". Or Holland 0" 43S18 

(rafc.nd lo.n F.nknauou 651 Glen Abbey lJI Holland 0" 4]Sl8 

Julia Pecnlivanos 4343 Beverly Dr

ive foledo 0" 41614 

Mal. Radjenovi< 4718 Cour>try Walk lJI Sylvani. 0" 43560 

Su .. n and 11m Waite" !IOU Talsold Hwy Riga "' 49276 

IO;>f1ne B 3417 Henon Road Frank

lon "' 496]5 

C.rl Anton 313M.inS! AUK".ta ., 54771 

jaCk Schneider IU9148 ~ 

Kenneth Wieber ;048 N Wright ~d "' Fawler " "' "' 48835 

KtNlr> Green 4419 Rkke, Hwy Bli .. lield "' 49US 

J~me5. Beth~nv. ~nd Ann~ AmIck 11214 US HI I~way221 Riga "' 49276 

Michael and Colleen AngeVine 92;0 Rode'l ~r Hwy Riga "' 49276 

John and Eli~a Atherton 11977 Maiden Lane 5t Ri83 "' 49276 

Vincent and Ch~ndra BaChmar> 123 1 5ilbe,horn Hw~ 

BII .. lleld "' 49218 

Robert an d Beverly Baide! 9702 Muiller", Road 

Bli .. ~ld "' 49228 

Milthewal)d Kristy BaTrd 7605 Rig, Hwy Riga "' 49276 

Jenevieve Bakel 10084 Sllberhorn I1wy Sli .. field "' 49118 

Pamela Bankert 12580 Y.n~ee ROlld onawa like "' 49267 

Jame~ ilnd ludlth Bitrr,,!! Inn Rode.ile. Hwy Ou>wa llIke "' 49261 

Michael Bakalis 12253 Rod"

, ile' Ilwy Ottawa Lake "' 49267 

Philip Bave r 13536 Biermon Rd Rilla "' 49276 

Jennifer Bayer IlS67 Bierm

an Rd Rilla "' 49n6 

Richard Beauregard 9&07 Rode.l

ler Hwy Rica "' 49276 

Vicky Beauregard 9607 Rode,l

le r Hwy 

Riaa "' 49276 

JeSSe BeaVer 7416 Bl!fkey HWy Bli .. lield "' 

49US 

Silndra Beaver 74

16 Be ,""", Hwy Bli .. li

eld "' 4922S 

Dennis Beaver HI6 Berl<ev HwV 

Blfssfield "' 49228 

Jesse Beaver 7416 Berkev Hwy DII~slield "' 49228 

Rachele Beaver 1416 Be'ke~ Hw~ 

BII .. lleld "' 49228 

Terry Seaver 11416GusiM ",p "' 49276 

David Be'ry 12401 RoOe!iler IlwV Ott llke "' 492.67 

Page I 5 
595 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.529

Mindy Be rry 12401 RodfSiler liwy Ott.W3 La~e "' 4,}261 

Joyt:e Binns 8041 Berkey Hwy 

BII .. I1eld "' 49228 

J~me~ Binns 93lS Berkev HW'/ 

Bli"f<eld "' 49228 

laura Binns 9338 Ber~ey Hwv Blissfield "' 4'}ns 

Fred Bin ns '}4S0 Berhy HW'/ BIi,~f;.ld "' 4,}llS 

GermaIne BlnM 94~ Berhy HW'/ BIi .. fi ~ld "' 49HS 

Julie BoX!( l00':11llpp Hwy Riga "' 49216 

Elizabeth Boss 100':11 Upp Hwy Riga "' 49276 

William Bo. 14417 Yan~ee Road Ouawa l~ke "' 4,}267 

Donella Bo. 1441? Vankee o~d Ouawa l>k~ "' 4'}2G? 

Rob.n Boyd 11415 6erk~v HWV Bliuntl!! "' 49U8 

Gri'Sory Soyd 11415 Serby liW'/ BI .. ,fjeld "' 492 28 

James Buechele 11426 County Line Hwv OU.",> t..~e "' 4'}267 

John Buechele 

14655 Maul> Roa" Ouawa t..ke "' 49261 

Jennifer Buechele 14655 Maulll!oad Ottawa t..):e "' 49267 

Jamie Suechele 14655 Maull Road Ouawa La~e "' 4,}2G7 

Jessica Burkett 83S8 Belkev Hwy 

BII .. I1eld "' 4,}22S 

Gary Burkett 9471 Thompoon HWy Blissfield "' 49ns 

Willi~m Burns 14689 Yankee ltd Ottaw. l •• e "' 49267 

~UI1 Buyak1 13341 Yankee ltd Ott.w.l ••• "' 49267 

Emery Buyaki 1142S Yankee ltd Ottawa lake "' 49267 

Jean BUYik, 13425 V.nkee I!d Ouawa t..ke "' 49267 

Brian Cairo 9213 MulDe",. Road I'~ li tl" "' 49228 

Jennlf~r GIiro · 9213 Mulberry Ro~d BII.sli

f ld "' 49228 

Rochelle J..in~y 778 1 i, a flW'/ Riaa "' 4,}l76 

DianeW~ber 77S1 Ri lla HW1 ~i.a "' 492 76 

Ronald Chandler '4648 Vln~e~ ltd Otl wa Lake "' 49267 

Karen Chandler 14648 n~e~ ltd On~w. t..ke "' 49267 

Matthew Clark 14852 Ouawa lake Road Ottowa t..'-e "' 49261 

Jenneter Cla rk 14852 Onawa lake Road Ottawa t..ke "' 49261 

D~bra Collell 1.1251 C~metery Road Riga "' 49276 

hweli Crockett 11931 W.8~erR,,"d R;g3 "' 49276 

Sophie Crockett · 11931 

W. ,ner l!ol d Risa "' 49176 

tarry Dangler 7573 Ria31lwv Rip "' 49276 

Nancy Dangler 7573 Riga flWV Rig" "' 

49276 

David Da nsler 1140 R,sa flWV Risa "' 49276 

Deborah Oaneler 7140 Riga flwy Riga "' 49276 

Danny Davis 77.!8 Rip flwy R,g" "' 4,}276 

Joel Da~ s 11934 Wegner ltd R,g~ "' 4,}276 

Leah DaviS 11934 Wegner ltd Itig" "' 4,}276 

Peter Demu.ky 12311 G"'tRd Rlaa "' 49276 

MarCia Oemusky 12331 GuSI ltd Ri,. "' 49276 

Page I 6 
596 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.530

Walter Demusky 12611 Gu.~ Ad Ri

ga "' 49276 

Kathy OemuskV 12611 Gu,t Ad Ri,,, "' 49Z76 

Maurice Oenecke' 12791 US Hle~way 121 Mila "' 49276 

Jean Oenecker 12792 USHighway 223 Ri8" "' 49276 

George Denecker 12822 US Highway III Riga "' 49276 

Madeline Dened;er I2H2Z US Hi~hwav lH Riga "' 49276 

Michael Donovan 11479 Wenon lid RI,a "' 49276 

Barbara Donovan 11479 WU10n lid R(g~ "' 49276 

Kathleen Durham 7385 RIBa Hwy Riga "' 49276 

Matthew Durham 73BS Riga Hwy RI,,, "' 49176 

Paul Dusseau 8788 Berkty Hwy Bliufltld "' 49U8 

Sharon Dusseau 8788 8erkey HwV BI",fleld "' 49228 

Peter Dlfad 12695 RirlKe~ille R~ Oft .... a l.o~~ "' 49167 

AmV Dliad 12695 Ridseville lid Ouawa l.o~e "' 49261 

Karson Edgar IlJl';lGu<llld Ri," "' 49276 

Charlene Edgar 11319Gu,\Rd Rig;! "' 49276 

Clarence Emcl'! 1S06 County un. Hwy Riaa "' 49276 

20la F"rrar 13220 US Highw

ay 12) "ilia "' 49176 

James Fllipe~ 12902 

Sllb.,ho,n HWY Bli"fitld "' 49228 

Elai ne Filipek 12902 

Sllbe,horn"lVY BIi, .l d "' 49228 

C~ad Fisher 11205 lIerhy tiwv IIli"fi.ld "' 49228 

Laur;! Fi

, her 1120S Bforkev tiWl! 81i$<fj~ld "' 49228 

H~n"l Fi,her 11780FikeRd Riga "' 49276 

Sand", Fisher 11780 FikeRd Riga "' 49176 

Richard Fojtik 7100 ~ig a Hwy RI ,~ "' 49276 

Daniel Forche 11991 Thomp<on H .. y BII"fltld "' 49228 

Deni,e Forche 14287 US Highway 223 Riga "' 49276 

Jane Forsaes 7437 lIerhy HWY 8li .. fleld "' 49228 

Donald Francoer 1081 Berkey HWI! Bli .. fi~ld "' 49218 

Karen Fr~ntoer 1081 

S. rkpYHwv 8lr"field "' 492211 

William Frantz 11345 5i1be

rhorn tlwv Riga "' 49276 

Ma"lFranlZ 834S.sHbe,y,o'n HWY Riaa "' 49276 

Timothy freeman 12151 Van 1I",en St,ee "ilia "' 49176 

Keith Freeman 12157 Van S"ren Wee Riga "' 49276 Violet Freeman 12157 Von lI"ren St,ee Risa "' 49276 

Sara Freeman 121.57 Van Su'en Slree Riga "' 49276 

Jose Garlil 11946 Wegne, Rd RiS~ "' 49276 

Gloria Gina 11946 W.gne, I(d Ril" "' 49276 

Pedro Gana 119

46WfgntrRd R;II~ "' 49276 

Micha!'1 Goddyn 11880 Sllbe,ho,n liwV BII"field "' 49228 

Oeanna GoddVn 11880Silbe,horn HwV ~.fltld "' 49218 

Daniel Goddyn 11880 Sll~'ho'n i-lwy BI .. ,fltld "' 49U8 

Page I 7 
597 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.531

Wendell Gaell 7211 RIR~ I-Iw1 Ri, a "' 49276 

Alice Goetl 7211 Ri,a ~W1 

Ri,. "' 49Z76 

Kef)d/<l Gael 7212 Riga ~wy Rill~ "' 49276 

~arie GoelZ \2342 Rig. ~W'I Ou wa lake "' 49267 

Scon GaelZ 12342 FHR' HW1 Ouawa lake "' 49267 

James Go~tz 7592 Rode,ile. Hwy BIi .. fi ~l d "' 49HB 

Susan GOelZ 1592 Rode,ll .... Hwy BlISsfield "' 49228 

Sle~en Gorniak 10545 Horton R03~ Riga "' 49276 

Tamara Gorniak 10545 Horton Road Riga "' 49276 

Anila GOld,iewsk1 7017 Ri." I-Iwy Rlaa "' 49176 

Ronald GOldl;ewskl 7077 

Ri", HW1 Ril. "' 49n6 

Denni§ Green 84115 Thompoon Hwy BI .. sfleld "' 492 28 

Dema Green 11405 Tnompoon Hwy 

BI""lield "' 49H8 

Raymond Gr;ttln 85~T.ssold Hwy Riga "' 49276 

MarvGriffin 115~ Ta8sold Hwy Ril3 "' 49276 

William Honn 8615 Tagsold liwy Rii'! "' 49276 

Pamela Honn 8615 Talil.o1d Hwy RiS" "' 49276 

Edward JeHrey 1997 Riga ~wy Rilla "' 49176 

105€'p~lne Jeffrey 7997 Risa HWI' Ri", "' 49276 

Ted Juds.on 12032 Sllbernorn Hwy Bli, ld "' 49228 

Janet Judson 12032 Sllberhorn I1wy Bli"Ii.ld "' 49228 

Da~id Kimmelman 13505 us HI

8nway lZl RI,a "' 49276 

Deborah Kimmelman 13505 US Hlghw3yl23 Riga "' 49276 

Eusene Knoblauch 13696 Mulb~,ry I\o~d Ot!~W3 l~k(! "' 49267 

Palricia Knoblauch 1l69c MulMrry Road Ottawa lak~ "' 

49268 

Paula Knoblauch B69f> Mulberry o;I d Ott ..... La~ "' 49269 

Asnes I(noblaucn 12853 Mulberry I\,ud Ott.wa lake "' 49269 

David Koppelman 78S0 Riga I-Iwy Riaa "' 49276 

Betsy Koppelman 78500 RI", I-I .. V Rip "' 49276 

Thomas Mlnoske 9728 RI," Hwy Riga "' 49276 

Shannon Minoske 9728 RI", Hwy Riga "' 49276 

Dean Nieman 11856 Berhv Hwy 

Blloslleld "' 49228 

Barb ara Nieman 11856I1erk~y Hwv 

Bliosl>eld "' 49US 

lohn Ostr .. nder 1\249 Otl~ .... a l"ke R03d Bli~slield "' 49228 

Susan Ostrander 11249 Ol!~w. l~ke Road BliuH.ld "' 49228 

laura Ostrander 11149 Otta .... a lake Ro

ad BIi .. lield "' 49228 

Julie Ostrander tll49 Ottawa La~e Road BI ... field "' 4922a 

Karen Ostrander 11)49 Oua""3 l.~e Ro~d BII

" rreld "' 49228 

Kalle Ostrander 112

49 Otl3WHike Road BII"field "' 49228 

Joseph Poes 7SSlaneSI BII .. lield "' 49218 

Sally Poe'S 755 l.ane 51 Bli •• fleld "' 4922S 

David Portah. 7312 Riaa Hwy RiB. "' 49276 

Page I 8 
598 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.532

U.a Portala 7311 RIR~ IiW1 Riga "' 49276 

Aimee Portgal;} nil Ri,a i'lW1 

Ri,a "' 49Z76 

Dianna Raine 11757 Berk~y HwV 

Bli .. fleld "' 49228 

Chad Raine 11757 Berlcey rlwv Blissfield "' 49228 

Da~jdSav1l!r 7790 Be,hv Ijwv Blissfi.ld "' 49228 

Connie Sa~ll!r 7190 Berkev Ijwy Bli"fi.ld "' 49228 

Ma"l5edlace 11875 Tl>o",l'",n Hwy Bl iufield "' 49228 

Ga"lSedlul! 9188 Vank.e Road I'~Ii.ld "' 49228 

William Sell 1318 Si lbe ,ho,n I'IWV Riga "' 49276 

Monka Sell 8lZ8 Silbe,ha,n Hwv RI,3 "' 49176 

Joreph Shrader 9318 Mulberry Road 91iufleld "' 49U8 

\lucas Shrader 9338 Mulbe'ry R03d 81",fleld "' 49228 

Gary Silwester 10175 Berkey liwy BI ... field "' 49HS 

Christine SHwester 10175 8efk~y IiWV BH .. fleld "' 49228 

KirkSmllh 9896 Rlp Hwv R183 "' 49276 

NanC'j' Smith 9896111113 HW"/ 1\;,3 "' 49276 

Ronald Smith 11198 Rode,fler liwv Ottaw. LAke "' 492.67 

Madene Smith 11198 Rode,iler Hwy on

lwa Lake "' 49167 

He'lrySmith 7150 Si

lbe,hofl'l Hwv Bl i"f[tld "' 49228 

TammvSmith 7150 Silbe,ho'n Hwy Blissfitld "' 49228 

Trela Smith 9999 Sl

lbe,ham liwy Rig;! "' 49216 

Todd Smith 8777 TMmp,on HW"/ Blis,field "' 49228 

Sara Smith 

8777 Thomp"'" Hwy I'~Ii.ld "' 49228 

Wayne Walters 8916 Uppliwy Riga "' 49276 

Ru!h WaITe" HI6 LlppHwv RI,a "' 49176 

James Waite's 9023Ta,s.old >lwy ~i,a "' 49276 

Susan W~I!ers 9013 Tass.o!d Hwy 

Riga "' 49276 

Jo;(!ph Wright 10736 Silberhorn liwy BI ... fl ~l d "' 49218 

Todd Zimmerm~n IH5J Onawa Lake Road Rig;! "' 49276 

Kimberly Zimmerman 11153 Onawa lake Road Riga "' 49276 

Donald Zimmerman 1293'1 Ridgeville Road Ottawa Lake "' 49267 

larry Zimmerman 1051B 

RiU >lwy Riga "' 49276 

Diane Zimmerman 10518 Rig;! Hwy Ri,a "' 49276 

Robert 1155 11564 Berkey HwV Bliss

fitld "' 49228 

Robert Gideon 735 M.in 51 Frankfort "' 49615 

Sharon a'ld Richard Greenwa~ 2980' N l.k~'ho,e 0. Port Hooe "' 480'68 

Gene lind JudV Jan~owskl 94<0 Mon!gOm~.y Slv<;I Pentwater "' ,~, 

51eve Wentworth 161.4 Herron Rd Frank

fon "' 49635 

Page I 9 
599 

Statement of Invenergy, LLC 1 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.534

Ie',"" t • ..,. 

V",e P .... iden .. Ad",;~iU"'lion 

1~. n.'1JV LlC 

15. WK'.r Dr;"" 

Chi.:.",. It 60606 

3U-S82-1418 

JI."'I@lln •• ~,","Ic.co", 

., Ilonorlb le Membersof ,he wov" & M",n. Comm'''''': 

Apo111S,1012 

I . m wrillnA 10 ' .. pettlul .... U'i" Cong'". 10 ~>I.nd Ihe wlM '''''f8V lI'oOuttl"" la. tredil IPTCla, Qult~l¥ ... 

""",tile. 

I'", Ieif'! t."'I, Wte P .... Id.nl. Ad",lnlmallon f", In.,,,,,,I'I. """ 01 I"'" to""1,,/,51 •• d;"I dean 0"""1 companl • •. 

b .... d In Chlc.o,o. In.''''''I'I!w",,",lnpnerp.t<>mj ha. d.~I"""d and plOt. a ln ""rviet mQ,elffiln 4,100 MW of 

rene",able 'r>D n.,u,all •• ·ru • .,d pow" gen.ra'lon ra<i!~lo, in 11M: Un~e<I Shit •• , c"nad., "nd Eu",pe, .nd wo',. 

"me rita', I.'B." Ind.""ndcn, wlnd Qowo, Fne""i.,., cO"'P'nV, 

In~n.,1JV M. d.veloped and plated In , ...... t. 26 .. ,nd ' orm. In u.. Un~ed Sla,.,_ W. h ••• • ,obU'1 ";Deli ... lor 

additlona l ... lnd P'''jo-ct opportunille., blJl mo,! olth",. p,oj.cl5 h.~. I,ound to . h'~ bee,u,. Ih. Production T •• 

Cred ll ('lC), an '",porto nl compan~1 01 0"' p,oject o<ono"'"" ... du~ 10 '''>f," Ol lk, end of lOll. W. _ li~~ 

olk" .. In th<! .. ,nd '''''IY ,,,"un.,,,, - «'''''OIl. 10 .",all .<1"," by Con ...... approvinE an e~skln of 110. red .1 

wi"'; . "" IY PIC III, u'lenlln.llhe •• "n,lon Is appro. ed •• """" .'llo"lbl.," now 1""'1"'''"'' are a~eady 

' toUlng. 101<1"1 job 10''''< In Ihl< S' .... i". "'<101. 

Th ... l.d.,31 PTC i. an elf." ..... tool to ~HP eIK\("I\~ tat •• low and 10 .ncou,al" d.,elopmenl of p<OYen <Inn 

ene,1'I PfOJKI •. (quipped ",ilk ' M: Pl(. the wind ''''''I'I I"d''",,, h., to"tribu.e!llm"'n .......... o U,S. econom,c 

d.volOQmenl aHom cOIIIi""e 10 came dawn, 

• S'OICO 2ooS, tne ... iM iMu,\ty na"purr.d mo ... Ihan ;60 Dillion or In ..... lm~nL 

• Tad.,., oW, 400 I.dlll'''' _ in 43 1"'10$' m. nulKlurt la, .h. "","d energylnd ... " .... 

• Wind nowWW . .. 'hc ~uiv.l n' 0110 miliJon Amon<o" ho"'.' 

lei', <on\lnu. 10 cr.ale ."",omi< oppo.,..nlllO$ lor A",.,Ic.oM ~,ouah d •• n, afiOlda bl., ho"' .... own win. 

"""1'1, I U'IOI"" <o",miU", 10 take up on .".nolon ol lhe wind ......... PIC nlhl .way. 

51n"" .. 11, 
600 

Statement of Invenergy, LLC 2 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.535

J~",e, Molholm 

M~".g ••. Wi~d " """men' 

Ip.ene'i~ LtC 

I Soutn W"' e, Orl"" 

Sui'. )900 

Chit.so,IIIi",,',60606 

UI-5S1-U06 

jfllolholm@>ln.en.,,,, ~<om 

0.., H"""....b~ M~mb~,""ol.1>o! Wa~' & M •• ", C"",mllte<!: 

~p,lll5, IOU 

I ~m w,l"ni I" , •• ~mull<j Ufl" Con,,,, .. ,o " .. end Ih. wind en.:'lypro<iuCllo" I~' <rod i' ~rclo>quk ""'" 

p" .. iblo. 

I'm I'm" MoI~o m. Monose, 01 Wind ..... "'''''."' 10' In •• ~'IV, on. 01 'hI> ,,,unlry'S IU dln8 <leon enerrrr 

tompani." b.~ In (h"allO_ 'n"enOflY 1 ........ _in ..... 'lv!lc.coml h., doveloped and pl>,ed in ,." ...... more lhon 

4.700 MW of ",".woblo and n.lural Ii",-Iuo 'od powe, ' ..... r.tIon latHille. In Ih. Unll'" 51.1 .. , C .... d • . • nd 

~"ro"", and we'f. "mer",,', la'I">1 Jodep""dfnt w;nd power ,0".,.11<In comp.n~ . 

In~n.'rv n., d...,'oped .nd plac.d In ...... ". 16 wind larm, In the Unlled SI.,,,;. W. hOVl" robu" pipelTn. lor 

_ddl"o",1 wind prol.'" "ppanunl.I .... bu. mo" of Ihe,. Pfoj<!<u hlv. sr""nd '0 I ~II ~uu~ lh~ Productio,n b. 

erod~ (P1'el, an Import.nt tompoMn, of "ur pfolect ~cO[lom"", i, dU~ to "'PI"''' 11\. e~d 01 lOl l. W. -lik. 

oH",,, In tho wind en"i~ lndUWY - conllnu. 10 await .CliM by Cona'"'' appro,ina on ~te"~n of I~~ fed~ .. 1 

Wind O" ... v PTe, I, i, ur,en' .h •• • h"'''O"'lOn i, ~pp'o.e<J., <w" •• """il>c, .. new i"...,,,mon" ~, •• r",o"'" 

".lIIng. IOfCI". /01110" •• in t~lllrowl". sedo'. 

TOe led",.1 PTe I, . n .~ct;"" tool to 'up olKlridtv rot., low .nd to encour'ge deVelop"'",,! of P""'"" cle," 

"""(.~ projKU. Equlpp'" wll~ til. PTe, the wind .n.fl~' induit .... ~ .. cOI"Itrib.Jted lmp( .. u.el~ to U.S . • conomic. 

do.elopmenl~' com to",ln"" to ,,>m~ dow": 

• 5int. 2005. 1M wind lnd uWy h"'Pu".d m",e thon $60 bllhon 01 !"""Olm"nt. 

• lod.y, "v," 400 f.tit~le . - in '3 >tate. - "'.nul,"'uf~ for Ih. wTnd eMe'IY InduWv. 

• Wind n(lw "" .... " ,ke "Qo",.lont of 10 mill"'" A",.dun hom,.; 

le,', COni",..., 10 ere ... "onomi< oppor'Unl~" for Am, ,,coM IhmulI" clean •• ffo,d.!>., hOmegrown wind 

"""fllY. I Ufl" !I>o committee !o to'~ up an o"e",ion of tht: wind .".fllY PTe '1Ihi IWIV. 
601 

Statement of Invenergy, LLC 3 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.536

Ryan 801Ienb.cI1e" P.E.. 

P.ojec, En,inee. 

In,,,ne'IV LlC 

One So~t" Wao);e, Or ..... s.,ll~ 1900 

chic'IO,ll6\l605 

1I2,U • . 1441 

,bollenbache'ttln ..... ne'gyllc.com 

Ap,H 25. 2011 

I am w,ltlng to ••• pecUulI~ "'ge COnti' .. , 10 .""na Ih~ wind ."erl~ production \a~ c.edll (pTC) a. ~ukldy a, 

po .. ible, 

I'm Rvan 801 Ienb.cM', • 9'oj"'t £nt[nee, for In"''''''IY, 0"" 01 the couMrY' le '~ lng dnn '""'If>' comp,ni •• , 

b ... d in Chicaso_ In""".,I)' ~'W In""","!1>'!~~£!'''') ha, ~ ...... Ioped and plated in " Nic. mo .... than ',7[10 MW 01 

,e...,wabl"and "0'%11 ,a" f" . ted powe' tene'a' ",n I.cilitie. '" .he Un['«1 ~t tc " C. n"d., and £",opo, and we'" 

Amer~', la"esl 1ndepend"nl wind powo' ren~,aljon company. 

1" ..... n,,'1l' h •• """"loped and p'""ed In , ,, .... ice 16 w'nd '",m. 'n Ihe Uniled 51<1'.', W. h""" . ,obust 1I,,,,,I;ne for 

Iddloonll wind 1I"*tI 011"",'looille •• bot mo" ol lhes& t>n>JeCU h ...... l ,auM .0 I hal. beoIu", 1M l>foductiOn 1 .. 

(.edit TCI .~" ;"'port~M compone,,' of OU' ",oietl ocono","'," dOl. '0 e>plre ~t I~@ end 01 ~Oll, W. _ Ii •• 

Ot~" I" Ihe wind ener", lnduntY - co"Unue 10 .wail aCliM by Coni"" a'PII"",in, an ".n~n of Itle led.",1 

w'nd .n.'&~ PTC, II i. u".,,' thaI lI>e ext.".jon I. app,o •• d a. """"., possiDie, OJ flew Inve.tments .,e al,eady 

".III~ Ic",flltllob Ies.e.ln this vow'n,""tlc'. 

The ~de .. 1 PTe i' an .ffec~"" 1001 10 •• ~ ol"'t~<lty ..... lOw and 10 e",ou.a,. 0 ...... 10""'''0' 01 P''''''" ".In ''''''If>' oro)OOl>_ EQuIpped Will> Ih. PTe, tho Willd ene.I)' Ind ustry h •• con,.ibu,O<f lmp'e"lvely to ~_ «o"omlc 

de.elopment a, C<l'll< ,0nllnU" 10 ,Ome down; 

• 5"""e~OO$, \~ wind Ind u"ry h ••• pu,,,,d mo'e ,ho" $60 bmlcn ol l"""" ... "nl. 

• l"';.~, ove, 400 '.<il ies - 'n 43 OI.te. ' "' nul.C\",~ 10. Ih ~ wind """'IV InduOl'y, 

• Wind now",,""''' ,r.e equl".I,"1 of 10 mHllcn A",e'ic.n !>ome. 

let'. con"nU<' 10 "Nle «onotni< op"",rtuniti .. 10' American. through cJ<oan. alfo,d.Die, Mml'ifOWn winG 

"""IY. I U'l" . he committee co ta •• up an e~u'fl"on 01 'he w,nd " ne,JV PTC tlJhl _-v, 
602 

Statement of Invenergy, LLC 4 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.537

CDGy W.de 

Wind T ... '~I"e Tecl",i«." 

Ip.e""'I\' llC 

18191 CR 74 

Poet<, Co 150147 

(9701 · SlO·SI8l 

CW/l.D[@TnV<lne'lIyllc.com 

April lS, 1011 

I '" w,i.ipS 10 ,.,.pecl!,,11>j u'Be Cons,.,., 10 utend tl\e wind e"e'i\' product;"" ,~ , "edl! (PTel " '1ui<'fy •• 

lJO»ible. 

1"", Cody Woae, w;~a r<J,bl~ r, c/l,,;clon fo' Invene,lV, one 01 !h" counl'¥'. le.dl"g <lean e" o'lV compa" r ... , b;l,1Id 

in Chir.to. InVe"e, !!">, !",,,,,".IMle""'lYllt.(O"'1 nat dev'I"~d ond pload in ~rw. more ,ha" 4.700 MW 01 

,Mewable and n3."",1 So •• fu..Je<I power seMfation f;><iUIioo< In v.. Uni!M S!ate<, CanOda, a.n<! [Utope, ond we',r 

/I.",erlco', l.orgest lnd.pendem wind po"'e, s one'at"'" co'llpa"y_ 

1" .... " . '111 no, <toveloped ."d pl l< ~ In."",I.,., lti wind I.'msi" tn. 1J<11lOd SlalU. w~ ho •• • robuOl pjl>l'lhle f", . ddilill/l.1 wl"d prOject Ol'llo'tun~ .$, "ul "'0<1 01 the.<e p,oJe'U ~'V<I i,,,,,nd 10 0 h. lt "'" ... 'e tM Ptodurtjo" Tax 

Crodlt (PTC), an Importanl compo"enl or O<J' project econo",I",. i, due 10 e~p;"e .r me end 01 2011. We - like 

o,he" In the wmd e'l<"8V indu,try - <o"'in"1' to , w' ;1 ad;O" by CO"I" " opp,,,,,nl an e".n.;"" 0/ 'he 'ede .. 1 

wi"d en. '1V ~TC. It .. "f!""' 'Ta' ,n_ .. ,eo.lon;' app""",d 0, """" u 1J<l»1~1 .. ,.,"",w ifwos'm" o!. Ofe . I,.ady 

"~I (I "" fOlD"I job 1 ...... 10 fh-" ,fowioC .. ,to •. 

The , .. derol PTe is on ff.ct ~ '001 to keep .Im,i<itv ,a,es low and ' o ."""uroso dewl"p"""' 01 provon <I •• n 

. ""' ..... P'ojKIS. E~U pped ",Uh I"" PTe, the ",If\d e"",8V Industt"\' " •• <Mltlbule<lI"'p'.'olv . .... to ~, <conoml< 

dovek>pm.nt a, cootS wn<lo". to come down , 

• 510<. 2005. Ine wrnd induOUY h., 'purted "'OI ~ Ina" S60 billion of In •• stmellt. 

• Today. <>V<I. 0100 IMII~i ... - In 43 "" .. - ",anul. ctu ... 10' the .... Ina ~n 'EY iM""'", 

• Wind now """"en til. "'Iu;"ol. n, of 10 ""Ilion ",,,, .. an hom~ 

let' , co"' ~"" 1o O" ea~ = nomic OpportUnille, fo, /I. ...... r!can, tn,oush clean, affo,dable, homeg,own wind 

...e'i\'. 1 "fge ,II. <ommitt . .. ,o 'ake up an .".n,ion of Iho.w<f\d ."efi\' Pte ,:,h, . w.y. 
603 

Statement of Invenergy, LLC 5 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.538

,o,p,11 25, 20ll 

i om wfil i" ~ til ,e.p~<Tfl.Jllv "'"Ie (on8,e .. te ~OIend 11>0 Wi"~ e"e'I'II>I'Qduc!lllnla, tfe~il (PTe) .. culck",u 

po .. Lb .... 

I'm 1.0001' Clli>I'land, an Oi>l',"Uen, Manos", Ie, In ... n",s~ , we el ~. <lIuntry', I .. d'ne <INn ene,1I' componl"" 

b ... d In ehlCOilo. In.ono,1'I (ww ... .I"""ne'~.£!!L) ha. de-.-.lllp"d Ind pl.>ced In •• ",ice mor e Illoo 4,100 MW III 

'en~w ble and n.lu, 1 ,.,.fueled powe' !el"'.!!lIn "' ~I~. Ln Ihe Unlled Sl l~', yn"d., .0<1 [",oPt, ond we',. 

,o,merlc.', 1.1".'1 indep""Penl ... il>C! powe, I .... '.U"" <empany. 

InveneTIY hu <I .... ollIl>I'd and pI;o.cO>d In ,ervi<e 16 wind la,,,,, m the UnL!ed S'~le, We ha.o . ,obu.t pipeline 1o. 

add il"",.1 wind projectopportunil"'" but most et tile .. "..."..,ct. h .. " ground!o I hit becou.., !he P,QdL<ctlcn T • • 

eredi! (PTe), In impo run! <lImp<>!len' of Our ",ojee, eeoncmiu, il due \0 • • "" • • , 'hI> end 01 2012. W. - lite 

0'",," ,n 11>0 wind . ... 'CY lnd,,>try - COnlin". 10 ~ aClion bV (on" ... app ' ovlng an e>!en.lo!1 01 llIe fe<t.,. 1 

wind .""'iV nc. II i. "'lent tIIlt tile ."en,ion i, a~p,,,,,,,,, a, ""'""' po"I~ e, 3. new I"v"'tm.nu .. ~ 11,.aav 

'tallln&. fo,"n. jol> III".' 1n til" "owing ... elor. 

The loder. t PTe i< . n effecti". tool to .... p .'eeUi<it>/ r"U low .nd 10 encou'. de..,'op"""" 01 p,OY .... dean 

''''''1'1 project •. equIpped with 11M: PTe, Iho w,nd .""J'llnd •• lry ho. conl,lb!.Lt.d ""I" ... jvelv ID 1)5. co""mi~ 

d ..... "epm'nt a. rom rO(l""'" 10 .om. down, 

• Since 2005. tIM: WLnd mdu"ry ~I' IPurred "'''''' \~.~ $60 bmlon oI1"~Slm.nt. 

• lod,V, OY., 400 tili~ .. -In 43 .ta, ••. monufa"",. fo, I~ . w;nd 'ne'l\' Lndum\,. 

• W,nd nOw I'IIw. " In., .Qul"',"1 of 10 ",llIion """."t~n hem" 

let', ."n~n"e 10 Cleal. ",,,,,"mle IIpportonittes Ie, AmertuM In'O"I" "e. n, a fforaat>e, Mme,,,,,,," Wind 

ene ,sv_ I u'se In. com",I" •• '0 til • • up "" "", e"";Dn ff ~e wind ene,sv PTe fish! ow • .,.. 

You, lim. ond ton.ldemilln 1,. muth oporeel. led. 

lOMyCopeiG.d 

Op.ralion, M'''''Je' 

In""ne'iY Lt( 

McAdoo(""'I'Ic..n tor 

<I01W0193 

McAdoo, "'ann.] 80&-697·2695 

Iropo .nd@jn~BYII •. "'m 
604 

Statement of Invenergy, LLC 6 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.539

Written mm~n ~ (nr the R~tfm : ~~ring un C~rtll in F. )p irin :TB)': I'rovisions 

I louse Ways Jnd Means Subcomm illCe on ~<: ICCI I{l!veuue Measures 

April 26. 20 12 

C"mll/U III ~ Jllhmilled by: 

Jr)f Condo 

Viee Pr~jtl cr)1 dnd General oun d 

In ne~' L LC 

On~' South Wlicker Dri\c. Suire 1900 

ChiclIgo, IL 60606 

Phone: 312·5112-1465 
605 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.540

In>'energY LLC lIrg..s Iho U.S. COIl~rt:iS 10 ~lcnd 'he ..... ind ene'iY production laK ... edil (PTCI as 

quk~l)" ~,pos>ibto. InvN'<'<\;y d~I'dops. "wn~. and operales pO ...... r ~"""nrtiom f~cililics in Not1h 

A!l'""ic" and Eurupo:, h~";", d.-elope<! over 6.1>00 MIV of ",iHlt·<c"l ...... "'wable anJ t'I:"ur'llll;~ ·fud.d 

piI""" E0""",I;o" f;,tilitb in Ihe IJnited ~l;Jt~ •. Can3d~. anil Elm1p(". I'.'ilh ",H, 2.000 megawull~ (M IV) 

of wind pl.erd in <t ... ic. "r ;n .""""",liO<1. w< III'C NOI'II, Amo,ka'$ 13rg.". ;ndepe1ldenl w;tld pow'" 

~o,,,, ... ti,," comp."). 

Tloe d"'""-Siit "ind projects ",e ""'. buill ha"e 0<1~ "oonm'm Inl..",e ht..,'tInd 11>< ~""~"'i(!n of clean. 

""n·pollul;n!; """rio' ~ Ilio lIav~ brou&hl <rillcal "'onomic devdopmcnllO largdy ruml communilies, in 

so"", c ... « du,ilJg rtcessi(!J1ary I"'riodii "hrn rIOlhinl; po,il!,.. ..... " s "'ki"!> plac.;. Wind I,; uniq"" ""'''"01 

all .""<&Y sourt~S in lhal il .110;>"" f~r df"'l."I c.""",,mfc p.1rllcfplllion in p1'(ljccl~ by I""al ""idona. w. eU"'" tftuusaOO. "r rural I .. "do ..... "<rs as um p,n'""rs. In ",.ny of uur o"n'mu"ili ... "'~ are 'h" I~<SI 

oonlobulor 10 Ih< 1(>001 I"x ilas<'. and o;>ur proj,""ls MI'" in 'KIme ea:;.o, ~,,,It~ in (h~ "'I"li"II3lion of 

impo"'''1 i.em ... .,eh as schuul """"""rricul", ",;{i'·;li es. Ih31 w~re 10 he "u{ duo 10 b"dll"1al)' ~"n<l",;m •. 

Tho 21)..)','''' hiMQI)' ofth" p're incluolo5 sc.,.,.,,1 O)CC.si",,~ "h~". olu. !O ~~,~,\jion;' oi,h~, vol)' ,,""r 

the <xpi"'li,," 01.1< "r e.on a ll., cxpirall"". 11,,, wind industry has cxperic"ol."<l dr"JIll'lic 1><,..»" anJ h,m 

cycles. As with any fodullry. polky c~rujnl~ i~ a ulllc .. 1 ra.l", 11«0'''1)' fUt VO"·lh. which i$ wh} [\ i, 

so important ~ .. t {m, Wa}" 3J1d ca"s Con""i".,<, 10;> ,ako up ~'" PTC 0"'0ns]on ~ """" aSI""'$iblo. 

TIte fedmll PTC has lV~1\ ," II<: • hy driver in !hi: Ik"clopmcm o;>f Ih,· \I;nd ioduSlt'y "Id {he 

,,·. ulting cuntin",,! ",dueli"" in {he "0>1 or wim! o;>,e, the }'C~". Tilihy'. wind " uhin". ,o"emt. 3Cl% 

Inore electricity per Mui"" ",.by Ihan live l'e .... ag ... Sinc" 2007.01'''' 35,000 MW .bout Ih,..,. 

qu,,,,or; of , ..... 1 US ""ind """,'or ~ h4'" ,,",en c<ml'rutl<d. " 'hich i. 35% (If;ill new ,,1"'10" I!"neral n~ 

c"fI"<ilY in Iht lasl I,,,,, ).~"' . \\';Ih ",ind. eMsum.", r~ei, . pOllul]",,·f= "ne,gy Ih", has a fuel COSl of 

~ro. Ihon:by ~dgj"1I al\a ,nsllmrn:diclahlo fO$, 11 r""J P"""$. 

It ,s unquestioned Iha, Iho.·I'TC h~~ invi~oral.d domesli~ nur.<I~,inll ~I ~ limo "h'n Iho "'I""',), 

d"'I"'nllciy nn:d. m""ufaCIUtins jubs 10;> stay o{ h",nc. In the 1"" f~w )'e"", n,""y mOloufawori"lI 

O<tmP3nit~ buill f~{on .. in Ihe US. or ~Iooled "~i~li,,~ r.dlilic .. 10 IatHd "ind lurblne C(n"flO'II"nl,. 

Too.)". the turbine. w" bu)" "'" uw,. bO% U~·mad •. onn!f'Ont"t!I. 

A. " In.ju, dev~lop., or"i"d proj""'S. Iho lad o;>f any mrdium.",.lun.ll.,entt "~rl.inty hal;. th; l1i n~ 

impacl ()f\ our pl.". r", do",eSlk ",irul ok,,,l<>pmenl. W. iutvo nmltipl" proj""{S ,,·hieh would &<I inlo 

se,...-ice ;n 2013 t""l are ""sent;.lty "s!oovcl.,..,ady"· hut r", "" eXlett,iOlI of tho I"re. Howt"er, lhe 

uII<:crtainJ) is f""cina IhCl$e projccli 10;> idl", 1"I"O"or&.I' i$ an Aonorican·own.d. Am."';e.,\ bo.,.d company 

,h., vory much wBnll; 10 "'Int;n",," II. grow 11<: .. ill lhe US. BUI sad ly. Ihe f,ilm" {(! achieve pOl let 

<e".jnly may "uol our potenlial and C3U,t lhe .o",munil~' " ..... "t {(! build In 10 I.,.., Ill<' much·, .. odod 

,'<'"nomic Ik ... lop,"cnt ",c bring. We (herefore "'b'" Congm. In ,"ke 'immediate aclid" 10 c"cnd Ihe 

CK 
606 

Statement of Invenergy, LLC 7 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.541

Utepl. Hili 

S, M'p"a"'. ccU!M'rnWSop~1-I Cn. ln 

In,ene'i~ llC 

One So~t" Wack, Or ...... 'i!J;\f 1900 

Chic'ie, lin""" 606O!i 

lll-S81 14 ~ 

oh,II@(n""no'AVIlc.com 

~prlll5. 20U 

I am w"~M to ',s~cl!ull~ \"",CO~I, " 10 .>lena Ihe wind e"ern p<odU<lionl.~crea'l (pTC) •• qukl<"V., 

lKI .. ible, 

I'm IJlop;a Hill, S,. M"nog~' ef PfCt""""MU ana SU~ply Ch~jn fe, Invene'1V, en. el t .... <ounlry', IUding "' •• n 

enO'lV rnmconl .... b ... d ;n Chk'gCl- I I I 

,I>"" _.700 I In 'he Unite d 5'.' •• , "'nad •. and 

("rope, .na we',. "'m ... lca', 1a"eOllna.~ndenl \\I1nd power len./O,I<><I comc.ny 

In""n. '1V n •• a"""loped.nd pla.ced In ,.",lee 26 wind r.,m. 'n Ihe Unil.d S\.OI.o, W. ho .... ,eDu", pipeline 10' 

saa lho".'wina p'Ojeel opportun;" .... bu, m<><, or In .... "",jOe" h"." I ,ound Ie .hak De .. "", 1M ProductiOn l ., 

[,.di, (PTel. an impcrt.M compo<>ent of our ,,'ojOel <cono"'''''' i, due.o upl,.~' I~' end 01 1011. W. _li~. 

elhe" In Iho wind enefiY lnduwy - cenllnoo Ie .wail .<liM by Coni'''' a·pp,,,,,'n, an ten~n of lhe 10d.",1 

w"nd eM'i~ PTe. 1\ i, u" onl!hit Ih. ex,ension" approved •• ""'" a. po .. iDl ~, OJ flew inv.SlmonIS are . ',eady 

'I.II;~ lortFnl Job Io,,~. ill thi, I 'ow,n& ",,<lOf. 

Tho IM.,.I PTe ;, an offe«w. 10<>1 10 , eep .'e<bi<IIV ral .. lOw and 10 encou,ag' ~vdopme", of p,ovon clea n 

.""'iY lI'oJeClO. EQuipped With Ihe PTe, tho Wind ene'8'I'odu"ry hi. <ont, ~ul td ImPfu.fvely to U.S oconomlc 

d ••• lopmenl as co<" ,onllnue 10 come down: 

• Slnce ~OOS, the ... Ind Ind u"ry ha.,pu'red mo'e Ihan $60 bililen olln""""'O"'. 

• Tod.~, ""'" 400 a<il~I". - on '3 ,tot ••. "' nuf'<lu,~ fa, th~ wino """'IV Industry. 

• Wind now PO""''' Ihe " qul"alent of 10 "'Hllen ",,,, .. Ie.n hom • • 

let', conl,nue to "Hie ecOflOtnI< opportUnities I"" Am..,ica ... Ih,ough cI •• n, alleldabl., ""ml'ifOWn Wind 

"""'JY. I ufle 'he <om",~'ee '0 tate up .n ,,,,,,,,,on of 'he Wind ono,JV PTe tllhl . w.y , 

UlewoHlli 
607 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.542

{ - COMPANY I

-IINVUTMENT 

Z "';;; INST ITUTE 

""" ~ 5« .. ,. 1M. WI, ..... _ DC _" ,.t. ~ 

>0./, ........... ~, "'.o/J 

Stoteme"! of the I,,,,,,.tment Company Institute 

Helr;ng on "Tn Reform and Tax·layored RlMi,ernent "'«aunt<' 

CommitteeonW.'(i and Mun. 

United SUt .. 1'1 00." of Repr" ... nl&tiveo 

Aprii17. :IOU 

The """mr~m ("mpM\, In"itu'e'/s plea ... d to f'J""de th .. w,inen ".!emem on 

<.OrI"""'i"n with Ih8 h"."ng "" April.]. ''''', in 1M U.S. Hoo •• of Rep' .... IIl.H.e' (omm<n •• "" 

Way' arlll Muns \,\10<1 ''Ta. Reform.nd la.-Fa"",ed Ret ..... ""'"t Acc"""ts." The 1""ltule <['''''!ltv 

.... pPOr'lS efforU to promote retl~ent ... curity for American wor1<,,/'l- We It.ank (h,."",," Camp 

and Ranking Memr.., LN'" [0( their ~" ""l'por! of ,el;romen! Qllln9' "'an improvMlenlS, 

indudinq PfO'V<,ioo. ,n 111e Ecooomk Growth and T;u Reher RKot><il'.lion A<1 of '00' (EGTRRA) and 

I~ .n""" P""e<1ion Act of loo6(PPA). ~1'fl"':!'"9Ih .... i"'l'""",m .. ,,", A",et',"",c~,. Mtfy 

h""e. abooJt u.s Inllion save<! f", ,eli'l .... ~. with "'0'. IMn ho lf of tflat ~mQIIn! In dermed 

contribution (OC! ~ans and ind""idual '<Otjte~nt account. (11'1,14' About Mlf of OC ~an .~d I~A 

.>Stt, Oft i,we"ed in mYlual funds, whkh ma~ .. tl'H! mutua l fund <ommun'tY ~p.e(;"lIy .ttvfI<!d tQ 

Iho need. of reti .. ~nt sa".",. 

As "ott<! by 1m. Cemminee. "the ""'JO' <orTlp""t nlS ef ret;,e,n. ", ....:urily .'0 Soci.l 

Security. employe'·'pan",,.,,j pjans. atld P""",,,,,,,I savi»g''"' While Sodal 5K""tv" D<rt<ide ,h. 

sc:ope of th .. hoari<lg. "" ., ... <&fMt't ef omploy.,·spcn..".Ki plln. af)d IRA. Un aVOId a d,sc:u .. io<1 of 

lIIe "'gnlftcaoce cI S.odal SHunt-; in enwring retfr.~n\ -..evrity-.or rel;,ome nt iocome ad<1qwcy--

fOf Arnen.c.n .. o.hf>. In this ,el p<oct, 5<>< .. 1 SHUfijy " the pri""'ry . Iemwt fer tho maJerity ef 

""".nGln ,.to, ... ,· and ,.pl~e., "gnWoGInt pc<tio'" ennmme fe, Io ... '·i."'.,.,.... .eli' •••. SeeJal 

SKurily ,tj)la<es 71 P"""ent of a_lIge aM",,1 fo fe!",e hous<!lIold u.nfrog< io, 1M Iowelt lifttlm • 

......... hold •• mirog. quin!lIe; 43 P""".n! I", !he ", .. :Id l. lil.tI",e ......... hold •• 'ning' quintll.., and )0 

T ... "' .. " ...... '_.,""" ... ~ .... .., __ .. U-S • ., ... _,_ .. """"""""" .... ~< __ h.od.. _~ __ ,.Tf." ...... , __ ~ .... {l.OT.)<O ..... '. __ ... ""Jh"r.u".....,'" .......... oobII<_ ........... _--.. .... _ .............. ""'",.-..... -., o:..rt...,_ ........... '"""''''''oI "' ...... .,. ........... o/ .. '.'._ .. d ....... ...,. .. __ _ 

~T ..... ~"_ " ...... ,, ....... ,......, ........... '"f .. y-'i.~. __ ,~_"""' .. "'"'·I"f"'M'o"._ .,_",.",,)Ito/'"1~......u'''''' . 

'S .. (_'n ..... _ ................... '"' ...... , ... 'OV ·~. "ll ~ ......... _"" .. ~ ...... __ o/~"'~ ... I_ .... _, ..... _ >-Is.."",", 

"""' .. -..."'_ .. ' ... f_f"' .. _ , ........... .".u..-oS. ..... ... ,.--.iIo'"'-'...,,..... ... oI 

· ...... "" ........ .n. ... _"" ..... _."" ..... ,··"' ................ >O\O.k<IoI~'-oIin. ..... SI .... ' ...... ktI.~ ......... ""' ..... ',,.,u,'oI_ ... , ..... , .. , ............ p''' ... oI .... __ ''''' ..... 10, ... _ ... .... iv;to.t __ .!io,.oI __ ........ ,.. ..... ""'ool .......... . , ..... '*"3"' ........ _ ... ·A '_ .. _"·_P' .... ...-.... ""'-~_ ... " ..,.'''·c,_''''_ • ." .... ~, .. ''' ........ ,, _ ... ,~""'1..t'l!l ..... 
608 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.543

p"re .. nt for th" high ... t lil"tlm .. hou.ehold earning' qu lntil ... , Sinc .. lh .. .. naclm .. nt ofthe Employ .... 

R"t" .. mentlncome Secu'ily Act of ~!l74 (ERISA). ine,,,a.ing numbe .. 01 , .. ti, ...... also , .. Ce,v .. b"n .. f,ts 

from prlvate·.Klor pension plan. (d .. fin .. d b .. n .. fit (DB) and DC) and rec .. lve more in benefit. from 

thes .. plan •. ' Mo, .. ove" it is p,oje cted that mo, .. lhan 60 p"rc .. nt of 401(~) partk'panl5 in th"i' lale 

Josto mld <lS, who wlil l um 65 bet_en ~030 and ~039, will accumulate " nough in the r, ;'01(") 

account. 10 'eplace mo re th an halhh",,, sa latV' These Sl at,stiCS SPUk to the success of th" changes 

Imp~ment .. d """'" Ih" pa~t 35 yu " . A crucial component ofth ... uccus i5the cur .... nl ,"'llrem",nt 

savings l ax in' '''ntNes, Indudinglh", contribution ,ales. Ihal mOl,vatesaving and .. ncourag'" 

employers to mainta in and contribut" to "'n ploye'· ponoo'"d plan •. Whil" it i. important 10 

con SIde, hOW the , .. tirem .. nt system can be 'mprO'led, Congr .. ss should not t hrow oul de cad ... of 

p'ogr .... by ta king away the ab'dily of Ame"can workers to rna ... full use of th .. rel,r .. m .. nl v .. hlc le. 

they value so strongly In su pplementing thel,Soclal Security benefits. ConsiSl enl with the lIlews of 

th .. overwhe lming major1ty of Am,,'icans,' we urge Conqius 10 malnla,n th .. Cl)rr~nl ' '' ''r .. m"nl 

.aving.lax in, .. ntNM. Including th .. conttibuti on ra' .... , and a!tow Du, .u" .... ful .. mploye,.p,ovid .. d 

,eti,e""'n1 sy" .. m 10 flourl.h." 

CON TRA RY TO CONVENTIONAL WISDO M, INCOME FRO M EMPLOYER·SPONSOREO PLANS 

IS INCREASING 

Rellr .. m .. nt policy di.cussions oft .. n sla rt f,om t h .. p .... mi.e thai , .. "' ..... ' p .. n.ion income hll. 

fa llen O'Ie, lim ... Loo~lng ~I th .... nil, .. period IT om 1975 to ~o~o. Ih .. datil.howthat, contratV to 

convention,,1 wisdom, privat .. ·seClor pen.ion income has becomemo,e, not l .. sS, prevalent ove r 

t"n". AcfOSS " n incom" g'oups, rtl r~ment ,ncome from employe r-sponso .... d ,etirement plans Is 

mo,,, p",valef'l among r .. ti' ..... today than In Ih .. mld"970., when sweeping n .. w re!" .. ment plan 

.... gulatlon ............. enact .. d und .. , ERISA:'" In 10 0, )1.S perc .. nt of ' .. ti' ..... , .. e .. ived incom~ilher 

dir"ctly Of through a spouse-from p"vate· . .. uor' .. t1r .. ment plans, compa,ed w,lh n .] pe"~nt in 

97s(.ee figure b<o low)." Th .. median ,ncome ri'Ceived bYI!1o.., wit h priv"te·sector perSlon incom .. 

'.~"" .. ,..,.. ... "' .............. "'''''' .."..._, ,., .. f ... 'O, _ _ • .." .. "'" ...... "'~ , ........ S-&h"," , .. In " ••• .1'." .. -.., ~. 

~"w.

Off"", cae'. ,." ,""","T~" """''''''''jQf $«"" s.-cv.'l" _11"""_;",,"-' ""'~ ..... ""' ... ~$ML-u-~~-wr 

• s.. ... d'_~. ' A L_ .. "' .... ' .. SK' .. " .. ,,......."' • ..., """"'~Af"'E~\$ .... o' ... · "rltf-....ruo_ .... ".' ... ~ il>«_ ...... 'on~.,. ......... j.-"!l7_1ld 

f A,.,."..M "' • ...., .... _ '" "' ... _ '."'....,.. , .... , . .. __ of "'" po .......... IN, """" ...,,""' .. Oyl""'~opo'~ if> ' 100,1" """ .... "'11, ............ _"", ..... ,.. T ........ __ "....,..'ioo ' ___ .... _ ... ''''' ..... ,.,......... ... ~ 

.. ,"". "'" .. ,............". '" .... M ........ _ _ ..... v .. o._ .. -C ... ,"01'1"""""""_ G..-., • ..,. .... , .......... fD' ........ . .... H"I .. OC' "-" '''.). ..... 6'" ...... ....,."' ..... "'_ 'oo.h_ . .. " ...... u "'''''''''/I''I'<''I~) f"" Tho 

EBR~tc' •• ,Ilo\ ... oioctton_ ..... e<_, .. ""'~""o>oet"' ".""""'"_.'''''' •• '(\<I .. ' ................ . __ ''''' v...:o. ...... " " _. '" A,,' ..... ' .. l._ .. (.101 ....... """ "'~ c .. ,~_ on ,0,(10) "",,,,,",,,,,,_ .. , . ............. '(;I 

R_,,,, "".,...."",.~ .... ~ ..... €BRO ..... B,,</Vo>I'! 'DD'~ ............ ,,",w.t(l "'.9IJ'<"J"""J'.'~ 

• 5«F;g...m. ..... '"'_ ........... _. C_'to ... __ 5_1y._' .. 'riI __ A" ..... , ' ........... ..,. 

C~ • ..,b'.to !........,. ",,,~ ....... _ ............ "'~"""-''.ft ... JO<.."PdDto. pd} ...... d>oao _ ....... tt,,, '''or'-

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"""""""I' ......... "'~. '''M ... Ko'' ..... ... ... ....,.. '''''''''' 

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"'.,., iCPSI 5« '19"'"." "ody"" 809<1 .... "A"-•• _,..'l«t", ReI........." "'" '""""'" ...... 05'" ''''''' ·1C1_h 

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610 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.545

DB plan «""""ge d"". nal alwa ys I,ansl"'e inla "" e'pl of pension Income . Many ,ell",,,,, 

maV ha~e wa' ked fa, companies Ihal affe,ed DB plans, bUI, bi>cau ... ri~ !e sMlar worke,. change 

job. aft~n, the ,ambonat,an of long ~estong periods and b .. ck-Iaaded benefit a,crua l 'esuited in many 

' etl' e"" ,eceflli ng little a, no '~t"~men\ income from the plans. The belief in a golden age of 

pension_ a time in aurhi,tOfywhen mostp va\e ecto' wori<e,s ,etired with a monthlv pension 

ch 'k t h"t re pl"ce d a signifICant amountofthel' ulary- is not s upport ed by the facts. Furthermore, 

the typical amount 01 private,se<:torper1slon income o bserved in the hi'larkal gat" can be 

generated by relat", .. lv modest accumulatlon in D( plan, 0' IRA •. Indeed, (ong,essia nal Resea,ch 

Service (CRS) analy,lsof p .... ·rell'ee hau.eholds· balaMe sheets find. thallhe median accumulation 

in DC plans and IRA, i, uoo,ooo, which is e"<mated to gen f"t~ ,8,400 per hou.ehold pe'y~a in 

' . Ii,emenl income." 

THE DEFINED CONTRIBUTION SYSTEM IS WORKING FOR MILLIONS OF AMERICAN 

WORKERS 

With mOSI housellolds ha~in.9 acuued DB p,omises, ' .. Ii'ement ...... ts, ~both by 'etiremenl 

ag .. ," .. nd wllh th .. ov .. rall pension income of '''Ii,e ... ri . ing, the data "'!I!I~st the shift 10 DC plan. 

ha. been bto"eflci;o!to Ame ,ican worke rs. '" Nev rth~les , DC pl~ <lS continue to attract crit ldsm and 

unfa vorable (omp.>risons to DB plan . As noted e a,lie r, th .. ,eality is lhat workers neve , wt,e 

un vt,~ally ove,ed bVlh~ DO ySlem, ~nd e~~n thos", w~ow .. re caw,e<! did no\ac crue $ignifj",nl 

benefits unless they stayed al one employer fa ' an ~nli ,", c. (eer. In canlf.", be<;aus~ of their 

portablllly, DC p lans a , e well·,uited 10 a mobile wo,kfo,ce ." DC plan s also .erve hou sehold. acron 

all a ges and iMames. Th~(e ,)fle a numbto'of other Indlca to,. <>flhe SUCcf'SS oflhe DC plan system . 

o'(k) plan d esign pro~ide,d scipliJ1 e 10 ,""ve fO' .... l i' .. "...,ot payched·by-paVche<:k and a 

'ange of inv,",slmentoplio"s. On average, research condUCled +n a call. bo'itlve ellart wllh 

EBRI f,nd, thBt40,(k) plan p"rtk'p.>nts hav .. age-appropriate asset alilKiltjons.'· 10 ,e .earch 

fjnds that 401(k) in veslors haVf' conc entrated Ihel' mutual fund inVf'Slments in lower,cosl 

fund •. " In rectnt yea,s, th .. ~ailabil;ty and u'" afta/get dilte funds ha ve expande d ." 

__ 

C"' ""_ oI _O(C-FloI> ......... ,"f""" ......... rl f"_""'_"'..a", ,,.OI '''~o( ''''_' _ odt.v_.5.0 ..... ,.""... .OOI __ .... '''." ........ "t_ ... '''"''''. "'''"'Nv'''<'''''''-oI.l'''' .... """' .. I .... "" ........... I ... "'"'o .. " .""J .. "!J' ..... ""9 .• ,... .... <0/ ...... f" .. _S ..... '}O .... _ .... ~._.·CR5 

_ ,", c ___ . ~l] .. " 1Apri01. '''''91. 

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........... ' ...... n ......... J."'i .... 

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..... _ ............. -Ut.'?".I ... _Iwod .. .-w-\...-........ 's .• , .. ".ooj,.~,_J ,yo." 

_'_>9"'lt.'I4o'.I \""''''_''''''''"_'I'''~'',, __ ' ........ .. n''''9'''''''''I< SS'''_'· s... u.s. __ .. "' .... _ . . ........ .,. ~_ sto>~f"" "EmpIDvoo T-... ~ ...... - " ... _u""'-· .... ,.'" IS..,....,.,., ..... ~ .. ~ ......... .. ~""3'>'"I_~""'_~""""'"""" .. ,... .. n ......... _ v~Oo<t .... A"-" . .... O..~ " •• ' (I) ....... A ......................... """" ... _ .... ............... '" 

...... · I(I_,."P ... .,... ..... . , ..... .... ..,.,f''''' .. u •• , ''''( __ .. ' •• '.l' ... 't.bio .. _~;\!t<b'''"~lJI....t! 

N ... _ ....... ,....t lu,z, "Tho &_01-....-.. <.>1") p ,""" .'"' o<.~ F ........ fipo_~ .0' ... ·10_ .... _, .... ", .... """" ,..,.~ . ., .... \110 \~ CI-<":9i~111'"" 1""H ... 
611 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.546

Even Ihough ~, .. (k) pl an~ hav~ been around for aboul)O years---nol even a full working 

career_Ame,icans hav~ .. ccumula led mo,e Iha" s3 Itill]on in these pl~n'." This figu re doe~ 

nol Include hundreds of billions of doll" .... "ved In 40'(k) plans and ro lled ove r inlo IRAs.'! 

Median 40.(k) "c<ounl balan<e 5'la\<Slies a.e often ciled as ~videnc ofin quacy, but Ihe5e 

slatisticsa'" misleadi"g becau ... Ihey tend to rgno.e olher accoun" th~1 an i.,d ividual mlghl 

have, includin9 ol her 401(k) plan accounlS and IRAs. II Is important lo judge th~ rell.ement 

system ,H a whole. Not aU workers ha~ the same ne ed to sa"e ln DC plaos, as some wlll 

reee",e higher replacemenl rale.from Social Security and some wlll hav" DB plan benefits. 

DC plans have (I'e potentlal 10 replace" significant , ha ,,, of Income III retirement. In 100~, 

EBRI and ICI projKted what 401(k) plans could accumulate acrOSS. full career." The EBRVICI 

40. (k) Accumulation Projection Model moves 40'(jo) partrclpantstl>rough their ca ,eers, Will! 

decisions as they age that reflect acwal participant behavior on (ontributions, asset 

allocations. job chang ..... roll ave ... , withdrawals, and loans. The 5'ludy loc,,,e, on 40l(kl 

partici pants who will turn 65 t>etween 2030 and 2<»9 ('lOW aged 38 to 47). For fT'Ore tha.,60 

peroent of this cohort. their 401(~) aocumuldtions d'e projected to replace mOre th~n ha ll 

their salaries. Accounting for Soc ral Security. the m3jorlty of the lowest income q"artile of 

thiS cohort is proje<:ted to fully replace thei' ~ .. IMies. 

DIne. studies ha ..... cometo simila, conclusions. In a recentlV publr.hed a rt,cle, economist 

Pete, Brady of lei illl,stral'" that most wo,kers can acnieve adequacy by supplementing 

SOCial Security neflu with 'ncom. from a 401(~) plan funded with moderate conllibutions 

and Invested conserv,,\Jve ly.·' Ecol1omists Andrew Samwick and JonMn~n Skinner of 

Dartmouth compared typical DB plans and typical 40.(k) plans under a va,le ty of possible 

labor market and Investment return scenarios and concluded that "generally. 401(k) plans 

a 'e aogood or better than DB plans In providing fOf reliremenl.'''' Etonomi,,, lame. Pote,ba 

oIMIT, St even Venti of D.rtmouth. and David Wise of Harvard "'''mined current ar>d 

projected 401(k) .ccumulal;"'ns and conCluded, "Ou, projections suggut th at the advent of 

" s.._ ~."""' ..... ~ ,,"'ho~ ·'01( )""''''''' .. """" ....... _a.a-... . "" ..... "AU" •• t .... ~ ..... IC, ""'"_ Po_ », .......... ood C9 "'~ ..... B"'J( __ '. o"' .,.j.bIo" ~ .. :9/l!i!1/11!" ~.~ ... ~, ... ,.,......_ • .. "'l.,...., ..... ,."..,. "" '"'71'. u ..... . .... of • ..- cIo ... ~ '" .... ,.-.-. .... , .... f .... d...-..I;..." '" ___ foc .... 

• "_~ .... ' __ '00»<t4 ... ""' ............ _ .. .... , .... ___ ."""' .... , .... "JO' ... , ........... _"' .... , _ ·. 

--" ... , ._ "d '.'" _[l.)"""" " ' J • n._ ", _ •. _ ht>lc . .. ...... u"""' Com",,,,, .... ~u , .. '"Tk< u.s. ~ ..... ..-, "' ... ... F .... rtIo"'-.. 'o ... · ( .. '"'o") ..... _ .. '!."!I)" "' ~,, 4>. 

S""_'''8'~.~ l"'~ ..... -. ~u.5, ,.... ........ , ... ' . ... ,_"""" ..... , ... "' .. ~ ...... , oc,_ ,,..., c_v loWI ... '''''''''''' ,.,'" .~.i _ .. ",...J". " .... lIIP"' I'I'~..m,.'Ln...IO J>4I 

" ,s.. ........ ,."., v ... o ..... ,. · C.., ... >1.1_ .......... ,...".,,,. s.gn<II< .. " ........ r .. Ft,' .... .... k ..... ·I(lPo"f"< ..... 1. ..... .... fDRI ~ __ liN_I>« ~ . .. ~_ ... ___ " . 0'\lll>d~ •• ..l4"i~ n .. EURI/KJ •• >(.\ 1'<0)0<'''' ",_,,,,,",pIoo-ed 

, ... _~~ .. ""0>0<' of .... """.0< _ "" '"", 00 . 0.1.) .... ......,..,_ . 5fto_"."" V.n"""'-'. ___ '" '" ............ ," •• ,,"" ....... <;>, .... "". ood "'" (""'''"''" ..... on 0.'(» "'''''''''' .... 0 ..... Q __ ,: "'_<~,..,."..~ .......... '. ood £S'" 

....... "''4IM'J .... S~ ... , ....... ........., ..., ~lP"'" 00-1>01 

" 5 ... , .. .,.. -.:." ~t{Io) ............ ""'_,. ~"" •• _ • ..-... .... P ........ , ... "'. _..... ......... ",·.06 "' at<~ ,.,,1. "'5 .. "" ;,_. · tI< .. WJI "".I'I_"""",,, ... M"<,~,,, ~,,,_,, ~_h"~_."'" g .. no. " 1.9·41( ... ··<.10._) 
612 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.547

I"'"onal account SiI"ing will ncr a,~ _allh M '~ men. for fu'ur"wir"e. aero" Ihe 

f~lime earnings .peCI"'''' . ..., 

DC plan partidpann and tradif,ona IIRA-ownimi hou.ehold, are ' '''pon,ible "ewarn.of Ihe,r 

,eli'eme"l nest "lOgs. A common "itld.m 01 DCplam i.lhal '''Ii'ee. ",lying on th is type of 

plan could run out 01 mor>ey boolo,e death.'· Anecdotally, man~ beli"ve mon di,ttibutiDfl' 

from DC plan. are lump""m. that a,e spent, whkh contributes to thl. popula' belief that 

people will ,un out of money. Re.ea'ch .hows that a maJority of 'ndi"idu.l. do not .pend 

Ihei' lump-sum payments upon dlst,ibution, but '''the, roll ov'" th!!:se fund. to IRA.o, othe, 

la~ deferr"d pl"n •. '· At thtjunctu,e of ,eti'em,,"1 wilh" DC plan bal",,(e, household. 

Indicate thaI th~y con,ull multiple 'EOVrce.s of "dvl, .. and info,matlon when making the 

distribution decision." T r"ditionaIIRA-owning hous..holds typically postpone withdrawals, 

la~e wilhdrawal. bas..d on life npeClancy, and u.~ w,thd,awal.lopay for living exp~nse •. '· 

AMERICAN WORKERS SHOW STRONG SUPPORT FOR THE DEFINED CONTRIBUTION SYSTEM 

AND ITS ASSOCIATEDTAX INCENTIVES 

A""" ican. h'ghly"al"e th"rr DC plan. and lhe featu,e. tI'P,callyasID<Jar..d with them. A 

,ou hous..hold ." ...... "y demonstrated American hou.ehold.' .trong .I>pport for key fealUr". of DC 

plans, induding th,,;, tao booneflt, and thei, appr~ciation forlhe investment opportunitylh..,;e plans 

provid@," 

Overwhelming support fo, p'''s.. ...... ing the t.x i"""ntl"es for ,etl,ement ... "ing: E[ghly-fi\l" 

pe,~enl of all U.S. households disag'eed when asked wh@ther thelaxadlfBnlage.ofDC 

a ccounts shol>ld t... ellmlnal" d. Eighty-th,ee pe,cenl oppos~d Iny ,eduction in employee 

cont'ibution limits'» 

Many oppo." " It"ring key rearu",. of DC ptans: Nearly go perc" nt of a ll U.S. household. 

di"'greed wIth the ide a Ihal lndh,idu"l •• hou ld not be pe,mitted 10 make investm"nl 

dec isions in the ir DC accounts. Nearly e'ghl 'n l<>diS4gr"ed w'lh Ihe idea of ,epladng all 

retl,ement accounts with ~ government bond" 

" s .... _..,., " ..... 1 .... w, ... , . ,'" a..."""l'L_ . ... .,.._ • ., ""' ....... M s, ..... • NIlfP w .. ~ """"/ No 'l.l ' !S<o..-__ ~ ..... _ ot_ .""', ... .{II;r'l!<J'l*U1!' •• 

.. __ "',.,." ........ ~ ........ "O\UJ ... I".'oDC,..,.,.."' ......... ,JLo><_....,.. • ....,.,;,pIAn".,.... ... , ..... ".,.,...., .. 

.,....._. ,..' ... ,;r •• r' ... p ... K ____ '" .. , ... ..,...".... .. """'_ .. _""~ . .. oc_', ... ,.=_..,...". 

-.. "'_"Ion._ ....... ""m.,Io ... ' ... t>o""'."' .... OC ...... ''',.'' . .... 'd ... ,rGt...-p./o,_'''''.''I''' ......... _v • ..,... .. .. _p ...... OC,.. ... , .... ~'_ _1 .. og"'.' ..... 'lI "'_ ~ ...... ~ •• "' •• " .. bIt., ...... II!<l.I ... jun ... .............,~'fHI,5u9o{J . 

.. !",,50"w-... &o9J'"', •• d -. oo.f_ c ... ,_ P< .. DrilfilwMo CO.""' .... t ~et ... """" ~""""<Ii 01 1'_ .,~"'" 

.. '_ ... '..,' ..... '00' ........ '_, (_".~'iM _h$ .... IF. I . .... ~._ .. _ .... -'P'<JIDd!JM .. i!<~.J>II' 

. .... _""".,.,. .... "-"""",,01._ .. \1.5. 50_""R"~_~'''' ICI'''''''f11~'Ne 'I, no.' 

tN_ .... "o,"' · ........ •• ....... t!""' ''''''i~ 

~ ___ ................ ~C_""-." .~_ ... ""'¥ ,,,..., .... ~,,,"*."""'"'.....,..-, ...... C ..... _....u,"'~ 

I""" ..... >o ... ~ . . ......... , ..... wk!.l!<WpdfJ_ Ii , .... ... , .... ....... 

~,..(F ........ ,J 

• ... "_11-

• 
613 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.548

'nveno .. lik. choke and control of investm.nu: Ninelv-~"ven perc"nl of "II DC iKcountownl~~ housetlOlds a~re"d Ihal il was lmportanl to ""v~ choice In, and control of, the 

nwstm~nt options in their DC pl~" •. s.-v""ty·nin" perc .. nt .~id Ih .. ir pl." off., .. a good 

lineup ofi v"~lm""t option . ... 

Mon I>ous"holds continue 10 have positive attit udes toward the 401(k) system: i~ ty·flve 

pe.c" ,,! of all U.S. hou""holds in ~0i1 had fa""rabl" Impressions of 40~(k) and .imila, plan 

aaoun", .Imila.lo 2010. " Nearly II>.ee-quart" .. ofhou""holds .. ~pre • ..,d confidenc~ DC 

pl.n accounts that could help partie'panto .each their retirement ~o l •. ll 

IUs household urveysdu.ln~ tl>e pout thre~ yea.s find thai eVom in I"" deplh. of a bNr 

martet and despltea b~d economic downturn, American.continue to be committed 105aving for 

"";.ement and va lue Ihe ch"rncterin"". 5UCl> as !.he tn benefit< and Individual CMic" "ndcontfol. 

that come with DC plans. 

EffECTIVE POLICYMAKING REQUIRES A BETTER UNDERSTANDING OF THE ·COVERAGE 

GApn 

While the CUff",,' retirement I"ws and policies ace wor~ing well and are hel ping tens of 

millions of Ame<kan workers accumulate savings and generille retiremenl income, '>Ome argue that 

the.sjl5,em is a failure in !.hal not all Ame"cans have acteSS to an employ~, .pon50red plan. This 

perceived failure I. referred to as Iheso·called "cove,age gap." The fa ! I. that tl>e majori"" of 

p"vate-..,ctor worke .. n"eding and demanding aue .. to "",,,,ons a, part of their compen~at,on 

have pension plan coverage. >t Discussions about coverage, howeve., ofte" rely on misleading or 

incomple te coverage sialiniu. Hous .. hold s urveys, slKoh •• ll>e Current Popul~'ion Survey (CPS), 

typic"lIy show lower raleS of penSion eover"g" Ih"" 5urveyS ofbu, ;n ... " eSlaollshments, such IS th ... 

Nation~1 Compensation SurveV (NCS). For example, the CPS dilt;. sl>ow th"t mo.e than hillf (orn., 

million) of all worke •• Were without pM.ion covefage in '010." The March 'au NCS, on the other 

hilnd, show'! thilt 64 percent of i ll pr'vdte·industry WOf~er$ and n percent of all full·time privateind''''rywor~e.s have acte .. to .. pension .... 

However, evenif one u",,"ln.e CPS dala fur analy ... , looki"g belowlhe ag9regale'tati<!ics 

pa in" a signific~ntly dlff"ren1 picture. Oft ..... n., million wori:" .. wI><> report Ihat their employer 

does not sponsor a pension plan, 17.9 mimo" a.e e ilhe. fede.~1 waf k" .. , stdt"~nd IIKsl wo.h .. , s.,lf_ 

employe d, o .work with""t pay." Thl~ I""ves 59.81"'111110'1 wo.~e .. who are p,;vate-setlorwagear>d 

_!<""l""~' ~_I"'9", • • I. 

000l0~!1. 

-_., ... _"""d.oo. ow .. " ... . .... ,....." .""'''''''Wh>. 'm ... ·"I_ ..... h_". no t~ ,Qu l:> ... _. " 

......... ~,~fl)lo>l1<'1."'" 

.. ...,1.-'9""'., .............. "9"'_.1>8._01; ....... .. _ lobO<, .. u.s .,." ........ , 011.0Il00, 110 ...... l_ ............ "Ii .................. 11< ....... "",,",, 51 .... _ .... "h ,o>~ - ...... 

_uSOl .......... '~, ...... "':., ........ . ,_.0!>4Il»\'~~ ....... ! _, ...... .,. ......... " . ...... 1 .. 01; 

"" ~ , .... ,,aj. ".~ ..... o....t_ .... ''''"'<~_ .. _ •. "_,..,,,.,.''''' .... ......,_ ...... '''''f ...... of_ -..',.... ........ '-" 

~"I<~"'K<Q ... __ .""."'.>« .... _ k .... S<-II .... '''''' __ ... ... . " ........ _ ....... "' '''!I''''~o_ 

... ,,1,,1'''' 'hoy "" .... " '" ......... _""', """ ......... . -.......,,_ opIl .. .., ..... bWo. pO .... _"""'", In 8,""1' _lIogdoo, 
614 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.549

·ala,yemploy~~ •. Vel t his still ov~ .. MI'" Ih~ number on which to focu •. Of th~.~. 5.9 million are 

under age 2~ and 2.8 million ~re a9~ 650r older. Thl.leav~. S~.o million prjvale·",clorwage and 

.~ ary employee. ~ge .. 10 64 who report th~1 the;remploye, doe. not 'poll..,r a pen,ion plan (see 

figu.e boolow)." Or lhe"'. 2' .6 million a'e part·time. part·yu. wo.~ers" an d 7.0 mIllion "r~ full·time. 

full·yur workers-age ~1 10 '9." Thi, leave. n.~ million full·llme. full·yearp" vate,secto' wage and 

sa lary worke r. age]o \0 64 who report that their employer does not ~(l(\SOI a pension plan. Of 

thue. 6.5 million' earn les, lh"n us-oeo a vea"" and 4.1 million earn $'5.00010 $44,999 a year and 

a,e age 30 10 44-" The ,ew ll i. u .B mIllion private.""lo, wage and salary employee. who are likely 

10 de.ire 10 save In the elmenl year and who do nol Mve access 10 an employer pl an. Bu12.2 million 

oflhp<;<! have a spou.e who", employe. SPOMOrs a plan. The final resuit 1'9.6 mill,on p<ivate'3&!Or 

wage and salary employee. who are likely to desire to .ave in the curr .. nt year and who do not "v~ 

acce .. l0 an employer plan Ihrou-gh lhe lrown employer or a "po""". 

"WI\o"."R._, ............ w •••• 0 ... • .... _""¥«1""".,.., II00t_.o ... ~ •• """'''~ 

~, p""_ .... .".""-'u<I<o • • _OCpl." •. )6odI'9nS~ 

" ... " ........ tkT>o. po"'_ w ............ Iow ............ "'gI, "' .......... "' "," f""" ...... "''''''' Tho ......... ""'" ..... "" 

........ ""","''' ... '''''"'_~ .. ,''''''''_'''''''' ......... '''' ... _ .. ''''-\I<''', _If,,,*",,1 . 

.. ,.w."""''''''j/'<MI ..... ,.., ..... 'YI ... ~ ... , W"' .. "..,. .. , ..... .-p • ......,. .... ro....""" I,," ",""' .. 01 . _,,, '0< ~ ... _ ............. , IW _!CI , __ ' '''''' , ... 1",,/ ~CI tot> ...... " ... (><h, <;g..«<, ...... ~ ..,8< ••• "'" 

B<¥l ..... ·w""""",, R."""",,,", ...... """ ""'., M Uodol'" 'KI _,~ ~......." ..... 0', _'JI .......... ''''' ~ _dot ... ,MOW.id ... Jlh><"IJ-" ... j ..... , 

·'r ... ~«"" .... ~_ .... ~ ..... I ...... s.""" ... 'I"' ... "I""" ... ""' ... · ....... ougIo ... I' .. \.""'-.,."hIr>;.".. "' I~ . .. , .. \ ........... .yt>Io .... _ ........ N inrn ...... _ ...... '" "' .............. _to ...... d """~I"'n ..... , ....... " ... 

_"""'~~ ... _t' ........ _"""' ... '""" ............ ...-~.'""'9>-"'~ ........ \, ........... b<,""_,.ojI·~ 

"' .. _lo .... ~ .. _o/"""'g,,_, ....... '"~ ...... I ... rolr ..... _.''"''''''''_lIoo#M~ .. To .... Io< _""'.~ ........... ,Pl ......... _ •••• ,..,· .......... .. ~~,~J~ .• 1o) 

.. W.'k ... _,..'o .. """' •• mo..r-." .. s._ ......... _ • .,-.... "' ...... _IY,o .. ,.,""' ...... _,~"''''''*'' 

....., .. .....,""I._klond"_.-..."...., ..... , ...... .,.,."' ... I_;., .. _'~I.r..,.,.,SoXIoI ... u"..,., ........ ""."'to-._"',OO ........... , ..... • ............. .......,. .. ' ......... II....., ....... '" 

• 
615 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.550

A Cloo." Look al Wo,k.,,. Whoo., Employ'" DOH Not Spanoo, a R.,ti,.,m.,nt Plan 

Millions ofpn'vm~-.e~lorWlJge and sa!otyWOfb,..oge ~1 1064, 2010 

_ 

, .... 

.... ,_ _10'.'" .... - _., 

..a_, ... 1>O! 

... -.... IU .... I00 ....... 

_ 

' .. ..... __ I·""~"'. ..... ""'- ... - ., ... _"'''" '".1 .... Il00_ .... 

}I ... -.,~­ ,,_IIOnI./,"'ono:! 

_ ........... .. ',._-.. _"" """' .""-- ...... , ..... 

:~ :.!!!l;;;;;:::::: ,~:~:". ,. I!!.~[!~~t:j!~~;;!!~~·; .... ~~ .... ~~ .. ~;; ."-; ..... ,~., .. ,, O9Od 4S to 64. 

' '',,"O'''l MI .... c. ",u.yur ,"ork ... >god 1$ to .4. " !J,OO<I e~"to tt» .op n''''''9$ ~ h~ 10th p*«c",,11 <>I 

.MvaI eo'""'9 • • tId U"""" ,.".......n!$ tne tOIl c."';"'!' for!toe Sotn .... ce<JII .. ~ • • "",,1 c.ml"'l" 

N", •. C""'"""",,, may no, od<I 10 ,h. ,o,. 11>«."", 01 "'""III"'l 

So.Ir,o, I" .... ' .... n' C<>m~"y '",Ut"" .. b"~"o ... "o. •• .u, 1011 (U,,,,n, PopII,.1k><1 Su,-", ... y,.dV . n<! 8oqd .... 

"WI><> Go<n ~"""""n' "",",.,..j Wh1, '0 .... · '0 I/a...",h ~ (O<lol><r ,ou) 

Many mar., wo,k",.. Il~~e a(Ce~S to ~n employer plan at son'e point durlngth.,ir working 

care~" lila" i,lmplied by looking at ~ ,nap. II01 of co~."~g" ~I any point In time . ThIs can be.""n by 

examining data on households ~pproa<hin9 retirement age. The f,gu", b.,low .how.tabula!;"' .. 

from Ihe Fede,al Re.erve 60ard', 200] Survey of Consumer Fona"c~. (SCF)for Imu.ehold, 

approaclling retl,..m.,nl(I..,., hous.,hold. with a wo,klnq lIead ag~ 5S to 64), induding both p"vat.,-

~nd publk-secrDl'"~mploye",_" Eigbty-fourp<!rcent ol th"s" pre-reti,..e nousellolds had 06 benefols 

a"dlorr~tirefT'ent i«ount assets, and such rdlrement resources ir~ .pr .... d aeross the income 

distrlbutoon. More than 90 perunt of 'eti,~e hou.elmld. in the top three inco"", qulntiles (with 

totil household income over '55.500) flad such r"tl<em.,nt ~"' urc"s; three-qua""" of p<e-r~ re" 

hou~thold. in .he second ,ntome quintile (with Incomll: of '32,900 to 'SS.~DO) lIad . ueh reti.~ment 

re..,ure.,.; and almost two-third s of pre-reti • .,,, flou!<!hold. in ttl<!. lowest j~(Om~ qul~"le (wltll 

Ilou.ellold income of '],200 to $12,900) had .veh retirement re sourc~s, Allhough lowtr-;~come 

household. a.~ len likely to flail<! both D8 pian promls"s and r.,t;r~m .. nt accounl assets, thr. group 

so ha.I., .. of ~ need to suppl.,ment Social Security .... 'Ih workplace or privale savings to maintain 

,11 .. 1, pre· retirement standard of living. 

" ,_ ... .a ,_ .. "".,r ..... '_'~ofC_", .~."" ... .," ..... ", • .....,. "' ..... DC .... " O<'O>O .... I~ , •• ""I ~ 

00)(0, '~1. 'M!' ...... I .. d , .... 
616 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.551

P .. runtag .. of Pre· Ret I, .... H"".eholds with R .. tir .. m .. nt Ass .. ts and/OI" 08 Pension, ~007 

H",,<~hoId5 with worltmg hNJd alP-S5 fo 64, by income quinl;'" , <'J<Clud~. fOp ond barrom one 

perc<'nI of fh~ ;"come distribution 

..B<>l" "'" .... .., ........... ,&OO • "« __ on!\' 

" 

.--

.. 

.. 

11 isals.o important to rememberth"t hous .. holds with um~d income have access to IRA. to 

Save for 'etiremerot on " ta~·advan a9ed basis. For o:ample, Congress de sig ned the. traditional IRA 

with two goals in mind: (.) to ,reat .. ;I contributory retirement account for workers without aC(~SS to 

plans at work, and (~) to prouid .. a roUove,vehlcie to pres~",e assets accumul"ted in employer. 

sponsored retirement f>lans (both DB and DC). Although a .mall ~hare o f indr.\du" ls contrib(lte. to 

traditional IRA. in any gi""n I"'a .," the majotityof tho ... that contribut .. ma k .. repeat contributions 

In .ucce .. din9I"'ars .... In addition, many olthos .. IRA inveslors contributing to tradit ionallRA~ 

contribute at th .. limit" 

• • • 

Th"-I""0motion of "'Ii,eme'" .avings-wh"lh .. , throu<Jh emf>loy .. r·sl>Onso,ed f>lans 0' IRAs---

h~< 1009 be .. n on .. of Congress' top prioriti ... and legacies. More rec .. ntly, COO9r ..... trengthened 

Ih .. prlvate· . .. ctor"'tirem .. nt.yslem by ,aising contribution limits in ~OO1 (EGTRRA) and making 

those provi.lofl. perman .. nt 1n 2006 (PPA). W .. welcome t~ is Committee.' continued !e~d .. rsh'p In 

.. ","",,",oIIO<'oo"'''''Yoro>Uol''''t'''''''''!I. •• , .... ,_ .... , .. ~ ..... oIl ... .....".d_"oI .. _"""· .... _'o , .... _.'o ~I_I ...... .,.' ............ '."'01'''''~ ....... ,,,..-_ .. "',....,..,, .. ,""' .... _ ..... '1' ......... ' .... ,"""' ..... ,,""',Iooot, ...... _"' ..... ""' .....• "" .,., ........ ",~_"' ....... .. _ """,,,,,,,,ho,,,,"._ .... ,_ .. """ n ..... W<>ugO , ...... pi, ..... '" _-. u' •• ,,_ by''''" ...... ""y , ....... " ... """,.ot, '" .......... <Iedo<_ ' ... '_" ...... "' ....... ,........."._"'''', -..1_.' .......... H ..... .....,.' ... "', ... "'r-... "' ....... , "'""'II' _h~"Y 

_'''''~_r... __ ...... , ....... , __ '''"' .... -.,'~n_e_''''''~.-.. ..... '''I .. ~ .... _, .. , ...... , .. Mb._ . 

.. s.. -. !.abo"" ... .ond .... ~ ..... "'" "'''''''' ~"'fi'" """", ...... ,IRA ,.-.-,'c .. ,;kor_ A,,""Y, "'0'_ ,.,.. WMong< ... , oe ..... ,,,.... ... (_"r '"" ...... \><0 ............ Olwww '" ",,,,,,..t(uItU"-""-''''.'~""'''''u<l1 

' M 

'" 
617 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.552

p"rs"i"9 policies to improve o"r Nation's 'eti,ement system. But any change. should only build 

upon our existing system thaI, Ih,o"9h lax inc""l ive, .. nd oll")e, f"at",es, successfully encourages 

millions of Ame,ica"s 10 a<~umulau savongs du,ing their workingl,ves and therefor" gene'''te 

adequ~le. income in retirement. 

" 
618 

Statement of Jacob Houser 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.553

My name i,J~cob Hou. er and I wi,~ to ""penfuliy expre« my opinion Ih~! renewal ol lhe Production 

lax Credit IpTe) ,~ould be done ••• oon •• po .. lble. 

I am employed In the Wind Energy ... ctor as an inslanaUon and ... rvice technician. Only ,I. month. sgo I 

waS a studenl worUnl': mv way th rough school On an exceptiona lly tl£ht budget In an attempt to upand 

my m ... ,keuble skill. in an area of ou' economy Which seemed a Icgica l field fcr meaningful 

emplc~ment. To mv great jcv, I was hired immediately cut 01 .chool al a hi,hlV competitive wage with a 

good cempanvthat both manuladu",. turbine component, and oentracls te eperate and malnlaln 

lu,binu. t have been traveling the cO(jnt"" every ,ince applying my .kill. in va'jou. reGlcm •• doinG my 

pan ID help 'Dlidily aUf country'. ene'IV independence and luwre. 

Renewable enerBV nat only palls ve"" fa"Drably amDns " "Dter. fDr It< many benefit. ImD" impDnanlly 

being ener"" <ecuriIV), but provide, demestic job, in a time w~en manufacluring In our country ha . 

alm"'t becDme ~ mylh. II Ihe PTe explr"", prcjeclion. ire th.t almost all Krowlh in Ihe wi nd enerir 

<eelD' will /lal.line, the fledgling man ufacwring induSlr'e l that ha ve sprung up aCtD •• tile CDunt"",n 

many dlmic[~ will see an 3utomalicdrop in demand and a~Dffs will begin ,ndusl",,--wide. 

I th ink II Is e!S~nlia l thaI congr,,-s. nDI allDw Ihis ID happen. 

I woyld like to cite room., Slalislics lhallthink will highlight mv POsilicn, 

In 2010, approxlmate/v 85,000 US wo, ke" were employed In Ihe.On.ho,e Wind Ener"" sector. If 

the PTe i. allaw~d 10 continue and grDwtil rales 'emain cansistent across the Un ited State" by 

lOW. that number 1. prajecled to nearly triple. Renewal allhe PTe will also encDurage the 

recently streamlined prac:e .. IDr Dffsho re dewlopmeflt which will double the tDlal number 01 

peDple emplcved dameslk~lly In the indu.try by 2020 10 "'Ore than h.lf. millTon. Thi, would 

ma~e it as large an lnduWy as agricultural production, (AWEA, 2010) 

Wind Energy not o nly promctes jcbs within the scc~ olilS industry, but ancillarv emplcvmenl 

as well, The,e are over 200 training pr(lgrarns in the United States t~at ha~,,- dedicate(! programs 

and sull who wDrk la prO'lide the ad~anced .kill. necessary lor emplevment in Wind. The 

tnatenals inVDlved in the fabrication of turbInes 011'10 ge" e rate de'M nd 1n Ihe sleellndmlry, 

electronics Industry ~nd IT industry, lor spKlal11ed (omponenlS. (AWEA, 2010) 

A, mDn turbines are Siled Dn private land, leasinK a, eemen~ belween the cDmp~nies and 

pri~a{e land DWne" are often a huge ecanemic boon for marginal communities in .ural areas. 

On veraKe, land OWners are p~ld between $1,500.$;,000 per turbine per year. Dr 3,5% DI Ihe 

lu(l>lne's g'Dn 'e~enue. Often Ume<. Ihl. sum is considerably tnore a. II i, tied 10 InflatiDn ind 

elher conditions, ,uc~.s land degradallen. (Wiser, 2001) 

I've heard .rEum",,1 Ihat the Wind Industry (a lDnl: with Ihe 'Dlar IndU<lry) need, tD pr""e It can be 

cDmpetitive bV growing wlthDul ,ubsidy by the BDvernmenl. Thi. rl\elDrk i, misleadlnK and bea .. nD 

,esemblance to the actual <'<onemlc system at plav In Ihe Uniled SIMes. 1he Whole dome5li< enerBY 

~tcr is sub,ldized. BelWeen 2002·2009, The En~lronmentalla'" Inl\ltute e$timile, thaI fossil fue l 

enerlY subSidies amDunled 10 u~w rds DI $72 billion doliars. Ethanol sub,idies in that.ame time period 
619 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.554

we,e pFl'"oxim •• ely $17 billion. rh~ enrire ren bleene,gv sector (ucluding E.hanol) including bo.h 

wind and 5013' accounted fe,,, tompa,ati""ly mod~SI SS bill"'n doli.", 

E.en at 1/14'" the '.Ie 01 subsidy as 10"'lluel., Wind and Scla, are competit' ..... , If bolh we'e to be 

.ub.ldlred at equal ,ate •• thu s prl>'llding no compelitive advantage 10' fos.;1 fue l., Wind and.Scla, would 

be lar morr competltlye than oil, coal Dr n"lu""g3', 

But what I'm advocaling is note.en an Increase- jUlt the continua.ion 01. p'ogram that ha. al'eady 

proven that with "p'Y IInle .ub!.idV. ,e.,ewable etlergy i, 'Mo,e than rnmpetltive with traditional source •• 

prOVides jobs. e ducation al opportunltle. and .nclilarv e<onomlc benefits fo' communi.les, 

PlUS'! ,,,new the P,odm:t ion la. (,pdit and help OUt tountl\' on Its path 01 plosr"ss, 

Respectfully. 

Mr. )ilcob E. ous~' 

2]20 N. 49"' Str~ t 

Milwaukee, WI 5320S 
620 

Statement of Jacqueline Jenkins 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.555

1I<'Orilll1 01/ C .. rlilil/ £'I';r;118 TIIX Prm';,';oll.,' 

The f'TC drfw,I billi/m,< ofdoll .. ,r., ill /If/ml" itn'<!.w""H/ il' /OO/ll,'P,im"1I Amerir .. m ,..",,1 

pOw!!r ,'{J{'ItJ~ {/r, I Iktl"'Si!<!/llhe willilf.'irm ""iil'liIy I"m,<<: l'i'I'iwli:e liIyl'{J""I1I1IJily -

hrill;:/Il!! ill N ,,,,lfliclilJl.jt>/)s II/first, mill mllfmi'i""K'e ;olt:; ill 11K! lOll!: li'rm, "m,'1 

g~I1O!rilf /l1g rl"\'IIIK'.li>r QII' ,'(mml1",il)' sch<">!$ umlllQ${!it"/J I,}'\'I' lilt' lir~liliK' Ilf ,he 

prqjl'cl, lni.n~/Sil1g the umO/ml ll/pOWl'r lilili I!II' /'j,mllry gl:lsfrl,}/ii dl'lm. 1to"l<'g,"' ..... 

uffl,}rduh/(t I'e."(>//!'C/'$ i$ {t" e.r~·("bll tI,i"g,li'" "$/1,} I'" - ""ilthi.. Ilt~,"'edit f'mvi*~' /1/1 

;,,<'elJlil'/:,Ii'" 1/1/.' ... illd iildmt", 10 <'(mlimt<! /(> ""jl',I'"I'III, 

_I IIr;:e II,,· cm/llnin~(' lu wke "I'lill 1',1:/t'lI.IiOil oflhl: "'ind "'''''!:)' prfld"l'liQII I<LI' <'N/lil 

righ/ Awuy. 

a(queli ~ knkin~ 

1033 Wild Flower. Flon.'Svilk, TX 781 14 

ji~rlkil1 v<)l~a I1Q,ne\ 
621 

Statement of James Beckstrom 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.556

ll\i: case for wind power ge"or~I"'g ~k"" lricily ha, bee" O,SIabli,lIcd. "lid "ill cQlIt;nll~ 1<:\ improve 

c~p.l""nli~lIy . ,,,'i<ul~rly "ilh Ih"" 1Rd cn~rgY p..oolli'liOll laS cf\'<lil (I'Tel. 11.,ing bttn in tile 

com pUle, bu<illc", "iocc 11", laic 60 •. J relnCIII""," Ihe IIO,,"er IIf Ihe gll'''''''''''nI ;11 bring ing Ib" 

lraru;iilor lnl<llherealm <lfComlllerdal ",.li1)·. Funhe,. In.: lal< ~ &;...,11 10 "'bjg.oit~ haw prod"""d 

cnonllou. ",subs. Th;, c~;1 w;1I COllli",1O to advanc~ 00"' 1II0ve away from dell"lIIkllC~ on pi.11OIc'"I1. 

a 1lI~ 1 worthwh;le ,...",,11. I would j.8}" even nlore Ihan Ihe lran.;i~lor alld ii, ~""cecJing <vDIUI;"". 
622 

Statement of James Nelson 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.557

Cllll ~S~: l'l u~c ~,,",clld Ih I'TC 

I. Jmncs C. NeliOn. ~ retired university profes.wr ~nd a u;;wjnable-bu~il\C's entreprcl'>Cllr, a,1.,. 

Cnn!!J<'5s III eXleoo the wind-enel'gy production Ut~ credit (PTe) now. 

Why'! 1'he wind indusl!), will u~ this illC~nli\'e 111 accelera(e IIllr n~tionRI cOlw~rsion (0 

ll ~w jn le cncrgy gen,·ration. thereby providillgjooo in all Indu&ll')' on wkkh the survival of 

hum~nilJ' dc~ods. [lut like all induscriC'!l. it lnU~1 plan ~head. and fo. Con!;I'C~ s 10 wait UII1II o. 

!1 cr the PTe ~Npjre, mean> ~ dangerous olll~ in ill\'eSlment. tmining, lnallulilcluring. and 

in~(lIliin g "hile Ih~ wind industry wailS for ('ongre,s 10 mak~ up it ~ collective mind. 

r II.ge Ih" comminc.: 10 \.lke up pn extensinn of the wind CllC'g) productiolllax em.lil .ight ay. 

RCSl!(\:lfull}' and urgentl}'. 

James C. Nelsen 

P.O. ox 1222 

Magdalena. NM 87825 

H5854-2259 

.>0.1 246-29J9 

jcn@ill1c.kan.nel 
623 

Statement of Jane Offringa Rowan 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.558

I, /''''., Oflrlng" R"w"n, ""rlnd,,,,1 S.,,,/,,r Sd.,mlJ! I" WI"Wn Squ""" "n y'w""" re./WClfully urge 

Co"yrf'U 10 " Iend Ihf' wind t Mf'rgy /HoduCllen lall cf~il (pre) 'J! quic~/y os poniblf'. 

10m 0 wefland ond walerre50Urces ICif'n/illwifh m""y yeal1 ofeKPerience i" rmolYli"g the 

envirlHlmemol damage Ihot tokes place due (0 impons associoled with (IaditloMI energywoouctlon, 

from mining 10 cooling. 10 gtne,<IIU",. I am 0 windodvomlt' bffollSf' wind requlre5 no wole, ond doe. 

n,,( Im"",1 woler Quo/ity. // Is II Mghly eJ/ectivt: woy 10 generate elI'Clricity without Impocting IIlr Quo/lry. 

Wind energy producllon re.ulls In some minor environmemo/ !m""cts, ""/ given the dire condillan oj 

wOle, volume and Qualiry in mooy ollWS in this counWI bfi!/if'vt rhol wind ene'J/Y develoQmenl (5 

e55enl"'/. In adaifion, I wont ""')' badly III nat lelylln our enemle. 10 plovide us with Iht fuel we"eed III 

molnloln our notional securily and mmdord of IMng. We nud /0 ~ Independent of other countries ona 

I btlie~e Ihe be51 woy loochleve this i. b)' ma~lmll/ng Ihe generolion of energy in ourcaunlry using a 

""riery of meons. W;nd may not be a !rodirianal way of produ,lng elec/llciry, but II Is the only wo~ to 

"roduce ~nergy wiOl<lul impocting lhe en i'onm~m. Mo.'m/zing wind ~""la" ent could bt a greOl 

woy ra invesl in I/>e "grid", rhol wjJf lII!epelewidry flowing rom/Hentty il! the United Slates. 

finolly. wond energy pr<>duelfon ond t/le nt ed for fobricmion of wind lurbine. in ou, counlry will prodlK~ 

lObs. The w",d energy develQpmtn! communlry tend. 10 ,0n$iS1 o{smOII tn!r ,,~~ul1"and I (hin~ PI is 

essenliol that we .uP/KJri Ihe de_elopmenl and iu'ceSS of rhl. bu.inen sectar that SUm. fa be running 

mMe becouse of Iheir fJII"fon 1M ,'eon enelgy ",adurffon rhon far ge"",orjny a lor of ""/",,'OIe dollo,., 

-I urge Ihecommitlee to lake up on e~l~mian oflhe wind f'tl"'gy Qrodu,rlon 10.!tered!1 rlgh/ owoy. 

T/(onk you Jar the opportunity la comment 

Be5f lego,do;, 

Jone Q. Rowan 
624 

Statement of Janet and Alfonso Grillo 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.559

We urge the House Ways and Means Committee to extend ttle wind energy 

production tax credit (PTe). 

Th3nk you, 

June\ & AtlOflSO Grillo 
625 

Statement of Janet Hirschhorn 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.560

4125112 

trom: 

Janel HkschtlQrn LPN 

58 Ashland Ave 

Methuen, MA 01844·7007 

918·25e·2801 

Iood;'lrvlh@v&l!lon,nel 

T;~e of Hear<ng: Hea"ng on CertaIn Expiru~g Tax Provisions 

To HOUtiil Ways and Means Committee: 

I, Janet Hirschhorn, a nurse trom Methuen MA, respectfully urge Congress to e>rtend the wind 

energy prodllClion till( Cfedil (PTe) a, qYickfy illS possible. 

I woukl li ~e to soo II made a permanent part of our tax code, as the need it fi lls Is not a temporary 

one. 

Congress should not wail 10 utend the credit until jyst tlelote or after it axpires, in order to 

..,Iimina\e eler;tlon oriented grandstanding from negati~ly imp cl;ngl~is Imporlant legislalion. 

~on t want to see il become jusl anOI~e' bargaining cl!ip, 

The PTe drives bi!flons of dollars In private inveslment In homegrown American WInd power each 

~ear, Wind farms generate revtlnue for our communities .. nd, by eliminating po~u ion , prolec;1 Ihe 

heallh and !afefy 01 our citizens. 

Increasing the amount of power that our counlry gets from clean, homegrown affordable 

resources Is not only environmentally responsible. II is also a political imperative as a way to take 

our energy dolla~ oul of Ihe hands 01 foreign oil producerll, thus reducing our trade imbalance 

and laking power away trom somelimes hoslile govemments. 

This a~ cred~ p,ovIdes an incentive for Ihe wind industry 10 continue 10 accomplish all these 

goals 

I urge Ihe commrttee to take up an extension ot I~e Wind energy p,oduction ta. credit f'\lht away 
626 

Statement of Janice Hallman 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.561

April 24, 2012 

HOUSE WAYS AND MEANS COMMrrrEF. 

HEARING ON CERTAI N EXPIRING TAX PROVISIONS 

RE: HXTENS ION OF TIiE WINO !;Nf;RGY PKOOlJCT[ON TAX CREOIT Wrq 

For years Ollr cOllnlry has provided til." incenti,'cs and subsidies 10 grow our energy 

produeliol1. mostly in fossil Iuds. In crc-~sing the amount IIf power Ih~1 the U.S. gl'ls from 

clean. homegrown. al1brdable resourees like wind and solar. is an l'xcdlmt thing for llS 

to do. 

The wind cneryy prodllction lax credit drives billions of doll:m; ill pri"atc illvc~tmtnt in 

homegro"'n American \\·il1d po,,'cr "3eh y"ar. I han' seen Ihe wind fnnllS as I have 

tmvded around our country. revitali zing eonstru~tion jobs, providing maintennnec jobs in 

Ihe long tenn. and generating revenue for hospi!:lls. SCIUlOis, and Ihe slales over Ihc 

!ilctimc of the projects. 

I urge the I-louse Wll),S and Mcans Committee to t3kc up an el<ll'nsion orthe wind ener!;} 

production tao'' credit right away, ~nd I1mke ilbsl at least 5-1 0 years. in order 10 keep Ihe 

del'elopO'cnt Of this power and job creation going over a longer period o hime. We S-:ly 

we want American energy and more jobs. f.:xlL'Ilding help ror wind enere'Y production is n 

way (0 do both 31 the saml' time. II's a no bminer!! 

Thanks for lislcning 10 my commcn!. 

Janice K<ty llallman 

jrhal m"112~!gmaig: n 

5355 Andcrlie Lane 

St. PUlII, MN 55) 1O·~~06 

651·402·7562 
627 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.562

6I28flOI2 

W~) $l\I1d M ..... IS Committee ·lC~ 

Illn LOOJ;\\ooh HIl= Oflic..' Buildin!; 

\'''' 8~ingtOn D.C. ::>OSI~ 

As you a'" ~""n!y "",'~. lhe UOS . ....::ooo"'y;,. !dnJgj,\li"JI, 10 c"'''"f};c f,om l«<."SSion .00 is cnl1",,(1) 

crippled b} high ulK"mploymcm in many p.VU of the nalioll. One brighl -arca Ihal Ius shown job 

g,{mth during d,;,; dil'licuh ~n c i'l """,wable <~""ID . Our """'\I""'I~ .tII."II!Y .flilial". Pruri", 

Rcncwahl..'S. has l'I."I.:cnll} PIll hlUldII.-.cts of f>C<lPle \0 \10110; '" varioJ<lS \'o W polwtr projc.."1S in Ihe 

"'Won, We haw se.cral addilioll"J proj~1s re'.ody \0 move forward in 11'0: ne.Xl wup!e of years. 

hO\lc"~r un<cminly ""I1OIUlding ~'" lroc",II'roduclion Tax C",dil IPTC) cM<mioo m:Jkcs linun: 

planning and dc"~Iopm"rll wry dillkuk. 

While lhe ;n,lu>I,), WlIS li;ortunal<' \0 gain Shon-WI111 eXlrn.runs in 11K' po;.1. lhe.>c s!~II1C' lime periods 

CT>:lUC unceru!imy and a Mboon,..ortd-busl~ "yele of shon-tenn planning. bi·an"",,1 job aoo layoff 

''Ycles. hi~..,r ,,<,SI Ilubi""". and ulli"'"ldy lIigb ... ''IlClty <·OSIS. Wilhoul a 1001'-1,,"11 1l"'1i<.'Y, 

""uuiac.lln't'S an: di)CQlIrnged r'OI11 investing in, and expanding. Illanuf.clluing I""ilil;<:$ in the U.S .. 

and in\~ shy awa~ flQlll dewloping IK"W proj""lS. for I!wse "'awns. Ihr wioo ioou,iJy so<ck~ 11 

mul ~'~ar.m""ion nfll .. PTe ,u Full ,'a)"" 10 .II'" ""eo",';';I,-'IO), and nmrl.el c-"naimy. 

,he", lin.' Sc:\'~nlllK"!'3\iv., cOJW:qllen«S o(Conyesswaiting unliltllc lasl l'I1in"l~ (() ~");Itnd the PTe, 

as the indu>Uy has =n in the posI. AI!<-asl six 10 eight ",,,nth. bdiln: 1m" ""~ l-redil ""pire;, in\'t:SIa<s 

I-.,.;ilatc \Q prov;ru, ""pilai for wind pItIj""ls b<ca_ ... r lhe ~1"'c'f1ainly C~I.'<i . lhe ;mpoooing 

c)<piMion of II\<: c'fdir. ThiS5lt1l1s wind projl1:t d(vclopn,cn,. and add5 tQ>1>. The "",me issue t...:eurs 

on Ih..- man LC facturi~ side. For I~ rea>oos. ,,~ u<,!~ CoogN!;S 1<'1 1'"'" 1eg,,111ion Ihal pn:wide. a 

king-term esten.ion afth. I're \his)'ear. 

!1\C I'TC is a p(l:!il,"c program Ii.". boIh Ih .. .re.'ck.ptn nooli.'tk-...al gO>'c01mcnl. iI pro".lc-:'l U la~ emlil 

W w;,1d proje>:ts Ihal "m,ld 1\01 h,we OIllo:n,i"" ~'tI' buill Any ~)I1!;-I(nn L'I.~ ",wnue p;!id b)I ~ 

projl.'Cl 001 \0 menlion the jobs and ""pponing industries lIul ""rrort Ihese projects. an: a posiliw 

..>00= aftax reWllue thai wJ,)lIkI ,lOt han occm",d Wimollllhc PTC 

IFthe PTC \lC'" 10 lap:;c:wl fail Ie he (x!<:ndcd ... ",r goop:md ~ ~a;;\ maj,"";ly ef li.c wind industry 

woo!dshutoown, All of OUr proj«1S are dcwlopcd ulili1jng the PiC as an (S$11niall'f'\'(n"" 5O\lret! 10 

",:d..e m..s., 1",,)0<;1 """"",nic :md 10 n:d ,,~ the pric",of p" ... r ", <""",m.,,,,. Withoul an •. \le",io" of 

II>e PTe' ~II afour proj""lS would bo: ,lI\ hIlld iudclinl!<:ly ",oJ nil (UIUn: dc"eklpmCl11 \\'00: \lnuld be 

susfl",Kkd 
628 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.563

!'cpr nrarl)' 100 ycal"S. old \o...,hI101<>g;"5 like """I and oil hav~ btnditN from policy !;Iabilit)· !hal. 

I"'m idcs a Consi,1c1It ~",iro"m"1u in which !II plat\. operate, alld grow_ ~ of us in til. "lnd p""er 

induS'!1)' ~impty ask ,,.-,w rcpr (hlo sa,"~ Of'!>OI1lmil)'. t >lron~I) ' u~c )i~ ' (<'I tlk., up "" "/(\(,,,,;00 (,rthlo 

";<111 en..rg,Jr prod"'tKln !3.~ tr«li~ '10 (hal th .. , ;ndUSlI)' Call grow and fC"dli;t" ;calt' <:<:OOOntics. und 

ultimately become C\"~l "'OI"C COHlpetiti,·C. 

S;r><:m'ty. 

Jay Ca..tllmm, 11lC 

549 Sw\h SI. 

Quioc)'.MA 02169 

(617 ) ~9().0601l 

jay@'j3)·=hman.tom 
629 

Statement of Jeff and Debi Feuerbacher 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.564

April 2S, 2012 

To: U.s. House W~ys ~"d Me~"s Committee 

Subject~ Hearl"8 on Certain bpiring Ta~ Provisions, the PTe 

We, Jeft and Debl f euerbacher from little RO(:k , Arkansas, respectfully urge the ConSress to 

exfend file wind energy ProduCfion TOll Credif {PTe} as quickly as possible. 

,he Pl"C drives billions of dollars in investmeots iota Americao jobs created through the 

maoufactunng of the thousands of components of wind and transmission Ilnes as well as raw 

materials supplied to Wind manufacturing, such ~s steel "nd paInt. In addi\loo, many other 

business sectOfS provide products, services,logistics, and distribution aS50ciated with the wind 

energy industry, The e xpaosion of wind energy production that will be generated by exte ..... ion 

of the PTC offers several economic boosts: 

1. Putti~g people back to work, thereby cre~s;ng individual ta~ revenues 

2. Incentivizlng maoulacturers to mainlain U.S. based lactO/ies, thereby suStatnlng 

corporate ta. revenues. 

3. Laying the groundwork for lutur!': development in urbaoiled settings by increasing the 

supply of clean energy altematives. 

The downside, If the PTe is not passed, Is ' he risk ,110' the people who could have the 

new jobs tre!>fed in the wind industry !>nd the thousands of wmponles wh!> W(Juld 

benefit from the industry's !':lIponsion on U.S. soil will hi': beaten, ont!': again by 

intern!>t;!>n!>/ ~omperiti!>n, The predidobl!': outcvme would be cvnlinuing 

unemployment benefits,food stomps, ond olher strains on the federal budge' rhol 

result In reducing benefits for thos!': who are physically unable to work. 

Wind ha. proven to be environmentally friendly and (Ost effective, and it re pre$ents an 

unlimited supply of clean, renewable energy lor our luture. This Produtllon Tax Credit provides 

an Incentive lor the wind energy to contribute to the values, and benefits to all AmerIca ..... we 

mentioned above. It just makes sense. 

So, agaIn, we urge the U.S. HOU'Se Way. and Meaos comm11tee to conSide r the many benefits 

and extend the Production Ta~ Credit immediately. 

Regards, 

Jeff Feuerbacher 

44 Sugarloal Loop 

Maumelle, AR nn3 

Ibacher;@.avl.com 

Debi feue rbache! 

44 Sugarloaf Loop 

Maumelle, AR 71113 
630 

Statement of Jeremy Barker 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.565

I. J~rcn\y Barker. Ilillm Maoai! .... Nonh Can)lina. l'C~pcrlflJUy ur&~ Co ngr<'SS 10 ~!cnd Ihe ..-ind 

cn<.'rg)' pr!>doclioo tAX r-Mli! (l'Tqas quirkly liS possible. 

I ..... urk for a mujor play.". in II,.,' ..-ind energy bu>ill~'5S hcre in .... m'·rica and 1l, 'CISI."llS and ~em,.., 

of the I'TC p."lS$in£ in r;'(:"111 years, "e h;o,e ~n IIble 10 hire owr 100 empIOY<"'''' lU full lime 

cmplo)'~'Cs bc\:~usc nf lhc bu~illl'~ ~ndjob cI'Cation Ihlllhc l'f C driws. II m3kc~ no s,:11!;<,' 10 let 

these la., credil. cxpin: and lei uur sreat cmml')' moW b.ldw:lnls in ren~"'able ellCrgy. 

sp!.'Cificaliy ..-ind. \)~. nut passing the I'TC assoon lIS poosiblc and wilh urgency ourcwlomers 

~rc waltinJl. 1<1 we "bm is II-oinl; 10 hap~n. Bocnu-<;(' I'IflhM "C "ill nOI rccch'e Ill'"' dcal~ nnd 

order> lilr Ih~'Soi: wind «"birn:s Ihus causing liS 10 have 10 lay orr ..... o~i:rs. Amcric~ neoosjnbs 

H"djub cremi"" and lhal is whal we s..", .. 11 "~r lite media and by C"n~s< 001 P"-,,-,inl! lhi., we 

will Sian 10 lake S(cPS b.1ck ..... artls. mjXIoics~;m plan, >l.rnk gize, and runn partnershirs for 

rUIOJ\: ,'OlllrnCIS ,"ICC Il1isl'TC p<t>..<cs_ PIcQ"· l;1k~ tho: johs or \me'ic~l\s into c,-,osio.ler~li(Jo 

I urge lh" commiu"", 10 ~~kc up an lc""io" ,-,rlhe wind ene'¥Y produclion lax c",dit righl 3"ay. 
631 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.566

"tstimony of 

William C. llaro" 

Vict Presid"nt for Public Policy & 

Director or the Washington Office or 

The J ewish Federations of NOrlh lIl erk~ 

lIear;ng on 

Cerlain Expiring '1'3_\ "rovisions 

AI,ri126, 2012 
632 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.567

Testimuny orWiliiam C. Daron' 

Vice l'rc5ident for I'llblit I'oliey & 

L>irt'Ctor of the Washington Orrk~ 

h~ ,Iewish Fcdt'rHlions or North America 

United States liollse WMYS and "'h'. ns Subcnmmitt« on Seled Rennlle Menll ~ 

Certain Elpirini: Tu I'fO"iJion, 

Allril 26, 20 12 

Summary; lbe jc" ish Fcdcr;llions ofNbrth Amcrica ul);<!'s Ihe ous~ Ways l1d Means 

Coml11illc~ In mok.., pcmlOnenl lind e~pand Ihe current incenti\'e in Ihe tIl.\ code Ihal 

p<:rmilS I~ frec Nllo"tr ofindivillual reljr':!1Jclll oc,::ol.lnllO charities ("'IRA haril~blc 

RnlhlVcr'" f. A~ une ofthc nation's largest philanlhropic networks. we know Firsl h;Lnd (h~1 

tal],eted t3.\ incentives such as the IRA Churitabk Roilol er resu" in increased 

contrihuti on~ thut Imll,l:lte inlo mo,,", doUars that e:Ul hc spend for Ihe O\ cr~11 social good. 

We stNllgly belie"e h~t If lhe IRA Cha"lable RollOllcr ,,'as made permanenl and 

~:"p:ulded ;lS !.Iiscussed b<:low, it would ",:~ult in even larg~'f amOlmts nowing into Ihe 

nonprofit sector. which 1I"0uid be especially beneficial as the Nation's dmrities s<!Ck to 

lill lhe void left by d;xrcasing government funding and incrC'~S(d demands for soci~1 

scrvicC$ duriog this tjm~ of ~eonomic recovery. If the IRA Charita!)lc Ro!l o~N ,,'as 

xpandcd to include pro~isions conl3in~d in th~ "I'ublic Good IRA Roli<)l'cr A<'I of 

20 II ." th(.· amount of charilablc distributioll§ nowing from indi"idual retirement accounl~ 

would ~pand llfcally, at linle, or no additiunal ,,",wnue <'OSI to the gtll'cmmcnt. 

B~<'kgrO llnd : The Jewish Fedcmtions ofNonh A",eric:l (herein n:fcrrrd to as "JI'NA '") is 

the national organization that repTC'Sems and s..'nl!S 157 Jewish Fcd.:rotions. lhcir 

affiliated Jewi.~ h communily fuundallOM and 300 imlcprndcnt Jewisll cOIIHllunilies in 

more than 800 cities 3nd towns a~ros~ Nonh Antcriea. In their ~nmnlllnilics. the J~wbh 

I'rdcmtions and Network voluntco:rs (collcclivcly, the '"JF"NA System··) arc the umbrella 

jewish rundmising org3ni7.l1tions and the cent ro l planning and coordinDtiog bodil:s for an 

, 
633 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.568

e.\lellsi"e network of Jewish health. educalion anu social services. Thus. lhcJFNA 

SyslI:nl represents mcr onc thous.arnJ ulliliatcu agt.11t:ies ~nu s~rvcs scver:11 million 

inuiviuuals throughout thc country, 

JFNA conducts an annual lunuraising ("Umpaign Ihat coll("(:livcly nllses all\1(J$t $ 1 billion 

syslcm·wid(.l ~'ach year lrom over 4OQ,(){)O dUllors. In addition, Ihc CnUUWnll'l1t 

dep~nmel\1S of I'eder.ilions or lheir affiliated Je" ish community foundations raise in 

e.\ccss of anothl'l" 5 1 billi!m cach year through charilablc vehicles including dOJ1\lr· 

ad"iSt:u ruods. supP'Orting oTganil)ltions, (together referred to a "porlkipatory funds"), 

which suppurt one Of more Sllcdlku public cimritics or progmms through an aelive yanlmaking progranl. liS well as maintllining charitable income plans. The combined 

<.'ndowmcnl a~scis urlhe JFNA system is in c);cc.~s ufS 14 billion anu annual cndnwm ... nl 

grants from the parlicill3lmy fund$ and othcr endnwm~nt ~seLS is appro)(inmtely S 1.5 

billion. split rn:twel'n Jewish organizations and those of the gClll'ral ch3rilable (leClor. The 

IRA Charil3bk Kollo,'er is (Ulother relalivdy reCti'lL inCCnlil-'t: 3dd~d 10 the incom~ ULX 

c<)de which has ma terially illc~asing giving 10 I' ed~mtions throughoill thc counll)'. 

IRA Charitable Rolton r: A qualified lax-fr"c distriblltion from indil'idu:t] R'tiremctll 

accounts provision dciinl!d in Code section 408(d)(8) was add~d to the feder:llt:l_~ law by 

Ih.' Pcnsi(lII Pro\e<.·lion ACI of2oo6, Unfortunmd),. Ihlt provision ;:ontaincd an expiration 

date of Dcreml)cr3 l, 2007, and, as such, hasjoinoolhc growing list of SIJ-e~lIcd "ta); 

c.\tcndcr" ilcms that must b;: r~ncwl'd by Congress. The currem 1"li ion ofthc IRA 

chllritable rollover. whid, expired 011 Decelt/ber 31, 101 f. pennits individuals 31£': 70\15, to 

nlakc \JIx·fo..'C chariwbk: gills "fup 1(1 $100.000 direclly from thcir individual relircl11 nt 

aceQunt to cligiblc cl13ritics. AmounlS rolled over arc nm takcn into income by lhe IRA 

o\\ner lind arc nOI eligible for a charitable l'untribulion deduction. Howevcr, such 

roUo\'eT11 qualify as ~n iIlmual rl:<iuircd minimum distribution from the o\\ner's IRA 

II ~ imP'Ortam to note that the Ift,\ Charitahle Rallow r isone of the few provisions in the 

tax code that providl"$ an incentive to give to l'h3rity to those taxpayers 'Iho do not 

ilemizcd thdr deductions. A5 not~-d above. 3Hloums thm quali~v tor Ihc IRA Charitable 

3 
634 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.569

Rolio,'cr do nOI quail!) filr a charitable contributioo dedllclion. Such :1l1l01lnts. howe.'er, 

!In 0111 b~w Ij) b,: IIIk~'1I iOlo in~"Onlc. which can hi: cquivall'nt In a ch~ritublc cl»llributinn 

(k'ductioll for the mort: Ihall I\\"o-Ihirds raIl13~1).,yer.; \\"ho dl) not claim ilcm;Z'--d 

deductions. As H<>usc Ways And Means Su!x:omm'uc..· un Scll.'Ct Rcvcnu" MeaSlires 

Chuinnan Pal Tilleri slaled OIl OCtober 21. 2011.,"Th .. char;l11bll' deduction has btoen in 

place nc·arly a century 110" ... and has ,'ru;tly improved life in this nu)ion. It ha s fostered II 

strung trudilion ofA!il ing. which h~s $upponed education. Ihe nns. scr"iccs In tile poor. 

medical m;eard nnd otller progrumS thlll enrich communities and benefit all. " The IRA 

Cllaritabk Rnllowt, a similar Iyl'<' vf cllaritablc giving inccmive, "1>11 h<:lps provide 

charities wilh Ihc nCt:cssary n:soun:~'S to fOSWT social good. 

b~rit blf girts Itl JfN .... recein d (rum Ihe IRA ChuitML.'le Il O"~r: The existing 

I ItA Charitable I((>liov<'r has bi'en an ov"mh<,lming SIlCCC"S for the Charitable ~<' (lr in 

generol, Md the JFNA ,YMcm in pllniculnr. The IRA Charitable Rollover helps charitics 

provide nl.'CtIcd socinl scrvices 01 u time whclllhcre is both lin incnllsed denllind und 

fcwer n."'iourccs ;wail hl e from govcmml'lll >llUll;l'5. !n a rt:luti\'cly shun period oftimc. 

~wish F~demlions h3~e receiwd mure tlllin SJO million in cl)lllribulions Jj',"11 IRA 

charitabl", rollllve~, through targeted cumpaigns. such a~ une to atlrnCI mllol'cr gifu from 

grnodparcnts 10 help tuml Jewish ,ja~ 5tllools. 'I1IC l'\:Sultinl.' charitable roll(lwl gilb have 

eoabkd Jewish I'l-dcnuions 10 accelcrmc capital campaigns 10 linunec new coru;troction 

projectS. expand es ling social Scr" ic"s pwgr'.;ms. among other wi>nhwhik projects. In 

addition. nmny donors hOl'e t'lhn ad \'a nt:lg:c oflhe IRA Charitable RollovCf provision to 

fund an CndllWnleHi for thcir wlIlual Fcdl'T"dtioo camp;li!!n gin. Each ycur since the 

provision has ~n enacted and ~cwcd. s<:vernllnrgc Jewish Fedcnltions ha,·c retcll'cd 

rollovcr cUf1tributions in execs, ofSI mlllil)n. 

First JfNA Recommt ndHtion: i\I~ke the ritA Chyrityble Rollo"u rn"'nenl. We 

n."'"mmend that. at ~ mioimum. Ihc IRA Ch~r;tahl" I{ClI1O\'cr he n",de 8 pcrm~n;;nt pari 

of the r:~dcrul tax codc. Wc 8d,'anc<, scI'crulllrguments in EII'or ofmakinl!: thc provisIon 

pcmlallCnl; 

• 
635 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.570

I. The cUITCnll~w that allows the IRA Charitilbh.· Rollover [0 expire anll be 

rt'CO:lCK-d :ldds nel'tllcss confusion to wxpaYl"1"S. lllt:;r fiu;]uc i;]1 :ld,·tsars. ;tod 

the charities th~[ can beneti! from such transfers. 

2. Because multiple p3r1ies lire involved in any qualified chllrilnb1c distributil1tl 

under Code sec tion 408/d)(8). (the IRA owner, brokel"3ge limls 31]d uthers 

lhat maintain or ;]Cl as trustt'Cs of such ~ecounts. und public cimritk'S that 

qualify TO rcc<,il'c direCT di~Tributions) the nc~.,j Ii" pcmmncnce is magnified. 

3. The intfruction orthe quali fied charitable di51rillluions ~l1d the required 

mUtinwm DiStribution T\."<iuircments m:\ke il es~ntial \balta ~IX\ytrs k.no,~ thi: 

law wittl certainty. Potential confusion Ill'er ttle iuternClioll ofttlcse twu 

pf()visions can be exacerbated when Congress fails to e~tend thc IRA 

Chnriloble Rollover provision before e~pimtion olld is forc~-d to UO so 

retr(laCl;"t:iy. as was the ease in 2010 when the statuti: eXh::nJing tile pfOvision 

II as cl1a~'ted in December retroactive to the prior Janu;!ry. 

Stcond .IFNA R~co nlln nd .ti f)n ; E~ )a d cllr n! nt law 1<1 include provisions 

cont$illf d in tb~ " I' ublif Good I R.A l{o lJow r Act or 2i111 ."Bi'p3rtiS;in legislation 10 

make pt:rmun~nl und expand Ihe provisiol1s of the currenl law IRA Chnritable Ro!lo~er 

has bcCll inuudllced in thl' Senme and the I louse. S. 557. introduced by Sens. Schumer 

:.nd Snowc, wilh 12 c05pon>ors, :md I-I.R. 2502, inlroduced by Reps. l!erger and 

I3lurnm:lucr and! 8 cosponsors. The m3jor prm'i$ion$ in Ihe "Public GOQd i RA Rollover 

Act of201 !" would (I) make the rollover pem.nnenl: (2) remove the current S 100.000 

annual cap on qualified ch~ritable uistributions; (J) allow donor aUl'ised funds, 

supporting organil-'1tions, nnd privru .... foundations to Tcreive qunliti...-d chnritahle 

distribillion~; 311d 14) provide [RA owners at ~ge 59\1, with 3 planned giving option such 

as using Ihe rollover 10 fund H split-interest (life-income) gift through n chllTimble gin 

annuity or charitable remainder annuity truSI. Although JI'NA nrg,es CongreS51O ena~1 

the ··l'uhlic Good IRA Rollover ACI of2/)11" ~s introduced, "c wish to providcspecitic 

e""lIllcnts regarding twu of iTS main provision5: 

, 
636 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.571

o Allow donor ad\'ised fumls, SUllporting orglln iZlllions, and IIrinllr. 

foundations 10 receive Ilulilified charitable di lribuliou , Over the PHst 

scveral decadl'S, the JFNA syslt'l11 has b.:en proud of tile growth in eh~ril4lble 

givin!! tha! has been generated through plann~d giving vehicles. Of spI.'t!ial 

impon~nce have b .. .-en panicipiUUI)' funds, such as donor mll'ised funds and 

supporting orga ~alions. whjeh arc css.:nti~1 in creating a bro~d base of 

sUPPlm for the Jewish (1)mmunit)' 10 fulfill its soci~1 St'rYi~ cs 'n;ssion, 

cSp<:cially in tiOlts or",conomi;; diSII\.'ss, Participatory funds h~vc b<:<:n an 

ind;,pensiblc tool in cm.'Ouraging intergener.,tional inY(lI~cmcnt in Jewish 

charily through family philanthrQPY, In addition to prol'iding fi nancial 

rl'SOUI"CCS fur critical h.uman ~rYices in Ihe local Jl'lI'i~ h lind general 

communities, these charitable "chicl..,s also ad,'ant('. Ihe values and gools of 

the Jf NA SySlem Ihrough nurturing ri.'l(t\ionships between Jewish 

philanlhropists and Fedtmtion lay and professional lead"rship as well 

l'stablishing priorities Ihat consider Ihe future needs o f the Jewish cl)1llUlunity. 

SUl,h partieip.1wl)' vehicles prol'ide a reliable puol of dnlbrs ttl fund a varict)" 

of .'lQCia l scrvice actil'itit"s, in particular support of a ~-d emlion s anl] u~1 

call1p ign, which 1\.'111ai,ts the top fuodroising priority ufFcder~ ions . 

I'crmillin{;, indeed encouraging, particip;tlory funds to c" ist lor C}(tendl .... 

periods pl1l1"ide greater npPl)nunilies for sponsoring Ofgani~;ujn s such as 

' "wish Federations 10 build a "ollaborali~e philanthropic relationship with the 

dunor and the dunor'S family. One of the greateSI stl1'1lglhs of Ihe JFNA 

S),slell1 lies in its uniq ue ability to maleb donor' ~ intcrcslS' with Ilmding needs 

in the Jcwisll connnllility. BecauSll donur advis<'d funds can cominuc for ,Ill 

""tended period of time, including: Ihe lifetime of the dOllor and spouse, heirs 

alUl additional suceC"Ssors. Ihis rcl3tionship cominu"s to grow uvcr tillle and 

succeeding gcncrnlions of Jcwish eummunil), lead~rs can Ix> l'o;lstered. This 

providl"S the JFNA SYSll'1Il "ith a v,lh'3blc 1001 to cducate future g~ncroliuns 

of donors SO Ihnl thcoy Clln b~colllc clTectivc funders in the fut ure. As Ih" 

I lousc Ways and Means Contmincc continues to consider lax reform option~ 

b 
637 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.572

in geneJ"dl. amI "ta,.. cxtender.;" in partkulur. JFNA urgcs that growth in 

participatory ehiclc~ be allowed 10 Ilourish ~nd urge that they b<: ioclud~d io 

the ddinltiQn o f charities that arc entilled 10 r<'eelvc qualilied distributions 

from IRA Clu'ritnllie Rollovers. 

o Prcl\'ide IRA owners al a ge 59Y, Wilh a plllllned gi"ing option such 115 

nsing ~ rollo\'tf If! fn"d g splic-intutsl (Iife-iucomt) gift throngh N 

charilable gillllnnuity or chllrilil ble r~maindcr a nnuil)' InUI. :rt p~nsion 

o rtht IRA Charitable N.olIO,wl6 pennil those agO: 59\1, to fund life-incomc 

eharital1lc giRs could a lso pm"i(k ;lddiliooul re50llrCl"S (0 Aml'riC"d's chariti~-s. 

as ,,"elias provid~ a safe aod reliable rc1um on investment ro r donors \\ho 

ho~e this option. Gill :lulluilies havc :I 10llg history as a well·regulatcd ~nd 

popular method of t'imdl'3ising for harit~ble institutiollS. Existing stat" and 

fedcJ"~1 rt'gulatioos will assure thai proper ~ndilS accrue to both thc l'harity 

~od donor ~od CJ<pansion orthe IRA Charirable Jl o~er ro cover~uch Sift 

arr~ "gemcnt$ should oot result io ~nr addiliooal rcv~'nue loss Ilcc~usc tlte 

~JUJual pa) m<:o tS 10 donor; " ould remain IltXablc at ordinary inCOme roleS. 

The IIIl Jorta c~ ofTu Incenl ivt'li in Ihe Inlernal Rennue Code; Similar 10 many 

other lorge 1I3tiooal eharitics. th~ JFNA system ha;; a sophisticatcd fund raisins openllion 

as well as highly-oq,3nizcd proc~"{jurcs ror all!)Cating such colh:ctcd lIloni • .,; 10 fuod ~ 

broad rnngc of ;;ocial se rv ice pro,gmms in th~i r conununities. I'crhups rh~ primary mission 

of lFNA is 10 assist Federations as they inspire Jews to fulfill their relig ious Jut)' to be 

charitable by sceurin!; the lin:mci~1 and lIumao rcS{)urccs ncccs'klry 10 care for lho~ in 

need. rewuing Jews in danger, and ensuring rh~ continuity urlhc Jewish p<:Qplc. This 

crirical funJrnisiHg lask is ~"S enti l \0 provide rhc srrJrcgic resources and direction 10 

Itelp local Federations fulfill their indi vidual :md c0i1crtil'c rC5ponsibilities to impf{)\'c the 

world. build community. ond foster Je\~i h rcoaj~~ncc. As 1l0red above, thc IWO key 

clcmcnt$ 0fsuch fuodrJi!iing is a highl -r~ c0so illxl anmml campai!!!, supplcmented b) a 

!IOphisri c:ttcd plonned giving oprnuion thor lIlili le~ a number of establi,hed 311([ highlyregul~k'<l charitsble gi\'iog . ehicks, including the IRA Charitable N.ollowr. 

7 
638 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.573

BccauSt the JFNA system is one ufthc l~rg~'S1 philanthropic nl1works in the ualioo. our 

perspeC1in: on charilable giving ond thc Importancc of tax inccntivcs is grounded on 

ye;lr\; of e:(p.:ricnce. We see the impnut of economic und ta~ factOl'S on charituble gi"ing 

eve!) <lay . At a time whcn uur social ser.-icc partJH:rs ~r.: being asked to ml"el incre~sing 

dcn[.,uds fur services and gOl'cmmcut fundin.!! m the federal. t~te ;md locul level is 

shrinking. we know [hal charitable incentives in rhe ta1( c<)de are more important today 

thOll ever. 

JFNA appluuds lhe House Ways ;md Means Commilll'C ror ils dciibcroliq: process :md 

sc\enll-year long study or the mall)' issucs which need to be conside ..... d in contemplating 

fundomcntaltux refoml such us Ihe isslies raj,ed by making " las e.Jtlenders" a penn.ment 

part o f 1M t:l'< code. JFNA n:mnills oonmlillcd 10 ensuring tllat rederal la.1( policies 

continue 10 clleour;\ge pril'utc philunlhropy ;\nd urge that Ihe IRA Ch~r lllh1c Rollover be 

m~de penll~nent and expanded as outlined above.. 

Ith~nk IIIC cOlllmilK't' for Ih" oppoT1unjly 10 prtg,:,nllh!s teslimony. Iryou haw any 

u~stions rC'garding this submission. please feci free 10 cunlaCI William C. DarotT. Vice 

Presidcnt for I'liblie Policy ami Director orlhe Washington Office 3\ 202-736-5868 or 

\\iJ[iam.daroff@ jcwishreJ~rat ons.Qm or Stcven Woolf, S<:l1ior tll ~ policy counsel 9[ 2U2-

736-5863 l)T 5Ic cn.wyOlf@c l'o ishI Cd (",.uiolls ~ 

, 
639 

Statement of Jim Wiegand 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.574

The wind industry dl"st'rvl.':!l No Tllx Credits 

I "'ad lhe "'pon ~ubmiuc..J 10 COl1ilfc's r",,,, lhe California £nefg), Commis,;ol1 

ro"ccmi"l! , ... ian MQn.o.l;ly frQm winJ lurbifl(.' alld wind farm infl"llSll1lcwrc. In my 

QpinlQn CQngre~~ W", lied IQ af\<l delibernlely mi~l~d at>oUI Ih~ d"ng~rs oflhe propeller 

slyle "ind IlIrbin~. IfCOfIgre5S has lh~ (ime to ~(JCnd on ROOlll'T Clemens for his 

lestimQny. surely Congress has the I;m" (Q investigale thi. ,,,"ch moI"C imponam m,ller 

COnCc'Tllinlllhc Mnl\l\1 slaughler ofmillil)n~ Qf birds aoo.l the ongoing CO"'T-UP b) Ihc 

winJ induSlry. I cn .. -ourlige "\"~f} membtr of Congress h' ,,"':Id my repon 1>..·10,," and Ih"~1 

II\) b~ck "tId ~omf"'re ,h~ S'"tcmc'US SUbn,;lk'(l ~ IIt~ "'rrn.:nting Ihl' wind i"dus":.. 

THE l~ "EAR WINI) IN1)USTR" CO"EI-t-ll l' I'u! I 

A recenl siudy f",m Spain eslimales bird monalily 10 be 6-18 million b;rd~ and hats 

annu~lly from Iheir IS.OOlllnsw.lkd "ind \\l,bin~ wilh an i'L<l.lllkd cap;Jcity Qf~O.676 

MW. Thi~ WQrks <>OliO a SlaWringlolU1 uf J 33- 1000 birds and bats P'" lu,bint or 290-

871 ,nort1llilies per MW for wind enerllY in Spain. In AmL'Tica. on th,- A WE" w~b sile 

Ihe "'pon .. -d bird death rule fro", wi"" lumines is 1.9 falal ili"" per MW. 

rileS<.' mlm~rs (rom Spo.in ~.c 5C\'eml hundre;llime'i more Ihan Ihe rt'J>Or1~d morutlll}' 

from 1m, wl"d i"duslly in Ameri~s . n""e is a rc!lSOn fur Ihis is d;spant)·. Iii. bte.usc of 

,,·ind indu~lJ) i(\lerferi:n~e. II has De~n gQing On for Ihe Iusl 28 reut'S und still I" this d~y. 

the .... • nos nOt been a properly cOnducled bird mon81il)' Iudy do ..... in "'mer;"..". 

To rull~' 'lIIdl'f"$,,,,,d ,his cQ"cr-up I run gQing tQ ak~ a look batk tQ Ihe ""ginni".!;. Qflltc 

wintl indllStry, beeau", wllllt look place'n the l'JI>Ws. S<.11he indu,1ry Qn a palh that they 

5lillircad Qn toda}·. 

My d;",u""ion Qflloc condQr fro", the ""rly I ~SO·" will bnng to liW'la combinaliQn Qf 

fDels and circlnnstann""S nC,'cr befo", discloSC"d aboul Ihe "inti Indus!ry. Wltal h~ppcnl-d 

tQ III<' cnndor ill pan Oflt Qf. IWQ pan jilYe,;ligatlO11 <nlll lite 28 Fnr bird ,"()f1alily ~'J"~' 

up by thc "ind'ndu'lry. 

In 1980 lhc wind ind,r;1ry wa jus ! b(oginning to...,1 rool~ in Californ;a. Wind "n~rI!Y waS 

a new fromi"r. a n~w I""hnology ~nd ''',"'''IOrs '\IIw U gre~1 0pPQnunil)" \1> reap pr1)lils. 

J)U,inlllh, .. SlIme lime the stIVll!lling condor population. by best ~srimaICS. was dQwn 10 

unly 15 1t,)5 cundor!; left in lhe wild. I"I.~ S1l.HII tx'pUlaliu" uf <"mdors WlIs "'()Il ;d~,,,d tu 

be sumcwilal st.ablec,·cn Ihm,gh;1 ,,"os sc,"~,cly cndangcreli. Thei, .mall numbers h3d 

I)t<"!l hanging 011 for SC"era! dcrodes bUI Ih"}' we", d""li.,in~. BUI U.c'r ")<aCI numbers 

Were in queslion bec~u>c their hug~ foraging (e"iloriL"S cov:rw s.,vcrallhou,"""d squa", 

miles and ,,""Scarcbcrs "~"'n'15u,~ which birds th~y w~rc see'ng 31 any given locmion. 

In 1981 1"0 res~rd.en Noel S nyd ..... and !O,ic JOhnron ""I QUIto gCI nn c.U<:1 condor 

numbers by ""lIin!! up 1 1 di/fc",m "aliQnl in Ih"ir fQmging habilHl. ' rhis """~ "uoe '" 

they .. "mid get rhmosrdphie demit. of every cood", Ihal would rnwid,' distingui,habl,' 

char~clerisljcs of all the indi"iu"al conuo",. In 1982 theyC!ilinml~'(l21-2.j "·,,,,UQcs. The 
640 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.575

nt'xi Y('ar from dala laken up 10 Oi;lobl.r 30 1983 11\0:)' c'Slimalc'tl 19-22 cond01S remaining 

docomcming. a <lcdine. In Iheir "'POri thc)" al,o nOtcd ~'HI at the cu""nl downward In·nd. 

il wa~ PfOjectN Ihal Ihe wild condor population woold go e~linct somelimt t..'lwccn Ihe 

1993 and 2003. 

J"SI 15 monlh~ 131cr in Jan"",)" 1985 "'po,h Came in ti-om Ih~ fidd lhat OIlC or bolh .dllil 

cun.!.)!"!; w~re ,nissill!! !mm Il«:ir respl">:\in! hrecdin~ Icrrilories. In April U!I<llhc' eMdor 

wa~ foulld dead an-d was detem,ined 10 havedi .. 'tl rrom Ie-dd JJOistming. The pUp\ll~lion 

was duwn 10 "nl)' 0 cu,wors .IId ill II shon sp.:l" ofjllSl 15 momlls. the pop"latiu!! had 

dropped b)' mo", Ihan 50%. ,\. il ... as ;: ~led lalcr in 3 FWS doco",enl "il w~~d"'dr Ih~1 

:\Orne di~lcr bad slruC),"". 

After I~ cala.,rophi, loss~s. a decision wliS m<Uk' 10 tmp the remaining condo!"!;. Eighl 

oftbe 9 rcmainiQG cond\lrs were eaptured and I'll! into ':'llIi"t\)". 

W~. it lead IIO'Mming? II w~s well documented Ihat cxposure 1;0 lead wa~ lilling 

condors bulthis had bcl!n going on for dttadd.. While it w~s mrut likely lhe primary 

rc~.so" for tlltir I;",dual dc·di"" ov~r Ih<: decades it is !I'" ",asonablc I" think this was Ihe 

ca"se fOf Ihe sudden d,-dinc. In f9cl IheirespOSure II) lew frlll;"'Cnl~ had likdy 

okcrrnS<"d owr the years bc<;au!;e hunli,,!! pre.<.,ure h~d declined drnmnlitnlly from rhe 

1930s and "arly 1%O's and wounded dccr Itft in rhe field in tlleir habilal. w~l"t' far fewcr 

in lIurnl:>cr. In addil;un the ...... naining cond()f"S had \x"<:11 rec.i";'11; clean suWlemcnral 

food II f~ding ~Iations Ii" yea!"!;. So "hat did kill ofrlhe condors "" dn"nalitaliy and in 

such D <bon 1"-'1";011 ort;mc~ 

Th~ FWS St~t<:1nem ..... ~~ correct. a disasler had sln,ck From 19!i:3 throul;l11985 the,... 

wa. an c'plosiolt of wind dcvdopment which added O\el live milii"n squ:uc fect uf 

spinning" ind lurhine blBd~s inlo rhi~ same area. AI the end of 1982 Ihen:: were 323 sma ll 

wind turbines thaI had bt.~n reccmly plat~ in the condor hnbit3t . By Ihe end of 1985 

Ihous:\l,ds ofne'" and larger ",ind lurbines had innded their hQmc. "hkh included Ihe 

Teh.ch3pi .. ~ss wind re.sou",e area. Wind de"dopcrs had increased their fOOlpri nt ,,,ith 

19 limcs more rotot 9"'CCP!oll the)' could 10k<· ad"antaj;~ of expiri0il W~ er~dil< thai 

wlnlld end 31 the of 1'J85. It would pro,e be the final blow to Ihe condors. 

We kno" lOt- c~nain wind lurbine'S .l.1ul;l1ter all spccicsofbirils and Ih;, new frontier of 

wind "'-" 'cillpm"nl ,.11.<; put in condor MhitM. We know thi lx'\.'II~!'C tht study ofNocl 

Sn)'der and Eric Joluwm I)t"(JV~d it. If you look alt~ map provid"d from the ~lu"Y. 

stalioo 18 was ulle oFtJl£" r~arch locatiuns where Ihe "{",d~ were rh<lt<Jgnlllitell :,rion 

18 was vn~ of the rcseareh location.,; whe,e the condors we,e pholographed. The;;.: '\\"o 

researcher.; alSf> ~pon~ Ihat all III. condors wcre rIltuind,. ",ovi"!: Ihro'tllhout lheir 

habilm and "ctt phOlogrnphc'(j al multiple st Jli on~. What this m<'3n~ is that Ih~ conllurs 

w~rc f".'qucfllly passing. u\"Cr Tehachap; wind lurbint ... as Ihey 1111"ell~d From Ihe North 

Eio~1 area Ilflh~ir r~ollc (~Ia lilln s 19. 211 altd 21) lU 111<' So",h WCSt "rca ]m()!;1 other 

stations). 

I ,IS!,) took thl.' InaI' frQRl rhe Snytkr, JohnSOIl sl udy arid SU)lCI"impcJSCd it '-'" to a Gwl;lc 

canh image. Wh~n I blew up the ;m3M" ..-hell.' sI.1tion 18 is local~d. il wa~ in lhe middle 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.576

ofa wil1<.1 <.Ievclopmcnl ('itt ~ndO'led imag<'j. Ev .. n if " .. ..., not. il i~ still in Ihe hean of 

thcir habital ,n the T .. had13pi Win<.l Resource Area. 

In nnQlh r deve!QPlllcnt. in April 198~ after th .. 11·"WS Qflh~ mi~sin¥ c<mdors was 

revcal<'<l, the Ca lifon,ia Energy CQmmission «(""(") i; ued a major St3tcmcm cone"min!; 

Ihe cundor ,n a Wi"d Energy Developmem in o.lifQn,ia StalUS Reron P500-85-00l.pdr. 

It ,,·as <.Icc1afcd IIml ",\ "".jor cunn i", .. ·itb .. ·intl tlenlu!,mcnt \pri",adly in L."" 

Angeles. Ve nlU,.,., "Hn. Tulare, King~. Sa nl~ l!.a rbl\ .... ". San tuis Obi!pu. ~nd 

II. lonl ercycounties) is the California Cllnd!)r. The Califomia CondQr IS n~arly ~:<li!l<t 

all<.l has been dcsignate<.l as ~ Fc<.lcral and .t~le C,,,Lanl!co:d spceiCll. 

"lk..::IlUSi: c()ndt'V"S tend 10 soar along ri dgdincs. nre IllTge. and nOl vel)' m~neu>crabk. 

the "rin" ... , · enneern ~ cnllisinns wilh willd m~ .. hinH and tTaJU;mi,sion line,. CQndOfS 

ItS well as other birds. ar,·1utown 10 ny into lall objeets"_ 

"The Condor RcScare\l Cemer (eRe). funded by Ih .. US Fish and Wildli n, Service. lhe 

SIRle Departmcnl ofFish ~nd GR,ne. and the Audubon SOddY, ha~ proposed lhal Wind 

d.,vl'lopmcnl be cunail ed in ConUorroosting and fOr'Jging habitat. (See Map 2) unlil 

IDOre datn is ava ilable about till' bird and 'I11til the condor popUlation isincrea!led 10 a 

level where it muy be possible for ilto sustain itsdf". 

"The eRe e.timnte~ that il will prQbably be Ihre~ 10 I;"e ye:.,-s before adequulC 

;nfonnatio" is 1I\'ailablc to <.Ictennine. with any aecuf3cy, if and "h<"" d<lvdoJl<.'fll will be 

able to construct wi nd lurbinn without cfl'otillg 1\ hJ~ard 10 the condors." 

1',e report 1'01."5 on 10 say Ihal "'i,c problem deveIQI"'''' face;5 Ihal sc:>-eml prime wind 

'k\'dopmenllllCntion~ Rre Wilhin the kno"'n Mnd IlO lentilil etl'ltlllr ra nge and 

rn."Vl'IOpclS Want to be able [0 take advamage of fedeml and Stale ta~ credits thai will 

e~pire in 1985 aod 1986 re.5pl..::l;wly( lhcre is a pclwing prQposallo cxttl1d the f,·,ku.) ta:< 

credits)'". 

In I Q$5 theSta, .. " f Califon,ia and th~ eKe d,'tlan::d that collisions " 'ith wind tur bi nes 

wcre II primar), concern and a h.u:;lrd 10 th", oondors. Surprisingly. no mh"r infonnal;on 

was gi>'en in the report about the ma'IY QI""r species at risk or being killed by ",ind 

hlminc CQlIisiQOlS . 

I W~l1t 10 pOin! OUI that if anyone oJ naive <'lIOugh 10 beliey" !hal Ihe indu;(1)' would "'pOn 

a dead con<k>r in 198301" I Q84. 'hey "'U51 "<.l1lsidt-r ao obvious t"et about this emerging 

industry. Billions h3d al",ad} been in\cst ~d ,nd jusl Qn .. dead condor wmlld have slim 

doWn 'his industry in A'"ericll. It was lin ellsy choice f.")f l!J'.'\.-dy 'n,'csl\mo Thm~o;.a"d~ ot' 

"lh~r d~ad bird, were alr'rod} being hiddffi. n few Ill"", did nOt mnu~r. 

$in.c" the cQndors went nti,&::;inll:rnd 'he CEC 1985 rep<l<T ",an,ing orth~ wind lurbine 

dm'gcn 10 condor!; was puIlH'h.:..l. K.'l11 Cuum), has never SIOpp<'<.I inSlnml1s. lI'ind 

,"mine!i. SiIKe J 985 Ihey have nllQwed wind dcyclopment 10 ndd al1"ther 18.0Q0.OOQ 

squart: f= or klh"! rotor swe,'p, IhL")' have approw<.l plans for anOl.h,.,. 35.000.000 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.577

square f«!. and in th.: fl>n'Sttable [ut"re, thl"« are proj .. -c\!. that brillj!: ncarl} another 

100,000.000 "'I"'''' r~~llo K~"m c<'unly. 

When ~ompared 10 1982 ..... hen ~ "ere 2 1-15 fn-e fly ing rondors. Ihi$ ..... ill be 650 

times more rotor s""-.: p with turbines 40-~O tim('S Ihe s;~e of the .... ~rl> hOrbines. 

Ye . the t ol1<k>rs "crt saved hi (1Jpli,'e bri.-roin~ . b,ltlhcir hnbilal was 111m • .,,] inlO a mine 

f,eld by Ihe wind indu ry, Todd)' Ihe rck'll~d condon are dosel)' monitored. and ft h~)' 

",art tu w~"dtr ilUo their fonn~r habitat. Ihey must be lr'dppcd berol'!: the turbines ct 

them. 'noel'!: is TIn d(}O,ht some "rthcm "il l cscapo.· the viHilarn:c oflhe bi"lo,!!ist", "nd Het 

~illed. I low do ),ou SlOp a romlor from riding the wind? 

Par! ''''<J will cover aillhe oll er~po.·.:i"S being kilic'd by tile wind indust!)" the fraudulenl 

rcport ~. nnd how they 8r~ !.letting a""), wilh i1. 

I'hologrdphic CCllsusi'\g oflile I 'l82·198J C.lithmia Condot Populalion 

hUp;J/wWw.hi(\I(.gi .. -aldi •. ersi y.nrgl~ ... <: i~ bird .... C~lif •• mio_wndorlpdr"Jclmbio-. 

ronlkwa"ick,pdf 

T ilE 28 n :AR WI",, /) INDUSTRY COVER-UP I'url 2 

In the firsl pm Of lhis wind industry em'er_up stlll)'.;1 ",as poimed out t,,,,,, California 

Condors were Impped from the ,,'ild in the ",id 198()'~. an emc'l'cnc), re"JlOn~ (() sa,'c 

the quickly di""J!poaring popu)3lion from thousanlLs OflllJ'bine. lhal ha.d been pl ~ in 

I~ t T(hat;h~pi Pa ss regi(}ol, 

Whal is nOI ~nn"n is Ihal dljrin ~ Ihis sa l11~ period f>f limc in Ih<· 19110 ~. lens OflilollS:l nds 

of ot ~~ bird$ als<> p<'Ti~hed m C31ifomia " 'ind fanl1s. Ifone c~ n(ll to bc li~ vc uny of 

this. then kno"ing how Ihe ind"SIl)' reSoPOno.kd in 1989 sJl(}ol ld c(}olI'ince an)body abo"l 

Ihe onHoing 28 ~~r mor1~lit y cover-up by Ihe wind indu"try. 

In ~, e 1'l8fu as the I"rbine ""mbers and size: ~p3"dN. wi1>d poT'lOn"c l began Sl.~ing 

incr( lIsinll nUlDbcrs bird ca""assc;: arouod Ihe lurl)incs.Due hI Ihe sewr;l} l)flhe-~, i3n 

monalily probl~",. Iho " 'ind iml.,;;!'), adoptl'<l a strnk gy for su",i\'al: ",h")(','er happen. 

0118 wind fam'. tnu 1 st~)' il<l lht' wind faml, Tht'y knev. Ihal lI'ilhoul a wimesses or 

bodies il is tough I<J pro,'e anything. So with Iheir on it~ hig,h =urily. glIl,' ordn'S in 

leaS<! eOI1lr;lelS and " lJI'kers fcarfnl [}f loe; illg Iheir jobs. i, helped Ihem 10 ,,,uinlain this 

.. 1onec~lm nl. 

!lUI the..., still we..., some lose ends, In 19&5. lhe J;;Jm( Y ........ lhe LO - 13 missing condor,,; 

~:un~ 10 Ii~lt, a !Jird Inor1~lit y tud~ at 01<." Sao Gorg<Jl1i,) p:tS.< wlnd lurbi.tc:> w"~ !)einS 

~Imducloo b)' " competent ornilhologist nam .. 'd Mich3<.'1 D. McCra ry. I" 19S!6 he came 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.578

f()(\Iaru with bis resulls. From his research h~ C5fimntcd fhat 6.800 birds ,,'l"W bl:ill~ 

killed nu8 1~ by rhe 2947 rurbines in Ihis "ind """sou'w a",~. Ilc also diKm·crcd Ihat 

irt,,;\II~' all ofille fatalifies ,,·cre ",~II~"f birds lind rhar rhe furbines were killing.nocrunlal 

migrant;. 

"Il1CSC were ast",mdillg numb,:r.! and hi. "'pon should halc been an imme-.lialc red nag 

f(")r the California DepMment ofFi.lll iIOd Game {Of G), the· U.S. Fish an,1 Wildlife 

S,"T\'ice (USFWSI ~nd tile: California f,":rgy Commission (CECl. The Mc-C,.",y ~1Ud, " 

should havc prompted imllu-diafc follow.up lUtli~ al Ih,·,h= major wind resourec 

areas in Californi. "bCII)1 the imp.cfs ofrhc pmpelkr slyk wind lurbine. "rhc.e wind 

re:iOurcc area~ Were AIIDnmnt Pa,<s. Tehoo;-h~pi Pa5~ ami the San Gorgooio pass. 

Instc"d rhc "Prosirc I<)<)k pl»o;-c. T\J(. n:sc:areh and study oflhe impacls from wind turbines 

came 10 a srand ~Iill. 

Then in 1988 rill: Ca lifOOlia Em'rgy Commission cp~d in and funded a lUdy 10 

examino;- Ihe e.~tem ofav;:m mQrt..lir: ., the tl,,,," nt~jt>r wind resou",~ a"'as in 

California. E~cn though the wintl prujccl~ lIere wing c(~alu~ted with SI.~,,"'Cy (In pri"ate 

land. the JlI,hlk ,,·~s il«tlming aware ofrh.:- wfnd IUrbino;- impacrs, Con(cm "as building 

bcxaus<: wurd was coming in from tit,· field abo", dcad tUSks alld rlIjlIors with horrific 

if\jur;~5 were showi',g up in wildlife ",h~b ceoners, ·Iltis n,",w ~Iudy WKS ill) an,~nl'l ro 

"docum,'f\t the ",poned" loSSCll at each ... ·ind fam, frorn November 1'184 until April 

1988. A pl.'fiod of3 112 e~rs. It w~s rifled "Aviall 'HOllali!y at large wind energy 

foc.ilities ill California: idrntificatiQr\ ora prublrtn" 1989 t']Q().S9·QUJ.rdf 

Whcn this ..... pon was ",rillen Ihe number 9f"ind turbines in Califi""i. had ahnost 

doubled fmm fhe 19&4 figure ofR500 l<l 15.000. Tile repot1 evCn acknowlcdg~s !h~\ 

"sin<1: 1984 then: has bee'll" yearly inCI"I:3se inlhe JCpOfIed i""idcm~ from Ihe AI1.mont 

p~,;.< area ". Bu( it Wa5 do ... nplayctl with a statement Ihar "il was unknown whether this 

results tr.:.m ao ill<re~sc in colli.ion indtlent. or on inc",ase in reponing." 

The McCrary "Iudy had .1"'3<1y repOtll'Cl ~V~'Mi1 years ""rli~r Iha( upproximardy 2.3 

fal~Ji ics Were occurring UI ea(·h (urbinc per year or appN~;malc y HA per MW al Sail 

Gorgonio p.1>~ "ind turbines. Ke·,'ping thos., mrml><:tS in mind and using Ih,''''' ... 1m,· I"dtios 

f(}r" DII ofCalifom;3. f;;' ~ uS ~ mortal i!), r,gure of 34.(11)(} m0(l.1Iit;e!; FOJ !he 15.0(10 

turbines in 1988 and 19.550 for til<: 8500 turbines in I 984. v.'h~n Ihe olher y~ar ~nd a 

h~lris added 10 Ih~ h>t~1 'IT'd adj"Sicd fur the changing turbine !lnmb<."fS. you woold ~Cl 

approxinmdy 40.000 addilional Farnlitics. 

By using the ,\IcCr'Jry figu",~ . (here 1I"0uid tie an t'!j illlat~d total of 9J,\HQ 3\";an 

fa lalifi,'S forC"al ifon'i. fru,n NOVl~"ber 1984 up throu~ April 1988. 

At thar tilllt Ihe" ind induSlry knew they cOllld nc,·er surviw fhe~ fafality nUIIlt)e1"!i 

b<.'C8U>e!he public woultl not stand for it. So IhL: 1989 California Ern:rllY Commission 

ref'lln, ill an auct11p1 to rell",ire his!r."'Y, ca",~ to sol1lc.slanling c""dusions and orini""s 

about the rfitalitics at rh~ three major" inti rcroun.c areas from 19&4 -J988. Th~y 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.579

dainlc"d Ilml " Ihe purpose of I,", sludy was [0 OOtllmenl ~v a" collisio~ "".I ... kctrocu,ion 

infidcnls al "ind encrg)' raci!ili~'J;." 13,,1 i, rc.Uy "~sn'l u ':Iudy 31 oU. It ,,~s "olhi"!" buI ~ 

li'I Qf[lI ... "anderi"g wounded rnplQI"S Qfd~,,",~nted incidents Iha, had ~>t"3ped the 

""creel' ofGalifon,i, wind r~m's. Th<"$C were [I", only incidents ,1131 could be proven bj· 

Ihe oul~idc "",rid Kl!3,dinl; IIIhal w~s h~ppt"ning nrMnd Ihe I,,,hines. 

This study would marl< the beginning ofa new ~,... ordec~plion for the wind indll5try. the 

Collfomia En~rg)" COU1n'ission and G"wnlln~nt WildJi!~ a£~n<:i" •. Their study 

only .... vtakd n i,widenlS ofav;an fal~lilil"s in'olvin~ wiJld gcncm[ors and associaled 

powcrlines{lvcr 0 3 112 )"c3rlim~ [K'riod. l'<>w~r linc~ were even given a portion Oflhe 

blom~ in Ih<"5<' 72 f"[all li~ . Topping il off. 011 collision i""iden[s occurred 31 only IWO (If 

the wind rrsQurc~ a",3S in Ca lif"",ia, " "Ihi" g • .-as "I ... rt~d fn.un San (;orgonio. 

TIobl. ,. ....... ......... ,.., ""01'.1 ........ oI..,<...,.,..U ..... wi'" wind. ........ , _ ___ tor-o ...... _ ..-..-1.100 Iu- ., u-.. 0.1 ....... """ ,...,....,., ..iR! 

'-""" ....... In 01,,,,,,",,. r.- -.. ,"", to _II 1_ . 

~~ . ~ 

..... ..- -- """" - -

"'"'" Golden .... la " Ut.o ~) '"211.4) 

-~- " atx.a) )/)1"1""1.11 --_ .... , J 14,2) , (~.') 

-~~ , : (t.l) ! (1.8) 

~~ , I Ir.I! 2 1,.11 

--- , I [1.<) , to.11 _ ..... Owl , I [1. 4 ' I 10.t! 

Ihlm:nl.lf'..! -al~ , I 11.<1 • 5 1'.1i \!olden .... "..! _ • • [0.51 • U.'_UH __ .~,n ... • , 11.'1 1 )0.1) 

- " • " • ,. 

TellS orl "'I!~nds ofhi",b Md "plo,,; h~d been k"illtd by Ihc.c n~w wi"d f~nn~ ~nd Ihi~ 

doeuIOem Wft, h~ be., Ihe Oie. Ihe USI'WS. and CA OFG ~ould ""me up "i[h. Lookill£. 

hack " "YO/Ie should be able [o""c Itlllll,", obvious pul"Jl'O"" of III is Slydy was "olIo 

Iiocll nlCIU ",'ian collisioos 31 wind fam". hUI WaS 1{)!,;\)' as lillie HS possible ab.)Ullhi~ 

p,obk·m. 

In 111)' <lIliniO/' Ihis 1989 ,tudy. ,~po" or "hoI ever you "'ani 10 C"dll it. is mother lode nf 

all ~,,~ wind documenls. [\"Cn .... ddtr,;,; Ih fac! IhHI Ihe figurts prudu<'i:d by Ihis 

U<"u nl II".·", bfi· n '1,,01 ... 1 in d""'pl,,'e ",,,die. And reJl<'rt ~ p ... mlOling Ibe .. -inti 

industr}' roronr 20 ~al"l'. 

Th" rcalily ,,·as Ih~l .inc.:. )<;84. cagl~~ and olhel Pfuk'Clcd spt."Cies wen: being 

bu.'lhll.'rt'd like never before in America. Ii W3'i as: ir,he Migrnlo!)" bird ,rea,y "nd ,he 

IHws f'<'rtaining to Ih~ "l.h" of prul""kd sj>«teS hod n~v~' ""en "rincn. If they wa nted . 

Ih~ USfWS 311d DfG ~(luld ~~"c pulled Ihe Irigger lin Ihi~ indusl!)" M}' lime they 

wanted. 11 did nO! mailer a bit Il,., an~ Oflhis was on pri"~I'· prtl[ICrt)'. Wilh lhi."5\: 
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age"cies. if!he", is ",asoll to bdie,-e wildliff violations arc being romtniUed. then: an: tlO 

fenees. 

1" a perfeet world. """. oft),,,,,, th~ agencies would ha,'c dismis'!ed the McC",y study. 

Anytime I),ey wanted!o document what was ",ally happening at !he wind resource areas. 

!hey wuuld ha'·. wcn!!o cach ufthc wind fanns!o look for !hemselvcs. Then they would 

imervicwed !he hundreds of workers and securilY personncilha! wimes'!ed!1le bodies 

piling up. For wori<crs. il would haw been easy 10..,., dead birds lying in Ihe clearings 

arou"d inSlalied wind lurbines _ Workers and securily driving around.m Ihe 'Service roads 

!hal feed inlo e,·cry h,mine (~C images). would ha,'c Sttn plenly Il«ause large birds c~n 

be so.'1:n from severnl hundred yards a""y. Workers would ha"e also b""" w;lnesS!o lhe 

fa.ct that the"" tu rbines wen: kl\OCking dm", all types of birds. Not juS! "'plors. 

The USFWS. and CA DFG should ha\"o Ihen demanded real studies. i:lul Ihey didn·t. 

Instead Ihey did "hat they an: slill doing for this industry. Tho: upper levels oflhe.c 

agcncies helped the wind industry cover up this problem. Thcy did Ihis by laking no 

action by not initialing any proper studies. Ilowe"cr they did do OO1nc!hing. lhey wrole a 

!cller. 

This supposedly bold action laken by Ihc USFWS is cVen m.mioned in Ihe California 

En~~ Commission study. "The conCern of.vian mortality QIllargt' wind farms has 

ococn renc"cd in reccnl )ears.ln 1985 and 1986!ho: U.S. Fish and Wildlif~ Service 

(USFWS) rc'Ceived ... ,·enol ",pons ofrnplor mon.Ii!), or injury from Ihe Allamonl Pass 
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Wind R~w"ll:e A~a. This promph."tl al.1iun by Ihe USFWS in Ihe furm ufa It!!" 10 ail 

wind "'SOIl''''' dc \·c!ul"'''' and oll"l1Itors in (heAhamont I'a .. "ind """"n;c arc. 

inFomlin.!l tm:m Dfthe !t~1 implicaliDns DfcuI<, ingdca!h ~ injlll)' tD e<l~C~ "nd Olher 

r:lpIQrl. In additiun Ihd~ as'li.\tllnoo ""~ rC'Iu r.;IM in inn ti 8tinl( 1m: ocmai lllkc uf 

Ihese prOle<:((d spo:;:ics in tile AIlIImont Pass Rc olln:e ~rea. This aClion Icd 10 Ihe suppt)(1 

.nd "ool""lIlion ofse,'cmi Altamonl 1>;'$1; wind energy comp"ni~s.. Il n,, cH~ this elTnrl 

II,. 'he USfWS did nOI exlend '0 Ihe wind l'nfIun:e de"eloper.; a nd o""ralors in the 

~c ll )i h~S and S.~ n GOr']!on i<l p~ S5 ruour..., dn:a •. " 

As w~ all knOll . thai IcUcrdid oolhing ffl' lhi: " "guint cnmggc. 

ror Ihe wind industry wh~t ~'C McCnuy ~Iud y "."JlIy proved WII$ Ihal "h~1 ppen~ ul 

Altamunt P!l.<~ is nO! unique. EVo,), "llcre bird ~ ~n: tll i.\C"tlwilh Ihe PfUJ1;:1lcr . lyle wind 

lurblncS. Ihey gel I8u~hler'-'<.l . Bul unlike Allamonl "here Mudies rmm 1':I'J8·20(l4 

e&1imaled numalily /IS high as "2 ."277 rJplors and I .~2() birds kille<.l each yeur, lhe 

McCnory studies nol only showe-d higher numbel'S bot also showed a much hill.he.,. 

I"'fCc"I~£.e [If .. nail binJs bein~ ~i ll t:J . (I",."" Blucbird inlaSe) 

I lla"C looked ovcr all Ihe Sllidics p"l(!UC"d from Altulllom nnd nil ha\'e s~riou s f1~ws, If 

Ihe m'~ numocrs ufsmall birds being killed Wl.,.e addt:J 10 Ihc mortal;ty reponed fmm 

,\I!amont pas~ (here would be a( tc:.sl 2·J Ijmc& ,nol"lO t"tal ti~ _ln ,!(her words at 1~>I$1 

25.000 bird ~ pet yl'1lr. One orlhe prim!\l)' reasons for lh~ flull'w monalitie.\ lisures 

coming Ulli o f AIIlImOlll i! a resul. orlne ludi~s being c'md"cte<.l Oil .lO.9() day cycles. 

nics<: studil'l\ are missing mUSI urlhe SIllRllcr birds and balS, To find lhew snlliler 

species. mumlli,y se:lrch(s mUSI be conducled un a daily M.is 11'1 ~ecp up wilh the 

multitude fr:l~cn s, gull<, and ""U1""3Is Ihal a~ ""ting Ihe,n. 

Conducting s.::arch..-s on a oIaily bru;i~ will also ",-'fVC wlO1hor us.::ful function. It WQuid 

k<."Cp ~~n:h~rs ahead uflhc wOO'S, sca"(n~(rs of all. wind indus,ry rsonn l. SccuriW 

alld mainlcn:rncc workern lIould 111<'0 no, b<: ablc pick up the bodies of highly ""Ilsi,jw 

spc..-';cs. Imponant r~rc !lpCties li kc peregrine f"lcons. "hilc·taik,l kiteN. condon;-. ~nd 

whooping Cr3""~, eould Ihen be '.P()MW inm'"3.d of hid !len. 

lfan)'unc lhinks tha t Ihis is not );()ing on " iU,in the ""cun: ooumlarie. "rwind l"aIms. lllen 

con~kkr these facts, Th,· 0111)' peregrine f~lci)n el'cr firund kill~d nnd re]lQnoo al 

AIUlmonl f'3$~ was dll,ing a ~lity OOy being CUl1dUCltd on a ! da)' SClIrch cyde. 

This s..roc 5100,. also rcconlcd lhe hiih..sl monalily cV<'r FQ\" A ll amonl Pass i;M..-':!lUSC 

n: .... 3Il:hcr.l were I!cllin); 10 mol'C oflh" smaller birds 

II is also m )' bclieffrom my rest"Jrch. lilal lhe /l. lcCrary 1986 ~tl1d y from San Gorgnni" 

Pass 5wd) has 11l'\'L'r i;M..",,, given 10 Co"~ress lJylltc CaTifonoia Energy C0II1Inissi"n "hell 

many OI hcr " oohk'SS wind imlu,lry lIIdi" 5 h~, e. 

Y~ . ' he induslry today nuW admit;; \a nl0r0 ra ie~ al 2.9 per MW b\il lhis is&,ill 12 

Ij,n..-s s~ ~l n the 34.34 f'la!i!iL'S pcr MW rcJlOned in I nti by /l.kCrJI)" . Tl)~ I" ... 2.9 

per t>IW lig",~ ;,- ha,"(: been ddibcnllCly cooked IIp by ' he ioo1lSI,),. It loa' been <klru1lJ)' 
647 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.582

.. ,<I,........., "I'J'f"'<-' gr.",.!) -..,;,<-'''''''''10 .......... "..;.,.,"",,10001""" '''' f." ~ ... "" I day sn«~ 'J<b. '""'" 01,.".",... _ ... ir.od <lop bccou.o ,,1'~ uaIooN 

<lop fOr.-.l>Wo ......... " ........ f_ i". li'o<I ... ~fll>c', ... , fllO-'<j' f< ~.II.wan: ~f.1I .(,m. 

r~' , .. '" .... USfWS 'Q .... ,M) ",,,,,,,, .... <,,,,,",,,,y '" ~"'" f<tf"", ~1'1d I ..... W)'_ 

~ .. \~~ ...... . I1 ....... n_ ..... <!)''''~ ... ~'b .. ''~ .... ,'''.· ... '''''''' 

«qI>i,.., ., >a) "" """" ... ~'hio,;.,r """""" .. /I .... ~""" ""'_ I'r1.oo 'I« .. (_ ...... I 

1\0'·0,........,<-' .. u.;'o'<f'>'\. Ohio !< ....... Y"",.. "" .· .. ~"" ... t.'''''I1_ 11,_ Iitd 

'0, lWoroil ~"_rro\l"'"' ....... ;*<1;001>< ,9110' ....... '" .. w.,.., '11>< 0KIt""l 

.. ill_' ..... ," _< ..... "","" I ...... lil< An:. 'I .. N",_"" '1I<r1"'..". ... Y 

Q'oJ,.,_r"'I'""..n. ... ,"" ...... tt..."".' . 

1 ,., "'" ll<i>ltt>o< ~ IM .. UI;'."urllihl. ki,"'-III) .... . . I .","", .liii0'''· ....... IIIr<o<ly ~ "'-.II<M I ""' ~."...,.,..~, .... \.<'t) ,..Jon<IlI"",ll1j!povbkm. 

Mi l, ..... 01'''"''' boo" ~illnIl>l .hi. "' ........ i. ~ ....... uy..-.l ;, .. P"S Iu ~ . ... ~""". 

Thi<;, ... ~ """' .... _ lngliih Srom>Yt'. IOn<! SWI;"w, • i, __ h~ 0'''''''' 

..,... ... ohoo.- .... ""bi"", .. _ " .... tutbi..,..., boo ....... «I. 1'...,.. ....... .... ,;., "I •• , .... 'uml.", •• ~ .. ,,,,,;n 

M) ioO<lll ... ,,'jd, oNs "1'0<' 10 f<w'ho~~ .. ,~ ........ pOo\j'Iof<""""'1) 11>< 

liW>l" ,010: ... , lhon ~ ..... 1101, 1.1»" ~ th< n«'<»O<)' " .... V' "'" I>< r",;liIoo:J. if_;03;""""', .... "'rkl,"'P"'t> ..... "f ....... i..!i"""*l ~iII..,."",1) .t.;..o ' ....... 'i""' ... <>f ....... lhinl~;", ..... '"",m<lt.>nll" , ......... ;.i"lbifO r<'\>IIb,_ 

.. lit .. """"', 5«>«1' ''''' """ ~~i' 'l~ ..... ",001 i_II)''' """" <...., ..... ""'" .... ~) 

""'" Ihcir """,',,", ..,." .. "'" I'~"<. " ~ .. ,"",,,,,~. 

BIll"'" ....... "' ... ,"""tlII> .. """""""",~'"''''VII_." t!<>ooI p"', ,..,.,,,,,,,~ b<. 

~ .......... "'''i<ol \JSI'II'S ..........."., ruJd<Ii ..... oOO<l r ... 0", 1'UIIIi< "' .......... ,,"'" iP<Iu;Ir)", ,,<:diu, 

0. Mor<h 13. 101"". s... ... 00r) "" -S.1ono ...J ,II< VSl'\1'S "lao",; "" .. ~;';'I" '" """f""" '" II<iI' -.. i..:l_ f"'<Iio<1""'tvr«> " '<>OJ .... min ... ". i"'J'O"l> ..-Ioftd. "",",,~;001I""i«"" ~,t.llir ..... ( ..... ,...." .... , I. h .. """· ........ ....... I<lI·w. b<r""o!lM:o<~, ~kkl""lO>Id p<M "","",,"I ... ~ .... ·n '""'..,.....'h~ . ...,"'" -.! .. hIo .... '" o;td """ wllollir. "",0,,,, ~ ilh " .... olo" ............. "''''''' ,"" '<''''''1) lhe """"""Y 1""",1i_ ""., ..... Ip .... pc ,he SIll'" ,~ .... oI<lipo ..... ope,.,;'., 0/',,,,, ...... '. _i"~ "if>Ij m<qp' _y". 

1 .. 1'""bI< .. "h~ ... S.I ........ ~ I; IhoIl, .. d<ll ....... lyoloc."'i ....... hi. 

"'.,," ...,CI1IMj . 11>< !l''''''' .... ''''''''''''"'''''_'''ho' .. ... "., .... _.'., .. , • ." 
648 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.583

nnd th~}' \\ill ddinite ly help the tin ci al institutiQn, and oil cump.lnics b.:hind " "r wind 

,'nerg.." ~~Il n"'n , BUI thc noll' !lui<lel(n~~ al,o ha~c :!"0I11er "'''''h m"", tlllponat!! 

purpose th ~t he did not menlion, TII<!)' "cre me.ntlO cJ\!al e Ihe appe~rmll:c" of so vin~ 

the on!;Qing induSlri,,1 bird and bal C:lnla!!" C'IIu5(...J by II .... "inll indu;U), K~l Snlarnr's 

sialement!llld Ih~ new lIuidc!incs reprl:SCm 111 ~hi l1s more I~~n the ;.:lme sonll am] dam'( 

th"1 has laken pl:l<:. since Inc 1990' •. JuSI Icillhe p"blic wh"lcYt'r th.y .,.."nllO hear. Bnd 

keep on butldlns. 

N01hinl,\ "ill be oolwd lI"ilh lilt "ell" ~u i<klinc s Jx<.,auSI' Ihe)' only h",-. IlOle nlia l and B'" 

, ,,Iunl.ry. The')' \\itI (1,) nlJlhing fl"lr 1M millil"lM or ird~ and 0013 sla"ghl,-n:d each ),,"(1, 

by Ihis i"du,lry. JnH'SIO/"S will be plcaS"d bceau;e il nUw looks lil<c IhingJi .,..ill tw cv~n 

'-lISier for Ihe indusuy. 

On April 12 Ihe N:lliollalAuduboll Soo;:itly ,;,:nl nuI;Ul Advisory 10 Iheir m~mbcr'; 

,·ckbraling.d.e ..... new !;uid"!inc •. Guidelines thatlhc NatiOMI Audubon Society. ih" 

Nalure Con.., .... ·8!K:y, Oefe"d~", o f Wildlife, Massachu..,ll" Audub\.ln. and Um 

Coos.;,n·alioo ln ~m31;Onal hdp.!d hJ creale. That is "hy J am pulli ng llUI mY"Vln 

Adviou!)'. J:lm athising ~"e!) ooe to t'l11~mber uf thos~ involved hI.-.:au$e the.., n~" 

guidelines are a disgral't' in tVtl)' Sl..1ls(: of lllt' ml'aninl!.. 

It is haN tn imagine nlly " Ildllf" organl1.nlion ~i&l1 il1!! o lr"'lth,s Ilf\@,olngindl1slriul 

Jall~Jllt'r of bir ~. l"his is O:S[ll."Cially Irlle for Iht N~tionaJ i\uJlIllon 5""'l:Iy. 

One oflhe most dIsturbIng pAM~ Mtlv .. :10 ca lled Il.Cl'ulAtitms concerns MCMgtt tak, 

I ... rlllj b~ ~ i.~ I; ~ 10 kill ClIl:ks. ILl 50 CFI( 21.26 :llId O CI'R 22,:!7 il ulio", for 

comp,m50I;I1" as fl'IM ofpt'l1nil issuance. Who g,ell;))'" fl'I)" mil for Ihe dcad eagle.<? The 

Conservation groups lisled 3bo,..c? No one un,t no ~rn"I' . h""ld e,·u profit r .. ,m d n d 

u gW). 

n .... USI'WS claims "The",- vol"nlnry Guiddine. provide" rucl"red. ""i~ !1Iiti c IIn",,,s. 

for ~ddre .. in!; "'illllife l'UllSC,,'ation concerns at ~I I Slll!;cs of land-bas(,I",ind cl1crllY 

d<, .. dopm''11I". This is rUr frum Ihe Inuit. J read o 'w Ihe ~,,;o.klines and mQSI orth<-

infQl'lllalion I'ivt'o for juslj '";!1g !he guidelines ~ ix.so.-d '-'" Ihe pile ..,rbog ~ fC$<;~",h 

c"'alcd by the wind iml,,'lry. Thtso: G"ide lines S!iIIICli\'c til<' " ind industry wilh no 

tmn~Jla",no y and 110 ",sulutions, But worsl (j f~1I wiod illdl!l;!ry a>:!;;m, at.: slill \'(jlull!ury 

ju,1 I ike thl.-y M" e l,,"a ~s bttn, Th( indu;;I!)' ~t ;1I docs not haH- 10 le ll tile mull and Ihere 

are nO cOI=<Jucncc<. 

\Vilh relll "ind i"duS!!)' Guideli nes <II" I(~ gu mio s """ '\(,uld nUl be heariog Ihe "Qr1j 

pOlenlial. We would he arin ~ dl~ "OnJ man<i.alO'y. With real guidclill<"'l lh" ho~ s 

mort.lily slud;,,,, currently slased by Ih" "ind indusI!)' would nOI he toleraled. InSl~.,.d 

tl><-y wooid dem3lkl lhat pr<lPO:f monulil)" studies he conducted" ilh I\d<'quate sized ""arch 

areas " ith ~an .. hes done on 24 hoor cyeles. This way far mOM!' of I!\(: bird an() bot 

morllllili"", cuuld b.: I"".k..l. 
649 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.584

RC':l! ~uidc!ines "'ou!d addre~s the wind indl.l5try ~ e!ear hislOC) of profil bias a5S0Ci31ctl 

wilh lIICir boS"'s smdics, The induslry ~ould Ihcnl>c st"l'f"'d fmm conlrolliog their O",n 

m()(\"lity studies. Real guidelines wOI,ld create "'lTlsp.1rency in.~lcad ofc<)"u~I",( t" itll 

actions like nondisdosunJ dau5e~ wriucn in wind indl.l5try e()J\tl'ilctS, Reill guidelines 

would not put up wilh the hiding of carcasses. 

Bulm;)SI of 011. real Guidelines "ould ~ddre.'!Il lhc cun1Ulati, ~ ;mpl,et! In)m the 

in("rO"Jsing yearly ~Iau~ht~'r caused by this indus,ry. Th,' whooping crane i. U p<-'rfcci 

c~"mpl~. TI'ei, sm~1I fl'll~ilc popul~tion h"5 St<>f'PCd i"creasing alier dc'\:adl'S of gro",h. 

Since 1007 morcofthcm llf~ now dying each ycar~lont their h,min" infcslc .. 1 migrntiOn 

mute In Tcxa·s, 

It ",ould also secm Ihal 3111hi. informal ion would t>c "cl)' imJ>Ol1..,m 10 lit\: USFWS so 

they ,muld hall" a much better undcrsL1nding ofthe tme in'pa<:ls cau;;cd by Ihis industry. 

lhankliolly 1101 oil Audubon mcmlJcrs fed the S31ne woy aboutlhc w;rId indu~lry. Se"er-JI 

local Chaplers ofThe Aoout./", Society arQw,d Altamont Pass m,d K .. nedy Ranch;" 

Td~s. ""~ght Icpl <l<:tio" If' top Ihe " 'ind indllslry sla"~t~r Ii, pl\)l~c1eJ 'J".'\:id. 

InSlud of hold into( hands wilh greedy ;n"(':Itors. Ih~ IWO groups 'W~ i'lI'olved in 

Ijl;gali"", liI"t WtI!I ,clUlIlly mcanl 10 hdp the many bird .~;es in tmuble. Thc loeal 

dlaplcroflhe Audubon Soclely in Kentd)' Cmmw SuN to Iry tu stup tht Kenedy Rand! 

wind p",j""t ~ and the Bay i\re~ Audubon Chapton; trying 10 lowdnwn Ihe len, oj' 

Il\{)us:lI1ds of birt15 \It:ing killcol ea,:h ),.:ar 31 A Ilamont. 

110lh fail~-d in their allemplS. MortolilY h". not!!"""d"w1I at Allamonl arid ma.<sive "iml 

I",bines "ere in'lalied in One "fthc most critital bini habilats in Nm'lh America. 

It is unfommale I wa~ nUl in cunt:WI with Ihe Audubon Ch.:opl'T in Kenedy Count)'. HIId 

they knolln what! have disci",",d aboulthc wind indnstry'5 bogus monaJity studies 3/10.1 

what I 3m nooutto distus,. tht) mn)' hJ"c b<:cn ahle 10 SlOp Ihem. 

Whal lOakc& \h., localion oflhe Kenedy Ranch wind farm 50 critical i& the numocrs and 

Ji'{'rsity of birds found in the arca. This is a reg;on wilh lar j;n:.lc"1"densitics ofbi,ds ood 

bird spec ies thal1thc Alll>lOont pas • .-ell;on. Thi£ region ;$1111 ~~tremcl~ Intponnnt S"lP 

OVCr fo, million ~ ofmignlling bird. in the ~ent r-J I unitcd stal<'S inch>!ling th~ whooping 

<.'n"'f. More Ih~n 300 difTcl"t'nl spcCic"S ot"birds ha\'c beeo rceordro on lb,· " c),cdy n"'c~ 

and matt)' mon: thai u.c Ille sl\O,~ line hab;13t~ and Gulfwind curren\.',. 

For the bird~ you could nm pick a "'or:se )0.:31ioo \0 pUt Ihe propeller ~Iy lc wind lurbine, 

but for Ihe invC!lIOI1l. iI'S JUSt anolher pm of 13~pa~ cr gold. 

S3dly then: an: now2S6 huge 2,4 MW wind lurbines loculed alol1£, tbe coo'iol habitat of 

rile (julfc"Ol1S1 and Ihe wind ind"st'Y geld dil!llcl"S an: plan~jng man} more for Ihis n:g.ioo. 

Each oft~ lurbincs "'lu..I ~ 45_50 Qf lhc I!lid 1980 '5 Altam<J1I1 lurbines. 
650 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.585

Th ~ Ktnt dy n nch ~ II .s ic U llml,l ... of j us I how oul of eonlrol Ih t " 'ind indo. ' ry 

e~ lIy is. Ie "Iw rt'I'rt!'j.'nIS why Ih b ~oun' ry $0 de!<fli' noMy n.~d_ . .... I .. -i"d l"du .." 

Mion . A compari"", of fa~\s wilh Allamont l'a .. and Ihis neW~r wind resoun:e 

"rea in T ~~as ,<hollid h~lp 10 wak ... up 0 r~ w P«Ipl ... oboulille 'nDdnes~ penaining In 

"Volun's..,' Guidt ine~". 

Aller more Ihan 20 ~\:ars ur Op<: .. ~'ion is has Ii n~II) l>ecn disclosed in mo ~lity n:po"s 

Ih.1 Ihe yearly dealh I!)II 31 AIL.mOnt I'ass is <"S lim~te-d II' be around 10,000 birtl; 

a"""'llIy. This wind fann is also and ~on;id ... red 10 h3~e lbe ltiSh~t " 'ind turbine bird 

monality in America. A. hiW"< lh~ ,", estimales are I beli .... 'e Ih~"", an: at least 2.3 ti", ,,-, 

more fataliti es pcr year. 

j(CI:~nt sludit':S from AlLamont pro,cd tlt.llltc: neW larger turbines beinS ir\S1.lled tit.""" 

an: killing more Oflh ... indig",,,oll~ spt."ties per MW in the habilalS when: th ey an: 

in~t;l lcd . TllfSC Sludles conducted in the semi n gF.\ .. land~ nflhe Buena Visln 

!.<"tli!)n !)f Altam()111 showed Ih31 11 hiru spec ies and 2 bat spc'Cie.; "ere being killed 1It a 

hig)\er ral~ per MW. nl'S illCl uded mort' dead eagles. mon: dead prJirie falcon!.. and 

mor,' dead homed larks.1ltis ... , m" -cr hccn disclosed h) the industry"lnSI<-ad this was 

h'tld~n in a mounlaln ofmenn'ngltss dalll u!\ll the new larger lUrhinfS "'~I\: c<'l~bn>lc,1 as 

bcing 'kIfer for "all birus". 

l1lcrc Is S<'IIllClhln!! c!se thnl has nC~cr been discl,»ed ubom Aitalllont Ihnl clearly jXlims 

to how inepI nl1l ~ Altamont SlUdil"S hal'l: l><."tCn owrlhe t'~I"$. TlllIl bt'ing th .. rcpcmcd 

btli monalit). each y .... Jr thousand o f birds have heen rt'poncd killed hul Oflly about J5 

ha~<. Thf~ numhcrs arc impossible and are probab ~ offhy mur. Iha" 100 I~ncs. This 

also iUn.mules my point aboulthc fatalities being nlLleh higher.1 Altamonl. lfthc) arc 

mis~ing so many bal •. they h.ve 10 be mis~ing Ih,c majorilY of small birds, 

But ~"en wilh all II", ""ver-cl)' ilaw.,.j mortalilY Slndics. we all kn" ... Ihe AII.lllom pa.<s 

"ind rew"rce area kills a 1<11 ofbirds and hlOl ~. 11 has been widely publici,ed. What 

prnple d!) n()1 know is th31 til ... " .. n .. dy ranch is probably killing far mQrc, Ilere i, "hy. 

'n .... co"'1ll1 rcgirnl of"ex~s has more local and migrnlory hinl! Ihan Ihe Alt:uuool I'ass 

r'l:gioo. Allrntl 20 yenr ugo Biol"gists for the USGS coodu;:ted fi eld sUI"\'cy' wit hin the 

Coa~lal Sand Plains in Brook,;. Jim Wells. ncd}'. and Kld>erg counties in SOUl~m 

Tc~~. TIll·"" S""'C} S were doM during 1991·1!l'l1 ~Ild 19'12-1993, III thcs<: Co~slal 

grasslaml ,ur\'~)~ th~ }' fO<Jnd high densiticsofabrnlt 30-50 hird~ I"'rlO hectare. or 750· 

t25U hirds fl<:r sq!~1rC n,ile. Tllis i& t least S tillles the birds th,U to be found 'lithe 

foothills around AILan"",1 pa~s. J know bc<c3u~ I Spertl yt"'~rs ill ihe field around Ihe 

Altamont pass <Cllion_ 

MrlSl ~aders- "ill also be surprised to kIlO" tlwt ~sc enunnllus turbines in this 

imponant biru nc1Uary ha"~ a combined rotor s"'~..:p of~r'01lnd 12 million sq uare fccl. 

$0 n,,, 'mly arc Ihcn: far mlH'l' birds living "rl,lllnd Ihe KenL"<ly j(a"~h, Ihis wind fann is 

also I~TEcr tlLan the Allamonl ... SS wi nd fann. Allth,' smaller IlIrbines at Altamont do 
651 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.586

'101 add up ttl Ilw si~c ()flhe't hugt' lurbilll'S_ TI'fi, bhuk'S also spin fllSler Ihall "'lISl of 

Ihe" ind IUm,"eS ~(AllnmOnl f'~ ~~_ "illl .ir s~ds Up 10 1~8 mph. 

·rlle", is 31"" :",mher fae. "OOUI ,be .urbines on 'he Kenedy 1L.llch tha'lII:u<e Ihem "'''''' 

dn"gcroll~. They ~pin lilr n>,)r~ hn"", ~ach year ~ca" .... '11l,·y Clln ~MI \<'minll in ~I'l"'Cr 

winds. III <Ilhtr wurd, lb.;y ha,·c lu..-crcUI in ~P<'\·d s. 

Th~ Kenedy Ranch wind f&r11l is "',lhoU! qlleSLion .• far "'0'" d3"~e,,,us willd tam, and 

Ihe", arc far more bi .... , at risk in lbc habital. 

Nllw le,·s a)l3lyz< th. wind inau,uy nlOrtnlilY .",....y. ,ha, have NIH" 0111 fro", tM 

K.""dy ,,"ch. The IHllnaiity ",udies frmll,he lumi"es on Ke"edy ","el, arc r.ptlf1i,,~ 

only '!>.'ut 2()()() d.alh~ pcr yoa r or aoo'll 5 limC"ll r.wer lhan Altam()nt railS. Thc~ tiY.IIT<:~ 

a", aoout as honcsI as Ille ntW ~u;dclin.s. 

lIul non. of Ihi ~ m.". ~ be.~u~ for Ih. wind indu$lry. lollillg Ih !rulh is 

"V.,tunl~ ry". 

MQI"e SO 'han a. 311Y mhfr wind fam, in Am.rica. so",.one II~' ,0 &<,1 On ,hi, nlI1C~ and 

conduct ptIIpCrmonality smudi"". The •• should be don~ 0"" daily basis wi,h do~< and 

hn'·. ,earch a",a, of~t Ica~ WO ",l'ICI"5 ar()u~d e~~h of In eO(' huge IUrhi IO~. Withou, 

4Uesliol1. prtlpcr ~"I(l;';~ '",uld pullh~ <)r;l;in~1 K~I1,-dy ranch monality "'pons in Iht 

dUII'l"'ler. lind iflb..·y we", done. 1!><- world would likely discov~r Ihal this wind farm i. 

killil1~ far ",on: birds Ihan an)",herc.!s.:. '" North Am,·rica. 

The lruest -"bb ll liH~ Guid.liuH" a", ",ally n01hing to be proud uf.lld thore i .. llo 

CllllSC 10 eelehn:uc. II. far U~ I am c\'l,,~emed Ihis enlire rolillb.-;rntinn .. ·iln Ihe hc~dsof 

Ibe USf WS. N.,ioMI Audubon Society. Nature Conscrvancy, Dcfl"lldcrs "fWildlife, 

Mass"chllscn. Auduboll. and Bal Conse,...·ation Im<m .. ill"ol WaS n""'ins '"0'" ,h." an 

obuse of power "lid a (Olal ~(rny.11!! 'heir reSp""liw memhcr~. 

I", pdl., ft ft ... ~" bo ... ,io • . Oft!, 1,I"l1'0 ... ' l t.bb.-•• _ ,~",:, Oft ." ... k 1"& K1-s.<(I%ft 1.d 

~"I' ~"'· ft" . '" ,.~" . '" i.d'.'f"#) Id"""W It\; _ lIo.~ t>d' hI' p: ''''' " ." •• "" r< ~, ~ •• !o .. lu.". "., b 1",.1. ~~ lr~ n~oI.~.~ , ... 

b" ,0:1"" ft" .0 pft r< ...... ~o. r ... " rce/bl ... " I. ~b!rd l •• I>I .... _ ''''''I>I,I .... b 'm 

Jim Wiept,d Wildlife Biulogisr 
652 

Statement of Jody Purrington 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.587

t, lody P .. " lnston, Dululh, MN, relpecllullV urge ConKre~ to e~lend Ihe wind energ~ production !~ ~ 

cred:! (PTC) a. quickly a. fIO"lble. 

I h~1Ii! .een ~r wind rms near my hometown of Windom. MN rev<Uli:e my community. Here In 

Dulu th, M"I. I am ab le 10 pur(h~!e wind energ~ from our utility "mp nv, Minnesota Power. Inu in~ 

th ~ amount of power that our country gel< lrom clean. homegrown, affordab le resource. is an ""celienl 

th ing lor u. to do - and th •• lax credil provides ~n IncenllV<' for th"- wind industry 10 conlinue 10 do jusl 

Ihat. 

I "rBe Ihe committee to lake up an uten,ion of lhe wind energy production la_ ,,~il riSh! away, 

SlncerelV. 

lady Purrington 
653 

Statement of John E. Bollwinkel 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.588

JoII" E. HoI/winkel 

6282 N. Old Rimell Roml 

Purk City, Uttlh 84098 

435-649-38 74 

I, John E. Bollwinkl"l, rC~pcclrully urge CongrCl;S 10 l'xlcnlllhc wind energy 

prodllCtion ta.-..: credit (PTe) as lJuick!y as pos,ible. 

Wind cnergy is onl" of the pans oflh!." economy th31 is growing and providingjuhs. 

Wind cncrg~' is clean and I"\:duces our depo:ndcncc on roreign oil. 

Th;l1\); you. 
654 

Statement of John Earl 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.589

To The House Ways and Means Committee: 

The PTe drives billions of dollars in private investment in homegrown 

American wind power each year. I have seen the wind farm near my house 

revita/(ze my community - bringing in construction jobs at first. and 

maintenance jobs in the long term, and generating revenue for our 

community schools and hospitals over the lifetime of the project. 

Increasing the amount of power that our country gets from clean, 

pomegrown, affordable resources is an excel/entthing for us to do - and 

this tax credit provides an incentive for the wind induslry 10 continue to do 

just that.-

I urge the commiNee to take up an extension of the wind energy production 

tax credit right away. 

John Earl 

#2709 20th Avenue 

Tuscaloosa, AL 35401 
655 

Statement of John Guenst 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.590

April 24, 2012 

Dr. Joh~ M. G\le~SI. 

2S17 Sh~dow Cove 

F"' n~lIn , TN 370M 

615_]71·9411 

JO~ n......lluen II J! e II ... ,)! h. net 

ntle 01 Hearing: Hearing on Certal~ E>"p[,ing T~. PrOllisions 

Dear honorable members of the Wa.,. nd Mean. Comm;!! .... , 

I, Dr. John Guem(. on iMernls1 trom Fronklo"n rN, resP«ftul!~ urge. (ongren /0 ex/end the wind energy 

production to~ c,edit (pre) o. quickl~ o. possible. 

The Pred.ive. billion. of dolla .. ln priv.te Inlle5tment in hon,egrown Am ... ican wind power each yea •. 

have seen tll~ wind /a.m near my IIou.e. ,e~itall,e my communily - bringtnsln conSlfuctlon job, at lI"t. 

a nd mainl .. nancejobs in IIIe long te,m. and generaUng .e""nlle lor our community Khools and 

hospitals ove ' Ihe iiie time ollhe projer\. Incru,ins the amount of power Ihal our country get! f.om 

clean, homeg.own, affordable rESOurCeS I, an excellent IhinS for us 10 do - and this la~ c.edl! proVides 

an incentive 10'lhe wind ind""..., 1<> cominue 10 do jU<1 lhaL 

-I u.ge Ihe commil1ee 10 la~e up an e:<len,)on of the wind en~f8Y p.oductlon lax crediulgnt away, 

John M. GuenSl, MO 

Retired USAF, Maj 
656 

Statement of John Irwin 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.591

April 25, 2012 

Hearin, "n Certain Expiring lax Pravill"n, 

I, Ja~" T. IfWir>, a produClic») worker f,am G,eelev, CO ,el~ctfll.llv urge Cong ren to f'>;tend the wind 

en t '£V p,oductloo tax c,edit (PTC) as quickly as pOlsible. 

The PTC dr/ve5 billi"ns oj dollo" in pri"t1Ie Investment. In home'l,own Ame,icon wln'd power eoch yeor_ 

iI(1ve .seen the wind turbine m(1nu{OClu,lng/<>cillly ne(1r my Mu,e ,ellitplile my CO/1.lmvnjly- b"nging in 

conn,ucrlon l(1b5(1tfif5~ 'hen monufr1C.IiI"ngjob5 ond moin,enonajobl in ,lie long term, ond 

g~nc,oting revenue for our community sellools ond h05pi,ol. over tile lifrrime ofrlle p,oj""r. Inuf'o,fng 

tile omount of power rhol ourcounrrygers/rom deon, IIomegrown, o/fordable resource. is a" ellCellent 

thing for uS to da - ond this lax "cdil provides on I"centive /or rile wind Industr¥!() conrln"e ra dojusl 

Iilot. 

11 15 my undersronding Illar Ir lokes onywh .. r .. /rom 18 10 36 monrl>$IO pion ° wind jorm. Plonsjo, mony 

/orms haOle uireadv been PUI an hOld. The e>rlension of Ille PTC connOI be pUI o/fony longer. 

-I urge the committee 10 loke up On ~leMKm of the wind energy ",adUe/klll loxc,edit rlgllt "woy. 

Sincerely 

Jolin T. Irwin 

/6J6} 334·0183 
657 

Statement of John Schaumburg 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.592

To: The Honorable Memb!rl of U'le Ways & Means Committee 

From' John Sduumbur&, MBA, NHA !~elj'ed) 

PO Box 63137~ 

lima] CltV, HI 95763 

808 565·9690 

schaumlny@&mill.com 

f: Certain Expiring Tax Prcwlsions, Production Tax Credit for Solar 8< Wind Ener8Y 

Wind eneriiV i, louled.s the golde n anoWer 10 creating eledrklty. Aher 20 plu, Vea" il has received 

billion, fn Federal sub,idy 31l xp yef~ expen, .. wilhoul much 10 .how. The electric compa"ie. bra, 

about havins 10% or more of their electricity sene rated bv ren"wable energy. What thev don'l sav is 

Ihat thi, amount I, what theV pay renewable ene rgy ploduce .. in Iheir total ~pe"diture, to gene .. le 

power. They nevef te ll you how mucll fo"il fuel they Ilave ",ved. Fo r wind and solar il i. virtuallv nil, 

lleing intermlltent and unreliable, wind and lolarene rgv C05t "'tepayersand nXpavers mOte than the 

bene filS derived ftom that upendilu'e. 

PIUSe don't conslder tendJng this benetit lor thesedevelopmenn (and develope,,).t our ~pel)Se. 

Future e~p.n5ion with these renewables will inve uS with les. and less for real,olutlons. 

Th."~ vou for not extending thisexpens.ive amI ineffective proYlsion In ou' la' law, 
658 

Statement of John Wilson 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.593

John Wil.<On. !'U!'ln~r 

Micll",,! SC'SI & Friedrich 1.1.1' 

Sliil~ 700 Oll~ South 'ille~ney!il. 

i\bdi~n. WI 5J7QI 

(bOM)2S3-44J3 

jdwilsoMI m ~~L. ,,", 

v/riucn Co",m~n~<; ti.)f Suhmission inthc llou~e WnYli and Ml"\lns Comminc~ Hcnrin!?, on 

Ce!'lai" P.:tpiring Ta~ l'rQI'i,ions 

I hal'c ile<.:n an energy auomey for ov~r 25 years ~nd holw wnrl:ed ~xtcnsil'ely in the renewabk 

se<:lorovcr the la~t 10 years. I urn writil'g I" cncooragc th~ COnlminec 10 extend Ihe wind 

encr~' prodU<:ljon tax e,.roil {PTe) prior 10 )"e~r'> end. The imf)Cnding expiration of the prc nI 

y<."IlT end j~ 31=dy having a pmfounJ crfect 011 jorn; in the wind se-ctor. lfnOl extended until 

year's end O><1st e~'momie aClivit)' intne wind seclor in the SC<:Qnd half of2012 and all of2013 

will grind to R hal!. Given our current c\:ollomlc climate we call ill anhroto losc lhe jobs aml 

economic slimulus a....xiatcd with tbis I"I:nc,,~bk energy S<.""Clor. 

l1lcre al\' gmwing <:ails to al'oid additional 5ub5idics for NneI\ablt cncrgy. I gre~ with \ho>c 

calls. Iflhe reneVlahlc energy sector is \0 m~1Ure and compete linanciall)' " Ith other fonns of 

encrgy and Ill'oid itK" boom bust cycle associated II illl the rise and fall ofthc !'TCs it mUSI tlgure 

Qui a "'''''' SUSlainablc policy apprl)a~ll. To that e,llI ~on!!J" ~~ should c'mllinc and ~n""t policics 

"hich wil l oycr the lonll haul Jllow ",newahle ~Iler!,w to compcte-fill3ncially - witll otbcr 

f"m'~ \If c""1"¥J' i()<:ludin!!. <I<ll alld naturnl gru;. Soc!! polices "hQuld illdud~ a dose 'all)inatiu" 

and elimililltion of subsidies for other IYpes of en~rl!Y indudinJ; coal. n3Lurnl gas and nuclear. 

Th~ envirullmenlal "'-\lcfi\S of rell~w"blc cII~r!,;y are 9i:>violls bUI /ICed IIOt come 3t all expen"" 

"here such "'-netits are ulll"<:onomi, cQmparcd In co",·en!ional energy . A policy leveling the 

pl3~ ing field will ultimalely "liow rene"able ellcrgy to COIIII""C filJ'lncially. n,., new policy 

initiative ~hould also include a significant increase in R&D spending for all fonns of renewable 

cncrg) . Increased R&O dQllal"$ will ultimuLdy d';,·c Welln!),,)!;y costs low<.. "gain imprl)ving 

renew:lhle cncrgy'5 .bility to compete fInancially. 

The problem of course is lllat il will lake 50mc til11e to examine. ,dOpl and implement a more 

sustainable I"Cncwable cncrgy ro!i~y in ll1is cOlllllry. TQ simply adopt Ihc nCW policies \\"~ilc 

allowing Ihe expirnliOIl Qfth~ I'TC will deV"l'Lale the w;lId ;lId"~I'Y (~l1d mher Nnewabl~ 

te~llI1olo~ics) and 1118Y $ignilicJlltly pllSh oITtlle lillIe when [l:l1c"able CIlCr£)' ~al1 compete 

ijn31lCi5l1y. "1"(1 th~t end I would enC{lu"'!,;e Ihe CO!11l11iIlCC t(l pass a four t(l fi,c year c:<te,,~;on of 

Illc f-'TC "ith a "t'Yc c8rmcssa~c IIHl1;1 "ill sunscl ~t lht clldorlhat time. Mc~n while if 

congress can adopt rhc new Inorc sustain.,bl" polic~'S o\'er lhe ncxtlwclw IJlQnths that \\"ill allow 

tl,c induslrY to properly prepare lut the sunsct. Thal1~ you lur ),our consideration 01" illY 

Ci'l11l11cnts. 
659 

Statement of Josh Green 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.594

Josh G.een 

BiOlogy G",duate S1Ildenl 

GraM Valley Stale U""",rs'ty 

9890 Hannah Rei 

I(j"9sley. loll 4~g 

(231 }499-3723 

jmg",en2@aot.com 

I. losh G.een. Bi~10&1 G.o>duate Studenl. Gr,nd Valley Sllle Un .... erliIV. Mlchl",n. respeclfull~ 

u'll" you t~ ">Iend Ihe Wind EnerBY productiOn lax credit. 

AllhoUKh we hil"e made ",me sreat itdnl'ce, In wind enerQY production in Ihe recenl ye .... I 

,tiil belIeve that we have 11 lonll ways 10 1<1. Ti'e' .. " stilI a need 10 adva~ll'<hnolon 10 ma e wInd 

.. "eflr! mo • ., atfordable 10' Ihe senefill publiC. SO 1/1.1 ,no • ., IMall buslnl'SS have Ihe ilbililyto make 11 

profit from swltchlnllOiln ,llerMiltl"e lorm 01 enerllY production. AddltioMliv. these advanceme ntS" 

wuld milke wmd .. "erBY . mO, .. feasible alte'fI.tlve fo, Ihe Hefler.1 publk. roo Ihal .Imo.t .. vervon .. 

would have KceSS IO p.odudng Iheifown tne'IV. which Is Ihe biggeslslEp In shlfling Our d .. pende.nce 

. wav from 011 Imports. Tod.y. mo • ., Ih." evef. Il ls Imperative that we begin to reduce our alliance <In oil 

In orde, 10 be uer our economy and our e nvlronmenl. By movin8 10 allern alive ene'8ies. such nwind 

~ner8Y. we <an be prepa red fo' Ihe lnev it ~ble deplelion of OIl' 011 'e,e",e5. which <ould be delrimental 

10 oUfe<o~omy. Wind enefev will illso creale m~"~ job,lhill will btJIelil Our economy. fuf ti' fI1<lre, we 

could prot"'l our prl'<ioUI natufal ale •• lib Ihe .relleN.llonal Wlldlofe Refuse from drilling that II 

uMeteSSal)'. because we hlve Ihe t«hnolog'/ to .\IOld il. Movinllow.rds wind ene'lV ii ll50 imPOrtanl 

in reducing our (arbon dlo.ide em;"'ons. '0 that we can d, .. II<3l1y reduce our footprint on clrmate 

chan!e Jnd leduce the POlenllai eHeets incre~sed tempellOlure. pfe(ip't,,'on. aM globalsu le~1 

Ihat have been predieled by many climale model •. 

A~ you can .ee. wind energy will have BrUI benelilSIO our econof'lY a"d enVironment. but 

thele ilre 51i11 . d"ilncemenl5 Ih3t need 10 be milde before It has iln ImPilcl lind I aslt Ihall'OU conl,nue to 

' ''PPOf! it a. we conlinue 10 ~e Ih ... e .dvancement>. Thi.ln credil help. d,ive Ihe wind Indu.try 

toward. milklnllhe"" nece,sary advancemenl5 to ~ur e our fUlure . nank you for '/Our time. 
660 

Statement of Judith Brown 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.595

From: Judith R. Brown 

5251 Hill Road 

HamiltOll, NY 13348 

jrbrow44@g~ 

3,5-824-2410 

Tille of Hearing: Hearing on Certain E~piring Tax Provisions 

To: '!!EJ.andmeaOs,suhOOlssigns@mail.housl!.AllY 

For 20 years, taxpayers have propped up the wind energy industry, Despite many lens 

of billions of dollars ($14 biliiOll last year) grvon 10 them via Ihe production tax credit. Ihe 

more recent investment t<lX credit, ami olher tax and regulatory provisions, as well <IS 

loan guarantees <lnd Oulright grants, the imluslry still comes begging, 

And even after 20 years of such largesse, the industry cannot show any meaningful 

benefrt concerning any energy, pollution, or carbon problem In lact, tney cannot 

produce electridty at nameplate capacJty wilh any existing turbine: some will say that 

their use 01 energy from the grid, as well as the adjustments to the generators made 

necessary by sporadic contributions to the grid, use energy and create further carbon 

emissions that <Ire nol accounted for 

Further, rur<l l communities, such as ours, Madison NY, havl:!- been left divided, 

landscapes degraded, bird and bat popUlations threatened, and aheady dwimlling 

natural habitats destroyed. Once they have a foolhold in a lown, they are somewhat 

ruthless in pursuing build-outs and addilional projects which only make the Ihreats 

worse. The conlribution of wind energy to Ihe overall goal of green, sustainable energy 

in the US is negligible. 

Finally, instead of cutting programs Ihal are necess<lry for some people to survive and 

make progress toward becoming self-sufficient, cut these Ilinds 01 SUbsidies that are 

completely unhelpful and in and 01 themselves, wastelul, 

I urge you 10 END the Production Tax Credit, the Inveslmenl Tax Credit, ami any other 

federal sUPPQrt of industrial wind energy. 

Sincerely , 

jUdith R. Brown 
661 

Statement of Judy Watson 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.596

END PRODUCTION TAX CREDIT, INVESTMENT TAX CREDIT lind ANY FURTIIER 

Supr ORT oflNDUSTRJAL WIND ENERGY!!!! 

TIlI.'Sc lm.Justrial Ern,orgy Companies Coin,' to 10"11. stri p mine ollr IIIO"1118in.: kill our 

protttted EAGLES AND RAPTORS. In tig~le neighbors M~ainst neighbor. rriend agaiW;1 rriend. 

mltllitmily again~t r3mily by dal1~ling miti!=,lllion money in our r~C(s. Thes.) turbines a~ ugly. 

rt,in o.'r run,1 ~'Oun ry vicw. reduce rropcrty va lues. "'al..c homes unsellablc. nillhHy di.lurl;>a,w;c 

from constanl droning nuise. ~Icepkss nights. shadow fliek~r inside lIlIr hom('s. red lights glaring 

in Iht' nig"t skic'S ~nd Ix>uncing otY tm: "alls insid~ our rcsi cnt~. kills Ihol,lSi!nds or birds and 

(01);. and h~l11pcrs FIRf;.ligl\ling aircraft rront putting Out wildfires. What do we );Ct oul of this. 

HIGIIliR Et..r:C'·~!C I)lt LS Ix'sides otJr TAX DOI, LARS I'A YING 33% Su\!sidiC$ up front 1" 

get Ihc5I' EucrgyCOlllp;lOy'$ o lrlilc ground? 

Itow many En<:rg)' CQ"'p,mies have deda",d I)ANKRUPTCY? 17 thai I've counled. 

tOUlling over $4 billion dolla~ Whe", docs this muncy disappear 10, bo:sidcs the CEO's stull,n!! 

ma,~iw bonu~ in their pockets ),.,1"", announcing we'", "OOINO UN DER"? The American 

reop!e"", bein!: W !>adly Tared ;t'~ beyond corrupt. 

The I"omi"" ofjubs is "joke. May,,", 55 lu 89 dal S. theref"", 001 having 10 pay b.-nelils. 

Th~n hi", 1I ~w c~w evcl)' 60 10 90 dllys fur ,he SlIme amoum of time. so lbe li>1 cfn~me5 loo~~ 

longer fur II1\: tally of",housands orjobs crealcd" by GREEN ENERGY. BUT I1U 011C Il'lls thes.:: 

cr~ws it'~ only ajob for 89 day of less. Most of thesc company's bring their 0"" OlJf OF 

ST,\rE CR~WS. and hire "ery rcl\' orthc local~ as promised and adwrti",,>d. We"'c SCi:!' this 

fi rst h;md hcrc in Antcl0p" Vallry, Calif. This is II,e big,gesl SCAM in Americ~ll history. 

Wi,,.j Energy docs not Ilrodoce as "dvcrti~cd, total propagallda. Wind will!lcwr rcdu~c 

our need ror Oi[. Wind i~ not a reliable ,"" .. ,.e of.ner!'y. and o"ly p,odu.:c. 5% '0 I~~ lIol 30%-

J5% Ihal ~ statc"<.l. Thc"Se giam SO Siory lurbincs hold 500 gall"n~ <;If oil cocll and use mo'" 

energy 10 rolatc, change gc.trs; brake artd start up. Ih~" thcy prodocc. i'lowcII" our governmcnt 

be 51) blind, ~nd continue 1<) wastc our TAX DOLLARS. EUlllpt' has hu,,.j,,,d$ offailed Turbin<: 

prujl"<:ts. why ar~n'l wc learning fron' Iheir mistakes. 

Ld private f:nlerpris.:: do the job, Ihe gowmn,enl needs to butt uul. Every thins th,'), Slick 

thcir noise in to gee:; belty "p. and [»lIS our co"",ry dL'Cpt'r in dcbt. ·hk .. Oboma's cr;."<.lil C3m 

away, hes like an oul "fc ..... trol kid in a candy Slore and find :somc'IIne that knows huw l)a.la"c~ a 

ch~ckbo<lk! I can'l believe ,dlat bad shal'" our cO""'ry is in. WC'''' . p;",linl: do"" inlO 

quicksand. Ea~b day g~1.:; \\0"..,. 

Judy W"ISOn 

i.;L£....!?-4O@mOO•COlH 
662 

Statement of J.W. Pavlic 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.597

MAY,,'",20)2 

1'0: U.S. IIOUSE )'UnIAIlV WAYS ANI) MI!AN'S (:mIMJ'lT'!11 

UE: ' '''IN)) t:N.!UGV I'ROUUC'I'JON' 'I'AX (:lUiJU1' (1)'1'(:) 

.'lIml; J. l\'. I'A V',U: 

'J'I'J'U!: I'I I~SI! EX'fEN., 'J'UE ' WIN .. ENElmv l'Il0l)UC'I'ION' TA.l: 

CIlEIlI'f 

SUlJ'J'I'I'L1i: (1\ Ull'I"I'EllllNVIUON)JEN'J' ..• ) 

WOUl.UN"I' I'f lUI NICE 'fO MO\'E IN')'" 1'111: NEX')' C.:N'J'Uln' 

",nu NO WOlUUliS 'I'OWAIlUS n •• : '''I'IIOIJSANUS Of WA'I'EIt 

l'nOnlJCING IIIU'UA'I'ION I'IANTS" 'I'IIA'I' (:OULI) BE i'OUN)) 

IH)'I"I'ING 'I'm! (IUSINli) SIlOimUNI~ Olll'Hll CllIlA'I'I\'lll,V 

I'KOIUJI:'I'I\'I; )IONOUAILS '1'0.1\ '1' 'I'KANSI'OR'I' COUMom II~S 

ANI) MA'l'IiltiAI. '1'0 Im IU N'I' I'ORTS IlIJN BV SA,,'I! ANI) 

\.' ICII~N'I' m.li(;nUCI'l'\'? 'CIIE I'KOUl}(;'J'IVELV 0.' SAn: 

'I'UANSl'OU'J'S AN)) " 'A'I'EK "":I'UA'J'ION svsn:MS OF 'rill! 

I"V'fUUE ,;oUl.n Illi (;Slm WI'I'U A VliUI'I'V 01' 'I'II)AI. WAVI! on 

" 'INn l'OWEn GliNlinATOns (AN)) l'AnABOLlC; SOlAn Ulsn.) 

l 'ItA1' (;OmUNlm W011l," IlAlSE 'filE S'fANUAltn CUI o u n 

CUIIATIVE LIVING ENVlltON}IENT. , • 

I'.S. AS I1"S CONnmNING AUOI1'I' l 'OUA\" S 1.liAnNlN(; 011 TUli 

UII'I;KSONAL ATl'I1'UUES 'I'AKEN smiE1UIliS IN CnliAl'ING A 

lII n'I ll '1'0)1011110"', TilE POSSIIIIU'I'ms 011 CllliA'I'lN(' A 

m rrJ'l!U WnnL)) on 1'111; AnTl'IJI)ES OF AN INI'INJ'CE UIAIlNING 

SIIOIJ(,J) liE AUGNlm WI'I'II 'I'IIE HNOWI.EIHm 011 A Sm.II. 

INS'I'II.U:n IlI!ASONINH ANI) 'fill! }J()'I'JVA1'ION OF 

C;)tHAl'IVENESS, 'I'IIE IMI'EIlSONAI, IJNJ)JIIlS'fANJ)JN(' 011 

'I'OI)A\"S ,,'0I1LI) IS SOM.li'IUliiS FOUNIJ '1'0 liE 
663 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.598

lJNSlJlm ()II J'l'S IU A1 IVI NESS Oil 'I'UAT I'I"S A IU URI~ (J)<' 

(:llEA'flVE ','lIoutm'l' ANI) 'U ASON UJ.F.UNJ)J llS fANI)J G, 'I'll I! 

UlmAVlO1l OF A }IA1'HIUAJ.lS'f SOCIETl' OIlI'l'S 

1}11'lmSONAI.l5'I' VNmmS'fAN()ING'S N01' IIASH .. tWON AN 

INFINJ'l'E LEARNING Oil A 1'"Ull' Ot' 'I'II.E HUMAN S1'A'I'UIlE. TilE 

I}WEIlSONAI. KNOWLEltGE 011 'I'()J)AY'S )IA'I'ElUAI.IS'I' WOIlU) 

IS BASEn 1WON 1'UI! nUAUSM OF A snmlO'I'IC IUIASONINf; 

'I'IIA'I"S PAll'fIcu:n Ill' A Pl Nnt N'I' m lGllIm 011 AllNING 

OR I'1'S MA'l'ElllAI.IS'I' VNmmS'I'AN()lNG. 'I'IIE Elm'lCH 011 

Ula lAN NI)J IlS ANUlNG IN 'I'''HAY'S MA'I'llIUALlS'I' wOIu.n IS 

110IJNU IN 'I'Ul IU~SONING 011 " ,,'DAl' liN'I'lillS Tn I: (;ONSCIOIJ5 

IIN'I'tillS '1'1111 )IINO" AS Tim (;ON5(;IOU5NI155 IS '1'1111 

(;ONS(;IOUSNllSS 011 'l'UU'I'1i ANI) t·OllGIVENESS. '1'1I11S 

IU:AI.IZINfJ 'I'Im JIImAN (;ONS'I'I'1'1)1'ION'S IIASlm lWitN 

1I0NllS'I'\', ANI) IS NO'I' AIIOvt: NA'I'Ulm'S lAW. nip. INflNl'fJl 

UEALl1A1'ION ()I<1'UI1S'1' ANn UVitlAN IlNmIUS'I'ANtnNf' IN 'I'IIE 

wOIU.n 1'onA\" S IJAU'I' OF Till! UNI,rlmSAI, (;OS}IOS ANn 

lHiS1'INlm l'IIIUlAI'S 

Ill' A IIIGIIElllmGlUm 011 IU ASONING ••• 

TII!l.NK fOil, J .W. l'i\VUr. 

:Im) 'II )141N ST. WAnSWOIlTIi. 011 ,14281-13,10 

(:lao) a:H-""28 IIl.S . 

lI'rrl':/IJ!1.Il NEf • Till l'Ol),COMj 

, 
664 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.599

W ritten Comments for the Record: Hearing on Certain Ellpiring Tax Provblon5 

House Ways ""d Means Suboommillee on Seled Re~ "ue Me~s"re5 

Comml'"t • • "bmitll'd by: 

I{e~,,, Strudlhoff 

P,es,dent/CfO 

Kata"a SUI"""lt HC 

1600 E 2.9'· Ave"ue 

Coluf11bu •. Nebra5ka 68601 

(402) 563·9318 

~~t,udthoff@lI.a ~n3 ummit com 
665 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.600

htana Summit, a U.S. manufaClur r of utility 5.,.1~ wind turbine towe .. , urg s the United States 

(onerelSlo e~lend Ihe wind energy production la ~ cr dil- commpnl~ rel .. tr .. d 10 as Ihe PTC - a. soon 

JSoonilJl ... 

Katan~ Summit is hudquartered in (olumbus, NE with" ma nulacturing olant in (olumbus, 

Neb ra,ka and an add it ional factory in Ephrata. WashinKton. We emplor jusl Over 300 worters in OUf 

tacilities and are currently working on m.nuf~Clur ng for Our 201210we r orders. AI this Hme, we have 

nO order. for delivery beyond the th ird quarle r of 2012 ."d we foresee no potential il Ihe PT( is n01 

extended immediately. Ded,lons res.rdins towe, p'OCIJ,eme"t generallv lead ac\ual i,,"all.tion by . 1. 

mo"t/l. and the impaCl of the pOlentlal PTe upiration is beonll fe~ by ou, company righl now . , 

d .... elopers delay any deci, loru rega rdingthei, 2013 "ct!vitie, while waiting fo' a slable policy. In the 

event th.t the unce rtainty regardrng the PTe is no! r<'.Solved quickly, we .re looking_t the very real 

prospect 01 laVing 011 between 70'llo Md 95" of Our I.bo, fo rce when our CUrrent projec s.~ completed 

In laleSeptember. W., nave a lreadv e llmlnat .. d ..,..." al capital up"n'ion plano lorou, planl!i and are 

beginning th ... planning fo, the potentia l .hUtterlng 01 our lu ll Iii .... 

Ou, factorle. provide good job. wllh e.cellent pay and benefit. In two rural are a. 01 America. 

Our employees take pride In the fact th. 1 they a r" helping dlve",ily "'m rica·, "n .. rgy portfolio and look 

lorward 10 contlnuing to do.o In the IUlure. We urge Congre"lo continue to support diversification of 

our energy 5uppiV and U.S. ba.ed manu/acturinll by movins quidlVlo e.tend fhe PTe. 
666 

Statement of Katheryne and Gerry Gall 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.601

Tu: U.s. H!>u •• S~ ><ummIUee u" Sok-ct Rev.nue Mca"",.." 

R~: He~rln8 on Certai n <:Xpirillll T." l'n)v\slC\n~ 

\II ~" re wri llng 10 'll~yo u to END Ihe "",ducllon 130 Credit Ihe Inv"Sln"nl Ta~Credll ~nd ,,~ IIthee 

feder.1 support oflnduSlri,"1 Wind ~n"'llY. 

Th~ wind eno'1O'indu,,1)' h,. grown ."bsmlll;,lIysi"<1! Ihe producllon 13"c ... dil w~sad"pled In 19"92, 

and y~1 wlnd pr<l<lu<1!S only al>oul 2.3 percent of Our ~Itctrldty nationwido. 

Tm<paycr> v~ ,uhSid,Jo;ed wlnd e ne ill!' /or20 ycar~ nuw. eh vefunQt<! the onduSll)'with m."y 

lens "fblllio"s "fdulla .. ($1 4 billion laSI year, via the prodllction taO CHdll. Ih~ i"""stmonl UlC c,..,dit. 

and other la. and .... gu13101)' provisions. as w.1I as I""n gU"ranl""" a nd ou"igl1tgr:mls. ·rhi. f"ndlng 

was int~nd~d to gOI a new technology up and running. 

Wind eMIlY i5 (on<lde",d at .hlslime tll be It "ma.ure I~nology" and lIlt ... trllly ""onoml~3 11yvlablc it 

shn"ld l>t' able ." huld II< own in Iht! ",ark~lpl'C1! withu ut <""cfal t:,,, tl"1!a'mCilL 

The dlrec. =1 of .he 5uhsidy 10 LlXp;ty~ ,.... as "'l'Orted by Ihe cD"ltr~ •• "",al Joint Commlne<: on ToxJ""n, 

would l>t'$6.\l bl ll~n ftom 2011 11)2015 I'<>rnew project> hnplem~nle<l by lhe e nd <>flhi$y~~r. Thl.'i rogure 

l1c<!dl s' ly <>ddt to Atnon..,', d~bL And P"'J.l'rt5 bo!gun In response loan "l<tefUijon of the t;n rro!<illin the 

ne~t yur ..... ould ilnly nrre~,e ,h.1 numl>t't. 

After ~O ye~ ... M Llxpayer ~uPi!UrI, the wind Indu try .;annol show nny ~"lngf,,1 b~n~nl concemlng 

produe!ion of "g re~n" ~nergy or the eliminatiOJl of older "dirty" ""wer planl<. Ilowever. wind 

d,,,,cloponoflt 00s produced neg"live long'lerm results: rural rornmunlt;e!; It ft divided. ~nd.cal"'S 

degr;tdcd. hird .nd bat pQpuialion5 Ihre~lencd. ~nd ~I"",dy dwindling natur;tl h~blt~ts destroy<:d. 

Th. leo<t p"iltlclz~d approach would be to . limin3(e nil government . "Mldle. and la" credits 0" 

produc.iOl. ufal/prima!)' SDun:esofcltcrgy. That would give all "",Ihod. nf encIlY pr<>duc.ioll a n own 

chance '0 con'I",'e In .he market b".ed on Ih oi, 'ru~ offlde n,}, "lid cosls. 

The purpose o(the I..>~ rode .'ihQuld bo> Iu ... i:;.e re-venu~ ~r Ih~ leglt\m ~ functiullS of the federal 

governmenL It 1< 110.appropriat ~ to use It 10 lip the !iGlIPS 'OW3N favored techtlologi l"!>. 

ln 'e r~ y. 

Kalh~rytle and Gerry Gall 

P.O. Box 135 

Hamilton, NY lJ34~ 

3 15·824·3534 

kibll@ltwcnV.rr.oom 
667 

Statement of Kathleen and Lucien Catania 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.602

Subml,,"'n 10. me .eco.d aboUI expi..,..j ene.gy la. c.ed,,, Of "I .. ""'~nde .. " 

Addres!: 2425 T~ .. yef Road, Hubbardsvlne, NY 13)55 

Phon~: )lS·427-&180 

emai!: kalh efllev@yahoo.com 

For 20 )"<"aI'S". laxflaJcn; II a\"(" flroflfl"d uflllo<" wind co~rgy iodll~try. Do:-liflit~ Ihe muny lens {If 

bill ()n~ M dollars (S ,4 billion la.t year) given to them via the pNduclioo IlIX CI"\.-<lil. the more 

.<CCIlI in\"C;;tmcl1It~x credit. ~nd lither n~ 31ld rcgulolory proVi5i1lOS, 3. 'wil ~;; 1000 glJ;lr.mtce" 

~nd Ilutrighl gJU01,. the industry ~liU c{Jmes ~ggiog. 

And c\·cn after 10 rears !:If ~uch lallleSS<.'. th.· j"dllstry C,1n nOi Slh)W any meaningful bent'fil 

cOn(:cmin& any cncr!l:Y, poiluti(m. Or carbon pmbk'm. 

lnstc3d. rural commUl1ili~:i hn~c be.:n left divilkd, lanJscafl"s dCJ;",dcd, bird and bat populations 

thr~alel1e<1. and already Jwindlinl;.nalUf"dl habillll,; desrroye<l. 

1l1ll:C you to END thl" Production 1'3); Cr.:dit. the Investrm.·m Ta." erroit. 311d allY other ."edl.'ra\ 

sllpl'on lIfindustrial "'inJ energy. 
668 

Statement of Kathy McIntyre 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.603

Kathy Mcintyre, Editor, Gateway News 

17503 East 104th Way, Commerce City , CO 80022 

720·221 ·7352, lS!D.c'oI4248@ao1£.qnl 

TiUe of Hearing: Hearing on Certain Expiring Tax ProVIsions 

h Kalhy Mcintyre, Editor of the Gateway News in Commerce CitY, Colorado, 

respectfully urge Congress to extend the Wind energy production tax credit (PTC) 

as quickly as possible. 

Do not wail to extend the credit as the delay will cause undue stress right here In 

my own community as we have the Vestas wind turbine plant here that 

employees many of our residents. There is no need to walt and there is no doubt 

in lInyone·s mind thllt wind is one of the very best renewlible energy sources the 

world has. Please from a community that is counting on you to make the right 

decision. 

The PTC drives billions of dollars in private investment in homegrown American 

wind power each year. I have seen the wind farm near my house revltalize my 

community - bringing in conslrm::lion jobs at first. and maintenance jobs in the 

long term, and generating revenue for our community schools and hospitals over 

the lileUme of the project. Increasing the amount of power that our country gets 

from clean, homegrown, affordable resources is an excellent thing for us to doand this tax credit provides an incenlive for the wind industry to continue to do 

just that. 

I urge the committee to take up an extension of the wind energy production tax 

credit right 

Sincerely and respectfufly. 

Kathy Mcintyre 
669 

Statement of Kathy Nobles 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.604

Ap1i125, 2012 

I, Kathy Nobles, Project Asset Manager, Clipper Windpwer Development Company, 

llC, 6305 Carpintena AYenue, Ste 300, Carpinteria, CA 93013, respectfully urge 

Congress to e~lend the wirnl energy production tax credit (PTC) as quiddy as possibte. 

Please act immediately letting the PTC expire will mean the loss of thousands 01 

American jobs. Wailing 10 extend the PTC until after the December 31 . 2012 expiration 

date will cause irleparable damage to the progress and momerotum established A vote 

fOI ttle PTCV!s a yote for Amelita" jobs and keeps money in America. 

The PTC dlives billions of dollars in private Investment In t>omegrown American wind 

power each year. I liVe in one of the pioneer Wind communities, Tehachapi, California, 

and haye been employed in the wind energy industry for 22 years. I haye seen the 

posltNe Impacts of wind ellergy in my community and other communities - blingiflQ in 

constl1Jction Jobs at first and malf1tenallce jobs In the long term, alld gellerating 

reyenUe for our COmmunity schools and hospitals over ttle lifetime of the project. 

Increaslf1g the amount of power that our country gets from deall. homegrown, 

allordable resources IS an excellent thing for us to do- and this tax credit provides an 

incentive for the wind Induslry to continue to do justlha!. 

I urge the COITImlttee 10 take up af1 extension of the wind energy production la)(cledlt 

light "<f'Nay_ 

A4l'Nt ?tJk.l 

Kathy Nobles PfOject Asset Manager 

Cljpper Windpwer DeYelopment Company, LLC 

6305 Carpinteria AYenue, Ste 300, Carpin\erla, CA 93013 
670 

Statement of Kenneth Maurer 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.605

Ke!l!1CIII B. Maurer 

16611 Elllers-51. 

Omaha, Nil, 68135 

41)2-896·9385 

d80ken@gmaiL<;Qm 

April 24·, 2012 

Committee on Ways and Means 

Cllairman Olive Camp 

liOI Longworth HOIl 

Washi!lgtoll, D.C. 20515 

Dear Committet' Members: 

I, Kfnnelh B. Maurfr a wlod energy advocate In Omaha, Nil. respCClflllly urge 

Congress tQ extend the wind energy prolluctioo tax credit asswiftly as possible in 

order to prevent tile IOS5 of tens nfthousands of jobs hl the illdustry, 

While I c,ln IInlicrstand the reltlctan~e to provide furtht'r tllX energy credits liuring 

this IfIlubling economic perind, I think not passing It would only creme alidltionJI 

liard ships. I'ailurt' to pass the PTe will (lilly Icali ~ 10wMlis further liepenliell~c un 

foreign 011, The only sensi!>le way to break the grip Oflll15 dependence is to provide 

alternative energy sources in the Unit~d Stales. "The II1lSWer my friend 19 blowing ill 

the Wind" 

The wind energy credits helped Ihe technology grow from 9,000 megawatts 

ill 2004 to ovel' 46,000 megawatts tod~y. Wltll this growtll we have seen nltal 

communities revitalized or reenergized willi jobs. Our country needs the PTe to 

lIelp lil'ive In investmenrdIlH~r~ that brill/: in wind turbine manuf~ltll ing .wlnd 

farm C()nsttu~tinll aod loug term wind !llrbine m~inten~ott jnbs, Tllese jllb~ drive 

comnu.inity grQwth. 

We lIave seen a turnaround in ollr Jllto Imillstry, but for that to comilllle to grow 

along witb other American industries we need to support American jobs. Please. do 

what's right for Ameri~a and ~upport this ta~ erNiIt that prnvides Incentive fot the 

wind industry to keep this ~ounlry moving on Its patll to energy Independen~e. 

Sincerely, 

i<ennelh B. Maurer 
671 

Statement of Kent Greentree 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.606

Kent Greentree 

P,O.Sox 41-4, l.iI Veta, CO BI055 

ke n\:£re ... ntrec@yatloo.con! 

719-251-3753 

I)('ar Senators and Congl"essmcn of the Ways and Means Committee. 

Please extend the Wind Energy Production rax Credit as SOOIl as possible. I am (ully 

aware that in these dinieult times sacrirlces must be made but this is not one of 

them. Not passing hi~ bill has hurt the wind industry Sl'VI'rely her~ in Colorado. 

Hundreds of employees of Vest as Wind Turbines are facing layoffs. All future new 

site plans are sh ... lved. And many individuals like myseJfwho have invested in our 

futures by going to collegt· and Incurring hl'avy student loans arc nuw facing giving 

up on our future In wind with no way to pay back those loans. I p~rsonally have had 

to go on food stamps, defer O1yl03n payments. take up II sea£onallow paying job. 

and put my hnme up for sale. 

I want to remind you that everyone gains by creating wind farms. The revenue wind 

farms tiring In bronches out to 50 many, from landnwners to county tax revenues, 10 

even !lIe power companies when they're not producing. And, all the m~ny 

companies who no! only make the turbines but all those who build the small parts. 

3nS those Il'hn install and maint~ln them. 

So. I respectfully ask you to move the PTe through as soon as possible before an" 

more damage occurs. Please move nnw, 

Thallk You 
672 

Statement of Kent Spriggs 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.607

HOUSI! Ways and Means Commince 

Hearing on Cenain Expiring Tax Provisions 

Wind is clearly a major technology as wc work toward suswinability_ 

Some States have made a good stan. Some countries. c.g., Denmark, wind 

generatl!s over 20% ortlle nationaltoial. 

We have historically given ravorablc govcrnment trc:nment \0 other rOrnlS of 

energy such as oil and nuc lear (limitation on liability). 

Wind power is <l great jobs generator. 

Please extend thc wind encrgy production lax credit. 

Kent Spriggs 

Spriggs Law Finn 

2007 W Randolph Cir 

Tallahassee, FL 32308 

850-224-8700 

kspriggs@spriggslawfinn.com 
673 

Statement of Kirman Broadbent 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.608

April 24. 2012 

Builder's Construction Services Inc. 

PO Box 379 - 200 Main St. 

Touchet, \VA 99360 

(509) 394-2000 Office (509) 394-2978 Fax 

e-mail: bcsinC@pocketinet.com 

Builders Conslruclion Serl'ires /nc" a leading wind projeCI dereioper/ComraclOr 

based in Touchl'l, IVA urges Congress 10 ex/md the wind l:'IIergy prodllctio/l taI credit (PTC) 

as qllickly 0)" possible. 

Buildm CO/l,~lnlclion SCl1'im Inc, fias been or/iI'ely illl'O!!'/!d in Ihe Wind Enl''ID' busillc$S 

since 1982. We a/so work in oilier Renewable EnergJ' endeol'ors. T~'o yflU'S ago Builders 

COIIS/flle/irlll Serl'i('l!$ Inc. had 6() /'mp/oyee~, we currently hal'e 6 employee.1 and are nOI sure 

allhis /illle ijWI! )fil/ be able 10 contjlllll! In fhe Renf!\\\able bllSilleSJ wilh(mllJll f'l/ergy Policy 

that will sholl' SO/III! IOllg term inveslmel1ls Iho/will pay offfor Builders COlls/ructioll Services 

/I1C. An r.T/ellsiOn oflhe PTC WOIlItI be a g(}()(/ sllm 10 lIlI Energy Policy Ihis A£/minislrllliOll 

lacks. 

We ,wml1gly lIrge lhis c(Jllllllillee 10 immediaiely fake lip till ex/ellsioll oflhe wind 

ellel'gyproolicliolllax endil. 

Kirman 1. Broadbent 

Vice Preside-nt 
674 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.609

Submission of KPG Investments, Inc. 

To the Select Revenue Measures Subcommittee of the 

House Ways and Means Committee Hearing on Certain piring Tall Provisions 

Thursday, April 26, 2012 

Contact: Joan Stephens 

COrltroller 

8280 Prirlcetorl Square Blvd W, Sulle 8, jacksorlville, Fl32256 

(904) 733-4440 

kpgirlvestmerlts. net 

KPG Investments. Inc. Is submittiJIQ th .. follow'f19 commants In conj~nction w,th the April 26 

Select Revenue Meawres Subcomm,ttee hearing on -Cert ln E~plrif19 lax Provisions: In 

particular, I(PG Inve$tmenls. 1"4.l. offer$ commenl$ in $UppOrt 01 retroactively exlendlng 

provisions relating 10 the Work opportun~y tax credit (WOlC). one of the tax credit provisions 

collectively referred to as Ill .. "lax extenders· 

As many others have noted, the tax reform In which these tax extenders wi ll be evaluated may 

take some time to Bccomplish. Until that OCClIrs, it is Important to maintain certain tax provisions 

that help to stimulate investment and JObs. These provisions need to be extended as 

expeditiOlisly i1li possible to eliminate business uncertillnty tnat 15 oausing delays in 'nvestment 

and hiring. 

For small buslr\eues such as ours, WOlC has had proven results. WOTC has become an 

Important tool to help job crealOt!ll ike us hiring and training our workforce. It Is not enough to 

reduce employee social security contributions and provide funds 10 unemployed. If Congress 

wants 10 support business growth and reduce unemployment, particularly amongsllhe least 

Skilled. it needs 10 help businesses like 01115 by redUCing tile cost of 1l'lIng. on-boarding. and 

training, 

Business unc:el1ainty thl hn resuneq from COI1sressional dei<ly in e~tending these prov;$iO'lS 

toOls led \0 a slowdown In llwestment and Illring, 1\ [s cntical for businesses sucl'1 as OUI'$ thai the 

c~lTent la~ system pro~ides certainty In the ,ntMm, 

We respectrully urge this Subcommiltee to act e.ped~iously to extend busi"ess tax "extenders: 

and particularly ttle Work Opportul1lly Tax Credit PrOl/ram un\ll such t,ma that ta1 reform can be 

enacted. 
675 

Statement of Kristina Cliff-Evans 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.610

I, Kri§lina Cillt-Ev~n" a retired nurse in Phil~delphia, Plio., re.pectfullv url~'On&re'~to eXtend the wind 

~ne'llY production I~x credil (PTC) a, quickly u possible. 

ConI''''' has prevlou,ly encouraged the d .... elopment 01 energy companle. in the l>'I,t to a" iS! them in 

gening <taned. III. crucial lor the wind Indu.try to h~ve thr' a"l.tance to enable O1Jr country 10 take 

advantage of thi' exuemely importanl renewable. dean energy. Tne I'lC driv", billion. of doU .... in 

prrvate investment in homesrown Amerian wi"d power eaen vear and will bring construction and 

m~inlenancejob. and gener.te revenue for our community schOOIS"nd hospita ls over the liletime of 

Ihe prolect. Increa'ing the amoum 01 pawer that our country geu fron' dean, homegrown, affordable 

re.ource, i. the right thlnil for u. to do - and thl. ta~ credit pr",,;de. an incentive for the wind Indu5try 

10 cominue to do ju<l Wal. 

I urge the committee to take up an ".ten,ion oflhe wind en"'IV production ta. credll 'ight awaV. 
676 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.611

STATr,""ENT POR Tl no RECORD 

IWnd W~ntwo"h 

Presid~nt, Lnnd Tru~t AliinllCc 

JIOUSE WAYS ANI) MEANSCOMMI11H" 

SUB(OMMITn ,E ON !>ELECT REVENUE MEASURES 

HIIEARII'U ON C"RTAIN EXPI RING TAX PROVISIONS" 

APRIL 26, 2012 

Chairman "l1heri. R:mkinS M~111""r Neal. and di~tinsuishe4 mem""rs ()r'h~ Subco:"mni!1~' on 

Set""t R~vcnuc Measures. thank you for hoillins II h~aring on the cxt<'ns;un <lfsho"·t ~ml ta~ 

priI"isiQns. The Lalm Trust Alliance rrprese11lS 1.700 laud cQn""""3tion nonprolil§ across lhe 

cOllnlr)'. many ofw""'" wor~ "ith lan<L.,\\,ncrs who would Iwnelit from Ihe no\\,-l.·~pircd 

enhanced ded""tion for cQn!ributiou, of tapital i1;lIin properly made for qUllliliNi tQn>ervatiou 

plll'pQ~ (sees. I 70(b)l I )(E, and !7O(bX2)(D». We 31so work closely with II larg..' CQIIlilion of 

SpOn,men·s. COllSerV3tion. agriculture and for~tl) org'lOi1ll1ion~ that 5uppon ......e"ing th~t 

incentiwand making it II permanent part of the tax ",,"'e. 

L:utdowners can retire development riShlll on their land by don~tinll. a t.onscTV'dlion eascm,'11110 

kct'J) fam,. mnch and fQrestl3nd~ in producti"e u~. protect i"'p(mant Ii,h Dod wildlife habimt. 

and con".,,.,,e our s~enic and hi'lorie heritage. Under previous law. landowners with modest 

in,"Qm~"'S - such as must fhmily farm~rs - re<:~ived liule or rIO ta~ j,endit from donating what is 

oflen tltt'ir family's most valu~b e assel. Th~ limit On ch3ritubl~ deductions to 30% ora dQUor's 

I\ djusted Gross '''':om/.'" simply did nol allow mQde~'-iocomt' landowners to lah K dt,d"c!ion 

truly reflective of the va lue of their gifl. By alluwing.su.h donors to dcdU(,t a larger pOnion of 

Ih~ir i"com~ over a longer p<'riod of time. the enhanc~d d~duc ion enables thousand;j of 

I3ndown~rs 10 be lIb!e to a/Tord cunscrvaliun. 

" irst p!li>SI:d in 2006. and renew~d in 2008 and 2010. Ih~: ~nhm,el-d u~x deducliun for 

conWTV,tion ~" .... me!lt dunations has helped us boost .""h dQU:lIiuns by onl,·third. (.'nabling 

landowners to volunlarily consen'(.' more than a million acres a year o(forest, fann and 

rangclul"'S. It h3~ eWn gr~"lIt~r jXll~ntial - but thaI pU\~"tia\ can only be re'Jlizcd by l11aking lhe 

incentivc 3 long-tern, pan of the t3 ~ law. 

The laps~: (,(,hi. inccnlive for mOSI or 2010 led tutlle loss of hundreds of potential donations to 

protect lands with important n:nurdl. ugricultural and hisloric. valllt$ - and We f~el' Ihi~ same 

siwation in 2012. An un .... J!.'lin. ofT-again incentive makes it wry dit1icuh tu educme potcnti~1 

donoi'll. In alldition. dmMing a conse,."ation c3sement is a lengthy !nd el(po:n~i\'e proc<'Ss for a 

landowner. orlen laking multiple years JOO H:n. (,rthollSands or dullars to complctt. 

Underslllndably, man} landuwners will ~imply n01 bc~in thaI process without kllOwing the 

incenti"e wil l bt> in place a' the end. 

We~"" proud ofThe bN<ld biparlis,an.j"pport fur RR. 1%4, the bill 10 makl' rllu; ;occn,i,'c 

perntancnt introduced by RCpreSi."ntali"cs Jim G~rtach (R-PA) and Mile Thumpson (D-CA). II 

no'" bas a tOlal 0004 co-sponsors inlbc 1·101151: . including ''''ljorilics of bnth parties' cal.lCuscs. 

We U'1,'e Ihe Iluuse 10 ael soon 10 fcin~tme this commun-,:cIl5e cOl15<:n-atiull legislalion. 
677 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.612

w~ ~I!iO slrPngly ~Uppo" continu~tiol1 ofthC" !xIs;s adjll~tmenl to Sl~~ ofS corp':H'l.Hion, ma~ing 

charitabl~ ronlributicms ofpmflC'"y !;<.~ . 1367/a)). Thi~ provision ~mo\'e~ a limilln 1M. ~i~ of 

charilllble IINu"tioo, an S eOrpQrtltion can tske. ~ Ihat donations from S cOrpQl'31ion~ al'<' lreated 

II ... >l1Ill<' as dOl1atiOn~ fl'Qm pal'll')tr~hips. II has enabled extremely wlu~ble rharil~blc 

contribulicm. t>flund and con~cl""3tion ca~men s 1<)"" made by S cOrpllr:llion, thm ,imply 

would "01 ha,-e be,," possible wilhOliI this pm"i.;on. 

l.<Istlr, we would like 10 poinl 0111 that ~"'O"yt Olher "'ea:;u .... ~ .... spiring allhe end oflhi. year 

are ..... fomls (s~c~. 203 l(c")t2) and (c)(S)(A)(i)) Ihat clarified sec.. 2031/e). on eSlale illS exclusion 

f()r pmpel'l)" pWl""tcd fly" conservation e<llW'mem and eliminateJ o~ure lind dimeulllO 

3dmini~tcr gcuWliphic limitolions for the exclusion. This change was a sjmplilic~lion lind a 

reform - letting it expire lVould he II slep in backwllnls ;!lIOX ..... fonn. 

Submhted by Rand Wenl"onh on bchnlrof: 

J,~nd Trusl Alli~ncc : 

1660 I. SIr.::el NW. Sui1e 1100 

WB"hinS1Qn. DC 20036 S63~ 

Phooc: 202--6384725 

Fax: 202..638-47)0 

Emall: p ..... ~idcnt@l!a.(lrg. 
678 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.613

fl.e L~ ge Publ'..; P o .... e r COtJOL.I' 

SUllemenlorlhl.' 

Large I'ublic Po .... erColl llcil 

for Ih", Record oflh\! llearillg on 

Cerlain Expiring Tax Prov ~ 

April 26. 2012 

before Ihe lIouse Ways nll Means Cnllllnillce 

tlbcummiu~e 011 e~t Revtnut MtIlS tlr~ ~ 

_ ...... (r").~"""""""""""" Cooo __ !""'I ."""" ___ !C<Il ·"""£_(n, _" ___ INCl Goneo."o,.PUOIWIo) OOlc.o.l Jl ~If'W ' ____ ""P<Y1 .... "'-_"' ___ P)· I..-"""" ... __ fTlIJ · , __ t!'o'o) ·-..,.,.. __ fNEI ____ I ... ' . ~ __ ""'!Nf-! ' OOCI"'I ' ____ (COI 

----_~~~""='::;:.I~ .... .:=~i -"""""loc1 
679 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.614

"h~ Larg~ I'ubli.., Power Council (LI'PC) i. pleased 10 s"bmil il. men1~nl fnr Ille .... ·,:ord In Ihe 

Sobc<Jmmi\\(X' OJ, Selecl Rewnue MC'iSOre5 of the !IN'SC W~y5 and M~ns Commiuee in 

con~ion ,~ilh ;Is h\:;lrinj; 011 ecn.~;n e~J)i in!i: la.' pro"ision~ IId<l April 26. 2012. 

The Large Publle I'ower Coundl i~ an organi~.aliOJ' "'p",,,,,,,ling 23 ilf Ihe largesl l<lCall y owned 

Hnd "pc11Ilcd not_for_protil cI=rie ~yslem s in Ihe ""Iio ... LI'PC members HfC loc:!led in 10 .<13Ies 

and ['",-nQ Rioo and p«wid~ ~"'ll"ic !;C1"\'i"" 10 mQolI of Ih~ 45 million people ~«I by public 

power. Ov~r 7S.0Il0 m~g"wal1s "rgetlel1llion capacity ;s <mnl..J amI opcrnl«l b)' LPI'C meml>crs. 

LPI'C ~nd ils mClnbers SILf'lJO" Ihe e~lcnS;On of Ihe foliow;ng jln>\'is;ons: (I) Ihe CI''lln 

Rc"",,"~blc F.nerg)." Bond ICRBIl) program. which WIIS cnack..! as ~ of the Encrgy I' olk~' ACI 

or 2003. and was .. ·.\Ien(kd Iwke and for "hieh addit;onlll all",-ations or I"KInd au""'rily were 

mad.· bUI \\"hietl is mn""lll' w;lhou, any avajJ"bl~ allocation; Hf Ihe TI"<.."3Sury r~lI<.wabl~ grant 

prog)"lllll ("'1603 ganl~") . "ilh 811 a,"endnwnt IQ ~nnil public POW~'f 10 I","kipal<'; n'ld (31 

Bnild America Ilonds \IlABs). 

e~" RCIlcw"hlc F.ncrgyJ},,"d, 

Con~ has r~"'og ni ~etl IMI reflC)"'Illle cne,g)' P'oj""ls 3/>.· gc""",II), mo", cO~ll}' Ihan 

Ck'Clricil), gcncr~le<l fron, rossil (u,,1s and Ihat ,hi. addilional e!lS1 m~kfi; "'n~wabl~ " .. c~· more 

c;.:pensiw I" mlepay""", In all anempll" ~ne"u"'ge Ihe <le"d"pmcm of renewable reoou",c.; for 

ek'Clricily. It... ln l~maJ R~venuc Cooe ha., provid.,d 8 I'flldllCliOll 'ax CI"I.>dil r",. ",ncwable ""~"Il:Y 

proje<:1ll wilh 00 corre'l'<mding provision to assist public power "l'si~ ms and c""penlti""" in 

buil<li'\l; ",,"cwllblc 1;~~'~r~l;un. Cong.res~ WUW" 10 provide public powtr an<l c""pc"~liV<'S with 

an i"",cnlive Ihat is relalively cQlnparablc 10 lhe prod''''lion Ia.~ cr«lil. A. p.o.n of lhe E"",rgy 

P"liey ACI of 2005 \Ihc MEncr&.¥ Policy Ad'). COIIW"CS' provided for Ihe issuanc" or clean 

.... ''''''·able ...,ergy bond~ "hich "" .... int...,ded \0 pfllviM q,rdlifying borro""n \\ilh lo,,·rale 

loons,,, fillance Iheir .... n"wable encrg.." pro.iccIs. 

The CRElh prograll1 WSIS inCluded ns parI of Ihe IU 1;11" of Ihe Ellc'b)' I'ol;c~' Ael ,)f 2003. 

"hich wa. signc<l ;nlO law in August of200S. The orig;,,"1 rrOilI"~m. "hieh pr<1vided fur '1" 

81l0<:aliou of S800 million iu CREB funding , was C)<I~ ok<:l ",ie ... and wa,; ou>dlfk..! in the 

Emc'llcncy E~,)OIomic SwbiliZltlion ACI "f2ooft 10 ~)"kc il I1.IOI'C w\lI"htlle for public powcr and 

m.,..., aur""tiv" 10 inv"~lof$. The mCfgen~y Economic Slabili~..aI;On Act Dnd Ihe Am, .. rkall 

R .......,""f)· and Re;nvcslmen\ A,I of 2009 provided For at, additional S2.~ billio" in CREB 

funding splil ;'"'1u311), hj'twcen public power providers. rural ~1"",,lrk l"OOperul;""" and other 

gon"fl'm~~ ll bl bodie •. 

Thill mn,)III,1 ha~ been !I,ll}' aU"'""3lcd 10 issue,.,.: Iher.:. i~ eUlTClltly n!"> nll!">CIIlion fN CRElls even 

'hough the Ql:W for Ihe p~n'm . lh~' is. the fi,el thai r"J>ew~ble r~'SOuTCC;: forckClr;city continue 

10 be m,,'" .~Jl'.' ,, ~i'·c to ~vc!op. eQlllinu<'$. Th"",fo"" LI'!'C urgc~ Ih" e)<lcttslon of Ihis 

p"'l>'"m Ih"'ugh ~n ad<lilional. p",lerubll' un~aplK:d. even if lempor-"";!)', ~lIoca lion. for liIe 

" ..... >OllS d<:§cribed below. 

LPP(: is wry app .... "Ciat;'·c Of lbe inc""menlal iml"o..-emenlS 10 Ihe prog13m Ih~1 11/1"'" improved 

Ihl: m~rkc nh;li y Mlhe CR(lh; 1I0,,"c\"l."'. th,'''' rcm~in fe;lriclion< On CREI:h' Ihal Subsl"IIlI;nlll' 
680 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.615

",due,," iL' c,T""iiven"SS. Mosl signiFicantl),. Ihc CRElls proy:nn has 8 "olume cap ($800 million 

for pnblic J)()'W' provid~.s) Ihal ,,"n,ures Illal OIlly a ~mall f",~{iQJl of Ihe '1""liiying pmjC<:ls of 

public pow~'I" 8),81""" b.",,,f,t from C REIl .. I" eomrA", Ihere a", nu volume Hmi':!lion. on Ihe 

proj~lS thill are eligible for the protl""tion IU c.edit or Ih,' S=ion 160J grt<nt proit'llm, 

Inlnxlllction of a cap to Ihe program c",ale. bolh rll1HI'II:i31 3ml planning challenges. From a 

Finan~ial St.1ntlPO;IlI. 'he cap hQ, fCSI.;e{,otJ.1lc abili.)' for ulililies 10 Fi,mnu~" L,lti", proj"'::l "itb C~EBs. In la-I. Ihe volume CDP is SCI 31 such a r~'Slri",ivc !c,'cl thnl ! Or 3 IOlllc-scale proj.,cl. 0, 

uti!ilk-s could lise Ihe """Ii,,, ""p_ 'fo d("e, Ihe C Rp,(ls volum" (::IP provided b)' Ihe C"l\gR'5~ has 

been drnm~l;cally owrsuh"critlcd hy public powcr. ewn wilh many ,},slcm5 "-'IluO!Slinl:' only ~ 

small fraclion of,ht·i. "'n"w"bl~ projL'C1 r-Nlw",n.ems and ",,,,,y s),slcnlll '101 boll",,;ng 10 apply 

ut plL The facl Is th~ 1 ~n all",-""Iion .)f CREfis auth<lfilY Ih.3.1 is nOI lar~~ <">10llgh t.l ti",,,,,,,, an 

emi", proj<.":1 """" not compare IIna,,,,;ally 10 a I'riv~tcly owncd PI'A slruclure. \101h pul>licly 

a,'ailaille dala nnd U'!>C's ~urvcy of iTs mcm""rs ptans bear Ihi ~ out: public po,,~. sy~lems have 

almost always "sed I'I'A <{n",lures bc<:ausc. d""pitc Ihe in~n;eienci". and OItw. problen,s. Ih""e 

SlruClllres are ,he lowesl <."O\t method ofr.""ncing ~newablc energy proj'-'<:lS. 

Th~ =enll> .... naclw changes 10 Ihe (,"REBs program 10 pmvid~ di""" p"}''''~nI S to CI{Ells 

iS5uers s,"nilar h) lhe UuilJ A"'trie~ Bond~ prog13n., (in lieu ofta, Cl'Cdil~ In Ihc ,""'O!SlOrs) is 3 

very bendicial change. Wilh Ihis e\lange. Ihe maikelallilily chall~"&"" have been 311~vi"l~d and 

.he I'<'Slrielil'c cap is Ihe primary j~u" reducing Ihcerr«:I" tIWS~ oflh~ pm8111111. 

Cw'J;1l.-s.< has ,,"~clcd ,"-""cr-JI ta ~ crcdilll /in dirr~'l"'tnl 1Y11C5 uf de ... "i" g~"t)el1llion facilities. Fin;t. 

as indicntcd aool'e. Ihe Imemal Revenue Code ptovid.:s n l.5 cents pc. kilowall pnxlu'::liun tax 

c,,--tli. Ildc~,otJ for inOnlion) for qualifying renewable cnergy liu:ililics and a 1.& ccnls pcr 

kil(),,'lI1I pnxluc.im. la~ ~r~otJit (i ndex~d fi). inllalion) for qu.,lif),ing !Id"Mc~~1 nutlcar fa.'ililics. 

As 1"''' ofll>c Am<:.ric~n R..-.::o>'ery and Hcin"'<Slnl'-"'l Act of1()09 jARI{A~ C<1ng"",;.s .e<:ogni1J.,d 

1/uI11II~ ered" pr.)gram~ can ha, ~ sil; niFic~nt IIm'tal'ons. ra"kularl)' during dlm~ull c<:onnmlc 

periods_ UndL'I" n~w Ihe Secli'l<1 1603 of ARM. ConJ;1<'~S provided OWners of ...,ne,,",bl~ ~ne.gy 

prqject, with Ihe abilily 10 oblain n 30 l">"'el1l /i;mJl! ffQl11 the Depll"mel)\ of Eu,,'BY in Ii"u of a 

111'< ""..:IiI. As \>9lh Ihe Treasury ""d Energy Dcpm'u,wnl$ I)ave teslitied. Ihis prop" has 1x'C)! 

cnonnousi)' successful. 

Unfonunal~ly, Ihis grant pro~"" was ntade inarpliC<tbll.' tv public power sy~ ~.,)!> -and electric 

coopcmli~es. The ~o",bil\ll1ion aflhe SlLI:c,'Slj of.h~ Seclion IflO) grant program nnd. befun:' Ihal. 

,he pnxlU<:l;on uu; e",d". ""d Ihe limitalians of the CIU!Bs p.og",n. h,,~e .esulted in public 

power 5YSI~"'S <Wcrv.-iteitn'ng!y tuming 10 structu.es 111 which Q privol~ (-<1lily owns the 

"-~lC\\'"bl" cne'1;Y p ... ti~'CI w.d sdJij Ih" d«tricity h' Ihe p"l;1lil: poI\c. SYSI~11l under" I'Ower 

po",h..,;" ag.""mcnl ("PPA·"J. Tilt", arc m3ny dlfllcultie-s with (hesc i' I'A ~Iructurcs. As much a'S 

1/3 of'he federal subsidy do113'" are "'Iailled by lilt: pri\'ale inlcnnctliary a!ld. as 8 result,,,,,, nUl 

uscd for II>e ",,,,,,,,,ble pmj""l ~cciving Ihe gmll!. Thu" for CI'CI)' dollar of fedtml a~.i-lmnce 

provided. w.ly 70 cellls i. used tor Ihat ",newable enel'gy r~dl;I)' . The ",mainder or the granl i. 

nol c;,,,uin 10 b" reinvested in re,l<)wKblc projeclS in Ihe UniTt"d SI~les, The in"n;ci~",Cy of the 

I'I'A 5Inocl"", \\'ould be elimin~I'..:I if public pow ... r 8nd cooll"",liw5 Ilatl direcl "ccess 10 th ... 

Seclion I bOJ W-am program and US ta.~p"yer dollan and jobs would 51Q)' within the United 
681 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.616

.<;laU,,.. We urge Ihal Ihe 160) gram pro~"'m be "xlcnd~"<I and n,,)dilied 10 penn;1 Ih" I",n;dp,uion 

of (!Ubi Ie powe, and cOOJlC'rali"~~. 

Rullo.! An'~ric~ wnd~ fDA lh) 

BABs ,,'" n new oorro"ing 1001 for Slate Md loc31 ~o~~mm~lUs. includill!;.public pow~r ~milies. 

"nacted as pan uf ARRA. Th""" bonds are cm".e"t'ol1i\lta.xnbic bond~ issu"d by State <lnd loclli 

.. ov~mm~nts. The y,,,asu'Y Deportment nm~"s di",<:1 paymenls to i""e.,.10 .ub,idi~.c a punion 

"flhc;r borruwing C\lSt5 ill an amuunt l"'I1'~11 t'" 35,-. oC lhe ct>upon ;ntc,elIl on tlK: bonds. ARM 

~uthori/l."d Ihe $.~ unncc of BAils in 2009 and 2010 "ilhoul volu",e limilnlil"' ~. CUrrent!}. Ihere 

iii no auth"rit~ 10 i!>Su~ ntOw BAils. 

Th~ BABs 1'l'Qgram was '~ry sl1CCcssful and expandl-d dte n" .. h~ lOr Siale ,,"d local 

I!ovemmemol ikbL Ourin8 2()()Q- 11J. BAa, 1\.'1,rt'S.:"t"d ,wer 25~. oflhe 100al dollnr supply of 

StHle mull"",,1 J:,,,·en.memal deb!. The pnlJ:rnm mps imo ~ bnmder ma""'el of i""eslors w;lh"ul 

"'J:8rd 10 la~ liabililY. fur instance.. ""n Oll funds. II also has ",lievN ~uprly prdsu...-s in (he U1)(-

nempl bond m.ri<cl and has hcip"d to r~-duce interest raleS in Ihnl mari<C1 . Making BABs 

rcrn.aocnt cuuld prol1101~ mari<cI Cef1ainlY and Ilrealer liquid;!}". 

A number of lpPC Inemb!."fS uliH?<'d BAth duri'lltl lOO9 Hnd 20lfl,o fin n~ ~"6S<."nlial rIC'" 

electricily generalion and tmnsmis.;;i.m inrm~Iru.:IUre. crealing much-needed o.jualily jub!! al Ihe 

smn~ lime. We found It." "1'1;0" 10 ;ssu~ BAils a we!come addilion to Ihe 1imil~-d "pli"ns 

available for SIn)" "nd lox';:l l gowmmenml cmilie .. 10 fimnt"(." large projectS wilh long useful 

1'''''5. We u'l;c !hB! .he progmm bf: ",ru:lc""rn"'n~m. or.1 [he vel)' le>l.<1 ~x cnd(-d. 

LI'I'C slronJ:ly bdieves IhOI Ihc electric indw.;tl)' n~....t s (0 bf: provided with IIIi: ~pproprialc (""Is 

lu fina"(.~ new de<:trici!y il1fraSlructurc "nd in~""as" Ihe use of del'" and renewable rcso",,",es 10 

gcncrutc dc-clricily. B) dojnll this. ConBJCfoS ",'" help 10 ,",.SU,,", ttwt U.S. cO"~UmCrs ho"c ~ecr;:ss 

lu rc:tS<lnubly, pric ...... ...,Iiable dcclricily "hile al the' s"me tlm ... cl"l"lIling nnd sustaining qualilY 

job!; h",c in Ihe U.S. Thc",(ore, fQr Ihe reasons di J;\: "~ aboV<'. ".., u'l!e the e~t ...... ion of Ihe 

r"nowinJ: provisions: I I I Ihe Clean R~ncwable ""ergy Rond (CRE:Il) progtlI,n. wilh an 

uncappo.'<l aUn<atiOl1; I)) Ihe T"'a5oT}' re~w1lble van! pro&rn'" f""16OJ va"L<·',. with an 

~",cndmem (0 pcnnil public 1''''"''''' 10 participate; and (J) Build A",cri"~ O"nd.' {IlAlls). 
682 

Statement of Larry Frigault 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.617

Larry J Frigauh 

129 Below Rd 

Richfield Spring,.~ , NY 13439 

!,.!lJTVrQ Ulicaromcinsl1mnc,,-com 

315·858-1)549 

Uniled Stall'!i Comm incc on Ways & Means 

Hearing 011 member proposals relah:d to certain tax provisions lhm c.\pircd or will expire 

in 20 12 

Distinguished members: 

I am wriling to )'Ull tuda}' to ~pre'Ss my strong UPI'osiliun 10 ,m)' cXle'nsi{Jn (Jfthc 

production Ill ~ credit or the inllestment lax credit for renewable energ)'. My 

understanding is you arc once again considering these credits to support Ihe wind 

induSH)'. Ifillis was inde~d u viable industry. the wi'ld developers would 110\ need Ihis 

level of conlinu .... d support. This is nul a ncdgling I ........ hnolog)' Of indu~uy. This is a JO 

plus ear old industry, which has grown only b<.-elllc~e oflhe inscrtiun of billions uf 

t:lxpaycr dollars inec ils bcginnillg. I flh is wus u vi;lblc induslry Ihe pri~Hte seClor wQuld 

have built il.jUSllikc the eOtnpUler industry, and the cdl pllUl1e induslry 10 !lame a few. 

The public Itas virtllally lIothing positive to sltow for Ihese tax cxpcm!itllres, not cheaper 

electricity. not greener ck-.:tricity and not Cll/)ush jobs to justify spending billions. 

Many promises hal'c lx'en made by Ihis industry Oller the years. This industry has- been 

Created by laT),'e multinational eomr'311ics usill!; very established lobby iSIs. aud public 

relation firms to convince you, onr elected officials. of the benefits of wind LIlrl1ille~. The 

lruth is nom.' of the Sialed b<:nefilli have maleriallz<,d, nO! 1 Ion of carbon has b.<CII orrs"', 

not I lradil;onal ~()urce of c!celrieiTy ha.~ ~en turned on'. This is the result allcr lelL~ of 

thou>:1nds of these turbines hu ve hcCIl erttled with billions ofmx dOllars snpporlil1g 

Ihem. Wh:11 lillk- cn~fgy they produce is almost worthl ess to our grid, because it only 

~'atCli ell'etrieity when tlte wind blows. It simply is NOT a r<'liable s"urce of ekelr;c;ty 

Ihut Can b<: <"flt-clil'ely used by our grid. The only promj~ Ihe <levelopcrs manage 10 

kc<:p is Ihe oUlsizc re!Ums by wuy of various lax credits ~ivcn 10 huge eorpormions und 

investm~ nt pools. The Si7.c oflhe most modern oflhese turbines ove r 500 fcetlall wilh a 

propeller "hieh SpWIS 2 and 1/2 lIere;; spinning al uver 200 miles and hour. TheS<' 

turbines spoilthc view aJld ,!uiel ftlr tl1()us.ands "f:.cres surrounding "(Ich turbine'. They 

ellll be secn from /'Jver 25 miles away and henrd from over 2 miks away regularly, nOi 

oeclISio1l1y, as tile indust!")· would have you believe. The del'elopers have publicly stated 

th~e make as much noise as your refrigerator! Ridiculous! l~ d~velupers h'II'e run 

0111 of Sparsely poPIlI!lli'd a~as \10 " 3$le 1:L\pnycr dOllars where lew cili7ens notia) and 

are now placinlllhc!1I in much more pollulmed areas in NY, New England. the Great 

Lakes a~as und SO on. Much Ihe same liS Ih~ cigaren~ indust,), (with gOl'emmenl 

upport~ den>,ng Ihe heallh of cfl'<--.;\S oftohaao, Ihese indu~lr;3IiSIS deny Ihese induSlrlal 
683 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.618

inSlaliations can cause hc~llh iSSlies when siled 100 cl~ 10 humans. Th~ evidence is 

accuTllulaling daily from all around Ihe world aboul Ihe problems these inslallations are 

ClIUsi~popul:t1ions living nc~r Illest insl~ll;uioll S. The developers do"nplay the 

slaughter brought fQrth on a~i3n and bal populalions. Grazing. animals abandon lh= 

d~wloped sil~s when dl~} have Ihe choice. 

In my 101\n, a wind dev eloper has proposed:lu IS MW projCtl in an area wilh over 300 

pc;:!plc living within 2 miles. many less than I mile. Thee05t ofthc proj~cI was 

cstimatl-u at S40.000,OOO. Our averagc wind speed is around 12.6 mileslhour. which 

bolrely mnkes it .1 ~iablc site. When we calcl,lnk the al'erng.e "illd speed uni! u 25% 

ulilizalion roll<' orlhc lurbincs. Ihe projecI would produc~ roughly S800.()()()lyr. in 

eleclricily. So before any opt!fIIling e~p.:nS<'s. basl'd on 3 gene'rous 25 life cXpI.'ctallcy lit" 

the turbincs il will gcnerulc S20,000,OOO in revenue. No business would do this! £Oach 

turbine looses mOflc"y ~ou ca,,'1 make n profit by building mon:! You can only lOllS<' Illure 

muncy and then b~g for mo", ta ~ bailouls! Once again this is "ot a "~w induSlry, IhL")' 

hal'e been taking our tax dollars for)(I y~ars. and whDt do w~ haw to show for il ? Th('1"i.' 

are over 30.000 willd lurbinc~ in America and Ihey do not produce evell 1% of our energ.y 

n~-ed . Wind inlermil1~nt. And by ils wry nnJun: c~nnot be a reliable foml of energy. 

Plea .... SlllP Ihe funding oflhis d~Slrucliw industry. ThL' wind n"rl.lY .'illiudlc is d;v~rting 

our eVl'T more preeious l.~ dollars fr!llll being ~cd to help our poor and suppon 

industries which a~tually ~rcme jobs in companies" hich pro, ide benefils 10 our SOCiCl)' 

as a whole. On lOp ofel"erything I' ve SIlid, many nfthese dollnr.-; end up going!O foreign 

corpol1ltions 3ddinl!. insult 10 injury for Ihe American ta~paycrs. S] 4 billion lasl year 

.done wa~ givCllto Ihem via th~ pmduction t:L ~ crcdil. the more I"l'<:~m inl'cstmenlla ~ 

cr~dil, and other I!l..\ and ",!>ulatory proVisions, ;l$ well as loan guar:lIlle"s ilnd Outright 

grants. Our govemment needs 10 be rno", fiscally respo nsible. 

We ~bsoluICI )' need a sustainable ~ncf!.'Y pt)li~)", bul r ur{:e )·ou to ~Ilow thc SCi"n!'t;.; 

cOl11munity to dcvcl()p r"liable solulions. nOI Illbbyisl. nut SUllie uil saICSl11l'l1. Please be 

responsible with our limited ta. ... dollars and END Ihe Production Tl\.~ Credii. Ille 

Invcstfll~nl Til.~ Crl"<iit. and ~nyolhl'r Fed"rnl support of industrial wind ene!);.v. Any 

thing Ie,s would nOI be!!.ood st('ward$h,p. Th;mk YOll f'lf your time. 

SineL'fciy, 

Larry fri g~ult 
684 

Statement of Larry Rogero 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.619

Nam~: Larry Ro~m 

Adtl",~s: 10924 Djai Sam~ f'11ll13 Rd, OJ,,i. CA 9)023 

Pho~ Number: 80~.108.8b59 

COI1l:'CI E·m~il Address: rog~ro el;l'~rwind.rom 

Title of Ilenring: J karing on Certain £~I'iriog IU Provisions 

!. l. rr~' ~ilgcro, ofOjai. e A rCspci:,full)' "'lie CongrdS 10 extend Ihe wi nd cn~rgy Production 

Tu Cn:dil (PTe) a~ "(lk~ly a~ po>siblc. 

The (,~istencc "fthe PTe uver Ihe last lim .., )'cars h~~ nllm,ed th., Itl'craging "fa rc\3tivcly 

small ~mount ofta ... c",d;1'I inlo oWr $JO b;lIi"n ofpri,al~ in"~"'m~nlS" in "m~ri<:~n ba>ed ",nd 

energy projcct.ol. '''i~ investmenl by the Federal so,emmenl;n these infr~struclure proj~'Cts ha"e 

;n lum <pu n-off annual pmperll' 18~ n" ~nucs. community dndopmcn.t fc~< and print" 

landowner paymcn\.'llh~1 h~ "" prol'ide critical economic suppon to IOC31 conH"unil;cs across Ihe 

Uniled Stat"", 

1'h,s invc~lmcnt by the F,'<l~rnl lOovem,,,cnt has al:;o rcsu llL'<l in high w~~c carninlOjobs for bolh 

white and bille collar ""Ofktrs, These well parinll ; obs genernte sail'S. parroll and r~dernl inoome 

La,<tS thai have and will cuminuc 10 pmvidc much tlccdctJ ~upport 10 highly sl",s:;cd k>eaL Stat~ 

a"d Fl.'<lC1"llI Ii.~al budgets. FI"IlIll 'ln ecumllllic stewardship perspecti ve. thc AlI1erican rwpk 

simply ",ant wr elc'Clcd ol1""tcials to inves1 wr hard canl~d alld Ilrlltlgingly paid lax~s into 

;nilialives aud projects ,ha' provide a WSl3illablc relum Oil ;nvt'SlIllent. l 'be wind energy 

Production T3~ Credit is <"c'l y li'e typ<.· ofiQv~SI"lem a V3'!1 ,najllr;ty of AmL"';can have and 

"ill continue to support. 

Am~ricans siand finnl)' behind Ih ~ idl"J ofdeveluping and g~llerJ1illg ofhollK:l'ruwn and clean 

CIl(rgy n:S<lurces. The tx\(nsiull of1h~ PTe for wind ellergy d,'vtlopment prujrt\S is llligr\ed 

wi th Ihe '-dluc, oflhe American !'Cople b.."'C3US<' il is a wise l"<:Ol>O"';c ;Il,'cslmcnl and SU.!18iuablc 

p:lrl uflhe solulion~ needL'<llu meet "ur currenl and future enl'l"l!Y nL'I.'<ls. 

I urge the cQmmiu"" 10 lake up and SuppOrt an e~nellsiQn oflhe wind energy f'rodu<:lion T\llC 

Crcdh pool hili Ie. 

Sincerely, 

Lany Rogcm 
685 

Statement of Laura Jackson 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.620

U.S. House of Representatives 

Committee on Ways and Means 

Subcomminee on Select Revenue Measures 

April 26, 2012 - Hearing on Certain Expiring TaJ( Provisions 

Comments Submitted for the Record 

The undersigne(! residents and property owners of the 5t.te of Pennsvlvanla respeClfl>lIy submit 

these comments;n responw to the April 26. 2012 Hear;ng on Cena;n Expiring Ta- Prov1sions_ Our 

comments are limited 10 Ihe Production Tax Credit (PTq lor wind energy. 

heculive Summary: The PTC Is often credited for most of the growth in the wind . ector but 

attributin g market act,yitv 10 the subsidy is ewerly simplistiC and fails 10 consider other crUCial 

laclors drjving develOlIment. Whom evaluated isain,! key economil: .nd environment crileria, lile 

GOst 01 tile subsidy Ilas proven exCess lYe and Ille benefils to Ame,;can taxpayers minimal. If th e PTC 

were 10 upi~, the economics of t he Ind ustry would shifltO Slales with renewable mandates. 

Power markeu will ultimately confront the rul cost of wind enersv. and price i1 accordingly. The 

overallimpaCI Qn the indus"y would be fa. le~ severe Illan prQponents claim' . 

Supporlin,Slalemenlo: 

High Co.l: Since adQpled in 1992, Ihe COl" of Ihe PTC for wi nd energy has ballooned from $S 

mlilion/vea' In 1998 to $1.5 blll!Qn "nnually today. Th eopen·endE'd subSidy of 2.2C/kWh I~ after-ta~ 

income represent~ a pre ·t a~ ~alue QI appro.imately l.7c/kWh. In ma ny reglQns Qf Ihe cOUntry the 

PTC now equa ls, or is re~ter Ihan, the wholesa le price of power. Even if Ihe PTC were lo~"nset , 

taxpaVerSa re Sllii obligated 10 CoYer nE'arl\l $10 bllllon In tax credits for wind projects buill in the 

lasl dec~de . Thi. l, in addition to the $15 billion debl for wind projects eligibl e unde r Section 1601 

(i ncluding antiCipated 2012 gr anls). 

Inelflelent: Since Ihe PTC Is uniform across Ihe country it is hlghlV inefficienl, supporting poorly 

siled de~elQpmell t In some areas w~ile In Olher ar eas sup poning prQjects tha t would have beef"! 

built regardle .. ol lhe <:redil. This is Irue in Tuas and Ihe Padfic Nonhwesl Where wind capacity 

exceeds transmission capacity and wind i, (unailed'. In New ~ngland Ihe PTC likely pays more 

su bsidy than is necen.ry Qwing to aggre •• i~e5tate mandat~s. Utilities in New England roulinely 

sign long-term power conlracts for wind at prices significantly abQve muket. 

Oliler factors advanci nl wind development: The industry insists it'. 31 ris k 01 a slow·down WIthout 

the PTe. This ylew ignores olner [(ueial faclors driYlng development indudlng state mandales and 

nalllral gas prices. It is not possible given .vailable data 10 identil'!lne extent to which Ihe PTC has 

CQntfibUled to grQwth in the 5ecto..-'. In fact. demand for wind has eroded recently due. in pan. tQ 

I Uno ... , .,..1. 2011 ,,,,,,, ... ioo,1 T~'!lnl<l"'f "~ /fKl""' .I>ooI\e.I""/II.'f;""' .... bcorl\ml" •• "" Mt,,~, rcw>-.noj· 

.,.. .. >i8h' .• ub<orn"'ltI.., ....... ·8i·.nd-e"0I""'"'"n'· "~l-lo;"r h ••• l"l! 

, Wi>~ .nd 801",~, 2010 Wit!d rrcMa/"'1'" MQ'_ r II ,."., (mu).,1 http,""nn.lbt,o'/ •• fem.f'.porIo/fbm-. 

4lIllkpdf 

' bo' 'om"'ill~o~ 1""10". PU"'~lla""'r! &cw",urnlPoiating 10 ro>cndI<> "', fl«t,k{ty _<tionf"'m 

R.~bI. 5owu< (lOOS) l' "tlP.:II ....... !<t.I""/O<lbOC. """ •. h'mm"n<.<tYlrlo .. ,',d.1S19 

P~8e I 1 
686 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.621

slites meeting their renewable mandates. lowe r nalu.al gas prices further reduced wind's 

attr~ctiveness as a 'fuel saver'. The EIA now forecasts !lal growlh In the wind sector for this decad .. 

reg~rdless of what happens with the PTe"'. 

Job losses: Despite billions in public funding the wind sector experienced a net loss of 10,000 direct 

and indirect job~ In 2010 b,inglng the total to 75,000' Jobs. Most of the ,emainlng job~ are 

temporary construction positions requiring pea~ levels of development ¥ear·after·vear 10 mainl"in 

current levels. Attempts 10 auribule lob creation 10 Ihe PTCmU5t be lempered with corresponding 

Job losses due to highe, renewable ene rlV prices. The State of Vermonl found Ihal adding just SO 

MW. of ,enewable energy at higher·than·ma,ket electricity prices 'had the deleterious effects of 

reshuffling consumer spending and Increasing Ihe cost of producMn for Vermont businesse~ .· last 

veilr. ru",1 electr;': ratepayers in Minnesota paid more thin $70 million In above· market energy 

price. due 10 the high COIl of wind'. 

Environmental ben .. fits: Wind .. ner/IV Is an unpredfctable, Variable resource that ~annot be relied 

on 10 serve load. 115 primarv benefit i" in reducing U.S. electrk carbon emissions. According the 

Na"'83nll

, ~ fou' year uten,,'O!' of Ihe PTC could avoid an Increment al 170 million Ions 01 C02. Th.s 

"best (ase" ",Iimat .. I, not predicated on an actual wor~ing grid region, but if we accept Navigan t'J 

estimate the co"t 10 taxpaver" is at lean $23/lon C02'. ten-timeslh .. $1.92/10n marbl price for 

offsets In the NOflneastem states participating In RGGIl The PTCls a ~18h-pficed lIehicle for verv 

que.tionable leduction. of CO] emission •. 

Coneiusion: The 1< .. V queition Is whelher the benefits olthe PTC lorwrnd a'e wonh th .. COSI. Thl. 

Io-vear old subsidY is expens",e, nefficl~nt, has failed to produce. net-job ~re se5 lhat are 

! uSlainable, and the cost applied per ton of C02 is more than 1010: Ihe mark~t price of carbon Unde r 

~GGI. The US power market has und~rgone significant change since the PTC was adopted, 

iociudinB deregulation. It is not pos.s'ble to isolate Ihe utent to which the PTCconlributes to wind 

sector gtowthlO• Without the PTe. project Kooomics would shilt to states with ~PS pol!cl~ f. The 

lIalue of renewable credits might Tlse in re-;ponse but power markels will ullimatel~ confront the 

real cost of Wind enerHY, and puce it a(cordingly. for Ihese reasons, we Ie .. ) Ihe PTC .hould not be 

eKtended. 

' Wi.." .od 6010""" v • Note:: No lnd~d""l ~""~. ~>.i" to OOftf~m Job <"""to. SI"(~ ... ~ _ I~b In l~ ~O<'I,i<:~v 

_ 'or "'~" torM>lIule'o "'"e.oIr!& tile <0.1 01 e1e<l.kl,v. 1hi> '~.'''' No"",",," de .. llm",u, . 

• 'IT tiPS, rI><' (COIIoml< """.I<f> oj Vtrm""t FHd '" r"'ifI' (2009) 12 

h"pJlpubli=mcr.v.,,,,,,,,' .• o./oIMr,,,,,.;rnoS"20Wh;leI'.l0f".,,,,,,,,,or~"10i""lOI.,,,,.pdi 

' W. II ~" ... Io<Jm.1 G""9'"d bv .h. Wind !M.y 1011) 

hl!p:I/OfIli"e ...... /.to'''/ •• Utlt-/!81000'.1.OS1101lOJSn_SI73601144006391.10.h\"'17MOd.~oo~len .... '_ ..... ) 

• N' ''I.n1provla ... no oe\o;I 0fI1><IW II 0.",,,,11_ oil ... ". Stu<f\l ...... "' .... ,""" wmd DoJm .... r'h0l41 \~e PTe ..,a .",Iv 

1o<>I:<oa .. ",<!,", .. ,n.lbcn~"o .. , 4.., ... (.!Q13·16). TI1e (O"per off ..... polrnU.It,ohlilher tII. n Sut,on. 
687 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.622

s.apptement~t She et 

Submille d by: laura Ja'itson 8611111 ,k Valley Road Evere!!. PA ISS37 

mIJ~<k,on2@embarqmail.com 814-6'>2·9268 

Date submille d : May 09, 2012 

comments submitted 00 behalf of h~ failawlng reslde~ts and propeny owoers of tneSt.le 01 

Pennsylva nia 

Shi ~v ~~y Artny, kear 

1 110 Stilte Rt. 49W 19 MorS('sh~ Rd. 

JO,," S~<r1pson UIYSlfl. PA 16948 UIYSieS, PA 16948 

352 Erickson Road 

Ulysses, PA 16948 l eon B. Reed, S1. ROMie S<henkeln, DVM 

2110 St"le RI. 49W 24 Kio ROid 

Stephe n sampson Ulysse s, PA 16948 C(\udersport. PA 16915 

352 Erickson Road 

Ulysses, PA 16948 hy Brow1"le1i Reed Judi P;«ole ll .. 

Potter Co. Mlstcr\ciil Sociew III ("'I Ave. 

Jo~n Mlile. .lOS Nonh Main 51. Wellr.boro. PA 16901 

20S5 fox Hil l Rd. Coud<>J"5port. PA 16915 

lJlyS5e!o, PA 16948 fran~ Pic,ole!!" 

Stephen W .... tO" III E;»I Ave . 

H~tb Mille. 2923 FOI Hili Rd. Wellsboro, PA 16901 

20SS fox Hill Rd. lJlysSoI!s. PA 16948 

lJlys,"", PA 16948 Rkk Bo-nOfTlO 

Pat,lclo V"len(jne 2248 Maple Va llev Ro.d 

Thelma O""'lh 2923 Fa. foIlU Rd. Be'lln, PA 15510 

810m May lid, Ulyss..l, I'll 16948 

Ulys'"", PA 16948 O • ...e 8o~u 

Rol,nd Oupe,ro~ . O. Bo. 68 

OttoO ... alh 648 /l.ca~m~ 51. rvro~e, PA 16686 

8 Tom Mav Rd. lJIYS~'. PA 16948 

UIy~~ PA 16948 Ma " il Go~1.lI 

V.lf,fe Ouper,on O.Bo.68 

Oan Howe 645 Acade"l~ 51. rvro~e, PA 16686 

1911aoley Raid lJlYlles. PA 16948 

Gern.sH, PA 169B B,uce 80,"a 

Sl.llnl~v Naw.ockl P. O. Bo. 68 

SUeey Howe 2513 1-li<~".· y"e, lid. Ty,o"e , Pil 16686 

19 Raoie'i ROid Genesee. Pil 16923 

Genesei!, PA 169B Neal Buterbaulh 

Helene Nawroekl 471 Wel.h ROl d 

Oan~IHowe 2Si3 Hi<;~ox-iJ Vlse lld . Bedford. PA IS522 

19 R~Qte-; Road Ge~ese . PA 169ZJ 

Gene~, I'll 169B Laurel Kur Unda BUle,baugh 

79 Ho ... "hoe lid. 477 Weloh ROAd 

UlyS!ts, PA 16948 Bedford, M IS522 

P"8e 13 
688 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.623

JYSlin BYle,baysh Elonn~ Doran Aan kthnson 

S14 Welsh Road ? 14 Old f~rm Road 19{)S Cortland Rd. 

Bedfard, PA 15522 Central Cirv, PA 15926 Sehensburg. PA 15559 

JUI Buterbaugh Chuck flel~e, Ma,y Johnson 

514 Welsh Road ~82 Ridgewood Rd . 1905 Cortla nd rd 

Bedford, PA 15521 'lew Pa,ls. PA 15554 Schellsburg. PA 15559 

Sr,a" Bute rbaugh GretChen Fleischer Met KO\;lla, M.D. 

1515 East Manie Rd, 82 Ridgewood Rd. 259 MCMulle n Road 

Bree,ewood. PA 15533 "ew Pa,I., PA 15554 toon~, PA 16601 

Mary BUle,baugh 0"" t-I~"hb ,ge, Su n ~olala. M.D. 

I SIS E. M.n", road 1.699 Shaffe, MountaTn Rd, 259 McMullen Road 

B,,,,,,ewood, PA 15533 Cai,nb,ook, PA 15924 Altoona. PA 16601 

Me fina Bute rbaugh Joan Ha[t'I<Kk EIi5abeth Kotal. 

)18 Clingerman Rd . 1.49 Mill Road 259 McMulle n Road 

Arlem,u, M 11211 Eledford, PA 15522 Altoona, PA 16601 

Joe Ca,al~na loY<~ Herne.ne He len. KOlal. 

342 Station Road J.B We " Ridge Road 259 MeMulien Road 

Bedfo'd, PA 15522 ~.cllell.bu,g. PA 15559 Altoona. PA 16601 

Mary 10 c.. •• n. Micha .. 1 Hernune lank Ku,as 

342 Smicn Road 1.23 ~t Ridge Rd . 30024" Ave. 

Sedford, PA 15522 5.c hells.burK. PA 15559 AltoonJ, PA. 16602 

Richa rd Coble Chade, A. Hover Phil Kucas 

1603 M~"iah Chu,~h ROlId 1.52 MI. Cha,ma Drive 30024" Ave. 

Bedford, PA 15522 rvrMe, PA 166116 Alloono, PA 16602 

SUS3!) Coble Ma'ge Hove , Stephen M,in 

160] Me!,I ~h Church Road ",52 Mt. Charma O,ive 1010 Brant HoHow Rd, 

Sedfo rd, PA 15522 l Vrone, PA 16686 8uflillo Mill., PA 15514 

Tom Oic~ Cowie ~ichman $;Jr.h Miles 

123 Humm~r l<Ine 394 Oa~ Hill Road 365 fox Run Aoad 

Calrnb,ook, PA lS9H "ew Enlerpn",. PA 16664 (~ ,ell, PA ISS)? 

Sollv Dick John K;(hm;m GolV Mille' 

123 Hummer 3n~ :::94 Oal': Hill Road UI7 Tlpto~ Rd, 

cairnbrook, PA 15924 ' lew Enterpr;"" PA 16664 Tv'one.. PA 16686 

Te renc e M. Doran Michae l Jachon Jade Mensou, 

114 Old Farm Road ~:621 81ack V.Uev Ro.4 1120 Oppenheime , Rd . 

Centra l Citv, PA 15926 E:Wren. PA 15537 Sedford. PA 15522 

Page I 4 
689 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.624

~.thy MOII""ur <;eorge ~ad~schl Shirley Wagoner 

lllO Opp nhelmer Rd . 311 Oakv>ew Rd. ]914 Wa,hlngton St. 

Bedford, PA 15~22 e,edford, FA 15522 Hunllnidon, PA 16652 

Bunon MOMour lorena Radesehl ~et~ Wu~er 

1120 Oppenheimer Rd. HI Oakvlew Rd . 602 IIluel>erf)' Way 

lIedford. PA 15522 e,ed/ord, FA 15522 Cenlral City. PA 15916 

lohn liV Mon,our, Ir, E" I.n Schotfslall Bill Zemaitis 

209 Concord Or. 91SO Black Valley Road P. O. Bill! 266 

Bedford, PA 15522 Everen, PA 15537 Bedlord, PA 15522 

Chri,tv Mon.our "'Ian. Schofhl~1I 10 Ann lieille, 

109 Concord Or. g 1'>11 Black Vallev Road H24 on Town Rd. 

lIedford, p,. 15512 Evert'lI, PA 15537 Everetl, FA ISS)] 

,6.nne Prall [Ie,bra Foor Phil liell .... 

3580 Imle,rown Rd. 9'l50 Blac); Va lley Roaa 824 On Town Ad . 

Bedford, PA 15522 [Yere,n, PA 1~517 '\leretl, PA 15517 

Sam Pratt ~.Ian foo r Ali",n Buch.n 

3580 Imlenawn Rd. ~ 1'>11 813ck Valley Road ]005 8at~. Drive, 

lIedford. PA 15512 evil/eli, PA 15531 klhnllown. PA 15905 

Bill P"'II ~.arin Sedewal lad Buchan 

232 f. PeM 51. 1845 Shaffer MO\Int~ln Rd . 2005 Bate! Drive, 

Bedford, PA 1~512 C.aimbrook, PA lS~22 Jo~nslown, M 15905 

Sarah Pr~tl I,ohn S~dew.r lind ... ~ Bu~h.n 

23l E. Penn 51. 1845 Shalfer MoUnla'l1 ~d. 2005 Bate. Drive 

Sedford, PA 15522 CaTrnbroo k, PA 15SU Johnstown, PA 15905 

lohanna P,att e,ne 51a)'lon Tam! Suthan 

IDS Broad SI. nn o,Dell Rd. 2005 ll;ites DII~e, 

Bedford, PA 15512 sed ford, FA 15522 lohn5l0wn, PA 15905 

130 P",n Paul Siaylon Sa", Bu~hsn 

105 Broad 51. nn Oibfort Rd. 2005 Bate. Orioe 

Bedford. PA 1551 ~ e.edford, PA 15522 lohn"own. PA "15905 

Br~d Tupl, £Sq. Deb Te,ncer Mike Sede,w. r 

1470 Redfern D,lve 199ValTe~AYe" 1B45 5h;iffer Mountain Rd . 

Pitlsburgh. PA 15241 .hoon3. PA 16602 Caimbrook. PA 15521 

AM Marie Clyne e..,n G. lre.",lt, Ir. lo~n Andrew. 

1410 Re<llem Drive, 110 10"8 Be,nd lIeach Rd. III Mountain Top Lane 

PillSbul8h. PA 1524) HopewlllI, PA 16650 Windber, PA 15963 

Page I 5 
690 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.625

M~II,sa Andf w. Roddy Ack~1 Jim Ropvito 

11.1 Mountain Top l :;me 11':11 M3~ '1tanBo Cr~~ Rd. 1110 We'l Pine 51. 

Windber, PA 15':1&1 Da lMatia. PA 17017 Fra<kvll1~. PA 17!131 

Agn~5 T. Comin5k,i Veri .... Ack", Lisa Hepler 

606 lincoln Ave. 1193 Mah.nl~nio (r~ek Rd. III T ""nplke Rd. 

Windber, PA 15963 Dalmatia, PA 17017 A,hland, PA 17921 

Denise Comins~y Ed ~lI er 

%20 C"'af Sh.de DrIve Kal~ Boliman 66 Tumpi~" Rd . 

Windber, PA 15963 1593 Bun.", HIli Rd . A,hl nd, pA 17921 

EIff'rell, PA 15537 

Joe ComlMkV J~nnller B~rke 

9S20 Clea, S~'de Dr;v" Ruth Davis S37 [:;m Mahanoy Ave. 

WlndtH.r. PA 15963 12S Viclerla Av ~. Girardville. PA 17935 

her~!I, PA IS537 

John G. Cominsky Tom Sour 

606 Uncoln Ave. Mary lou Pelin SIS E. Siddle SI. 

Windber. PA 1591>3 534 Lincoln I1wv Gordon. PA 17936 

Schell,bur&. I'A 15559 

IM"pl1 A. (om ",k~ Jonn l1ade..\ly 

135 Dari< Shade DriVe , Tom Wasilews'l 110 Malones Rd . 

Wlndb"r, PA 159B S600 SherrOd Hill Rd . Gordon, PA 17936 

Edinboro, PA 1&412 

Dennis McNair. PhD William 5ween~v 

S7S Elknud I..iIne Glenn Ctulad. 1561 Oppenhe imer Rd. 

John.town, PA 1.5905 1201 Wneeier A~e. Sedford, PA 15522 

Dunmore, PA 18510 

Karen McNair Nina Palmer Sweef1.l'y 

S75 k~ud lane Merr! LYM CratB IS610p""nhi!,mer Joiln <low~. PA 15905 742 Fountain Sl. "'. Bedlord. PA 15521 A$h ~nd. PA 17921 

iO~(l Paulo~kh Jack cr..istflun 

70125'" 51. Ben Craig 83 Cham~fS Ave. 

Windber, PA 15963 742 Fount.1in St. Greenvile. PA 15115 

A,hl.nd, FA 17921 

Gloria Je.n Comln.ky M~rt'" C.rone n5 Dark Silade Drive Joe Arcuri 1475 Wen 40'" St. Windber. PA IS%] \200 Wen Pine St. Erie. PA 16S09 

f",cNill<!. PA 17gB 

Richard He"hberger 

Kim Moore athy Arco n 4956 Big Cre~k 1\1:1. 

117 A.lllo ~ Drive 1200 We51 Pine St. Clearville, PA lS53S 

Windber, PA 15963 Frackville, M 17931 

Pan'ela l1ersllberKer 

So Moor~ joe Bpylan 4956 Big Cree. Rd. 

117 A,lItola Drive 166 Tumpike Rd . Clearville. PA 15535 

Windbe r, PA 15963 Ashland. pA 1192/ 

Page I 6 
691 

Statement of Laura Kramer 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.627

t, lall'" K" mer, ~n Auistan\ Edlto, In Boston, MA, respectfully urge Congre" to ~~Iend Ii'll' wind 

energy production ta. credit ~P Te) as quic~ty as possible. 

The PTe drive. billion, of dollars in private Inve'tment 1n ho",egrown American wind power each year. 

hav~ SHn Ihe wind farm near my house ,evit.llze mv community - bringing in con,truClion job, at first, 

.nd m.inlenance job, in the long lerm, and generat,ng revenue 101 Ou r community schools and 

Mospltal. ove, Ine liletlme of l~ e project. Increasing Ihe .",OUM of power Iha\ ou, country gets from 

clein, homegrown. alford~ble re,ources 15 n ellC~lientlhing for uS to do - and \nl\ tn credit provide'i 

an InC<!ntive lot Ihe wInd Industry 10 conlinue to do JUlt thaI. 

I urge the committee to take up an exten,ion ollhe wind energy produuion t •• credit right away. 

!..lura Kramer 

April 24, 20ll 
692 

Statement of LED Services Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.628

[)car Ms L ...... : 

We tire a minority UDIJElDIJE SUE finn in Oilkl~nd Calitornia, We ~re a 

rene\\'~ble enerb,)' lin11. we sell a r~'newnb e energy wind turbine, (Jne of ~ kind. Il'Sted 

And proven. If the PTe is not saved, our clients will nO! have an incentive to convert to 

our tcchnotog). (.nd we will have 10 seriOU!lly e~amine mo~ing Ihc company 10 Canada, 

Mexico or South America. Our product is bcnef,ciollO lh~ client and the environmcnt 

And we II'lInl lo Stay in Ih~ US.specifica!!y Californin. 

Pleasc help us by ~ncwing the PTe. 

Thank )011 

John LOP<:l 

CEO, LED Ser"ices Inc. 
693 

Statement of Lee Glover 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.629

M, Lee Glover 

955 W Way~ta Blvd 

Wayzata, MN 55391 

6 12-386·7292 

&l.ov('( ee"2'!@lJ!l~ ;1,<"om 

RE: Hearing on Cenaln Expiring Ta~ Provisions 

I respectfully urge Congress to w!!fk tog~ th r w pass an extensiun oftlle 

renewable energy productitlfl tax credit [PTCl as quickly as po55tble. J started 

working in the wind indusuy jU5t two year.; ago and have seen firsthand how a wind 

prOJcct ha~ cuntrihl'ted to a local economy here in MinnesO(;I. 

The long project development and manufiH:turing lead times fnr wind energy 

projl'ctS mean that the PTC has already effectjvl'iy e~pire . Right now, wind project 

developers are not making plans in the U.S, and AmeriCllfl m~IlUracturl"'S ;Ire not 

receiving ordl'r!;. The wind industry is (acing the recurrence of the boom-bust ryele 

It has Sl.'cn in previous years when thl.' PTC was allowed to expire, Jn the years 

(olloWlng I.'xplratitln, ln~tallatlons dropped between 73 anil93%, with 

corrC'Spnnding fob losses, I don't want this tn happen ag.l in. 

Eqmpped with the PTC, the wind energy industry has c01Jtrlbutl'd impressiv~Jy to 

U.S, ecnnmnic developmel11, The PTe has been ins\rument.11 in helping th ... wind 

Industry 1.0: 

-Lowcrlhe cost of wind power by more th3n 90% 

-Manufactureromponems fnr wind turbin ... s ~t over 4()O U.S. manllf~cturing 

f"dll ties 

-Pow!!r th~ equivalent of 10 million American homes 

-Provide 35% of all n~w U.s. power capacity in the past fOliT years 

Plcase work with your cnlleagues to pass a PTC cxtensioll-as quickly as possible, In 

doing so, you will give Ihe wind Ind ustry the certainty that il' needs to continue to 

grow its American manufacturing h3Sfl and invest in dean, aifordable, homcgrowlI 

wind pow"r. 

Thank you for your~onsider:Jtion. 

Lee Glover 
f 


79894A.630wwoods2 on DSK499XVN1PROD with WAYS & MEANS

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.631

Submission of Leppinks, Inc. 

To the Select Revenue Measures Subcommittee ofthe 

House Ways and Means Committee Hearing on Certain Expiring Tax Provisions 

Thursday, April 26, 2012 

Contact: Carrie Daenzer 

Human Resource Director 

303 W Main Belding MI 48809 

616.794.3660 

Leppinks, Inc. is submitting the following comments in conjunction with the April 26 Select 

Revenue Measures Subcommittee hearing on "Certain Expiring Tax Provisions." In particular, 

Lepinks, Inc. offers comments in support of retroactively extending provisions relating to the 

Work opportunity tax credit (WOTC), one of the tax credit provisions collectively referred to as 

the 'tax extenders". 

As many others have noted, the tax reform in which these tax extenders will be evaluated may 

take some time to accomplish. Until that occurs, it is important to maintain certain tax provisions 

that help to stimulate investment and jobs. These provisions need to be extended as 

expeditiously as possible to eliminate business uncertainty that is causing delays in investment 

and hiring. 

For small businesses such as ours, WOTe has had proven results. WOTC has become an 

important tool to help job creators like us hiring and training our workforce. It is not enough to 

reduce employee social security contributions and provide funds to unemployed. If Congress 

wants to support business growth and reduce unemployment, particularly amongst the least 

skilled, it needs to help businesses like ours by reducing the cost of hiring, on-boarding, and 

training. 

Business uncertainty that has resulted from Congressional delay in extending these provisions 

has led to a slowdown in investment and hiring. It is critical for businesses such as ours that the 

current tax system provides certainty in the interim. 

We respectfully urge this Subcommittee to act expeditiously to extend business tax "extenders," 

and particularly the Work Opportunity Tax Credit Program, until such time that tax reform can be 

enacted. 
696 

Statement of Leslie Weaver 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.632

May 10,101 2 

1:1m a residom ofN~w York Cil}, wilh S!ron~ l;e.!O" ruml dairyfarn,i"s regio" in ul"'a~ New Yorl< 

,h., is al.o al ,h. heart "f""". major bird migralion ""M. 1><:,,,,,,.,, til< C.lSkill.and Adirondacks. ""d I am 

wrilit,s 10 urge )"00 "" SIttlngly ... p<lIisible I<> in" ... di310Iy and l"'"nanenlly o"d ALL prod""l;on ' '''' ,rod,,,, and any ulncr redo",1 s upl'On for ind"SI,i31 wind ."ergy. 

Whil~ d,. wind I"dush) "hirh h;u bot:n "ying ,,> ,"ok. m.jo. inrQ:tds inln h""";I), d;liry iilrn,rd. 

r"'"tiwly hc"vily p<'!)IJlall"<i ... d rnYi!'OJ1mrnl"lIy 5<'nsi, ivr rutal ..... "" in upo:ta1< New Y"'k _. lOUIS wind 

entrgy', generation "cap;lti'y." aclual prod"tli'", i, fh. lowo< b«~~ 01'111. inle""III<'n1 n31O", "fwind. 

Wind energy is .15(1 "ery cusHy 10 Irtll1$1nil 0".' long ,jislllnccs. 

Hoc ..... of Ihis Qnd toe<: .. lse of Ih. "ind induSlry'5 1000g-,e"" ,eli""". on billion, of dolla ... in f<;><k",1 

,,,I>oidk's, Ill< an oUlrageoo,ly COSily and inellki.nl fnrn1 of energy prodl!C1ion Ih81 Ihi' counlry sim l~' 

rannot afford. 

In mldilioo. while wm. willd proj«I' in """OI~ ~n or olh"'o""," ,no)" to. OK. Ih.} ore NIIllpl<ldy 

iNlppropri,M for "' 3Ii, d~ JlOpUI.I<'Il rur.l1 a"-,,, lik~ Up>tal,' N,·w Y Oft h~1 "'" h~a"il) fannc"<llind.'o< 

'nl';roo"",n",lIy $<·rtiili,·~ .... li.r,,,, ing body I)f ~,id""",· $\01) indiNI", Ihal \\illd prcti'""IS Ihr()UgIl lhei, 

luroin .. · ooi ... vit>r.li",.,.. and lllho, imPll<t. can cau'" ,ul>ollloli,J harm lu n~arby ,~,idcn "'. f~ml .ni",.I •. 

and "'Ojl\."fI~ v.IUI... ;IS " ·011 as 10 rnignu",), hi,d. allll olhe, wildlife. 

Wind proje(fs and turbine. ('""udi"g...,,,,,, now planned Ihal will besom. 50 !>loti .. ki~ ".: h 

hig rn.r lh." lheC.pilO\ do",~ in W.,hingIOlI. D.C.). buill on higll goond or r"'gilo ridge .. and visible for 

nliles "",und .• klng w;lh Ihrir .... ""\al<:<l lmt""'i"i"" Ii ....... n' ~ only ""ar lho \""""'"Jlt and c~"'" 

rny;ronlll~n,"J "",,". 1'111 c",a,< indu",i.1 a""", Ihat 0<,,' jl\.;m""""lly "JIO' lho t t.""","r of ,utal o"mmun;';". 

<:~<Sil h ... ~Ir<'n, m;",,"~ biliIY not onl)" 10 1<)<>1.; 001 for,~ inl<""", of~""h impatl<d I"C$id,"'ts . ntl 

$m311 agricultural ",,.,,",unil;l"'. I diS<) 10 prol<tl "U, nalion' $ t..,3SIlmJ ""d .,uYiru"",<n,. lly """"il iv< .,,"," 

of e~t.rti ""l naliOllal MUty, ,""Iud in); lhe GI\"IU La~es nnd u[,>I&I< No ... Yo:m. as a l',m 'mQnY fur 

~.nen"ions 10 c""' •. Wind lUrtnne proj",ls do not t>e1ong in Iho..'I<' affilS. 

Al a limo or""""",ly Slrained budgets. whon eVOI)' I&X dollor should be 'l"'nl for maximum lon .. -Ierm 

b<~til. earmarkin& any fun l"'r I'"IT or olher fundin!,- for lhe «>.,1y .... 1nd illdumy lhal can not onl~ c."", lho 

harm di<o"s><d aN"" bullhal has OI\I~ a ""gligoable ~ff"1 0,1 ("0" ,,->;1""11on - and Ihu, h.rd ~' <n ".-11'5 

IQ aJo.l\e\$ < lim,," d~I!;' _ "MulliS IQ WUlillg mOl"'y do.I" " III. d.-..I" jnl\l a gi .. " "hil' elo.pha",. 

)Iow can il IIfY.>Siblr make scnS<' Iu l .... nlin~. i)oJilding ."en ""'''' wind projl"IS· - each of ",hich .01" 

millilln;-of<l<lll rs to cr«1 ~Ild .om~$ ~ilh a .Q~lIy I.n·y~.t ,ubsi dy built in - when lhoi, lonl;·~rm "'ISII 

wiU n<>1 be "",minable. lhe i, lift 'JXUls wit!"" rclalivdy .,holt .• nd lhe) "ill <'cnlWIllr ",quit.: m ... h 

a<ldil;nn.1 (""dinS-I<> ooSl"'ol IInprooucliv<'ir 10 d('COOlmi.,'on? 

II w""ld "'.l~' f.r nlore ..,,,'" 10 cronic ,·alll.lbk lrutg-Icm'jobs and 10 f"'l~r "''' nOlio,,', ("lUre 

«o"omic compelili,·o"ts. br building ,mall gas or cOllI·f,red plants wilh Slal<'-<lr·th.,..n f,IIO' a,ld n,her 

clean-c,,,,,!!.y I«hnol~' ci"", to I""i, prospecti,." ",a",,,,,. II hile .Iso channe ling $<lm~ """"'" fUlld;IIS .0 

othe, f""no of truly gr..,,," enorgy . • "~h as ",la, 1""' .... Subslanlial funding . llQuld ai", be: earman.:ocl for 

m<Jd<omitinll"'" ""unll)' 's oUl clall"<i i"flllSlruel"",- incltrJin,g ru;d. and bridg <"$. 

In oon,lu.ion. I urge >""" 10 P<"fr""lIenlly ~nd Ih< Production T,,-x (",«lil and any ;,lilt', r~d.t!ll or ;,tllr. 

<ubsi~ for illdus!r~' 1 wind ene'!:)·. On bIo lanc • . illdust,ial \lind ent'll)' is tiOT,g1"llt'n and should not be 

propl"'d up with any Funner t~xpay 'dolla~. 

Than" )"<>u wry m""h for your con.lderollon. 

SI"""",ly. 

Lcsli~ W~a ... r 
697 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.633

l""I; ~ Wea,'", 

15 Chnrles S! .. Api. 4G 

N~w YOlk. NY 10014 

TcI ~ /<,117) 1>92·117<) 

~m~il: lwe3wr<J9@hUlm"il.<Qm 

TOll~ dhntin" MUc3riny on Cenain I. ~pirin, T3~ I'l'Ovt<iQIU' 
698 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.634

LM W'NWD PO ER 

- UI Win" Po_f, • ~1KiIrt;I wind pro/<K:I ma"ul.r;/u,,,, INoSfKI .. Granc! Forie" Nor!~ 

DHD~ urges Conf/(QM 10 eXIe'lll rf/8 wind -.pf prodiJc1Jon 1M cre,N (PTe) as qu/cit./y lIS """". 

0uI oomp6fIy n.s 0_ 500 ..,,~s and is /4CIng .. 00" ,,' /he _ Df 1M)'Hr. It! I'/OYember 

OUr ~ r>tml!OeJ$ WIll .6(/tlQ> II} .'mosl IIOlning We ",'I r.a"" 10 lay 011 1I<J1p1OyH.<. W. 

nave f<>I/ghI Oil..,.. Hl99 10 k""ll G .. ",o FOlks, a "'8~", pIac& 10 00 bwinlos •. W .. "'" !he nll!13hp 

~n~ 01 LM Wind Poweor mAllUlaC1\11 'ng ~ arOllr>(l !he world. W, n"IIe l8iwn "'" local oompal'lY 

,,"'" • (:11511 negaliva POSitIOn II )'IIa .. ago to IMIO!I prO<kJOet In IN! """"l. Wa ""Y&IOugIII85 

local Gland FOlks """"""Ill I<> briflg PI"" 10 I/lII """"'''''01'/ IlY<xJQn IocII in~"""""" 

OUr primary cus!Omer is" GE, arlO ....." tIlII o.>r1Ce.rtam1\l 01 1M PTC', turUtVl. "'" I4W ~VfI VIIrY lilt,. or 

",,'hlrlIlla se~ .. a;.., US. WhllIo wInd .. "'<I c1tIVfJ/opmenIIICt1I'iI)I a"d IosI6il<1 rtJ<Jih;ct1nrJ "'" 

"""_'" _1lIe/J 10 /fId/a .M ctWIa, 

I petSlJN/I)' WIIK" ""......,. <illy MfIiInrI pro<Jd 11>;111 am conl,1/,,,ie '" ''''' "'n"",abll! fNl8fIlY seclor. 

I und6rs'/illd ''''' Dudg<J{ '"'1<19$ _(<Oct! Q$ " """"If)'. / /U" ",mly beJffl"~ IMI. QIVerse _rpy 

{/Orl/Ollo 'Ot 1M "''''''1fY Ir. In ~"our />PSI "_. VOtJ /Ill"" rNOb/IbIy _rclWS "'IIum,n'" lot. 

/Uot .. ""led 10 "",100 "'I'" )'00 IIMrd N Imm _ . s NotIh DakOUl rm;lde<>I ""In 4 I<kJs s'lda joIJ rt> 

I!H». w. S/""'91)< urg<! Ilris """" '"~""!<1 itnm(odI.r.", lake lIP . n ~r_"" oIlhe wt"Id_'l1l' 

~,a tn<ln. 

D .... " Pouloon 

~ .. _ ,....11"s."""a.E""""''''''''1 

Hu", s.y 0\. Eo""on_ 

1.1 .' 1O • .'reo.lP!I,1I "" ll01~!I46: 

'J'~_",,_ O><I! 

LM ¥Vln~ Po,... 6"~" 

1/01".nIjpou'<OII\ 
699 

Statement of Local Initiatives Support Corporation 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.635

A},RIL 26, 2012 HEARING ON CERTAIN EXPIRING TAX PROVISIONS 

Subm Itted on May 10, 201 Z 

Local lnilialivcs Support Corponuion (U SC) is a nation81 illlennediary community 

del'elopmcnt financial institution founded in 1979. Our Inission ~ 10 build hcahhy. 

SUSlaillabh.: ndghoorhoods Ih~t an.' "communiti es of choice": good plae\.'S \( ~ work, do 

busim:ss and mise children. We are pursuing this mission through BIii/diIlS SII$faimlb/e 

COmlllu"ili"", (Sse) - a t:l'l;('\ed, comprehensive sl.r.lI~ gy to transfoml whole 

neighborhoods by 1K:hi eving fi ve inlerconnectcd gonls: {I) c.~panding in\'e~tm nl in 

hOll.~in g and other real cstme: (2) increasing family incomc and weahh; (3) stimulating 

economic !.lcI'clopmcllI; (4) improving aeccss w quality eduemion; and (5) supporting 

hcahhy environments and lires~ cs. 

USC nflen relics upon suppon f/('lm redera l programs to engugc in the tyre of 

cOlnprt.'hcnsil'c communil), development work th;11 is nCl-ded ill w~ineome 

communilks. and IWO oflhe mosl criticall(lOl~ 1113\ SUP[}\)I't our dTorts arc Ih~ N~II 

Murkels Tax ~dil (NMTC) an!.l lh(' ,~ l!1cOJ)1c Ho using ~ Crtdil (LIHTC). 

New Markets Tax Cr£dilS 

Through 20 I I. Lise has placed S645 million ofNMTC invtilmcnlS in 66 difTerent 

businesses alld real eSlate projct:1S, helping 10 develop or rehabilitate 7.25 million sqllare 

fcCI of cOlnmerdal :tnd cO!11munily space, an!.l supponing Ih\' cre~tion or relel1l;OI1 of 

17'()OO jobs. The NMTC c,xpircd in 2011. and il is cSSC!11ial Ihat ;1 be mude a permanent 

pan ofl11e tax code. 

The NMTC provides an incentiVe ill thc form ora la:.. credil for investors to make equity 

investmcnts in U,S. TreaSllry-ccrtilil'd COlllllluni!), Devclopml'nt Entitit!S (CDEs). which 

in lurn !.leploy the capi\alto support businesses ,1I1d rcal estate projects in low-income 

conuntmities. The cred it totlilii 39 percem of me investment 3.InOun1 and is" c1l1imed over 

a period ufseven years. The NMTC has pro\'CllIO be a ,'ery successful program, on a 

number of fronts: 

I. NMTCs lin' re pon i\ e to. market needs. lJ nlik~ other programs which lire 

narrowly targeled, NMTCs support a brood range of community rcvitalil'.alion 

efTons, including: hl'alth cure ccnters in me!.lically undcr.;crved 3rcas; public 

chancf schools :lnd eili!dcare facilities; grocery Slon:s in food desens: athle!ic 

faci lities thai he lp reslOI"C dangerous. deterionlting parks: and mmlufaeturin,g 
700 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.636

Facilitic:; that rdul1'l \;oodjobs to disim('st<,d arclI$. LlSC has rund~d tht.'Sc \ypt..'S 

of projccls ~nd many more oince. relail and mixed·us.- lacilities, as weil as small 

~nd mid·siT.cd bu.sinCSSC5. Whlll~yer the needs of the low-income communit),. 

USC has used NMTCs 10 respond. 

2. ~ fO!l1pctition for credib produces !wiler outcomes. CDEs mu.sl apply 10 

the Tn.v.lS1I1}" I).)pllnm"nl fO( the Ulllhority IU provide ta.~ cr"dits to tll"ir in ...... stors. 

and the competition is incredibly fierce. In 20 II. 314 D"-~ rc<jut.'SK'<l a t01al of 

$26.6 billiun in allocation ~Ulilority , or ovcr c' t.'IlI;m<'S Ill,' $3.5 I>illion Ih~1 was 

nVl.ilahlc For ~lIoc<llion " Only 70 CDf . or less limn a quaner ofth" applicanl 

pool, were si."lectcd 10 re..:eiye awards. Due 10 this intense cumpctiti"lI, only 

those entities ~t mluitto achie" ing ~r1ain t~"Imi.'S ft.i!: .• targding c"erd~' 

distressed eonllnllll;ti<$: olferillg significantly preferemilll rates and tcnns 10 

borrowers: deploying additional funds to low· income communities) and have II 

strong track n."Cord of IX'rtonnancc receive an allocation. 

3. T he truetur" uf the .. r edit lI o ... s ror pffici,,"t program dmi"i tr ti on . 

Ralh~r th;ln underwriting and approving sp • .-dJic tr~I1>.:l<'lion s. the Treasur)' 

kpanl1l~nt underwritCS thc quality ofthc CDE.and then alio",1; CDEs Ihe 

flexibililY to idrntify and fund ilu: projectS thm willachiel-'e the dual gQIIls \)1' 

revimli 7,ing commllnili<.'S while olTering investor> sufliciL'11t TCtUIllS on their 

inveslments. Funhcrmore, thl' luV.:!itOrs provide rig(\("oll5 due diligenc,' 311d 

eumplilUlcc monitoring.to ensure Ihal the COH's use of proceeds i. in e(mlplian~e 

,,;th Federal regulalions. The investor due diligencc di.'it;nguishes tax cr<'<lilS 

from fl'deral ~rJm programs, and r~'5 ults in 3 mure robu~t ~"d dTicknt 

e<lmpliancc monitoring s"st~m. 

4. NMTC$ impact the ha rdest hit communities. Whil~ a ll NMTC ;nv,-,stments 

must be mudll in low·illeome c"lmnunities, the vast major it)' "f investments have 

~en madc ill communities characterized by ~ c.:onomie distress. In 2010, 

Ihe most recem year I"'r which complete data is ayailable. 72ll'"rcem ofNMTC 

im"esllnl'11l5 WefC nmde in colll1nunitit.'S "ith a povcny mte of j!.rem~.,. than 30 pcrc~nt. it median Filmil)" ,ncQnli"! at or below 60 ~rc~!Jt ol"the 3",a nI~dilUl, or i1n 

une1l1plnymc1I1 r.lle at lea,t !.5 lil'K"S the national awrage. NMTCs counect 

directly to quality orHf~ gains in plact.'S that have lon.g known only disinvestment 

and d~djn ... 

5. NMTC, create jobs ror low·income comnmnity residents, NMrCs repn:sc1l1 ,I 

isnifi~'ant, Sl1ccessfuljob cre:uioll progr~lIl . USC's NMTC a!lOC'~lion ~Ione has 

helped d~,dop :som~ 17,OtlO jobs tlt,l\ ol herwise would nol c);.isl ;0 thC-!ie 

commu"ili .. -s. With NMTCs. w~ ..,re;m, te~clting po~ilio"s as we SUppllf\ "ewand 

expanded educationa l lilcilitk'S. We re,"it31!Z\' commereial ~"Orridol'1> and fuel 

commerei'll and relail jahs. We fund redevclop..--d industrial brownfictds 10 relurn 

land to prodl1cti-'e uSC for ofli~o;, warehou,es und new mnnufacturing V~1l111res. 

And "e -support the "ide range of conSlructionjobs ""OIIOCC[ed to developing all 

, 
701 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.637

oflhc~e projC~IS. Tholl ha~ been particularly ~rilical given the de<:linc oflh .... 

building induslTy duri~ Ih ........ o;:~n l recession. 

6, NMTC ill' ·s l.n~nls ... oult! nullikcly hal.peo irno! (or Ihe n-edil. Th .... GAO 

rcpon~d Ih31 ~n eSlimaled 88 percenl ufNMTC in"eslors Sllid Ihallhey wuuld nul 

ha\'c mtlde Ihe .same inl'cslmem "ilhQulth~ Nil.ITC. and Ihal 69 pcn:CIH of 

inv<:sIOrs had nul previously made ~oy ilw~5lmenlS in Ihese Ctlollnuollies. 

The NMTC has proven 10!)., ~n c. .. o(lremcly rf~oclive t..:on.,mic developmenl tool, ,\ , 

Cong"''''' considers m~ki"g clml\g('~ I" th~ laK code, II needs lu place a high pri.,ri!)' un 

enSUrinJ!.lhal lhis crilical program is pcm.ancnlly authuril~d. With Ihc ct'rlainly of 

I"'rrnan~nl aulhori~ation. Ih~ comp.:litiQn for Ia.~ cr~'tIi s will b...'\:umc. ~vcn stronger. as 

mort Df,~ in~esllhc lime U1)d en~rg:, inlo I"'rticipaling in Ihe prognlm. rhi~ wiJl I~ad 

10 an eVen higher ql ~1l1t y ofbusint.'SS slMcgies and funded projecls. Similarly. program 

pennanen.-y ,,!II ali<O Urilw more invCStors 10 the pro!Y'l'm. which ,viii ""ul1 in higher 

pricing ror Ih" c~it amI. ~orwequeml~ llf"ar('r subsidy ~vaitab e ror N:..rrc pmje<:lS. 

Thi~ will enable more projecls \I> be [jnm\C~-d in tlislresscd cOmnll",ilks. Finally, \\ilh a 

P<'nnan~nr ~uthoriz.ation. Ihe Tre:tSul)' Departmenl cuuld consid~r addilional progr"un 

inlpro' Il\~nIS (such 1U la'l!.~r. multi-yell! awardsllhnl will add st.1biliry 10 nn lIppJk:l\i<l1l 

process lhatcurrcntly Call1lQll:uarnntcca'''ard~ beyond a ~ill~!e )"o;'ilr. 

Lise has mad ... wry .:IT~"'li~e u,eof NMTCs. We haw bc.:n in lh~ bu_~ir1l.'ss "rhuildin~ 

susla;Mblt cummunil;los fur u~cr 30 years. and NMTCs ar~ by far lhe be'St rool for 

bringing aboUI Ihe kind of cumprern:ns;vc cummll1)ily devciupmenl Ul.IIComl'S Ihal arc 

necessary IQ lurn communities of dc~pair inlO communiri~s of op[lQrtunity. Congress 

should m~k~ sure Ihnlthi, program bceomes II pl'mlUncnt part oflhe tllS code, 

Low locume Hous;1l11, Tax Credits 

Another major 1<l<lllO build sustainable conlmunilics is Ihe lo\\ ·!ncome J IOLisini; Tnx 

Credll pmgmm, which has 1 ... 01 to Ihe oollstm~lion and renovation of2.5 million 

affordable apartme nts since 1986. 

Forton:,rdy, rite II",usiog Cred;t i$ pcnllancnl and dot's not ne~xllo be c)ilC1!d~'tI. 

Iln\\e"eT. R provision Ihal was en:lcted in 2008 that modifies the formula used to 

calculate Ihe maximum amount of credits that states may allocate to a pal1kul~r 

properly e~elopme\lt h,,1S efiCcli"cly expired this ntonth. and should be' po:m.Jncnlly 

~lendOil. 

Under legislation cn~ct ... d in 2008, the minimumla" nedit alnuuni under th ... 

formula is nine percent. This provisiun expires for properties pla~d in service and 

rented 10 ten3nt~ beginning after 2013. Although this is technically a 2013 expir;11g 

prOVIsion, It is effectively expiring right nOw Iwrause a property rec ~lng 3 Housing 

Cretlit allocation this month must be underwritten on the assumption that 

construction will not be com pleted before the end of the next year, As ~ practical 

matter, it just lakes Ihal long 10 plart fi.n~llce and build multifamily housing. 

3 
702 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.638

With the effective e~piration oFthis provision, state lIousing finance agencies must 

ft'duce tile amount of cft'diLS that C<ln be allocaTed to specinc property 

developments by about 18 percent. This will m~ e it mo'-" difficult to develop 

iltlordable lIouslng.. even more so since other federnJ. stEile and local subsidies that 

support the development oFrettlalllolising are being cut significantly. 

This Issue is addressed In H.R. 3661, legislation tllatthe Cllair and Ranking Member 

of this Subl'ommittO!e introduced last year, tltat would e~tend the nine perc~nt 

minImum credIt indefinitely. 

When CUllgress cunsiders legislation to extend tht' tax provisions whiOl expired at 

the end of2011. and thatwlll expire,,! tile end of 2012, It should include an 

extension oflhls Housing Credit provision . 

• 
703 

Statement of Lois Grossman 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.639

My !lame is Lois Grossmao, I live in Medford. Massachussetts. Th~reare two solar 

paoels 00 my roof that I instJlled wlth a special matching grant from the company 

tenyears~go.lfl had not had that matching grant,. I could not have Mforded to 

install the panels. In tllesl.' days of heavy subsidies to oil companies, I urge Cngress 

not to forget the rest (>f us. One way you can help is by extending th produ(lion t3~ 

credit for wind as quickly as possible. It is my Intention to Install a wind generator 

on my land within a few years. If the governemJJt does not lend a helping hand to the 

wind (and solar, tidal and geutherm<ll) ind,[stry, I will not be able t(l l<lke advantage 

of estahlished !echnology, which Is always less expensive than eKperlmental 

technology. Please move wind ellergy into Ihe "established" sphere. W~ will nev~r 

break our tluhealthy depeJldenctl on fossil fuels ifyuu don'tact nuw, 

Thankyoll 
704 

Statement of LORD Corporation 1 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.640

May -4. 2012 

The Honorable Pal Twen 

Cheirman 

SYbcommittea on Setact Revenue Mea~res 

Commmee on Wa~ and Means 

U.S. House 01 RepresentaliVe& 

1102 Longworth House OffICe Building 

Washington. D.C. 20515 

Dea, Chairman Tiberi' 

C/IIoimIIIl R!chlrd l ~ 

. Jil__ CNH! CEO 

LORO Corpo'~ "'" 

I I I Lord 0...0 

(;"'"1 i'IC U~II Us.-. &''i-C68-5919. Eo!. 522e 

!IOO-~'4 ·2 e.s~ 

F" 1I1~6!J.St311 

tnollil. ,"* ................ CDOtt 

LORa Corporation. aleadiny supp~a' 5erv,ng tlif!'v;,nd anergy Industry basad in Cary. NC. urges 

Congress 10 oJ"'nd the w,nd eneTgy production lax ~redit (PTe) as quiCkly as possible. 

LORD Corporation is a diversified t&chnolOgy and manufacturing company wilo a long history of 

developing breakthrough adheslv". coaUng and motion managementt""hnolOgies Ihal .s.lgnif,cantly 

imprO'le the performance of cy, customer1;' products We have provide4 innovative 5Olu~ons to 

demanding en .. ~y industry cus\oma, problems fur d~cad"". We provitl" value to oUr customers 

through product deiign. process engineenng as well as improved producl performance. 

Currenlly. LORa IIXpects 10 ship $2.5 mi llkln in produot 10 support wind energy devalop;l'lllin 

2012 That figUre could grow 10 $6 million next year. w1lh a Iolal pipeline of $10 mil lion over Ihe 

ned several years This represenls new lechnology developmenlthal is driving innoyalion in Ihii; 

imporfant industry-and job crl!!!llion. 

Wilh tho uncertainty rega.dirtg the PTC's fulure. we arl! already saelng a reduction'~ ItW 

comm~menllrom ou. wind energy cu~tome's Withoul an ""ension 01 the PTC. LORD willlik,,1y 

stop fJ1 a~ing t"vastmems in new wif)d ene'Qy·,a1ated {EtSearch and develop",,,nl and w.1I ~sa 

reve~ue on Il\I!se e.pected sales 10 OEMs. We tire just ol"le of It>ou5illlds or suppl~ in II!IS 

induslry. and we a.e already see1flg ~ negative impact Itoat could resull in job loss due 10 the 

unoerta,nly surroundIng whether the PTC will be ellended beyofld 2012. 

There/ore. I strongly y,ge!hIs o;Qmm~e 10 immediately UI~e up an ellensioo 01 the wind energy 

production ta. Cfe-d~ . 

Sincerely, 

~ t!. 11I:1ke.. 

Richard L. McNeel 

LORD Cor~rallon CMI'miin. P~Id(tnl and CEQ 
705 

Statement of LORD Corporation 2 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.641

The Honomble Pal Tiberi 

Cha,rman 

Subeomm,(1C« on Sde<:t Revenue MClIsun:s 

Commiuet> on Ways and Means 

U.S. Hol.lSc ofRcpn-scnt.lti vcs 

1102 Longwonh I [ouSt: Office Building 

Washington. D.C. 20515 

[karCh"onan T,beri, 

MlIY 4. 2012 

LORD Corpo,."t;on. a I~ad,nssllppli~r s~r\- i~ th~ wind ~n~r~ indlJ!ilry ~d in Cary Nonh 

Carolina, "rg~s Congress to cXlend lhe wind ene'!,)· production lax .. redil (PTCI as <tuickl)· as 

poS/;ible. 

LORD Corporation i! a divers,1icd lechnolo!!;)· snd manufaclurillS company wilh a lon8 hislol)' 

ofde~dopins breaklhroulft! 3<lhe.ivc. costing and 01OI,on managemenltedUlolol:lics lhat 

significunlly improve Ihe ~rformancc of ourcu5tomcrs· products. We have pro i~d ilHJO ~tivc 

solut;ons 10 demanding ene'1O· industry customer problems for decades. We provide "alue 10 

our cuslomers tlirm,gh p(()duCI dcsiWt, process engineering as well as improved product 

perlormance. 

Cum:ntly. LORD c~pccts 10 ship $2.5 million in product to suppon wind ellergy del·dopers in 

2012. That fig~re could Sr(,w to S6 million next year, with a t01al pipeline of$ ll) ",ill,on o,·er 

the ""XI s"vernl )ea",. This n:p",senl~ "" .... lechnology devdopm"nI that is driving i"'JO,ation in 

Ih,. impllrlant ,nduSlI)'_ nd job creill;oo. 

Wilh the unccrtDinty regarding the PTC·s future, W~ ~reulready seeing a redU<":tion,n the 

commitment from our wind energy CU.'Homers. Without an extension of the PTC, LORD will 

likely stop m~king investments in new wind cncrgy·rel~t~d r<'SelIr.:h and dc' IopmcntlU1d will 

lOOt: rel'cnuc nn thew e.\p«tcd r.nles to OEl>ls. We nrejllSt on.: ofthou!-ands of suppliers in Ihis 

indusuy. and W~ ure aln:ady s~ing a n~g;!li\'e in1p:1"llhat cOI,ld result injob loS/; due to the 

uoce",1imy surrounding whether the PTC will be c~tcndcd beyond 2012. 

Thererore. I strongly u~e Ihis co""ninee IQ immediately t~h up nn e~t~n ioo ofihc wind en(rgy 

pmduction tax cwjit. 

Sincerely. 

jonathan R. Kl,ne 

Director, Accounting and COI"p/lmte Co tmll~.,. 

LORD COlJlOration 

J J I LORD Drive 

Cary .NC27SII 

Lon~)'; in ~onJ·co ll\ 

(919}468·S979 cxt ~ 14 
706 

Statement of LORD Corporation 3 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.642

Th~ Honor.lblc P3( Tiberi 

Chirman 

May~. 2012 

$ubcommi(K ... • on Selet;t Rc"~nue M<."dsn!'t'S 

Commin~~ Un Way$ :md M~arl5 

U.S. I[utls(' uf RCl'rl"SeOtali,'cs 

1102luogwo"l1l1ouse omc~ Buildil1~ 

Washinglon. D,C. 2{lS15 

tk~rCh:Jinnan Tiberi, 

l-ORD Corpot'"~tio n. a IcadiullsuflPlicr ...,ro,·ing tll~ wind ~nL"'l:..v indUSlry I;>a""d ill Cary. No"l, 

Carolina. urges COn!\r~S5 to cXI~"d lhe wind cnergy production lax credit (I'Tel as quickly as 

possi .. I .... 

LORD Corporation is a di\'~.,;ili~od technology and manufacturing co"'pimy " 'ilh a long histol)' 

of dc, doping breakthmu)jl adhesi"e. matinJ!.and molion m3ruJ1\cmcnt lechnuJollics lhal 

~ignili'::3 Jltl y improve the performance of our customer,;' pn'lllUCts. We hllW pmvidcd innovnti\"e 

wlulion. 10 dcmandin1\cnergy industry cuslomer probl~m3 for decades. We providc \':II"" 10 

our eustomcrs Ihrough produ.::t d\!sign. procds enginc<'rin!!, as "ell as imprm'cd product 

perfonll~ne~. 

C" ...... ntly. LORD e.\pects to ship $2.5 million in pruduCllo SlJppon " ind c.lC:rllY dc,'cloper,; in 

2012. That1igurc rould gm" to Sb million ncs~ycar." Ilh a t01al pipeline 0[$10 million ",'cr 

the next ~"crul ycars. 'nlis reprcosents n.:w l«h'hlloJ!.} del'cinplIlenl 111111 is driVIlig IlIum'Rlion in 

lhis iml"'rtlilt induslt)'--.md}oh c,..,al;IIn, 

With the uncerwinty regarding lite 1''rC"s future. We arc alr~ady seeing a l"I'duct;lIo in lite 

commitment from IIU' wind energy "t~~tOl\ters. Without ~I\ e~lell~iou of the PTe, I.OR!) will 

likely stllp making investmentS in new "ind energy,""l~",d ~arch and d,,,,,..,l<lpmetll nod will 

I~ ""Wll~ 0I1lhese cxp..'Ctcd sal~s to OEl'-h. W~ arc just on~ oftlto"sands (If supplicn; inlhis 

industry. and we a ..... already ....... ing n nCg:lti\'e illl!,,1Ct lhat could result injob los> dUl" tn th~ 

uncertainl)' $urTounding whether ,he I'T(' will b<' e~,,,,td,,d Ix:yond 2012. 

Th .... efore,1 strOngly urge this ~on mitl~ to imnt(odinleiy I:lke lip un e~lensiun oflhe wind energy 

productiollla.X credit. 

Sinccrely. 

SI(\'e Ilrock11lao 

Sr. Man.1gt!r 

LORD Curporalion 

I II tord Dri"e 

Cary_ NC 27511 
707 

Statement of LORD Corporation 4 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.643

l\'lay4.2012 

The Honornble Pal Tiocri 

Chainmm 

S"bcOnlm;ul'" on S<-kt:1 Re venllt' Measures 

Cl'Innliucc 011 Way~ and Mc;'ns 

U.S. Huuse orRcpresent~tives 

1102 tongwonh IlouS" orfice Uuildinl:, 

Washington. D.C, 20515 

DearOl3innan Tiberi: 

I.ORD Corpornlion. a I~Bding s upplier S"rv;nl; Ihe wind ~ne®' industry. botscd in Cary, Nonh 

Carolina, urges COIlJY1'SS 10 ... ~I~ ,Jd th~ wirnl cuerv' producti"" la.' credit (PTe) as 'Iuickly as 

possibl .... 

I.ORD C'orporntion is a diwrsilied technology and manuracturing com!",ny \,ith a IOflg history 

or dc>'elopinll b",~kthn~ugh adhc$ilc, cOIJtinfl ~nd mOliUfl mnmgcment t~hoolnllic" Ihal 

sig.nif"::Hnlly lmproVl.' Ihe pcrf0n113llCC or Our customers' J'foducts. We hal'1:: provided innov3ti~ c 

""luI inns In w:mlllldins energy lnJ\l'itry ell'itnmer problems for dl'<'aitcs. We prnvide value 10 

OU, CUSlOnl~'TS Ihrou~ product desijln. proce§s cn!!;necrin!! us well as impro\'ed prodUCI 

pcrfonnBncc, 

CUlT,;ntly, LORI} ~pccB 10 ship 51.5 <11illion in proouCI In suppon "ind enerl!~ d,;ve!0pcrll in 

20 12. Th.11 figu"" could grow 10 $6 mHlion n~.~ t ),CMf. w,lh B Imal pipcl,nc 0\'$10 m,\li"n ",-Cr 

thc nexl se\lcml ycars. This- reprC>oCnll r>CYo' Icchool')g} dewlopmenl Ihol is dri i"~ inllOI'Olion in 

this imporlanl irl<i"stry- :mdjob cre~l1on. 

Wilh Ihe urn:erlainl) reWlrdin~ I~ PTe's fl,lllre. we arc already see ing a rroueliun in Ihc 

cnmmilmenl from oor Wind energy '~\IOmCB, WilllOlll nil c)<l<'n~i on of Ih~ PH':; LORD will 

likely SIO]"> making in\cSlmCnls in nell' wind cncray·relmro rc~arch Dnd de\'c!o]">nlcnt and wil l 

lose "'''cnne no Ihe>e expe<.:led sak~ 10 OI s, We are jusl 0"" nflhnusalllh of surr!lcrs in Illis 

induslry. nnd we ~re aif'eldr ~ing a n~g;l1i\'e impncl Ihal could result in job loss due 10 Ihe 

IInc~rtainty slIrro\IIJdinll "helher Ihe f'TC will bo .. ~tendeil be)ond 2012. 

Th«erore, 1 strongl)' urgc Ihis com",illee 10 imnlC<lialdy tu~~ up an c~lcnsjon ()flhe wind cn<'fg)' 

l)lQ(!uclion IllS credit. 

Sincerel),. 

Wanda Ymlll!' 

LORD C"rpo"~li"n 

III LIJfd Dr. 

Cary. North ('a""I;na 275 1 I 

9 19-468·5979 x 6]11 
708 

Statement of LORD Corporation 5 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.644

Th~ HOl1or.lblc P31 Tiberi 

Cllllirmall 

May~. 2012 

$obcommiIK ... • On SCIct:1 Rc"~nue M<."dSI1!'t'S 

Commiuet.' on Ways and M~ans 

U.S. \lous,' of RCl'rcsenlali,'cs 

1 102longwonl1 1I0use omc~ Building 

Washington, D,C, 2(l515 

tk3rCru,irman Tiberi: 

l.ORD CO'1""""~lion. a Ica<lingsupplicr scro,'ing tll~ wind ~nL·'Il:..v indUSlry I;>a""d in Cary. N.I;. 

urg~s Congll'SS 10 ex{~nd (he wind [""''1:0.'' pmdtl<;lion 111.'( cl1'<li{ \I'Te) 3 $ quickly as possible. 

l.ORD ('o'1"'""ion i~ a div~rnir,cd Icchnolo[!Y and manutaclUringcompany wilh a long hislory 

ofdc\cloping bn:3klhrough adhe,i,'e, COOling and mollon management Ic"<:hnologics IhIIl 

significamly improve Ihe perfonnance of our cU~lomcrn' prodllcts. We haw pro\'ided innovative 

,;(>hll,l)nS 10 demnnding c""'g,y i!ldu,;lry customer prolllcms fbrd<...,add. WI.' pl\widc ,-aiOX' to 

O<Jt cuslomers throul:'h product de,is,,- pro,: ... ~s engineering as "el l as improvC<! product 

pcrlilmtancc, 

C\,m:-nlly. LORD e~pccls III ship S2.5 IltlHion in ptoduel to ,uppon WInd CI1<."rg)' dC"el,)pcrs in 

2012. That figure co"ld Wow 10 S6 million neXt j'eM. wilh u 10lal pip" i~ ofSIO million O,'cr 

Ihe lie'\! :IC\'C("'~I years, '111'6 ~prcscnls new Icchnolow dC\'clnpl11clll th'll Is driving inno"BliO<I In 

Ihis importanl induSIl)'--1lmljob erea)ion. 

Wilh I~ ulleennimy regarding lhoe lyres fUlu~ . "'~ ~re already roeinj!. a redutl;no in Ihe 

commilment from our "inJ energy 'U~lonlcrs, Wilnoul Qil extension ofth~ PTC. LORD will 

likely 510p making in\'e>lmCIlIS in neW "ind energy·rdated ~ ... reh and dCI'I-'lopmem ood will 

lost re,'cnuc Oil Ihcsc cXp""I~d >aks I() Oi!Ms. We are jusl on~ oflhousaods of~upplie~ in Ihis 

ioouw),. and we are al",ad) ~in!! a ""g:ni\'e impatllhat could result injollioss due 10 tllc 

uncenoinlY slllTl>unding whNher the I're will b<" ~"'ttded beYQrld 2011. 

Therefore, I strOllgly urg;: thi~ cl)mmiUec tl> immooiatdy tuk,' up an eXlension Mtl\(, wind cner&r 

prod""liont:l.~ credit. 

Sin~c,-d) , 

JdTrey Iluaron 

LORD CurpomliolJ 

I I I lord Drive 

Cary. N_C. 27511 
709 

Statement of LORD Corporation 6 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.645

Th~ HOl1or.lblc P31 Tiberi 

Clmirmal1 

May~. 2012 

$obcommitK ... • On Sclct:t Rc"~nue M<."dSI1!'t'S 

Commiuet.' on Ways and M~ans 

U.S. \[ous,' of RCl'rcsentali,'cs 

1 102longwonl11I0use amu Building 

Washington. D,C, 2(l515 

tk3rCru,irman Tiberi: 

l.ORD CO'1""""~tion. a Ica<lingsupplicr scro,'ing tll~ wind ~nL"f\!,Y indUSlry I;>a""d in ('3/'y. N<':. 

urg~s Congll'SS 10 ext~nd thc wind [""''1:.'' pmdtl<;lion 111.'( cl1'<lit \I'Te) 3S quickly as possible. 

l.ORD ('o'1"'""ion i~ a div~rnir,cd Icchnolol!Y and manu[acluringcompany wilh a long hislory 

ofdc\cloping bn:3kthrough adhe,i,'e, cooting and mollon management tc"<:hnologics lhut 

significantly improve the p"l'fonnance of our cU~lom rn' prodllcts. We haw pro\'ided innovative 

';(>Imil)ns 10 demnnding c""'g,y i!ldrn;\ry customer prolllcms fOrd\,cadd. WI.' pl\wide "alue to 

O<Jt customers throu.l:'h product desis"- pro,:,,~s engineering as "el l as improvC"<! product 

(1\:rlilmtancc. 

C\,rrcnlly. LORD e~pccis to ship S2.5 million in ptoduello ,uppon w'nd tl1<."rg)' dC"el,)pcrs 'n 

2012. Thal1igure co"ld Wow 10 S6 mllli!>n nCXlj'eM. wilh 0 10lal pip(::li~ ofSIO million O,'cr 

Ihe lie'\! :IC\'C("'~I years. '111i& I'I.:pl'\"C6Cnt> new Icchnolow di:\'clopmcllllh'li Is driving inllo"BliO<I In 

Ihis importnntinduSIl)'-1lmljob el'l.:<11loo. 

Wilh I~ t"leennimy regarding thoe I'Te's (UHlI'(". "'~ are already rocillj!. a re<\utliDll in the 

commitment from our wind energy 'U~lonlcrs, Witnoul un ~xtellsion Oflh~ PTC. LORD will 

likely ~t'lP making investments in neW \\ind energy-related ~ ... ~h and dC\'I.'I'lpmem ond will 

lose re,'ciluc 011 Ih~S<' e)(ped~d ",k~ \0 OI!Ms. We are just one oflhousaods Qf~upplie~ ill Ihis 

induw),. and we are al",ad) ~inl! a ""g:ltiv~ impattlhat could result inj'lb loss du~ 10 the 

unc~noinlY slllT!>unding whNher the I'r e will b<" e~u.ttded beYQrld 2Ull. 

Therefore, I strOllgly mi',;: thi~ cummiUe~ to immooiatdy tuk,' up an I!.'(\~,,~ion oftl\(., wind cner&r 

prod",,[iont3.~ credit. 

Sin~crd) , 

Kristoph.r J Bur.;on 

I I I LORO Dr,Cory. NC 2151 I 

LORD Corporation 
710 

Statement of LORD Corporation 7 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.646

Th~ Honor.lblc P3t Ti!Jcri 

Chirman 

May~. 2012 

$ubcommitK ... • on Sclet:t Rc"~nue M<."dsn!'t'S 

Committ~~ Un Way$ :md M~arl5 

U.S. I[utls,' uf Rcprl"Seotali,'cs 

1102luogwo"I1I1Quse amu Buildil1~ 

Washington. D,C. 2{lS15 

tk~rCh:Jinnan Tiberi: 

l-ORD Corpot'"~tion. a IcadinllsuflPlicr ...,ro,·ing tll~ wind ~nL·'I·¥..v indUSlry I;>a""d in (,31')'. N<':. 

urg~s Congll' S~ 10 CXlend lhe wind [""''1:..'' produClion IIl.X ol1'<li, (PTe) 3S quickly as possible. 

l-ORD Corpor.uion is a di"~l'S ir,cd Icchnolol!Y and manutaclurinl!.compan), with a long history 

ofdc\clopinS bn:3kthrough 3dh",i,',,-, coaling and mollon management tc"<:hnologics lhut 

significantly improve the perfonnanc" of our cU."lomel'S· products. We hH"C pro\'ided inno\'alive 

,;ollllilms to dcmnnding cnN£'.Y ioo",;lry customer pro!>l,,-ms f{)r dccad,~. W(> pnwidc ,-al .... 10 

rnJ. custome ... through product design.. prot.'C~s engineering as "el l as improvM product 

pocrlilmwncc. 

C\,rrenlly, LORD e~pc.:ls to ship S2.S million in product to ,upro" w'nd energy denl,)pi:rs 'n 

2012, That figure could grow to S6 million neXt),cM. with 0 10Iai pipe-line ofSIO miilion O,'cr 

tile neXI :li:vtral),cars. llli§ repres.cnl~ ne'" technology (1i:\'Clopmentth~tls driving il1110V~tiOil In 

ll1is impo"nnl industry--andjob ercMlon, 

With the 1I11cennlmy regarding Ihe I'Tes future ...... e are already seeing a reduction in the 

eommitmenl fmm our ..... ind energy n'~t0111crs , Wilhout 8" extension ofllle rTe. LORD will 

li~el)' 510p making inveslments In n~w "ind coergy·rdaled ~ ... reh and dCI'~ lopmem oml will 

lo:;c re,'cl1uc on these c)(pe<'t~d "'ks \0 OI!Ms. We are jusl 0,,", oflhollSl.lnds of~upplicrs in Ihis 

indll5l/)'. and w~ ure alread) st:<'ing a II<:lP'til'le illlpactthal could result injob l(>5s due to the 

uII<:~rtoinlY sUITOUllding whNhcr lhe I're will b<" es","ded bcYQnd 2012. 

Therefore, I $lrOllg!)' u!},'" lh;~ commiue~ 10 immooialdy luk,' up an l!.'1t~n~iQn oftl\(, wind ener&r 

pmd""lionl3.~ credit. 

Sin~c,-d) . 

A111I.'1\8 ThcOOomki) 

! II Loro Drive 

Car}"NC275ll 

LORO Corporatiol1 
711 

Statement of LORD Corporation 8 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.647

Th~ Honor..blc P3t Ti!Jcri 

Chairman 

May~. 2012 

$ubcommitK ... • on Sclet:t Rc"~nue M<."dsn!'t'S 

COl11mitte~ Un Way$ :md M~an5 

U.S. I[otls,' uf RCl'rl"St:nt3Ii,'cs 

1102lungwol1l1l1ouse omu Buildil1~ 

Washington. D,C, 2{lS15 

tk~rCh:Jinnan Tiberi, 

LORI) Corpot" .. lion. a l~adiHgsupplicr $l'rving lhe wind "ne'1l.v indUSlry t>aS<'d ill Eric. 

Penniiylvania. urges Congt"CSIllO e~lcnd Ihe wind e""I"ID' prodtl<'tion la_~ ~",dil (PTe) as quickl: 

as po$siblc. 

LORD COrpClrulion is H di\'c",ifled technulu!P' and manufacluring company with a Inn~ hist{)ry 

ofde,dopil1g break1hrou~h ;><;Ilresi"c. coating.aod mOlion ","nagemcllI lccllllologies that 

significantly improw the p"rr<lmr:"'c~ ufourcustomc",' prOdu"ts. We Im~e pr.",ided innOvmi,'c 

solutions 10 dcmandinJ,;,cnerg,)' industry cu.l0mer probl~",. fur decades. We pro"ide v:l1"" lU 

our "<I,tomers tltrou!!h prOdll<:t design. proccSll ~nsinccnng as ;,.,ell Q. i"'proved product 

fl"rfonnance. 

Currenlly. LORO eXiX'cts 10 slrip $2.5 million in product 10 suppan \\ ind en~rgy <ie\'clop<'rs in 

2012. T hatfigurc rould gm\\ to $0 million ncs~y.:;~r. \\ Ith a 100al pipeline of $ IO million <rver 

the next ~wr:ll )'cars. Thi~ repr~~nl~ n~'" tc.:l1nology del'~torn,,'nltll.'l is dn"ing in"ovation in 

this hn[XllUnt indusu),- ,m,l job creation, 

With the IInCCl1nilllY regarding tlK" PTC"s fimtrc, "'~ 3re nlr~ady ~cing 3 rWu~tion In the 

commilment from our "ind cne!)',)' customers, Wilhmll nil c~tcnSjOIi of the PTe. LORD will 

lik~ y stop making invcstments in III'W ",ind c'lI'rgy·rcla1<'d rl':l,,,,n:h and d"wl<lpmcm and wiil 

105C rc,~.Hle rn1th~ c~pc<:tC'd s.nlc~ to OEMs. We are just one oftlmusands of ~upplicrs in this 

indw;tr)'. and we arc IIIn:ady s""ing a negali,'" il11p<l"tthaL could r1'soh inj"" los~ du~ LO the 

UHlXl10inty $ulTOundilli! wh~thcr Ihe PTC" will hc e~tcndcd hcyond 2012. 

Th~rcfore, 1 strongly ,,~e th is conlllliut.'C LO ;"'IH,-di~ttly lake up an e~tension of the wi'nd en~rsy 

production ta ~ c",cl,1. 

Sincerely. 

Grorg .. ~1. Kic~cl. Director ESH and R~gularory Complinnc,· 

LORD Corporation 

:!OOO West G!,"JI"KIvi~\\ ' 31,'0.1 , 

Eric, PA 16514 
712 

Statement of LORD Corporation 9 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.648

Th~ Honor.lblc P3( Tiberi 

Chirman 

May 7. "2012 

$ubcommi(K ... • on Selet;( Rc"~nue M<."dsn!'t'S 

Commin~~ Un Way$ :md M~arl5 

U.S. I[utls(' uf RCl'rl"SeO(ali,'cs 

1102luogwo"l1l1ouse omc~ Buildil1~ 

Washington. D,C. 2{lS15 

tk~rCh:Jinnan Tiberi, 

l-ORD Corpot'"~(i n. a IcadiullsuflPlicr ...,ro,·ing tll~ wind ~nL"'l:..v indUSlry ~d ill Cary. No"l, 

Carolina. urges COn!\r~S 5 to cXI~"d lhe wind energy production 1a~ credit (I'TCl as quickly as 

possi .. I .... 

LORD Corporation is a di\'~.,;ili~od technology and manufacturing complmy with a long I\;stOI)' 

of dc, doping b",aklhmu)jl adhesi\'e. malillJ!.and mOI;on m3ruJ1\cmcnt lecllllQJo\l;cS lhal 

ignili '::3 Jlll y improve the performance of our eustome.,;· pn'lllUCts. We hllW pmvidcd innovnti\"e 

wlulion. 10 dcmandin1\ cnergy industry cuslomer probl~1Il 3 for decades. We provide v:l1"" 10 

our euslomcrs through produ.::1 d\!sign. procds enginc<'rin!!, as "ell as illlprm'cd product 

perfonll~ne~. 

C" ...... nlly. LORD e.\pecIs to ship $2.5 million in pruduCllo SlJppon" ind c.lC:rllY dc,'clopers in 

2012. Thal1igurc rould gm" 10 Sb million nc ycar " Itll a t01al pipeline 0[$10 million ",'cr 

the neXI ~"eru l years. 'nlis reprcosenlS n.:w l«h'hll oJ!.} del'ctnpmenl 111111 is driving 'IIIIO" Rlion in 

1his iml"'rtlll' indusII)'--.md}oh crcat;IIn, 

With lhe uncertain.y regarding the !''rC's fUlure. We arc already seeing a ",du~tillo in Ihe 

canrmi(mcm from lIur wind ~lIcrgy el~'IOl\tcrs, Wilhoul ~I\ e~lell~ioll of\h~ PTe. I.ORI) will 

likely s'op making invl'StmcoIs in O<'w .... iud eoergy·"'l~t.>d ~atth aod d""d<lpmcnl nod will 

~ ttWIl~ 011 these CXp..'Cled sal~s 10 01:1\15. W~ arc jus. n~ ofllto"sands of supplicn; ill this 

industry. and we a ..... already ....... ;og n ncg.:lti" e il1lp.1cIIl\m could result injo h los> d"," 10 th~ 

1I0ecrtai nt)' $urrounding whe,her ,he I'T(' will b<- cs,c,tded )'nn d 2012. 

Th .... efore,l $U'(mgJy urge (hiS conlmitlee to imnt(odintely I:lke IIp un eSlellsioll oflhe wind energy 

produc (iollla.X credit. 

S;nce~ly. 

Bruce R.llllllock 

Scuior Counsel 

l.ORD Curporalioll 

2000 W. Gr.uld, i~", Ilkd. 

Erie, PA 16509 
713 

Statement of LORD Corporation 10 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.649

Th~ Honor..ble P31 Ti!Jcri 

Chirman 

May 7. "2012 

$ubeommitK ... • on Sclet:t Rc"~nlK' M(."dSUrt'S 

Committei.' 011 Ways and M~ans 

U.S. II(.)tl5(· of Rcprl"St:ntali,'cs 

1102 1..o11},'",0"h lions<: Office Building 

Washington.D.C 2(l515 

tk~rCh:Jirman Tiberi: 

l"ORD CO!'f'O""~tio n. a Icadinll SllflPlicr ...,ro,·ing tll~ wind ~nL·'I·¥..v indUSlI)' ~d in Ma'1l"t~ NJ. 

urg~s Congll'SS to cxt~nd the wind [""''1\.'' prodtlClion IIl.X o",dil (PTe) ~ quickly as possible. 

LORD Corpor.llion is a di"~l'Sir,cd Icchnolol!Y and manutaclurinl!.company wilh a long hislory 

ofdc\cloping bn:3kthrough .dhe,i,'e, COOling and mollon management tc"<:hnologics lhut 

significantly improve the perfonnance of our cU."lomcl'S· products. We haw provided innova)ive 

,;ollll;llnS 10 dcmnnding cnN£'J ioo.,,;t!)' customer prolliems fbrd<...,add. W(> pnwid .... ,·al .... to 

rnJr custome,,; throuj!h product design.. prot...,~s engineering as "el l as impro\"C<! product 

pocrliJmwncc. 

C\,m:-ntly. LORD e~(1'C\'ts to ship S2.5 '111l1ion in product to ,upro" ""nd energy denl,)pcrs 'n 

2012. That figure could Wow to S6 million neXt j'CM. with U 10lal pipe-line ofSIO million O\'er 

Ihc t ... .\t :lCwml years. This ~p~sents flCW technology dc\'clnplllcnllh,ll Is driving inl\O"~liO<I In 

lhis important indusIl)'-amJjob creation. 

Wilh II,... unee"nlmy regarding the PTCs fU1U~, we ~re already secing a redu~linn in the 

commitment from our wind energy CU$lonl~,",". Without an e~len on (jf h~ f'1"C. LORD will 

k~ly ~10p llIaking in\,e>tmclllS In new "ind cnergY-r<'latcd N:«. ... rch and dCI'I!lopmem and will 

I~ rc"enue On Ih~se ~XI"'('tcd i<Ulcs 10 OEM~. We are just onc oflhQuS:tnd~ of~uppl;en; in Ihis 

induwy. and we are al",ady ,;"ein!! a ""g:l1ive impaellhat could result injollioss due 10 tile 

unee"uinty surrounding whether the PTe will bo.' eXlendcd beyond 2012. 

Th,·rcfol"C.l mon.dy urge this c(jmmin~ to imlllL'i.liately I~I:.C up an extension uflhe wind energy 

produclion 1:1)( credit. 

Sincerdy. 

Susan Alice 

5 E:tst Oriw 

l\ largme. NJ Oll402 

LORD Corpora!;on 
714 

Statement of LORD Corporation 11 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.650

Th~ Honor..ble Pat Ti!Jcri 

Chirman 

May~. 2012 

$ubeommitK ... • on Sclet:t Rc"~nlK' M(."dSUrt'S 

Committei.' 011 Ways and M~ans 

U.S. II(.)tls(· of RCl'rl"St:ntali,'cs 

1102 1..o11},'",orth lions<: Office Building 

Washington. D.C 2(l515 

tk~rCh:Jirman Tiberi: 

l"ORD Corpot'"~lio . a IcadinllSllflPlicr ...,ro,·ing tll~ wind ~nL·'I'l:.v indUSlI)' I;>a""d in ri~. l'A. nrg~s 

ecngres.s I<) extend the wi"d cn~'l;), production tal< "...,dit (l"rq ~ quickJy 3S possible. 

LORD Corpor.uion is a di,,~rnir,ed technolol!Y and manutacturinl!.company wilh a long history 

ofdc,cloping breakthrough .dhe,i,'e. coating and moLlon management tc"<:hnologies lhut 

significantly improvc the perfonuancc of our cu.<;[omcrn· products. We IlH"c provided innovalive 

,;ollllilms to dcmnndinl\ ~I\N£'.Y ioo",;lry CUSlomer prolllem" f{)rdccadt~. W(> I'nWid .... "31"" 10 

rnJ. customc,,; Ihrough product design.. prot...,~s engincering as "el l as impro\"M product 

pocrliJmwncc. 

C"t,rrt"nlly. LORD e~p.."'\.1s 10 ship S2.5 million in produclln ,upport ""nd energy dcnl,)pi:rs 'n 

2012. ThaI figure could l'JOw 10 S6 million neXIj'cM. wilh U 10lal pip(::iine ofSIO million m'cr 

Ihe 11\'.\1 :lCwml years. This n.:pn.:&enl> new h:chnology dC\'clnpmcllllh'll Is driving inn')\ ~liOll In 

this important induslry-amJjob creMlnn. 

Wilh the ullcertaimy regarding the PTC's fUIllft', we ~rc alrcady st'Cing a rcdLWlill1l in Ihc 

commitment fmlll our wind energy "U$lOI11~,"," . Without an c~lCn on of the f'1'C. LORD will 

likely ~IOp making in\'c>ll11cnlS in new "ind cnergy-rdatcd N:i\.'ll""h and dCI'I!lopmem and will 

I~ r''''enuc On th~se ~ \Il''('led ~ks to OEMs. We arc just one oftholl$and!i of~upplien; in this 

induwy. and we are al",ady ~in!! a ni'g:llive impacI Ih31 could result injollioss due 10 Ille 

uncertainly surrounding whNhe. the PTe will bo.' exlended beyond 2012. 

Th,·rcforc.l slron .. Jy urge this "Ol11mill~ 10 immL'i.liately 1~l:.e up ~n extension oftl\e wind energy 

produclion 1:1)( credit. 

Sincerdy. 

JiJoSCph Markiewicz 

2000 West Grnnd\'iew Boule"ard. Eri(, I'A 

LORD C(,)/"\'Oration 
715 

Statement of LORD Corporation 12 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.651

Th~ Honor..ble Pat Ti!Jcri 

Chirman 

May 7. "2012 

$ubeommitK ... • on Sclet:t Rc"~nlK' M(."dSUrt'S 

Committei.' 011 Ways and M~ans 

U.S. II(.)tls(· of Rcprl"St:ntali,'cs 

1102 1..o11},'",orth lions<: Office Building 

Washington. D.C 2(l515 

tk~rCh:Jirman Tiberi: 

l"ORD Corpot'"~lion. a IcadinllSllflPlicr ...,ro,·ing tll~ wind ~nL·'I'l:.v indUSll)' ~d in Cal)'. NC u'l!cs 

OJlIgres.s I<) extcnd the wi"d cn~'l;), production tal< c...,dit (l"fq ~ quickJy 3S possible. 

LORD Corpor.uion is a di,,~rnir,ed Icchnolol!Y and manutacturiny.cOlllpany wilh a long history 

ofdc,cloping breakthrough .dhe,i,'e, coaling and moLlon m"Mgcmcnl tc"<:hnologics lhut 

significantly improvc the perfonnancc of our cu.<;[omcrn· products. We IlH"c provided innovalive 

,;ollllillns 10 dcmnndins ~nN£'.Y iOO",;I!)' CUSlomer prolllem" f()r("'e~dd. WI.' pnWid .... "31"" 10 

rnJr cuSlomc,,; Ihrouj!h product design.. prot...,~s engincering as "dl as impro\"M product 

pcrliJmwncc. 

C\,m:-nlly. LORD e~J)C\'ls 10 ship S2.5 111111'011 in produelln ,upport ""nd energy dcnl,)pi:rs '" 

2012. ThaI figure could Wow 10 S6 mUlion nexlj'cM. wilh U 10lal pip(::iine ofSIO million m'cr 

Ihe 11\'.\1 :lCwml years. This ~p~senls flCW h:chnology dC\'clnpmcllllh'll Is driving inl\')\ ~liOll In 

lhis important induslry-amJjob creation. 

Wilh Ihe IIlleertnln1), regarding Ihe lyres fUIIIft', we ~ft' alft'ady seeing a rcdu~lilln in the 

commilment fmlll 01Jr "in.:! energy "U$lonl~,"," . Without an e~len li(lnof he f'1"C. LORD will 

Ii~c y IOp making in\'c>lmcnlS In new "ind cnergy-rdatcd N:«.'llrch and dCI'I!lopmem and will 

lose re"enuc (In Ih~se ~.\p<'Cled ~!es 10 OEMs. We are just one oflhou$and, of~uprlien; in Ihis 

in.duwy. and we are al",ady ~in!! a ""g:llive imp.ltllhal could I<'sult injob loss du~ 10 Ille 

uncertainly surrounding whether the PTe will bo.' exlendcd beyond 2012. 

Th,·rcforc.l siron .. ly urgc Ihis c<)mmill~ 10 immL'i.lialely 1~l:.e up ~n eXlension ofll\e wind energy 

produclion 1:1)( credit. 

Sincerdy. 

Aundrc'd f'erltay 

LORD Corpof1ltjoll 

II I Lord Drive 

Cal)', Nr 275 11 

AUlldrca.Pcrh:Jy@IQrd.co11l 
716 

Statement of LORD Corporation 13 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.652

The Honurable Pal Tiberi 

Chairman 

r.1~y 7. 2012 

SubcQmmiuu (m Sel~cI Re.·enue M~:1S u"" s 

Cpm'niu"" on Ways and !-k3n, 

U.S. 5~ or Rerre5Cnlali\'e$ 

1102 Longworth Iiouse Off,ee Building 

Washinglon. D.C. 205 I 5 

D~ar Chainnan Tiberi: 

LORD C<lrpOr",nion. a leading supplier S<"TVing Ille wind en~'l;.Y induslry based in Erie. I'A. uli'e$ 

CPI1grt"'ss 10 ,,~u'nd It.:- wind "'~g) prooOClion 1lI.~ credil (prc) as 'luidly II!i ("I(P:isihle. 

LORD C<lrpOnItion is jI di\"frsilied Ic..:hnology and manufatluring~omp3ny wi:h 11 long hiSlol)' 

u( d~wloping b...,aklhrou!P1 adhesive. <"<Ialin!!. and motion manag<'1l1Cni Icclmobgil'S Ihal 

significantly improve the perf<lrm3nee of our lomerf prQdoclS. We h3W provided innQI"tIl iw 

soluliUfls t<l d~marnlin cl1<'rg)' industry CUSt\lml'T problems fur detadcs. We provide \·:dur (0 

o ur C\lSlonlen; through product (ksign. flI1li'C~S engin'-';:Tlnga$ weli a.' improved prQduCt 

pcrforn13m .... 

(uTremly, LORD e~pctl~ 10 ship $2.5 million in produ~1 to SUppOn wind energy w,"rlopcn; in 

2012. T halligure cOuld gro'~ 10 S6 ",illion nc t year. with a 10la l pipe li "" cfSIO ",illio n over 

tlte next ""'"ernl ye~n;. This repre~nt; new tc'Chnol"s,.v dewlop,""rllihal is <.Ir;.,in!> inno.,.~ ti n in 

this import:ml indu lI ml<.ljQb treat. on. 

With the unNnuiniy ...,gurding th~ PTC ~ futul"l"". WC al\' already (i"g a reducti on i" the 

comminncnt from Ollr \\"io<.l t""'® tIlSlom~rs. \\' ilhout an )(\(Mi on flh~ J'Tr. LORD will 

Itk~l )' Op making inveSlm ... ~ in n<'ll' wind cnergy~reb,ted l"l""5<"al"l""h and development tln<.I I,ill 

lose reVenue un Ill.:"" ~pec\~<.1 sa l~s lu OEMs. We are jll~1 one <lflhotl;;arnls Q; suppliers in Ihis 

in<.lusuy. and We are already ~cing 8 ne ~l;\ ·e impaClthut tould ",~ult in joh loss d ue 10 Ih e 

uncenainly surrounding "hc'lhI.·r the PTe will be ~)(h'nd~d b<:yond 2012. 

Therefore, I strongly IIrg~ thi~ commitl~~ ((I immediately take up an ~~l .. ~t un or lhe WiN elH.'rg)'" 

pmduc\i,~n 18 )( credit. 

Sinecrt'ly. 

"-lark W. Pre,slc), 

210 Lord Dr. 

Cmy.NC27511 

LORD Curpol""~\ ju" 
717 

Statement of LORD Corporation 14 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.653

Th~ Honor.lblc P3( Tiberi 

Chirman 

May~. 2012 

$ubcommi(K ... • on Sclet:1 Rc"~nue M<."dsn!'t'S 

Commin~~ Un Way$ :md M~arl5 

U.S. I[utls,' uf RCprl"Seolali,'cs 

1102luogwo"I1I1Quse omc~ Buildil1~ 

Washington. D,C. 2{lS15 

tk~rCh:Jinnan Tiberi: 

l-ORD Corpot'"~lio n. a IcadinllsuflPlicr ...,ro,·ing tll~ wind ~nL·'I·¥..v indUSlry I;>a""d in (,31')'. N<':. 

urg~s Congll'S~ \0 CXlend Ihe wind [""''1:..'' produClion IIl.X cll'dil (PTe) 3S quickly as possible. 

l-ORD Corpor.uion is a di"~l'Sir,cd (cchnolo[!Y and manutaclurinl!.compan), wilh a long history 

ofdc\clopinS bn:3klhrough 3dhe,i,',,-, coating and mollon ",anasement Ic"<:hnologics thul 

significantly improve Ihe perfonnance of our cU."lomel'S· products. We haw pro\'ided inno\'alive 

,;ollllilms to dcmnnding cnN£'.Y ioo",;I'1' CUSlo",er prolll,,-ms f()r("'e~dd. WI.' pnWidc ,-al .... 10 

rnJ. custome,.. Ihrough product design.. prot.'C~s engineering as "dl as impro\'C<! product 

pcrlilmwncc. 

C\,rrenlly, LORD e~pc.:ls 10 ship S2.S ,)1II1'on in produCI to ,upro" WInd energy dcnl,)pi:rs in 

2012. That figure could g row 10 S6 million neXt ),eM. wilh 0 10lai pipe-line ofSIO million n,'cr 

ll1e neXI :li:vtral),ears. llli§ repR's.cnl~ uc,,' technology (1i:\'Clopmenllh~lls driving il1nOv~!i()ll in 

ll1is impo"nnt induslry--andjob ereMinn. 

Wilh the IIl1cennlmy regarding Ihe I'Tes future ...... e are already seeing a reduel;cm in (he 

commilmenl fmm (jU, "ioJ eucrgy 'U~IOn1crs. WithOUl 8" exten~i.,n Oflh~ PTC. LORD will 

Ii~el)' 510p making in\'c>lmenlS 'n new "ind cnergy·rdaled ~ ... reh and dC\'I'lopmem nnd will 

lo:;c ,-e,'cnuc onll1cS<' cxpeel~d ",k~ 10 OI!Ms. We are jusl 0,,", oflh(IUsaoos Qf~upplic~ in (his 

indl15I/)'. and w~ ure alread) st:<'ing a II<:lP'li\'Ie illlpacilhal could result injob INS due 10 Ihe 

uII<:crtninl), sUlTOunding whNhcr the I're will b<" esu. nded bc)'QIld 2012. 

Therefore, I strOllgl)' 1.I1},'" lh;~ cl)mmiUec 10 immooiatdy luk,' up an eXlension ()fll\(, wind ener&r 

pmd",,[ionl3.~ credit. 

Sin~c,-d) . 

! II l oxd Drive 

Cary,NC27SI I 

LORO C'orpomlion 
718 

Statement of LORD Corporation 15 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.654

Th~ Honor..blc P31 Ti!Jcri 

Chairman 

May~. 2012 

$ubcommiIK ... • on Sclet:t Rc"~nue M<."dsn!'t'S 

Commin~~ Un Way$ :md M~an5 

U.S. I[otls(' uf Rcprl"Sentali,'cs 

1I02lungwonl111ouse omc~ Buildin~ 

Washinglon. D,C. 2{lS15 

tk~rCh:Jinnan Tiberi: 

LORI) CorpOI'Htion. a 1~3ding upplicr $l'rving the wind ... ne'1l.v industry t>aS<'d iu ('31)'. No,,!! 

Carolina , urges Congr~s 5 to ~xt~nd the wind energy production tax credit (I'Tel as quickly as 

po .. ible. 

LORD COrpClrution is H di\'c,,;il"oed lechn"I,,!P' and manufacluring ~()l11pa"y wilh a l{lni: hislo,)' 

ofdc,'dopil1g brcal<1hrouj;h ,..jhesi\'c. coaling.aod mOl;on 111~'1Jgemcn! tedmoiogJc! that 

significantly impruw the pcrr"mtanc~ ofourcustomc",' product •. We Im~e p .. "vided innovmi,'c 

solulions to dcmandinJ,;.cne,&)' industry cu.tOmer pl'lJbl~I11' r"rdccades. We provide ""I"" 10 

our C,,;;lomeTS tltrou!!h prOdtlCt deSign, procc .. ~nsinccring as ;,.,ell Q. imp"wcd product 

p"rfonnance. 

Currently. LORD eXiX'clS 10 ship $2.5 million in product \0 s.'ppon wind encrllY <ic\'ctop<'rs in 

2012. Thalfillurc rould grow 10 $0 million ncs~y.:;~r. w Ilh 0 !OIal pipelinc of $ IO million over 

thc neXI ~wr:ll )'cars. Thi~ repr~~nl~ n~w Ic.:hnology del'~torn,,'nllll.'I;S dri"ing innovation in 

this hnjXllUnt indust!),-.ln,l job crcal;iJll. 

With lhe uncertaimy regarding til<." PTC"s finure, we ~rc alr~ady ~~;ng 3 red""t;!)n in Illc 

commitment from our "ind cne!)',)' cu.-lIlmers, Wilholll nll extension Oflhc PTe. LORD will 

Iik~ y Slnp m~king invCSlments in O!'w wind c'l<."rgy·rcla1<'d rl"'Scareh and d,"wlnpmcm oDd will 

1051: re'~'HIC on Ih~ e~pcclC'd s.nlc~ 10 OEMs. We urojUSt o lle ofthnusands or ~upplic rs in this 

indu:;uy. ond we are III",ady s.,..ing a nCg;lli"e intpaCllhaL could 11'5011 injt>b los~ du~ to the 

un~rtainty $ulTOu ndilli! wh~lhcl' the PTe will be e~tcndcd beyond 20t2. 

Th~rcfore, I wongly ,,~c t!l;s cOnltlliltt.'C LO ;"'nt~'{[ialtly take up an e~lension oflhe wind enersy 

production ta ~ credit. 

Sincerely. 

Will Austin 

Director ,,(Go\'L'mm~'tlt AITairs 

LORD Curporalion 

I t ! lord Dri,'c 

Cary.NC275 11 
719 

Statement of LORD Corporation 16 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.655

The HOllornblc. Pat Tiberi 

Ch:lirman 

May 4. 2012 

Subcoll1mitK~ Oil Seil'<.·( Rcvenoe MC'dSIIr.:s 

Commiuet.' Oil Ways and M~ans 

U.S. I[otls(' of RCl'rl"Sen(alil'cs 

1102 1..o11.!!lI'orth lious<: Office Building 

Washinglon. D,C. 2(lS15 

tk~rCh:iirman Tiberi: 

l-ORD Corpot'"~(iQn. a Icadinll SllflPlicr ...,ro,·ing tll~ wind ~nL""r¥..v indUSll)' I;>a""d in Ind;anapoli~. 

IN UTgL." Cong"'"' to l"X1cnd Ihe "ind eneryy produclion tax credit (PTC) as quickly as possibl". 

LORD Corpor.l(ion is a divernilicd lechfl(}logy and manlll"cturin~compan}' wilh a long hislOry 

ofdclclnpin~ b",~klhrou£h .dhesil',;., coaling and molion management I."<:hnolog;cs thut 

i~ifieHnlly improvc the I"'rfnnnancc uf our cuSlomers' products. We h3\'e prm'id.::d innu~ali\'c 

:l(>IUlillllS (Il dcm~ndinS cn(or~ illd",,1ry customer prot.lcms f()rdCeadc •. We pnwide HI.x- 10 

uur customers throu"h prootlcl desiJ;Tl. prol."<!SS cngineering as well as impron'tl produCI 

pocr iJm'~nee. 

Currenlly. LORD e~J)C\'ls 10 ship S2.5 1Ililiion in prodUCllO support \\"nd ,,~rgy dClelop;:rs '" 

2011. That figure could !,;row 10 Sil million next year. II 1Ih 0 101111 pi~linc ofSlO million o,'cr 

Ihe nC.xt sewrnl }c~rs. This "'fH"'scnts "",,' technology d~vclopmenttha( IS dri'ing imK".tlon In 

lhiK Important industry- and job creation. 

With the ""certainty regarding the PTe's fUlur.:. we 3r~ already seeing,a ",<luetion in (nc 

commitment from our ",0<1 energy eU£h)f!lers. Without an c.xlcnsion orthe 1'Tc. LORD will 

like ly stop making im'c,;tmcnts- in nell' wind encl)!Y-rclalC'd research and dcvelopmen( and wHl 

loo.e ",venue On these e~p..'i:t.·,J ""les to OEMs. We are just ()tIC Oflh()ufklnds Ilf supplicrlI ill Ihis 

IIIdu5lry. and we nre atready ~m8 a ncg.111\<C ""pac' lila! CQuid rt'sllllln Joll loos due to the 

uncert"i"ty surrounding whether lhe PTe ",;111:0: cS~lldro !>crillltl 2(J12. 

1bc",rO!>'. J 51n)lll:l), urge this CO!l1lnilieC to i",mroialei), 13h up on cstcl"ion oflt.c wind en~rgy 

production la' credit. 

Sincerely, 

~%l~/ 

St~Icn N. Cardwell 

Quolll) Monngtr -lndi3n.~polis 

LORD Curpornlion 

6151 E. 651h Str«t 

India 1M polis. IN %220 

317-259-4161 X282 
720 

Statement of LORD Corporation 17 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.656

Th~ Honor..blc P3t Ti!Jcri 

Chairmun 

May 4. 2012 

$ubcommitK ... • on Sclet:t Rc"~nue M<."dsn!'t'S 

COl11mitte~ Un Way$ :md M~an5 

U.S. I[otls(' uf RCprl"St:nt3Ii,'cs 

1I02lungwOI11111ouse omu Buildil1~ 

Washington. D,C, 2{lS15 

tk~rCh:Jinnan Tiberi, 

LORI) Corpot" .. tion. a l~adillg upplicr $l'rving lh~ wind e""'1l.v industry t>ased iu Indianapolis, 

IruliJII. .... , urgl-sCOIl{:"'->S 10 <'Xlcnd the wind energy produclion tax cr<:d il (I'TC) as'quickly as 

po .. ~lc. 

LORD COrpClrmion is H diw",il"oed tech"ul,,!P' and manlljaclllringcomf"l"Y witll a I"n ~ hislory 

ofd~,dop ng br<:akthrouj;h ;><;Ihesi"". coating.aod mOliol1 m"nagcmcnt Icclmoiogics that 

signifocnn!ly improw thc I"'rf"mlanc~ ofollrclIslomc",' products. We Im~c pri>vit\ed innovmi,'c 

solutions 10 dcmandink\c""rt\.)' industry custOmer probl~ms f"rdccades. We provide v:l1"" 10 

our cu;;lOmclS !llrou!!h prOdtICl deSign. procc~ ~nsinccring as ;,.,ell Q. improved product 

fl"rfonnance. 

Currently. LORO eXiX'cl;; to ship $2.5 million in prod",,! 10 suppon \\ ind en~ gy <lc~eto 'S in 

2012. T hal1igurc rould gm\\ 10 $0 million ncs~y.:;~r. \\ Ilh ° 100al pipeline of $ IO million ovcr 

Ihe next sewr:ll ycars. Thi~ repr~~nl~ "~'" 1c.:l1nology del'~torn,,'nllll.'l is dril'ing in"ol'alion in 

this hn(Xlrt.1I1t iruluSll)'- ,m,1 job creal oM, 

With lhe- uncertnimy regarding 11", PTC"s fillurc, "'~ 3re nlr~ady secing 3 rWu~lion In tlte 

commitment from our "irul clle!)',)' Cu.'lome"" Wilhmll nil c~lcnsjoll oflhe PTe. LORD will 

Iik~ y 5101' making inl'(!SlmcnlS in fl\'W ",ind c'lI'flIy·rcla1<'d rl":l,,,,n.:h and d,,"wl<lpmcm and will 

1050: r~'~IHIC rn1th~ C~pc<:IC'd s.nlc~ 10 OEMs. We are just olle oflhnusands of ~uppl ic l'S in this 

indw;u)'. ond we arc al",ady si:<'ing a nCg;lti"e il11p<ICllhal could I1'soh injob los~ dll~ 10 lhe 

ullIXl1oilll)' $UITOU lldilli! wh~lhcr the I"rC" ",ill hc c~t~l1dcd hcyond 2012. 

Th~rcfore, I wongly ,,~e th is conllni"...., 10 ;nll"C'di~lely lake up all e~tension oflhe wi'nd ~n~rsY 

produclion ta ~ c",clil. 

Sincerely. 

Shannon M. Whell", 

5101 Ii. 65'~ SUCCI 

lndiunapolis. IN 46120 

LORD COrpof1lljOIl 
721 

Statement of LORD Corporation 18 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.657

)\-lay9. lOLl 

Tilt- HOrIQrnblc Pal Tiberi 

Chairman 

Subo;omminu on Sde.::t Rc~enue M"rusures 

C{)mm;tlCe on Ways and Means 

U.S. House ofRcpre~nl.al;\'Cs 

1102 Lungwunh IluuS<! Ollie( Build;ng 

Wa~hington. D.C. 20515 

DearCha;nn~n Tiberi: 

LORD COfJ'Ornl;{)I1. a leadi"g supplier serving Ihe \\'ind energy industry ~d;n I"dianapolis, 

Indiana urges Cong,,-'S~ to e.<lcnd lit<: wind cnergy productiu~ La:< credil(PTC) as quickl)' ~ 

possible. 

LORD Cnrporntiou is a diven;ir,cd tcclmolop,y a"d m8"ul:1CIl rin~Cl}l11pauy with a long h'$10ry 

"rd~\ clopins bn:,klhmugh adhesil'e, coaling and I11m;on management l..-chnulugies 1h:.!1 

signir,camiy improl'c Ihe p",fonnaucc of our cuslomers' products. We have provi,jed innovative 

o\OluI;ons to ,j~mandin&c""rl1-v industry CUSlum~r problems f",decades. We providc ''11 1"" 10 

our cuslome", Ihrough producl desi!;'" pro'."dS engineering as well tiS imflIDvw product 

~rfonnance. 

CUrrently, LORD cXJX'ctS 10 $h;p S2.5 million in Ploduct 10 suppon " 'ind "n~r~ d~\ eloJX'rs i" 

20 12. Thai figure could 1:-'011' 10 S6 nI;lIi()n nC~1 year. wilh a lot11 pipeline ofSIO ",iilion ow, 

!h~ ue~t ;o,~~",1 )~ rs. This n' p"""nl'""w ted-molo!!.,)' d~\'clopl1lcntlhat is drilling innmalion in 

Illis importllnl indUSlry- and job creation. 

With Ill<: uncerlainty regarding !he 1''1'("'$ I'nu",. wc Hre air~3dy seein~ a ..,.tuClion ,n the 

commilmcnl from our "ind ell~'l;,)' cnstom~lli_ \Vithoul an "'~I~n~iun orlh~ I'TC, LOII.D will 

I,kely stop n18k'''g investmenti' in new lIind encrgy.n:lated r""".rch and development and will 

loo.e re\-cnu~ M the;;., (:](pi.'cted ~a!cs 10 OEMs. W~ are jll1il 0"'-"' ofti>ousands ofsupplic~ in this 

industry. and we arc already """ns a nCl!;\ti\'e int~1 !hat could ","ull injob loss due to the 

linCCrluinly SlllTOUndili1l \\hc1her!hc PTe will be ~t~nilcd bcyorul2(1 12. 

Th~refore, I stroogly u'l!c Ih,s commlncc 10 'nlmedj~lcl)' I~kr up on e~l~nsion of I"" wind energy 

prodOClioll (a.>( credit. 

Sincerely, 

~0-')'l"-- Dl\'id J. Masci~ 

Lord Curpor;tlion 

5 101 l:.a5165'· Sirect 

Indianul-"'lllis. IN 46220 

LORD Corpllration 
722 

Statement of LORD Corporation 19 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.659

Th~ Honor..blc P3t Ti!Jcri 

Chairman 

May 4. 2012 

$ubcommi!K ... • on Sclet:1 Rc"~nue M<."dsn!'t'S 

COl11mitte~ Un Way$ :md M~an5 

U.S. I[otls(' uf RCprl"St:nI3Ii,'cs 

1I02lungwOI11111ouse omu Buildil1~ 

Washington. D,C, 2{l515 

tk~rCh:Jinnan Tiberi, 

LORI) Corpot" .. tion. a l~adillg upplicr $l'rving lhe wind ene'1l.v industry t>aS<'d;" Indianapolis, 

IruliJII. .... , urgl-sCOIl{:"'->S (0 <'Xlcnd Ihe wind energy produclion tax cr<:dil (I'TC) as'quickly as 

po .. i~lc . 

LORD COrpClrmion is H diwrsil"oed lech"ul,,!P' and manlljaclllringcomf"l"Y witll a I"n~ hislory 

ofd~,dop ng br<:aklhrouj;h ;><;Ihesi"". coaling.aod 11101;011 m"nagcmcn! Icclmoiogics thai 

signifocnn!ly improw Ihc I"'rf"mlanc~ ofollrclIslomc",' products. We Im~c pri>vit\ed innovmi,'c 

solutions 10 dcmandink\ cnert\.)' industry cu.l0mer probl~m. f"rdccades. We provide v:l1"" 10 

our ClI;;lomclS !llrou!!h prOdtICl deSign. procc~ ~nsinccnng as ;,.,ell Q. improved product 

fl"rfonnance. 

Currenlly. LORO eXiX'cl;; 10 ship $2.5 million in prudocl lO suppon \\ ind en~rgy <lc~eto 'S in 

2012. T hal1igurc rould gm\\ 10 $0 million ncs~y.:;~r. \\ Ith a 100ai pipeline of$IO mi llion ovcr 

lhe neXI sewr:ll ycars. Thi ~ repr~~nl~ "~'" 1c.:l1nology del'~torn,,'nllll.'l is dn"ing in"ovation in 

lhis hn(Xlrt.1Ilt iruluSll)'- ,m,1 job creal oM, 

With lhe- uncertnimy regarding 11K" PTC"s filturc, "'~:lre nlr~ady secing:l rWu~lion In the 

commitment from our "irul elle!)',)' cuSlome"" Wilhmll nil e~lcnsjol1 oflhe PTe. LORD will 

Iik~ y 5101' making inv(!SlmcnlS in fl\'W ",ind c'lI'rgy·rcla1<'d rl":l,,,,n:h and d,,"wl<lpmcm and will 

1050: r~'~IHIC rn1th~ C~pc<:IC'd s.nlc~ 10 OEMs. We are just olle oflhousands of ~upplicl'S in lhis 

indw;U)'. and we arc IIIn:ady si:<'ing a nCg;lli"e il1lp<1Cllhal could 11'soh injob los~ dll~ 10 lhe 

UllIXI10inly $UITOUlldilli! wh~lhcr the I"rC" ",ill be e~tclldcd hcyond 2012. 

Th~rcfore, I wongly ,,~e Ih is conllni"", 10 ;l1l111C'di~lely lake up all e~tens;on oflhe wi'nd en~rsY 

produclion la ~ c",clil. 

Sincerely. 

Jennifer Ja",\s 

5 101 10 ,65'" SI. 

lndiunupoli~. IN 46120 

LORD Corpof1l(jon 
723 

Statement of LORD Corporation 20 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.660

Th~ HOl1or..blc Pal Tiberi 

Chairmun 

May 9, 2012 

$ubcommitK'I.' On $c1et:1 Re"~nue M<:'dSI1rt'S 

Commin~~ Oil Way$ :md M~a115 

U.S. I[(.)tls(· of RCl'rI.'·senlali,'cs 

1I02longwOI11111ouse omc~ Building 

Washiogtoll. D,C. 2{lS15 

tk~rCh:Jinnan Tiberi: 

LORD Corl'OI"Htion. a I~ading upplicr $l'rving lh~ wind c""'1l.v industry t>ased;lI Cary. NC urgc.s 

OJlIgres.s I<) cxtend the wi"d en~rgy production tal< c...,dit (i'"rq al; quickJ)" 35 possible , 

LORD Corporation is a divcl5if,cd tcclmolog.y a"d ma"ulaCI"nnll,compan)" with a long history 

<Jfd~,dopins bn:akthmugh adhe~ivc, coaling and m"tloll m'Mgemell\ ledlJlologies t .... 1 

signilicamly improve thc p"rfonnancc of our customers' products. We haw pmvidcd inno"ati .. ~ 

,:,o1"I;ons to d~nJamling.c""rs..v indllsll:Y custolJl~r problems f"rdel:~dcs. We providc "31"" 10 

OUr cuslomers Ihrough ptoduct desi!,\lJ.. pro<."1!SS engineering as well tiS improve<! product 

~rfomlan<:c. 

Ourentl)". LGIlD C,\)X'cts 10 $hip S2.5 million in product to support " 'ind i:ller~ deVelopers in 

2012. That figure co"ld grow to S6 millil>n nelil year. " ilh ~ 100all'ipeline of$10 miliion oWr 

Ihe ""XI :l<:vcral years. 11lis repR"s.cnt~ nc,,' technology lk:vclol'ment thM is drivi"l! I11110\'l1ti0l1 in 

litis imporlam induslry-andjob crelll;r>n. 

With the uncertainty t'1.'!,\arding lite PTes fUlilrc. we are already S<.'Cinjl. a redll~Iion in Ihe 

eommiLmcnl frum our wind energy ~u ~tr>",ers, Without Bll extension of h~ PTC. LORD will 

liltely SlOp making inVCSlments In n~W wlud eoerg)'·rclated "-'Sear':!l and dCl'elopmcnt ond will 

lose re\'cnue pn IJtes.c cxp....... I~d '-Illes to Qlol-h. We \1rejllsl one of thousands o(~upplle~ in this 

induslry. ~lId \~ Are aln:ady s""('ing ~ ncgdti\~ illlplWt tltal could result injoh loss due 10 tile 

IIn""rtni"Iy slIl"11>llIlding wh~lhcr the f"fC will t,., c~[.>nd.-d beyond 20!2. 

Therefore, I strollgly u'l:~ Ihis conllniuee 10 imnl",jialely lah up on c)<l~os;on tlfille wind energy 

l)mdoctiOll lax credit. 

Sinte.dy. 

5101 £asI6S" Sireet, Indianapoli>.IN 

LORD Corporal ion 

(317)259-4161 X·25S 

Oo.t_ Billh~il[1c r@ ord.C"1[1 
724 

Statement of LORD Corporation 21 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.661

May 4. 2012 

The HonQr:,ble r :lI TitH"ri 

Ominnan 

S"hcommillcc em SeleCt Rnc""" Mcruju,c. 

CommilK'C on WD~' and Means 

U.S. JI('Iu~ ofRcpres.':ntatIV.;'l; 

1102 Longworlh 11('Illsc Oflkc Building 

Wa:<hil1£t<!n.lJ.C.W5 IS 

0.,3' Chairman n bcri: 

LORD Corp<.-,rJt'Qn. a 1c"d;nl\ .s "JlI)I' ~r serving the "ind energy inllusuy based in Eric. PA. "~C5 

Congress 10 cXh'l1d 1tK' wind l·n~'f!.\)· produCI;l'll l~X en'dit (I'TC) as quickly as possiblc. 

LORD C"'l"mnion is II diwrsifi,..,j lechnology and nlanutacluring company with 3 long history 

uf dc\'clopint'bn:aidhrollsh adIICsi,e. ~'OIllins and mOliC)!! m3nag,'mcnl tl-.:hnoloSi<'S Ihat 

signilicantly impm"" th..· pertoflllan.:i' orour cu;h'mcrs' pm.tu~ts. Wt h,we prlovidcd noo~ali, c 

...... lulioru; to dcnlaoolng energy industry customer PrQblCnlS j'l1 decndes. Wc pl\wide I'olue to 

our customcrs thmugll prodWI dei;;gll. [lfOCt'>"'S C1lg.inC\'Tlng a, well as impnwoo prod~t 

pc,fonnancc. 

Currently. LORD eKJI(:cts to .hip S2.S million in prodl.ll:tlJJ SUpllO" wiod CIli:TllY de\'clo~n in 

2012. That figure ~-ou\d ,gro" to $b million llC.~t year. wilh a total pipeline 01'$10 million over 

lhe TIC~1 sevcral ),l"3!l'. This f\"~"l,~ new tcch'H,llog} dcvell)flml'llt that '$ driving il1tKwal'(In in 

lhis ,nlportatll ;"dlM'lry- and job cr<'allon. 

Wilh thc uncertainty "'l0fding The PTe's fll1urc. we ~'" al",ady s<""n~ a redl1Ction in the 

cllmmilmcm fl\'m Ilur "ind crn:~ cuslomers. Witnoul an ~ten~i(ln of the PTe. LORD will 

I,~cl)' Stop m~king im'c5tmcnt$ in new "inti energy·",I" t,·d ",;.cn",h and d<'\'elopm~nt und will 

IIlli<' rewnl'~ on tlt~'S(' ~)tP«tt.J sal« to O""'s, W~ ure JUSI otW' OflhouSllnd~ ofsllpplicrs in this 

iodu;;!,). and "c aft' ull\..,d} K..,inga .... gluiH imp.:tct Il\:lt could "'WiT in job loss due 10 the 

u""""ainty slIlTOlI,\ding "bether thl' ptc will ~ e)tlcnde<! bi!}'ond 2011, 

The re fore. I $tNngly uTge th,s ,'Otlltl1;I1CC 10 in1l11wiUtcl}' lake lip an l'.Xlcnsion ofthc "ind clTergy 

produclion t~~ credit 

Slile)' Rihd 

2000 West Grund,'I"",· Bhd 

Eri~. 1'/\ Ib509 

LORD CQrpQ<::llion 
725 

Statement of Luisa Cox 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.662

/, l.lf fl 0,,;, fl com:em eri d tbm fllld ff t:f"t~'r/u e (AriZflll/') f e,vir/elll " 'spi!crji"'y lII~e 

Ccmg1'l'.\'$ lu ~xlel1lJ lite wind em'rgl' {)I'{"I""tiol/ lal: ,-redit (l'TC) os qllirklJ' IU /)(J, .. :,-ibll', 

TI.e PTC ddl'I'~' billiolls uJdoJ/ars in prh'UI" Im'eSlmcII' in home1{r(''''" Amcrit'ffli wind 

power ern;/i yNII'_ 

Jl'illd t'IIe'XI' product ioll i.v 1m illl/rwry still in ils in/<mc}, .,"'/ IIIteds "",/lII'il/1{ In gmw 

imd pmtl",:e ml/ch IIecded relfcu'ubli:, 'cololl ca/ly ,vol/ml energy jiJr Americt, '.I' Ilce,'ll', 

le'\'~'I!II il!g 0111' ('{)ItIW" dlllfJ,{l'rnm' lkope/Jdem:e Oil fOl·";gll oil, 

III midiljrm, It'jlldj(mns, , .. hl!rel'cr Ihcy 1m:. bring com"ll"lINioll unt! IIIl1iml!'WII£'e )ob~' 

Iwlpln!; IIII! ffJ/-'<lf ('COllOm/e/), (//~o /IICIIII," helpille local schoofb' (/11<1''''1>1,11<1'1" Q I'\.',. Ih e 

lifetilll/! <lJlh!! pruject. 

/lfc/"/!asinll,ile UIIIOIJIII 0/ power Ihat aliI' cO/mlIJ' !;l!lsJrom deall. lumwgmll'II. "jJordablr!-

1",',\'UIII"Ce,v is UII excel/em ihins/or 11.1" to Un - olld lhis Itlx ('reilil ",(/I'ldes (11/ ilfcentil'f.'for 

Ihe \l"il1d Im/r'sfr), I(} rolllil1lll' /0 do jusllbal. 

-11Iry;e the <'Um milll!e 10 t<lke "I' <I" (!xl£'n!liOII of the wind ('1/('1'.1:)' productiull /{IX "/"1U1i1 

rig'" (JI"!{)'. 
726 

Statement of Margaret Welke 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.663

My neme Is Margaret Wel~e and I live in Madison, WI. I am wrillng 10 urge COr)Qress 10 exlel'ld 

the "',nd energy prOdlJCtiQn tax credit (PTC) as quickly as possible_ 

Wiscons,n greeUy depends on Imported energy - but II does'll ha~e to if our slate would "see 

Ihe ligh'" ar>d 81M invesbng in and granUng IlL< credits to clean rerJewables, Ii~e wind energy_ 

pay a premiom today 10 underWr,te l00~ Wind lor all of my domestN; electrical needs_ 

Furthermore, the PTC drl~es bill ions 01 dollars ,n pm1ata Investment in homegrown Amerrcafl 

wind POWef each year and 11 creau~s DOlh blue ana whit!! collar jobs. Scaling up wind energy will 

cteate exponern,ally more jobs Ihan all, gas or coal combined, 

10000easi-ng me amOU(1\ of power thaI our country gats 110m eleart, homegrown, affordable 

resources ,s what I artd Ihe major~y 01 AmerICans warn 10 see happen in thiS country, 

We are frightened. scared, angry and dlsgusled wilt1lhe subsidies paid 10 tossillu!!1 oompal)ies 

and nuclear energy. which resul! in enormous toss artd de~aslation liKelhe on-gol09 FUslcishima 

disasler ilnd ~te BP aU spill, MTR and all ils associated Ills, frackll1g and so on. 

As a resu~. I urge the commlltl!'e to lake up an eXlension oIlhe wInd energy producilon tax 

credit rtght away, 
727 

Statement of Maria Luisa Bernaldo de Quiroz 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.664

Maria Lu isa Beroaldo de Qulro. 

lOon Grogan. Mill Rd Sul!e45S 

Th~ W[}{)dland., rx 173S0 

lei 281362 9977 

malu.@summ~~o a'n~.com 

Title ol Hearing: Hearing on Cerl.ln fxplring Ta~ Pro~l.ion. 

I. Ma ri, lui .. Bern.ldo de Quiroz. from The Woodlands, lex •• , re.peerfullv urge Congres.to ute,,!! Ihe 

wind energy prOduction UK credit (PCT) as qu]ddy as pMsible. Americ-a h.5 to contmue to diverSity Its 

energy portfolia and catch up with olher caunlfle. in .enewableenergy. CUrrenlly Amedca i"agging 

behind mo.1 i"dll,t".II.ed countle. and Is too dependent on foreign 011. l~i . dependence cau.e, 

AmeriulO .pend billions pfolectlng its Inlere.! in fo reign cOuntrieS inllead 01 invest1h8 in 'now" 

country. It i!; a huge strategIc-mistake that I, drain]", ou' ecooom,c powe. bV transferring America', 

wealth to oil produting cOlln trie •. Thi. t~n,fer of we.lth is ma.,ive and America mull correct this 

mi,(;Ike. RI'-ducing Ameriu's ep~ntlence Tn foreign oil mu", be. priority fOI Congr"" _ 

Respectfully, 

Maria Lut-a Bero.ldo de Quiroz 
728 

Statement of Mark DuRussel 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.665

Friday. April 27. :?Ul:? 

To Ihe I louse Ways and Means commine ... : 

I respectfully ur~c Congress 10 c~tcnd Ihe wind cnerl!.Y production lax credit tpTq as 

quil,kly as [lQssible. 

The PTC drives billions of dollars in pr;v:l\e invcsl1nent in homegrown Amcric:m wind 

power each )'e~r. 

Increasing the amoun! of power tl1ll\ our couNty !;cts Jrom clcan. homcg,rowo. "nordabl~ 

resources is un eXCl'lIcllt thing for us to dO- lind Ihis la~ credit provides 3n inctntive for 

the win(j indusll)' to COlllinlle to du jusl lh:il. 

NO! CXlendin~ Ihe raJ( credit sends mixed mcss-ages to Ihe iodu$tl)', aod makes their 

plullning for future gro .. th more difficult. 

Ag.1in. I urge rhe commirtec to lake up an c)rlcilsion oflhc wind energy producrion la~ 

cr~dit right away. Thank you fur cO Il~idcrillg my commenlS. 

Sincerely, 

Mark DuRussel 

Son"are Developer 

21 N. Hanl'ood C ir. 

Madison. WI 53717 
729 

Statement of Mark Feigenson 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.666

I, Mark Feigenson, from Princeton, New Jef'!;ey, respectfully urge COllgre,;s to extend the 

wind I.'t1CTl!)' production l3~ credit (PTC) as quict;l)' a~ possible, As a result of,he PTC. 

billiotl ~ of doIlms of privme inve,Imem have been made in wind power, cre.,1t;nsjobs ml 

£.enermiu,g revenue during the ret'f!ssion, At this Illnl' of high ,gasoline prices, il is a 

trove,l)' nOl to show a comnlittn~m to Ilitemiltive fonns of ~nergy, Moreover, we need to 

wean this country of its depcnden<'e con fossil fuc1 sso liS to frceourse.1\'es from 

dependence on the undependablc Middle EaSt for our energy SCJurce.~, Wind power may 

no! be THE 311SWer, but eve!)' step we t.1~<'- is a step toward energy indepcnd~nceand :I 

cleaner environment, The sooner we enroum.ge IllOTe inl'estment In altl'Olmive energy 

soun:~s. the greater will be the o pponunilics for developing more viable, eco110mil'al 

ahl'maliw", r Ul'gl' thcl'()mmincl' to ta~e up till extension ortbe wiud encr~' production 

tJ:u credit right away. 

Respectfully. 

Mar~ Feigen.ou 
730 

Statement of Mark Weller 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.667

I, Mark Weller Student ilnd writer, Newman, Ca. 95360 respectfully urge Congress to extend tile wind 

energy production tax credit (PTC) as quick ly.s po,,;ble. 

The PTC d,i"e!> billions of dollar~ In p,lvate Investment in Mameg'awn American wind powe' eath 1e~'_ 

h~ve seen the wind Ij rm near Tracy, (3, revi~ljlt'lhe (ommuniW - bringing In construction labs at rorst, 

and maintenance j<>b. In the long term, and gen~rating ... venue for our community "hool. and 

haspil.ls OVer tile lifetime of the project. InCfeuing the .mount of power tll"tour country gets Irom 

d".n, homegrown, alfOfdable r ... .our"". is an ucellent thing lor us to do - and l1\i, ta. credit Ilfo.ides 

an incentive tar th ... wind industry to continue to do just H'Jt. 

· 1 urge the commIttee to lake up an extension 01 the wind energy production tu credit 'ight aw.y. 

1120 Main SI. Newman, (3. 95362 

109·817·9012 
731 

Statement of Marshall Hollander 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.668

Hearing o n Certain Expiring Tax Provisions" 

TO: The U ,S . House Subcommittee on Select Revenue Measures 

Marshall oilander-Citi~en Advocale 

369 Hugick Rd . 

RichfJeld Springs , NY 13439 

Phone:3 15-360·2873 

E-mail;Wolan99@aol .com 

(text on pages 2 and 3) 
732 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.669

I am writing the committee as a concerned citizen, taxpayer and voter, to end mote 

subsidies for the "Wind industry" in this country. I ask the committee not to support more 

renewals of the various, exorbitant, and long running subsidies for Ihis industry. I urge 

you to end the PTC-Production Tax Credit, the Investment Tax Credit, and other special 

federal support for this industry. 

The wind industry has made elflravagant ctalms tor years, but has failed to live up to 

them. It has enticed us with the !dea that wind IS free-and II is a clean, cheap alternative 

that will solve our energy demands, in fact. wind barely made a dent in our electricity 

generation needs, and also failed to make any contribution to helping the environment. 

Without subsidies. there woukl be no wind industry-and with ailihe taxpayer money 

they have received over the last 20 years; they still cannot make it as a real business. 

They are not really a business at all, but a clever scam, playing on the idealistic hopes 

of American environmentalists, by using massive amounts of tax doUars for unwarranted 

gain, 

Particularly in the economic situation we find ourselves in we can no longer afford to 

waste precious taxpayer dollars on an unproductive technology. What is even more 

outrageous is the fact that much of this money does not even go to US companies. 

Congress must put an end to thisl The turbines themselves are mos~y manufactured in 

China at this point. Vestas. the Danish company which produces many of the turbines 

used in the US. is manufacturing more in China now. GE, which claims to be a US 

company, actually produces its turbines in China, and calls them American made 

because of some minor assembling In the US. 

The claim that the wind industry creates green jobs. is Just that, a claim. What are tnese 

jobs, and where are they? Other than the initial construction (since the turbines 

themselves are not manufactured here) largely requiring a specialized crew which goes 

from project to project-the projects are remotely controlled and require no manpower. 

In my region of upstate NY1 where wind projects disrupt communities, degrade 

lifestyles, despoil the countryside, devastate property values and result in lawsuits and 
733 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.670

J 

bitterness· the companies behind the domes~c LLC's are -all foreign owned, In every 

case I'm aware 01 tney have been Spanish, French or Irish. 

The turbines which at best are 30% efficient {and in the summer when the power is 

needed as low as 10%), never produce anything resembling what they arB rated for. 

The power when it is generated is fed into the power grid·not used locally. The regular 

power companies are forced to purchase this electricity which can be 3,4, 5 times more 

expensive than what they are paying for conventional sources of electricity-who then 

pass these higher costs on to the consumer, The turbine projects draw large amounts of 

power ITom the grid to enable them to operate properly-and the wind industry will not 

reveal Iha lull power use required, versus the amounts thai may be generated. 

11 this technology were tnJly ma~ing a contribution to our energy needs, and helping ihe 

environment (it is saKlthat world wide nol one con~enlional power plant has ever been 

closed due to Wind power) then-m appropriate locations'sopport could be jUsUfied. But 

it's doing none of thaI. 

TIlerefore, again, I call on the committee, indeed all members of congress, to end this 

wasleful feeding trough for an industry thai has failed Ihe test of time·and musleilher 

stand 01'1 its own, or slop begging for handouts from \he American taxpayer. 
734 

Statement of Mary Burns 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.672

Mary C. Burns (self) 

30 Burke Drive 

Batavia, NY 14020 

(585)813-7040 

ebu rns7@rochester.rr.com 

Hearing on Certain Expiring Tax Provisions 
735 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.673

! am wnlinB 10 vok .. my OPJlO,lllon 10 the Production Ta. Cr.dit for industria l wind proJect~. I have 

ou!llnfd be low three fallades and t~r ee trulh. aboul Industrlll Wind . he~ project, are e~penslve, fall 

to cr .. alf ,Ianllka'lt Jobs a~d do nOl redIKe"eenhou.eaa' emission" The, .. ~nerg"\l proj.ct. hav .. 

alreadv received 3n ucesslVe amOunt 01 subsidies and they 3re still not competitive wllh Olher enel"/!Y 

lo rms. FinallY. tn.,e projects con , .. sldents and taxpayers mo,e financial burdens hroug~ Increased 

transportation costs and h .. alTh Issues. 

nun FcrlloclI!5 obout IndustrlOI W IM 

The first. and wer,t, fall.eyolindustrlal wind ;llhat it ,wuces urbon dlo"lde emissions. Jonathan 

Carte r .dd ''5'Nlt~;S <55ue. In T/je Moint Woods. a publfcatlon of ~e Forest Ecology ~etwo k. He 

note" 

Mountaintop !ndu,tnal wind will not reduce our 

COMumption Of 011 ~nd Will nOl reduce green house 

gas emissions. Only 1 per Ctnl 01 Ihe electricltv ln the 

United State, is produced by oll ..•. Threesep.r.te Sludles 

have now .hown th~t Tndustrial wTnd d~ nOl red(i[egreenlwu""IMse~. 

hup·{jwww.foll.ste(.ologv ... twQrII.or!!lpdf!/.lOfiles{!MW J~~ lOll lor es.pdl 

Plea .... 'top support!nl wind ~nergv co'poraHon. with govern,nent handouts. I WOuld like my !a~ money 

to be used for produc" ~nd s~rvkes th.t promote ron.~ , ... ~Uon and ene,1IY emdenC'(. Co" ... rving 

enerBY and m.~ing more good. ~n .. rgy lfi ent proVIde a Breater return on inve"mem and do reduce 

I'eenhoulf! easses. 

A second fallacy 01 the Indu5trial wind i, that il c, ... tes Jobs. for nample, EverPower promised the 

, .. ,iden" olHoward, New York nine job, at the new Howard Wtnd Project. The p,ojecl is now up and 

runn lnl! . nd only em~oy, on .. pe"on. Moreover, many worbrs ha ..... be .. n di,p laced by th i, re","wable 

enerlV ~ource. Willem Po,t wriitng for lh .. £ne'I!V CollKlive diKu .. e, Ihi. Wncern in a po,l dated 

February 241h. 2012 and titled: · V .. rmont le3de-r. 8~c~ Away from Ren .. w.ble £nerav GoalS' . He noles 

that: · Numerous studies in Spa in, Italy, Denm"~, Engl.nd. elc .• ,how, if S1.Jb'id ie. t;)u,e .ome jobs 10 

be crealed In the ineffiCient RE secto" Ihe mone.,. taken from the p,lvale economy tau,e, the loss 01 

about 2·5 time, thai many jobs in olher ... ctors .·~!P:I/.!hee1l.e'8Y.collecHye w.ml";""III~-

P.9"/77Wv.lmont..jude-rl·bad·awai .... &w~ e-e..'!.erC 80al ~ 

I re,pe"lully reque,t thaI lunds shouid be provided for program, that proVideenerEV emdenl 

applianc •• , home., window. and in.ulatlon. 

Tn. third fallacy of induStrial wind i. Ihat It need. more government fund., subsidies and ta~ br~akS' in 

order to ,upport thi. young, s,een industry. The American Wind AISociaUon, lhe lobby for industrial 

wind companies wa. in"rumental in e"ending the 1601 prosram lor B,een ene rgy companies based 

primarily on the promi' e. th~1 the indu5lrvwould creatt Il'Iou andsol job •. According to l.ntheJe.nne 

Dugan and Ju.tll\ Scheel.: in the WaliStreel Journal articl e · COSI 01 $10 811110n StlmulY, Easier to Tally 

tn.n New JOb5" 01 ~ebru.ry 24, 2012: "Wind com»ilnles wound up with mOrt than $7 billion of the 1603 

money. yet In dustry payroll, dKI'ned 10 75.000 la51 year from a peak of SS,OOO In 2009.' 
736 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.674

Plu~ stop Ira,.,derrinll Ihe lund. olthe United State. ta.pav~" to larelll'" and domestic wind enerlV 

""rporation •. 

Three rQ'U aboullnduur/Q/ Wind 

A fact abo\>l lnduSlrTal wind In, lalialion, Is that Ihe ""n"ructlon .. nd operBllon of wind la.m, l ltfSS ou r 

inlranrudure. e highway" ro ~nd brH:iges al the Unile<! State. ~re already in .. stale at disrepair. 

The propose(! roult' for many industrial wind project are simply 100 , mall and Inadequate to haodle Iht 

!faffje n~"ary 10 corutruCl an [!Idunr(al wind farm. Thele ,mall count ..... r<>ad, and l""t5 will ,equlre 

,ubIt30tial.ebulldlng In orde, 10 tran'port Ihe la'ie huvvwhldes thalwHl mo~e the naeelles, lower 

pe'llon, and the crane. In an article In Road, and Bridge" author Richard L. Kronick, polnti OUt 

that, 

A 'ingle pu, by any ofthe." load, can cau,e major damage to a gravel·surfaced road. 

In addition, many legal load. of concr ete ,ei)3. and gravela.e hauled in to construct 

wind f •• m,. To rompound the maue., in no.thern cllmale" wind·power companies 

waM to begin <on'trunlooa. u.!v as po"lble in Ihe ,p.lng·when .oad, ~,e altheir 

wuk"'I. u..,. ww ro d,b'ld, .. ~.cam/road m.,nU!n n~e...:j~m g!!!il:".\'!ind· ~ 

In ddlt on, there are prob em rel~t .. d la widening ur~., replacini dltche" moving and .eplacingsISI1', 

etc. a. well as con,t.uning entranceS te Ih" acee ... oad,. Are all of the,e co.t, truly 'Ecovered f.om 

IMe ~d ene rgy companlel. mo.t of which are aWned by fo.eilln s? 

InStead 01 allowing wind ~l1e'8Y companit' to dewoy ouriMrastructure, please use taxpay@( lundlto 

promote public lran.pon~llon and .ebulld Inadequate ,o~d. and bridges. 

A .econd fact about wind in>laliatian. l. that re.idents near wind tu.blne de."lopmenl' sufle. n""dl .... 

anxfetv, 10 .. al quality 01 life and i!lne"e •. Th .. m~dic.J 1 community l1eed, to treat Individual! wha will 

,uffer st.e ll and iIInels- l.om the coMtructlon of I~e turbine. with noiS<!, dU'1 and traffle. Residenl5 will 

t:>ecome III with the noi,. and shadow nk~er"eil ted by the .plnnlng lurblnes and will need to e~ help 

f.om the medical profenion. In a study of residents nUr an Industrial wind lurb lne project!n Au,lr.n., 

,eleas@d infebrua'y2012, researcM., found I~ •. t: 

Mo.e than lt1'Jj, of Ihe .e.5pondenIS claimed Ihat Ihey ~ad been ~eBa 1ve y aff~led 

bV noi~ f,om Ihe wInd ene.gy f. <i Uly; and mo,elhan SO'jj, "mode-r at ely· (3 5" 1 o. "very" 

(I 9t1;) negalively affected. Re,pondents aflecled by nol.e from the Waterloo wind en~'BY 

fac~lty ... ""rienced it an aver.lge 2 day, per week. 

I1JJzlb!... w.wlnd wato .o.sJdOCl.l 'ent aluatian o ·wind-f. r"...noise· Ik e'·,,....outh .u.tf~lial 

Pleo~ do not make more ""o"le III by .Iting wind farm, near their 'e,idenceo. 

A thl.d laot 01 Indu,trial wind Is th.tthey deSlrov habital. and wuken popul.\ian, 01 nd~nge.ed 

anima ls and birds, The estimates of bird nd bat dealhs al wind larms are becoming more alarming 

eye!), dav. 

The Ame.1C1In Bird Con~t\liln<;'/ (ABC). Ihe natlon',leadlng bIrd ""nsenta.lon 

or8i1niutlon. » Id todav (2/12112( thallhe bulld·out 01 wind enef8V PfOPOIe<! 
737 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.675

by Ihe federallov~rnm~nl tit meet a par1ment of Energy target of g~ner n8 

21m o(the n~t on's electricity thrQugh wind i>Dwer Is expetted 10 kill allust one 

million birds per vear Iw 2030. and probably signlfttantiv more . A8C considers the one 

million estimate. Which is based on ~ 2005 pap"r III and widely dIed by Ih ~ wind Induwv. 

~s likely , significant underestimate of bird mortalitv. 

ht!P,.i Iw W"W ~bcb rdS.OlgJnewl ndr~J!Qrli/'ele a. sJ l1 0102 html 

The implication o/H'II destruction of bi'ds and ball is eno'mou5. Witl>oul bats and birds, Ihe impact of 

mo.quitoes f'om rive,s. take. and wetland. will co.t the nation. St.t s. tOwnS and counties much mOre 

in term. 01 control. How much wHI Ihe noliol> I>eed to ,pend 10 cont'ol m!rulUilO inlenatlon. in th e 

lulure? 

Please do not u.e la.paver funds to build wind turbineslhal decimale endangered balS and birds. 

instead ,uPl>"rl 'esu rch to undemand and t,eat ·white·nose syndrome" in bats. 

I u'ge you to e~o the Production Ta. (,edit. the Inveslment Ta. ( r .. drt. and anyothe, federat .up~rt of 

indu,uial wind energy. 

Th.nk vou. 

Si"c~relv. 

Ma", Burn. 

SSS·S13· 7040 
738 

Statement of Mary Button 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.676

-I, M~'" Bu\lon, co.-owner of .. sm.1I aUIO repair I>op In Iinola, NV, respeGtf\lll~ urge Congress 10 e~tend 

th~ wind ~ner@y pmduction ta~ <fedit rP1C) as qukkl~.s po"ib . 

- 16 my unde"tandlng that the PTCdrNes billjon~ of dollar~ in private In v~ tment in homeg rown 

American wind power eacl> year. I wou ld like to <ee wind f. rms cON inue to succeed and sprud I~ 

p<>pul.ritV. and Impe to see some <n our area in the near luture - brin@,nlinconstructio njob., 

maintenance jobs, and generatin@revenuelorourcommunityschoolsandhospitalsover Ihe lite time 01 

Ihe proie'ct. In'feasin~ the amount 01 power t hat OUf counl", gelS from clean, Imme-grown .• Hordable 

reloOu"es 15"1' excellent thing fot uS to do - and thIs tax credit ptovides an joce~tive tor the wind 

indu>!f'/ to continue to do ju>! that. 

-I urge the committee to take up in extension of the win d energV production tax credit right awav. 

Relards, 

Ma",BuUon 

Administrative 8. ",",velopmenl Manager 

AJ Foreign Auto 

130Cherf'/ Sl. 

Ilhaca, NY 14850 

Home 3ddres., 

12SSi>orie, Rd. 

GrolOn, NY BOn 
739 

Statement of Mary Evelyn Smith 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.677

Production Tax Credit for Wind Energy 

Am.ri""n produo~d po\\,"" i~ ~""Ilf". wi$h 10 be ~ne r~' ,ndepend""L The PTe driv~ s billioru; f 

do1l3'" ill private inn'st",,,m in each y~",_ Wind fan", ern, ",v;13Ii,.., local ~nl1"nu"il;"" tl,n,ugh 

pmviding..mpl~ymerll hI tOnSllUl:lionjoh!i and m3lntenanc~ jobs. Rcvl/1lll<1 f()f rom",unlty s.:hool. 

3l1d huspitals '''''~r the Ilr~t;n'c "flhe projc~t is" wunderful result. p.,wcr II n ~ur~~u"lry getS fmm 

deM, hom.,gnm'n, a fT,)r(lahk rc!;t"",,-es is ~n e.'cel lenl th,n!! lilr u. 1<1 011 _ ar.llh'~ la~ c,..,d'l provides 

30 inc~.,.,t'\'c fll!' lilt wind ,nduslI), tu eontinuelO "" jU;.1 th31. 

-I urge Ihe oomm,(("" lu 13ite up an txlCM,un ufthe wind ."flllY prod...::t'(ln!alC errol! right ~way, 
740 

Statement of Marty Gardner 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.678

~ Waya a nd Meana SubmJu lon a 

Hono .... bl e Membe ... 

'.! 154 Hnrd",1:<' !we. S~n"". r1a nd , CA. YWl.i1 

Mail add,,,,,", PO Boll 3 5 7, C>trpintcrill, CA 93G1 4 

Ph "' ~' $O~ 2 

• /, Mal1~ Ga,eln ', a I'''. ",n .. nelI8_ye .. , ",.",,,. ,ofll •• Wlncl En e'il' Indun,y, <u~ndy ,u/dlnr In 

Summerland, Callfamla, , .. pomful/r' Off< Cotrtm. 10 ... ,. nd!h< .. ,nd . ... 'D" ptoduc,;o,,!<VI.,..<J;i (PTe) '" qu~ '" 

...... 

-HOW1, beet> In u.e Wind £M'I)' lnd .. ",y (or 18 yeo ... I ~ /Ned !Iot-oufI> "'"1ripIr .... ""' .. "f ",,',res....-.oi dioc""titluil)" 

0( til;. mode<t msinoll«! for .." ""'''<fl)'. I """'" tint-lNmd Ioow aipplin, It is for • ." jo/It in """'"focw,,"f, ,ort:I1II>CtIM. 

"''''''''''''n''' ~nd mil., "..,;pM ... 1 . uppo<"! fuoctm< "". to till< di<c""tinumion Of tile Pre. c....,rfiI IIIoIIId IMMEDliI TEl r 

tlt nd m., crt</it. "'" omit U"tiI j<1n b_,..,.. or o/in it ... pirM. 

-r.., h~ "' II<_~ ~"""t'" wifl>lh<: («It ~ PTe drl~ bi&ono ofdo/lors ill ~';VQt~ .,,,est.,,</1I., """'q'''''''' Arne""," 

W'Ind !'<'-' _ 1«>" I wad" UJlifam«> and Mlmln .,. and /0 .... ., til. m0l-9O', . and '" ma"1 othol com"",nities ,;"a 

"'en. lwork.d on ~ W .. d TultNn • • ond warch'" til • ...... munitin "fL"". ~"'" MO. .. ",,,, and 5<oon lo.\.e. }awo and 

mall)" 1I>OIe. I"OP ~ ,.. .... "*' of m., ,..,,!o£.oliotl tIIo/ til.,.. w,bO-I .. ~ - ,,,,,.l!U<tior> to'" '" r,...~ mo"""""""'" jol» 

;" u.e """ letm. and UItI!.t>""'C 10 getlelale ..... ".,. 'Of tII ~ con,munily Khools olld ho.~~<>Is O~ Ill. 11(._ of!he 

~'1ljoa. 11IC" """f!he """"'II! .f po .... 1M' "'" '''''''''I' ceu (10m cIeoII, ~"""'" affOfdobie ...... 1«0 .. on .. «,110m 

rhlnt for os 10 de - ""d It!II '''"' cudi! ~IO \OIde. on irt< .... 1iW (Of til. _ lndIIu'Y 10 ",, ~. to d. ;'" til •• 

"c.,.. ~. 

Mat"ty Catd"e r 

18.~ ". r WInd Ene'IY TKhnk!.n . od En" n . .... 
741 

Statement of Matt and Megan Richards 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.679

II) May2011 

fo: IJ.S. House Ways ~nd Means Commilll'C 

Subject: Hearing on Ccnai"n F.xl'iring Tax Provisions. the 11"f'C 

We, Man lind Megan Richards from San Antonio, TC.X3s., respeClliJlly urge the Congn's~ to 

n!end Ihe ",nd energy "rod"c!,on To.\ Cr"di' (rTC) as quickl)' as possible. 

M~11 Ri~h:u'd s Megan Richards 

1207 Snuwll~n Rd ~ 141m 7207 Sn()w(len Ru N 1411B 

San Antonio. TX 78240 ::;~n Antonio. 1'X 7~240 

m.richarJs8J(1fyal'!oo.com 
742 

Statement of Mattis Deutch 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.680

I. Muuis Deutch. u studc1\l 11'1 Oberlin. Ohio, urge C",ngress to e."tend Ihe wind 

energy produ(:\ion tilX credil (I'Tt)!IS quicl..ly as possible. 

Wind is "herc "c n~d 10 go from here_ Withoul II feasible ch.'an enagy soun-:e. 

w,' will hlll'e to bum fossil fuels Ihal polit,tc thcenvirollmcnt und cause huge In,;s of life 

when they arc extracted. Here. in O~rtin. \\ ~ bum ,'olli tn hem our buildings, und we are 

aboul lo switch to 1131uml gas. I hal'c secn thc dcstrucli,'c cm:cts of gas drilling and 

hydrofracking myself: I hal'e friends whos,' waleT <'ould be poi!;Oncd m uny time by 

leaking wells: but wc lml'e to gcl OU T cnngy SQmc"hcre. I rCongrc5.'S lukes away thi~ 

subsidy fllr wind eneTJ;Y, we "ill be sluck bclwc<'n a rock and a hard pl:lce, and we "ill 

be conlributing 10 the deslruClioll or our o"n bacl..·yard in OhiQ. 

Plca.<;ecxlend (he lax ercdit now, and don't wait umilthc last minute. 

Sincerely, 

Mmtis Deuteh 
f 


79894A.681wwoods2 on DSK499XVN1PROD with WAYS & MEANS

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744 

Statement of Meghan Kosowski 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.682

/, Meghon KOSOWIMo/ 2537 }f1Co.son 51 lYE, MiMeotJo,,"s, MN 55418, restJecl/uliy urge ConfJreu 10 extend 

the w'nd energy tJroducfion raxere dit (PTC) Immedio/I'ir. 

50 much of what COflgresl seems 10 dedicale lime 10 d~"ng seS!;"" k dismantling rhe work oj prev/wl 

se.sloM. Instead ofwai!lnQ unril the PTC expjrtJ ond work ,"ust be undertaken to ~O"e, tht 50'"1' Q,mmd 

again to ~-I"'lott ~ plea .... 0 ... rime, t nergy and money by~imply extending 1M /ax credit now. 

Billion. efdallorsln pri'lOte Investmenr In homegrown American w'nd power ""ch yeorore the re.uil of 

Ih~ wind eM"JY production toxc",dit. Wind ener~ ¥ production bring. con.truaion}ob., then 

maintenance /Ob! in the 10nQ term, ond generOle! revenue for our commllnity lchools ond hOl pital1 o"er 

Ihe li!e time of the tJfojecl. Increo.in9 the amount of fXJwer thaI our count'!' get. from dean, 

I!ome9rown, o/fordable reSoufee. iJ on excelle nl way to empioyAmericon. and inc<ease our oul'momy -

a"d this 10. credit provides on Incentive for Ihe wind Industf)l to do so, 
745 

Statement of Melissa McClennen-Davis 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.683

I,MeU .. o McClennen.Oavls . a pro/e .. or. ,n Te~o. re.pecr[lJll~ ur~e Con9"''' 10 eKlernJ the wind energy 

production to"credlf {pre/ ~s quickly as poJllble. 

The pre drive. billioM 0/ doil",. in I)rlVale In,",slm .. nt in home~'own American wind {JOwereocb )If'<If. 

The wind/o,ms In the northern part 0/ our SlOle brlnQ In CM<fruclionjobs or p,,~ and m"int .. nonce jobs 

in the "'ng I~rm, and gene,ating re""nue /orourcommunil}' over Ihe li/elime O/Ihe projea. The wind 

forms olso bring u. fJOwer. wMch we',e shari 0/ in 11 g,ow,n9 community. IncreosinQ Ihe ormlunr 0/ 

power tilct our country gets/rom deon, homegrown, offordohlf' 'BOUIC'" "l1n eJ(c .. llent Iitlng /or us to 

do - and this to~(redlt pro_Ides on InreMlve/or Ihe wind Industf)l to (ant/nil<! 10 dojust Ihor. 

rflonk youjor vour rime ond pie"se consider Ihl. ser;o".I~ . 

Melll.,o MrC/ennen-DoVI. 

Col/ege Slation, TeJ(QI 
746 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.684

1..,.,_-<j _r 

' .... Ul~""""" ,."m,,,4:4 ,,,, 

M,cl1ell~ Graham 

Mendlan Way Wind Farm 

1~091fon Rd 

Concordia, KS 66901 

mn:h~lIe .g f .. ham@adpr.DI;I!!l 

Heanng on Cer!a", e.."'flfl!! Tax PHI"'&IOIlS 

I, Mlchell~ Graham, Operati<JnsAdm",lstrator al Mt>ridlan Way Wind Farm in Concordia, 

Kan&<lli. rnpeClllllly 1I'l1" COI'Igfe5S 10 e~tend the WII1d energy product",n lax credit (PTC) as 

qll;ct1Y as possible 

I am wnting an Ij'll'lnt reqU"sl Qr~ suppor!,n 1I>;iend'!'Ig!he wind energy PTC before It>e 

end of thl$ yea! if at all poss~e t can see how the po,slbrl~y of this PTC nO! be'll9 eXlended 

MS elready nagatr.'ety affected my company"1I presence Ifll/le Un~ed Slal!!S WlIld Ene~y 

Dev~I0f'merl1 has slowedl 

We need 10 confinue tile drive IQr clean ,",.tamable erre~ v in the US .... Tills PTC will greally 

3&S1S1 in meeIlog some of lllese lOng term ambitlorllli Than~ you for you!' COf1Ii!defatioo In 

,enew,"II the PTel 

M,CIlel~ Graham 

~--
747 

Statement of Mesonika Piecuch 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.685

Hearing on Cenaio E~pirins Ta~ Provisions 

To the Subwmmiuee: 

For 20 ~ears. ta~pa~'l'~ heve propped ~p th'l' wind en'l'rgy Industry. DNplte the f'f'\iIny lens of billW:N1s of 

0011'" ($1~ billion last year) given to them via me p<O<lucton ta~ cre<lit. the more (tOean! ,nvestmenl tax 

credit and ollter I"" and rllgulal"')' p<""'5ion ~. as wen as klan Guaramees and outnght {lJanl!. t!>e 

Industry still comell t>egg'ng 

And eveo ,,1\8' 20 ~ea,s 01 s""" I:arseSll8, Ihe MU'tty can nOi show any mllani"llful be""rd ooncerning 

any energ~, poIIu~on. or carooo problem, 

Instead, r~ral eommuoffies Mve tleen left dlVldad. landSGilpes degraded. !lIra ana bat population, 

tj1,earened. and already IIwil'ldl,"II natural ~abi "!5 Oeslfcyed. 

It is irresporl!libie that dUllng the WOfSI b<ldgelillY CtI'liS f~ the Un.ted States S-1lCII \he Great 

Depression, you would eveo eopsitt .. r taxp,~et' we~are to the w,ne «1duStJy 

Ther. are no ccmpeHing arguments orfacts -which soppon 1m. notion thaI Wind and SIlJar in<luslne~ hne 

produced job, and fioandal booo to C<lmn1\ln'tits 

I urge you to END I!\e PrOdu<:tion Ta~ Credit, 1M InvestmeMl Tax Credit, ano aoy other Jederal $u~n 01 

industnal wind ~lIfgy 

S, ncere~. 

Me!lOnJk~ Piecuch 

P.O. Bo~550 

TehachapT Ca 935S1 
748 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.686

Stmcmt.'nt urthe Metal Construction Associntion 

berore Ihe 

SlIl)Commillec:: {In Select Revenue Measures 

COllllll;llee 011 Wnys and Meillls 

UniJeJ Simes I louse of Repfe~cnl"li\les 

"Member PfQposnl~ Rclateu 10 Cerlain Tax Provisions That Either I3xpir<.:d ill'21l II 

or Will Expire in 2(}12"" 

April '16. 20 12 
749 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.687

The Meta! Constructioll Assllci~tinn represents manufacturers. ucsigllers, installers 

and rdailers of meta! used in construction including energy emdcnt metal roofs. 

The MCA cilcoumges the cxpansion of metal construction by promoting the 

energy SlIving und SUSI;;Iinnblc qU;;llitie$ of it5 prodtlelS. We llri: seeking the 

extension of Ihc residential energy efficiency t;;lx eredit for met!!l roofs with 

approprinh.· pigmented coatings as contained in (25C). Th .. · inStallation of our 

"mol roof' technology SlIVCS l""nergy and provides a po~itive impact on Ihe 

.'collomy. 

OUI" Illeillber eomplIll ies have actiyely promOted ::md their customers have 

ben(:fi!NJ from Ihe mclal roof!ux credit thai was put in place in the 2OO5 statute. 

The MeA is a mcmbcr of a broader (2SC) co~lIition that seeks II1l encrgy clTicicncy 

tax credit for qualified products of 10 percent orllte purchase-(and installation) 

prkt· up to $ 1.000. Thc $1.000 uniform tax credit has the advunwge 01" simplicity 

and is set:lt:1 minimallcvcl to provide an cconomic ineentiv( for consumers 10 

retrofit their homes to be more ellergy etlicient while saving significantlimOUll1S of 

~ncrgy. While we support thi~ proposnl. we also continue 10 ~up rt thc extension 

III" our currCnl tllX credit as comail1l:d in (25('). Whml""vcr ta."I: credil approach is 

:Idopted, it is importmll to Ihe success of the program thaltherc be continuity and 

relillbility in the prog .... Jnl 10 providc both contmclors ~nd consumers ~ dependable 

pUlh forward. 

Economic lmffilct greoo! RQQf'rechnology in Home Rel1;ol1ts 

Using IRS lax data. il eun be demonstmkd thai the ntt economic impact oflhc 

cool rooftcchnolog)' tax credit has becn signilicant. Totu! spending on digibk 

metal roofs with pigmentcd coatings has increased from $ 191 million in 2006 \0 

over $2 billion in 2009. A long with encrgy clTieient air condilioner.lllnd fum<lccs. 

metal roofs with appropriate pillmcllled coatings are the f:lstcsl growing sector of 

home energy l·mcicney n.::trofil'i. Based on an economic ulodel dcveloped m the. 

Notionlll AS>ociation of llome Builders- thot ili~.c s I RS data. in 2009 alone, 

12,200 jobs were created in the construction und installotion of qual ified energy 

cfficient metal fOQfs in instances where consumcrs uti lized Ihe (25C) tox credit. 

These jobs paid out npproximotely $12 billion in wages for the workers lind 

appro)timmely $675 millioll in \"let business income. 
750 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.688

COllclu~k>t! 

Th.: tlata il1dic~tes Ihal the (25C) programs are working ill gcm:rul anti thm Ih ... cool 

ruof .:nergy ctTIciellcy tax credil~ in panicular m .. : otTering incentives 10 consumer.l 

10 save energy while creating thOll!;;mds ofjubs durin/!- a lime of high cmplo)'mcnl. 

The abo,·( s\"t~mcm by rile ~ktal ('on~ltUl1i(ln Associ"li()n was submiH~d on iu beh~lfby: 

E. Thomas Coleman 

Seni()r CmUlsci 

StinSQn Momwn II...ck .... LI..P 

1713 P~nn'yh'ani~ . NW 

Suite lIOO 

Wasnington.OC 2()()()(, 

PlI\Ine: 2Q1,'11-9\l22 

rcolem~n (f;Slin""n.com 
751 

Statement of Michael Blum 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.689

I, Michael A. Blum, 1328 SE 2 Place, Cape Cora( FI, 33990, respectfully urge Congress 

to ell/end the wind energy production tax credit (PTG) as Quickly as possible. 

The PTC dn'ves billions of dollars in private invesimt:ln/ in homegrown American wind 

powereaGh )leal: I "01'18 seen the wind farms near my son's house. They have helped 

to revilalize his community - bn'nging in constf1Jction jobs at firsl. and maintenance jobs 

in the long term, and generating revenue for his community schools and hospitals over 

Ihe lifetime of the project. Increasing Ihe emount of power that our counlry gels from 

clean, homegrown. affordable resources is an excellant thing for us to do- and Ihis tax 

credit provides an inventive for the wind industry to conlinue to do just thaI, I want my 

grandchildren /0 have clean air to breath and clean watt:lf 10 drink. Moving away from 

pollution creating energy production must be a priorily, and this credit will aid in thai 

goal. 

-I urge the committee to lake up an extension of Ihe Wmd energy production lax credit 

right away. 

Sincert:lly, 

Michael A. Blum 
752 

Statement of Michael Geline 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.690

United Slales HOllSt' ofRcprescrlt31ives 

Ways and ~lca"s Committee 

Hearing 011 Cenain E~pirinl! Tax Prov isions 

!'.Iichad G~lille 

b64 Slerling Ct 

DcKalb.IL60115 

(773) 718-7880 

~'(:h!lCal1\pfiT<'@ j!l1\ail.c!l!!) 

I. Michael Gelin ... a pl'{lfCS50rofmuthcmluics in Ddl.alb. Illinois respectfully urge COl1W"ss 10 

c.><tcnd tile wind e.",rg)' l>rOductioll tax "",dil (PTC) as 'luickly ~ l"'S<ible. 

Electricity gC",","'led from "ind turbines is dean. H has nO ill1pact 011 the n3ri ll '~ already 

strelched f"'sh water reSQurees, aM il dQt!s 1101 ",lca.", m .. rcUl)· or sulfur-diosidc imolhe 

cnvir61lment. h docs oor require Ih~ c"tnIClion. processing. or t"msportlltion of any f"el. "m.l il 

docs 110 1 produce W"cnhouse I!1lSeS. 

I bclic\"elhese (acts ,'as;ly jusI;fy a tal< brnk lor the w;"d i,ldustry. 

The st:\tcs of 10"" 3nd South DakOlsl\.wc alr~ady d"m0I1Slf31cd Ihal il is po5~iblc 10 g"",,,mc al 

I.-a.<r 20% of OUr dectricity frum wind. Thi. PrOges~ 111. bc:~n made in a ",Iati\"dy sllor1pcriuo.l 

of lime and againSI compelirio" frolll fossil f""ls ,,·hidr receive large , ofi"n hidden. subsidies of 

Iheir n"fl. Til"" wilh a 10lls-tcnn favonblc tax policy. tr......-c is linle q"c~rio" Ihat IIle "ind 

irt<luslry could reproduce this fig u", narilll1wide . 

Ir is unfortunal~ Ihal cert:r.in Members o f Cong.r<"s" eire tO~1 as rc3sonlo di>continw Ihc PTe. 

Beyond rhe tens Mlho"AAM~ of jobs 11101 "ill be losl immcdiulCI~ Wlhe I'TC cxpirCli. 1 cllnlkng'· 

the mmille~ 10 pul a pric .. · On g-I~nn h • ."ahh problems c~ "s.::d by p<llhllion. nrc ['TC is 

cheap by comp~"iwn. 
753 

Statement of Michael Mulcahey 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.691

Nanle: JI.lidmel Mukaot')' 

Addrl'ss: 119 M~pk Street I'u" AII~gany, I'A 16743 

Phone Number: 814.ii42· 7573 

Co~ ta ct E·m~il Addrl'SS; nllnukaheY@li1omed ~,~C1 

Title of Hcnring: c~ring Dn C'c"nin E~piring Tnx ProViS;0I15 

I. Micha..:l t"h,lrnhc),. ""'I"'"tfull), ur!!~ Cungress to e.xttnd Ihe ren"w~blc cllcrsy/"ind 

energy production lax cr~-dil(I'TC) as <juickly as- possibl~. Ourl"Ounlry and outen"ir<)nm,.-nt 

~annol afli"J to conlintIC' oli i~in!!\ f~~.;1 fuel> I" ",~el Qurencrsy nee.!,. 

Cost is and should be pm of the d~,<=i$il)n mukin!.\ pl'l)Ce<s un whe!her or nol ren"w~b!~ 

"ncr~y proj<'<=lS continue 10 ,,-=iw guwmlll~nt sopl"'rt. I c~1I you attention to a 20 ]] published 

p<"CN"vicw~-d sludy from the llarvam Mc-dical School which estim~wtl thai the full lire cycle 

elTects OrCOlll are costing the US public a Ihim to a halfofa trillion dqllot'.\ ann0311y (OVlT 

US$I.OOO·pcr year for nwy Am~ri~"n lIlall, wumall ,md ~hilt!). E'lin~11~ frum tllis Har,'art! 

study efT<'Cli,'ely (\Qubk'S to tripk'S the pritt ofdeclricit) frum cO:ll per kWh. 

The reportS cumpreho:.nSil'l> n:vi,'w fuund th~t lh!: best estimate for the tutal ceU110mi~811y 

<ju~nlifiuble costs. based nn n cun;;o,r\I:I1;ve weig,hting of many ()ftlle tud~· findings, umountto 

some SJ4S.J billiun. adding clOSC-lu !1.8~fkWh uf el<"C:lritity gcm"l'"Jt~d from coal. 'I'he PTe at 

~Ix!Ul 2.JdkWIl rtpl'iffiCn\$ an c~cellcnt re1Um no il1vC~lmetll and indl..,d ~ signilkant I"'"ion of 

Ih,!, 11.S(/kWh of eleclritil)' g~l1~r3tcd fmm cool is paid "il0 g(>~.mmenl fnods through heal1h 

CMC CO~l~. 

Tho:. repo" li!le is "Full ens! ~ecoun iog for the lif,' c)'ele of coa l" and ,va, pubtishcJ in ltoe 

Annals orThe New Yoli; Acadclny OfScicnces s~uc: EC(1logi~ 1 Economie~ l{c"iews February 

2011. 
754 

Statement of Michael Shaw 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.692

Oale: April 24, 2012 

TO: U.S. House Subcommittee on Select Revenue Meil$u.es ~Commlttee on Ways & Means) 

Rf: Oppo.ltlo., 10 III~ PTe ExI n, on 

I urge you 10 wo,k 1011111 vourcoll 3!U~< 10 .utile tll.l lhe ,enewlbte ene.gy produCllon la. c ... dit !PTq 

I. ~ bailout 10. an 'I"dunry' whicn can·t and won't pp.fo.m witnout the American peopl .. p'Ving thei. 

wav 10 profit. 

·Gr .... ., job<;· h., b .... n •• ham countlns lob<; '" remot .. ,y connect .. d if al .ll lh.t It·, II joke. 

8e honesl about the d .. Wuction C3us .. d bV 8'8 Wind lor "'inlmal oulputs of !X'wtr At 25·)0 percenl 

aV8. of r.t .. d outputlhl. I •• failed bu.ine" paid fe. on th ~ b.c~. ef citi, en. who .... . .ead~ g1\l1n8 Big 

Ojl .ll th .. brealto III ..... want. 

Governmen~ ;vound the werld ar .. beginning to ..... the t,utll. The U5 want, to be the la>! to 1\110101. 

Thank VOII fo' vour consideration. 

Name: Micha~1 Shaw 

A(klrt'S" P. O. [lQ:I: 6318 14, ulnai City. 111 96763 

Phone Nurnbcr: 808-565·9010 

Coniaci e-mail Addres~:Shawdm @a wn.urmc.rochc~lcr cdll 

Title ufHearing: h.".u"illgon CCrluin E."tpiring T3~ Provisions" 
755 

Statement of Midwest Minnesota Community Development Corporation 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.693

House (ommltt~~ on W~~s and Means - 5elett Revenue Measures ~ubcommillee hearjng on Hearing 

on Cena'n u inn lax Provi,jon. 

t. Conta<;l Inform~tlon 

Afien Kangas, President 

Midwe<l Min ..... o'" Communlly Develt>pment Corpornl;on (MMCDC) 

119 Grilv,tone Pla!a, Suite 100 

Detroit La ke" MN S6S01 

218·847·3191 

!..k.1 !!l1..!~dc.co m 

II , ""rpan ofS ~tement 

To support exten,ion 01 the New Market, Tax Cr~dll, which expired on D<>cember 11, 2011 

and KII26S5, the New Markels Ta. Credit [ltemlon A~t or 2011. 

Itt, NMTC Hi.tory 

Th .. New Marken Tax Credit program i5 Ihe product of a bi·partisan eHort between then 

PreSident Clinton and then Speaker Haslen 10 ,evitall:e urban and rura l communitie1 by 

u~ng lax incenU\ffl.lO allract p'ivale .eelo' capital. 'alherlhan federal 8rants. MMCOC has 

ploV'-'d over $300 million 0' the", la. edi ~ for a wide va rlely of u.e. and has crealed 

el8ht 'funds' from whkh we make loan. at largel much 'f"aner bu.lnesse1. Thu. we can uSe 

this program 10 finance large bu.in.",e. or,mail one •. 

IV , Benefils01 NMTCs 

a. NMTC5 have drawn n~w plaV~rs Inlo making IMeslmenlSln projects Ihat we nnaflCe 

and has provid~d u, the abilily to finance mo", and la r,er tran,actlons. 

b. The prcg",m has been particularly eHec iv~ during the "'cent economic downtum with 

lenders 3f\d inveuo" both 5~iltjshaDOut making ,'ther loan. Or investments. 

c. As the industry beromes more 'amilli! with the pr08ram the delive .... sv!tem has 

Improved dr.tmatk~lIy and ,o ha, Ihe Interest by entities ""eking an allocati()n. -S ince 

Ihe first "iloadon In 2003, overall demand foreredits has e""eeded th e amount 

available by over 5190 blll,on; 

V. Return on IIWestmen! 

As Congre •• ,on.ide" e~tending NMTC, il l, impo" antlo .on.iderthe '0.11 of the 

Credi(, in lernU of reve nue I0'80ne. By any measure. NMTC providUi !ubstal'llal 

fl11urn . Given thaI the impact of Illese investments is in low· Income census Iffel5, Ihe 

impact i. dir eued 10 amas with the greatest need. 

VI, Targeted Impact of NMTC 

All NMTC t .. n,anion, are in targeled commu"ltle s; mosl of them hard h,t by currenl 

ecortOlT'llcd"umstances. All NMTC investment. be nefit bU5im .. !e! ~Ied in 10 ... 

income communities where poverty rail'. iff 20% Of mare and whe re income. do 1'101 

e~cud BO% of area median. There is a prov]slon to encourage fnvutJngln rural arus 

which oHers distributiona l balanc e 10 lhe proKram. 
756 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.694

VI, SUPPDrt fDr HR 265S 

Ttle key cDmponents of th .. New Markets tax Credil E)(\Bn>;Dn Act are: A long le,m 

exlension-S vears, an increase in Credit allihorily-S 5 billion in annual CI~d l 

aUlhDritY and an hempliDn from Ihe Allernili~e Minimum TaxlD' NMIC inveslments. 

Ttle,e is enDrmDUS d~mand fDr N~w Ma'kels lax Cr~dIU. Sfnce Itle prDgram WilS rDlled 

Dut In 2003. tlen,and lor NMTC.has e~ceeded $225 billion. A tDlal Df $33 billiDn in Credit 

has been ~V<lilabl ... Jurtas ;mpon~f1I a, tt> .. demand iSlh .. impaCllhal NMTC has had 

Dn .. wnDmkally dist'e"ed wmmunities. BilliDns Df dolla" has flDwed to communities 

traditlDnally lelt out Dllhe investment mainstream and hard hil bv the recessiDn. 

Examples ofttle businesses w~ tlave asslned indud~: 

A Veteran', Museum in the smatllDwn Df Perham, MN 

An expanded tractDr productlDn facility In SDulhern Minnesota Ihat reo 

dDmesticated prDductiDn DllraelD(5 frDm France 

A n .. w unit train loadins fadlity 10 be built in the ,tale of Washington 10 

mlnlml!e semi truc~ traffic ilnd IDWer transpDrtation roSIS 

G, .. at .. r certainly regilrdinS the e.istence of Ihe credjt will h .. lp investors and ta. credil 

aliDtalees 5usutn the i~fr~Slluclure necessa1)' ID Implement the prDgram. 

Exemption f,om 1he AMT provision. will encoufilge new, and ,malier, investol. imo 1h~ 

prDgfilm. With added CDmpetitlveness mDre cipllal wlll flow intD IDW-inCDme areas. 
757 

Statement of Mike Livermore 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.695

Mike Li\'t~nnorc 

10118 ~slieSI. 

Silver Spring. MD 20902 

!. Mike LivcmlOrc. Web Applit'ation l)evelOp!:r in Silver Spring. MD respectfully urge 

Congress 10 extent! thc" ind cncrg}' prOOllctinn to,":' credit (PTe) liS quickly as por.csiblc, 

'nIl.' ,'TC drives billiuns Ill' dollars ;11 private investment in American wind power each 

year, I have seen wind fanns rl'vitalil.e l'ommllnitics in Illy - bringing in construction 

jobs lit firs!, and Illainlt:nonee jobs in the long leml, Ulld generalillg re"enue for our 

community schools and hospitals over the lifetime o f the project. Increasing the alllOlml 

of power that <Jur country gets frnm clean, homegro'\n, aflordahlc resources is all 

excellent thing for us to do - and this tas en:dit provides an incentive l'or the wind 

industry to continu<! to do jllslth~L It is very important to keep wind tlltrgy growing ~t a 

fast mle into Ihe foreseeable fUll .. ", until fossil fud sources can be retired, 

I urge the commillec to take lIP an c.xlension of the wind energy production lax credit 

right :",ay, 

Since",I},. 
758 

Statement of Mike Long 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.696

Mike Long 

Energy Consultant 

Box 433, Silverton, Texas, 79257 

Hill. Ph. 806.847.2617 

!nlutlg@midplaint.coop 

!learing on Certain Expiring Tax Provisilms 

Dear Honorable Committee Members: 

The fact that the Chinese are now ahead of the U.s.A. in renewable 

technologies is disturbing to me. As you well know, their government i~ 

pouring billions of dollars into wind and solar technologies. The 

Chinese are now establishing themselves as a dominant fuctor within 

the American solar market. I am also aware or several wind energy 

projects on U.S. soil sponsored by the Chinese. 

The lack of certainty for the PTC extension is greatly hampering the 

American renewable energy market It is an injustice to this energy 

sector that tax cred its are not permanent. If the PTC is not extended, 

then government assistance to all energy sectors shou ld be 

discontinued. Wind energy, for example, could compete with other 

established energy sources. if the playing fields were levt'ied. 

This is not the time to cater to special interests in establishing present 

and future energy needs for this country. With our growing population 

and technological needs, we need every avenue of energy sources. I 

respectfully urge you to extend the PTe for at least 10 years, or make it 

permauent. America needs renewable energy. Advancements in 

renewable energy projects will create revenue and AmE'rican jobs. 

Thank you for your consideration. 

Mike Long 
759 

Statement of MJ Swierczynski 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.697

Name: M. J. Swierczynski R.R.A. 

Organization: 

Address: Sicklerville. New Jersey 

Phone Number: 856f304-5986 

Contact E-mail Address: mswvac@gmaiLcom 

Title of Hearing: Chairman Herger Announces Hearing on Medicare 

Premium Support Proposals 5f29/12 

Dear Chairman Dave Camp. 

I am a Radiologist Assistant (R.RA) residing in New Jersey. I am 

writing to alert you to a serious problem facing advanced-level 

radiologist extenders in my profession and all Medicare patients in 

need of quality imaging services. I respectfully request that you enact 

legislation that would resolve this situation - H.R. 3032. the Medicare 

Access to Radiology Care Act, as it will directly help modernize the 

Medicare benefit and improve Medicare's long-term fiscal solvency. 

Please read lI1e ORA Issue Briel" tlelow. II Will further explain the radiologist assistant (R.A.) 

profession and whal H.R 3032 woold accomplfsh. Currently 211 slales recogniZl! tile Impot1an~ 

of radlOklglst assistants in lMe derlVery 01 medical Imaging care. but gIVen Ihe lack of federal 

rKQgn~io . CMS fie nol able togi.I! its tleneftciaJiI!S ac:c..s5 to Ihis nolre. 

Reps. Oave Reicherl (R.WA). Jim Matheson (O.UT). !'e!e Olson (R_TX). Bill!'ascrell (D. NJ). and 

other CQ,sporlsors have Int<oduced H R 3032, which would e.pfessly recognlz.. the R.A. as" 

non_physician provider under Medicare. Under the bm. ala!e law would govern scope of practice 

and physid~n sUpI!rvfsion levels lor procedures per10mtfld by RAs. Only radiologists would bW 

the Medicare progrnm lor RA ""rvices, but the ... rvices performed by an RA woutd be reimbu rsed 

at a lower rate than thaI 01 rildiologis!e. Medicare has already realized the COSI saviog benelil 

thet mid-level physician e)l;1enders provide and passage 01 H R. 30J2'Would enable Medicare 

benetlciariel' aa:ess 10 8xperlis.e and services that radiolog fslsssistants provide. Thf5 proposal 

enioys the fuP support of everyone 1n the medicat imaging community. H.R. 3032 undoubtedly 

preserves patients' access to radiologV care, medicat edUcation programs a"l! jobs end wlH no! 

Increase the lederat deficit. Iflope I can count on your sUPpOrl as a 00· spOnsor 

RA l&5ue Brief. Current MealCare Policy Limits Options lor Provid ing Accees to Quality. Sate. and 

Co~t·Effeetiv e Medical tmaging Servk:o~ 
760 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.698

Issue: The rlS,ng detn3nd and Clinical need fOf timely medica! ,maglng services and the 

Increased comptexlty 01 radiologic studies have piaoed unsustaInable pressure on our health care 

delivery system, lirniUng access to quality care for Medicare benefrciatiea. The s~uliol1 

developed by natlonally·reoognlzed Ofganlzations· the radiologIst assistant (RA) ··requlfes 

appropriate !ecogn~lon by Medicare. 

Solution: Amend the Social Security Act 10 (1) perm~ radiologists to uti~l" th .. services Df 

radiolog,st assistants which the mdiologist assislants are legally authorized to pertorm under 

slale laws and under the cond~klns Ktablished by the state: and (2l reimburg,e tor services 

perfCH'med by RAs at 85% of the amount otherwise applicable for services when performed by a 

phy sician. H.R. 3032, the Medicare Access 10 RadOology Care Act, would accomplish these 

objoctives. Introduced by Rep&;. Reichert (R·WA), Matheson (O·UT), Olson (R·TX), and PasclfIli 

(D-NJ). the Ieglslati<Jn IS bipartisan .. nd has \he. full support of all stakeholders In lhe medk;:al 

imaging communiI)' 

BackgrDund: As far baCk as 1996. !h .. U.S, D .. partment of Defense re<:ognjzed the need /or an 

advanced practice radiologic te<:hnologi5tlO al leviate problems caused by Insuffocient numbers 01 

radiologists in the armed fOIces . As demand increased for radiology services and the &hol\8ge of 

radiologists worsened. the American College of Radiology (ACR), the Amerocan Society 01 

Radiologic led1nologists (ASRl). and the American Registry of Radiolog'c Te<:hnolog,sts 

(ARRT) collaborativefy developed the COIIcept 01 the RA - a radiographer with additional 

education. specialired clinical t'aining. and advanced oertillcation. The RA Is an advanced·level 

radiographer who a'iSislS, but does not replace, Ihe radologist In the diagnostic imagIng 

environment The RA must complete a rigorous academic p'ogram encompassing a nabonally. 

recognized Cllrriculum and a 'adiologlst·directed clinical preceptorsnip and must pass a 

nationally.recognized certificaton e.aminaticlfI. An RA educational program must award a 

baccalaureate degree at a minimum and educate students 10 perform diagnostic imiging and 

inl .. rventronal .adiology procedures with'n Ihe RA's scope of practice. Today, 13 un ..... rs~ies offer 

educa~on and supervised Clinical !la,oi"l! for the RA, and 29 slates license or cert,fy RAs. An RA 

can be certified by the American Reg,stry of Radiologic Technologists as a registered radiologIst 

assistant Of oy the CertifICation Board fOI Radiology Pract~ioner Assistants es a radiology 

practitioner aSSistant RAs always practice under tile on· site supervision of a radiologist, thuS 

ensuring high quality care. Their advanced educabon end training enao., them to perform 

aS5eSsJm!nts and procedures (e.cludillll interpretations) Ihat !radibonelly a'e performed by the 

radiologIst ACR, ASRT. and ARRT have worked togelher to ensure c:onS'Slency in educalJOn. 

scope of pracrice. end cen'licaoon standards fOI the RA. The Society of Radiology Physician 

EXlenders (SRPE) joIned these efrons as an o'ganinlloon advancillll COfltinuing education anll 

pfofesslonal development for the radicNogisl assistant. UnfOftunale'Y. current Medicare 

regulations limit the functions and dllties that may be perfonned by RAlI. largely because 

Medicare doeS not .. xplic;UY recognize RAs as a separate class 01 practitiOoers. Inslead, 

Medicare currently views RAs as being equlvalenl 10 radiologic technologists, who do not have 

the education, lraining, Of expertise that RAs have Thul, the Centef'!llOl Medicare and Medicaid 

Services (eMS) applies the same supe ..... islon requirements to procedures performed by RAs Ihat 

it applies to procedurel pertormed by RTB. For example, CMS requires "pe,sanar supervision 

(where Ihe physician must be physically preSenl in the room) lor certain procedures being 

pelformed by RAs or radiologic technologists, Application 01 this standard to RAs ignores the fact 

\hat the majority 01 states (81 well a! ACR, ASRT. SRPE and ARRT) ha~e determined that RAs 

may salely and elfectively perform these same procedures unde. "direct" supervfslon, where a 

physician does not need to be present in the foom when The procedu'e Is perfonned, as long as 

he Or she fs physically Plesent in the ~o~pil8l Of office luite, Thus. Medicare's restrictive 

lupervl~lon requiremenl$ orre controrry to mO$T5tale$' soope 01 practice requrrements and 

$upe ..... lslon Sl8ndards for RAs and prevent the elfective use of RAs In ho~pit"l and radiology 

praclice t1 lng~. If CMS permits RAs 10 furnish caN:! consistent with tI1 eir stale-Spe<lifled ope of 

praclice. radiologists will have more time to review and inle",rel medk;:al1mages and will be 

avallabH! for more c:ornple. proeedures and consull8ttons with refurring phvslcians. This would 
761 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.699

sognif.cantly Improve efOOiency, Medica"" t>enefldaries would receive mo.e timely imaging 

5efVices and diagnoses and higher quality medical care. II would help resolve manv challenge'S 

IiIced by t>enef.clarWi!s In accessing care In rural and undi!rserved areas. We believe Ihal 

pIlyso:ian 8upervision requirements for imaging procedure$ performed by RAs within their scope. 

01 pracr'ce slIould rallect what the RAs ara permitted to do under their respec1,ve stala laws as 

well as the states' supefVi!ion standards whare applicable. Where the stale law p.-ovides IMaI Ihe 

RAs ate subject to the "direct" supefVision of the radiologist lor certain p.-ocedurea, Ille Med;eare 

program should apply IMI supervision Siandard as wetl, Applying a reporting modifier or 

procedures completed willi participation of an RA would distinguish them from prOClldures 

perlormed by radiologists and would assesl with qualit)l monitoring. In addition, app~ing an 85% 

reimburnement level for RA·perkJrmed services oilers the potential for Medicare cost savings and 

would be consistent wolt) hOW other non·pIlys;c;an providers have been ifeated under Medicare 

Finally, this legislation would enable Medicare to m&et an Important objeclive 01 a relormed health 

care system - to lower co~ts whi le improving patrent acce$!l Ihrough Ihe U!)l!. of Qual;fHSd nonpIlysician p.-oyiders where possible. 

Sincerely, 

M. J. Swletczynski R.A.A. 
762 

Statement of Molly Ross 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.700

Mollv O. Ro", Presidenl 

Dell ..... RoyaltyC:omp~ny, Inc. 

LMA Royallies, lid. 

P.O. 1449 

caule Rock, Colorado 80100\·1449 

()03)688·1553 

M,onlS1S@ _~ ~oo .t OIT' 

Tille of Hearing: Hearing em (eftain upiring In provision!" 

To Whom 11 MaVConcern: 

I, Molly O. Ron, residing In C;I$lle Rock. Colorado, respeclfully ask Congress 10 extend the wind energy 

prod"ction t;l~ ert dit (FTC);os loon is poss;bl~. 

I ~m r~nn ing Iwocompanles Ih.1 ~re mlner~1 managemenl compa nies, lirgelV leasing to h~ o il and g;os 

IndUSlry. ind my gr3ndlatlle; was a Permian Basin Pkmeer in Il>e IMe 19205. I've also been involl'l!d In 

renewable ene'BY Initialive s 10' Ihe pall 25 yu,s. 

The,e/ore, I am very I~mili ar wllh Ihe ta~ credits ~nd code. thai promote both lIyd rOCi!rbcm and 

'Mewable ene.IIV, and allo awil.e 01 whalls 10inK On across the globe in the development 0/ neW 

ene'HY lechnologies. The US is now in the lead in renewable ene.IV deployment, thanks 10 these 

in(eolives Ihe lilSt lew years, but we will be comlllelelV overtaken by China and othe, countrieS unlen 

we focus our aUenlion on nurturing me"" busi(les""s. I he~, ~II the ~rKumenu ~boUI the 20,000 )ob5 

we WOuld lose il w~ don't do th Keystone XL pip~lioe projea, bUllhe wind l(ldustry los ... &0,000 plus 

"v"ry time we ,emove th .. "" tax credits. 

A5 a businesswoman. I fully rt'ali'e thai we need 10 livl!. wlthin fiscal re~lralnts, buIll makes no economic 

$ense 10 me thai an Indu llry sucl> as mis. which p=ides lens of tl>ousands of jobs. and drives billions of 

dollars in private inve5lmenl.lInd which. once the in//iltructu ,e is built. w;ti requl'e nrc subsidies or 

credits, shoukjn't be promoted and 3sslsted In gainins whatrould be workj domina""" for US indu.try. 

We have always been Ihe wo.ld'sleader In Innovallon, I .. chnology and Ihe creallon of busine". and au. 

Innovalive lunding mechanisms have been the.enllY 0 1 th e world. I think we need 10 be very p.oactlve 

in thln~in8 about our ""e'BY luture. and conclude that the US should lead Ihe world In Ihe development 

and deplo~mentoflhese new .enewable "MIgy lechnologles_ 

Pluse consider serjously qulc~ly ,,'lending th e PTC on wlnd_ Thanlu SO much fo' you, considera tion. 

Respectfullv, 

Molly 0_ Ross 
763 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.701

Ma y 10, 2012 

Dear RepresentaUv e PaLllSer'l. 

... iI. Mortenson 

roo",,"""""'" 

!,I . .... Mor1.~."" n, 

'1"00 "'" ... """ U"" NQr1I1 "'_pol", '-IN ~U 

M'.... r6l ~2 22 00 f.. 16J.2S7 JO _ nwte<>_ com 

I understa rld Ihal iI Ways and Means Subcomm,tlee Hearing on Certain E~p ring Till( 

Provisions wil) be held later today. in which you will likely hear froll) your colleagues 

about the wind energy production tax credit (PTC). As your constituent, and on behalf of 

Mortenson COrlstruction, a Minneapolis·based, family-<lwned company and leading 

renewable energy contractor, I strongly urge you to support the PTC extension. 

The PTC extension IS 'oIilal to our organi zation and the 2200 employees cul/ently 

employed with us. Due to the lack of a PTC e~ enslon 10 dale, we currently have no 

contracts pending to construct wind farms in 2013, The lack of reinstatemel'1t of the PTe 

will slgnjlical'1tly impacl the livelihood of hundreds of emplovees, sub conlractors al'1d 

other industry paMers BV supponing Ihe extension of the production ta~ credits you will 

save jobs and help sustain the delivery of clean rel'1ewable energy throughouT Minl'1esota 

and across the ~oun ry , 

Thank you for your conSideration, 

Sincerel~ 

TIm Maag 

Vice Presklent and General manager 

Morten.on Construe lion Is a U.S.-bu ed. famlly-owned construction company 

ba$ed In Minneapolis, MN with over 2200 lull-time employees. As one of the 

leading renewable energy contractors In the county. Mortenson has constructed 

o ver 120 wind project. to date, 21 01 which were built In 2011 alone. Due to the 

lack 01 a PTC erlanslon, we have no contracts pending to construct Wind farms In 

2013. which wilt Impaclthe livelihood of hundreda of amployaes, sub conlraclors 

and other Industry partners across the country. We Implore out legislators to aet 

quickly to ralnstate Iha PTC to lIvert the cr1ppllng Impact to our tabor force and 

the tong-term growlh of our Industry. 
764 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.703

TI!Mimolljl of 

Suzanne Hutchinson 

Executive Vice I'resident 

Mortgage Insurance Companies of America 

1/1 ,mpptll'l of 

H.R.1018 

Legislation to amend the Internal Revenue Code of 1986 to 

make permanent the deduction for m(lrtgage insurance 

premiums 

Prl!seflll!tllo 

The House of Rel)resentativcs 

Committee on Ways and iVleans 

Subcommittee on Select Revenue Measures 

Apri126,2012 
765 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.704

Chainnan Tiberi. RMkinl!' Member Neal. and members oflhe Sulx"OmmiHtt, Iha"k you 

fflr lilt oppl'rlUnil) IlIttslify in ~"PflO<1 of fl.R. lOll!. Itgisl,,!ioll in!rOOncw by CMgrcssma,1 

Nuncs and Cong.rcss",an Cm" ley 1<1 am~"d the Jmcnlal Rc"c"uc Code of 1986 10 111Qle 

p:nnQn~,,!!l1e deduction liy mongag.c i11s1,runcc prcmium~. 

My '~1noe ~ Sllnnnc HUI~hin~oll . ~rnll am ~<xuti, c "icc p~ident onlle Mo"'gag~ 

sur~"cc Co"'ra"ic~ of America. 0<1 "hOSt t>ch:,1f r am ICSI; fring.. 

Th" dcd"",ioo fOf ",ong.gt ;nsurd"ce premiums b:tS pruV"!lIO be a critical 1(",1 ;" 

lowering!h.:: CO~I <1fl\oJnC\)wncn;hip for the low alld nlo.lem(c InNnle honlchuy= 10 whom the 

dcd"~ti"" is limited. and in m..kiu:.l 'non~~W ;nsu",ucc n'<Jre atlordablc. The provisi'l!1 has 

re,ullC"<i in an aw~eo ~ppruxinon\ely S3S0 in annu.al savings pc!" r"OIily. a ''<:1)' ~igJ1itkam 

sum for f.,nilies or li,nit~d "'''ans ~ru"ling!o .fford Iheir pieccofthe America" Drc.m. 

Mon.."O' ~r. accord;n~ to lJoe l"t~nlaJ Revcnuo S~",ice. in 2009. tJo~ "'o'\gage ;"su"'nc~ 

premium dcduc[il)<! wa~ da;med on J.l3miliiOfl ~~~ relUn1~. Ofll1(1se I~~pnyer.<. the majNitl' bad 

inwm~s willet· S60.000. In lact. 01"811 tJoe lax prm·;s'nllS which ~xri",d .1 th~ ""d 01"-;'011, \1n ly 

(h~ AMT"p:olch alld Ihe deduction r()r H3te and li)ClIl sales lases benefited ,gnifitan(1) 011)'" 

individuols. and no expired provisions li",ited 10 low and moderate income indi,·iduals. as t.he 

tkductiwI for m"nWll:!~ insumn~e premium~ "'lIS. pt"<Ivid..-<l a b;I:!:!<T financial ~I tt) ta."<[1.1Y01"S. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.705

Oy ~equirinG mongaJ,;c in'iur~"cc, low 3nd mQde,m" income homcbuY~Th 3'" ",uch !).,l1L ... 

po!ii';on&i 10 obloin 'h .... loo"~ n...,tkd 10 purcha>e bom<"i for Iheir fQmilics. In lurn. Ihal mongo!;.c 

ill"lU"iInc~ provides much ""cdc"<i SUpP"" 10 uur monltag" nla,I::cI~. and W"311j facililates Ill" 

originPI;OIl and marke in~ofm<lflg,o.ge l():Ins. 

'Ine d,:du<1iOll 10' mon£ilJ;c ;n ur1lnre premiums Wa,; firsl eM<I~ . ()JI II lo>IlIpOnIry bas;,;, 

in 2006. Lawmakers from acroSS Ihe polilical speclrum have S;lIce reoogni'L"<ithe policy merits 

oflhi5 provision. As a result. ;1 ha~ ,i\lC"e- iK.>ell e~lc\lded mulliple lime!! w;lh broad bip:lnisan 

support. lIIosl ,,:cemly by Ihe ··Ta" Rciief. Unelllpl oym~nt lnsu .. ~n~c Re811lhoriUlion. and Job 

Creal ion ACI "f2010·· enacled \lIthe end oflhi' Ill" Con~s. flowe>"",". Ihe d~ut il)n to.. 

mo"!:!"sc in.ur,l.llcc premiums c~pircJ at ~,e end or las! year. thus riskin)!: fUMber di<nlpl;on in 

at...,..Jdy tr..gile 001l5in& m3r\.:cu. ills c,it;t"lIllira! we pro,·ide ne<-dt<l "eTta;m} to homcbuye<s 

alld Icnders alike, and make the moMS"se insun",,,c p",mium deduclion peomlllcn\. 

II.R. 1018 \\"1Iuld ..-xl ... nd pcntlaJlcIltly Intcrnal R..-,·cnuc Code section 16J<h)fJ)lB). The 

legislation would cominue the expired law ~s it had ~n \<",;lIen. ~nd retain impc>nant li"';t~\;on$ 

... hieh ",~kc Ihc.mongaj,!c in~unmcc premium ,It:duct;on ~vailabh! unly 10 low and modcnI\c 

in",(lm~ lromcbuyer.\. Under the rtt~ntly expired law. cenai" premiums paid n, a'" ... ·~d for 

'1u~lificd mon);llgc i,,",u"dnc~ by a Ia.~p"ycr in CO<l~lion wilh acquisition indebtedn",," on:l 

'1nalifl~d l"I.'Sidcnc,· are tfe"~tc'd as ;mc""sl that is 4ualificd l"I.'Sidcne,· intcrest and thus tk"<iuelibtc. 

Tbcanlount allo ... al>lc as a deJuclion is ph"scd .>ul ratably by 10 percclil tOr-deh SI.(){)(J by 

"hich LIH: lasp<Lycr"S adjusted I"ros.'I income excet"<i~ S 100.000 ($500 and S50.000. r\!SpttLivcIS. 

in Ihe c~"c of3 rnmTit<l individual fIling g :lep3fl1lc return). Thus. the ded"ctiO<l is n(")1 allowed if 

.J. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.706

Ille laxp.ly~r·~ adjuSl~..:l gross income e.~cecds SllO.000 lS55.000 ;(' Ihe CllSl' Qf(n3I'T;~..:l 

indi,'idu .. 1 f'ling a :\Cparnte ..,lLU'Tl). Each Ofll\.)Se proviSlllo, would ",main lIochnnged by H.R. 

10 18: ooly Ihe e ffective dole would be chan~L'<I SQ th3llhc deduction would be ",,,de pennancm. 

The deducli"" for rnOrlJ;3);c in""ranee p",,,,,ums merits tilrlrn,r e_~te'lSi"" bt"t:aUJ;e oflhe 

c",eiul (l S>i~lan ce i, provides 10 millions of low and moderate income homeowner.;. Ihe ko:y rol~ 

i, a~s in re""'in¥ ho,,-,inl,l.markct~. "nd its ,mporl,,,,,,e in pennining Ihe I'I';"~IC """tor, OOllhe 

tfo1leral govemmem. to bfilr the ris\.: of in uring millio". ofmidemial mongagcs. AIS(l. funher 

extension is supponcd fly co",,,,,II n~ lax polic)' cou,idctouioo •. 

Because the monJ0gc imer('St deduction has benefited so OI3ny OIilliOlL~ ofhomcbu)'c .... 

mOSt or ,,'hom would nOt be abk to obl3i" iJo,ne 1000n~ without monJ(d~ i"su"Jnce.\he 

dedu ... io" h.,. pI3)'~..:l a crilicsl rol~ in helping ",,·ive h,,""ng n,",i/cts. The ded"ction h~s 

provided millions ofhomebuycfl of limited m""u~ cruciul ~uppon in being ~bk Iu .lTord 

mor1Vge insur.mec. "'imou! which millions of buy ..... would h3ve been. and Imuld continue 10 

bt:. shu! o ul of re~;denlial rea! <'St3le m:orkelS. WithOUllho .... addiliullal buYCK thoso: alre.1dy 

Iroubk'<l ",,,rl;~1' would be in f>rr "'0I'SC coudi,;on. 

T he munga."· insumnec premium dcduclion also "uuld hdp fac ilil:ltc the return of 

pri\"dlc ~"-1orc~pitallo Ihe mongag( nlarh'!.. a lloa! endorsed by bulh Conlln'SS and Ille 

Admin;stJ1lli<m. In hxby'~ mOr1Wlgc markel, inwsIO<1< ~In) ngly fav ...... govcmml'nl gusl'llnlccd 

mon!;llg~ over private nlor1!;llJ!es and ",'(.'f1 lhose mungagcs a.:qui ..... d by go\ emtnl~l1-sPOllsorcd 

cnlilies such as Faunie 1.·IDI: nnd Freddie M:I<: . I'his p"ts U..s. IHxp:.yers on Ihe hook for H f:,r 

., . 
768 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.707

1"1;e, share ofille "'Qr\g"~~ m",kc\ Ih.n i~ d<'Si,..~bk Whil~ J11"t'1uiums for bmh FilA m(,)rtga);~ 

in~uronce ~nd privuI~ ",,,"gug"- inSlirollee would be deductible if~ ion 163(h)(JJ(e) wus 

eXlcud<'d m.kin~ insured "Jor1ga.ges afiOrdable to morc polettli.1 homcown",,; would cSp""d Ihe 

Si1.c "flhc lI)\al mor1gagc n.pn.et. 11li11 e~Jl!IndW market would. in tum. help drow in.::rcaS<."d 

amounts "f private capit.L On th~ other h,,,,d. failun: to eXI"nd the mongage insu"",,,c 

dcdlll:li(Kl would reduc~ the "in' "flhe m.:"'gage mane! and di!iCOurIIgc lhe commitmcm of 

private ~apital. With less I'rivme capital deplore<.!. Ihe", would be 8 cOfre'pnnding increase in 

Ihe ...... l<>-and Ihe pOlelllialliabilities-<;lfthe fOO\."1"dlgo,·cnlm"'ll ill Ihe mong'g" man.<"t. 

Fin3l1y. exlensi()ll of the tnongage in~umnC"e premium deductiou is uppQned b" 

compcllin~ tBX policy. ,-"lon@311e insu,...mc~ premium. arc thc economic c'lui, al~nt ()fimcrest 

p.:Iymcms bee"dlL;e ""mining m(>rlgag" in!u","ce reduc"," inlerest QSt~. I'~yin g premiums (In 

mongage insum"ee h3 •• Ji ... ..,1 and quamif13blc iml)llct On int~"fCsl e~l"'n.c. Wirhuut th~ 

insu,,"nee pureh"scd by those p",miun,.. iuu"I'C)1 "harl!e~ an' much higher as. C')ll""'lU~~lee of 

Ihe much hi~ercredil ris~. B""au", nlOI1!!-"8c in .. u,,,,,ee p'cmi"",s and intcl"CsljXl}mcnis arc 

~conomit"".ll y equivalent. tht')' 31'10 should be: trealed ~; milarly by rhl: Intcrnal Rcvemte Cooe. us 

Ih<' mongag" insum"c~ premium dedtlctiun did. 

for alilhcs<: Icaso" •• I sirong.iy ul");c the mcmbef1! of the Subcummiu"" and full 

Cumminec lu join wilh COllgn:~smal1 Nun,os ,md Congressman Crowk"y and sup]lOn CllaClm<'Il1 

urH.K, 1018 anti ""ml~ncnl ,,"tension of the morti;:'!>~ inSl,rancc pr~mit"n <lcducJi(")n, 

Thank Y'IU 

- 5-
769 

Statement of Nancy Carringer 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.708

from the desk of 

Nancy Carringer 

My name Is Nancy Carringer. I live a t 13 Steinbeck St., 

In Tyngs boro, MA 01879. 

My phone number Is 732.829.9799. 

My e mail addr.s. ls <ncerr1ngerGyakoo.com:» 

I wish to submit a public comment for the H.aring on 

Certain Expiring Tax Provi.ions . 

I ,es,..ctfully u ... e CO"B~SS to • .te"d the wl"d 

e"ergy produd/Oll I •• c.edit (PTC)., qu/ckly •• 

pan/bl •. 

Th. PTC drl"e. bllllo". o( dollil'" I" prl"a/e I"" .. s lm .. ,,' 

i" hom~row" Am .. rlc." wi"d power each year. I h. "e 

.fum 'IuJ w1"d f.rm " e.r my hOIl'. ,.."It.llz. my 

commu"/,y _ bri"g/"B I" co",'rut;:lio" jobs.' fin', ."d 

m a/"'. ,,'JrlCe jobs I" ,h./o"g l e rm, lI"d g e " e •• ,lng 

,e"""lIe (0. ou.commu"ity school • • "d hosplt.ls 0".' 

'he life"",e o( th. proj_ ' . Increasing Ih • • mou"t o( 

paWfl. ,Jo., our cOlln'ry gets (rom de. ". hom.",own, 

. fford. ble ,esoun:es Is." •• celle"t thi". 10. u. 10 do -

lfnd '''Is 'a. credi' provldru." Incentive (o"IN w ind 

Indlls'ry '0 c Olltl"ue to do jusI th.t. 

I IIrge tIN committee '0 tilke up." e.'."s/o" o( the 

wl"d ""e,..y p.oduc lion Ie . credit right away. 
770 

Statement of Nancy Taylor 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.710

Nancy Taylor 

Gilford Wind Watch 

P.O. Box 185 

125 North Quanicassee Road 

Reese, MI 48757 

989-858-9893 

ntaylor125@gmaiJ.com 

Hearing on Certain Expiring Tax Provisions 

To Whom It May Concern: 

This Is our nightmare; a sequential account of how our small community will be 

forever changed. We feel our Township officials illegally approved two Special 

Use Permits to construct sixty-eight 40+ story industrial wind turbines in our 

township. To the best of our knowledge a group of land owners actively sought 

out wind companies some time beginning in 2008, possibly earlier. Residents 

were unaware that anything was taking place until we received the Public Hearing 

notice fifteen days before the Planning Commission voted to approve the first 

sixty· three wind turbines on December 12, ZOl1. Prior to this, a new loning 

ordinance had been written and leases had been signed. Had we known about 

the project at its inception we would have been better informed and better 

prepared to defend our posltion at the Public Hearing. We believe we were 

intentionally kept in the dark while I;md owners secretly signed leases starting 

sometime in 2009. How can you plan something that is supposed to impact a 

person's life and not talk to that person? Big Wind railroaded our naive township 

officials, promoting tax revenue and economic growth, without thoroughly 

explaining the many implications a project of this magnitude would have on all 

residents in our small agricultural community. 

The following is a specific list of irregularities we found that did not comply with 

our Township Zoning Ordinance. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.711

We believe that the Special use permit was not complete at the time of the vote 

on December 12, 201 L Chapter 7.2 .a of our Zoning Ordinance states: 

1) CONTENTS. The application package consists of a Special Use Permit 

Application form completed in full by the applicant, accompanied by a 

fee as established by the Township Boord. 

2) APPLICATION DEADUNE. The complete application package must 

be submitted to the Zoning Administrator at least thirty (30) days 

before the Planning Commission meeting at which it will be 

considered. 

The Special Use Permit application was not dated. We found that a revision was 

made to the application on November 14, 2011; the Public Hearing was on 

December 12, 2011; this was less than 30 days from the application dat e. The 

application lacked the insurance reQuirement. It did not accurately state the 

boundaries of the project; the boundary map included al l leased parcels, when 

only those with turbines or turbine components necessary to this particular 

project should have been shown. The necessary environmental permits were not 

secured at the time of the public hearing, and we still aren't sure whether t hey 

have been approved and submitted. Residents were not treated fairly at the 

hearing. The township hall could not accommodate the number of people 

wanting to attend; many could not even get into the building. Several residents 

requested that the meeting be rescheduled at a larger venue, but their reQuests 

were ignored. Chapter 7.2.4 of the Zoning Ordinance says: The public sholl be 

given the opportunity for Input on both the rezoning and Special Use decisions. 

This Special Use is inconsistent with ~maintaining protection of the health, safety, 

comfort convenience and general welfare of neighbors and the community at 

large. Chapter 7.1 0/ the Zoning Ordinance stares: The purpose of 

designating special uses is to allow proctlcoltotitude for 0 property owner or 

developer to use a parcel of land while maintaining protection of the health, 

safety, comfort, convenience and general welfare 0/ neighbors and the 

community at large. 

On November 30, 2011. two Planning Commission members. both whom we 

believe were key players in soliciting Big Wind in our township, and who signed 

leases, resigned from the Planning Commission. We believe this was a calculated 

move on their part so it would not appear they had a conflict of interest, even 
772 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.712

though they were present, from the beginning, for all the planning and disc;ussion 

leading up to the Public; Hearing. Two new members were then appointed, 

leaving only 12 days for them to become informed and 'vote on the Special Use 

Permit. When residents spoke to both following the hearing they admitted they 

had no idea of the scope or implications of what they were voti ng on, they were 

merely instructed to vote yes if the application met the criteria of the zoning 

ordinance, (which it did not). In addition, there was a township trustee that 

remained on the Planning Commission, even though he had signed multiple 

leases. He was present for all planning and discussion, but recused himself from 

voting al the last minute. Chapter 10.4.e of the Zoning Ordinance states; 

CONFLICT OF INTEREST. A member of the Zoning Boord of Appeals sholl 

disqualify himself or herself from discUHion and voting in which the member 

has a conflict of interest. Failure af a member to disqualify himself ar herself 

from a vote in which the member has a conflict of interest sholl constitute 

misconduct In office. 

Chapter 10. 7.1.3 states: Will not couse a substantial adverse effe« upon 

property values in the immediate vicinity or in the district in which the 

property of the applicant;s located. Our property values will be affected if 

our community becomes an industrial wind park. A township resident and real 

estate appraiser has reported that property owners could suffer as much a 

40% loss in the value of their homes if they are surrounded by industrial wind 

turbines. 

An application 10 construction g industrial turbines in a neighboring Township, to 

the west of us, was not approved, so Big Wind was back at our door again 

wanting to build them in our Township. Again they submitted an application 

with no date on it. The same errors that occurred the first time around were 

repeated with the new Special Use Permit Application. We found a copy of the 

application that was at our township hall that did have March g, 2012 as the 

date on it. A notice was sent to residents that CI heClring would take place on 

March 27, 2012, and again It did nol meet the 30 day review requirement 

stated in the zoning ordinance. This was brought to the attention of the 

township .supervisor; he acknowledged the error, and the date of the public 

hearing was rescheduled to April 17, 2012. This was the first attempt by the 

township to actually follow our l"oning ordinance. The same irregularities that 
773 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.713

did not comply with the zoning ordinan(e the first time <lround were repe<lted 

<lgain with the new Spedal Use Permit Appli(<ltion. 

At the Publi( Hearing on April 17, 2012 the majority of residents spoke against the 

<ldditional turbines being wnstru(ted. There were union workers, from other 

parts of MI, that attended the hearing as well. They monopolized the publi( 

wmment parI of the hearing, and a!!:ain, all residents did not have a chance to 

speak. These outsiders (not Gilford Township residents) also tried to 

intimidate, argue with, and pick fights with residents. Residents were 

confronted in the restrooms, and were afraid 10 leave the auditorium. 

Residents were suspicious of the all the le)(fin!!: that Big Wind representatives, the 

Engineering Firm representatives and one of our Planning Commission 

members were doin!!: during the hearing. Wealso believe a note was passed 

from a Big Wind attorney to our PI"nnin!!: Commission before the vote was 

I<lken. 

The Planning Commission again voted in favor of the additional turbines, with 

the chairman abstaining and resigning whell it came to casting his vote. 

Because of conflict of interest, another member also abstained, and the 

remaining three members decided our fate. Our Zoning ordinance states in 

Chapter 9.1.b: The Planning Commission sholl be composed 0/ seven (7) 

members, comprised 0/ 

0) One member 0/ the Township Boord selected by the Township Supervisor 

as on ex officio member, ond 

b) Si. residents of the Township, representing, Insofar as possible, different 

professions or occupotions, who sholl be oppointed by the Township 

Supervisor, subject to the approval of a majority of rhe members elected 

to the Boord. 

Twenty-sevell appeals were filed within one week of the hearing, and the S3me 

replv was re(eived by all: 

This is to advise you that the Township Zoning Ordinance does {!fit vest the 

Zoning Board of Appeals with jurisdiction to review the Planning Commission 

decisions to grant special use permits. The Zoning Board 01 Appeals has the 

authority to review dedsions of the Zoning Administrator or a body concerning 

eflfor.c;.emen1, of the lOn'n!! ordin(lnce. Thfs authority does not include the 

review of Planning Commission decisions regarding special use permits. 
774 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.714

Therefore, Gilford Township will nol convene a meeting of Ihe Zoning Board of 

Appeals 10 act on your appeal, since illacks jurisdiclion 10 review Ihe decision 

of Ihe Planning Commission to grant this Special Use Permit. 

I spoke to the Township Supervisor and was told the same thing, that our-Zoning 

Ordinance does not provide an appeal process for a Spedal Use Permit even 

though Chapter 10.55Iate5: METHOD FOR APPEAL Any appeal from a ruling of 

the Zoning Administrator or body concerning the enforcement of the provisions 

of this Ordinance sholl be mode to the Boord of Appeals within 10 days after the 

fate of the Zoning Administrator's decision which Is the basis of the appeal. 

WHO MA Y APPEAL Appeals to the Boord may be taken by any person 

aggrieved, or by any officer, dt portment, or board of the Township. Any party 

may appear in persan ar by agtnt ar by attarney at a heoring cansiderlng his 

request or appeal. Don't we have a Constitutional right to review? 

Our Zoning Ordinance states; ChopterB.c.l : APPLICATION DEADLINES. If a 

zoning oppllcotlon requires 0 Sile Plan Review by the Planning Commission, 0 

completeopp/icotion package must be received at least thirty (30) days befare 

tht date of a P/onn(ng Commission meeting in orrier to be revitwedal said 

meeting. If" Site PIon Review is being conducted for 0 SpecJof Use Permit or 

subdivision plot, the application timetable specified for that process applies. A 

Site Plan review was scheduled and conducted seven davs fo llowing the Public 

Hearing. 

Our group has consulted with and hired numerous lawvers, some e~perts 

on wind energv, but wehave very little hope of anvthing being decided in 

our favor. Apparentlv following your own Zoning Ordinance Is not an 

option when it comes to BIG WINO. Our township meelingswere a 

charade, a mockery of public participation. We knew that it had alreadv 

been decided before we walked in the door. Once these siJ(tV-eight 

ma5sive 40 story turbines are constructed we will have no other aptian but 

to abandon our homes. This same scenario is repeated over and over In 

communities all over the United States. When will commo(Jsense aod 

stfullnV prevait? If wind power made sense, whV would it need a 

government subsidy in the first placellt's a bubble which bursts 3S soon as 

the government subsidies end. It enriches ~ few at the eMpense of manv. 

Please end ilil government Incentives to wind eneriY. 

Sincerelv, 

NancvTavlor 
775 


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779 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.720

Sla lemenl a n behalf oflhe Nallona l A .. aclallan of Hame Bullde ... 

1201 IS" St NW 

Wuhlnflon. DC 20010 

Hau .. Ways a nd Mean.Subcommlltu an Select Revenu .. Measures 

Hn rln,an Membe. Prapasa l .... Iated ta Ce rtain Tax Pravlsian. tllat eith er hplred In 2011 af will 

.. ~p1re In 2012 (also knawn.s "tax utender." ) 

April 26, 2012 

On behalfaflhe 140,000 member< af III~ Nal an~IA ... ,dalian al Harne Builder. (NAHBI, we 

.esp«tfulr., submit thiS s"'temenl discussing Iht signillcance and impaCt of severa l e~pi.ed lOnd e~pi' ng 

u x ulende.!oIn 2005, [ongre" pa .... d Ihe fne'gy PolkyAc/lo.L 109-58) and .. ".blished a nurn"", a/important I •• 

!\CMtlll ~ to pramote i fNle. energy efficiency in Ih e built enViranment -5lngle familv. ",ultllamily and 

cemmerdal ham~. ~nd buildin!'. The ... Incentive. aCI .. d ... the anlv federal-Iellel pragrams te addre ss 

enerav efflciency'n new and ex,sting hamel and buildings with the Intent ef mellinglhe marke t tawa,ds 

greaterefflc1en"'l and thedellvery of Innov.Uon "",d technolOI V tranller In bu]ldlng deslsn and p,acUre. 

1wO of t~e<e !ao c""d;!, .... pl'~d at t~e end 01 2011: th ~ c""dlts for la' cod~ Secllon 45l and.5ection 15C 

While Congress hos ollow .. d tl)e In<e~tivE, to lople be'or~ d has extended them retrooclively, 10. 

'on,um"" a~d busin ... se, Ihi ~ unc~n~inty is "xtrerr>ely dis,u~l ve. 

Relroa'lIlI1! t.tens>On •• re PMticul~ ,l w oroblemali-t 10. the consume. and .mall business·erJented u~ 

provi,ion,. In g~neral, the.~ a, p.v~ .. a,e more oen,lli"" 10 Ia. uncenalnly. Middle-class laxpaye .. , 

w~o afe the primal"'! benefl(larl ... fOf energy ,ax I~centives , a re particula rlV unlikelv 10 ourehase a mo'e 

pen\;ve, ene'BY elf1clenl product on tl1., e'perulion th il! (eog'ess will Ulend. I •• credit 

,etroactively. likewise, manufactu.ers are unable 10 ma.kellho,e p,oducts a. I •• -c,edll eligible. A •• 

, .. su~ , when U,e~e types <>I credl!~ are .. 'tended reu""ctj""lv. the wl"n ,, " a' e mo.e Ukelv Ie have 

purchased the <lualilvinll. P,odlKt a n\'Way. while midd le-cla",on'''m'''' ..... ill ml55 oui. 

t 
780 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.721

The 2SC tax «edit be,an ~s ~ mode5! Incentlv .. 10. the purm .. e 01 qualified en'''BY e fficiency 

imp.ovements 10. uistin& hom .. s, I~ch .. windows, doors, 'oofs, "nd HVAC equipment. Originally, 1M 

2SC credil provided 1091. Oflhe "". t 01 the p.odUCi (not including Install"lion and I"bo. costs) nollO 

e)ICeed $500 but imlK'S d va.ious lowe, caps on spedllc ene'(tY WIlden! p.ppe.\V, Such u a maximum 

01 $200 lor window purchaoes. Allhe outset, Ihe "edil ofle.ed lillfe .ppeallo existing homeowne .. 

becau:le Ihe 'oed/ie"tiom fo. the oualified improvement. had ori« t~II' Ih.t f.r u«eded the lax 

credlt. further, the v.rlous ca ps c .. used confu'ion "nd 3dded complexlty. In 2009. Ihe American 

Reinvestment and ~ecovery Act (ARRAJ ex""nded th e orl,ln.1 2SC program .nd Inefeased th~ "edit to 

309/, With" $1,!>OO up and included !tOme labor and inll"lIalion COSl!. All qualifying products noW had 

Ihe same cap. providing much ne eded slmpllclty_ As a r",ult. the appeal and popularity 01 Ihi' Incentl"" 

soared and many .... t.1Ien;. manula ctu.ers. and cont.actors adve rtiSed the new lv-enhanced credit which 

en(o~",ged bU$tness ind losteredjob .rowth In ' emQdeltng ~ct;vjty ill the end 01 2009 and 2010. 

The 'UCCMS 01 the credit In those two years Is unquenlonable. IRS data lor tax vea, 1009al,0 indicales 

that 2SC was huvilv "sed by middle-class homeowne" . Of taxpavers claiming the eredil, tw0-1hlrd, 

had .. n adjusted &ro« Inco m~ of Sloo.ooo Of less; 93" 01 I.XP<lVers dal",]n. the credit earned less than 

$200,000. Ta~paye" in the,e income cia .... , tend to be ""IV price '~n.ilr,.e, al]d 2SC .'iuably tipped 

the "ale. in fa1l<" of energy eflkientequioment. Con.ide r ~ ,imple window replacement: most homes 

have an average aftwe l ..... wIndows. JU<1 In".lIin& basic wIndow. j, ,, ~ubs,"ntlallnvestment. As a 

.esult midd le-Class homeowners und~ Olng wIndow .eplacement today ".e less like'v to Instill ene rBV 

efficient windows ba.ed on ~ hope and pr;oyer Ihat Cong'es. will relro,aC!.lvely ... tend the 2SC tax cfedit 

laler this year. 

The lapse In the 2S( tao <redit will al'" impact overall economic activity in Ihe .emodeilng :lector. For 

e-.ample. fa, tao yea' 2009. over $5 billion of 2SC tao creclils were cI"lmed. NAHII ~U"'alu IMI these 

tax credits were clal"'''d In connecllon with o ..... r $Z5 billion in remodeling xoenditure •. Remodele .. 

olten lever.lKe t his tao credit When wor~ing with dient •. These ta. credits helpf'd ~upportthe 

re",odeling Industry (.ee,.aph l>e lowf du r1nS a period '" which new hame sal'" .... perienced dramalic 

dech~e •. NAHII e.tlmate! ,hal the .emoct..lins actlvit~ sen .. rated bv th ~ ta~ <redlt in 1009 w •• 

usoc ialed l1ith o.er 278,oqo full·llmejpb . NAfIIl eslimales th .. tevery $100,000In remode linB 

e~pendilures ereatn enough work lor 1.11 full-time equivalent job •. ' The oros,.m, supported 

~pp.o lmately $13.2 bfllion In wages for the.e workers and $7.5 billion In net business income. 

' TH[ ()lRtCT I,,"PACl" OF..oMt 8UlllllNG AND ~(""OO'j"NG 01'1 1~E:.U s.. CONOMV 

ilfTJli1!!.WW. ."A~ B.OStGIG N£R".I>SP~ION<D.1"'1C; "fAlCOO!fI ,HI"'" u» r.u s AANi UDoll 1 h JlAI.a 

ICONOMOCS ?1\PfJI. 
781 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.722

Remodelln£ Ellpenditures 

Compared to New Home Silles 

l!: !: 0 

- - 0' ~! -

• • 

• w 

-

::1 

I -I 

• 

--.... _,-- ,-------- ------

NAHB )!ranglv supports an <'>len<loll of the Section 2SC ta. cr<'ili!. To make;1 an effective Ino .. llllv .. for 

2012, action needs 10 be t.~en in the very nnr term. Long-term. NAHB w<>uld also '''Ke Cengreros 10 

simp lify and modernize the new credit byincreaslng tile $SOO CJP to $1.000; allow home owners to claim 

installation (0'" for aU eligible product!;; and remove Ille confusing lower COIl". Adopllng this 10% tax 

" edil witll .. SUXIO cap will &rea!ly~lmplifv Ihe current tax credit and provode an inoon!ive tI,.t middleclass homeowners will continue to utilize to Imp,OVt! the efficlencv of tlleir homes. Ideal ly, NAH8 

belleves thl. credit would be mos' efleelive a, a permanent provi.ion of Ihe 'a. code. 

~ction 45L - New £n~rl~ Hfkle/ll Home Tax Credil 

AI", expir~d as of January I, 2012, Ihe Section 4Sllax "'edil provided a $UX)O"edillo builders of new 

homes Ih31 ,,"ceed 3 minimum energy cooe ,pecilkatio" '2003 Inlernalional Energy Conservalion Code 

plus the 2004 supplementf by n le.st SO'JI, in both huling and coojin~ efficiencv_ The efflcienq 

perform.""e must be independenlly verlfl.d bV a n authoriled energv raler, and I~ credil is .ubiecII<I 

both ill baSIS adjuStment and mav not be Claimed ill~inU alternative minimum Iii·, (AMT) liabilil~. 

Eligible home, Include 'e,idences, .lngle:l.milv and multifamily, thilt are sold to owne.·occup.ant~ o' 

lea.ed for r""lal purp",es. 

Although th is (fedit has .uH .. red Irom ,laM·a"d·51op issue . of ,horl-le rm a"d retroactive exten,ion. 

over the la.1 five yea r" and hOI. aga in expire at the end of 2011, the 4SL program hOI. managed 10 

deliver th e ma rket t.anslo.matio" resuln thaI Congress Intended to encourage, Th, chari be(ow ,I\ows 

thai from en.ctment the Section 4SLcredit went from 0.7% 01 the markel in 2006 to 11" ol l hemarkel 

for new homes in 2011, 
782 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.723

e~r Numb r of Homes vedf;ed f 01 New Home. Sold 

Ff'1l0 F . 12007 123.000 1

3

" 

12008 [22,000 Is" 

I" ~ ~ 

f lO 1

21

.

000 

j2011 r 2.000 

". 

In 2011, 11" 01 all tht new h<lmeuold met tht _rgy Ihre.holds of IheSe<:Uon 4Slvedil f nd were 

SO% or more energy effldent. wllh . ne arlvfive·fold lnerene ln lotal certified home •. 

Wllh Ihecurrent IIPse of Ihls c'edlt, builde rs who ~I lj!e this I~~ t'edil l.ce the difficu lt decision of 

whether to continue 10 olle' the ~nelits of this c'edit to the" <UMomers without ~now.ng if the credit 

will be e. ,ended. Th .. decision I, mad e mOre diffIcult due 10 the ongoing hou ' ing deore-sion and 

incredibllily , mill ma'gins "'GSI builders cur,ently ope rale on. In litt, the ImpJCI 01 a ,e troaetive 

eXlellSlon tan likely be linked In part to ~e drop In quallfylrtg h<lmt'l seen in 2010, In t~1 tnye or, oil 01 

Ihe tl~ e'le.>der', Inuuding 451, lopsed lor II 1\ mo"tils before Con8rt'lS ~l nded them retroutively , 

Home tlulldlngl. ~n Indu.uv driven by .m~lI . o/ten family-owned bu'iin .... s.e •• Accordlne to NAH8" 

membership survev. 79% 01 home buikjers h~ve fewe' th~n 10 mplo~6_ Small buslnen OWnerS 

C~r"ot ."ord lo e omble on w~lnel 3 la~ cr~dil .... Itl be: ~t nd d 'I'trlNaiv tv 1f a bulld ~r aSSumeS th@ 

u edit will nDl be:.,".nded, In",! may well ." e a ,ale to a nother builder who assume. ~ wi ll beand 

therefore quotes a lower price , The uncerU,nlY c'eated bV Ihe re< enl hislOry or extending the.e UI~ 

provisions rel'ontively unfoinv pl ces m~1I bvs'ness OWn erS between ~ rod .md ha rd place, NAHB 

belleve. lhat COIII'''iS~hou d not be lnln~ busine,se. and con,umer, in Ihe IIOsil l<>o of guessln«lhe 

dlreClion 01 ••• IIOlicy. U>f11'~" rn.. 3n obl/s auon .0 crea.e a degree 01 tax ee'lalmy r.llh r ,nan Ihe 

cu""nl .IIUa!ion Ihal luves by,lne""s'O p,edict the fUlu, ... 

, 1M< r<'"PreHn\< I~ e actual numt.., 01 nOme' <ertlllO<l 1 U~N£l. ",h k" ,. tile lo'l .. t <ertlne<. -Some . dd'tIon., """'e. "'_1 h"". qualiflM t~rou~h DII1er etifl bl ~ ' . rt,I •• " . 

• 
783 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.724

Rok,> of Ihe T~. Code in E"",rgy Poli<:y 

Allhough some ol,hese Incenlive. would benellt Irom updale., nearly all allhe ... In Incenllv~. are 

p,erforming e~3c ly n tonS/en Intended when e"~b ishln& them back In 2005. De$pite the 

unp/ecedenled downturn In hou,lng and the re.ultant ,,,,,,, .. ion, the Increased amount of economic 

"ctMt~ ~I.oci led wilh ,et,ofit incentIVes under 25(, coup1<!d with Ihe "elia, ma,ket penetration of 

new enerU-elficienl home' under 4~l confirm thaI federal policies promollng building effkiency dIe 

effective, nece ... rv. and accompli>h broad COn$e",.,ion g031 •. 

Some have 3'11ued for elimination of ~II energy ~nd efficiency lax incenlives In on elfort to lei the 

market det .. ,mlne Ihe dlrt.'ction of COS!S a nd •• ving, for consume" , Unfortunately, families tMat do not 

have the economic rewurces to und~na ke a meaningful en"'I~ up,rade will b.. , id .. fin .. d in th;. 

11,00e,.-as the data shows lor Section 25(, ta.paye,s who u,ed the credit are overwhelminglv middle -

cia" iamilie •. And wllh or without the.e Ince ntive •• the Departm~nt 0 1 fne'lY I. on" mi"ion 10 

federalize and mlindal e aUres,ive ene t1y code ,eQuTreme~ts lor new nomes a~d buildings Ihat will 

fll'lhe, detenorale nOllsing allo,dabillty, Some 01 these new and proposed requl'ements will pr""e to 

be v.,"! .,.pen,ive to Ihe co",,,",e, and wHi la~e d"".de. 10 ,ecover Ine investment, a payoff lew 

homeowner. will ~ as Ihe average homeown ... 'emalns In Ihelt home fo' about len ~at1o wMe the 

average home ,emaln. in Ihe hou.lng stock 10' 60yea" Dr mo .... ,urther e>acerbati"" Ihe ,iluation, 

app ,ai.31. of len inapproprialely 0' ina<cur-uely value energy efficiency and e~.r&'l-el icient feature. in 

home,_ cr jnR a , egulato"! dlsincemive lor Oplional ene,gy elliclency upg,ade •. 

With an aginglnfr""",cture and buildlnc !lock. more Ame.ican lamllie. a'e goIng to be ,elegaled 10 

Iilllng and workl~B Tn leu-efficient homes and buildings.' Ne ..... eon. ructlo~ fs just no ..... lnc'usi nS from 

hi"o,iC low!. and u the hou,ing market begin. 10 retUrn 10 no'm~1 levels, cOnsume .. will be facing 

dramalically dill.re", mon8"ge qualificaHon ,eQuire.men15 and financing i"ueslh~~ belore Ihe 

downtu' n. The 'eallty;. that the olde.t. lea.t-etflclenl homes arf Ihe mO<l a(fo'd~ble to families wllh 

lower and moderal .. lncom .... Unfortunately, Ihese fami lies also bur Ihe largell burden In e nergy 

~O'I', as a percentage of inc"me. 

Utili!ation 01 the la. code 10 p,omOle e nergy efficiency and COnSumer .avingS is the mOst efiective 

opportunity to truly .hape an ellk:iency policy Ihall. nol punitive to Ih. hOIl.lnS markel a5 a whole. and 

creates jobs a. ~ , ... ult. TIle u •• of the t~ x code 10 incentrvi, .. ene'IIY efficiency In buildings ha •• long 

hiSto"" of bipartl,an ,upport. Milch lI~e Olhe r en"ironmenl~ lllle. and regu ~tlon$, emcl~1lC'I 

'equl,ement. are e.pen'r ..... and ultlmalely the consume, bea rs Ihe b,unt of Iho.e cosl •. New home 

builde,s unnOl abso, b eo'tly new fTlandale" and these co>l. will b. pused onlO new homebuyen. But 

10 rea lly imp,ove. home energy efficiency, we mu<t look at the over 95 million renl.f and owneroccupied hom .... t~al we,t built before mod""n ene'I:Y code. in 1991. Withollt eflect",e I~. IncenliVe •. 

thOSl! hom.s wTII cOMlnue to waste en.'gy ~nd cost the consumer money. 

' Tnt I .. ~r.p' 0ile olan own<'H.ecupled '>o""tln the U,S. is now· 15 Yea" and C/lmblni. Se~ Ihe ~1ow1", NAilS 

'n' ",",i, for more detail (·~n Agin8 ou'~ Slock,· r,e On llou'""'l b",<:. 

!!UIl:Uoyeoo ~" in ~!!!J!reos.<a n' 2012{j}Jf} II a"'MI!(!.B,t..ou .. &:H!!!;~ I , 
784 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.725

While not a tradldon~j ta ~ .tender, under ~ pro~i.ion enacted In 2008". part of the Housing ond 

(,onom;, RecO"~Ty Act IHfRA), Cong e~s tempo",rllv r.~ed tht 9" l lHTCcredit at ~ lull 9" lor buildings 

pl~ced in ,ervice before Oe<:"mbe, 31, 2013, Allhough this provi,lon does not te<:hnkally e.pire until 

Ihe end of 2013, fo, all p,,,etka l purposes, II has al,udv e.pired. 

AltMu«~ tM tempo,a,y fi. ollhe 9!1£ "edil does not upir .. unt~ the end of 2013. projects will onlv 

qualify for the fi~ed credit rote if the building Is p'oeeri In 'e",icc before the deadline. A buildinl i, 

considered ~a<ed in ,ervice when 11 is cormructed and fully lea.ed. According to the (en.u. Bure.u's 

..... "' .. evol Construction. In 2010 t he ."~rage perm'\.\o·completion Hm~ 10 ' all multifamily build Ins was 

16.7 months. A. a re.ult, for "edit. that are being all",,"ted now,ln .... ""r. and proj""t underwrite .. 

caMot be certain Ihat proj",,!! will be completed lOnd pllOCed In se ..... lce before the deadline. The,efore, 

prudent undefWritins require, Ih3110d3Y', proj""t.s be financed ba",d on Ihe much lower "oatins 

"edit. Thi. will reduce Iheamount of equity 1I01~g1Mo proJecu rtceMng ~11oc3tlons thls yur. ~11~ou8h 

t~e deadline i, 2013. 

If the i. ~d rale i, nOI ""tended, the amount of equit>j propenie, (ould r""elve would be reduced b'I 

more Ihan IS". making it mo,e dlfrt<:ull to do LlH1C development>, particularly as state and federa l 

s(Wernment~cul baCk on direct ,pendlns thaI I, u$~d to flU financing g.p~lor <I I1TC ptoperllu. The 

"floating rale" syslem al~o cr~al'" uncertainty lor owne .. and inve5!0" and <Om plicate. 5!ale 

admlni,lraUon ollhe program. 

Under Ih .. low Income Hou.inK fax Ctedit (llHTCl program •• ffordable hou.lns developmenl' receive 

ta o cr"d,u wh,cl\ are used 10 attract equilY caOital. There are Iwo tyoe, 01 la. credi~: one credil 

ptovldel 70% of the financIng co.t and i, used for new construction and substantIal re hab ilitation; and a 

second credit Ihal provide, 31»10 of the financing cDSt which is used to iKo";r,, an existing property whic~ 

;, te~abll laled . The,,, are ohen teferred 10., Ihe 9% and 4% ,'edll' re,pectiveloj be<:au", lhal wa, the 

orl81MI credit a ,nount when Ihe program was <r .. aled In 1986. 

lIHTC credit< t~ provided over a len yea, p .. r'od and wllnout thl' legj,lation. the "edit.ale, are 

adjusted monlhly. The IRS ,.Iculale, the monthly value. of the credit' b,ned on the co,1 of i:><>rrcwlni 

by the federal government. A, iI re.ult, lod~v'slow fede'ill bortOWing casu produce wry low credil 

,ale., which reduce , Ihe amoum 01 private equity inve,md In UHTC deve lopment. In March 2012, the 

9% credit was onlv worth 7.43"; th~ 4% credlt was worth 3.18%. 

legisl3tion has been Tnt'od!l<:ed In l~e Hou~e b'I C~airman Tiberi and Ranl:.ing M~mb<'r ~NI to make the 

fj~ed credit r;lIepermanent (H.R. 36611. The lell,lallo,; woUldal,o ippl~ to a 4" lax credil used to 

acquire an e,i'ling propeny which i. rehabllit ~t ed lor aMordable u.e. NAHS urge, Congre •• lo pa .. H.R. 

3611 as SOOn as po.sible due to the uncerlainly cre.ted by the looming e>pitalion date . 

• 
785 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.726

Anothe. Imponanlln eXlender for Ille housing .ector 1, Ihe deduct,on for montage in,u •• nce 

pr~mlut"'. From lOOg tnrough the eM of lOll, ce.taln mongage fnsurance premium, we/e allowed.s 

3n ilem .. .,d mo rlg3ge lnl~"'~t deduction. Qualified mDftg~ge In.u.anee cons .. ted of premi""" paid for 

in5U.&/lU prOVide<! by t~t Ve e'3n~ Adminillr~t!onr fede. 1 Housing Administration. Au.all-loulln8 

Adminlstralion and 0'''''3Ie mortgage Insu,ance. TllededucCion fs subject 10 an inco",e P~35tX1ut wilh 

onIV panlal deductions pe.milled for I~ose tato.yers With mo,e ~~n $ 100.000 of KijU5ted ,.OSS 

In«>m~ (AGtl, ~n<l,.,,, deductl"" pcrmltt~<l o. '.~p.;>y~", ..... ;11' AGt In ~~«,» o[ $UO,OOO. 

The d<!"ducllon Is p.'ll<:ula.11 "'tlC3t [0. ,~ duclng tne debt cost of ~omeowne"'hlp /or II"Hi...,,, 

homebuye.s, wllo , .e mON! j~eJv to N!Qul'e mOflg.ge Insu •• nce due to h.~lng <m.II", downoavrnenl' 

for Ihe pu<d\ase of a home. Acco'd,ng 10 NAHS estim,le$, Ih"re iO.e appro_lm.lely 2.1 mlllio~ 

hou.ehold. thai "uld have f<><med but did nota, a re.ult "llhe G.eat Rece ... lon. The", potential 

household. ,,,nst[lule prnl-up hou.ina dema"d. and ulhe tabor market impn>ve., this unl""ked 

houslnl demand will help add momentum 10 Ihe building .ee"""", In the houslnl ma.keIS. 

Accord'"1 10 2009 IRS (.he mo,t recent ayail ~blef. 3.6 ",lIlIon la_p;ove., benefited f.om Ihe mOr1g,gt 

in.u.anee deduction. with $5.5 billion in total deduction •. Givl'fllhe income ph."",ut. the deduc tion·, 

fln lla~ benefit Is e nlirelv <ollene<! bV middle da ... ~omebuve ... 

J.P. DELMO~E 

A"lstant Vice P",skJ~nt 

Gov~rnn"'nl AlfoirJ 

201266 8412 

J~ ~lm~@ hb o'i 

.... lIona l A."",I.tk>l1 of Home Sui 

1201 1511, SIN!tl, ... W 

Washlngt"", DC 20005 

, 
786 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.728

m NAT IONAL 

ASSOC IATlON of 

REALTO RS' "EAllO 

~,,~"',... ... ,,-, .. ~·"""""".I.ot;"" \O-:MI<' 

""'-"'.' ,.' '" m~'" "~" .... ~--. ""._.a_ 

STATEMENT OF THE 

" .... ,_ .. ... " 1. "·.1,""'-"'-.... q,,·b..-..,..-.... 

(~II tll>a'f "T \H' ,,110 "~ , .. , ....... , ....... \' .... ........... ,-".-.., ..... ........... .... " . ...-.,"'-, 1_"'_n~'Joo.U_~ 

NATIONAL ASSOCIATION OF REALTORS® 

SUBMITTED FOR THE RECORD TO THE 

UNITED STATES HOUSE OF REPRESENTATIVES 

COMMITTEE ON WAYS AND MEANS 

HEARING REGARDING 

EXPIRED AND EXPIRING PROVISIONS 

APRIL 26, 2012 

.1:~Lrt>II.· 

~ 

k . .. _''''~,,'\· ... __ • ~~~ .. O) ... . .... ""'>..,_ ...... oM ............ "' .... .. A'ION~I A~Wt1All1m UI' tl,\~ ,0It~ · 

........... ·"... .. ~. _t""'''' ... l<\. 
787 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.729

In,rodllet;o" 

,1.10'" rllOIn I.! mIllion ",embe .. of th~ NATIONAL ,\ SSOIJ ,\TION OF ItE..'\L' !O!~'Io (NAlt), 

u<g\' yOll II> fenl'\\' or I'Xlcnd four of I;"" ~a ,rgot:' of ,.'" pro,~,ioM th .. arC kn own 9. " ,he 

"",cml~ rli," REALTORS a", im'oh'cd in ",",denn.1 ~nd ~ommnci l ,e.1 ~jla[e as hroken, .. k .. 

't\COlS. pmpt:fly m~n~J.:cr~, pl'~'~=, an<J C(,unsdon;, "n'Cr Ul' !>.!-~,, ! in . ll i'lo.·[ ~ uf ," ~ 'c~l 

,,""''' tr:I.",.elion, ,\11 Ol~d be ad,,,,,,.>d)· .[(eefed if ,he pr("~jio,," ,hoI w~ ilintifr and di,cusj 

lido", ""'"'Ie no longer an ibble, 

11'$ ~l <e<;"" our ,,,,[io,,', hou.;;;"!5 and nl1llmcrciJ.l/inwSIlnC!11 fL'3) ".f" e m~rkc' $ fL~"aJn fragile. 

WhL~' ,\Ie <.l1't.'Qiug hOU$ing e';<;. beg.lI;n 2007, no one in'~n~d II .. , i[ would ClIt:<)' on $0 IOTlI:\_ 

Today. all eIlL-gcme. of r~,l ~<1 ,c a", slowly reetwering, b", f<'m:tlf[ II} need of lmn,,--d,.,~ pohcy 

solullo" s .m] l~gi,I ", io l1 , \X'e ,herefore LIrI,'" pm"'!,f "elion to f~nl,\" and/OI I:.x ,end c:leh of [h .... " 

pro,·j,ions, Theit' 11ld"d~ m0r18"!.".' cancdlation I\l.~ ,did, Ih,' 15·1'1-~r dcpR'C,.bk hf~ for ~."..hn d 

mpm\'~nll'1l\ s, exp~nsi lg o f ct:rtain dC'~ JHlf1 <:0Sr. a~~()Ci~l~d ,,~!h ev rin~ rQ\"nfi Ws 

prop(l',iu and ~ lir;Hinw (JmdJU~·<:' ,a,x cr~,l il f(lf rCSld~'ll' of ,he Oi>tti~ of Co hUll hi a, 

Cnncdlation of Morlgage n ebl 

RE.ALTORS'~ h3''I: long mailllai'Rd Ihil ,h(' h T ro Ih~ ,,",ion's tcoroomic ~rrt.~lgth is Q robml 

oou;;;ng indus"),, In pUlieul.r. 5us{;1ini ng la", rdief for the millions fhom~ow t,,; who ha,,,' oc"n 

subicel ,n for~do~utt, or $hurl ~~ l$ is c,;,;el Thus, extending I(~ cancclhujon tax relief 

i. ~m ng N AR'8 highest priori tie. Ii" 2012. 

Thc Orl~gc cancdlation relic{ p<o,·i"on. ,,"!l' cn.c".'d in 21HJ7 In order to »!tIre Ih~1 

h01l1cownct'> woulJ nUl be a~cd on money Ih~1 rlto}' h."" alrc'Ol dr lil:l', Th;'. ;Inponam Q,ll' 

'L'mf1<"mry) Pff"-1s1Ofl " ... ~ enacted in 2007 to addres~. \.J<ld cn «Jlla~~;n Ih~ l 'S hOll,in!!: ma,k~l, 

'11", rfO" ~;0I 1 a:l<;ur,'o 11"" indiv,dual_ who Io:<t Iheir hOJUI" ;', forl'Cinsn",- Qr suff<'I t'C[}OO1l)Oc 10'" 

in 0 00-"",11&\ "short ~o e" would nOI fact a lax burd~n I rl ... time of. subs,.nl;"] economic: los" A 

thinl C',u<"goryofhol11et)wnct.< ho! !'(Ocd,'cd b. lll~lci on, b,,, arc ,11.$0 ~f tttcJ by lhesc ,did 

I'"",;,ion •. This group Qf'''-'IJoOltS,l>le ho"'~o\\'''c ... l .. ~ n~" ,,,cd ct ,,,~,,, on ,heir mor'g;ogC'S!II ,he 
788 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.730

f.c" of tkdimng h"on~ ",\lu,,", To Ih~"x'''nl tho, I~",II:'" ~'" ".;tID'1l II> ,,·.tru<O'U'"" their f"'rfurtrung 

luan,. onr m'>t!l':at:( wnl~ l.hJ\\1ls they <C<:Cl\'C " '"" ~I"" clit,'it..lt fur ,In, rdic~ 

Unnl 1M 21107 C()Ual'''". f.,,,· i".mI...-,,,1l(;n; f~cw inc,)mc !a ~ l'''''hk~n, rd~'nl !(, In.,"~!-", ,Jcb~ 

f"rgt\"~n~s. TnJ.,,),. "'hlle ,ht rOlC nf '" .... d".ut .... i< <l~dlllillll. mall)' fomilk, ~r~ <lil1 los'ng thcir 

hom". l>ecaus~ som~onc in" IIO",",'huld haol".{ ,lob. Sim;l~rly. aboul on""'l"~"cr "r.ll 

h"ffi.x"",,-'N "'" "unllm, .. {",," Ufllhcir ffiQn~)t!:s: Ih~r o\\'~ mor~ on their tTlQrtb"'g;~ (han Ih~ flir 

"""h' ~\oc of tl)~ h(>roC. l'in,Uj'.ICll<k..-;. b<,>lh .", ,hcin.wn inlt~,tkc .. nJ. ,hrnUllh '':lri\Ou~ 

I"");I~' 11.'. h .. ~ ,~>t, I.Il.llll.J. lu.", I" ~lIu" r.",iH",' "lU' 119'1,'" dd" ill (.oak, lU "'''"I.<'V") "'~"''' "hit 

100 .... r ;meTeSt ra{cs. In IitCI.lrn<l ~n: h.\'~ rtt<"fItlr !ltl'red ltp Ihe;r !Ton. to I'eSlrucru", 10''''' ,nll II) 

lI"Cf<""" Ihe ~m"U'" of ,im~ r"ljui'N to d(~ " sh,,,,, s .• t.:. 'I1K"Se I,m,,,.,.,, ... l",,, .. ,,·c"t'. "'" unlikch' In 

ha"c I",<:n oomp1ctc.1 bef",., 'he o..:cc,nhl:, 3 I. :!Oll. c~l"Mi\!ft <If the tdid p""1,io",, 

The Ill ..... ')... ,,'" 1:tX rc!iC( I,,,-w,,jnn< r""ec! ,h .. ,e l~"nc<'w"er< (SOl 1''''g 1$ ,he)' ","'" 'P"<',fieJ. 

cn'cna) fmm radn~ a tu hill )f'Cr an ,:<:,m"m,c !os~(I" wha l. fur IOU", is their m"H .lu~bl" ~~""I. 

Cumm{ dora on ><>·calll~ \ "unll~rw"tff" mort~~S (wh""" ,h., !K'tTOwcr uwtS mOr~ tlun th,' hom .. i, 

clllTCntJ)' wunh) ill",,,.,c d,,, r<,.IHy that huusing ch"U~ rem<!. 

\oo>rtlin,g tJ;> C<m:l.owc,' 3 k.J.ing ~n~lycics ~Il<ll'<"!'<.,.,.ch fitm. about 22,!\"o of ~U V\Vf1cr·uC<'upi<'ll. 

m""Il.~",·fi" .. lC<..J home. ~ho", 11 ,1 million unus) werc "undcr",:ucr" or the I.",] nf {he fi>urlh 

'liliiner "f 2011 (0"'" "urren! d.",). N<)12bly. ,h .. fl,oInh 'luaner llwnkr i. bjgIm Ih~" ,he lIUN 

'1u.1tI~r "f 2011, when IIt7 milli,,,, \""~ (22. 1" 0) "' .... c unJcrv. .. ln. 'I'hi, incr.,.sc in th"num!,et "f 

"mk,w:Her m()~!\<'S !tod","""""" 'he f"'rs"tCIH n.!Un: of ,h .. pmbkm "ft;) ru~"!B lh., ",.n)" 

mon)' tnu"g:tgC"l' han IC'!<> 1,'0) {h"'ugh ,he <)'~IC"" The K'\'cri{y "f (he lIe>?,"'c t<lu't) (<>, 

unJeN .. :llC') r,,,bkn, .. mull :Ie"''''' In N",u, "'hc",, (i l% <If .... 'nll:. lavc n"19'''''e "'l"'n', In th.: 

fin' ,(.Ie. wherc {he problcm I~ mo,{ acute. h"nl"'WflC'. ""h "~W'U\'" ~'l"!ty "vernll" .u",,{ ~4"'. uf 

~11 h"n"-... "'~lC,"", { rhe fi,'" ~1~1es- an:, ,n lIcoc""Jing (Jf(:kr, N""ada, Aru.(> ~, Flori.Lt. "lidlig.~n ~nll 

G<",'l-oia.} 
789 


79894A.731wwoods2 on DSK499XVN1PROD with WAYS & MEANS

'PI'll " 

'ZIOZ .oJ S;}!If.'Of.'U !I"I!i~~IIII,)'1JJ!'I ~, lIVN :JII"IU~ S! UO!SU~I"~ ~!'11 JO JIU13~U3 '(I ~IP Ii 

'·"'-"''''"It:J-.lI)';;:;:: .~) m'! ~,.u"S u"'I,,"<l<u ... ~ • .J()J P"" smq ;';~'l' JO '1'0<1 J<I ~11;} JOJ "' .... "'odslX> 

1""""lrl)" ~"I~;>'"", "'l!I~" t>'I.!. '.;\ll1U""W 'U~I,!<'tllliUIJ.!<~'~'l' 'OJ 1'1 i~J\' JO ~, "" ~'ll i/UU"l' 

)(1 u<»}jU! I;~ \ "I ""liP' SlI( >,L' I\'!n1 '([P" "lI] 'XH '11'11 pu~ ·,*u~lI ] (~;;r lI.· ) '1l!<l ~"""I I 

'Iloq uo<l.ln~ J . .\\ '",,!~! ,,ud ~t'j! JU "n!S"~I~;) lie)" HI""'l)eu~ ipwn I.IQtldM "J ""n"l,u(I3l{VN 

.:(J(M)\IOi'S' UC'II S>"ll~ 1""'11:.\ S</w, ''I filuou ~ .'p,.o,u pU"OJ ! .Il",h., 

~."l,,;tlNI' 'l'.lIlU..U;):>u") t .il!"h, ""UI'if~" "'1'.1" n'1"\{l ''''''1'''.' P~"w ~'(l J" pu."l '''''I ~'tL. 

,"~IU"'l I>u.' .",""1 '(I"'>W h'U!,~~JJF. .. ",-,.'itfuJ"Ul Jal<.",.'I'UO JU ~'U.'pl~l" ~'ll i-l<Jf.""'''1' ;:l" "I"" 

-:If.! ..... ,.'.l,'::> ~ "<"1 ,,!W()lll,~" "" ~J""Ul ,i!l"lU~~J"""",,,,u"''1 J..,J~d~VI .>111 lPi4-" In U('!J'C~llt;.JI 

.01 "I'I"t"'lu". ! ~1""~U! W<JllWld "'11 :',,~~ ~I'll "1 '.'lWO~O I II""" I"U ""W(>~ul lU<Ulmld ·'.'"d III 

<J~ ,"ul ''II u;"Ju ~'" SJ,,' • .!Ul '~'~ Y '1\1 ;>S"'~"'l ",uml~ UlUltl~'I Il)u u,,!,~x~, r!<J.'Y 1.'I 1<I[l1~' 

p."uu"~J iJl>U.'~ '~'l.G!l'''' x~.L '~W<»1I! .. W"'''"'lU.. ''';><J ," O~! UOU~~'U"'I U(IIl"IF'.)o"" ;o\I~"", 

" U! .. 'I"O:>U!o. ~'U. 'r,"'!~"'" J~ ... ~U ·'.\r.'1 (~41 '1'"~ 'lIlA' lSQI ,(P''''I" ','"'1"'>111 ~>uow "" l'·n",.>q 

II"" ' I""I"" !P"I U"'~Hl(> "uoJ!'''' 0 , .'011 PI1\u/\\J-l!jolJ ""l1. P~ll ~ ",<j.:n",w "4' ru."X~ '>J ""nfli'd 

",UUJ1llU~ UOU'. p~~!J~)~IU"'1~ 

X[ ,il-''';''''''>I' u,' ~''''r!''·'' I~J!,,"uJ !I.lll' I'll ,\.>u",u »"1 :>'''''1 ,""1' ""4'" XI'! .;"'! 01 P'»'U) X[ 

'vv rl"(,"l" ""'I.I.N"'""'I! \lJlUl.I.W'P .l!Ul"'"'''''' U. 'ilU\.mr '~I!1 "luouP'! "lfl ')"'1·1 llf~,,,,,,I$"" .:>pun 

~JO .. ' ~~!OA" u<> ~It" ~'lIuli :nt) Ul ;.:.i'~","d l~u'J pu. 'IU;'UI""IJJt: l~UOJ :illQW!".ufI "Uo p.",.d 

1"~'.J.l.\ I~mS ~IU 'LZ - \lSf J" ~If.<.' "u" ,I!." i?t 'X: 1fl \ J" ~""" ... d "'in"l \ ',iJ!"'!tUl m"'!l-'.<l!'l 

lj[]nuj:>'1""~'''' u. 'll~" p.XStd II '"4' s~ "'''I"l<tli~1 ~''1' J" l""Ul'IJ.' ,,,I,,u,, I'I">".,~ "'l.L '''''!',. ~~!"b P.""I! !;;>~>tl '!S,"," jju!pu><lUlI U" ].11' u0;ld:>"",<l :>p~" I' S;U''''~J''I)U'' [>ol)~",,' .... , uO".I<~'1 

ll' '1'"1''' '[l~n rnJ,.)4.L ·uq1. 1,d.'1 ~tl ,'n'<!"I'ilU!~ fl~ru1 55:U\\ufQ .1&'11 :>It. !'! '1 ',,")<\Q.l jll lro<J 

~ J"ol '11"1 '(luQ.llut;;n0'l °n"'u. r..ow. 'St'X 'lrt I 'W'I litll"!'''!''''':>tp 0 1,_",\ .•• ,~!., 'lU1IU(od~ ""I "t"1 

,~U! ~1I1>!un ." ,n uOjml;d!~1 "'lJ. 1~ J.W <lU!",,"'1 )jll"~p~l'" '" ""p.n'<) "'" w~" r""~J s!.nl'!~!p"l 

J I r-'u~uUJI''''' J~'llJ''l "'l l'ln~" ,(w"'l<p., "ll'i>!..l.l-JI'U.>JI" ~o U';!I~U ll' '"4' \'iU!r"~I"'~run 1'",,,.ls.>I'!-" 

I f." ~''''I' $n~ P"I:>!!U.' :uJ." """", ,,).l<lJ~II·"U ~ll.L '<:>1<:'> :I\IIf')tll .ueU!J'l" I~ I"':<.~ pu • . ",,(>;)In 

~ r""""l S""" jU'''IW" u~ \!~,oJ ~"I 'l'l'1' .,:.MI., ..... " ~ J" ""'''''u .,,,. ""r!i.t,'.1 J.lr"~ ' J! O,'~ '<lUd 
790 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.732

In ,he comn( vf d,e mor'gage ,rans.err"", "'" wish 'u comm,'nL 00 • provision (ha, W'.' u,.<1 (0 

"pay f'lt" the 2 """",h pa)'rvll IOU rrn ~itJ<, COllCI,·.! in FtbT\tuf}' of rl,;' )"I::lr. 'Il,al prt>,;,i .... n. Ihl' 

",,-calbl GSE ),,,,.,,,,,,e.· fcc (G-fc~), t.",J~~" d,,' « ... 1 ,-,;,.'e IT."',"C""". \X'~ t.,·~,·v ,'" ,,·.o,dd Ix. 

,ni.,Qkt f,,,. C""gr.".,; '" inclOS<" 1M! ftt U. Ihe Cllfn"fl! .",,1 e;(~le Ol~tkcl. ~ O"!" it:. i,u:n,aocs ,h., a", of a ho" .. ng-rel ... .! rcol ",taf.' IML<actiun. 

The N.tI(~,·~ h"uSUifl ;"c<(>r tcmams ,,, . pt,..,,,no,,, ,1. 'c. 'n",ugh w,' j;tt ij~" ofiml" .. "·,,nlCcn(, w" 

ur)..~ Co"W<'~ •• n lake no StCP! thaI cmJd 'c",ul rl,", «em'ct)' aud uhim:r.dr ",,,,d our ,>"C.:ll! 

'"CO<I()m)' inw ."",her ,.i!,pur. lnct,",sill)l: (h ... G-fce, ""m ju,. e';,c"dmg ,h"cu""~,, fcc incre:u;c, 

cffl'clinlV I .... w, l>o!h 1""e"\1~1 ""ml'b"rel~ and ,,<),,"ume.-.lo<>k'''8 '" .din""cc .hnr m,,,,W';;cs,.r 

Q lUn<" when th~ h.,u,ing ,eelur c." I~ •• ( aff"nll~ \X ~ l>/'~"w lrun all)' prr'l")<~.! G-t"" lncr~~'t 

.. "uJd k,'~1' 1't<"",pc:~'iI't' h"u~i1l)\ "M"'r.mct< <M' Ihe side/ine "'Id prevenl Ik 3bw'1'li"" d,e lI,umei.1 

Syja~nr's larg~ real.eSlale...,wn~d [REO) invenlOry nrr,,!"<'dn!oCd tlPCrtl~S. Similarly, \\,e l).,l;"\"e 

Ihal any intn:~s" oFllle G- Fecs would r(-tllle" lhe I>cncilis of lo"n modilltalion fnr those indi, id,,~ ;; 

who on: c",rent in Iheir payments bu, undcrwatcr on their mortg'I''''' We belie .... any tax law 

d,ar,!,cs thai ~ffe~. h!}usi ng should h.\"e ~ .heir prim.I)' purpo,~ Ihe sual ()rk~epi"g I'C5flOnsibk 

COllSlliMrs in their horn~~, 

In 2i)!J.l, C'IO!-""'" ,,,,\di(,,,d Ihl' rul"" fv' .h,' dtl'",c:iarinn "f iir'rftJ",'n-..,nls ",ado f01 <h~ locuefit of 

",n.nll! Ul I~~ ,cd .p-.c~. I'no. {(, 2014, ,f. f"'"'I"'''J' """ncr "'~"ni;gu,,>J "'. rmpron-d "pac,' (or 

rcnan«, 'he co~, ,,( Ihoa unpRiVernt'1lt>= wM rccl,,"~n:,j in .he s~ n~ ",:In",,' j!; .he e, ... of .he 

'n'c'u,C iadf. '10 .... , .he Ct,,, "f Irnl"ll<"cmcnt~ It, lc."",1 ~f>"tt W .. ,re",wen'd <I"Ct .W )'c,"'. "n'" 

rJ1<lui4t rJ,,' imrr''''<:ro<""r WI_ <:Ird)' f1<'nn:rncnrl)' ~ffo<,-J t,. th,,~trucwtc. ~,d ,"'ITn Jh'",,;,h lite 

d"roritOn of lhe J~.", "':\' ,ign;fic-,onl!r e,~ rh.n 39 J'c,"", The ",,;uh w"A.< " dir.ninutr.'!o>l "f .pp("priar~ 

",run, "" ,he tmpw.-emcnt •• Ild "'",!<id" .... lrle we ."d rfforJ-hcrr.ng c"mpl"",.), rudmillords_ 

Th~!oC l'ti)lrlc",s "",,,, l'anicul.rlf 'cu'''' [or landlord, wHh I.~cr. muhi !<~ .. nl h",ltling~, 

Th. 31(J~ ch."),,,,, wa~ "",J<- h) mou' 'CCUfilleI), rdltc! ,h~ ecrlllO""" ~fc "f ,I,.. un"rove",""(,,. 

!kfot" ,he err",.", <JePK"".";",, ~'s.cm w.~ put ,n pl.ec, ,he COSI~ ofl.,.""h"ld impruvcme,,,, werc 

m;, .. ,,-~"tc4I over (h,' .crm (If the k.,."," Th;' method ,v:u; "h~ndijnctl when the ,kpn;ciaUQn s)"1!!"'" 
791 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.733

\\'.~ (,,"(rh~ul,'J in 19111 ~"d ~n the C~1li associ.ret.! with the d,"I' .... -.;j,.ri,," of r",,1 prop,,")' Wert' 

tcC(),-eret.! m'er 15 )"c>rs. '11,., IS-yen l,cliO<! w., "cndet.! to IS )"urs in 19S . to 19 """ in 1985. 

31 yea", in 1986 .nd. finally. the currcnt 39-)"e,r life w .. s ~n"ctc ... 1 in 1 ?'J3. t\" c-.;onomte dl'pre,,;on 

in commercial rell c~wc 1"'f\\.Ccn 1986 and 19')5 ObKurl;d Ihe ronnie e«lllOJmc ,mpact "f 

=o,·"';ng the COSt~ for ka,ehold impn)"<,"'~nlS '" a more economic ,namleI than th~ 39-)' .... r life . 

. ~ Ul<" cununcn;;al teal eState market imprl>"l"<1 ovcr .be fQIlO"ing dl"Cadc, the'l<'cd fur ~ ,h<;'f'lct 

I'ffOW'Y I"'n,xl became mon' ~pl' >rL·m. 

£ven.he IS-)'t·ar c<>st ttW'Ur ~nOtl is IQ,'t"r than ,hi- lif" of nll,st ceonm~n:lall~ t~, When ,he 

pro,-ision was n.octl"<l. the teml of a n~KilIll a;c ""lI~ Iypicall)" 7 - 10 )nn<. To,h)', pen<~ng 

financial accounting standard, (I)uld mAke the !l·tTlls ofka>t'S "'''CI1 ~hoM('r The Fi"ancial 

Accounting :'13"darus Ik .. rd (FASIl) h •• prol"'sed ';13"d.lrd, mOL ha,'~ mI' dfect of m-cr"ating. 

kssel··. Ii:oi>ilit)" for fumtt' """lJi. \""r"""ing th~, Wii>ilil)' i. prl-diCl"d '" cau"e le .. e"" 10 "",ck shaner 

k.", ~ "'m,! ,0 "u lg.~'e "he 1")!~lln~! im al1lnc,, ~ '0 ,heIr fi,,~nci.l s,",cmt:",~. ~hnner le3'C~ ",11 

~ Ill<' "ffeel of ",,,king; ,h" IS-y~ k~ho:)Id ill.lpro'·e1uem COOl '''''\Au)" I"'riw l",'en less 

l"COllom;C ,h.n i, is todaj·. 

'I1,C k~sehok lmpm,'cmt.'H h.". unfornm,tt"ir, al\\~,y. bct:n " ,empor,,), pfO\,.ion. The", l, ·~. ~<' 

SO m"n~i pro '1~i'''l> "" .u,-d nc" .00", 2003. ~n: ~mpOr:,,)" O..'ClIU;C of pro("l'd"rnl ,\.."fTI""ds of ,he 

i>~t 1"'OC'"'s, '>(It b<.'<::>osto of 'Ll)' flaw in Ihe n~<$ ,h mseh-es, In facI, ,he lca~I«lIJ ;"np<O'''''''':nl 

ruil'S ha ,'c typica ll)' enioyed bip~"il;an support. 11,r ~ ~im fj' COSt reeo,·cry tllkujations and pnwidr 

.n i"c~nt;\"" for "".",.", tt> itnl'fO\' ~nd moden'i2c ,heir Prol"''' ....... Tod.y's ".,,'cd ron<1ruction 

mdu.n,y wm~d oc lInpo",,,, beneficia"", of a rent " ... 1 .nd ex,,,m,oll of ,he'i<' rule •. I ... ·u.ehold 

impm"'''*'nt. c,~""c loh,. 

,\ccotdinglr. "" tbe merits of the !ca><:hold ullpro"c'm,,,,, ",lc~ Ihnn.\Ch-('S, and 0Tl the ob~ nealion 

Olp"dry tl'I>!it· ru ~ Crt·~. . NAR full)" ~urp<J"'~ I-LR. 1 U~, (~ l.>il'~rt""n bill ,,~,h 115 ,,-,,,!x>niKIrf) ~od 

,I> COfflP" ,j"" S. 687 (a b'p"rns. n i>ilI ""It U cospot"",~). Bolh bills ,,"Ould ... "ew th~ IS·y"ar co.r 

tcL"O"c ry 1',,.,<,,,1 rO[ Ica.chul<l ImpWI"en",,,u ."d "," ke U pen11. """'" 
792 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.734

Env,roon,enlal Remediation Co~IS 

In 1997 •• $ the comrmw.i rcal <',11I1C m.rh·1 oc8"n rebounding frum Ih~ 1!lM(, - 1')0)5 reo! e.,.'e 

dcpre.,ion (:I<:C 1bo:J\'t). de,<t!I,pcrs of len d'~co\ crc...! II", ~ m,~jor ob.\IId t' 10 con'trocllng 1\0,.",,-

build,ngs and impto"ing cOllununiti •• Iva" the prts"'lct' of ",riou. conramin,,"ou; (>n the land. 

P .... r~ring ~itc~ 'V .-lirni,,~,e Ih~ C<}l1 "'nin.o' ~ ""', (~ nd ..... ",:UIl!I). ~>gnif"" t (<)« both in 'crrn ~ of 

Urn" ond money. 

POl!)' ,{j 1!><.17, th",«>51 tlf cIcAn"'8 up C(J'lt*mi,\"nr ~ had 10 h" <:aptT"li~L-J 'nl(J ,he <:051 "r ,he [~Itd 

ilscl( .As l~nd is 00t,.. dcr=i~bk 1,0('. tooSO' ("rutS bream!" ~"nk COSt. that w= nOt =(wcr~ble 

until th(" proIXM)' wllS 5<,ld. In nnJ~r 10 chl(\'" Inc dcs,t:tbk goo.! nf gt."ltin!\ propcn.ie~ dcmcd up 

and 1'''' to l""lf be.!1 usc, Co''I;ren dc,~rminoo ,hat ,he co.rs or c""ironm"nt~l remedia,io" could btdeducI"d lIlthe )"c~r the), wcre IIlcurI<'d. '11"" b"nd;! expi",...! .. of J""U31)" 1.2012. 

WhUe Kf'..AI.TORS gene",U)" u ': '101 de-o"elop<:rs, th~' ar~ Qfn:n .SS\$! d"'"eloprn in th~ir land 

acqui~itiQn ~co,·itie. "nd.so have ~n i""'re~1 in 'he t""]$actions ,hat I~ad to I.M de..-dopmCln. To 

the exlenl tbat C<;)JlUlUlrutit'S \lrl' nhanccJ br the em~ronrncntallmprol"~rnCnt>, our m .. mlK'rs al,., 

I.><-"Ilclit a. tile """id""1< l"",l)tI"lC more '''9l.>Ue and pn'P"~' v<\luc, irn:rt" ••• : Qr~. ",~id(~,~< ~rc 

a",'.etW 10 the UTlprm ~d 10<:3non. ,\cCQnJ'ngi)". N,\I{ h"" ~lw~l"s ' lIl'porfcd rhe efforlS of Ihe 

org,mi,"nOfl'> comp" .. -d of n'al dW~ dn·d"p<'r. 10 .CO' .... · pctll"'"cnt rul ~ th., a1lnw <'~pc:ming of 

<"f1"m'UYlt-lll:Ol n.:nwd',1ti<"m CQi.t". 

Disltic. orColumbi" Finn_time H ornehuycr Tax Credit 

Congrr;s c""'l~d ~ fif>t-limc honll.·b"yu tn credit for the D'imCt o(Cohunb,~ in 1997. when hoth 

lh~ cit}" populalio" nd t.h~ I':II(!~ "f It ~ hom ~ " .. " ... dedining. '11>0: crOOit \\"$S 'ntended 10 ot"'Kt 

p<."Qple b><:k illill th~ citl ~nd to \)., a mccha,mm 10 .(imula", ~nu support 3dd.i ion~1 n:onornic 

~cti"ifl . Us dle t.unc of Ul<" 21)1).) (ltJ"<,, the ,«<illr b~d nOt octn in place loog cnOl.l~h tv chm)1;O: tJ,,· 

lrend of dcdinil1J.; l>opuhti<.>n_ f' ""Uy,~" ,he un,e <,If ,he ~I\I) C""'U', ,IIC Di"ticI "xpcti"nc~"(la 

popubrion IJlC"">C. "nIl, popuJauon h"d 1.><-...." in dediru' 'UlCC th~ 19:;0 cen ..... 
793 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.735

N,\I{. :a.lortg ",;d, ,k~ Cf<'01~r C~p"<ll ,u",ICU1';'''' of I{",ltur< (GCAR) ",I»ek rc:pn'.<en •• 

Rr_\LTOR$ <luin): busj,,,,,~ in 'h~ D;~I"CI. uPI"'rtS ~o cxw"~; ,, or Ih;,; (u ere..!il, Trw D;~lriCl 

ClU' onl)' ;U~l2.ill i(~' """··('",oJ ~flP<-1I1 '0;, )~'U ")( burer; \\'h~n .h~) come m th~ city ~",l ~,u"u~ ((, 

"l:Ik., it ~ mnre ~I;" , '~brn"l ~vmmuJ1iry, C"n~nui!l!\ the rJ~ creuit ",,ij ,'Omncc the O;stri(J '~ 

"1'1"'31. Humc"""en;hip i. ~ot:m:ial '" <u.mi"1IlS the O;'<I"CI'. pro~"",,~ ,nwaru ot:lf""I'I",rti"f! 

''C''lrn)rnic \~br:lncy. \,\,Ie urge Y' 'u III ''''Icod dm. iml",nao' pr<J\1~">f1, 

C<.>ncLu~ion 

The US "COl1.)n,), will fIO( impn.we " ,,(ilth.· h"using ",.rk~( i" fI<It(;o.~ar "nJ the bro.a.lcr "..l estill' 

n""hl ar<' "" an upwanl m.,.'Cw,,·, I:"eh uf IllL.,..' r")y;,;on. w"uld hdr srab;liz~ :mu su""mn both 

til<" h"u"in~ .n.l .he "ttnmercial ,,:oj ~~.alc m:l'Ki1" \\'e ult" .heir umdy ,,;new:d "",11M i:~lcn"i,~\, 

Quc~u""" rellllcd tn ,his ,ta,e",c", can Ix· <h",eled '" N,\R's Till< CowlSd, Lmua Goold. ~h" ca." 

I,.: ""ac:h~J ~t W2 383 1()83 ur at 1t.'<.,<>ld@rc:.ll!!>nwrg, 
794 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.736

:faRl j ........ Wriuen Testimon)' 

SubmiUrd ror tile Record 

SubcO n1minet- no St-IKI R~, nu ... Mu ur~ 

Cllnlmiutton WM)'S and Muns 

U.S. HOll1f or )~ nI D' '~ 

IIcarin g un Certain Elpiring Tn Pru\'isions 

I\pri126,2012 

Tilt' National J()m(lbi ~ Dealers Association ("'NADA'") apprcdates (h ~ opponullil), to 

provide Ihi, ~IU(CmCI11 ror Ihe re~"'N in COnl, .. ",(iOI1 wilh (he April 26, 20 1:? Suboommhll'<! on 

Scieci Rewnue Measol't"S (",S(,bcommiu",,") htwinl; on cennin upiring proyisiol1~ . NADA 

r.:pr':SClllS 16.000 QC", car and tDlek do::Jlcfl>, both dOIHc51ic :md il1(c",aliQ~al. NAOA also 

OrcrJh.'S NADA lJs.:d Car Guide, "llich has t"'.'11 in production nc~ 1933. FL' .. kral officials in 

Ihe DCf"lnmCtll of Justice alld the FcJerdl Bore-dU or h", ~tigal on ~ NADA Us.:d Cnr G..,idc as 

" used ",'hide va luali'm source for asset and forr" i1U n: purp05~ while 1111: Social Securily 

Admilli~lr~l <}n uses NAOA Used Car Gnjd~ as a lISt'd ""hiclc valualiQ1' Sl)urce 10 hdp delcm,in.., 

bcnd;lS_ 

We focus our remarks on SL-Clion 5 12(b'll, I 31(1)) or,he Imerna l cv~nuc CQI.!e, as 

ori~illa ll r em.cled by Seclion 1205 orlhe ell~iOll l> l"Qk",li on ACI of2006 WPM (1'.1.. 109·280), 

and subscquenll)' Ulcndcd b), SeClion )06 of Ilk" T~:< ES nde~ "nd Ah~'I1llItjvc Minimum Tsx 

Relief Act Qf2008 (PL 11().:!4)) and Se<:tion 747 of tile Tax Rdief, Unemploymenl Insnrancc 

Rcanll;or;zalion. and Job C",alion Acl of 2010 O'J . 111_31 2). s..oclioll 512(b)U3(E) c.spi",d 31 

lhe end of201 Land NADA supports the I'<'"nan~'" ~le ll .ion oflhi . pro"i,ion. as well as an 

expansion orlile provision to ensu,"" cunsislenl lre31mcnl of all :similarly iluat~..J lax-exempr 

organilllt;ons. 

IIISTOI(\' 0 .. TilE PROVISION 

Payments ofpas'i,'c income, includin!), ;nterdl. renlS, ,,)yalti~~. lind annuilics. an: 

gcncr~lIy nul su bject 10 1:1:< when rcceiwd by IID. --c~cmpl ur!§l1l;1.31iQns (i.e .. such income is nol 

treated as unrelated busil'lcss lI»mhl e inc(lme lUBTI)). Sec, e,g., S,'Ctions SI2(b)( \}, (2) nod (J). 

Unde r Seclion~ 512(b)( \J). I;o',",",'cr. Ihes.: JXlymcnt$ ar,' subjccllo In ifllley lire recei,'cd from 

~ ·'conirolll"d org~ni1.11 Ol'l." FIlr purposes ofthis pro\lision, an f'.""i7~ ltiOri ls oonsidcre.l ~ 

controlled organi7..;llion if the IIIX-(!)(empl Orf'jl ni/lllion had B direel or indin."'l owner.;hip nl~ ",sl 

"f50 percenl or molT in (hal org:mi7_,lion. 

Sc.:lioll 1205 nflhc PPA CllaI'tCii Se~lioll 5 t 2(bXlJ)(E). which pmvid~s 1001 inlcrc51, 

"'illS, roy~ ll ics and annuilies recej .. ~d b) a tax-ex<.'mpl Wf'."n il:alioo fmm a ~\lmrolled 

nrgani11l1ioll wi ll olll), be nx~d when the IXlymcnt c:<ceeds fair markcl vu llle (Lc. lhe amOllll1 

.... hi ch would h~, c he.:-n J),1id if51ICh pII)'mcol mel thc ~l'iren'cnls ofSeclfno 482). A 20 

PCl'I:cnt penally i. impn>ed 011 111<' umllunl ofany e:<,~ssi, e paymellls. Sect;1I1l S 12(b)( J~E) 

onl)' applic5 10 pa),lncnls made under binding wrinen commcls lor Ihdr renewals under 
795 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.737

NUlional Aulomobile O~':Ilcrs ASSI-.;ialion T~~limony 

l learin!!, on Ce"ain Espirins Tas Pro, i~ions 

Page 2 

substantially similar tenn~) in ei1e.:1 on Ih .. dale ofl'n"etmem of the provision (i.e .. AO!!,usl 17. 

2006). This "fair marl<.~ ·1<'St ha.> now bt>cn in "neet for tliS years 2006-2011. 

Section S12(b)(13)(13) co"""ted an anQm~J)' which resulted in lax-e ~e'npt Qlgani7.:1 i!)n~ 

becollli'1g lioblc for lJllTI on payments ofra~5ive income ewn when they reflect fair market 

a'nOll'lt~, For example. Illany tax~Xclllp1 organizllIions =ci,~ rents m:ln "arn's length" 

amount rmm t:llr3ble lI bs;d aJie s thal "ere ('Smblishcd and operate for non·ab ... i,·e purl',,~e s. 

!'riOr to the en:ICtmenl OfSl'Ction S 12lb)( 13)(E), these 13,;-excmpt 0~3ni:citions "'ere gubj~cl I,~ 

la" . e'-en 'hou~ 'heir ri.·ce;pt ofrents fmm unrelHled organil 1'ions under 'he uact SlIme tern,s 

would nnt be subject to IID.. 

By incorporJtiog Sectiun 482. S~'\:1ion 512(bM,13)(E) rccogniz~'S tiM fair ,n~rk.cI val"e 

I'M be ~SlJ.lbli~h.."<I generally by ",ference to ~'U()\lnt.s plIid in compnl1lble ~rmngc:men S 11)' 

ulI ..... loled third pm';cs. The Internal Kewnue S~rvic~ r' KS" 1113 ~ e.xtensiw e.'C p"rienc~ in 

lIctcom,n;ng the fnir markel "al" .. of transfers betw~n relmc-d fIIlrti .. ~ under Se.:tion 4R2 and 

al ..... ady applies S~til)n 482 principles 10 olher tmllsaClioll> jnvol~ing. iax-t:xempl org:llIi<!lltious. 

Fnrexampic, IRS letler rulings- hold thai Ia.x--excmpt "'g:mil-'lI;Ons musl "om"ly with Section 

482 in Imnsftrs ofla,;..e.\empl pruj).)rt) . Since bolh the IRS Dnd 1axP.1)-'Crs hmc c,;pcriern::e \lilh 

Ihe:;.: rr1nciples. 1m, polcn!i~1 fQr abuse 10 Ib;,; a ..... na is limiled. More<Jv~r. ta~",xcl1\p! 

Ofgani7.3tio"s IhaI .-.:eei"" intc""sl. rent. royahy or allnuity payments frolll a oonlrQlled 

urj;ani?.lIlion mUSl I't"JX.'rt paymenls on ;nfonnalionallax ..... tums "hidt provide a readily 

o,'uiluble. publicly trJIl51'Ilrent audit trail 10 idcnli(v potcnlial "buses_ 

SEC flON SI 2(ID( I.l)(E) SHOULD DE PEkMANENTLY EXn :NUEI) 

A, nl)1cd allow. S<'C1ion 5 I 21b)( I3J<EJ c~pired PI Ihe 1'00 of2011. We urg~ the 

Slibeommillec to pcnnaOi.'nlly eX1end Ihe provision. relroactive 10 January I. 2012. This 

eXlension ifp3"icularly important at a til1l~ wlwn I',o" ... mmcnl fundinll t>fmany ul~-eXel1lpl 

~niVltions is being subslantially reduCM , uch lilat the organil:ltlons must enter inlo 

Ir.m"aclions with pri"at~ sl'Clor <JI1; ni~ .. 'ion" in order to pursu~ Iheir t'dx,.,.~ rpl purposes. 

E.~ leno;ion ofSc'1:tion 512(b~ 13XE) will ,'rmbl~ la.~ -t·X\!l1lpt organi...:llions 10 Crier imn linn's 

Icngth. fair markel ,·aluc tnmsactiol1s wilh privale 5C~t'lr orgnni7Nk'lls willK'Ul an alk\;1ioua l 1aJ< 

burd .. n tilat wonld rt.'d(lt:e lhe rt'!>OIIJl:es they c~n de~ le 10 tlleir ,:t.~ ~empl ptll'J)OS<'S. 

We lIote th:11 the Amcricllll Oar ASSllCiation S~lion ofTas~lilln has 31w reC(llllmended 

lhe I"'m,anent eXlcn5it)l1 fS~'1:tion 5 12(bM,13)(E). nOling "the 5ubslanti,'.· chaugej; <If ..... '1:tion 

512(b)( I J) made by lhe PPA should ~ m8de permanent. Inllalcd pricing in related-pan), 

1mnsnc1inn~ would ren'ain tn.,able l"illi 3 penallyl. "hile ann's length dealings w "ld continue. 

This llpproach I>'ould place tU_";~mpl ()rW!n ~ations .... nthe same fOOling us laxaillc cntitie~ lind 

\\"uld nO lon cr pemlilc tran.actions bcl,,~en tax-e>.empt ore-lnilaliong and !heir related 

organil.alions. H

' 

'A'ntri,,.,, fl., A"", .. ialm... SKt;'><1 "fT ... ,;..,., c"""""'~. in 11.""'1100"" to, .... lI.oqu .... uf,"" Subc'""m't"" "" 

O,· ..... ,gh, "rthc w.). &nJ .\lNIn< Com'n'''' .... ~,"~ ,100 1'",."""" of' ht I'm.M," Pro'«',,,,, Art of 1006 

Aff.,<l'"11 Tox E.w",p' O!pni .. l'un, ~A"~. O. ~oon 

, 
796 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.738

Nation~J AUI.;)mobile DcaJ~rs A5~ialio" Te<;limoll), 

H~arill g 011 (<.-rIain E~piril18 Tax Pr.;)v isiOI1 $ 

Page 3 

secnm'i 51 ZU!IU.J.lC.!i) !o> IIO Ulll BF. .:XP,\o""OEO 

We urge 111<' $ul:K:onllniu .... 10 iTlC Illd.- jl/:'rl(o(:tiol! language in S~clioo :; 12(bll.13)(f.lIO 

ad\'2m't' Ill .. lax jl<llicy inherenl in lru., Stalllie BIld p~I ~nllll<" incQll siil~ nj 1!"C3lmenl ofsimilariy· 

silu21ed laX exempl organizalions. Section SI2(b)\ J))\E) tu...,nlly only applies 10 S(Kalkd 

"quaJilied sjl/:'cilicd paymcnt.>:' which r~ dcfirn:d as pII}m~nIS made pU,""Ullm 10 a b inding 

conlr.JCl in efTl'Cl AS ofille dale.,f fl13Cltnom .,fln. P»h (AuguSI 17. 20U6j or a conl.-dtl which is 

"a ~ncw3 l, under sub.>iantiaUy ~imi)3r lerm~~ of~u<:h a 00111=1, W.' urge Ihe Sul:K:ommittcl' 10 

remOI'e the "ql13lifil'<l SpCc ili ed payment"· COnt"i:pl in order 10 cspand lhe 3pplic3liQ1l OfS~clion 

5 12(b)(13(EI tx'yund pilymtllts pursuanl 10 "OnlrJel$ ·");!'andlltlh .... ed .. by PPA suc h Ih"l il appliC'l 

10 qualifying pIIym~l1l~ made under any l'()llltllCI (regardk'SS o flru.' da ~ ofsuch CQ'l1rolCl). This 

c~pallsioll "ould ens ure conSis\C!1IIn:almenl uf~imiJarly situated ta.~ .... 'xcmpl rgan;~aliQ ns Ih .. 1 

cOila!,;.: in ~nn s Icnglh. flir markCl \'alllC lrallstlCliollS Wilh controlled Ol);J nizalions. r.:!!,lTdl~s 

9flhc dale orllle undL'fly ing cOlltntcl.: 

NADA l'O Tl Q~ 

~I on 512(b}(lJI/E) should be ","de p"n naneni Dod should be ~xpa"dc..J 10 co,er 

pIIY"'~"1$ PU!"\lualll 10 new as wdl as s",,,dfalhcr.:d cQIllrnCtIi he""l"<:n 1.l .~ .exCmpl organ'lmions 

Imd tl""r cQfltrolled o r!.!"ni/.alion •. Th" "c -<:s h~d priocipk'S of Section 512(b}llJl/c) 

haw now been applied for ~ years. w Ih~", is ""cry reason 10 make Ihis provision pcnn:rncm. 

In so doing. Congle",! will also p",,"cnt any new. long ·lcnn uneenainly thm Ihc.e. piml; n "rlhe 

provision clcalcs for ",any la~-c~e"'pl orlY"'i/.ations. 

l\;hIJA commend. Chainnan Tiberi. Rankiug ~k",lx-r N"al and Ihe enti", Sul:K:ommiliec 

fOC3<:lh·;:jy ~'<> itkrin g lhi: <,xl..-n,ion M ,,~ pirin f: la •• provisions, appI"I,dali.'S Ihe opporlunity IU 

pro,~dc "ommenlS on Ihis imponanl ",,,ncr. and urges IlXpcditious ""I;un Il'> achinc pemmncnl 

1lI~ In .... in Ihis arC~ , 

, In Ill< .,om Ill< Su"""",,,,i,,.., ","',M ,II< ·'\1.""l if~,"f. "",'Cili<J pIIym""" <~"",p" '" "'go 1lW Sub..·"",,,,iu« '" 

eXI'II"d ,hoi """'«1" '" ;""Iu.:t< "'" oBly ","".,,1. o.md.,. ,~I>sIa "';.lI y I;mi hl, I<nn, "r "gnor.IIio,h<r<d- <10",,..,1.1 lou, 

. 1", n<w <"""""'" wi'" """",-",,,1>11 ) .""it .. I<mI< '0 _h ~~ran Jr'~l ffl<f ronln<:l< . .. Ctlmm<n::i.o l n« ... i" .... nil)' 

""Iu''''' th< ,'C~'i .. " or. "'''' <"",,,,,,I rot"", 'mon ''''' 1<,,,,,,·.1 of "" .~i"in1 <,""trK' . 

3 
797 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.739

Jiiio@O@E3@8. ---",,-,- ... 0-. .... --- -.,..,.""' .. " ..... Am{llfca '.f AdYan(('u BiofVel -.. ,.-- ''' .. -'''' .... Wrlnen r ... tlm .... y 01 Anne ~'e<~.j 

Notlona! Blod .... , 80 •• 11 Vi,. Pr. ,iden' of fell".1 AU~I., 

~ubmlnoed ,g ,he U.S. Com",'tt •• "" Way' and Mean' 

Subo:ommiU •• "" ~I.d A .... " • • M .... ' ... 

Hurl ... on Cert.ln f.pln". To, "'_'on. 

Aprl) l6, lOU 

_m '''''''''''-.'' 

--- ,.,,,....,-

--~ 

r.",u,lw Stimlll<ll)" 810(1;0 .. , 1, • ,"newable, ""-artlon die •• , ,eploeemen, luel mod. hem .n 

l"",e"lnll~ dr....rH mi. oIlelldOlock. Tr>eludlni .i'1CYIIUr., .......... cycled toOl:l"I oil, n~ .nlmai llt •. It 

i. III. onlv IIOmeUic. 'lv ~to<I","", <""'m.rc',~,c,'" AelYanced Biofu,' - •• ~n"" bv III. 

[n"i'on",e",,' Prn,oclion AKO n<y (EP"') - ,hat i. .di~ o"oil.bl. Ind .,:ct'PI<Ml n"iDnwide, Il m . . .. I 

'If;':' ASTM lue l w,,'CIJ;cotion ond i> ... d In •• T'tinl dl ••• 1 en!I,,", w;t~OUI "CKlifical;(m. 

hI in ""'rlllhtorv, I/\fc _ ..... , 10. <~nl"" hi. K~' •• e<lIU <1 .... ",<1 _I 01 ,'Jmul.tlng II,S. bioa,enl 

p,oau<tiOn - ,,,,,e"!"1 m. <lom •• Ue m.<l<Jlaetu,lnl of I <I.an-!"""inl. ," ~",. ~I e luo l While ,,~,.tfIIl 

JOD., ,ed,,,ln, ""'''"CO', ,.1;. "". "" I""it" ~i l aJ><l imprnvi"""" , •• wlttlnmenL 

WMn Iho Ia . '""nli,,. WI> .,,0<1-..1 in 2005, t~o U.5. poOdu<.a 112 mill!"" g.IIoM of blO<liHel. ln 2011. 

wi'n ,up",," f,om the .~ n<:~n'''' •• nd ,ho RfS. ,,,. itldu<tr;"" ~.,., w o.<><Ioc';"" rK1l<o of nn ..... 1.1 

bl lli"n ,0110"'. ,up",," in, m<><. ,ha" 19,OOC Jo'" O<ro," Ih. <"" n'r; w~I'" l"n"",lng ;It I . .. , 5628 

",I"ion In f.d . .... , ,.,. ~NI Jooa ' t •• "'''''nu.,. a«ordillll to • rO",ot .",no"", <llKly ' 

rho biodi<.<eJ Ina»'!r; I. po"~<1 '0 e""tlnu. thl ' momontum In 1012 .., Ions ~' (ons, .... J><I tIl. 

Admini", .. ion ,0nUnu •• upportin~ '<10nl ""Ik:i., "u<ll '; ,ko bkMlie<t< 'n in< ~o""" 10' "'mulatln. 

"'.' 0, do."...,K: '""' ~ prOduCtIOn. 

Ho",""o •• t~ e "au,,'V'. ,ocon' 'U<C~ ... hoUId not toe .. ,,~ fo, 8'~~'@<! . I na ~ "'<~n' .'D~a"on of ,h. S 1 per Vllon biodl .... 1 " "n<on,i,," 1'<"" •• ignifk;oM th,~ .. '0 ,II<- itI<lu,,'V'. <o"IOn"od grow'h_ U.5_ 

blodi.,eI ,.mlln • • VOUnl >nd IlUln ••• blt!: 10aU""I_ I~ hIe'. "'e ;"'ow Ittl"' fe<.n' ~" or; whl' eoula 

~'PD n ", jt~""' th. blodi~, .., ' ox n,~"'iw I J><I . <lro", ~enew.b le fu.1 Stonaa.d (RF5)_ W~~n 'he 'a" 

Ineen''''. I.p,.a In 2010,'h.e •• ,ull "'~, p'~dkt.bl .: PI.nt. cio.ed .na ,Ioou.,nd. of 00001. ;1('0'" tn • 

• ounvy Ion wo.~, Spedlle.I ..... U.S. blodl ••• , fodu"lon plumm.'@<!by41 o."ont. ,e.u~lnsln Ih.e 10" 

of nN',,! 3.900 job •• no , d'Oilln o.e~ol<l Income 01 $485 ml"ion. 

Onl~ In 1011 •• ft ~, (onl( ~" 'e;n.mO<l ~e .. ~ I"""nt,w ond 'h.e RFS WI' IU lty mp"'m~nteo. did th. 

100 ... '''1' flio/n 1\, lootfni Ino toe,ln '""'P;"I op prody,,,o" .saln, With .ocotd·b"oUI\8 . u« .... 

With !~. orogoing econ.omK: downturn, no ... ~ no' t~o tfmo to . 1., ... another IMutt'" 'lump. Unll.f 

proJectod ",pon,lon Ir¥ lOIS, biocliMel ;, h~ ed 10 ,uopon mo,. t hon 74.00c job'. $4 Di~" In 

eom~, Ind <Om. 57.1 billion in GOP. ",<o, ding to the .eonoml<: .tudy. 

lhlt Vo ... ," ... ~I to.: ..... "'Iy jeOp. ,di,@<! II Con~,." -. no, .~I,,""d ,he blodl ... ~ ~. "',"n""., whkh 

"'" I ppli<-5 '0 bio-~' ."d ,.,.., .... blt!: d",el production. 

..... ' 

~ 
798 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.740

Ch~irman Tiberi 'nd Ril!lklnl Member Neal, I "pp,ec'Jte the opportunity to . ubmlt writteo te5111'1\0nv on 

b~half of Ih~ Natronal 8iod,<,,,,1 1I0~rd (N8111 '~13rd ng Ih ~ ecoMmlc ,mparl of Ih~ b'odie ... 1 u. 

Incentive. 

As produte" or Ame rka', only comme clal-!Ci~ Ad. anced Siofuel Ihal's sold and p,oduced 

nalienwld., Ih~ U.S. biodle.el induOiry looks forward to worklog conOlrucdvely with thi. comminee 10 

ensu re that our na tion'. Ad~anced Rlofuel l031s are mel. 

NBS appliuds vour effan. lo rev,ew expi,lnglax prav,,'ons 10 delerm,ne how Ih .. ,e pravl,iom mea,ure 

"83""1 key ,"elnt •• uch u COOl, effe ctiven ... ~, and lob creallon. History ~' .hown thl ' we/I-" . fled and 

efficient I~x incen!lves un be powerful policv m«hanisms to achieve Ihe nation's energy objectives and 

levcrage private ~Clor Ir\Veilment to rpmot e Ihe IIeploymenl and utlll!ation 01 new energy resources. 

Thi. !o cerlainlv the case wilh 1M I3x credil for biodi ...... I, renew~ble die .... 1 ~nd bin-jH fuel. A~ with 

e~ery othe r major U.S energy resource, ff eclive t.x policy hi. lP<'d cre l~ dome.tlt m.nuf.cturin! 

jobs.s well a< $18nifi<a~t economic and n~r8V policy beMfil>. 

Bel"..e t~e bloOle...,1 tn Incentive e.plr ed on December 11, r~e U.s. bloOleoel (,ldu$l'V had . reC<l,d yu . 

0( produ<:tiDn in 2011, produdng nearlv 1.1 bi llion gallon< .nd cre~ ng good-paying Jab. in ne rlv every 

".te in Ihe country, T~if $U(Cen i,ln p. rt auributed 10 the flrong lede",' por.(,e. In pl.ce encouraging 

domes'IC e ne'llY production. While we undern. "d Ihe prenure s fadng Consress, we believe economic 

condlt'on~ ~'e .imply IOQ wuk loday to pull ~uppon from .. sroWin£ erl(~n indu~ ry that i~ a r.", 

brillht spot in Ihls wuullnll «anOrIW. 

The ",cenl e>CplraUon of Ihe Sl pe. gallon bloOle",1 tao In(~"ll\le po,,,, a ,Ig"rficanl tll",at 10 th~ 

industry'. continued growth, economic imp.cl .nd lob ""a !Jon. Now. as much as eVEr. Ihe biodie.el 

Industry need~ stabilily and ~upPOrt to continue 110 r~n,ar_ ble ,ucce .. ' lOry, "nd we encou r.se 

Congress to pr!»lide a rrUNCli.e e.tens;on of Ihe blodiesel. renewab le diesel. and bOo ·jel t •• credit. 

Quickl~ reins atln~ lI>e ex,," ~d blodiesel la. In nl''''' .... ld pro.lde needed ce rtaInly am:! pralect 

aglio!l rutuyf disruptions and thf loss of t~oulaods of ",ueh·needed job~ . 

Sockground ond Ind"<lry Ora",lew, BloOi",ell •• renewable. low_carbon di_1 replacemenl fue l. The 

[ PA has d~termined, ba ... d Of! th e perfo""ance requiremem, esta bllslled by Ihe fner9~ Independ~nc .. 

onds..<"rj ~AClIEISA) IP.l. \ lCl-140), Ih.t dome 'l>cailv produced biodie,~1 i. an Advanced Biol .. el under 

Ihe B~S2 proeram. In fact. il is the onlv commertlal-K1le r"el sold and p.oduced across the United 

Stile. to .chi~.e th i. deslanallon. 

lliodi tS ~1 if mad e from wa<te 8,ea '<'5 such a' recl'dtd cooking oil, an;",.1 falS and >!!<ondary-usc 

agricultural oils, and is refined 10 meel:t spe,lfic commercial fuel definition and specification. The lu el 

meeB 1M DIi7S1 fuel 'peclficollcn ... 1 fortn by ASTM International, the offle].1 U.S. ful!l..:ertification 

organ/zalion. IIlodie,el i. one of Ihe most- and best-te"ed alternalive luels in Ihe <o~nl ~ and the only 

. ltem.llve fuel to meet .11 of til e te,til\i reQuirements of Ihe 1990 ~mcndmc , 10 the Clean Air Act. 

There ilre appro.imatef! 195 domes'" . nd fOrfign biodie,el pl~nl$ 'caislered with Ih c EPA, 

representing. combined ~roduC ion e31>'1<11'/ In e~cess 01 3 billion gallons. 

Siodle!.ell' p,lmarny ma,~e ed as a five pe,cenIIB~J bleoding component with ccn~ ntlon.1 diesel fuel. 

bUI can be u .... d !n concentration< up 10 twenty percent IB20)_ II is; di<lributed utili,lnll th ~ e',>linl fUfl 
799 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.741

dlWibll\lon Inf'n\".lttllre Wl ~ blending octllrrins both ~t IU<l1 "m;n.l~ ~nd "below t~ e ,~ck " by fuel 

jObbe.s. 

SIOW< and Backg,ound"., 'h ~ ;r>di~ •• 1 a~ Inc~n i~.: Th. biodie. el ta"n~ent,v e w.~ ~nac ed in 2004 

"' parI of Ille Ame,lcBn lob< (,e.tlon Act (P.L lOS_3S1) and tool< ellea In l OOS. TI1e incentive w., 

,,,b,eqllentl.., e~tend"" th'oush December 31, l OOll .• , P. rt 01 Ihe EnefllV Policv Act of 2005 (P.l. 109-

19O). H.R. 1424, Ihe Emergenq Economic 51i1biliZilion Att of 2008 (P.L 110·343). allaln eXlended the 

Incenllve for one year through DK m~r 11. 2009, al whkh time the c,edit e.plred. Afte, ~in8 

expired lo-r all of 2010. (Ong,.5. U lended tile tax credltthroulll1 Decembe r 31, 2011 (P.L. 111-312). 

11 e.por<'<! g"in on O&embe' 11. 1011, and is currently ~p",d. 

While tile impact 01 this year's expiration are ivst be8iMin8 10 be seen. Ihe 1010 e. plratlon ollhe In 

tredil had a .""e'cl~ deurmenl~J Im pact 'In Ihe do ~5\k blodie,el lodll5\ry. In f.ct. lhe In du'Ir(~ 

d~(hne r~Wlted ,n Ih" los, of n"arlV 8.900 jobS and. drop In hov~hold In,om~ 01 $48S mnlion. 

The blodlesel tal! intent"'" is desiened to el1<ou'38t t~ e p,r>duction ~nd use of biodi~1 by makine Ih~ 

luel p,fce-tompetltfve wnll conventional diesel fu~L !n gene,al, current law allow, ta pavers to dalm 

III .. blodfesel la. Incen"""., either a $1.00 per Sa llon seneral bu,ln .. " incom" lax credit 0' IS a SI.OO 

per gallon blenders ~.ci~ ta. c,~dit. To qualify 10' III~ biodie.el u . Inceol"", th~ luel mu.1 by .Iatute 

m~e' both Ihe IISTM 06751 fuel .specmc.l\lon and the envlroomental P'Otectlon ~en'v" (EPIII 

regl <!r~tion requ;r"ments unde' Sect ion 211of the Clean Air Act. 

The IMern31 Re...enlle (ode ","oytdes I geflelal business IMome UX cred1t to encollrage ~e production 

and use of blodiese l. renewable d iesel and bio-jel fuel, The credil il the lum of th,ee crediU - the 

blodlesel mlotu. ~ cr..oit; Ihe blodle~1 ",edit; and the !>mdll agrl.blodi"",' produce. "edit. The blodle,el 

millu' e (fedil P'OVlde. a $1.00 per lIa llon credil for cach gallon of biodle>,,1 th at (. blended wilh 

t""""nlklnAI d ... ..,1 ful!"!. Tile hiedl ... ,,1 credit provide. $1.00 P'" gaHon fo' uth Sallon 01 pu", 11100 

biodle.e l Ihal i, used ~s ~ fuel. T~ e smilll agri-biodle,el producer [fcd!! I> ~ 10 cenlf pe' gallon credil for 

ptants with a production capoclly oll~ .. th.n 50 million 1I01i0n. per yea,. Th" credit can ~ cI.lmed on 

tile n" t 15 mIllion gallons 01 pj'lXluctfon. 

Siodi".,,! Public Policy B""e/II" The blodie~lla. lnc"l1t;"" ha . h~lp"d ach( ..... " the worthwhlJ~ poliCV 

go. 1 of creating job. wh1le inu " •• ing the p,oduction and u,e of b,odle.l!"!ln Ihe U.S. In 2004, when tne 

'ncenti.e w., ini i~lIy "no<l..o, the U.S. p.od~c"d 25 million sallon •. In 1011. with th l.~ c'edit 

reln.taled Ind wilh a strong ~F5 program, the Indv,11"'I produced ne .. rv 1.1 billion lallon •. n ere Ite 

compellinll public policy benelits associated "':th Ihe enhanced prod~C1 lon and u,e of biodiesclln the 

U.S. 

III0dles,,! Redu«. our ~p"" en« On Fo",lgn 01/; 8iodl,,~1 can plav a maiO' role In ".panding 

<Iome 'llc ,ellnlng capacity aod red~crnll ou, . "liance on fore!!" oil. The 1.6 billJoo galio". of blodlesel 

produced In Ihe U.S. since 2005 have d i,placed an " q"ivalent amounl of die~1 fuel wllh it dean-bumlnR. 

efficienl fuel that the EPA .. "imale> redvee. lilecvcle g,,,enholl'" Ka. emi.sion. by iI. much as 86 

~e'Cen\ compa,ed to pet.ol .. um die..,1 fuel and creates 5.5 ili of ene,gy fo, every ~nj t of energy th at 

I. reoulred 10 ~rodu<" Ihe fuel. 

Siodl".tl Is Good fo' Ihe fM"lronmtM: 810dlesel Is an envlronmentall.,. safe fuel, and Is the most viable 

tr.nspottation lu.1 wh..., mu.u,ln8 In Llllp l~ "ml$sion<, IIfecvde ca,bon emis<lon, and ~"~'gy 
800 

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!Mlanc._ Si"c@ 2005. bi<>diesel ~A< t~du<,d il~l"'~ I ,,,.,,hoo<l> ,a$ .,ml'''''n. by 48_1 billiM p<lund •• 

Ih, l!<Iui\l~lenl of ,.m<w'''g 4.25 mlilion pane"ger vehkl .. from Ame l<a'~ ,o.dwa".. 

Biod~,e/ Red""e, Dle .. / £m/"Io"" T.llpipe emillionl lrom tr.dlllo".1 die~1 - plm.,11v from Irotki"i 

lI ~1>, school bu"". and olMer vehicle. - "re a .Ignificanl hulth and air qoalit'! COl>Ccrn , In an Update la 

I" Nalional-Sca le Ai, To.1e< ....... """'nt ~a r"'r Ihl. ye.r, EPA ciled dl~ ""I>au'l a, OM 01 Ike naU",,', 

mon dangerou, oali"' .. nlS, "vin! il i, "among tile oubot.""e. Ih.1 mav 1>11"" lho> grealen rl.k 10 Ihe 

U.S, populillion." Tho"'>'Ind. ol1tuc~. and bu.es hil the road everv day bumina traditional di ... el fuel, 

$ul3>lllUllnl higher '!T1ount5 of biedie.eJ lor I,.dilional die",,1 III<!I i5 t~ e o~p e>\, most elleui"" w;oy la 

imm"dIMel. "",prove ~m[§.ion •. 

Tlte Blodksel '"dunty /!I C"'Qfl"~ lOll. Qnd MQking Q Po,ltllle Contribufion Ip tlte £conomr: NB8 

.,,,I!T1ale. Ih31 Ihe u.s. biedle.el Indu'lrv wpponed mor" than 39,000 jobs In 20U, 1n oll .<eclon ollhe 

econ"",v, and added more Ihan Sl.8 billion 10 the n>lion', Gras. (}(>me.tic Product (GOP)_ 

8,OOi".el i. Am",,,. '. linl d. ~n",d blolU<!1 "nd wl-om comp.'ed 10 K.",'i e, die.!1 and eth ~nol, II io .1 

o fundamenl311V ditlerent 'Io,e of devela~m"'" and .hould be treated ••• new fuel In Ihe m.rkelp l" e , 

The pel'oleum Indu.try h.s re-re~ • number of tall IMellliv ... 'for many v~a <: and tho!. 'h a~ol 

mduSI<'1 ~s bo .. n around for deeJd/! •• nd h.,d 11\ 'a ~ (""entille sinu 1980. In <antra", the biodiesel 

indusltV h •• /I.d commercjal~<cale producl)"" for on". bo~l ... \'f'.r<, .nd h .. '3d II' la1 c",dll on l • 

• inc ~ 2005. The 1I".ollne ma,kotpl.ce Is .ppr<»;imatelv 140 billion K3110n s, the die..,1 pool Is 

appro~l!T1at"l. 60 billion ,.Iton, and Il>e elhan~ m.,kelplace I. prOOucln8 some 14 billion ga llons. 8y 

comp.,is.on, biadie . .. 1 production rucked a retord U bi llion gillon< l.sI vear. BOodie",1 Is an up-andromTnK Ifldustf)' .nd i, In. I. r more Ir.slie " a8e of deveiopment. 

COQc/UJ/an, TIK! biodlesell •• Incenll\1e /lal he lped ,K/lle\l1! tile desired go.1 01 Incru.1nl the dom~nl' 

production and u'" of biodie,." and In lurn ., l>elped Ihe U.S. rea Ii," Ihe ene'8Y ",cu,IIV, """Mmi, 

, nd . ""ironment;!.1 ben~lilS ass.o<>illed wi. h dl. pla<lnK P'!tro le u!T1 with domtnic~lIv p,<>d.uced 

renewab'" fuel •. Th"'" be""fil<, /lowev"" will be Jeopardized If Congre" do .. nOi act in a lImefy 

m.nner to ddre .. I~e immediate Io.ue I,dng .h. indu<1tv and e>lend Ih. b,odie.e l la. incentive. 

About N88: NBB t. Ihe Mllonal 1tad~ •• <O<i.tl<m repr~sentlng tr.e biode",,1 l<I<IoSl", >I th ~ 

coo.dinaling body fo, re""a"h a nd developmenl in the U,S, 11 w •• founded in 1992, and oina! 1hll 

Ume, NBB hn developed into. con'prehensive jndu.,rv ~ •• ""jOli"" Whlth coord inat ... and inleract. 

with i brG;ld ,. nle of tOOPt'''UOI' i"dudina !"duSt"', lovernmen! and academi •. NBe', member'hlp is 

made p of blodle",,1 producer<, st.le, naliona' ond inle rnalional leednock organ ,alion, and feedllocJ( 

p,oce ,,,,, orlanl,atlon.: 1 .... 1 ma,kele .. and diSitibulo .. : and le<hnolO£v provider<. 

(ha"m.n Tiberi .nd ~.nkin8 Member Neal, I "ialn app,Kiate h.vinS Ihe apporlunily 1a Wb!T1it w,ine n 

le!llmOt>V On Ihi, i$.loU<! of 'ignlficanl ImpOnMce 10 the U.S. blodle,el moo"",_ We!oolc lorw.,-d 10 

""JVing ., a resource lar tile ("",minee "" ~ .. ue. relaled 10 bialuel. I .. pel <v •• th e comminee 

proceed" 

' y,dno (lOll". JunO 8, 2011, (tonom<c Imp ... ~."", ... ", ~e e'''''''>eI T., end,1 !or 2DlO "nd Im",omont.tlo" 

01 RfSl Target< Th ,out h lOIS. 

'olliS I.,,,,,,,",) 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.744

STATeMENT FOR THE RECORD 

I\lr. J.D. Alc)t.O.nd~r 

I'residenl, Nali(>l1al C3ulem~n's B~d A~roci31i(>n 

I~O USE COMMITTEE ON WAYS AND MEANS 

SUBCOMMrlTEEON SELECT RBVI:."NUE MEASURJ!. .. 'i 

·'1 lEA RING ON (ERT AIN EXPIRING TAX PROVISIONS" 

APRIL lb. 2012 

T(> Chaimlun Pat Tibo."i, Ranking M~mbo." Richard E. N<'al. and disli nguishl:d m~",bcrs 

oflhc House (ommiu<.'C on Ways and Means. Suocomm;lllXoll Select I{C\"CI1UC Measu ..... s. 011 

behalf ofthc National Cmtlel11cu's B~er Associmiol1 (NCBA) I olfer this stmemerlt for the record 

for thc Ami 26, 2012, hearing "" cCr1-,in <"xpiri,,!: tax provisions. 

NO)A I"IS rcpresentct! America·s catllemen and ,,·on'en since 189ij. I""servinJ!.d,c 

I'eritag~ and strength nfthe bed industry through L"t.iuca!ion and puhlic policy. As the largest and 

oldesl nalioll31 a~OI'ia tion of catlle produ.:ers, NCBA repre-senlS a very dive",,"" b«findustr)" Ihat 

$Iri\"cs (0 meet dC'lland in emerging mar\:clS and ,"':n:ase demand for beer. NCBA appn:ciatcs 

lI,e opponunity k! provide )·ou ,,·;th lnsigln on hn" cenain expiring and npired lax P'O\ isiuns 

imp3(:t lhe bo. ..,r ;ndlJ1;ll)·. 

nefo ...... we di~cuss lh~ iudi, idual pro~isions impacI;ng lhe bcefindlllilry. il is imponD'" to 

",cogni~e th" importance of hHvinl; c.-naint)' in Ih~ lax cOlk Call1~'''CIl deal wilh daily stress of 

u"cenaimy in wat"r 5Upp!y .. fc-cd availabilily. fon."""'ling of price~ .. labor upp!y, Ihe hcalth and 

wclfafl.' ofth~iT animals, noilO rocnlion aU oftbe other non"al ;;tr.:$:;Q11>' th.11 ~Qmc wilh opr:J"illing 

II family busim'ss. Thes<: an: factu!1l ~yond uur conlrol, and we do not ask uor wam go\'Cmmcm 

a5$istance ii, addtTssing Ihem. Ilm,· .. ,·"r, one area the go\"emn,cm can help i~ f>!'),·idinl: ~...,nHinty 

in Ihe tax c<Jdc. This is o ne faClor of our opr:n!(ion that we should be able 10 dcpend on "'lh 

so,ne ccna;m~~to be ahle u) fom",!"tc 3 b'rsill<."SS phn to brace fo-r chang,"") in factors beyond 

our control, but thal's simply not Ihc ca:;e in ",cenl years. The lack (If "",nainl), itt 11,1' tax code is 

hindering our econo",ic gro"lh and is dctri"," 'tal "J our ability 10 reach our full polemial. A~ 

cal\I~"'cn cros~ the U" ilct! SIn"""S can allest, il is difficult 10 """S1ablish 3 ",,,'ti.ycar bU$inC5S plan. 

cr~1l an ~llIt~ plan to kup your "pernlion in bu,i,..".s unce yon pass ",,·ay and make l(lnil km, 

improvements and expansions in your op"rntion. wh"n you havc no clue whalllle lax cOlk "ill 

h",k likcse, er~1 mumhs frum no". I'urlhcnnure, "hy would a linanciHI in~titulion risk inlcslin!!. 

mo", capiL:lI in an 31ready risky ~nkrprise whe" the", are lOO nmny unlmo"n f:!Ctors in II 

business plan? 

Whill.' ,,·c dclinit~ly n~ed cenainl)" in Ihe 1:tx coo\.'. the realilY ofllle situation is Ih1l1 We 

may not hal"\.' any c~rlainly oftl,e lax code unlillhc last few ,,~~ks oflhis ye~r. II.q:lIrdles~ of 

"hen action occurs. we wanl lu highlighl cxpirini!; and c~pircd tax p .... visions lhnt arc imponanl 

pans of Our bu;;iness operaliun;;. 

Onc of the most impunant i~s\l""3 fa.:ing beef· producing r3millc~ i;; Ihe future uf lltc CStntc 

\a~ . more ~omn)only rcf~rred tn a:s Ihe death InX. The droll! laX is one of the lead Ill!!, ca)lse~ oflhc 

br.:akup "fmulti'generalion family limns and rJnchcs. If("ungrcSJ; filils to aCI P} Ihe ~nd of this 

)"<'1Ir. Ih~ estate lax "ill reven to II sl3~erin.g 1 "dillon exemplion. In~cd at a 55 percCn1 mtc. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.745

Incre ... "in)! prudutlion ('OSlS, rio ing prtlpi:ny "allieS and an uncertain Ia.~ to<lc ",a~" il 

ditT,culllo fom> a bulil1~'S~ plan, nJuth less pia" for lhe fulure of your !'Stale. We,'unnOI 800M 

for lhe ntale I~X 10 tOl1liuoo ~inl! a politic-al foolbllilihal is punl<"tl year after }"'Ur. We neL-d 

JlCm>UllCnty in Ihe lax code. 

NCBA was pl~a5(.-d Ihallempo-r:lry eSliIte I~X relief for 1"'0 years was provided in Ihe 

20101a\ I"lckage. The eUlTCnl eSlate \:,,.. c.~cmplion applies to est:oles up 10 $5 million a rerwn 

($10 million pt..,. touple) and Ia.xed ~I 3_ rdlC of35 percent The 1"'0 YC"Jr eSlalC lax p:tCkag .. also 

",inslalcs stepped-up basis, indexes Ih,: eS\.1le la,.. exemption fcor inflmion and conlains a spousal 

Il"dllSfcr of allY unused t'SU1le tax exemplion amounl. Wit !tout qUL'StiOl1. "'~ suppon a full and 

Cl)mplCIC repeal orlbe est11" Ia.X, or al Ihe very leasl, a long term e.~lension ofcurn:nl eslale lax 

",lid or I'I:lid' for ~1a1,'5 engaged in produclion agricuhure. We cannm 30'00.1 for Ihe eSlale ta~ 

10 n:\'cn 10 Ihc rr .. -200.1 Ic~els_ 

As P"J19flhe 2010 18 ~ pacI<31;': Ih~ c~rilall!~;l1S !a~ ,..~tc was SCI at 15 I"'rcCn1 for two 

)cars, e~piring alth" end of2012. As I:alt\clllcn an: primarily asscl-rieh and cn~h.poor, the 

capilnll!ains tax is an important 1001 for our bosineSl! and eslDle plans. M:rny fanm . ..-s and 

r:tnchers a", dcpend~m on Iheir land 1<> fund thdr "'tireme'" and Ihe accullou!nlro eS!.lIe is 

signincanlly reduc"d by income ta",,, upon liquid"I;"n. NCBA suppo ns changes 10 the ta~ l'Ode 

Ihal allow 8~cuhur:t1 opernlOrs a one··lillle Lax f",~ capital gains rullo,,~r frum 1m, sale of 

Hgricul1urdlland andlor rights into an Individual Relirement A""ounl (IRA J. ~'Ogh PI 3n, or 

similar relirement accou!llio be mu-d at lime ofwithdMlwaJ, or allow a one-I;"''' cxemption fro'" 

tal' QI) the sale of cel1ain agriclllturallOind aDlifor rights, NCBA also ~uppor\:; i1\C",~og th~ 

:tInOtlnl cligibk 10 be e>:.pl:llscd and ill<:1'I:3sing the 3nnu;!ll imilalion amounl on capilal porchllSCs. 

!,inall}', NCAA suppo ~ Ihe prcnlise Ihal Sllk'S OfCOIlSC .... alioo easemeots and c<)fl$Crvalio" 

easemen! credits be c<lItsidel'\!d capital !?Jins $.1iL'5 for la .... pUI"pOSCS. IncorporalinG IhC"Se refonus 

10 Ihe c~pilal gains 13)( would grcatJy improve our busi"'_"SS opcrJliQIlS. 

Another major pan oftm, ~010 lax package W"':l" two-year patch "f tll~ AI1c-rnalive 

~lillilllulII Tax (AM"!')_ Th~ AM'!' has lresuhed in an increased income \"" bun:l~1I 011 farmcrs, 

rnn~ller.; and owner.; "rOlher closely held busi"".s.,. who have 10Il l~ml ~"pil"ll>"ins Ofllhe 

sale ofland~ and OIh~r business a5sc IS. For the"" reasons, NeBA 5UpPOns !he abolilion of the 

Altem"li,·;; Mi nimum Tax. Il o,,-~ ,cr, if lhe AMT rem";n~ as pan of the I.x code, then Cong,c.! 

must address Ihe neg:"lli"e impacI of income aWMlginl.llri!.!i;ercd by Ih~ AMT. The purpose of 

incomc a,-elllgintl " -dS 10 cVen OIl! lhe df~"l ,'fhig h and low ~~ars-or"gricult ure incomc. 

Unfonunmdy Ihere have been inslanc",. when: ils use h"" triggered Ihe AMT. If!m, AMT 

rcmain~ pan Of lh., la.' ctxIc, NC8A s'"p(Xlns Changing Ih,' AMT wh~",!he "'" orin~o,"c 

a"er:t~n~ does nollriu.cr 1m, )'MT. 

Consc rvatilln casements arc a val"able 10()1 fur cSt.aI" planning and allow \:ox be""f,1S tu 

theool1C>roflhe easement. ClIlTCnlly the tax code docs MI a llo'" lAS benefils OVer a I(>nl! eMtigh 

period 10 ~lIow the "\~-mge 1;1nncrr or ranchcr 10 us<: thc benefit. NC8A ,lIp(XlrlS legi ~la li on ", 

give t11<: dOI1<11 Or3 eonr.crv'lion Ca!'CllICnl sub~lanliall y more lime In use the lax d,-dllcl;nn lhan 

the current 6 yeal'"9 and to give agri~ullLlrnl produccrs- 3 larger per~cntal!c incumc lUX deduclion 

111."11 currently ail,,"cd (30 percent) by lhc I"x code. NCBA was pleased 10 S« lhe inclusion of 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.746

the cons~rvatiQn ~asemcm a~ credit iodud.-J in the 20 10 taX pad:a~~. This credit was 'llade 

retroactive to January 1. 2010. lind un fonun,tely 1::<pired at l!le eoo of 2011. The laX cn.odit ,..~i;;ffl 

lh .. inc"",~ tas dcdllCtion a landow[l<'r Ctln take for d,)I1Jl;ns' cQnservation e~s~mCnl !i-t)m 30 

pt."fCt'nl oflh<'ir income in ~ny year to :iO rcrccnt. 11 allow~d r~nner.; and ntnch~rs (0 d~duct up 10 

100 1!Cn."Cnt of(hcir income, and inc~ased the numhcr ofYl':tr.; O\"Cr "hid,:t dOr>()r ~an tukc 

d~-dl>Ctions from 6 10 16 years. NC"BA supports pcnnancnl extcnsi.," orthis cn.'dil made 

retroaclive for all of2011. 

I would be remiss if I did nOI highligh1 on~ Oflhc gre:tll"S1 hindrances f3cinglhc beef 

ioou~lIy tooay--lht'lasli"g cfleels of ~ough!. "ildlires Md nOQds. The U.S. bcefinduslry has 

witnessed a tn~ncndou~ dt-cre"So) in our nalional herd due \0 circumstances far beyond nur 

control. In SOllie C~~, complete Ij\"C5IOC~ opcnl1ions Wen"" liquida1~-d Of forced IU Il'locatc to 

csca(ll' ;,np.:ndinll disaSler. w~ arc no ~1"'Jnl!Cr10 bad weather. but lhe IIIX c(xk make.s il difficult 

for live~tocl; op.:rntions 10 j,\N b.,~k on Ihcir f~""1 in a Shor1 lim" frumc. Natu",1 dis.1slers can 

destroy liveslock. pmduel;ve gr"M;nll I.ands and rnneh faeilitj~, illcludi,\j,\ l\:lleC/>. UnfonulIJldy, 

currenl lmcnlal Revco",' Service lIltS f rules do nQI allow fcnee replacement ~o.t;; to b<: fully 

C.~""'"Sl'd and dedueled in the )ear of replace"",,!\!. eXl"t'pI on a I"CSlriCled basis. This lim italian 

places lU' unnt....,.,,,,,,,ry and undue bunk!, on rnnchcrs ,,110 ha"" been devaSlated b~ n"lurnl 

dis.U!ers aod who necd 10;> ",buijd ~nd ,:eslQl:k Ihe;r r:mchin],! Op"ralions. NCIM suppons r .. -dern! 

I"],!islalion Ihm ""old a!jow the costs " f rcpbcing fences Iha1 h;we been destroyed by naturnl 

disaslers 10 be fuHy lax dcduttiblc in Ihe year such COSiS an: incur",d. 

Mr. Chainllan and Ranki ng M"", her. we appreciate this opponunity 10 ~ha,..., wilh ou 

o~r cunccms and priorilie~ n:gardin.g the tlU ",,,Ie. The b<.:erindllSlry" is no! a.ki ng for 

l!0\cmmcm handouts, bUI We do ask lhul )"OU eareft,lIy eunsider uUf cuncerns and requcSIS!O 

pl"Qvide j,\rc~t"r ceMaimy and eflieienc:, in the lax c<,)de so that Ih<.· curren! j,\CTlernt;on of 

tank"'e" and womCII. and fUlUl"C-l!CnCtal;ons of ~~ule",c" and women of America can eontjnw 

f~...,ding lhe world. 

Sincerely, 

J.O. Aje;,ander 

Pre~idenl. Nalio"" i Caulcmcn's Ht...,f }\""ocialio'l 
804 

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KENT BACUS 

ASSOCIATE D IRECTOR, LEGISLATIVE AFFAIRS 

NATIONAL CATTLEMEN'S BEEF ASSOCIATION 

1301 PENNSYLVANIA AVE NW SUITE 300 

WASHINGTON DC 20004-1 70 1 

(202) 347-0228 (OFFICE) 

KBACUS@BEEF.ORG 

www.bee£usa.org 

BEEF National CaHlemen's 

Beef association 

USA 
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NATIONAL OfVnOPMENT COUNCil 0!!tI 

!)talemenl fur 11 0'1$" WaY$ antll\1tl1 .~ Seleci Rl'I'cnll " MU511 rts !)"bcum lll~ <' 

1I~~rin g on C .. rl in F. pir;n g II~ I'r,wi ;on s. Allril26, 2012 

Namel Or ani~ali n 

Rob<.'T1 W. [)~I'enpon, I'resident 

National DO:l'e10111111:111 COlllleil 

70l:i Third Avo:nue, S~it(' 71 () 

New York, New York 10017 

111-682-1106 

rUav~nJ1On l€nalion:lldevelnfll1\elll~"\ln~i I,II/'g 

Tlwnk )'011, Mr. Chaimlan for providing us \\Ilh lhe OppllrUlnlly 10 leslir), nn Ih~s,' 

importanlmatkTS. 

The National Dneluplllenl Coun,,;1 (NOCI is one IIftlw nation'S uldcsl nun-pr<I.,1 

commllnity d('velopment organizations (ol)):anil~..:I in 1969) with lite mission to creal<' 

ecol1omic opportunilY lOr disndvllnlaged Amcricllns, to cre~tejobs lor lhe unemployed, 

and 10 provide quali!y afTordable housing to undeTSl'rvcd urban and rurnl 3r.:as aeross d,e 

countT)'. 

TO ea~' OUI our mission, NDC has l:K'<:omo: one oflh ... n3110n' s must active participants in 

Ihe NMTC progl':lm, To dJlc. "e hul'c dcploy~d more Ih(1I1 $560 million ofNMTC "hich 

io turn havc leveraged over $ 1.2 billion in 70 NMTC projC\:IS spread O\'er 27 stales across 

lhe nation. 

Purl!0s" la' o: ment 

~ are ",nting 10 suppor1lhc 

C:o>lcn.sion orlhe New Markets Too< Credit, "hich c~p; ed on December J I, 

2011, and 

The passug~ .. r 11R 2655, lhe Ne", Markels Ta..: Cr.:dil P.~tcnsi .. n Act (,f 

20 11. 

708 Third A .. ~nu~ -S"lt~ 710 N~w Yorlt, NewY"rk 10017 Tel~phon." (2U) 682_UQ6 

~.~ti"Jla·Mv~I".pm~!lIC"un9!.'!!I 
806 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.749

IIlTIONAl [)~VElOPMENT C[)UNC)l ~ 

t\!-' ri~ fd~ NMTC 

The NMTC prugraol "US cllacted tbrougb a bi·partis.ao COI!;l00ralion uf Republicans and 

OL'moeNts iUlhe laic 1990s. EnlICte<l under Pmident Climon and implcmeulcd und~r 

Presi<lent Bush, Ihl.' NMTC prog.rmn has prov.:n 10 be 0111.' uf Ihe most vital, eost effective, 

ncxiblc. <lnd milienttools forstim l~tilig io\,csunent in und,'rscrl'ed communitiL'S across 

America. Siguificantly, NMTCs !!cnerote 19 ~ revenucs thul arc reducing Ihe fedL'rol 

dcficit 

NMTC arc \'iI1l1 : 

NMTCs cr~~lc j,)hs, li!C\l1Iomic Ilpportunily. colreprenL'urship. :md C0Il1111uni!)' pride and 

eSk<.'m in Am~riCa's pOOrC"St comll1u it ~. 73% of NMTC inv(;slmenlS OCcur in 

desi!!,llalCd areas of ~Xlrcme \.'Conomic dislrtSs. 

For example. in Spartanburg SC, Olr S13 milliou NI\'(TC in\"esUflcm crealcd a communil}' 

shoppillgcemcr for Ihe scvCTCly dislf\.'Ssed Southsidc Comnlunil}, thaI indudes a groc~'f)' 

stun.: (Ihc firsl in many ycars). a mir,orily owncd phammcy, "11 lIpparelstOfC, a credit 

union, aod sel'erniaddilionalll"omen and minQrity owned and sdf-~USlaining businesse$. 

The proje<'l crcm~d 35 p~nllancll1jobs and 15 cOIL~lroclionjobs. 

NMTC errale i"bs: 

During lIS sllon (enure. NMTCs h:II"I." en:mcd or retained more Ihon 300.000 jobs "cross 

America. pril'alc scclOrjobs in areas (hat hiSlorically have Il"rsisiI.""lllly high ul1el1\ploym~nI 

and flOl'en), Tales. 

For eXOInlpic, our 510.6 million NMfC investm~m in ruml St. Johnshul)' YT hclfX"d 

fi nunc~ a nlOnufaclUring lad IiI)! for Weidmann Eleclr;cal Technology, Inc, .. u manufac{\lrer 

of ciccI rica I insulation for trnnsfonncrs Ihal creoted and retained morc Iban 270 qUlllilY 

manuracluringjobs inlhis low income TUT3f area. 

MTC IIfC !!! pclili !ll! co!':.! crTcclju;: 

While i( nOffil"Uy tokes a S92,O()() in, eS(llIenl (0 c~ale II oe\\' job, because NMTCs arc a 

sh~lIow suhsidy, it CO!IlS taxpayers ~nly S 11,000 in ron.'gone UlX T<'vetlut""S W crealI.' a new 

job using NMTCs. As a ,",-'Suh. NMTCs stimulate $8 of pril'ale seelor inl'e!O.lmen( for evt."l)' 

dolhlr of fed~rnll'~~ reWl1UC fo,-.,gon..,. 

108Thlrd Avenue - Suite 110 Now lori!, Now York 10017 Telukone: j2U) 682-1106 

_w.n.at..!f>naldev<,l°ltmenlcotlncil,o·1 
807 


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NATIONAl OEVnOPMENT COU!o!qL dl!b 

Bl"C'JUSe the number of projects elig'ibk for NMTCs exc~ds Ihe ~\ allabi ity ofNMTCs by 

a wide margin, only Ihl' be~t and mOSI compelitive proje<:ts allrw lh~ least aHioulllllf~ 

NMTC inv(:slmcnt n~cl'Ssary 10 cnublc Ihe project w go forward. 

N...l'\1T(;;..lIrf ibk and demonstratc effedi,·c I:0 \'cn!!!lcnl: 

Onc oflhc hallmarks of the NMTC progr.llll is its Ocxibility in mC'Cling lQ(;al nCl.'tIs by 

pennining almo,1 an)' Iype ofprojct:1 10 be financed. Some orlhe. projecls NDC h3;; 

fin8m.'ed include: 

A $10 milliOIl ill\'eSllllem ime, ,he Ed Roberts Campus. a social SCr\'icc faci.liD: nm 

by people wilh di,abililies for low iueom.: p~ople wilh dis~bilitie s in Ikrkc!£l·.Q. 

AS 12 million invcstm~nt inl" Omaha Siamlard. a truck llI;d n1.l!!lllfilclun:r in 

COu.!!fllJll .... li$,jA thai crc3h:d and relained 320 quality manufacluringjobs in Ihis 

dislreSSed commullil~'. 

A $7 million inl>CSlm<.'nt inlo Sll1.'etSqu3sh, an after school educatiun and youth 

enrichment progrum l'or 31-Ti,;\: youlh in j larJelT!JiY. 1)5% of its l'1Ir11l1l'<.'S go un tu 

college in u community wheTe less Ihan 50% nom1311y gmduntc froOl high school. 

A :Ii 10 million investmenl into Green Cily Grower.; Cooperalil'c in CJe vel3lld~OU !O 

ConStruCI a 5 atrc worker-o\\ ned h~dropnn!c [9Qd produ(:tiQ!!.~enhoJ§t" on Ib~ 

~ilc or d IDnn('T BrownfieltJ in a ~cn'UJ> 1I'3l.'k \I ilh a 5!::% powrly r:lle,:'" 

ufle'IJploYOIent ralC (hat is nine ti!ll~'S lhe n3!ional avemge, ;lod !lll.'di~n inCome level 

of22%ofAMJ. 

A S7.6 million investment imo Island Uospilll i io rurnl An;ICoTles..j\'A providin~ Ihe 

only ~<:u ec~re twilily within RO miks of this low income coullty. 

A $ 10.6 million investmenl i",lo the Abilene l.ife Sciences Aco::dCr:llor in Abikn<:~ 

TX 10 creak the !'d11Ier.l!1r 11ll,"unl}jhe!:!!VC"'y1!c Re>£a rch and bi(01cth ineub~tor 

space by financing Siale orlhe art cquipmen110 attract world claS$ rcsl·JTI.·h Jnd 

ereale 200 jobs. 

A $6. 1 1l1illion investmenl inM Artsp~ ... e Cily Center of5ah Lake Ci!to !r (!O 

pro\'id~ allordohlc Jiye/work ':!Il.ace ror Illw income urti~ls. 

108Thlrd "'ven ... ~ - SUite 110 ~"W Yor •• ~ew Yorl! 10011 T~k!phone: 1112) &82-1106 

www.n~!!.on ld ejopmenl~ndl.o[l 
808 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.751

NATIONAL OEYElOPM ENT COUNCIl Q!!tJ 

A $14 million inveslment into Court Squnre Center in Mcmphi!,.J:N. a communit~, 

~ne'Wl!n.l.h ct involvint the preiicrvotion:md convcnsion of t\\'o long-~h3nduntx! 

commercial StruCtun:s inlO 40,000 sq. fl. of LEED certified connnen:ial ~pacc and 

74 units ofhousing \Ihik crf.~dting 88 pcrm:ment and 908 construclionjobs ~nd 

slimulating m~jor invC'Stment in thc 3djoinin~ Ilcighoorllood. 

NMTC H I'( resilienl 

When the sharp dO\\Il1Urtl in the US economy occulTed in 200);. ncarl)' cv~l)' torm of 

,'onvcnliol1al linancing dricd up, c~pecially in low ;ncumc cummuniti,"S. Whil~ the capital 

mark~ts were 'I\'ooning. the NMTC program 110llr;;;h ... d. NMTt activity ICI'els increased 

l'ach year as the I'CCl'SSion SCI in. Wilhoullh,: NMTC pr~rnl11. billions of dollar.; of 

inl'l:Slmcnts in our lowcst income communili.-s would haw bccnlh",ancd. 

NMTC ~ an in lm en! thai rctlucu Ih\' rede ral deficit 

Tht CDFI Fund has documcnted lh~1 it costs la:qmyc'rs $17,QOO in fo~gonc la,.; reVelll1l'S 

tn e ...... dle OnC job using thc NMTC pro~. Thc Bureau of Labor StatiSlics documents 

ihailhl' avcmgc job in America pays W3gt"S of $42,000. This 31'CrJgl.' wage canter will pay 

$10,0-10 itnnuJlly itt federnl taxcs {income anu p.'1yroll ~cs), a 570/. return on investmcn!. 

In twenty tllonths, that ncwly cre~t~d j ob will t'C'p~y in full the ~ost of creating the job. 

After tltat, yCHf in ~tHl year ou\. Ihisjob eonlinucs to pay taxes which reuuee the fedcrnl 

budget delici!. 

l!!..fullmort of II.R. 2bSS 

NIX' enthusiastically ~uPI)Ons H.R. 2655 II'hose essential features include: 

A fivc year extension or [he c ... :d;t 

An inet'C'ase in funding nltlhorily [0 $5 bill10n itnnually 

A Ii.\ 10 the AMT (3ItC013Ii\'c minimum tax) 

NMTC is Onc of only two prognlms (public or pri~Jte) in Amcric~ thallitrgcls equity 

capital intI! the ~reas thaI most urgently need equity capitul. low income ~onHlHtni ies (the 

other prograt1t is the Low Incottle Iioltsiflg Tax Credil I'royatu, or Ll I ITCl. With Oil! 

cquit), p",dcnt community development simply ~-at1not oc;;ur, NMTC equity is invcsted 

by Ihl' private sector. in e.\ehitnge for thc Ia.~ crooit$. Pri~ate sector unuerwriting slaud~rds 

703Thlrd A .... nue -Suit .. 710 New Yo",. New York 101111 Tet ephone: (211) 682-1106 

~.tl<malde:.'!!!9p.!!lenlcouncit.o!g 
809 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.752

fIj'TJON~L DEVElOPMENT COUNCIL O!!b 

are employed Dnd the projet:ts are structured with th~ highest probllbility ofsucC\.'Ss. The 

tr .. ~k rc.::ord of the NMTC program spt:aks for itsdr. 

Uncertainty is thc worst en~my of inVestment. (nllCSling in Inw income ~ommlinilii.'S;5 a 

compln d(-cision. A project may be in planning for J y~lIr or more_ In\'Cstnrs- ':01111101 

commit 10 invest in 3 projeel in Isoy) 18 months from now if they do nOI know Iher.: \\ill 

be u prograOJ Jl that point in time. While invcstors- want to illVC$t in NMTC projects, thcir 

inll.:,lmcl1t dollars ClInnot sit idly on the sideline, hoping for th~ eventuul extension of the 

credit as in 2012. Projc<:t dcvelopers WId credit markct:; n~~d certainlY to plan and 

underwrile these projects. Pemlancney oflhe program is badly needed; sho'" of lhat J fiw 

y~ar e~ten~ion is 11~'Cdcd 10 i"lbrlll the credit markels that Ihe NMTC program is a real 

program through "hich th""y clln build publie·privale partnerships 10 acti,'.:ly participate in 

the future deve lopment of low income communities aaoss the e!)lLntry. 

In lIddition to providing forthe extension of the NMTC program. !-I.R. 2655 thoughtfUlly 

~xpl!nds tht' progf"Jnt front S3.5 hillion to $5 billion :ulOually. Dem:llld for Ihl;.' credit far 

exceeds Ihe availability of the credit. 111 20 II , applican15 for NMTC r.:qui:Sk-d Illore Ihan 

$26 billion in authority for 11 progrJnl uwardil1jl ollly $3.5 billion in credits, a 7.4:) mlio. 

During Ihc rec(:ssion, whcn ARRA bricily expanded tile nlio.:ationsofNMTC to $5 billion 

annually, the program dig<,sted Ihe in<'l"c~sed alloc31;ons seamlessly. More than 300 

di~el"W tOEs have Sllecl'Ssfully competed for lUld compleled NMTt pmjt'Cls. Anntwlly, 

only 70--100 of th<.'Sl' ("nlO~ ~ive award.~_ Wilh expan<;;on .,fthe author;ly In $5 hillion 

annually_ (he nU1I1b<:r of COEs nceommod;lted can be increased by 5{)% without increasing 

risk to the prol',r.lm bcCIIIlS!: the pool of experienced CD£s is large. There is IImplc 

cvidencc that SS billiol\ in annuul credit authority would be qu\c·kly put to gllnd USl'. In 

2011. NMTC iOl'cstmcnts tOlakd $5.7 bill;!)n, the most evcr nnd 67% higher than 2009. 

Alol1g with extensiOI1 and expansion ofth<' NMTC program_ H_R. 2635 provid~s foran 

AMT lis 10 put NMTC on p .... r with olher ta.~ ucdit progrwns. The AMT lix will o!.~pand 

the credi '~ in"eSlOr base which will increase competition in the marketplace. increase 

prices for the credits. and incrcnsc the amount of tile federal subsidy going inlo qualili~d 

projects. 

708 Thl.d AVMU"- Suil~ 710 N~w York, New YolII IOD17 Telephone: (l121682.1106 

_ _ wM!iP.!lal!!."velo~"'e.!lt<o..!tndl.ol' 
810 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.753

In Sumnllirr 

NDC has worked'n low income comlllUllitics for nearly h~lfa century. We h~\ c se"'n 

rcllcr~1 initiatiY(') Comr and go. To crcillcl"Conomit Opportunity for low ineume arcilS, wi: 

havc lIsed them nil. Through cxrcri<'nce, wc hn"c Icnmed WI131 wor ~ :Uld WhOl docsn"1 

work. From our rcrspt'Clivc. Ih~ NMTC progrJIII really works for Arncri\;o and is 

cfT("<;(il'c gOVl.'mmCnl in aClion. 

Thunk )ou. 

7011 Third Av~"ue -S~l e 710 New Yo ... , New York 10017 Te"phone, l:nz) 612·UtH; 

www.n~tl"".ldevelo~menl(O~n<ll.or .. 
811 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.754

Gn!at Public: .x-Itools for EI'ery Student 

Te~riml)l1y Submitted ror the Re~o,.d 

U.S. House of Representatlves 

Committee on a~ a nd Means 

Sub~ommlttee un Select Revenue Measures 

Ilearlngon 

Certain bl,lrlng Tu I>rov15101> 5 

April Z6, ZO IZ 

Cham1>an Tiberi anti Mem[)('r~ of the SlIbrommlttCt'. On bch~U orthe 3.2 million members 

of the Nation;,j du~atloo Assocl~t!on (NEA). we than k you for tile OPP<J1tunity to submit 

th~s ... con"n~nlS ror the reco rd in qlnjl1nction with the hearing On certum expiring (3)( 

prrlVision~ , These comments foclIson two spedfic c~pirlng la~ policies - th et'd CilUl~ ta~ 

dt'ducd on and th~ Qualified Zone Arademy Bond (QZABj program. 

Extend the £du~ator II~ Dedu~tlon 

NEA S!1"O ngly "Pllor ~ an ~~t~nsl m of the educator taX Ileductlon. This critical ded~lction, 

which Xllll'<.~ at the end ~ 2011 tax year, helps n'cQc",ze Ihe financIal sacrifices ~tle 

by tt:~d,un; ")Id ed c~tiqn SUI'llOrt )rQf~.:,;~inn~ls. 

Educators often r<'3ch into their own pn~kcts 10 p"rcha~e classroom supplle~ b«~ll~C they 

want to make sureslutlenl:!1 have what they nc<'tl to su~cccd. Stutlles show thai durators 

are sp~nding more of their own r,, "ds "aeh Yllar to supply their classrooms and purch3~" 

essenti~1 items such ~s pencils, glue, sds$ors, and fadal tlssucs. According to NitA's most 

rN:<'nt 5urvry, 97 p"rc~nt of educators SUrvfYt'd ndicat~d thai, in 2006, th~y hatl spent 

someof their own money 10 mccune needs of their students, These etlucaIQrsspent an 

average 0($477 a yearout ofth~ir own pockets to purchase classroom ~upp1ies such as 

books, pencils. paper, and artsupplles.' 

Ma ny educaturs are flntling the tllicd to r~acll intI) their UWII pockel has incl'eased ill theSt! 

dimculreconomic limes, as funding cuts lead to shormges in essential supplies and more 

stud!.'nts com!.' 105chool without basic I ... arning 10015. A large majority ofedutators also 

spend an awrage Qf$ 15 a mllnth QUi of their own pockets til fl'1:d students. (SW/IIlllflhe 

American Public Schaal rrmcher 2005-2006, MardI 2010.)' 

The n~d ror these e~pendit\lres is nOl surpri~ing. Ae<:orolng 10 First foc:u : 

2.7 l1>mion more children lived with an unemployed parenl during a typica.l momh I" 

2011, C(JmparNl to 20117 (an increase of 71%1, bringing th~ 2011 willi to 6.S m!l1lon 

childrtm: 

3 million (47% of those living with an ttnemplQyed parcnljllvetl, tluring ~ typJral 2011 

month, with 3 parent unelllployed six momhs or longer; 

Na, ~....t Educo,,,,,, ",_",;"".S,,,,~, "r''''' ........ Ii-".' P"J,/kS. .... ~ 1',,,,,/ .. r )/JiJj !fJ<!6. ~t. ",~ 201~ 

' t ..... 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.755

6 million mo .... additional chitdren .... lJed upon SNAP for food In 2011, compared to 

21l1l7. bringing the lornl number of children receiving SNAP to 2 1 mmion (one in four); 

16 million children (more than one in five) cur ~ntly live ill pov<'''r 

Theeduc~tor tax deduction i~ 3 bipartisan recognition of edm':ltor5' fonancial sacrifocu as 

well as of th e needs of students whu lack even the basic necessities for success in SdlOuh 

Exten,lInB it will make a real difference fur many ... luc"!Ors. who often must sacrlficeother 

p<'r5onal ne<!(ls in order to pay for classroom suppl\uand instructional materials. 

Expa nd the Educa tor Tax Deduction 

Weal~o stronSly support the Teacher Ta~ ReHef Act nUt 1738). introduced by 

RepresentatlveRelchert (R-WAl. This bill would e~p~nd the educalor deduction lu (uyer 

professional development ex!>"ns"". increase it from 5250 to S51l0. "1ll1 make Ih<' deduction 

permanent. Teacher quality;s Ihe single mosl critkal ~CI(lr in ma ~lmi~lng student 

achl~vement. Ongoing professional development is eMential to ensure I~ at educators Slay 

up-IO-date on th e skills and k'lOwle<lge necessary t" "repare students for t~e challenges of 

!~e 21" century. Expnndln g the deduction to coyer profe~~ional development expenses 

would make a crit;;:;!1 di n ... 'rC"c~ ,n hell'in, edlK:ators~ qualit), tnlining, 

Elflend Ihe QZAB Program 

NEA also supports eXlenslon oflhe Qualified Zone "(lIdemy 80nds program, On aycra!:~, 

the buiJdings thaI hnuse our public ~chouls are more tl,un 40 years "ld.4 TheA'nerican 

Sodel)' of Civil Engineers gives Ihe condItion of our ~chools~ grade of"D" and allribules 

Ihe (ailure to upgrade Ihem to 'problems In Ihe financial sc~U>r and dedlnln g N'cvenue~ for 

star~s alld local guvern' ents.· ~ J\.C{ordillg to Fix America's SchuolsTlXlat (FASTtJ. a 

project nfthe Economic Policy lns!illlle and I~~ 21s1 Cenlury School Fllnd schools need an 

.. stimated $500 billion in rep~;rs and upgrades. 

The QZAII program has proven to be an efncicnt ~ml cost-effeC1lvc way to help 

dis;ldvanlaged communilles address pressing renovatloll and repair need$. QZABs ass;<t 

school d,5trlcts in rural and urban ,o",munltles by proy,dinga nnanclng mechanism to 

r~l1ovatf buildings and Invcst in equipment and tedlnology. Investors re.:eive a federal tax 

credit equal to Ihe ~mOU I11 of In teres I yahJe on the I>onds, Ihereby relieving local 

lax payers and 'nunjdpalitl~ ofl.he inl ~r""1 burd~n. 

A S<honl that i~ awarded 3 QZAB may u~lh. fund,. 10: 

(\'no\"lItc 8nd ... "air buildings: 

invest in equipmo.!ll! and up-to-d3t. t<.'<:hnolo!l1o': 

develup challenging curricula: ur 

trllln quality !~ache ... 

TheQZAIl program npired al the end oflhe 20 llla~ year. W~ urge Congress to extend 

Ihil crlUcal program. 

Th~nk yon for your conslch,ratlnn of these comments . 

• ,II.- ~,a~,;",,~· "''i/f>J'QII",,.,.~ 'O w ....... ,.;..,,,) C_II.ITt" I",II'-""H) ",eMU"",', 6·",."" .. k II·lJtI~R 1'Ir<f>.~h 

_>() II. I"' " I...,.,., 8"""'",,,, ""'lw\J .... U",·"", ....... 20t t 

, No''''''''' C ..... r [Of ldu< ... "" SI"'.otic.r 

, R~1K'fI C<mI {oI A",.rl<,," "',"'W"<<U<t, 1'O(lS 
813 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.756

Submitted on behalf of: 

The National Education Association 

120116th Street, NW 

Washington, DC 20036 

202-822-7300 

202-822-7309 (fax) 
814 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.757

Apnl ZS. 2012 

Th" Hono,alM" D.w C~mp 

Ckaltman 

Comtrlln ... .,., W.ys .nd "1 ..... 

u.s. HOUMI nl R~p'" •• nmi ••• 

W.''''''lIton. DC 2OSI~ 

T~ Hono,.b(e PaV!tk TlI>efl 

C~.I,man 

SUt>cammillee on 5elocl Re""nu. Me .... ' e> 

U,S. Ha" ... 01 Rep< ... nm'''' 

Wa. hlnIIOn. DC 20515 

11, ... _1., ....... , ..... ~ .\W"'I , ........... , ..... , ., ... ' ....... '" 

Ihe Honor.ble So"d., t~.;" 

R.nklni M~mt>o, 

(ommille. on W.V'i."" M~.n. 

U,S. Ho",. 01 Repre,"",ati.e. 

W ..... ington. DC 20SlS 

"T~. Hono-r.b l. ;"h.rd N •• I 

R. nllng Member 

SUlKommint:e On St:1.,,,, ROW"". MU>"", 

U.S. H"" .. of Repre,.nl ..... , 

W.'~lnil"". DC l0515 

Ihe N.,iof>., EII'tUital M.nuf.ttu,e..s A""ci.lticn (NEMAI t""n" , .... Subtomminee for IIIe ""ponunily 

to p"".ldo fori"" 'KO,d ,''''.., tommen .. on I .. 161."" ...... HEM ~ I, Ihe .uocl.'lcn clell'ttrit.1 

eQuipmenl m,,,"I.eI,,,,·,,·, found"'" In Ins and he.dQuatlerrd in Ar!inJ,on. Vi",,, .•. II. meml>'" 

comp.n .... m.nulact"" I diw= .. t of p'oducI.51"ClUdl"1 powe' tt'n,m1"ion "" distribution 

eQul_",. Ilghll"ll '1'>1.eJTl<. tact.orv_utom.tioQ and <01'1(0( .... ne"". and "'ed~1 rll.J"onic imaging 

.... ,"'''' •. Wo<ldwld~ "~""I"~$ of Ni.MA·.cop. !>,oduel> ... ".ed $llO billion, 

1"'011£/,1", Elet.rit VehT<leSupply Equlpm""l .nd 5y<1~m«EVSESI """""" NEMA "'~ ..... nl> 

nu"<1"r~" of produru or llembl;.,. n"a~«I (J' the P"'PC'" of .. (ely del ..... et1"11 . nO manOllni 

ell'tlrk~1 ."ellY between an ~.et'i< hit~ (f~l.nd In . loclric;J1 .au",e, The •• commO"\> .~ 

sub",itled M M"''' 01 NEMA', EIK,ri< "'ehi,", S-upplV [QlJT~"'.nl prod"", .. elk>n'. 

N€MA b.'~"", E\' • • r. part pj Ihe .olution I .... "". N.tion 10 add ,.« m. ny of 0", en."y r.'ated 

cMlleng •• , W. MH .... In .. EV, . re I crilic;J1 com""".nl 01 1:/1. ".11 of Ihe I""",, ~ ene'gy policy Ihal 

promote. jo.I> <, •• """, energy I""e~"".n<e.t>d .",T"<on ,.0""lIon .. HEMA membo' <Om""nl .... r. 

' M_"oI "O ... ·.E_ ..... ""'~_E __ ~UI(lC .. ~"C'OIo"" <OO'>O<I""""_C-."" ,0000._""'; ..... c...-.tIon,.c"' ... '_ -.....61. Go-no~'""'"' .. "" ... __ ... ~,' ....... ,N _ _ .;.....""" ....... r.'''"'rn.co.'''<,. MIIO.o". ..... '''''''''''',.CooIo,,..,.,.s.._ , ..... oc;Stw .... _ .... ," .... ' _ """"IN. "'<,: J.o.""". "",-, Tt {eo""''''1" " ' '''_ 1 ........ _ c ___ ...... , .... _ ............. " lOG tV 

..... ~ .. -
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.758

N.i\lOfl,t EteClrl",1 Man~l~u.ll'e'l' 1\$'<><,,,110'1 

hp~2o 3 

makrn8 ,;g~lllcanl in\i(>SlmenU in transportalion eleClriflcat;on. With tile righl set of polkies to go with 

them, 1~ ~se investments will pay dividends lor generatTons to come. 

IIJEMA n..lleve, e~l .. ndlns Ih .. SNITon joe [(edit fo, Allern3llve Fuel V .. hlde R~fuellng P'OPl'uy 1< one of 

the,e <rllical pollde,. 

The Nation.1 Aoademie, rank> electrificatfon.s Ihe mo.t significant engineering achiev~m tof the 

twentieth century'. Few would argue thi' point. Put anOlherw~v, NEMA memn..rmaflufacw,e" Imve 

spenl l!>e la'1100 ye." buildin8 an ele cl:ric lnfrastructu,", that" virtually ubiquitous today and ,e~dyto 

>u~pon Ihe ~Iuuing·in of America's (3", and truck>. In fact. plo~ment 01 £V. is the natural Utefl.;On 

01 a robun, reliable, afld affordable elI>C".klrld. 

Prices at the ~ump have b .. en lnc, .. diblv'unSlable, while crices "",a. 54 pe' gallon In 2008 and agaIn now 

pl;C<!;I terrible bu.den on Am~r ean I<Imill .. s. Tne ~r e 01 eleotridty. en the olher nand. has r~maifled 

~ady afld all""dable . Au;ording to the Edison ~ctric l~tI UI", eye~ when Rasoline prices were at 

tlleT' loweS! poInt, powerrng the averag~, Car by electricily as opposed to gasoline would havid,e en 

mo.e economical'. Today, the dillere"". between the two in dollar>-per-Ia llon equi .... l .. n! i. dramatlc. 

U.S, electricity i, generated bV a range 0:1 mo.tly domestic teed'tock. ifl(]udlnE coal, naturaI8a., 

nude .. , and ,eflewable •. The U.S. En~r£~ Inlormanon Admini,trat;on estimates that 70" of.1I 

pl'troleum 1$ used In Ihe traf\Sportation "eelo,_ M()\IlnS away from 83<oline and towa.d ectr k Yenld"'l 

r .. ducel our dependence "" foreign 0;1 and Increa.e< our nnicna l <ecu.Tty. 

T!>e techflOlogle. behind fVs are proven. Innovatloo< continue to occur al a rapid pace in Ihil seclor, 

buI flO one should eatesorl1e th e development of the electric S.ld 0' elNlric veh Icle. a. technololically 

rj.ky .. ndeavor<;. 

Deployment of electric yehlcle. wi ll decrea,e pollution. Accord ing to a new study bylhe Union 01 

Concemed xientist', ~lflc vehicle .• , no matte. wi'latpart olt"" country you ar ~ In, are an 

en~lronm~nt31 Win', The situation will of\ly improve 3S our mix of g~~e."tlon .esources moves away 

Irom coal, as I, already ""curring due 10, for instance, the vast amounlJ; of newly ,ec""' .. rable natural 

gas. 

6~t toda\,'$ "ea,(ng i, net at ilJ; (o.e aoo ut d~batjn8 the merits (If varIous a ltefflative transPOrt~tlon 

Fuels_ fhis he3"ne is. however, about whether Or nO! to Ulf!I1d" ~X prOyilion for .. merging ma,kets_ 

ThT. heu'ifle is about how be<lto encou,-age adopliofl of fleW techflologie5 and enWf~ tIIat the researcl> 

~nd development and mijouf~~w.ing jO\11 aSlQciateo witll tlle~e /lew tecllrnJ Qg ~ rema]ll llere in the 

u.s. 'nstud of being e.ported ove"e~,_ 

• WW\O' .... ;,"'''.ouri''_II ... '~~I."'iJ'Prko pOQll IOI1.p<I! 

·"I..w:!'."t,L"H,2!Il!''' !I~!!'.!!!'"L!lCI~~!t'''ot')<''!l:I!~.!!\'.'''''''I-!!"i~"'~W'''1pOl 
816 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.759

N.t'oro,1 Ele",k.1 "" .... ~I.Jn"'er~k>Oc,jlllon 

Pagelo'3 

The Ahernative Fuel Vehlcl~ R~ uelinH Properly C",dit (SeCiion JOC), wh.ch e.pi'ed'n lOl l . provided" 

modesll~~ credll lor the purch.~of refueling property Cleslgned 10' V1!hlcles powe,ed by e thanol. 

natu ral «i., comp,e~sed n~tunl g~., liquefied natural gas. If.quefied petroleum Ras. hydrogen, <erl.in 

biodlese l m,>lur es, orel~cl,;cj[y. 

Cludy. tnrs credit ClOeli not plc~ technology winner, and losers. Rathe •. it promotes all alternative fuel 

transportation In l,amuClufe, 10 give consumers the most flexlbilitv In choosing Ihe fight alte'nalive fuel 

V1!hid"s to me"tlhei, need •. 

NEMA env;llon,lhe Section JOC t'e~it 3S,. lemporarylncentiV1! designed to ptovide an u fiy boost 10 a 

bu'geoning .... t 01 indu'tries. "ns",ins bOlh thallh" U.S, is nol oulpaced byoth", count,les making 

. imll .. , Inve. tm"ntsand Ih3t lh" public policy objective. ol~ltefnative fuel. In tra",portation a'e 

e~pedfted. 

Ea'tv adopters of alte(nati~e I"el \leh>cles need certaintY as they ma~e purchasing decisions, A multi· 

yea, tolension oflne """lion lOC e'edit W<lul~ provide 11\15 <"rt~(nty and a le~el playing field amon! 

alte,native luel technologies. HoweV1!', gIV1!n the realille, lacins (ons,e .. , NEMA u,ge.tne 

Subcommittee 10 .ecommend extending the SectiOn lOC e,edilto apply. t minimum, 10 tax yea, 2012. 

lhank you fo' the opportunity to provide te.rimony alloday" hearing. 

Slnce relv, 

Kvle PiISP' 

... lea P'esldent 0 1 Gove,nment ~e laHo n' 

National Electrica l Manufacturers Anodation (NfMA) 
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Statement for the Record 

Cilrl Cohen, Presldenl National Employment " Opportunity Network (NEON) 

For Committee on Ways and Me~ns Subcommittee on Select Revenue Measures 

Hearing on Certain Expiring Tax Provisions 

April 26, 2012 

Mr. Chairman and Rilnking Member Neat on behalf of the Nationill Employment Opportunity 

Network (NEON), I want to thank you lor the opportunity 10 submit testimony on Ihe Work 

Opportunity Tillf Credit (WOTe). I am "'rl Cohen, President of NEON which is comprised of 

management assistance (ompanies that help businesses to set up and administer hiring tax 

incentives programs both on the nillional, nale and local level. 

The Work Opportunity rax Credit (WOTC) has been one of the most cost effective publicprIvate sector partnersh,p jobs programs Congress has enacted, SInce Its Inception In 1996 in 

conjunetion with the major reform of the nation's welfare programs, WOTC has helped over 

7.SOO,000 people transition from dependence on public assistance programs into the job 

market and in many cases providing an opportunity for advancement. WOTe gives employers 

an Incentive to take a second look at those eligible and giye them a chance to compete for a 

job. In 2001, the Government AC1:ountability Office (GAO) concluded that employers 

significantly changed their hiring practices in response to WOle. 

According to a 2011 study by Or. Peter Cappelli, a t..Jbor E(onomist at the UniVe~ity of 

Pennsylvania's Wharton School of 8usiness, WOTC is a can effective way to encourage 

employels to hire certain categories of individuals who have limited work skills and/or other 

barriers to employment. most of whom are on some form of public assistance, Dr. Cappelli 

points out In his 5tudy that indivIduals hired under WOTe tend to stav on the job longer and ale 

more likely to advance than oUler entry level workers "" ~o did not qualify lor WOTC. He also 

indicates that WOleacts to e~pand the nl>mber at people in the workforce given that many 

non-WOlC job applicants are already employed. Or. Cappelli conclude!> that WOTC :iilves the 

fl'deraigovernment an average of 55,000 in federal public assistance paymenu for every year 

th"t the individual stays in the workforce.at a ma~imum onetime ~OSl 01 51,SOO to the federal 

government. 8ecal>se WOTC is generally only a one year cf11dit (exception lor long term 

welfilre recipients) the savfngs to both the federal and state governments conUnue for each 

vear I hat thev remain in the workforce. It ~hould be note.d tnat a New York State Dl1partment 

of labor Study indicates that those hired through WOTC conti ')Oe in the work/orce. and do not 

go back on the public assistance rolls. The average "edit, bd5ed upon employer rec.ords is 

appro~imately $1,100 per certTfled indiVIdual. Dr. Cappelli's calculations do not factor the 

savinss to the !otates for their share of public iIS~lstance paymenu 101 welfarc and Medicaid. 

This makes WOTC one of the most (Ost effecttve jobs prosrams ever enacted. 

When the Committee does move forward on the b\lsiness a~ e~tenders, Which NEON hopes 

and urges that you will do e~pediti ouslv, we want to encourage yOu to take a loo~ at the 
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Schock/Rangel bill H.R. 2082 which would seamlessly reauthorize WOTe. One of the major 

problems facing this country is youth unemployment for individuals who have dropped out of 

school or who have been socially promoted through the !oChool system but graduate with few if 

any employable skills. In 2009. Congress added a new WOTC category - Disconnected Youthwh'ch addressed this-problem. The Department of Labor's records ,ndicate that employers 

responded to this new category by hiring 160,000 young people in FV 2010 most of whom 

would never have been even considered for employment absent the WOlC incentive. 

Unforturtately, this category was allowed to lapse at the ertd of 1010 when Congress last 

reauthorized the core WOlC prog ... m. For Disconnected Youth. unemploymertt remains well 

over 25% and in some inner city and rura l communities, It is upwards of 30%. NEON strongly 

urges the Committee to reauthorize this provision. 

Similarlv, NEON would ertcourage the Committee to ertact a provision irt the SchockJRartgel bill 

which would help to make the program mOre user friendly and reduce the administrative 

burden 00 the State Wor~force Agencies \SWAs) which are charged with certifying Wale 

elfglbllity. Currently, emplo'fi!rs are required to file a certificatiOrt request artd the SWA Is 

charged with verifying eligibility and then issuing a certification. The volume of certification 

requem runs two to three times the number of cl'rtifiCiltions granted and is runnillg 3S high as 

1.000.000 applitatiorts a year. At a ume when the SWAs are facirtg sigrtlficant budgetary 

constraioh this Is placing an ever Increasing and, In a number of Instartces, an unnecessary 

burden on the SWAs. 

For most (3tegories, th~ SWAs. are the only entity which ha~ acces~ to the eligibility information 

required to issue a certification (welfare and food stamp records). However, in other Instances, 

employers with the help of those they hire can obtain all the information needed \0 verify 

eligibility. That (s whV the Schock/Rangel bill provides employers wi th an «alternatiVe" 

certification process. For categoril's such as Designatl'd Community Residents (Empowerment 

Zortesl, SSI recipiertts, e~·offertder.;, artd voca tional rehabllitatlort referrals, in most cases the 

employer can obtain the information needed to determine eligibility. This ioformation can be 

gathered either directly from the individual hired or from a government agency (suhje<:t to a 

release from the irtdivldual hired). Irt those irtstances, the employer should be allowed to claim 

the credit without h3vi"ng to SUbmit a certification request to the SWA. Under the bill's 

prov'sions, employers would be subject to audit, loss of the credit. artd pertaltles should ,t be 

determined that the WOTC credit was claimed inappropriately. This would make the program 

morl' employer accessible <lod help to reduce the administrative burden for the SWA<:.. 

Another concern for the employers we work with is the need to extend the Designated 

Commurtlty Residertts category which provides a ta~ incentive for employers who hire 18 to 39 

vea rolds who reside in Empowerment Zones ind Enterprise Communities. In FY 2010, over 

65.000 individuals 'were hired from these communities. In order to be eligible. the provision is 

depertdertt uport the corttirtued existence of these (ommllrtities. NEON would urge the 

reauthorlzatlort of Empowerment Zones ind Empowerment Communities or at the vt'ry least 

modifying WOlC to allow for continued eligibility under Wale for those who reside jrt tMose 

previously deslgrtated communities. 
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NEON would like to point out to the Committee Ihat de~pite Ihe e~p ration of WOTC Oecember 

.n, lOll, mon employers have continued 10 maintain their WOTe programs which involves 

considerable expense to them. The costs involved in maintaining a successful wore program 

InclUde: 

1. establishing a community outreach program In order to increase the number of 

qualifiKi applicants applying lor Jobs. 

1_ incorporating the wore IRS pre-screening form into the job application process, 

3_ training managers to look for and hire WOTC eligible Individuals, 

4, the added costs of training ilnd retention, il5 well a~ 

S, the costs involved in filling out the required paperwork and fillng it with the SWA along 

with any required backup information, within 18 days of when the employee begins 

work, 

Given Ihls good filith reliance by employer.; who are currently incurring considerilble 

expenditures in the expectiltlon thilt, ilS Congress ha5" done in the past, WOTC wlll be 

seamlessly extended -- NEON urges Ihe Committee 10 do so once again. 

Finally, we commend the Committee for recogniling the special challenge5 facing our troops 

w~en they come home and look for work. The enactment oflhe Retllrning Heroes and 

Wounded Warriors Work Opponunity Tilx Credits will encourage employers 10 once again 

change their hiring practices and seek. to hire veterans. However, NEON is concerned that 

without the extens,on of the core WOTC program, many of the same employers who 

panicipale in the traditional wore program will find thilt they cannOI justify the cost of 

maintaining Ihe WOTe infrastructure needed 10 make the veterans credit a success. As best we 

can tell, the veterans hiring credit will result in a program that is about one tenth the size of the 

traditional WOTC program, The new veterans credit will work best as an add on, nOl a 

substitute, for the core WOTC program, 
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.·.~ tional 

Far::mers ----= Union 

",---,."". 

M.V 10,1012 

n,~ Honor.I)j,"D .. e camp 

Chai,man 

Heu ... W.ys and M •• n, C"mmln." 

Il02w"gwOflh H",,~ Offi(~ 8~ildin8 

W.'~lng on. D.(.lOSIS 

110. Hono .. ble ~'l Tiberi 

Cj>."man 

Hou .. Wav.;o,nd MNn, Commi1lce 

Subcomm iU •• on SeIe<L ~ .. enl>e Mea.u,", .. 

106 Cannon Ko",,, Offie" 6uil<ll"l! 

W'''''fl,Rlon, O.c. 20515 

The liono,abJeS.ndorl ... ln 

Ranking Member 

Hou •• Way. and Me .. " ~ommltt"" 

1106 Longworth Hou,e-Oltko Building 

Wa.hington. D,C. 20515 

The Honorable Rlch.rd f. Neal 

bn~'nl Member 

Hou.e Ways . nd Me.", (ommll1"" 

SubccmmIU'. on Sele" lIe.enu. Mu.",., 

U()! Ravburn Ho",," Office 6ulldinll 

W''''inlton, D.C. 20SIS 

De." (I1.i,man Cim~. R'nlinl M.,."be, [ ... ;n. Choirman Tiben.nd RanlOOa Membo.r Nul; 

NUTon.1 ~.rm " I.In;"" INfUl.p~rocl'I.' the oPPCflunity 10 submll com""'nulor Ine ,ecor<! rq.'d,n~ 

.h. comm~,"e·.\ hea,lnJon 'U(n E'pl,l n, h1t Pro.blon, hekl Ap,lI26. 2012 . NFU h •• ll'p'~'en~td 

'amity fa,,,,,,,,. '.nch~" .nd ,u,ol ,~.Idenl' .I"ce 1902 ""d W. work 10 Imp'o"," h~ well ·beinl and 

qua li ~~ ollile 10' I.mily I.,me< •• ",ndl." ~nd "".1 communili •• by ad'IKatln,I", .""'''''I.~,i""" 

po~t'/ IdoPled _MUl ltv bv cu' me,nbo'"hip. On beIl.11 of n'" l00.000I.",;ly lo.m memb.", I "'lie Ihe 

committee 10 eXte"d I~ f txpillflll ~enew.ble Energy Prod~nion 1 u ~dlIIPTq u quickly II possible. 

f he PTe ;>lhI' main drive. 01 w'no prcletl r:ttovelcpmenIO. h.mt'r< and ranene .. leross Ine ecunl!y 

under<'and 1M "p"",nunit'! .h., ,e new.bl" ene,S'! p,,,,en'. a •• '0<1". 01 ",vez,uII lor ' hOi, o"",al;",,' 

and Ihel,communiti ••. Th~ PKIs c",clal 10 lhe Wind Ind .. SI ..... e'i><'<I.II~ In ,~{e~I" the middle of lhe 

'''''nlry Ihal have the apPOfl .. nil~ 10 <:arry renewable pow .. , 10 la,ge, 10ld , .. "te" """" ~1Ie c"untr;. 

Whelhe. II i. ",IUn, eleeVieltv "" \0 111" . ,id o. off.eWfIII ,,1.cI,lcily <0>1. on I~ir ope,.I1"". Ame'''.'' 

I. ,me" and ,"n<he".", uge r to ~a ."'1 tI •• n..wable f,,,oure,,, M th~j . land. U"lonunal~I~. l~~ 

un'~"ai"' ~ 01 '~e Pf( 'e ,ion ma~. r.no",ie .. "~ bu.i"....e. he,lton! obo .. t in_llnl): in 0' 

dev.lopi,,! n~W pfajem. Becau," wind PfOjecl, .re developed ",.eral montl .. in .d."nce, t~e industry 

loa, .1,e.eIy "",n lovoll, in the worlllo". and d,op ·off. in orde ... 

End ing ' hO fTC would be deva"a.ing '0 .he renewable """ff'! indow ..... Ana tv ... by the Am."con Wind 

E"erl~ "'.""iotion ( ... WEAl faund Ihol37.ooo U.S. Job. c"nnected to the wind ""to' would be lost., .. 

, ... ,,11 01 endiflll the pre. >\<'0" Ihe en.l ... the .upplv chain. I'om ml "ufactunf\8 planl. 10 ,,,,,"UOI"" 

and ",alnlenan"". Job.wlll be at rhl<. fewer tconomi, opport .. "II ... <"".ollve.lstln fufal A",enco. 

lOfti ng VO"ng people 1o Ii".! w<>rIc ~h"'e. At 3 tlmo 01 ~<onoml< dime .. , Weconno' . lIord \0 end 

i""estmonl In this Indu.try tho, I. "'ili,.II", "'ral e<onomtr development. 

Tlo nk~o" fa, ,... .. , coMlde,.tlon. 
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5lncerely. 

Roger Joh,uon, President 

National Farmers Union 

20 F Street NW Suite 300, Wilshington, OC, 20001 

202-554-1600 

Contact E·mall Address: cgoule@nfudc.org 

Hearing on Certain Expir'ng Ta~ PrOVisions 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.765

Statement for Ihe Record for the 

House Committee on Ways and Means 

Subcommittee on Select Revenue Measures 

Hearing on Certain Expiring Ta x Provisions 

April 26, 2012 

National Federation of Independent Business (NFIB) 

1201 F Street NW Suite 200 

Washington, DC 20004 

N~tional Federation or Independent aU ;ne ~ 

11{11 ''_~W ' _1<II'W,_OC lOOCK .1{11., ..... '1000 . . .. • 1It·, ......... • ......... Nf .......... 
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l~e Nalional FederaHon of Indepe"d~nI 8u<ln@\\ (NFI8) a~pre<lale$ I~"- opportunltv Id ,ubmllthi • 

• t",~m~nl lef the ,ecord 10' the hearlnl on certain e.pi''''II'' p,ovi.ion., al,o known a. ", •• 

ulende .. ," NI'IB .. the nalien'.leading 'm~U bu.in .... advacacv O'I~nilation 'ep'e ... "tinl ove, 150,000 

.mall bu.in ~u owner< " fO« the co.mu't, ami we apl>fe<iale the oppa<1unllV '0 p,o";de ou' 

~ .. pe<tNe. 

h. uncert ainty continue< to pl.gue .m~1I bu.lne ... In lact, accordlns tothe NI'IB April 2012 Small 

Bu.I"" .. Economic Trend. report, 10 percent 01 .mall bu.lne .. cited la,e • •• the ~Inile mo<t Important 

p'oblem I",ina them lodiV_ Additionaltv, a retent NFIB poll .Mw.12 per",,,! of ,mall·bu.lnell owner. 

",jd uncertainty •• the 'insle mO" import.nt eXlernal impediment 10 g'owlh. Ta. uncertalnlV als<! 

fncru,e. compliance co,,, for .mall b<alne .. e •. Alrudy, the typical .mall bu<lne" 'pend, annWlltv 

between 1,7 billion and I.B bi llion hou" on I •• cempliance . nd $18 billion 10 $19 billion on complia"," 

<Olts. Small bu~ine" own~n ~lla lpeI1d on .. ~era8e S74.2A pef houf on Ihepapeo-work ... soc .. oted wilh 

la. <ompllan<t-the highest plp o-work co51 Impoo.ed an .mall bu,lne" by Ihe federal lovernmenl. 

Funher, on. of the greateSt con<em' lor .m.11 bu,ines. OWMrs is l heir In.bility 10 COflduu Iong·ierm 

plannlni when r.hallenged wilh tn rule, Ih3t change connaollv. It I, .... ryd;fficOI\ lor oma ll bu,in." 

owne .. 10 make ,hon· and 10011-1erm Inv~"me"1 deci!ion. when 1rn.1 , fUlure la, bu,den I, SO un<e'tain. 

A, IhO end of Ihf> yo",_ 2012, thee.pirltion 01 many , moll b<Jslne" la. pro.l,lon. will adve"ely I",pact 

job Cleation and ,mall bu,inu.investment opportunities. "especliv~ of when Ine,e p,o.',;on. we,e 

enacted 0' •• iended thraug!> Weviou. leg •• latlon, the eutcome el the,e pra~ ... on ••• pl,ing will be the 

$ame: hiBhe ' t •• on ,m.1I bUSinesses, rewlt",g in the loss 01 .. tal c",h 110 .... Fa, 'his ,uson, any 

dlscu .. ion.,f eXie ndinli ~i 1 ta~ pr.,vi,!on mu.t Include the 101l..,wlnll prioritie. lo, .• m.1I bu.ine .. ~ 

(\) the tJ<pandcd e~pen'in£ unde, .5eClion 1791Mludlng Ihe definition 01 real properlv a,added in 

Soertlon 2021 01 tn. rQ~ /l~litl ACI of 1010: 12) extending the <e ll.empl"l'ed ~e. lh in,ufance I .. 

dedurtion,;oJ; en.ctlOd in Soecf(on 2042 cf'he ~m.,Jl8u"'nr .. jab,Acl of JOll); (3) tM ,educed S Y<!" 

holding oeriod 10< the Dui lt in ga in, (SIG) ta., .. e .. e ndcd In Set!"", 2014 01 lh. Smell Bu.i",,,, jobJ ACI 

0/2010; Jnd (41 th ~ n"'ea~d start-up deductlc>n for new small bUllne",,', ~s en3cted in Section 2031 

01 tt.e 5mo/I Bit';""" Job. ACI 0/2010. Addltlonallv, otner provi.ion, included in S. 2(150, th~ 5mof/ 

9u.ir1e,. To~Ex!tnd~r. Act of 2011 sho uld bl!- cofUide,ed by .he commitlee. finil,lIy.;t ll mpo''"~t 10' 

Ih ~ commT""" 10 con,ider Mh., ""~lrl"1 Ia. p'''''i,lM' lmpo<1ant 10 N~IB'~ m~",be., 1",;100'''11 

deprec1all"" f",qu~r.fied rest~urant budding .. l.rm eQuipment, om! the deduction lor ".Ie .. Ie, I~.e., 

Since 2003. CcoveS! hu s.udilV inc.-used the ~l owa~lI!.e .pen.in8 amount fr.,,,, $15.000 to SSOO.OOO 

lor tn vear 2011 . Section 2042 cllhe Smali8u,inr5.lObS Act of ](J10al<o"RoWi'd tor the I"d",ion "I 

,eal p,operly o. an elill.ble deduction. Thl. ollow •• mol l bu.ine .. e. 10 Tmmedlatei'/ deduct the full v~lue 

oftn..e.tmen(, in equipment in ttoe veo r the "~e,\ment is m. de ralhel th~n cI.'minll the deduction over 

~ longe, dep,e(i~ tion ~'iod, K,ealiy limplifying i,. prep.f."on, tlCongres. fIlls to itt (hi. vea" 

SPClion 179 e.pensing would no longer include real propeny. and the limits wiliiall b.c~ to $139.ooo.n 

20lhnd $25,OOO in 2013_ 

r.i3tiona l Federalion "'Independenl Bu.lne'! 11., ..... __ • !.oK. >00' w.-...., toe _ • ,,;,,,s\<.9Q(lO' ... 10:1-.$!.<"""'...- " 111.,,,," 
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S~II-£mploy~ Heolth IMUfOrlCf' CMd"'t;'rI 

Nfl8 .upports PfovldlnB ta~ equity to Ihe nalion's .~If.-emp oy .. d busine,ses b1 e xpanding Ihe 

deductibility of hea lth In!ura",~ 10 applv to employment taxes. Section 2042 of th@51OO1IBII5InenJob. 

ACt 01 ]010 allow, ..ell·employed bu,iness owner, 10 deciu<\ Ihe cost 01 heall~ insufapce lor /hem,elves 

and Ihelr familY In Ih .. cakulaliDn 'If Iheir 2010 .elfc .. mptDymen!la •. 8etau ... 75 percent 'If _1I.moll 

busine • .., •• ~ pass·!hrcuSh entities taxed .tlndivlduiOl r.UU, the deductibllit-/ 'If .uch in.u, "nce 

e' p"nses makes a real djffe~nce. 

R~uced D'din~ Period lor Bullt" n Gain. 

Re~ucin£ the BIG hc ~ing per"kld for S·Cmpo,aUons is ee,, "altD Ihe ability 'If 'm' U bm;ne •• e> to ace .. " 

capitaL When bu.inessu convert from a C-corpora/ion tD an S-corporation, thev have been "'\lulred to 

hDld Iheir app, ecialed a",", fD' up 1o a decade Dr el ... face. punitive level of deub le ta. atiDn. Thu., 

Ihe DIG ta. eff«tiViily lock,·in c.p 1 Issets. SeClion 1014 ollhe SmoI18usl~~jS Jobs Act pf 2010 

'educed Ihi, helding p"fiod 1'1 S yea .. , hilt il will in<rea ... II' 10 yea" in 2013. 

S/ort-U" Oeductjon fpr New 5moll Bu.in .... e. 

While. ty"i",,1 b",i"e .. can deduct its OO.iM ..... pens ... In th"- year lhe e'pen •• " are paid, a Slart·up 

bll.i~" I, IImlled In Ihe amounl it can dedLlCl. M.naging .uch e'p!ln<~ 1<lmpertant 10 ope,ating' 

.ucce.sful buS<"e!oS. According /0 the 2001 NflD Small Business Poll, the cost 01 IT4lerlals and supplies 

I re amDnllhe most p,ominenl exp,,-""" fer .moU business OW""". MD.I new 'm~11 bu.ine .... face 

s'gnificlnl start·up CDstS, including .dot rt"ing. ObliOinlng IkenS!s, permit. and fet>, paVins 'ent. hiring 

bu<in." and financial con,ultanl.5 and ~,ovld n& employee " .inin&. ~tlion lOll of In. Small Bu.ln~5< 

JoIJ, ile' o/lOJO~ddr.s .ed Ihl. I,."," bV allDwlng up tD $10,000 alter I'~ year 2011 u. de<luclion tor 

!larf-~p e.pendilure,. Inaction by CDnS'"'' ~duce. thi, d.du<li<>n 10 $5,000. 

Cenciuwn 

Delayinl con,iduotlDn 'II theS! p' O\Ii5ion. ha, Ihe practical eftect 'If creating ir .. ate, un<ertainl'; fo, 

,,,,all b",in~ ...... Thi' uncertainly i. ampllr. .. d due 10 the facl Ih.!, in n''''1 Instanc", ,m.1I bu'ln ....... 

mu<l paV thel, Income la . ... Quar!e ,ly. The end of 2011 already en13I', Ihe ""pl,atlon ot the current 

m.rglnal tax 3t~ IIruClure, rnJny popul~r family ~nd buslnelS dedUCIlons, t~ e "'plr tion of the AMT 

PdlCh ~~d <Ev .. ",1 Dlher prov;'ien,. NOl dealing wil~ Ihese popular .m.1I buslne", la . exlenck" until 

Ihe end of th~ vea, ,e,ulli an exu. (Ive .. of unu:rtainlY fa, .mjll business pav r •. furlh,mo,e, 

many of the,e o,o .... ion, enjDY wide ,uupon by both Membe .. 'If CooM ' ess .nd lh~ bu.ine .. 

wmmunlry. A;such, jf .nd whl!ll Congress lakel up luoo.me nl.1 Ia. 'elo,m. Ihe!oe provi5lon, Ihould be 

made pe,m.nen! fealures 'If Ihe la~ code. Barrlnel""I, I~"f e I. nD ,. asen Ihal the,e p,O\Iision, . hould 

not be edended "",manenlly. 

Than" yeu again fa' Ihe OP\Xlrlunit-/ 10 prO\lide comments on up"'ng I'~ p.t""!sion~ , Nfl6 rem.lns eager 

1'1 wD,k with members of the CDmmille" On Way. and Means tD pr.,..ide ta . relief and certaintylD Dur 

naliDn' •• m.H bu.in ... job creolers. 

Nat>onol rederallon o/Independent 6usln"1 

IJO"~'NW 500"700·W"""",."oc 0!0004' ~~, r"N.I·~ · _.N"",,,,,, 
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NATIONAL FOREIGN TRADE COUNCI L, INC. 

1625 K STREET. NW. WASIIINGTON. DC 20006-1604 

TEl.: (201) 887-0278 FAX: (202H52-8100 

Statement or lh Nationa l Fllrcil!lI Trmde Council ror Ilir I{tcord 

lI .. u,... W3) ~ lind Mean. Committee 

Subl:olnmil\u lin Select Rcnllur l\lu l"tS 

lI u ring 1111 ~;~ Jlirin ll. Tu I'r'l\' ~inn s 

April 26. 2012 

The N3 inl1~ll'lI~ign rnd~ Coun~il (NfTC) welcomes thi,l;(,anng and urge. Co"gre$S \0 acl, 

~ won as po,siblc. 011 legj$btion to e;(lend ~ nllmber of pro-gro"1h. Pr'lH'onlpl1iliwn~s lax 

prQYiJion~ that expired ~t th.' end 01"2011. G;,'en lh<' u""Crt<linl)' "reltl-d by I\QI knowing "hat 

the SIUI~ oflh~ law may f,., and given Ihe~ompi1ili,""ne~~ p",s~Llre~ ()flh~ global mart~lfllac ... on 

ilnmtdi~lc and Si'amlc5S extension ofllll:5\' provisions will provide illllnctliaic t..'rn:iits tn Ihe 

U.S. ""onom)'. 

The NFTC. Qlg: 'ni ~ in 1914, is an ;us.ocialioo Qr $(Im~ 150 U.S. bllsin""s nt~rpri ses en&aged 

in all ~spect.> ofi"l~rnatiOl1altradennd in""~lm~nl. Our membership co>,en; thc full spectnlm of 

industrial. cOfllntcrcial. fin.nd.l. and service ;&<:li'·i11c5, and we seek 10 fustcr an em ironmenl in 

"hieh u.S. companies c~n I>c dyn.lmir and cfkcti,·" compclltors In Ille intcrnMionnl hus;rie;;s 

arena. 

NFTC mcmbers belkv" \hal Pro-l!J"Q,'oth \3:< law chnnge.> "ill go a lon.g way to ~hol"<'" up busines5 

conlidellce and prolltOIC U.S. l""<:ontlmic grQ'HI! and job cr~31ion. We urg" Congress 1'1 adopl a 

billtMI can be enacled as roan as ~iblc aod signed imo law by th .. I'reiident Ih31 'ndud...; tile 

(bllowin!!, pro>'isioll' Ihal expired a1 the. end of201l: 

The "Cf C LOllk-Through·· Rul es 

We ~uppon lh~ eXI~n iOlt nfdt~ Jaw tt.al nillms "]o.1k·lhrough" II\'UIIl1 .. III for payll1~llb of 

di"it!...·nds. inlereSt, relll~ and myahi"li ~tw~n ",lm<"iI c()nlrolled f()rei!!,n co;pnrmiollS. Wilhoul 

Ihis pnwisi(>J1 AII1~icM c()"'p311ic~\I'" Ilbjecllo U.S. tasativn ,, h~n they ",d~ploy foreis.n 

earning.> from al1ive busineS$ Ol"'rmioo~ in f""';&n marlicts. FI!~isn busineS>Oes C()mP<"ling ill 

th.(. !<'Inle markets p;iy 110 $u.::h t3S to their home C"I ~~lries. \\ ~Ih(\ut the tXttM;()n of this n.M, 

Amcrican rompanics wi!] ",main aL a ~ompcliljve disad'·nntal!c in !;Crving fo",jgn cU6tom~rs rind 

co"sum.::~. 

.._"",§_,C __ .fo,II_," c:.ol"'f 

~,..~ 
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The United Stntc, ta~cs U.S. ~oll1panie$ o n their wl)rldwidc income. but thc gcncml rule is Ihnt 

forei~ ubsidiary irn:ome is nl)! laxed by the Unitt'<! Statcs umillhe subsidiary cami,,&, a", 

broughl back 10 Ihe U.S. parent u~ually in IW, fom, ora dividend. In 1%2, CQl,gn: s~ imposed 

immcdiat~ ta~ un "passi\'\:" sub:!iJi3I)' e:,mil1j!.>. In a wI)' .!!~1ll:ml *''';'', Congress wnnK'llto 

pre~ent companies from forming foreign !utlsidiaril'S for the purpo.s.e of"paoi:.inS" ponfolio 

invcsllncnt5 Ulil oftll.- ta:'( colkctor'J r~ach. 

Sine<: 1%1, till' general rule has dcfcm.'ll ta~atiun of '-aclive~ bllSirn:ss income ii'o1n 

operaliolll CUlidUClt'<! in a SillSk foreign country. In th~ paSI, th~ law taxed curremly di,·idcllds. 

inl~"-'S _ ",illS Qf ruyalti~'S p,1id from one foreign an'dial" 10 aOOlb<:r located in a din('",111 coumry 

as passi,'c income, If the 1\\(' subsidiaries wen: in the Slllne cuuml)'. currem U.S. taxation did 

1101 app ly. 

in~e 2006 Cong"'ss has pemlitwd the actiw eanling>; of foreign affiliale'S of U.s. 

companies to be rt'<!cl'lo)'cd bcm-ecn lhose aniliatcs ",ilhoul CUITCIIl tax. '[,his n,le ~"I'ired at Ihe 

~nd 01'201 I. 11,,, Ir~diti"na l ",udel for uperaling a global!)""i"""" h"" chung~..J signir c~ntly "vcr 

the lasl 40 )'~ 3rs . Tod3)"S global econom), is sil!njlicantl)' different from th" environmenl lilal 

exish:d "hen Ih~ ruk'S wen: lirst introduc,'d in 1961. InlOOay's world, il mak.:s no"e",,~ 10 

impose income tax when U.S. companies want 10 fund!he uperalions ofa ubsidi~I)' in One 

"oumry from Ihe Qctiv~: busin{!SS eaminJ;s "f 3 subllidiary in a Sl.wnd country. Foreign-based 

companies in tcnitooa\ juris.ditlioM pay no such till<. 

1'01' e~ample. U.S. mam,l:ictlJn:flIl.\'picn\ly establish !lpr.:ciali~cd rnarmf~lur'n¥ sites. 

dilitrihU\i'~rl hubs. lind :iCrvicc centers. As 0 resull, edCh relnted-pan) entily ,",,'\Ie:<; D wry 

specializc'{\ function. Wilhoul an c.xlcnsion nflhis SO-C,1!1e..J "I oo~-Ihrollgh~ rule. U.S. laX law 

would inappropriHldy lncre~,e lhe COSI for Ih~~ foreign sul· .. ~idlari~ 10 S<."I'\ ~ thdr cuslomers in 

a very I;Ompelili~e busine5s environment. or~il!n competilors do nO! pay current !a~ on 0",'1\: 

rebt~d-party payments "f dividends, interest, ",nts and n)yaliies. 

Un le ss the look·thn~ugh rule is ~"tendcd, American companies will he Bt a m~terinl 

compctil,w disadyantal!-c as compared to fnrei)!'n-bascd con'pllnie". Surr~rinl!- ClJrTent U.S. 

\.a~a\;on ~cli\ ~ bl~~i,lC$~ incomc- " 'hen SUbsidiaries m~ke cros,;-oorder p.lym~nI5 \\·hilc Ihe 

loreign COmpetil;on pays no sllch IlL'! w"uld penuli~c U.S.-b/l!;Cd nlllilinnliMals for responding 10 

Ihe ol'pnnunity 10 ,;Cr'\C foreign C"IlSUOlCrs by rcdcplo) in!! a.r.:til't I,m:ign camings 1l1ll01lg fil~lgn 

~flilialcs, 

The NFTC suppons ext~nsi(m of the pro, ision Ihnt aflords th" genera l rule of dcfc",~llo Ihe 

a";yc b\Jsill~'SI; ineome ofU.$, fill~nd~1 ~rvkc~ companies. The provision .. rcfcm:d to 3;; the 

aeHYC financing e~rxptilln-- IS essential to til<:' ability of U.S, fillancial SCrv'Ces eornpm'i~'S 10 

COOlf'\'IC in gklbal maoi:.clS. II al.,"" plays an important role in \Jpponing U.s, C"pOMS. The ability 

of U.S, manufacturers 10 pmv,dc com(X1ili\'e financing lor custorn~'TS has a dircrt and \lOs;ti' C 

inlp!ct DI1 U.S. expon, anJ 1113nufacturin gjobll. 

A"-o"",,_ """" ...... ""N_I. C-J"'l' 

--~ 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.771

Cnlldusioll 

Thc t>.:I'TC uPI>OlU ",fQml;lIg 1m, lax cod~ 1(1 "nl>I'Q"C lh~ coml"'liliwlI~ss oflhe U.S. em'K)It!y 

and in<;n;asejQbs and "ages of American workers. While perm31li:n1 re form i. essr:mial.;t '''ill 

take time , In the short tenn. ;1;§ erilicalthat Cungress enacts a St'3mles~ e.~trn5ion orth( 

busi'lCSS lllX prov;s,ulIl!tal expired at lhe-end Qf 2Ql L 

Vie~ Prt'5ident far Tax Pol;':y 

."""'<1'>0 (;J<Jb.tJ eo.

-,,~ 

~ .... <'O "'" ~_" • ~ 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.772

._~::a UI'!!!'" 

---

Statement 

of the 

National Grocers Association 

Submitted to 

Tnl! House Ways .. nd Ml!ans Committee 

Subcommittee on Select Revenue Measures 

0, 

Certain Expiring Tax Measures 

By 

Peter larkin, President & CEO 

May 3, 2012 

rh~ Nat;D~.1 Gmc.,,, As,ocl~tlan IN.G.A.) wi.he,!O !!lIpr .. " its appreciatiolllo SylH:ommin,,~ Chairman 

Tiberi and members for holding the heanng on April 26, lOll on Certain Expiring h. Mea,ure. and for 

affording N.GA the oppcrtunilV ill.ubmi, thi •• totemen! lor th~ hearing recard. 

N.G.A.;, the tion.1 I.ade .,soci.lion .epre.enting the ,etaU.nd whole.ale Broce .. that comp,; ... me 

Independem .eclor "fthe food di'tributOon indu.try. An indept!ndenl ,etalle' is,. privately owned or 

controlled food retail companY operating. ".,iely of formats, Most independent operator~ are ~rviced 

by wholesal~ distti""!ors, wnlle olne.s roay be partiallv 0' fully <e lf,dlstributing. Some"',, publlclV 

traded but will> controlling .ha,e. held by Ihe famllv and olhe .. a,e employee owned. Independent. a,e 

the true "entrep"",eu,," of li>e groce,y lnduno-y and dedicaled 10 Ihei. <\I<lo,oe". a.soria,,,-,, and 

communllie •. N.GoA. membe .. include ."I,,;! and wholMale g,oc"r<. <lale groce" a~.O(Oialiol\'i , as well", 

manufactu,e .. and 'eNlce supplier<. Fa. mo.e ;nfo.maHot> aboul N.G,A. and Ihe ;ndel"'ndenl <eCIO. of 

Ihe Indu"ry, we Ihe N_G.A. webslle: www.NationaIG.ocer<.org. 

Overview. 

On January 6, ]011 the Cong.e .. ional JoinlCommittee on Tau!ion published a long Ii" 01 60 lederal t •• 

p.",,;,;on, Iha! e.p;red al the e<>d of 2011 and anolh", 431hal will ~.plr e allhe end of lOll. It I, well 

known Ih.l in ,ecent yea .. Ihe unce,",i ntv of au' tn law. ha. c,eated " major iml"'diment for 

;nnependem . e ta il groce .. , whole""I"" nd otne. bu.in" .. '" to pl.n for tn" fulure, even mO.e >0 for 

f.milv owned bu.ine.se. when lteome. to t~le taxe •. N.G.A.', r~t,,11 and whole""l~ ,groce.s a re 

growinll mo,e and mare concerned aboulthe inabilOtv 10 make undamenl~1 bu.in ..... nd ,ucce •• ion 

deci,ion. beuu,e of the numerous .hort tt rm change. Congress make'lo the Ux code a nd then 13il, to 

timetv extend the e.pj';"K provision" In mday', ecollOmk envi.onmem many busine» owner1 are 

relr.ining from inve,tlng In . new 51 ore o. remodel bec.lU.., of the expired 2011 provision., ~nd thus 

curtailinR employme nt oppOrtunille •. The m3Knitude of the dilemma for Independent reI ail and 

l 006NorthGIebe R08d'250. Ariinglon,VA 22201-61511 . (103)51&0700 . FAA: (703) 51&0115 

WabSita: ~1tp;/Iwww.NBtlorIalGr<>Cefll . ...lI 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.773

whole.ale s'~ s will be eve~ more ,ignlfle"n! if Congr." doe. no! act before Drcembrr 31, 2012, In 

Ihe Ions", lerm N.G.A. beli~, Ihat a~ refo,m mu.! be !>iIlanced, fair and <'quitable. Rrform of the ta~ 

code is compluand must be urefuliY studied be fore "n~ reform cl"'ntes ,,'e adopted. 

Extension of Pro.Growth Tn Provl,lons. 

Co.1 Recovery ~nd Inv¥itmem Incenlive •. Al Ih" end of 2011 • numbe,of pro·growth t~. provi.ions 

expired including Ihe Wo,k Opportunilv Tilx CredillWOTq IS year , tralthl·1 ine cost ,«overy fa, 

Qualified leasehold imp,ovemenlS ~Includint Qualified ,etail improvements), Ihe loo7j,acceler att d 

bonus depreciation, the increased e~pen5ing of up to $500,000 in eqUipment, and .e-authorization 01 

New Ma rket h. Credit •. These orovislonslhal were 1I,led In Ihe Subcommittee's list 01 e.pt'ing 

meilSure, have been, In man ~ <a\.eO, the only 'easons independent retail B'e<:eff or ..... hole."lers have 

been able to expand their buslne,.e. or hire new workers. 

H,G,A. membe .. fnl Strongly Ihal ~oPrOPr .lr ta. pelieie •• hould promole economic growlh and job., 

,uch~' the accelefilted dep,edalion inc"nlive, thai p'omote inveSCmenlln "Quipmenl and bu,ineu 

e~P3nsion. The ~\Jlti"8 economic g,owlh will not onlycrnte lOb. within relall .. nd whole ... le gre<:e"l 

companies, btlt also in Ihe commUnitie s tMev serve and the manUfaeHlrini, constructlon"nd supply 

'"dunrie>. 

In Octobe, 2011 the N.G.A. Ta. Committee reviewed the imoo"ance of th ..... provi,iom to Ihel' 

busine" Browlh and in creatins jOt>.. The consensus wa~ the tOO'llo percent ac[ele"'led bonus 

depmeiaUon, ~Iont wllh Ihe increa,ed ".pen.ing of up to $500,000 In eQUipment, the 15 vear ",aight· 

line co51 r«over; forQu~Hr",d le.",hold improvemen" ~nd New Market Ta. Credits, we.e the ke~ 

e"ential elemen" in f"'tering th"irpla", for inVenm"nl. and ultimatelv in thetrc."atlon of new )<lb, in 

recent vear~_ 

Ret.lle" and whol"salers ,eportw durin, thIs "co nomIc ,,,ce,,lon thai beeau ... Cledit ha' ~n so IIBIU, 

er none.i"~nl, th" 100" accelerated bonus depreelation wa.the key r"source that made projects 

[indnclally fe.,.ible . The increased e~pellSing lor equipmen t was all important inC1!ntlV<! fO'l'quipme/lt 

pUfeha,e, and uP8rades. In 'a" .• ,eport p,epared by E,n't and Young fo, th e S Corporation ~.e<:jation 

""titled "The Flow-T hrough Bu.ine .. Sector and Tax Reform" llIu"rates thallhe combln .. lon of 

accelefilted dep.eciation af)d Section 179 e~p"n"ng rank at Ihe lOp of I.rge'l bu;ln"" tao ""pen~it~'~' 

Is beneficial to bolh C co.poratioru and FIr;>W.lhrouth entilles. such as Subt~apter S corpo,ations and 

llCs. f,om 2010 Ih'oug~ 2014_ln addltlon. Ihe 15 yea' t,at8ht.lln~ coS! tl!covef'/ fo' QualIfied leasehold 

m~,,,,,ements. inclu~in t retalllmprovements, has Ions been reco,nl,ed as ImportMI to ',",all t '<>eel< 

~ue «, the fact lhatlhe ~'Io, 39 vea, life was 100 long and doe, not ,eflect the economic ' ealitle, of co,l 

recovery. 

rhe New Markets fax Credin.serve to offe' relaners erltrea l aCCeSS 10 cap;Ial, The New Marl<els la~ 

C'edit INMTC). aUlhortled In theCommunllV Renewal Ta. Relief Act of 1000. wa, desitn" d 10 stlmulate 

f"""nment a~d "",onomic growth In 1r;>W-lnc.ome eommunitie, thal ar 1r.ditlonall~ overlookw by 

conventional capital mar~eto. "TI\" NMTCprogram a1\'3c15 capital to low income communitT~, by 

pr<>~lding prlVall! Inve.tors with a39 penenl fed ralla~ ufdil for inve>lments made if) business", or 

eConomic de~ lopment projeets 1e<:.led in some of the mOlt distre,led communIties I" Ihe na!ion1005 North Glebe Road t250 • ArlingIOO. VA 22201·5158 • (703) 516-0100 • FAX: (1'03) 51&-0115 

Weblllte: hllp;/Mww.NationalGroce'S.org 
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cen.u, tract. where the ndi~ldu l povelly rate i. at lu" 20 percent or wh~re median lamily income 

doe , not exceed 80 pe rc ent cf the .rea med i.n. 

Employment Ince ntive.I·Work Opportunity Tu Credit. 

Since Pre,ident Augan', Economic A!M:overy Tax Act of 1981 was enacled. ConBress h .. s provided 

priVate , ector employer, a wo,k oppOrtunity tax credit (WOTqa, a fjfl.ncli1 l lf)centlw to hire wo,~ ers 

f,om u'geled groups 01 ,he Chronically une/1lploved. Thi. ha. eMbl~ rtUTI grocers. wholesalers <If'd 

CIne. emplo~., '0 prmr1dejob opportunities. many for the fir<! time. 10 Ihe poor, veteran., at-risk 

youth. and Ihe dl<ab led. TM WOTCha, be~n p.oven by s<>w.ral F .. d .. ral and Slale ""aluallon. 10 be an 

ellectlYe 1001 lor pladns h'rd"o-hlre worbrs into producti" .. , proville-. ector job,. 

In lOll, over 1.1 milHon wor~ .... lound job. Ihrough WOTC, al an ilve ge coS! 01 .ppro.lmalely $1,300 

b.,ed on Joint Committee en r .... tion data-all other emoloymenl co.u .re bam .. by the privilte 

employer. Thl. fogur ~ doe,n'tlnc lude any ofh.etHnR ... wins. from lower welfare , di,abillty, and 551 

payments. Congre.s allowed WOTClo ex~ire la.t yur for all but veter.n., and ~a$l ueerlence 

demannr"te. that with unemployment Mill exceeding 8 percent .. chance for a million lobs mav be lost 

to di. dvantai~d workers if ,he WOTe i. not xt ~nded thl. yea'. 

The WOTCo.lslnated from Ihe appeals of veterans, mayors wlth larSe at-risk \"Out" populations, and 

parents 01 childre n with dl~bllities who wanled their child to li.e. normalille. Employer ",cceptance of 

WOIC to d~monstr.ted by the fact that la" vear St~te Worklor", Agende. recetved 3.750,000 employer 

request. to ce rlify work .. " for WOTe and approwd 1,160,000, N.G.A. stronilly ,uppo'" the extension 

orthe WOTC a. ca lled for In Repre sentative Schod'sIR'ILI and R.ngel', ID -NY! bill, H.It. 20B2. 

Major Imporunl Priority f ax h tend .... For N.G.A.'. 'nd"pMdenl Reull Grocers .nd Whole.alers. 

The Subcommin .. e'. lin of Ce'Goin uplrlns f a. Measure, 100 1h .. hearins did nOllndude Iwo major 

current tax p"",i.ionSlhal are 01 crue,al imperlanc .. to retail and who le ... le grace .. and explre ilt the 

end of lOn, the CUrt""t Indivfdualta. rate, and the estat .. t •• e •. A. Cons.e" con,ide " th .. .., 

measure. it i •• 1'0 important that the y be xt .. nded. 

h t end ndi~l dualTax Rate •. 

On December n, 2012 the In lvid u~ 1 ta ~ ~Ie reduction. or 2001 and 2003 ",III expire and individual. 

will fac e 3vera8e ,are inc",a,es 01 J to 4". for bu,in"" enlrepreneu .. that opera t. Subc~apter S, llC's, 

and othe r PoOlS-through entilie., these rale increa<e' would ~d"er<ely affect the financial resource. that 

are re aln~ for operatlnl capital, bu.i"" .. upan,ien . nd job •. N.G.A:s 2011 Inde pendent GrCKe .. 

financial Survey reporle<! that SI " percent were S-Corporation., 18" LLu, and l~ CCorporation •. 

According to the £rnSl & YounS reporl lor h~ S Corporation A .. odation, approxima tely 1.8 million flow· 

threugh entitle. In 2D08 we re In the retail and wholesale Ir.d .. compar .. d 10 jun 4lS,OOOC corporation •. 

MeanWhile, flew-through entltie. wllh UlO or more employee. ~mplove<! 20 million emplovees, 

. uggestin. that large lIow-t!>rough buslnesse. are a "gnlflca(lt source or employme~t. The repo" 

observed an Impo"ant findIng that. "The concern ove, hfgher lndlvldual ta~ rales has, In part, been the 

\005 North GII!b& Roadolf250 • Ar1ing1on,VA 22201-5758 . (703)516-{17oo . fA.X;(703)516-(l115 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.775

,esult of th" Ian that th .. flow-th,oUlh ... cto, plays ~n ;m~n nt ,ole In the U. S. economy and the 

,ecollnltlon that hill her ta. ,ates 0" Ihes" li'ms' owne .. may ,esuilin Ie .. hi, In, and capltallnvenm"nt 

with the flow-Ihrough .... no'.· 

The IndMduall"come la~ ral .... hould b,. e><tended for the fo,eseub le lutu,,,, suc/o ilS th,ough 2014, so 

(ong'"'' can pursu" tax ,,,Io,m In . fal' ;.nd "QUit3bl" lashion and w"igh Ihe COnce'ns o/ both flowth,ough eMiti .. s ,md (co,por.tioM in ""al"ating comp,ehen''''e t~x 'elo'm. Th e .o-olled Mllllo'n.r,e'. 

",na. on Incomeove, S250,OOO and the "Buffet rul,,- should be "'Jeeted t...cau"", oflhe ild ~e" e effecIs 

on Main SIr"el community buslness".lik," ,,,tail iroe .. ". 

[)ctend EsUle Tu Provisions. 

N,G.A .• uppons full repeal 01 Ih" estale l:ax, howe~e" the cu"e~t economic en~I'On'l' .. nt may preclude 

repul. In th t absence of ,epeal, N.G.A. l:alls On Con&",u to provide meaningful ,elief by making 

pe,manept the cunent Inll.tlon adjuSle-c1 exemption of $S million per indMduallSlO ",lIllon pe, married 

(Ouple wllh portabnily olanylndl"'du.I',; unused ~rtio" to Ihe su,vlvlng spouse~30d the maximum lax 

rale of J5"_ 

B"cau ... t~e ~stal" tax falls on a,,~IS, it r .. duc". inc"ntl~ .. s to n.e and invest and, ulumately, hampers 

8rowl~ of pdvately held ;~d family cwn{,d busin~sses. Th~ estale ta. fs espKially burdensome to 

I~ ily..,wn .. d ,etail ,r""ers and w~o le ... lers. Well over half of Ihe ."elS of a IvpiCilI.upefm3' -lhe 

hlghestol any other InduUry seClor-ari' ~ot Iiquld,!.O the dealh of an Owner c,eates a serious obstacle 

10 eo~t,nuatlon of Ih .. busIness. Because I~e enale lax Is nsessed Ort the value of I bu.i~ess at Ihe 

owner'. death, it ofteJ1 forces families to bo'I'OW lunds to pay Ih .. law.. M 3 ,\!Suit it ' eduees Ihe ability 

to In""st and hampers growlh olthe b"sln .. ,SS, O. forces tJ>e Hie oft~e busIness. 

(oroclu.lon. 

(oOllfes. Should lmfllediatelyi"clude thE' abOve prOV'S10~' In' cO'llprefle".,ve Ulender$ biQ and qu;eltlv 

~ass!t. Iu i~creases and "nce/1.lnly a'~' nOI the anSWe, 10 'eSloring economic g'owl~ . (O<'l8,eS5 

should act now III provide American busl"esses with long term stabilitv and cena,nty within th" lao 

code, on pan, by making permanent the t:Uffenllnd,vldua l rales and cUffenlestate tax ,ales and 

exemption. N.G.A., .,",,0 urge. (ongre"I'" e.lend, Ihrough l014, Ihe Work Opponunity Tao Qed1l 

IWQTCI. the IS vear ",aight·lfne cost ft'<:ove"l for qualified leaseMld Imp,oveme"'sl,ncludinS qualified 

re l811 1mprovemenl5~, Ihe l~ .tce er~'ted b<lnus depreel'lIion. the '''cfeased expensIng of up 10 

SSOO,OOOln equipment, and re·authorl'Mlo" 01 New Market Ta. C'edll$_ 

1<105 North G~ Rood t250 • ArIin,; oo, V!I 22201·5158 • (703) 51fH1100 • FAA; {103~ 51(HI115 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.777

On .h. 5.no'p sld • .• h. Am .. ,lcon En.' IY .",1 lob P,omo.lon Ac'.~. 2101, .pon.a, .. d bv n •• o,t:huck 

Gr~nley~R IA), s 8 ~O·~J>Onsor~, both P~mo,,~ts ~nd Rep~bll<~ni. r£pr~sen lns ton~titUenti~~ from 

~,on 10 (olorado, from Nev~da to Mal<.1ch"oett •. 

E~ten.ion ot the renewable energy Intenli~es hu bro d bipartisan support)n (ongren, ~~sisa the 

Industries seeking to incruse the nation's new~ble energy p,oou<tion, ~nd pro"ide s the necessary 

certa inlV 10 Iinantr proje<t! - pa(tiWla ~ larse, capilal-inlenst.e hvdroPOwer project! that mllst 

vlgate long IlcensinB processes. 

Of the renewable technologies. hVllropowe r has one of ,he longesl development tlmefrJmes due. In 

pa rt, to the extensive multi·yearlederll and 5I3te licensing process.' In addltlon, these proleds incur 

signifit.:lnt up·lront cosu, 

(uffently, the hydropower PT(', .. " to expire in 20B. How,"""" develoPt'f< and othe , ,ndustry 

parOclpanlS report Ihat a sharp slowdown In pursuil of projectdevetopment has already taken place. 

Due 10 Ihe 10"11. tt eli e lor regu lalo,,! .ppro~.I, combined with Ih~ ad ilion.lllm~ n~ed lor actu,,1 

(OMIiUclion. 10' m.ny nydropower p,oje<t~ Ihe PTe ha, already effec .. v~lv expired. 

Wllhout the long·term certalntv and 'rd ctibilily orovided by consistent lederll support oolicles. 

de~elopers re unable 10 anraCl ll\e financing needed 10 support Ihls considerable InveSlment and 

ulilities will be driven by de/ault 10 other re:KlUf<es wilh shoner developmenl limeline •. such.s wind 

and naluril KIIS, resulting In ~ le~s diverse eleClf<tl1y ge nerJUon mix. 

As demonltral ed below, failure 10 extend the lrxen1Nes. in~ludlng Ihe hydropoWer PTC, will 

effectiVely bring the.e projecl'lo II halt .nd undermine Ihe prosre .. the hydropower Industry h., made 

in recent yurs. 

ThrQUllhout Ihe 1990s and 1~, Ihe hydropower indust", uperlerxed ~ period of minim~1 grOWlh. 

Th is changed dr/lmatk"lIy with the lnciu,lpn 01 hydropower l",""noloBies unde, the production ta~ 

«edll (PTC! and dean renewable enersy bond. prp8ram (CREBsl in 2005, and olher ;ncent,,,es, ouch"o 

the inve>1menltax ~red1t ~ITC) lind S~I1Qn lW3 prQsrllm, In 2009. 

From Ihe enaclmenl 01 Ihe [ne,aY Policy Act 012005 through O.<:embe, 2011, ffRC h~o (eflilied 85 

hvdrOP9wer projecn 10 U nale i for th ~ PTCo' The ie proj~I" involving c~PllciW /ldditlons ind 

Yor~. NO)fth rDl North O~l".ot~, Ohio. OtlahQrn,. Or.RQR. Peoo;yl.,nI2. ~h~ I' '''nd. !.Qulh kDI ~. Texa •. 

lIe''''Ont, IIl<lln!.o, ~,kln~ lOn, n~WiKOn.ln . 

• Th~ l"teS' .. ~ lK.n,inJ proce .. ~llPI, ' he del.ul, "'d er~1 proc.s, lor hydrOjK>We. develop ..... n' ~'" S·S.~ ".,." 

Whll~ f[ftC.1s tne lead al~, Ih~ prOKes. con .1", InOfQl ve le""'.1 hyd'QPt>w", proJe<:1 DW~." .... c~ u the Bur •• u 

pI RKlam'lion Ind Ihe Army Co,p, 01 £f\I.nee .. , fed.r31 ",,,,,,reo ason<les, stale r'SD"rc~ 3,encl<'<, trib,"", .'ld 

int.r." e<I .lIIk.hoid ... and ,Iw pUb lit. This .ompl ... compr.he".I"" pro""",I. In"n"." mul'i-\av.red "nd un 

13~~ up IQ 16 " ' 00 •• outl 'n~ .1: ntle:ll'~f<·~I"O!!!!!!.~"ll'!!!;l "'oj.!!!=en olnll itU!I",!,<!>JI",@I:. 
834 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.778

lecnMlog~ o •• Ificlenev Imp.ovements al exiS1l~g nVdropowel facilities, n3\1e resulted I~ an avera,e 

i",rei.e in , e ner.,lon 01 dp,;~ tg 11 p~.u~nl Ig r . 10HII gen~r~lign in~rei~ 0197 1,798 meg~w.1I hours. 

Th iS is enough energy Ie power 84.533 hemes.' 

!j.I'..l!!S!I!!!Wl'f Pfo[ect-s~ec!fl lxamples 01 [be Need Igr Extension 

One NIIA m. mber company tnat has a portfolio of 450 MW of propo..,d project. (all new I.eilill •• On 

e"sting dam.) r~POn'lhat Ine PH:and the fTChav~ b,ouKht much mme capital inv ... tmenl into the 

hydropower market Ih.n in Ihe O~S1. The,r projects are projected 10 rece ive FERC Iken.e. between 2013 

and 201S. Onc~ Ihe Iken'" is i.wed. Ihev will then proceed \0 con",uction financing. The nc nliv~. 

helD malee tne hyd,oocwer o'''lee'' economlcallv comoet'l;v" to othe, reflewable ene'I Y '.cllille •. 

For thi.company, e lectlem 01 tne PTC or the ITC proville. impon·;"'t Yalue. HoweYer. for Iheir portfolio, 

~n JTC Ulern;ign provide<; the Brnte.1 v~lue_ The company reports Ih~1 ~n exlension 01 Ihe ITC would 

allow Ihem 10 move forwa rd on 83 perc@nloflneMWslnthei'POrtfolio.Withno fTC t~ttn 5;on, Ihey 

eslim,lle only lJ llef(enl will be b~il1. 

If the PTe fs u tendell, but no pa,ity gj~en (hVdropower currently e~elves only one -half PTCtredll), h~y 

estimate 26 pef(e-I11 mlneir projects will move forwarll. jf PTe I. utended wilh parity ~n, Ihe number 

incr.~5esto 45-50 per<efll. They al.o saki thai the 30 pef(entlTC b ~ v.lue of about 26 perce"t ollOlil 

proieCI COSl<, while the PTe provide. a v. lueof onlv 7.5 percen t (15 percenl wilh parity). 

Anothe. ~mb~, oompanv ha,. propo'~d POlllolio that lnc!udu a lotal of 10 projects 10laling l SO MW 

thai ellner haye HIIC licenses and/or are pend in, FfRC ISluance of al1<en,e_ The <ompany reports l 01 

these will get buill on the basil of QUil,ficalion 10' Ihe Section 1603 casn granl: hDWt!vt!r. il i, unlikelv 

Ihal most of Ihe othe, projects will get buill unll>$' 1M plaeed.!n"l'lVIc@date.forthe incentive' ~re. 

e)ltenlled. 

The multi-vear Ii.en,ini limellne, followed by an addllional 1-2 yeo" 10 lei eorp of £nginee" or Bureau 

of Reclamalion "gn-off and approval (the p,ojecli w,11 be ',I"all'd on e""'nl feriel3llnf •• "ruClurej,. 

rep,e, entativt! ollhe additional .i.k. that n«w hydro projec~ on existing non-powerell dam. lace Irom 

a financin, pe"pect'~. 

Addilion3l1y, "'hilI' Ihe projeclSue granled up loa SO-yedf IIcen.e and ha\le SO-Ioo-vear Ijfet me~ they 

muSI be fln~n,ed ~nd Ihe clebl ~mortllecl O'-e . ~ 20 ~ur period, If deyeloped by i priV~l e tomp~nv. 

Once the projects ~re online Ihev become Ihe leoS! cOSllv ~u"e 01 enerlV over the IIle 01 the projeu_ 

This IS be~ause once tl'M! debt "nd the inlU.t COSIi ii'e amQrtilell; Ihe projects will conlinue &ener~tin& 

for ~nOlher 30-60. years and wilh much lower O&M COSIS. 

LastiV. another NHA member comp~ny is currentlv deW'lopingH projects in IS stote., wilh 12 project. 

presentlv in Ihe HRC hydropower licen,inll process. Nearly all olthe projects a,e k>cated~lexi"in8 

Army Corplll! £n~ nee,,' daml. The ~omp~ny hold.prelimi n~ry P\!rmi~ fl>< the deveiopmenl 01 400 

MW of MW hyd ropower c~p3city. equivalent 10 Ihe eneril'l p,oduction Irom approximately 1400 MW of 

solar p.,.....-ero, 930 MW of wind pow"!". r~e eurre~1 projects wilt provide enough a rlnual power for 

• TI", ZZ ,,,,~, .. ,,"'" hy.J,0I">W~' "' .. """ I""e "'<~\""~ .TC c. '''" IA>o , . ,. .... , ...... ".'. c..~ "' .' ... G""'~ • • 

Ida ho, Ind l.n •. k.n .... M.ino, "".",land, M .... ,hu ... ru.. MI<hil'~' Me>rtt.n., N.", tlamps~ ••. N ...... Y"'~. Nonh 

Corollna. O"'IOn. Penn<Ylvanl., SoUt" Corollna. Vermont. Vlrri~I •. W.,hinllon. Wen Vlrslni. and WI,<o~.ln. 

, See n'lpj ~. .,J!"~l '9"t'!l!!QVI~Q fm?io;!!97~"'llor (IA 0." on ~ve'~le rnillonti.1 onnu. 1 el.ctrlCltV 

consumPlion lor 2010 (updated Ot!c.mbe, 2011). 
835 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.779

appn>"lm.r~~ 200.000 homeu"d annually .""Id l.7 blln"" poU1ld$ 0' c:lrt>on ~''''on. Th~ compa"" 

upecto to <r .. le 140 job. Ptl ",oleCt during denlopm""t. 

rh~v ~I.o report ~ttl>e~ h.ye . ece,ved prelimlna,.,. FERC pt.mi15 Ie' 11 new .ite.lollilioB 140 MW. 

1M comp."V 51a es thatt~ev will net be,in '0 d~el<>p Ihe .... lIe. "nlilll>e PTe I. e~I~~ded . ndare now 

on ~ n'O",nll ferw •• d en ~cen. ns 1 ef the U o",v,ou.l~ men,iOtled ".olecl. until the.e Ii .e.olullo" te 

Ihe Pte i"""-

The~ ,eport Ihallhe PTe i. ~alu e and will help en'Ure MW dev.lopment beta" ... il clo .... lhe gap 

between th e price 01" new hv<!.o planl a, an •• [.Ung dam and ,he price '0 bu,k! new,", flred pia"", 

which i.lh. d. f.c'o b .... lin. lor Ullliti,.. in PP ... nt,otialion •. 

The COmpany ,tale. ,h., , PTe '~Iefiji"" (" the full credit "'Ie) would undoubtedly unle<:k neW hydro 

g.owth and the~ would move forward very 'U •• ,,]vely on "jrtu .lI ~ HI I ofillel, propo,.d projaeu. 

E".",ion ol,he<urrt nl PTe 10' h~drOpOwtr (ill h;.lf tr~d il ) ililo htlp., I~O~i~ no'~' ",u<h •• iI lUll 

credlloul e",i"" 

ydr0i>"w~' i. tne ,ounlry', I,,-,ge" r~ntw"blt .leW-kjly provider. &eneraUM app,o~lm3 oo1v 8 Pf'rc~nt 

ollOlal e leclrlcity In ,he Un1!ed Sla,,,. in 20ll.' n". ,~p.e"""l •• lmOS! two·,hi.d. 01 U,S. r • ...,wable 

t leCl,icl,v BO"on,ien. 

'IliA beli.ves trem~ndou. opponuni r~. ~)(Ist to funh., In<rea,e deployment 01 hVd.opoWer ,e<ourc", 

'0 r~alil . our ~,",,,. I clean Me'8y,job crullorI, and e"v'.""m~n'alloal ,. 

Howev •• , the loomi"g . ' pi'al1o" oIl"'en' ....... like Ih. hvd'CI><>wer PTe in 20U," al,e.dv eadin~ 10 ~ 

d<'Cline ln the ce.mmilmenl Ie. new projects and construction . .... the company e. amp te. ciled at>ove 

1I1,,"'ale. ,he /ulllCope III thi, pOlenl",1 w,1I onlV be re.tiled II ,h.,e I, <""Iinlled Mable policy ~"Pi>"rt 

I,,, prOi""l deplovme nt. ,ueh .... Ien,ion of Ih. ploeed·in."","," do\ •• of •• ininl rene .. obleenergy 

Ineenllvn. 

Apl n. NH ... wo~ld Ilk. totl>.nk vou lor 'he opportunitytoco",,,,.nl On \h. ne.d lor 'ontinu~d lede,.1 

I •• I>Olicv .uppert 01 renew.b ta ene'BV tech nologle.· p.'lkul.,ly hv<!.epowe. and marine a"d 

hvd.oklnelic (MHK)· .nd welpOk Iorw.rd '0 ...... '08 as. re,ource 10' the eommille •. 

5i"",r.IV, 

l ",da Churrh Ci<>(:cr 

E.""",ive Director 
836 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.780

NPGA ......... ""' ....... - Statement of the National Propane Gas Association (NPGAj 

Subcommittee Healing on "Certain Expiring Tax Provisions 

tApril 26, 2012) 

U.S. House of Representatives 

Ways and Means Committee, 

Subcommittee Oil Select Revenue Measures 

Submrtled by ' Mj~e Troop 

Na""'.1 P'OP""" Gas A~tion 

1899 L Street. NW, Su"e 3~ 

W"""'"gton,OC 20036 

202"'66-7200 

mlrool'@npg •. of9 

Aprol30 2012 

The N81lc ... , FfOfJaneGas AssociatIOn (filM1\)_ its mem~rs fu~Y suppa" H.R. 2014, I/Ie P"'p"ne 

G' ... n Autogas Solutions Aot 012011 T~, . bdl. introduced la. t 1"&', would e>tleJld m,,,,,, . ltern.I, •• 

'uelln elMi'- 10< 'M US/! 01 p."!"'"" "'rough 2016. 

Two 01 the III' .... proV<Sionl tn tna bIll m .... lllle deliMIoo 01 "Ia. e.letlder" lor P'JfpoH5 01 "'. nea ring 

l)eltl on Apr~ 26, 2{)t2. TI\O$e \We P<O'I"O:m' are tr.e allem,n ... fuel Cfed~ (6~~ (dj) . "d I/Ie 

8~emati.e fuel Wh,e\ft "'1 .... ,i'l9 propeny ",edit (30 q . ""'He the lIfOol.;.",s In this- bi~ app~ 10 QI11y 

p"'pane, the goal 01 the propane '''''UEtry '" parity !of plopsne wolh all allema live r"" .. in order 10 

provlde an equ~.b'" compelit",,, en~'fOf1 m...,t. Tt>e«rlo!., NPGA would f'OI Dbtec110 ttoe iJlcl~ 01 other allern8!l1ift ""'Is fiIIe n8IUrai gas wilrun H,R. W14. 

Tile Propane Green Autoga. SOOU!~. Ad. (Propane Gas Act) of 2011 or 'Propa",. Gu Ad' wouk! 

e>CleM fOt ~)'9~" the federal d"n.,;"e !u.ellll' ()ied~. "" plopanetr"'; a~ , maIO< fuel, propane .... n,des an<ll"'''Pane lu elong 'nl""'I"'''IU .... The b~1 was intradllCell II)' Repntlentalive JOM Carter. 

along with Rep' ...... ntali ...... Dan Boren a"" Mil<e Roge<~, 11 CIJ"enlly na. an addillonal2J biparl .... " 

""'1>01"01' The eCO!\OmIC anslytical ala being ,,<ted in Ih,. 'Ialem,ml .. based on a~ Ir><! pro.,,,,,,,,,, 

l<lHR 201. 

1 ....... la. '''''''01,,,,,,, we'" Otigine Hy Clealed Ie 51 ,mulale a p'''Pane veniclt! ",arlee! "' orde. 10 .ed""" 

U,S ,ell,noo on loreign oil aM reol""" "nv;ton"",n181 ~~ JUociMe<J willi gasoline.nd d~ fuel 

uu . 10 dale. !I1ue lax ",..,j,11 "".11 I>fHrn exl""oed ~Ho-~a, . C009"" " should ""I a~ 10 acl uol~ 

Ine rore<Ii\s are about to p"e I>e<:lIU$I! ma!1<et uncerl. ;rIti regarding the ",edits urn:lermll>es the 

el!/tdi.eneu Ol lhe In~nl ~ . fIII d;'oou .. ge$ the kind 01 ;ov"$Imenllhat Congress wanlS ttoe 

p" •• le !Io('C\Ot to mak" ... a lle'na ...... llII!ls 
837 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.781

_"-"'!I ""'_"''''_ '''''' _ W ....... _ ... Co ·C_E_ _ ' •• _.. _~ ·,""'M _ ::0_ ' 11 

We. believe the. Propene Gn Act otIe<$ lhe kind of Iong_Ierm policy commitmenl oece!I$ary 'e build 

essential altemative tuellnfrastruOMe ilnd bolster a b\ll'lleoning UtogiiS milr~ t ilrId witt provide iln 

Immediate retum on talrPilyer investment. Experience in lhe Industry shows thai prillale investme'nl 'S 

more likety to oocur when the. ilvil itil'bl~ty 01 long-term tilX cred~5l$ assure<!. In thi$ way the prO(lilne 

autogas industry is able to create the e<:onomles 01 ~le neCH$llry to make propane aulogas iI 

viilble and competitive altl!mlltiVe fuel. 

There ilre some unique qualities ilssoclaled with propaOll whef'l used as a mOlor '\leI that milke it 

every IllI n practic;ol and beneficlal as the mua. heralded natural gas. In some' Instances propane I, a 

better cIloice lIlan natural gas. The propane autogas vehicle target martel is commercial fleets where 

!he impact on reducing imported fuel is large. Propane autogas vehicles produce 20% le5$ 

greenhouse gils (C02) emissloos lIlan Qaso ~ angif'les. They also produce less 01icu te matlef. 

caroon monoxide. arld f'l~rogef'l oxide than gasoline 0( dies.el engines. Propane V9hicles and related 

refueling in lra~truclYre are available fIf;ffl fO( fleel use. 90th FOi'd and GM lire proouclng propane 

yehlele p~tIOi'ms. and for $25,000· $50.000 propane refueling fw litle, can ba quickly aod eas,lv 

instal led. Finaliv. propane is an American fuel. 98% of supply ~ produced domeslicaHy. Similar to 

natursl gal, pfOjlilne supply is expected to ,ncrease over the next several decades. gtl3ranteelng 

consumer availabitity and price stability. 

From an &COIlOfl\~impact slatldpoint. the lISa of propane aulogas tells II good stOl)'. According to an 

anafysi$ conducted bV lhe indepeodent analytk:al f,nn leF International, the outlook lor JIIopane 

vehodes has c!langed SUtl' liI n~ lly m lhe. lasl few years_ The increase ,n clllOe 001 po'fCl!!l. comb,ned 

with Y'owt/I in dOfTleStK:: po'opa"" 5Upp~ associated with (he grOWlh 01 sha~ g;l!l has ,educed the 

wholesale price of propane ~l abV" Ie aso~ne . and c!langes In !>,opane lleel lueling bul;lness 

praClIOOS have c!langed the relationship belween propane and gasoffne prices lor eet CUl lOnterS. As 

a reSlm. current delivered propane pr,ces a'e typically well t>eIow gasoline prt<;es for fleet IIehocies 

after adJ .... ~ng for d ifferences in 1001 eff"''''fICY_ 

Given the currerlt energy pnr.e ",,!look, PfOjla"" prices ara ._peeted to remain well below gasoline 

prioes for Iha foreseeable Mure In addition. lederal government lax policies have promoted tne 

development oj naw pfOjlane vehicles by olleftng slgnJrocant tu credits lor new vehicles aod refueling 

,n""s!ludu'e, as well as exCISe tax credits on fuel. These incem"'es have encoutaged development 

of a numbe, 01 new p'opa"" vehicles that have rtlcenUy 'eached ttle ma,kat, or ar. axpeded to reach 

the market in the next two yea,s. However. the new veh ocle tax credir expored at the end of :WIO. and 

the infrastruC1Ure and fuel aKcose IiI)(Cledit ,upired on December 3\ , 20 \ I Propane vehicle sales 1",11 

•• paod relati'lely slowly In the aosence of the- tn cred~ proposed in H.R. 20\4 or other Incentives. 

How_'. H R. 20\4 would hilytI' significant Impact on lila numberol p'opane vehicles sold. leading 

III luostantlal economTc. energy s.ecuriT\l. ano envTronmental benelils atlinla or no fte! cost to 

taxpayen; 

More spIlcifically. H.R. 2014 will also provide s,gnifk:an! benefits to the. U.S_ economv The gro'N!M in 

the propane vehicle sale!! and use created by the tax credits will generale an inc:oease in economic 

iv~ thaI peaks between S4 billion alld $5.7 billion per year in 201S. and totals between $20 
838 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.782

~P'GA_ "''''_"_. ~-""'''''''' '' .... T .. _'I_'','''>1 --... -~-"" ---

bill"," 10M $29 binion 0,",' Ie... len yea! _k><! 110m 2012 """"9" 2021 n ..... owtIlln economl<: 

activity Cf .... te<I by lile tax CfedilS w~ create between 30,000 and 42,000 nel roew jobs by 2016, 

IncJudma belweetl 14,000.nd 19,000 '''" d~eclry ,.,laled 10 ~e prod""lioo. ""e, d u.jl"a\oon of 

propene venicle&, propene ,efuel,ng laC'lilies, end ~ane ~'OOllCli(ln aM dP$ltii>uho<1 . aM llelW"n 

16,000.M 23,000 indi<ed and IMuced ~ in oilier industries e<eated by the incre~ ... In demand fa. Ie"',,:," by thelnduslries d~",,'ry BIIeclO<l, 8S well as the 'mPBcl '" reduce<! e>p&rld 'IY'n "" ,,,,,Ion 

deo,,.M 10' othe< plooucts Ih'tt' the toen Y'" pejiod 110m. 2012 II) 2021 , tile 0051 01 In. PlOpoaed tao 

credilS to the fede,al 9O~emment will be more Ihan 011 .... , by oncreased 19> .even""s 811he ''''''',ai, 

siale aM loc.aIievel 

H.R. 2014 w~ """lOve U.S. _tgy security by~a_,"9 sale, ofdomes1i<:a lly produced propane 

and ,ed<K:'ng .e""nee "" o~ and petrole um lmpons H.R. 2014 "...;t11nctease consumplion of 

domesllca lly pIOduced plopar>e betw.en 579 an<! 759 mliMon gallons of !>fops"e J;>O!' yea. by 2016. 

with . cumulative ioco'elne between • . 8 an<! 5,5 b<llion g.'Ion, bttween 2012 an<! 2021. The inctuse 10 propa .... U5e 1 ,0<1""" CO"SUmpbCln of conventional fuel. by Ihe equivalent be!We1!f1 460 end 5SJ 

mllJion gall""s ofga...,~r>e J>l'r year by 2016, wrt!1a cumulative reduction 01 3.5 10 . 9 b~ ga lo~ 01 

gasoline eQuivalent between 201 2 and 2021 The 1>I<W "'ion~., H.R, 201 4 "';H rflduce crude coil ~od 

pe"oII!um product ""port ~ between I I and IS million barre'S per year by 2018. and _en 83 end 

111 mil"'" barrels <we. lhe pe1'iod from 2012 through 2021 The increa,e in PfOPane COI1sump1icn 

and COf,,,,,ponding 'saucl1On in !l oolin~ con.umplion w,n dirBCtty '''''UCII aonual "",bon d.,oide 

emlls""" betwe<!n ~ 2 10 6_0 mollion tono pe, year by 2016, and bell'lI."n 31 ana 43 m~hon mellle 

toM ovt!f the ~!rom 2012 to 2021. 

In ..,mmaly. NPGA and lroe plOpa11fl MU.t,y 5"""9tv """""8 the PropAne GAS Adoff."._ 

"""",ticM aM pr"'ale In .... stors lile ~'"" 01 -I errn lillt inOMbve. neces.oaly to .".idify propane 

.ulogn as _ .iable and competitive altoe'''''lrve ""nsp(>r1.iluon fUel, The P'opa11fl GAS Act otfe<s Ihe 

J(lng·lerm policy CO<11ntilment neee.nry 10 ertCoon~!le prjlrale lMveslment. build essenl181 altemal"''' 

lutl "'fJ'lls\rudu'8. and bolS1e, . burgeonifl\j autoga\ m8r1<el that wi/! PloYide an immediate retum on 

laxpaye, ,nvestmenL 

The Propane GAS AI:l.~ po.JlS 1nceIltiV6 d"edly into lhe pockets of Ille U.S, bu",,,,,,s I~ 

ma~",g the ,wr!ch Ie 8n I\me,ocan-ma<li! a~",nal .. e (""I PllIet""" afld wit" I,an.parent ""'Icy benefots. 

P,apaM' aUloon pmvi<1es one 01 In", faS\e$\ 'elu,nl on ""HimI!f11 01 any dorn""I;C alternaave 

vehicle 1",,1, AUtogas vehicltls a,e the only ooooomicaHy lea.iblo! light, and mediunw!uty AfVs Ihal 

can be deploy"" on a ID'g" seale and achie ..... comparable performance to g3'll0~n11 veh1clfls. nnally. 

gatorl". and d,esel ~ne , mat1(e~ace monOpOly It is lime Introduce compet (Ir1; 10 gaS(Ij,ne and 

d;MeI .• uch a, !,rOPaM airtogas: "'~_,se we ;~ conlin"" 10 be dep81'ldenl on fo'eign oil, 

We encourage Cong ,eos to e~""'" I!1e .,lern ...... e fuel te~ rtdrt prtIV'SiOf11, III H_R 201~ and l/lUi 

enable propane 10 achieve its fU~ ~len~al n an po<1a~t a nd \r.IlUabia contnbUtor 10 Amerfca' , 

rul",. e Jle'YY !>OI1cy 

NI'GA b tl .... , ..... , , ..... . """ .. , ... <>1'111<(1<,,.. .. .s->, ...... Olf) ... b . ...... """'ip"",,,.,..':"'.','. 3.l Oll""",,,. ___ 

1 ..... .J~.rr;' .. I«I_ ..... _ L. __ ... ""..,......,.~ ........ '" [ •• n S<l ....... A'"","p< ,,,..[OJ!)t r.r<'>' """~ 01 NP<l1l '" __ ;., ",,,a ,,,.,\,,,,,,,, ,f ~ "", ... """""'''''ip """o<Icf """"'"' ""~~ ,_, ..... -.1 ~ .. """'1<... •• ~.II .. ",,"",lo<_ . _Oil ,,"'Ii"""'" of ... ""......, <QW '_. _ ........ ...., • ..",iM;.-... M,"", ,h,. ~I 

.. Hlion_U. __ ' .. II>r."..._ ... " ........ "' ...... '''''''. , .. _ ",,'''''' . ....... '''''''' ..... ............ 

p<" ....... ...r .. O\ ;n ... , of _ ,,., ........ ;;,.~ ol..' r", " .. _·",.t t.<o, .,, ~ .... "- "' '" '" """,.,-. ;. """' ..... 1 

rru<C-"'; ...... 1 .. . , ..... ,..,.."i, • ..,~"... r"" ,;o,.m ... ~ ,, ~.,"'.~"" ..... ' ........ , 'in u"," 
839 

Statement of National Resources Defense Council 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.783

TIw H"nornblo oa,.. Camp 

Ch~i, 

Com,niltee,m w.), •• oo Meuns 

U.S, Ho~ ofR~pre.e~\ati"e. 

W."hlll.gton. D.C. ~05 15 

Th~ tlonOl"llblc P., 'riMri 

Chal' 

SuDo""""ln." "" S"I~<l R.v"n"~ M""'u,~ 

('00101111<"< ()<l W.~> and Mran, 

I),S. Ho~ qrR<'pr~",mWive"l 

W."'inglO". D.C. 205 15 

May 10.2012 

The Honm"b(e S.ndor M. Levin 

Ronkin!> M.ml>t, 

COlOmillec 0., WI)" .nd M",,". 

U.S. Ho","" ofRep'e .... ntatlve.,· 

W .. h;"gwn. D.C. ~051~ 

'The 11""",ahl. "ieh.ttl e. N"e31 

R~n~inB M~"'l>t' 

);uDoonll"iU"", on Sd"", ",venue ,,"s""'~ 

(ommille' on W_)'sand M,ons 

I).S. ~ orR.~n'a'i'e$ 

W""hingll>n. D.C. 20515 

De"rCh~im,an C''''p. Chalnna" ribori. COIII'-<="'''.I1 L~"in, and C""IP"" .. "311 Neal: 

A. lOU be.!:;" ,h. p""'." or""'iewi"j? ''''' eKI.nUo!'$, W~ urge yt>" I" support uten"o" of co"ain tic!'$ of 

lhe l:oncW Effiei"nl Appli'n"~ Crtdl! (I"tcmol It",."nu" CoM S"", 45M) Ihrough lh., "nd "r 2013, Tho 

Effiti.ol Appli;u",. CNdit oohMre; 11>0 ln10111a,ion4' «JmpclP.iv ...... s (>f Am .... lta·5 ~l'PliM~ in<tus.ry. 

"",.!e-job. SOwS ""n,um<rnifflQnl.'Y nn lhcir.'""rgy hills., ~nd bener'I' OUr enviroom~n . We colle~li,·c!y 

"'pre!""l t>us:incsks .• m ••• snd .meie,,,,y and enViri.>llmenlal orgon'!.llions Iha, support l~is r'i li<a tax 

i,",c",j"~. 

lIcf~ ItS e~pi",ti(>n at the end 0(2(11], ,he Efficient ApplianeeCredit prto,ided a "ery ~flc;;!i, ~ lrn:m.i'·~ 

ril, m~n fac!i"ws.o make high·cllici~ne · d"lh~. ",alnc",. rcfrig>lnt(o", ~nd di~h"a'"""'. C"nY"" 

enotted the i"""ntil't with >1rtol11l b'l',lrti_ '''1'1'''" in :!OO5, Tho ~moUn1 Oflhe incenli,""last year ",as 

capped .1 5'25 milii"" IICr m~m,r""'u"'f .• xcep' for llw mO!>( highly dl,cicn( ",frig~r:""" Md dn.he. 

wa.Iw~, snd the cos, of ext endi nil the inc~ntlve for 2012 would be reloli"ely mOO<ll. 

The Efticlent Applianec Credil ha, b<-en on • .xc.lI~n ' drive, oflnno"""on in themanuf.clu" of high 

dficiene}, appli3nce" which enab!"" America', appliance indu.U)' to I>cncrc""I1p"tc in the growing 

worldwide mark .. fllr th.,.. p(\od"", •. 'rne induw), rc.pondcd 1" Ihe ineenli,'. by draO\3.,;""lIy in<T<'ali"g 

its prod"",io" of high ~fficie~"'y aprli."" .. ,hal ",., ,he ~m"i'n"y eri'e'fi. set by th~ ,"-~ incfl1'iw. The 

inili~lln "odil le"d5 ""'" tv"nlu.lI~ a(!<l[1\,>d hy Energy s,~, ami later b<:tame lh.· n.ow U.S, 

l}rp.nm,nt uf£nc'gy I'ffid"rll:y s,;u)darusj"intly Uppon~ by manuf ... ,tlJ'e~ and em,i.ne}, ad."".t"" 

alike, As" "' .• ult. th ... «cdi" ha"" prown "ery em·clive in ""urri"ll\ Itlng·te"", .,,",oincd ehafl!lcs in 

'he markel. C""&,,,ss b", e~tendO'<l h<: lne~mi"e th= .ime>;. l""re.sil\jl the "ring~ncy of til< Qu.lifyllljl 

crite,i. cach tillle 10 ",,",ure pro,,,o,i,," of th. g",a,e" Ic,·d of ollieiency. 

Th~ Efli,icnl Appliance C",dll i. al ... an imporla," lac()( in ,".itOl.iningjob. in Ame,i",'. ~ppliancc 

industry. According 1(> Ih. A"""n.liOll ,,["II<)fIle Appliance MQ".,r,cI"rt~ (AllAM). til., l1umboerofjol:o! 

iii Ihe Un""" Sta'e, .. lTtctc-d by II)r iocm,iv. is un Ih" scale "f 40,000, "'hieh """0""" r ... at I ... " 11.000 
840 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.784

direcl manuf.cn"ing.j"b~IM' ' ''PP''" Ihe m""ufacluring. nt'tlle "pplin"c. produe!> <o,-ered by tli<! 

incenti,'e. 

For Ihese reilro"~. Ciln~!.S: !.I,ould eXI~nd cerlain lic~ oFlli<- EtIi"iem A~pli~ne~ C''edil fO!',""(I )'drs \(\ 

refl.-cl Ihe ~o I U ageerncnl be'"een dom.'Slic manllr~~!O",rs ~nd ~n,'rgJ' emden<)' ad, ""~te. In 

panicular. ,he,ll!' two ellkicnc)'ti.,," for dishw",I",rs .nd refr;geMors Itho .. described in Sec •. 

45M(b)( I kDl and lli l a"d 45Mlb~JXEI~nd Inl "nd lOp emciene), tic, for dOlflc. wa,hers ISec. 

oI5Mlb)(!)('F)) that were in .Oixl in 101lshould be "Xle ndl'<ll~rough t"" C!"J of2013. 

An _~ r"n i"n of 0," Ef!id~nt AWH."". Cnxlill$ essentia l I" brinl!.in,l; lnno~.ti vc hlgh...,mclcn~y 

appli~"",'S ;nlO the man:ctpl~ce. The- man:r1 transformation ~thicved by Ih,s incentire prevented .Merg)' 

""''c. decrcoscd pollu.ion. cu •• nerg), bill. for Anloric"" hu",<owners and bu.l"o"", •. and sup",,".d 

dom."jcjobl aIld ""onomic g,rowth. 

Sincerely. 

Alliance In S~w E0e1i.v 

Am~ricall Cou ncil for an En<r.&l·Eflicicnl I:"ooom)' 

Assoc:imi"" of 110m" AppliM"" M.nuf.olu(Mi; 

IlSII Hom~ Aprijaoct'S CorpOr:ltion 

C"" .. ,,'aliot' Ser";",,. Group 

Ulid.""y Flrsl 

Energy FuIU~ (""litoOl> 

fin"iron",eo,,1 and linergy Siudy 1"";IUle 

Environmenl America 

I're<h f"tri:Y 

!nliitul. fo.- Mmcl Trllndonnatian 

National As"""ialion cfE""il!)" So",k. Companies 

Na'ional Associalion orSt:I '~ Cummotli.y Service. Pmgr.iln./NASCSPI 

NUlio".! ~..xia lion ofSml~ Elle.gy Oflici~ , 

NalUnll Resourtd l)ef~ns. Council 

RcsideOl1i.llinerty Service. Nerworic (RESNET) 

SicmlCI"b 

Soulh<mAliionce f.,.. Clc:1O En"'lO' 

U.S. Grun Buildin,g Couo,,1 

Whirlpool Corpo"'tion 

, 
841 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.785

Statement for the Record 

or 

Dave Koenig, Vice President, Tax and Profitability. 

National Restaurant Association 

For The Hearing On 

"Certain Expiring Tax Provisions" 

Before 

Subcommittee on Select Revenue Measures 

Committee on Ways and Means 

U.S. House of Representatives 

Thursday, Apr-il 26, 2012 

1~00 SIVUHH IHH STOll!> NW • W/l.~HI"GTO" 0(;. '00)0 J091 

Til 2n, ~I\ fi91l0 ' F"'''' }O, l~\ 14'1 • WWWRlSl/l.VRA"l 01111 
842 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.786

Chairman Tibe ri. R~ri~;ngM.mberNffiJ. and m~mbers of 1m- Iloll)/: W3y~ und Means Sel~ l 

R",'enuc I~s"....s Subeom miu~c. lhank YQ\l for the opp<lnunily lQ submil lhi~ ita l<'mcnt for the 

record on b.!half oflhe.' N3ti<mal RC~1.3urtlnl Ass,xialil)<j, We applaud lh<' Chairman. Rank;ng 

Member, and SlIbctlmmiu<'C's consideralioll urlhc5e imrcnalll ;S5Ue.,;. 

C'ummlly, Ihe I:t.~ [;lW pres;;nls taxp.1y~B w;lh a greal deal uf <'umplcxily and uliprediciabil;ly. 

Looking ~hl!"~d. t ... ~ ~furm prcs.:nts an opport unity IU pro~idc taxpayers \\'ilh ccrtainty. 

simpficity. and fi1imt'<;s, while cnt:ouraging ceullUmic growlh and jub cre~liun. Dolle properly, a 

comprehensivc and nuam·.,d rel'iew oflhe la:.: system would e)im;ll:llc those lax 1X1licies IMl 

dell'llCI from thco;e ubjeclives, whilt:- prom"ling (lms<: Ihlll ad\'ance Ihcm. 

I 10we\'Cf. in the (nlerilu. W,," urge i"''''l'dialc and l>I:a '11 1css ~lcnsiutl uf c~pin:d p ... ,wi5ions in lhc 

InierNl Rc\'Cm.J<: Code pax code'"). In panicular. "'~ slron!!ly support ~lcl1sion ur lhc IS-~ear 

dcpn:eialion schedule r~.,. kasehold imp(Q~e)llen1:;' rl"'~1"mm impruwmCl)1S and new 

construclion. ~IId re1ail improvemenls and Wt cOllllllcnd Congressnwn Gerlach aut! C'olll1reSSlllan 

Neal fur lhcir illlrodu.;tiuo lIflhe brQ.'ld ly .... ul'p<'rt~-d. bipanisan !-I.R. 1265. which would ",a ~ 

pcnnanenl this PI'O"i5;On, We a lso Strongly 511ppon the c;<tCllsion Oflhe Work Opp<lnulli!yTa:<. 

Cn:dit ("WOTe·). Additionally. we urge ~tren~!hcnin~ the d~duc!ion f", dOn:ltions of food 

i"vclltory. 

R"stwurllnu: All Ind u"r), with II Large Iml,acl Oil Our Nation's f.COUO '" )" 

The re.taur-lIlt industr), plays a si~,ifiealll role in our '1.3tion's ceo""",y. In 2012. the reStaurnnt 

induslry is cx!"'ctcd to ge nernl~ 3n eSl imated 5632 billion in .i.1(es. wilh an ow",ll economic 

impacl of more lhan Sl.1IriUion. Every dollar spent in r~s13urnnlS ¥el\l."f'SICS an addilioll~1 S2.()5 

spent in OI,r nation'~ ~o(:on()m )' . The ,,">slaumnl industry i! On/: ofth~ nation's I:u-gcil pri',llc job 

c",ators. employing appro~jmatd~ 12.9 mil liOfll""'plc. "'presenling nearly ICll rcreCnl oflh .. 

U.S. workforc<'. W .. are truly the tomcrstom' of this ~ti(",'~ economy. 

Moreo,cr, il i, importanl to st",ss IMI the restuuraot ind ~tl) is an indu~try t'lf~mall buSinesses. 

There are 970.000 reSlaurant and 1000sctvlce outk-ts in Ihis country, Seven 0111 often reSI~ur "ts 

~re ~inJ!,le·o.Jnit o[X"llItors. o~t t'l<tir1~~nd drinking e~~1blishmcnts. OjJ pclUlll of the indl~~II)'. 

ha,·c fewer Ihan SO employe .. .". ResL1ur;'mts also serve 8S the conference roontS for many of the 

sclf-etnplo),ed ~r1d Olher ~m311 bu~ine~!;Cs. 

l5-nar Ilcpru la tion Sfbetillie for L.easehold Iml'ro\'elllCnlS, Restallrant Im prOHmfnt~ 

l\ .!l '1 e .. • COllstruclioll, "nd Rcl~i llr"pro:"' rn s 

One prindplc Dftm- ta ~ fode ii IMI 005lsufnsSl:ts a", allocntcd OI'er the po.:riod in \\'hich Ihcy 

are used. As.wrs with longcr c~pcrle<lliws are depn.'ciatcd o~er a I"ns-cr ~riod "ftime. whi!e 

assels wilh shoner lives a .... ' depn:i:iated uver a shorter pc-riod <:>fl imc. As a ",nct:rion ufth is 

principl~ , rhe tal< codc contains 0 pnw isi4n undcr "hich leaselmld improvements, reStaumnl 

impro"(1)lcms and new =tauranl ~OI\lIlnll;lion. and ret.,il Improvements can be deprcri~tro Iwer 

15 y .. ars rJlher than a ]9')'ear r<'Co very period Ihal would otherwise apply 10 nonresidential .... -:11 

11ro!",ny. 

With m<."" lhan 130 million Amerit!n~ pa'r<lni~ing reso.aurJnts eac h day, re1taUr3 n1 tmilding 

str",'l urcs cxpt'r; cncedai)y stnoctu rnl and co~mc ic Wear and Icar caw;ed by CU.!lom<'r$ an.J 

Nalional RcstBUrllnl Associalh," Pngc I 
843 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.787

empl<)) cc~. N31ional ftesumr:lnl As~i3 ion re~e3f(:h ~how'! Ihat. as a rt'sult. most "'~Iaumnt> 

~lnodelllnd updme Iheir building SlruCtUres ewry six to "ishl yeaN, Con><''<I''''l11ly. 15 year.! ~ a 

mort' actur:nc timefrarne for recO"ering the CC)SI fill vutmcnL~ in .... ~tnur"Jnt buildings and 

improl'emcl1Is. 

Moreover, a 15·)'<'a. depreci:lliull !KhedulCl redut-es Ihe cost of capital expenditures Ilnd increases 

"'~sh flQw. A~ dcmi)llstrated in Figure I b.,]Oll'. tho! nnnual tu ~ savings and currespundi nll. 

llddiliunal cash Ilow rualizI'tl by res\:lurnteurs from a IS-yenr, rather th~n a 39·year, depredation 

schedule arc c,o'I,iderJblc, For e.xample. a re~ mmH~u(s annualla;\: liability wo uld incrcasI' by 

n~-arly $ 1 (1,000 if tho!- recovery period for 3 $ 1 milli<ln ;m'estmcnt ..... ere increas.:d from 15 years 

1039 year.!, A more accurate reco\'l:I)' period frt:<.'s n."SUun:e~ 10 cXp<lnd busi,.., ~ ,,;titer through 

nc ..... hires or further capital ,·xpenclilllTcs. 

Figure I. 

Sam ~ .ku i'm ¥ fur IS-Ytu ~l1'll ~ .W-Yur Dc 'red~t un 

A,,,,,,,,t A,,"ual M •• ""llJ fT~l'('l14"I' 

D..,,,,,,;'I;.,n Ann ... 1 [)q" • ..::i.'ion AM""I 'nl .. Sa,,"P" 

r<>l,,1 C.rilld 11.",,1,., I",S ... ~ Il . .. J"" 1, ~'"1V 8 .. " ·, ... ,, 

Fll""oditu'" 0)11 ) 9.)""" ,.- S-~ ...... , '''"" S-j\)~·~..,... 

[lil',ibJol!!r.wts Sd,"",ulc ~""", .. ,,,,,, ~~l!.1< fl''!!'''''''"", s"fI,<Iui!:> 

5 100,0011 sun "'" 56.6(07 S I.flIlIl 'i'Y~ 

Sl"ll.OOll !it> .JJ~ SI .!' I~ SiliJoto7 SVIOO 2.4~1 

SSOO,OOO $ 11M 8 J.QJ~ $JJ.lH ,,- \16~ 

~7f1(1.()u(J S!7.n2 $>l.Hl 4~.6(o 7 S'I.~OO SIi.<)·n 

.5 1.000.001' 515.lll> \1>.076 ~Ni.("" 7 S I6.II00 S9 \ll~ 

1, oo.OO(I ~l.'I H $9 11~ $ 100,(100 $ lJ,i)OO I'.~1«i 

SJ.IlOO.UOQ 'SIl ~JJ IU ~ $ \lJ.lH snl>oo S IU41 , £~]l('nd lur~ ~~ r1 ~ 

Rebuild (;0515: KCllovalion COSB: 

Quickservlcc - S7UO,(l()() Quidscrvice . S2S0.OIKI 

Fullscrl'icc - $ 1.500.000 Ful l>-ervice - S5!lO.OOO 

NO/e: Fig",.., ore bmeJofl" 24 lJCrd:tU.:1fecliw morgitl{lll(l'" ra/c 

AdditjOll~II}'. when reslnurnut5 irlVesl in COIl&U'letiol1 and reIIOI11I;0115. Ille impact spreads 

thmughoullh~ economy. Figur~ 2 pmvides slntc-b)'-slal¢estin):l\e~ oflllc ~dditional slK'lIding 

on re~tl\H'lln1 improvCmelllS and lIew con;;!nlClion 11\31 II nuld resuh from Bn e~I~l1sin" oflhe 15-

}'~ar depreciation p"lVi~ion, Ill; wd l o! the ,,,, .. rall eCOn<lmjc and employmenl imp.:itl "ilnin ~ath 

~""e. 

HowcI . Ih~ 15-year dcp~timiQn schedule ~ tcmp<l'nIl)' ~nd mUSI be cXI~ndcd ~n"U3l1y. MQ;;I 

",,~mly, il lI'a~ eXlend~d by th~ n~ Relief, tJn<'",pll)ym~m Insu["3nce Reaulhtlrizaliol1. 3nd Job 

Creation Act of2010 ("2010 Act") n'1i"Q;.lc,i .. e 10 Ille ~ginning of201 U ond Ihrough the end of 

2011. (Qnsequently, th~ Jlrovi~ion has e~pired again. ~ pi«~me31 and temll'Ornry approach lu 

the- 15_yenr depl"'dalion ~ch~dl1lc, requiring cxle,,~ion ...... ry CQupk ofy~ar.;, p .. ~nlS IMpay .. rs 

,,;Ih llnnl'crssal)' uncertainlY and tOll"lpJ e~il . 

t\~ a r..sult. e~onom it activity is sitting on Ih..- sitklincs in II fragile .... ·"'numic ",cowry. 

Currently. 30 lK'n:cnl of restaurant opcrJtol'S said they ha .. e pili projCCts on hold btx:auiiC or IIw 

Page 2 
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u""Mainty slIlT(>unding tile extension Oflh~ IS-year depre6ation provisil)Jt. Willt sinsl~unit 

reslauranl o~rntur.s reponing 31\ a~er~g~ cXpl'Ch:d projl~l L"(»;t of$40,000. and multi-unit 

0pe1"Jl0n; "'poning an ~vcra&~ expe~led project c~t of55oo.000. lhe addilional c()n~!ruction 

:letivity oflhcse restaur-ult projects alon .. would ... ~eccd $7 biniun. Based un L'Conumic 

muhipli~n; from tho Bureau of Economic An~lysis. th~ ol er~11 c<X)nomic impact ofthesc 

restaurn"t construction projects w<lldd c~cecd S2J billion. "ill1 a tuwl employment impllL1 ur 

nearly 200.000 a<lditionaljob~ aerosstllJ U.S. industrit.'S. 

" 'Iaking pemmni'lll the 15-y~ar dcpre6mioll schedule for I~ascho!d ;mprov~ments.. rest;nlrJllt 

i'~pn:.)\'.." nc"1S and new cOllSlruction, alld ",tail improvcments would address "us s~uc, 

providing ~paycrs wilh predictabi lity. simplicity. :lnd f3itn(!Sl;, Untillhcrc is an Oi'POrtunity tu 

addn'5$ta~ policy in H Inng-term 'md comprch",t5ivc rnan""r lik~ II.R. 1265, tl,., 15_)"3r 

depreciation schedule sltould be ~tendc><l. Our nation's busi,1t'5S!.'S arc looking forward by 

pbnnin~ capital ~xpenditu"'" to impro"~ Hnd ""pand thd! bu.i"",:;.:s. The ability to plan lor 

tJ,~se npen<.Jiture" and know what Ihe tax tre~tmen! ",ill be in 11K: future is impon3nt to those 

.... Ito an' making such d~'Cisio"" right rIoW. 

Wu rkOp tfl unil . Ta..- Cr"'!·1 

An{Jther imponunl, bUI largely t'xpircd, lIspe.:t of the ta..~ code is WOTC, a lax ~n'll'1 provided to 

employe!:'; who hire individuals from ~,eml ta'l;et~d yilups who race sig,nilieant barriers I" 

employm .. ,,!, E1(l\mples of WOTC -targcted emp)oy~~ groups- include vetcmns wlto dther art' 

100d stomp rccipi~nlS or arc l'tlcmplo)cd nnd sufiering a wrviec·eonnceted diSllbil'ly. fumIer 

felons. di !;\;01me.: t~d youth, and menthcrs ofiiunities n'Cciving lx-Ilefits l'ntier thcTelnpornry 

As~js mtec for Need) Familic~ Program ('TANI'''). 

Th~ "'-":itaumnt iodum)' <'Inploys close to I) million people. many or"hotn may nnt hal'c be"n 

hir~ if wOie h;rd nol be~ in place. WOTC cl "'ouraS"~ emplo)cl'$ to hire ecnain categories of 

individuals "'"lilt barriers 10 employment, enabling lhe~ worken; 10 move inlo ~dr-sumtic""y QS 

Ihey earn a .tcady i""eml' and bee(>m~ contributing t:lxpay~r5. Thn:ILtgh wore. tn()~ long-l,,"n 

",~Ifa", recipi"ll1s - lh" ntO ~t diffieult ca>es - arc I:<:ing enlplo)~J inlh" pri,'me ~iS:lor ~nd 7 out 

of 10 welfare recip;~nl.'; ~rc usinS WOTC to find private se;:tur j(>bs. A 201 I ~ttJdy by !'cter 

C3p~Ui ufthe Whanon Business S<:hool at Ih~ Uni,er.ilY ofPenn~yh 3nia fo-unJ that 

intli"id,~tl~ hired "nder WOTe go DItto become productil'o employees" ho are no ng~r 

derend~nt on public assistanec. 

Further, WOTC wons. In 20J I, more thaI I, I miUion wurl.:crs fuundjobs throu~ WOTe, ,It ntt 

:lI'crJgc cost ofappro~illlately S I .)00 00J;ed on 10int Committct' un Ta ~ati()\l di\!a . II is 

impunant to nute that this Jigurt: d~ not ",ilL'Cl any uffS<'tting saving from lower "elf-lTC, 

dis..bility,.and socialsceuri'y paY'tlcms. The Cappelli study found tlt~ t WOTC is onc ofrhe mOSI 

suect'SSful :md cost cfiective roocml employm('tll programs. 

Allnwin~ tlti. rrovision to e~rirc at a ti,ne or intra"sil;C"t uncrnploymeltl is u ;l!fIjlicanl selback 

for job cre"l;or, and the provisiOll should be e~lended . Moreover, ill the longer t"mI. Congress 

should l1l~kc W01'e pennanellt, sio<:e il h~ prol'e" to be an cfl,cicol i,"'emiv" lor 1)usi",-"SSes to 

pro"ide jobs for workers "ho misJn Olhcrwise f3U throu.!!1t tIK: cr...:ks. Doing so ",ould further 

provide taxP")'ct"j wilh pn:dictability and certainty in 1he tax code. 

~tjon3\ RCS\auntnt As~ocimiun Page J 
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DeduClion for Charilahle nonali,,,, of f l><ld InH nloO' for Small UII~in ~"':l 

Endl du),. 35 million Ameriean~ ~rc at rI,l; of hunger. At rhe ~m~ lime. billionsnfpounds of 

food are ~5wd each )'ear. Ameri..a '~ ,,·>taur~nt$ give hat~ LO IIt'ir cOlnmuo;rie-s in '1I8jOI ways. 

IhC" mo~r ,ignifi.:anr nfwhich is through food dOOlllion. AI:conling 10 National Rc,laUlllnl 

A~so< ri on ro:search, 73 p"rc~'ll ofrc~3I1mnt~ (kmalc fo;:oo;llo individ"al~ or chariti~.~. 

The deduetinn for charitable donutio" offOQd inventory;. 3 critil"'~lll>O l in nlle"i~ting hung.,.. 

Wilht:olltthe pro,"i~ion. 1a!(P")'~rs get I"" >anI" la~ trcatmen! for Ihrowing 0111 ~urplus food ~ rh..-y 

do r(!r giving il 10 eMrity. The enhanced ck...:luctiOI1 irlSl~ad ,:,neuurnges doruHing ,he fbod 10 

charity. by helpingt" ntTs~ttltc C()<;I, a,;socialcd with stnring snd tnlll;;porting the extra food. 

Ahoenr the cnh~n~(-d dedueti'm for the ch~ritahl edon~lion of fOQd inl'cntory, these ch"';ti C"~ 

would he hurd -pressed to meet critical demands. putting Our nation's m(>lOt vulncr.thle families at 

risk for hunger. 

owev~r, th~ imp;r~t orlhe ,1...Jnction could De impt"OH'd. For rJe"Jrly 30 YC:lrs sincc it. inccption 

in 197b. lhe ta" deduction for contrihu ,i on~ offood in~enlory w~; limited 10 C ~orpOr.lt ion s. In 

2005. Ih,' pr'Ovi, iol1 "as tcmpomrily cspal1dcll io incJud~ pasHbrough entitie.; (i.e., Subch~pter S 

corpomtions. limited liabilit), companie$j and has bc~n estcndcd on .uh>t'qucnt occ on~. 

Makin" pt:mlan~nt lhe now-Iempo!':!!)' cumpunc"111 ofthc Ikduction would ma~~ it nwre 

c!1"eclil'c. ,,·hile DIlI'auting the hj~'Ct i\"es of providing ta.~p.~ycr. \1;lh simplicilY and 

p~dictat>ilit)'. 

The Natiol1~1 Rcstuut"Jnl ASI>OCi~tion strongly ,'ncoumges its mcmlx'rs to donate more food ,mil 

IIlIS panner..·d with Food Donalion COllnection (~FDC") to strengthen this erro n. uund~..:I b)' a 

fonner ,,:Sl<lllranl executive. FDC s\'1"\'CS a.~ tit>: liaison between the reSI3umllts intercs1t"d in 

donatin)!. food and tbe soc ial !l<'rvice age nc ies adepl at getting thaI food to pt.'Op le in need. f DC 

hc1ps restaut"drilS dcvclup aud -iUlI,icmcnt prOS"UllS dcsi~lCd 10 provide au alteolalivc to 

diiiCarding sllrplu.; 100<.1. "hil~ capitalizing on the ~ot1(}l11ic bt:nc!ilS of those donations through 

the tax s<will.!o\S. Since 1992. fDC tms hcljlCd f"cililalC rhc d(m~lio" of over 1 10 million pounds 

offood 10 m>n·prolit. hungcr·reli\:fagcl1cil.'S. 

Cu"dllsiuCl 

Thank you for Ihe opportunily '0 submit rhis Slalc,ncut on bcl~1lf ofthc NaliOnJl Restaurau' 

As.ociati()tl. Umil rhc", is an opponunit)' for la.~ refum,. I,e urge Ihe inlmcdiatc and ""mless 

e~ e1lsion orlhe cxpired tal< provisio1ls, As Congre.<;s considers lhesc important ues. we would 

be pleased to "''''''C'5 a n.-sourt:C" for Ihe Sub\:ornmiLlec. the Comminec. and C<lC\g",ss_ 

l'agC" " 
846 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.790

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.791

Aational Retail Federation 

The VoiceofRetail Worldwide 

Submission of the National Retail Federation 

to the 

Select Revenue Measures Subcommittee 

of the 

House Ways and Means Committee 

Hearing 

on 

Certain Expiring Tax Provisions 

Liberty P!ace 

32S 7th Street NW. $u;te 1100 

washington. DC 20004 

BOO.NRF.HDW2 (600.673-4692) 

202.783.7971 1aI2Q2.737.21!4ll 

www.nrf.com 

Thursday. April 26. 2012 

Contact: 

Rachelle Bernstein 

Vice President. Tax Counsel 

National Retail Federation 

bernsteinr@nrf.com 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.792

The Nalional Relail Federation (NRF) submlls Ihe following comments in conjunction with 

Ihe April 26 Select Revenue Me<lsures Subcommittee hearing on ' Ce(1<1in Expiring T<lx 

Provisions: In partlcular. the NRF offers comments In support 01 retroactively extending 

provisions rela~l'1g 10 the 15-year depreciable life for leasehold. retail aOCl reslauranl 

improvements. and the won.. OPportuflily tax credfi (WOTC), 

The NRF strongly supports Chairman Camp's goal of corporate tax reform thai broadens 

lhe tax base arid substantially lowers the corporate lax rate. In the conlexl of fundamental 

tax reform. we recognize that all so-called "tax expenditures" will be evaluated and may be 

eliminated in exchange for substantially lower rales in order to provide a more economIcally 

efficient tax system. Howeyer, \ax reform will take some time to accomplish, and untrl that 

occun;. it is Importanl to maintain certain tax provisions Ihat help 10 stimulate Inyestment 

and lobs. These proYiSlons need \0 be extended as expeditiously as possible to elimirrate 

business uncertainly that is causing d~ays in investment and hiring, 

As the world's largest retail trade associatioo and the voice of retail Worldwide. NRF 

represents retailers of aillypes and sizes, lT1duding Crn-iT1 restaurants and Industry 

partners, from the United States and more than 45 countries abroad. RetaHers operate 

more than 3,6 million U.S, establishments that support one in four U.S. jobs - 42 million 

worlling Americans. Conlributng S2,51!illion to annual GOP, relail is a daily barometer lor 

the nallon's economy. 

p(eciaijon of Leasehold Retail, and Reslaurant Impro~emenls 

The existing 39-year recovery period for real estate grossly oyer states the useful life of 

structures ami, even more so, the improvements made to structures, increasing \lle cost of 

capital and slowing down In~esttT1enL Studies conducted by the Treasury Department'. 

Congressional Research Service' and private economists' all foond that the deprecia60n 

life for buildings is too 10flg and that the depre<:iation (ife for building Improvements is even 

worse. In fact. tax depreciation rules for il'lvestment in nonresidential structures may be the 

only Iype of investment where tax rules proyide for decelerated cost re<:oyery. As a resu~, 

current depreciation allowances generate high tax costs for these inyestments and reduce 

In~eslmenl in these projects. 

' R,1"""u Ij", (,,,,,,,,,, ,, ('" Q.1,~. I{}/"'~ fI"Vt" J "",,,1, """I,II,',h..', WaiII;''II'')ft.lU ;., , ll'\IOIu c~1 "rtlle 

r",~,Jul)~, 

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' Set. li .. c.,,,,,plo:. Dd<)l"""'" \), ... ,.", .. 1.1.1'" A""I\'. '.-M ,,'" j,"W'IIII'M.i /i" fl<'(W';;"i"" "'''''''.''./'1'0< ""~;nM ""_ I), r.. Jun< 11)00 
849 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.793

In the retail trade sector of the economy, structures and especially thelrimprovements do 

not last for 39 years. Retailers generally remodel their stores every five to seven years to 

reHed changes in c:ustomer laste and needs. Remodeling is needed to maintain the 

retailer's customer base and compete with newer stores_ Moreover, many Improvements. 

such as Interior partitions. ce11ing IiJes. restroom aecessories. paint. etc., may only last a 

few years belore requiring replacement. 

A provision to temporarily reduce the depreciable life of /e8sshold improvements from 39 to 

15 years was first inch.lded in the AmeriCan Jobs Creatioo Act 012004. Under this 

provision. improvements made to buildings that are leased were depredated over 15 years. 

but improvements made to bUildings that are owned still had to be depreciated over 39 

years_ The 2004 Tao Act also allowed Improvements to restaurants to be deprecialed over 

15 years. regardle5s olwhether the restaurant was leased or owned. 

Appro'.o:lmalely. hall of retail stores are leased and about half are owned by the retailer. For 

retanef10lhat lease their property. the teasehoJd Improvement provisioo greatly reduced the 

cost of improvements to Iheir stores. However. tn.e leasehold improvement provision put 

retailers thai own their stores at a competl~ve disadVantage because they had to continue 

to write-off store Improvements over a 3g-yeal period. Congress resowed this inequity in 

2008. when they e.~nded the depreciation "elctende(' to allow qualified retail 

Improvements to be depreciated over IS years. regardless of whether the retaHer owns or 

leases his store.

4 

The IS-year depreciable life for leasehold. retail and restaurant improvement property and 

new restaurant construction expired at the eM of 2011 . Investments \t1at are made now must be written off Over 39 years_ Because tNs is such a large Increase In the cost of 

improvements, retailers have slowed down making imprOVements pending iI decision from 

Congress as to whether these provisioos will be extended. 

Retailero' remodeling provides many additional jobs to the economy. According to the 

Bureau 01 Economic Analysis. every $1 million spent in the cons1ruction industry creates 

more than 28 jobs in \t1e overall economy. If the write-off lor the cost of improvements is 39 

years. rather than 15. it will have a negative impact on a retailef s deciSion to go forward 

wi\t1 their remodeling ptens Clnu will cost jobs. 

~ u..f""""""' ~. ",",nl·,.,.,., .. r,.«\ ,n. 'II«!U'I)o ", 11Ic-1o"' '''lI-'nI'''l! "'" ''''; )"'~ ,"'r< "",n.".", "n''-''''',h.'' "nrn>\cmmb~"r!5 y.,. .... tIK<r >I!Wtd ' "",,' '''"'1"ill in Iht I, ... TOo_I"""r.,,,,, "' ...... "' .... ,'nf""",1 """" .... I(einl< ,'" .'IIi>'l~ bon", "",.",,,.,,",,, ,tit ..... " ''''1''''''''''''"1$. bu< I<$«« M rt<>-il .H,,.., <j:G'""'" r><nl\ltl<J ~ ... 

""""'" ~<"'ico. A~"in. ,hi; d;'<rimin.~ ilJJ>O)Qt!. b,m"" .... in lto. .. ".. "'"~" ",oN "" ",",Ihc, lho """" .. 

1."oN ".-,.,,11«1. ""1"'[.")". ,n;. i' .. ~ui'l ,'",'" "".",0\1 .' p.rt of iii< •• 1<:11";'"' ,,( ''''' ... "",«.'Iuoo 1"'" i,k.,. 
850 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.794

Work Oppgnurl!Y Tax Crelf! 

The NRF supports elflension of the Work Opportunity Tax Credit (WOTC). WOTC is an Importan! emplo~menl incentivB_ In the retail Industry it has had proven results 

encouraging hIring among cenam classes of individuals thai might otherwise face difficutty 

in gaining empkl~ment. II atso provides resources for job training thaI is so irpportanl in 

bringing these targeted classes into the labor market 

Concly§ion 

Extension of business \aX prOVisions thaI encourage investment and emplo~ment snould 

nol be delayed until poIicymakefS complete work on comprehensive tax reform_ 6uslness 

uncertainly that has resulted from Congressional delay In eJ<tending these provIsions has 

led 10 a slowdown in investmel'll and hiriflg. While we are hopeful thaI the tax reform 

debate results in policy that provides a more efficient tax system, by eJ(changing lower lax 

rates lor many of the incel'llives in the currenl tax code. it is aiticalthat the currel'll In 

system provide certainly In the interim. 

We respectlully urge this Subcommittee to act expeditiousl~ to extel'ld business lax 

"extenders: and partk:ularly the 15-year depreciable life for leasehold, retail, and restaurant 

improvements and new ,eslauranl construc~on . and WOTC , un~IIaX lefOfm can be 

enacted, 
851 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.795

Testimony of the Honof'Jb1c Glenn English 

Chicfbeeutive Officer (CEO) 

Nationill Rural Electric CooperatiYc Association 

Submilld l'i'lr the Record to the 

United Stiltcs Housc Committee on Ways a.nd MCilns 

Select Revenue Measures Subcommittee 

Hearing on Certain Expiring Ta." Provisiuns 

April 26, 2012 

Thank you f~-,r Ihe opp<-'r1~lI1ily In oflh 1~~limon: boUI how cI~"lri<.: "OO(lCnui\',,~ ha,'c 

utilized expired lind expiring rcncwuble electricity lUX inccnli,'es 10 de\'dop projecls th~t 

help kccp cl~'clridty reliable lind allbrdnb!c for tllcir consumers, 

"leClrie eoopcrati\'eg IlI1d their consumers hovc_ sincc 2005_ ll1ili~cd Ihc Clcon Rcncwahl c 

n~rgy BOlli! program «("RElh) 1<) linance rt"oL'wahll' prc~cct _ Rcccnl!y.50111c 

I:oopenltil'cs lhut could not usc CRELIs hlll'e indirel:lly benefited from the 160J rreasu!) 

(jranl I'rogr.U1l (TGI'). III addition. ett<:lric eOOpernli,'Cs hllve purdlllscd rco~,,"ablc 

pow .. r 011 <',mlmet fl"flm private dCl'cloJl"l'(l; claiming Ih" l'roo:lll<'lion Ta ~ CI\.'-d;1 (PTe ). 

sin .. ~ the mid- I 9905. CO .... )P expcriellec~ with ulllhrec of Ihesc progl'lIlII$ can g.uidc this 

COl1l1niUe~ as it ,.kdJ~~ lh,· h'tul" ofi"Vllewuhk i!l~clJ tiH· pOlk)'_ 

A key principle Ihal should be eOllsiJercJ in the CIIlIlest of dClcnniug whelher cllerRI' 

credils will be permillcd 10 cxpire is this: if Congress uses the IlL" code 10 dlreel energy 

polk-y. nOl-for-profil etc~l ic COUpt'fUlll'i$ should Ill: included in an> availllbl~ inc~mil cs_ 

silch a., through th~ reecntly ~l1 ire!1 1 ti03 Tl'I!asury Or..n\l Pmgr~!H or Clcau Renc\\"~b)c 

Energy Bond. Olhi:'fl,is<:. Ihe tax code will etc31C a disparity. Co-O!! consumcrs in rural 

America will l>c.ullnblc 10 fully enjoy the divcr.;c mix of generalion ~snurc:cs n\'nilobtc in 

lITe .. , c,,"ops serw, "hile Cimsulllcrs IJfiu\,cSlor-m'lled ulilitie:; \,ill bcnelit frolll 

ineentivcs. Moreover. "ilhoul ince li"e~ adJpted (or nOI-for-protilS, ~Ile .. '{ing statC and 

Icderat ~ncwabtc and environmental mnndate~ wi!1 ht: more e{l~ ll y for mcmocr.;oftax 

cxempt rUf'dl ek .. 'lric eoopcmlil'l'"S than lilr consunu.TI of investor-owned utililies HOUs). 

~ek ro und On f leelrie ConP<· ..... li e~ 

The Nalional Kurul EI~ctri e CooJX'fluin.' Association (NKliCA) is thl' nation;!] service 

IJrg~ni7;llilJn r"pl'I!;;el\ li ~ Ihe inlcrc5IS of COOf><.'r~li, c dC'-'lTic IIlililiClS Hnd their 

eonslimcrs. r,le~lric coopc,.. .. ,il'C:; ~ro Ilm-for- prOliL priv3te hl1.~il1t'S,;cs ,governed by thcir 

consumcrs. 111<'5e consumers arc uniquc in Illc electric indusl!)' in that th~y lire l11embers 

uftheir coopcrutive (""membcr-consumers") und Ihcreforo u"n Iheir IIlilily . Today, IIvcr 

900 clcclric coop.::rm;v.:;s ~r\ C 42 million conslimcrs in 47 .,101C$. CO<)rcm li\c ~ Dte a 

unique ~C.;:lor or the dcclric utility indU.' II)', serving SI1 svcragc Ofjll~t 7 rnnsulllcrs PCI' 
852 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.796

milt ~ol11pll~ll "ilh thc 35 ~u lom~ rs p~r mil..:.st'Tvcd by lnvei;tor· ... "'n~llllli1i ii:~ (I0Us) 

~nd 47 eU~ omers per mile served by municipal U1ilili e~. 

-r 0 put lhis in per.;pt:CI;vC" e lectric cooperativcs sen 'c 11% urlhe n8lion"s electricil)' 

<;lIslumer.; _. but mainlHin 42% vfthe natioo"s <;lc~I ki )' <.ii~lribulivn lines. Aunual 

coop!:r",Jlivc revcrlUc f'II'r mile a\"cral~c5 onl y $ 10.565. while il is I1lorC than ~i)( limes 

higher lor investor·owned utililies. al 562.665 and highcr slill for municipal utilities. 3t 

Sl!6"JUl rer mik . III SU'IDI1()(y, OOpt:r~li, es I> ;I\'C far Ic ~s l;.""enll~ than the "Iher 

c l,::clricity sectors h) , upport a t;remer ll . of the di~tri blll ion infra, trlleture. 

These numbers illuslrute 'Ihy bringing power I() rurul areas is u chullcnging and COSIly 

en<.icnl"Or. 'I he not· for-profit , C(I()PI:rulil"e business model has btcn the k~r 10 litliwrif\l1. 

n'liable ilnliul"l'vnlablc p(Jwer!O Ihe'se I"", densit)' ilr~'I\.~ . Cnnsistcnl "'lIh Il1h .. 'TIl1l1 

R,'I'CI1UC Service r~'qllirc ems. eleclric c()OllCmlil"cs arc dcmOCr.ltically govcmed by 

locally e lected boards ofdireelnrs. and opcrme at cost. Any rlwcnue C(}lIl'CI!'d IIbo\'e 

"hal is e~ded (ur the cOllpcr;.ti,'c is retumed \(l!lll consulller-lllembers on 1111 ~quit;tbk 

b~~is. Bcudits rc<:e;l'cd Will the [cderal g()\'Cn1l1 '~1I1 , Ihcf('f()rc. also now HI Ill," 

eOllpcralivc"s mel11l1e l'$. Given Ih\ ~_ e lcctrie eoopcra ti \'c~ arc gc nCT:lII~' e:l:empl Irom 

feoeml income t::L';. All electri c eoe'pcrlltivcs. howcver. pay SlUtI.' Bnd loc31 properly 

laxes. sa k s a.~ alili payroll "nd cxc ~c t3.WS. 

Docs Renewable Electricity Require Incenlh'ell? 

Elcclri", coopcralj\"i:l> haw a m;~sion 10 pl'Qvili c Nliablc. iliTorli ahle eletlri",ilY lu \heir 

timiil.lr ll cr- ,"~n,llc rs. Cl .. OpS mmil flai;mce tlml missi!)n \I ilh cOIll!",li"" ",c II ilh t~tc 

renewable port l"o lio mumlUles and SIlIle and lederal elenn lIir law. As SUtll. ,'o--ops must 

consider 311 aVllil3ble ..r~'rlr;dt y SOLlr("t~s 10 mel'1 new electricity demnn<.i. Coopemlil'l'S 

arc plolllling 1;) build I no MW ... f lle\\ clectrie gtl1cr~li(m '~I'C f thc ncxtllctlilic. a.)u 

"ill have 10 buy ~drli i()MI gcnCTlllion in the market /() mcct on nl1.1u61 population gr()wlh 

ra te excecdiog I percenl p~r yc.ar in lhcir SCI"\'iec terril ri~ s. These Ii gufCs do not C 

inlo uecount uddilio n~! powcr necd.:li 10 replace older cOl,l planls thut will soon be n:lireli 

giveo n:c~nt and prospect;I'e Col'irullmcl1rn ll'rotcetioo Agt'nc)' m VA ) regulmi()us. 

Aceorliiuf! lu the I: nergy InfommtilHI Agency (EIA). fClICWDbk d~~ lricil~ (c.\cluding 

rcnc"ubl" hylir()po" 'cr) uccounb rCor 4% ...,flh e n;llion·s fucl mix - uoout d()ublc the 

pcn:ellt"gc!lf rcll,'wabk energy inlhe 'n;x prior \(J the C~f1:,"s;()n of las ineeot;vcs "nlier 

the Encrgy I'olie) Act of 2005. RC" e\\"Hhl~ elc-l·trieity is gencmity thought o f as 

distributed gencnltion lind is mucb s maller In scal e tll;!n a n~w coal or gas plont" In the 

case ofsolur no<.i win(J. il is onl)' iOl ennillCntl), lI vlliluble. For Ihese reawns, il ~unnOi 

n:pliLec retif('d cool pliLl1lS. Nnnetlll:l css. renewable rcS(1uf('C'S llre;ln impottlU'1 pari M lht' 

··mix"· fnr building 'he gcncrali()11 o,ec .. ·s~1Y to Oll..;,t rll\Urc cr"l"1rieLty d<;mand "hilc 

mitignting,glollal grcenhouse t'n.~ emissions Ho<.itrndilioonl PI IIU!Hn l~ tll8t fCsult from 

fossil fuel g<'oer"~tion. This is illerc~sini!l y impon unt us lhe t:nl'iTOlunentaJ I'rotccti\lll 

Agency de,".'iops IllOTe strici ~ndllrli s for (XIwer pl~OI$. 

, 
853 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.797

Gi, ~n lis im[lV11h ~c 10 billilllcing \'irUnrncl1ll\1 golt ~ wIthin our nadon's filcl !Hi;\\, 

_,Ollle nsl: "h)' rene\\'~blt electricity h,~uld f"C(jllire:\ lax incenlive or incenlive (,I f any 

kiltd. For cuo[lC"',lIi \"c~. Ihe allsw;:r is Ih311\.1K'W~hlc e kclric il)" will ollly Il\' dcvcl"pcd if 

il clIn be done $0 o!lordnbly for eOI\Sllln('("!;. Today. withoul incenti\"es. rencwl,ble 

electricity is unaflo rdable compared to n3tural !!ll.<;-fin:d generation. In Novt:mbcr 2010. 

U.S. Energy InlOrtn,lIion Ad lllini ll1llj on cSlimmcd Ihaillte owrnigltl ,'apiltll ~'OS I of an 

Ild" il11ccd nal uml "il~ cOlllhincd cycle plant is $ 1 ,003 1'<'" kW of cllpill:ily. Nol t:ounting 

CUITCnl1.1N lIh5idic . by wny of cOl1lparisoll. an onshore Wi lld projeci is Ihe most 

affordabil' rencwabk l\.'SOurecs at cII'crniglu t:apillli CI~~l~ of S243R per kW. F(I!" mher 

rcmc'w3blC'S, rhe COSI is even rcarer. I'or e..~ll mpk. 0 large solar photovolloic is S4755 pcr 

kW: Dnd a combined t·y c!c biomllSs plnnt is S7H\l4 per kW. Allhough cxisling 13X eredits 

have driven illwslm~lIls in r~l!ewabk IVSOllrn-:;.lhe mi~sion ofmuking lin.· ~()51 or I\: \e,,~blc i;e IIll lo!!-~' lllpfll";j bk Iv rh~ ~~I v I' ~(m\""ntl9'wl ""('ul\: ":'~ has nOI)"'- hc n 

cOlnric1ed . 

Despile ilS \'310(: in providing 3 b31anccd gcncrmion prt)lile for IIlililil-S. abSl.."1l1 inl'cnlin'lL 

Ih~ pun, o i"placing n:nt:wab1c enecgy in ~l' e is likely Iv 51ul\' 10 ~ trickl e. Y~I puning 

(Iuure l1cncrmion inro one b" skcl - lik.-Iy. l1ulllrJI gas - is risky due In \'ulatilc prit:l'S. or 

eX~lIlp t-, in May of 2008, lIalllra l gll~ pl'iel";: \\<" rc S 12.4 I pel' thousand cubic fl'\:l (Tefl. 

Today. prices lire hQwring ar<)ulld $5 TCF. The new. IQw" r r rict:s 3...., ~ ....,~ult QfOOth Ihe 

rt.:cssioll and newly disw\'en.-d domestic ga, rt."ScrvC'S. 11''''n'cr. p~st eX[lCrien(."~ tcachcs 

liS thai gas is 3 \"olmil e price inpuc lor IlIc\ as home be~li" . Iransron at;O" and eleclricil), 

~e<: OfS "II lllil: rdy un gas. Mon:o",:r, ulililjn)! naruro.ll g~ doo.."'S nul avoid grc~~\houst: 

gas emissioCls. 

S()mc argue rlml l1l:mdal c.~ are $IJliicicnl 1<) drive ...,newablc ener€,.\". Thiny·se' t:11 slalCS 

currcnlly hu vt rencwllbIl-1113mlut~"!i or !::ools.lIlld 20 uflh,,:;c indude l'oupnuli\"es in 

these pr0gr8ms. Withoultllx ur mht.,. inl'C11Iivcs. lhere will be Ill! lools aV8i1l1ble tu hclp 

cQ-op~ 1Il<.' ~· 1 rh<))e goals uflb.uably. rhe cm' Ofrt:llt:\\abJ.: R"!iOUl"I."e~ "ill t:~~ee..J Ihe ,'ost 

of p,l),ing:t po;:n:IUy !O tlt(." Stal;" for f.lil ing 10 build Ihem. E"xilcerbilling Illis result. man) 

I~tc IImndaIC"!l llllill1~td}' requirc n.'!!uu("I:c de,'d opI11Cl1l 11ml simply is 1H)l achic\'3bk 

givcn Irnnsmi.$.~ion co Slrnlnl~ and Ihe qua lity or availabililY Qf renc\\'3hlc rC!\(lurec.~ . 

Tltes(." mundates "uic~ly con~~n to a pure lax on cUII,;umcrs "hen po;:nahy payments arc 

paid in lieu uraclual res()ur(:c dcn·lupmen1. For lho ..... ""asons. NRECA has 0p(KlS'.'d 

urlc..";7.c-flts-,,U r~dt:m l rcne\\ ablc. ponfuliu ~llI nditTd ami lIas I;U II ~iS nll y ad\"<JC<lled rl'al 

Ihe be 1 "a), 10 push the c",'c\opt: lin techllology rernllins incentives ~ whelher Ihuse 

incenlives orC in Ih~' IlLX code, in Ihe fOlln o f Sll11l1S. vr through I()"'-coslloon progrnlllS. 

Expe rience with Ih ~ C REB >rQ~"" JII 

The ~'1I1 RCl1e"abk Ell~rg.~ B()nd (CREB) progml11 "'as Cl1aeltd ;n rhe 200~ Energ .... 

f'ol icy Acl wilh slrons: bip:lMi5011\ snppon. bur ~ funding was permiticd Ifllnpsc in 2010, 

It hclpl-d CClOIl'Clllti\"C!i and mher nol·for-profi l$ 10 finuncc renewable ~ncr.uiull projc.:ts 

Ihal wOllld have occn eligible fix rhe Production Tax Credil if dcve loped by II for-profit. 

Thc bond stnr1 ~d us. esS<'nliull y.1I Zcrn inltf(.'Sl.lerm-limitt:d loon. A cllOp..Tdti vc \\'onkl 

issue 8 bond; the bondholder would recci\ e prindp;tl repaymenl from Ihe coop':r.lliw; 
854 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.798

ami th<' f <'lkfUl r<,a ~uJj' "<JuhJ provide a tu.~ m:dil tu th<' bo!ldhOldcr In lieu of ink'Test 

Ih" cool"'rllli, ~ "'ould i>lhcr",i 5~ have paid. 

A \'olulllc e~r (JrSROU lIIilli"n in hondini!; ;'\ll(ilnril), wa.~ inilinlly pnwid~d with 5300 

million ~ct aside lor eloXtri~ cool"'l'atives, The vohllne c~p posed a prohlcill for Ihe 

I'f(Jg.mm. Tl'l':nsury recei\'!'d S2.5 hiliion in "1'I'IitAlionSj)ver911 in th!' IitSl yenr_ While 

an addilional S.JOO million (with $130 million SCI asid!' for elc~1rie C{){)IJCratil'~S) was 

providl.'d under Ihe Tax Reliefand Health Care Ael of 1006. applicll1ions slill cxn~dc.d 

availobh: funding ~ulhoriul1iuns. 

Uy ,"onll1lsl, Ihere is no vnlUIliC cap ror the I'rodm:1iun Tilx Cn:dit. the InveSllllent 'l';lx 

(·redit .... r the Iu.~ grant pr(lviil!'d under Ihe A1I)eriC9J1 Recovery ,J!ld J{eill v~St lncnl Act <,'Jf 

2009 {"stilllulu:; hiW). AnclI1pling to ,,,l<Ir<:IiS thi~ disparity IhriIUJoI..h IIIc~lIillgrul pfllgrmn 

fill1dillg. the stiullIllIs hill. cOllibillcd w,th Ihc E111el)lcney Ef;Ollomie St~bilil.atiun i\(:r of 

2008 ("economic rcscuc bill"), nd(kd $1.4 biliiOfi in bOllding IlIIlhoriWID the CRf.B~ 

prt)grum. dividl-ti equHlly /)ctween ekerrie e<)DfX!nllives, mUllil';pal ulilitie. and IU)I1-

uti lily gov~mm~m hodks_ Th<.'..'<I: ll ~ also mlld~ 8 <;('ric~ of improv~lllrnL~ to Ih ~ 

progrJm 10 make th", bonds mon: m~rkc\llbk. such u.s lht, obilit!! to strip the bond from 

Ihe tax eredil and scl lthcm sepofUlcly. and prtll'idcd f()f a 70".10130% shared interest CU.~t 

bcllwcn the issuer nnd the Tre~sIlJj . 

In 2(l09 nod 201(1, ck\:lric coopcrmivcs rt.'\:ci,c<.l Q",-,r S600 u\illioll ill CREB$ A"ard~ 

thn)ugh bond nurhorilDtiolls thm I'"r~ $tl Mide.<; in th" h\O bill,. I),:"pire rho! prnmi ... • of 

gnificDnl new fundin.!',. Ihe program hit a Il1ltior silag -- Ihe cc(lOom;e dOllnHlw. The 

Illarkel for r3~ ,-,redih n~arly ,-,oll;,p",<.I. P"t,-,nli:ll ('REB,; hll) er.,; "",e d~~nan.Jilll! 

signilicnm nddilinn~l intereSI lrom ssu~n; 011 lOp oftl1 ... fllee value of the hnnd - 3n 

cllcrtil'c imel1.'St rute Df8.5%! So. CRElls hud alrcudy becn ullQCaled to projects thul 

were ready 10 mo,"e forwnrd. Bul rbe I>nnds could not be issued. and the projccts - Dnd 

rclotl'djobs - were at a stondstill . 

'1 U T"Cl<I:U<: tht:Se projecls. Ihe Commince mud,' 0 eriricul improvcmcntl0 the progMnn in 

IUt 28-l7. 111 .. "ll ir;llg luccnlives to Rc,IDrtl Emplvymcnl Act." This n~'" In" 

c~lublbhl' d a "direct pa~ ment" Opli",n that uUo" s eREI} ~s ucrs. u~b 1';- cOOpCnlli,,"s, lQ 

ri:cci\'c a dil'i,.~1 (I:1)'l1IC UI rrum Trc:ISnl')' dc~igncd to rc;lllhul'S\: IIlc CQ'(lJl ti" 70% nftlie 

proje<:leti iutcresl COS! ol1 lhi.'$t bolld$. Tbis uptiOl1 mClled Ihe program frol11 1he 

IlcgOlivc imp<lel Dfdle rccessi()n 00 Ihe murkct fDr lax eredils. Dnd assured thaI renewable 

projecu could m<l\'c iilt-ward. [Jnder Ihe conditions thal continue to supprc$S lax appetitc 

in the bond mH1"Ket~_ Ihe. "direct pay" fl'OlUfC remnins an imponant aspect ofthc progmm. 

'I'D sum lip CU\lpcrnli\ ~"'" suecl!SS wilh the prognun. 210 MW uf cooperati"e n.:newabJc 

po",'r is ~Un\'ntJr in ser ... k~ illunc~d lhruogh CREUs. "ith uliotht'T 250 M\V poised to 

cum\: Ull lillc unda the prvgr.lIl1. The proj\:cts arc distributed a.ross J 3 t;(tc > and include 

sular, wind. gcuthcnn~tl , hydrur""<I'. bioma;;s nmllalldfill !.! ~ ti.'tl:mulul;!I:s. The Illap 

Inbeled "fll1achm~nl A - pnwid<!S n101'l': detail on Ih~ IlT,ljel'ts. Each CHEll project mcrit; 

lIlenlioli as 9 success slory . Th .. prc~ct'ts arl' tllC ".-sull oCbal:lllclng clean "IWf&)' 

ohjcclivcs II illt the cQIlscrvativl' approach imflOsl'd by local ct)()'Cralil'c Boards of 
855 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.799

l)ireClol1i. The BODrds clll ph(l c luug-lt:nJl planning. condnued ulion)..,blc mlcs Dod 

prudenll1Se Ofulili!)' J\.'"$(Iurce,;. EI~~lric COi\pcra!;ve proj'::":IS 8(C 1101 built 10 ll"ll're~s 

,todholdc rs Ilr follnll' a t!"Cnd, hUI iustca{1. pl'llvitk am" .. lahle, dean. J\.~lewahlc powcr 

henelig 10 locol eon,umen;. 

Exp~rien~t with th~ j' rouuction ~:c. r~dillind 1603 Tr~l llI")' Gl1I nll'ro~ rll m 

Thc CREIJ program ~" Iory of coop OWllership of"rellcw-ab!c prnjccl5. Direct project 

oWII{:l"!>hip is the IIcst way for eOllpcr:Hi\ e.~ h) n:s crvc erll';rlUllllCJlta] amI "O nlpli8uce 

benc1its for their 0\1'11 eonsomers. Coopernllve,; ulso buy II subsIDntia,j qumllity of 

renewable energy frorn Lh e market. Ol·ernll. cooIX'rnlin:s distri bute ovcr 31)00 MW of 

rellcwabl\:. cup ~ily (1,,-,1 ~otl[!liIiS ydropo ·r ). 'rwcllty pcrc~1I1 ot"lhis i~ OWII~d by Ihe 

coopt"r~li,"c . "Irile eighty percent oftbi~ Cilpilc1ly ~ gencnl1c<J tly tM,pi,ying cntili{$ uud 

then cOlllrnclunlt)' p'ltehao;cd hy cooperatives. These ,enets nrc thcm5c1vc.~ Ihe r"I."'Cipienl~ 

"fthc Pmduction TIL'{ Credit (PTe) or. in the ~asc ofsol9r. dIe luvcstrnclIl Ta); Credit 

' IrC). Coopernlil'es do nOf haw federal ta'{ li abil ity and there lore eannOI use the PTC -

bllt nunclhdcss. their ~onsolllets CIIJl hcncfn indir(:clly frolll enlilk"S Ihul do. The PTC 

htlS lIuvcr be.:n a c!Jmpl~ eSQlu ion roc ewper~ livc,. 3S lhe entire w lull or the PTC ~ 

!Jllly parl;"I I), n(> ,,~<J Ijorough Iu lh~ e(Jopcrilli,c Ull Cunlrilcl. So, Ihc I'TC doc$ II(J1 

provide cO(\p.:ral l'c.~ with enst-cCrlainly and more impnnanlly. d()l:s not cnah1c cketrle 

coopcmtivcs to oll'n and devetop their oll'n n."Source~. 11 has ocell a vnluab!c 

nnderpinning. in the l11arkclploee lor ~new(lb!c encrgy for Ihe ~st dL'\:adc, ~hh u!;!h it h(IS 

SOlfl'Tcd somc urlhc sillne impacls from Ihe TL-CtsSiOlllh~1 hillhe CI(I!\Js progrnm - II 

I~ck (> fl~ \ appelite lOT \;1.\ c~diIS. 

The PTC ~!( ponsioll under the "Slimuhl~ hill"' n ealed 811 oplion 10 In~ ~ an n\'l'S m~nl Q!( 

Credit - and Ihl' l cOllwn Ihe ITC 10 a la!( gram under the " I (;o3 Treasul) Gralil 

l'rQgJ1Iln: ' rhis mechanism was dcsi!,!ned 10 address Ihe lax appetit e barrlt'r nl1"C(.ting Ihe 

j'Te. Under Ihe 16()] Treasury Gmot Prognlm (TGP). II rencw~blc d~I ~lopt:rcan n:i:cive 

:1 gr.ml fn)m Tr"~:;lI ry cO"crillil' 30% Of lhc proj"ct"s capiwl COSI~ on!:c it i5 placed in 

!leNice.. Coopcnuives wilr .... n01 ineilld .... d in this progrJIlI directly, OUI ,I h:1S brotlghl 

c()opcmlivl's an IlpjlC\rttmily Ihlll is proving to hi' mort' useiul Ih;l1Ilhe PTC. Some 

el)opcrnti,'cs h~I c fonnl'd struclurc5 Ih31 coahlc them II) indifI.'Clly utilize the TGI' and 

own and d~\'el()p ren~'lilbl~ pr,~~e's. It hilS bc.: 11 the dri,,,r for scwrul signi tk,1Iu 

~oopcrative r~lIcllublc projecls currenlly 1l1lder\\"~ )'. 

Condusioll 

Whether inditeclly through the !'TC and 1603 Treasury Grnnt I'rogrnm - or dirCl:tly 

throug.h CREBs - nearly 100% of the re""wHble pn'Je..; ~ that bt'ndil e!c.:trie i:oopcf<lti\·" 

eunsurnCfl; lire ..,lIributablc 10 la~ ~tlde incentive pl"ll . Wi!huul ine nli ,e~. 

dncloplucnl o f Such ~rtew~blc f'1\lje<:IS will grind to a hall. Thc Conllniu .... e h~s 

imponnnl considcrntion~ 10 \I elgh :IS they can:lully r"I.."l'iew e~lcn~iollS of e!(piring credits. 

R~n~\\"abk encrgy development wi ll 1101 "mllke or bren~" ~clric eoopt'rati\'cs liS ent ili . 

bUI will.sh<lpc the cxl\'nt to \1 hich coopcmlives rely upon nlilumi ga~ or olher re.sOllfCCS in 

~ir g~ncr.ltion mix. Iheir abi lhy 10 optimiz~ locill resourc.:s. lind the C!(ICnI 10 II hich 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.800

coopcrmivc cUllsumcrs nrc e.~poscd Iu c!l\'iromncnml cuwplinnce CU$ls. Should Congress 

d"~ >s,, h' "~t~',, d tIL\" inc""ti,',,> lik ~ thc'f>TC h' ri, ' d"",n lh" C"J~L ofrcn"wahk 

lechnologies. we LLrge Cnngr~, 10 so extend pr"granl, •• h a~ Ck :m Renewahle 

Energy Bonds or Ih.' 160) I"rcasllr) Grunt Program -- Ihnl bcn.'lit nUI-for-profit 

coopcrali,'c conSUlTwrl!. 

<, 
857 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.801

Au •• hm.n. A 

Electric Cooperative CREB Projects 

,-

• 

,--

"" .. \O,,~, 

I,I"! •• "", _." .. ... 

~ ',""~'" " ...... ",., 

-------------" .. " .. " .......... ""' .... --.... 
858 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.802

Contact Information for Testimony by the Honorable Glenn English 

Chief Executive Office, National Rural Electric Cooperative Association 

Hearing on Certain Expiring Tax Provisions 

April 26, 2012 

Submitted by ' 

Name - Susan Collet 

Organization - National Rural Electric Cooperative AssocIation 

Address - 4301 Wilson Boulevard Arlington, Vfrgin!a, 22203 

Phone Number - 703-907-5822 

Contact E-mail Address-sl!san.collet@nreca.coop 
859 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.803

Statement of Colleen M. Kelley 

National President 

National Treasury Employees Union 

On 

"Extension of Employer Provided Mass Transit Benefit" 

Submitted lO 

House Ways and l\'lcans Subcommittee on Select Revenue 

Measures 

April 26, 2012 
860 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.804

Chainnnn Tiberi, Ranking M~r.olKr N~al. and dj,ilingui~hed memb<rs Oflh., 

subcllmmille~, on behnlfuflhe National Treasury Emplo)ees Union (NTEU), I would lih to 

thanl: you Ii)!' allowing me 10 submil commems on e~piring IllX provisirnls, ond in pankulnr, Ihi! 

impo)J'nolc~ of cl(lendhl!\ Ihe CJlIphryer·pro>·idCLlmnss lronsil benefit, 

As yuu knuw. ill 2010. as pan "ftlle "Tax Relief. Uncmplormenl h"urancc 

Rc"whoriz,11iOll, and Job Crealion ACI of 20 10," Con,gress ind"ded a provision Ih.1 k"pll"" 

mass lronsil portion <lf lhc C0I1111111Icr benef'l at 5230 per ,"onlh for 20 11. pre\ C'llin~ll reducliotl 

10 $125 per Iliomh. and ~cqlinll ill'quallO Ihe parking tax belief,\. Unfunu naldy, because 

(Olll!rt'SS did nol again (XI end Ihe IrJn:sil benefil ocfore il expired allhe end o f 2011. Ihe momhly 

mll)(imum Ir~,u;il mnOtml W.:IS redul-.:d 10 $125 per munlh on Janudry !, 2012. 

In Ihe meanlim~. the momhly l imit for the parkinG portioll oflhe ""nmUler benelil "1l.' 

incrca<ed from $!3ll per mnnlh II) SUI) per Inonl1l due 10 an nutomatic CoSI ofll\ing in=a.~, 

funher cx9ceril3ting Ihe disp3ril), belween lhe Imnsil and J>.1rking benefilS. 

NTEU bdicvcS il is cri(jcul Iltal Con),\rt:ss quickly act 10 ",inSI~,IC parit;.' between llic 

Ifllng;, a,Id parklng porIi{)t1S of It", c'Omtnul~r benefit. Many \\"o",i"g peoplc Ihal usc public 

trnll~por!"li,,,, 10 gel 10 ~n d from work. rely OIl Ihe Iml1S'1 btoncfil wh,ch has provided much 

nl"l'dcd rclicF in Ihd, cummulin!: COlM .. M~ny ()flhcsc w()fkcrs are >1"'lIlllil1!1. in Ihr cumml 

economic tlim~lc. lind 1I reduclion in the .... ' bencfil~ is im"""ing ~ $C\'ere linmncial burdc~1 on 

1l1l~n. 

Rcinwl1il1g the 1110111111y lransil :\nbsidy 10 a Icv~1 c'Iuaj lO the pa",,"g bcncfillllSfl 

~ncoumg<:l; y."al« I .. ~n;;l t ritkl":ihTp, whTch hdps lessen cOIl),\cslioo on roodw~)'s. rcdl"'c"!; 

""liminn and coo>c,vcs encrl!)'. Fu"bemlorc, il C<:"rtainly m"~cs no sensc filr Ihe govcn"ncnllo 

provide' workcrs "sin~ envirunmcnl~II~, IIdpflll mass I.-"mil a Ic<scrbcncfil Ih"lIlhose dri>'in!!, 

a~d parking pc.."oOlal vchides. 

In addilion 10 prIl\'idil1g.croIlOlnic r.:licflo work~rs 31 1d IlOsitil'cly impacting Ihe 

environmCIlI, e~lcll(l Tng Ihe Ina~ .. I",n,il bcncj;, alro pro"ides la~ relief for the employers 11:\.11 

oftl" Ihl." bc:nc/il. B('Ca"sc Ihe 111= I("JnS,1 is a ~-Iax bendit, ~mployers do nOJI have IOJ pay 

payroll ta~"" on il. providioll savings which can be rei"vesled in III~ company. 11 is I'!;limaled 

Ihal in 2010, employcT!i $!Il'ed over S3()() million by offering this aiti •• 1 b<llefillo Ih~ir 

CmpICl)·ees. 

Mr. ChaimHlIl ~ml dislill)!uished m~mbers oflhc subeommil1tc. NTEU asks Ihol as 

Cf'nl9""ss ton.iders & lax cXlend('1's pac:hQe, ym, intludc an ~lcnslon Mille mass Inmsit benefit 

Ihal will reslOre parily ",Ih Ihe parki"g portion Or ll,e commUler bendi!. altow worti,,~ families 

1<) ",we money Ofl thc;r daily commute .. redu~c trIIllicc""b~SliOl" and improve air quality. 

We would ulso a>k for rour suppun for sl.:md-aIOlW bipartisan legislation H.R. 2412 

illlroduced by Rep. MrGowm.lhc "Cl)nllnlll~r 13c~lcfilS EquilY A,'I of2011." whi,h would 

JX.'I1Il~"C:l1lly t'Slablish fwilY bc:lwc"Cn Ih~ p; r~ing a!1d mass t"'lIlsil portions of the Ir~nsponulion 

fringe benefil, The bill cll"",n!ly halO 14 co-~[\OfIsor:o;. includlng.sc'·'mi mcmbcr.< oflhi' 

subeommilIC~. 
861 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.805

NTI:U 8f'P1"edales Ih" opportunity 10 pmvide ~ommenls 01\ Ih~ im(lQf!DIIC~ of~XI"nding 

the mll~~ !r:IOSil benefil. and ;;[pml.. ready to do all it tll~ 10 "nsure ~,i s critical bc"dit for wor\.;crs 

and emplo)"rs is extend"'" ill the ne"r rlll"~. 

, 
862 

Statement of Neill Gibson 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.806

I. Neill GibIO~, COO of Foculed An~nlion, Inc. in Encinitas, CA, relpe.:tlully urge Congress to extend the 

wind "ne'gy productTon ta" credit (PTe) 3.\ qukkly a~ possible. 

The PTe drives billions of dollarS in priVate investment In homegrow~ American wind powe, each vear. 

have ... en Ih .. wlnd farm near my oou ... ,evita li . .. my community - bringing in oonSI'ua'on job. al firsl, 

and malnlenaflceJobs In the lo~g le''fI. and generaling revel1ue lor ou' community sc~ools arid 

hosoltals over the lIfellme of Ihe project. Increasing the amount of power Ihal Our COunlry Renfrom 

cle~n. homegrown, affo'dable ,esourcells an ucell",,1 thins for u,IO dO - and thll lax c,edlt p,ovide~ 

an Incenlive lor the wind Indusuy 10 conllnue 10 do just Ih~l. 

I u,se Ihe (ommittee 10 lake up an eXlenlion oflhe wind eneriY production ta~ credit right away. 

Neill Gib'><ln 

Focu.\l·d Attention, Int. 

Nelll@~ocul<!dAltentlon.com 

1-858·7]&·9090 
863 

Statement of Neil Milani 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.807

Unlled Slale. House WaY' and Mean. e" mille~

I Ne ll Milani, Wind Tu,bine Conl,ol. E",ginee" Greenville, SC r,,",penfuily u'lle Cong,e .. 10 e>1end Ihe 

Wind eners~ prodUClion ta. credll (PTC) .S quickly " pos,ible. 

Tr>e PTe drives biUlons 01 doll.r'ln priv.le InveslmeN In homegrown American wind powe, eOleh yea,. 

have seen many wind farm. ou, ver~ ru,al ,If us , .. vitall.e their loca l communltle. - brln,ln, in 

commuction job. al Ii .. t, Ihen m~i"ten.JI<e job. in the lon@ le ,m and K,m" ,allns revenue ro, Ih~ r 

community ,choal, and hospiul. Olle r tt,e lifetime of Ihe project_ 

Inerea.lng Ihe amOunl of powe, Ihal our counlry leI.! Irom Glean, homes,own, alfordable re:lOUrces I. 

an e" ellem Ihlnll 10' us I<l do - and Ihi, I •• credit p'ovides an Incem've for Ihe wind indu.try to 

<on!ln u" to ri<> JU,llhol_ 

Renewins Ih" PTC;. an nctllent wav 1-0 cominue 10 ineru,.. US manufaclu,ing, continue 10 p'ovide 

many j<>b. - ' ,om <ommi.,Tonlnl lo S""",.I'ng 1<> operaUon. and m.(rnenan"" for m'/1Y vea" - and 

(onlinu" to develop ,enewable " n" ,1\' .. ,ure"" 

l u,se Ihe tOmmil"'"lo la~~ up an exle",;O" of the Wind enerKY p'oductjon la. "eda ,Ighl ~w.y, 

Regords, 

N~"Miionj 

400 WtSI Forjs Rood 

G'ee",,!I~, 5C ]9605 
864 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.808

NEW MARKETS 

TAX CREDIT 

COALITION 

'JJ"' SIJti'l. .'.'1\ . """ j-hr. w.w.ln;.~"' . I x: """"5 

""">W.~P> iiI." :0;.1'1.1-.1<>34 . ,"" •. "",, ... ,.. li,k ...... 1: 
865 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.808a

Statement 5L1bmltted for the Record of April 26, 2012 

House Ways and Means Select RevenLie MeasLires 5L1bcommittee 

Hearing on Certain ExpIring TalC ProvlsloM 

Submitted by Robert A. Rapoza 

on behalf of 

The New Marlrets Tax Credit Coalition 

1331 G Street NW 

10'" Fl oor 

Washington, DC 20005 

Ch~fnn~" T1beri ~"d Ranking Memb~r "'eJi. I th3nk \'Oil lot thil oppo,tunTty 10 ILiumit testimony on 

beh.lf ol l~e New M.,k"u lnC,~dil C03Iillo,,_ lh" New M3(~"U nIX Credi' C".litkln ("lhe Co.lllfo,,' ) 

is ~ national membe,ship O'llanil t.on represent.ng Community De~elopment [ntit'~ (COb), inveSlo~, 

bustn~SSe5. and community lude's who h3ve)oTn~d o~ed to advocate j.,support oft~~ New Ma s 

l)~ CredTt. The Co~litlon wiS IIrst ",ganiled In 1998 with th~ go.1 01 c,afting a It'der.1 ta~ credit that 

could do for communllv ind economic ~v opme"l what th~ low Income Hou,;ng Tao Cl~dll h d done 

10 house l<)W income /amil es~ in effect. dnving capit.IIO und e,selved reSions or prOle.11 Ih~t mel 

cel"!aln societal &Oall. T~ this case. ~",Mmlc development. 

Th ... Coalition" t~.Hmonv is deslBne~ to d~tiv ,, ' a \I~ry clur m .... ag.,: Ih~ ~w M",k~l$ no. C'Oldtt 

(NMTCI. whIch .... p"ed on U~lnbe, 31. lOll. lias proven 10 be a vital aM Cost effectIVe community 

developrnenllOOI and II must ~ ~'lended. 

Whne It i.lmpe'ativelhat Cong' .... ""lend ttle NMTC IhrouSh 2012 with no e~s than 53 ~ billion In 

allocation authority. we 'tronglv encou'"i!e Congress 10 consider pro"iding a lo nge r I~rm X\l'n~i[)f\ of 

Ih .. NMTC 10 m".imi,,, certainty ~nd eflldencv in Ih .. ma'''''I. W .. woulr;l alw .ugg~t inc,ea,ing I~ 

annual NMTC ·allocalion authority 10 at le ast S5 billion in re~po",e 10 con,luendV 'lIon8 demand lor 

NMTC li"ancing. The N~w Ma","I' T ... Credil htenlion Act 01 2011(1-1.1\. 26S5) add'esses boll'l 01 th~.e 

issue, and .hould be con.ldered a. p.1I 01 the t •• extender drscu"ion. 

Histor:Y..9f the NMlC 

The NMTC was au thorl.ed in Ihe Community Renewal Ta. Relief Act of 2000 (PL 106·554) and Wa. Ihe 

..... sull 01 a collaboration betwef!" a Democratk resi M ~ Bi ll Cllnton~ aOd Republic.an Speaker 01 the 

House - Dennis HaSll!rt. However, the re. llns piration fer th e lelislation came Itom fo rmer Housinc .nd 

U,b • ., De ... lcPlflenl Sec"'! ....... ~n<I Repvblkan ConSfessm~n J~ck Ke'1'p, who argu!'<! kI' gr .. ai~ r 

inc i~e, to p,omote p,ivate ",ctor inv~'tmentin communily ",vitali,ation efklrU. 

Ra ther th.n employin, the federal s,ant·ln-ald model President qinlon and Spe.ke, Hastert worked eff 

the Kemp plavbook and put togelher a les" lalWe piC~.ge thol indud~d S25 billlolj In new "", ..... 1 

autho'ity almo,t e;vJu,r""ly almed.t u,Tng t .... ince<\H"'" to encou,age p,Tv.t~ in ...... lm<'f1t in 

~coMmlcalfv dl!lreued communities. Amone these tafieted tax incentives: th e New Markets Tax Credll. 

~eNM C provld .... mOde~1 feder.llncenHve-. q edlt ogain,! I •• liability - to elXOuragt priva1e 

inv ... lment in bu.ine.;",.and economic dev~opment initi. trvt>. located In I<)W income urban .nd rur.>1 

1.131 G Stm:L i\'W. I~' I'k""r. WJ.;hTIIf.,'t'.n. lX': :0005 

~Ol·:!O-t -tjOO .I~ ~· w'·W3"".103-t · " 1\" t""'l ... "'~i'in".'''G 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.809

communltiei, NMTC nv~stment i .re 1~'lIeted 10 e~onomi(~lI v dlitreiie<J WfTlml,lnities th~t Ia.<:k ~«(eSi 

10 Ih~ palient ~.tm~nt capitalthot I. " .... ded !o suppon.and grow b~siness~., crea!e a nd inl.ln 

jobl, and Sfne,,,te economic dev~!opment. 

In orde r 10 d<.>live r oapit31 to he e t~rgeled ' new markets', ~e St<l lut e(r~~led .. new (~leE0'Y of 

1"",,-,tmet1t Intermedia'Y, Community D. velopment Entitie. (CDro). CDE. a~ the InvestfTI~nt ~ehlde lor 

t he NMTC In exchanse lor ~e NMTC, ata~paver ma~e5 a QuailliNl eq uity Inve !l m~nt (QEIII" a COE. 

The investo r dalms a 39 percent t<I~ cledit on the invellme nt over seven 'fIlJr'. Includ in g fiye pe rcent 

~nnu3l1v for the flt!.11hrn Y"." and ". f"!'fCent on yur< four through SeVlln. 

The NMTC:. What t!!~e W~ ttave leaned 

The NMTC h~. a lr~<: k re<:ord of .u«e .. . nd tnere" .ub,tan\i~1 rviden(r th.tthe Credit has en(o"''''Bed 

private st'Ctor invtstment In economlcaly dlslfeSstd urban and rur.tl rommun itles and generated 

fin ancing for. wide range of bu.lne>.e.~"d co",m~n tv re v;ta l. t~n effo rt> thaI llJve helped Jump 

rotan loul ~on"",ie. ~nd crutedJob •. 

Here ar ~ ~ few (If measUrJble ImpiCts of the NMTC: 

Sfnc@the limNMTC"llocatlons wereawi'droln2003througn2011. mOle lh~n $26 b11t!on 1M 

n.ej\me~t. h •• , bt!en mlde in low intorne (ornmunitie. a.l dire(t result of h~ NMTC; 

Atcording to a 2007 Government Ac<:ount3bllily Office (GAO) Repen. 88,. of the NMTC investors 

surveyed indi.:ated fhe v w(luld rot havf mad~ the nvestm~nt WI!hou! the Incenlivf 01 the 

NMTC. Almon 66% of lhe Inve!<1or< r~ponfd~" increa.e in the ir ,nv~'lment aClivity in low 

nGom Gommunit;e. W'"""W 01 the NMTC; 

In lOIO Io "e. ccor din i: to data from th~ Tr~a y O~part n~nt" COFI Fund. Inve'tment,ln 

NMTC bu,ine .. e 'tot.led $9.5 bi llion, of which 5.0% wa. gener tfd from <ou"e, other than the 

NMTC direct '~W!51ments. These ;nye51",ents cre;lted lmo~t 70.oooJo~ i"eluding 38.000 

con,lruClion Job, - all benelirtirclow Income communitle ,; and 

The NMTC h~. be(crn~ a vital s<; uf(e 01 cap;t;,llof bu.ine ..... . tim<! when credit i. d iHi(uh 10 

5C." 'C , nd the dcm. nd lor the ~Mn;: <onUnue. to gmw, Sin"" tile fI ' fIIMTC lI o""t1on' were 

award~d in 2003, ove,~11 d~m~nd for NMTC a llocations hal ~~Cf~dfd the " mounl ava l! .blf by 

""~ r $190 billion. 

The NMTC; A Cost Effective Investment 

Th e <0<1 eHectiVl!ne" of the NMTCi5 ,omethlns thai we urge you to consider as you look altne , .. 

r,trnde". By any me.su re. tht.NMTC ~rov'd r ••• ub.tonl;.1 ",Iurn on thr Jed~r.' inYl!Slm<'nt. 

Th e lotal <O$t oJ one do llar 1n NMTt: Invonmentto t he Federaiso",",nmenl, a$ measured by Joregone 

la~ revenues. 1$ appro. ,matelv 16 ce~u. 

What doe, th), mean? 

1.l..l1 C Sm"L'!. , ~'\\'. 10t h Floor. WJ.~h!I~·1J\Il. LX: ! OOO5 

~m· !0-4·-43"'" fJ.X: lO'·W3"FJ.l 0" "''' .nrmco'jlirinnJ!n; 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.810

U"~R 2010~. ~~ e.~mple, NMTC '""e>lmen 'I!>I~ led $4.7 b; lio~. The w.;l lotne 80Vernment 01 

that 54.7 bllllo" In NMTC In"",.to,,,nu is Sl.ll billion. Th" rerurn 10 Ih" RO~rnm"n' Included 

68,000 JobS al a (OSI 01 517,Il00 per job. 

111. ~I ", Impon.nt 10 "1lI"1~.1 hI r~lu.n 10. $1.2 1 billion. Ih" • ., ..... ~. ~ 10101 01 $9.5 bllllo" In 

p,oJ"([' fTnam:.,d in communltie " Eve.v dollar 01 •• ""nu. 10'8ane by Ihe lede ,olso""."m"nt on 

NMTC resu lted In $8 in p,lvale Ir,ve.,ment in communll;e •. 

The Tal Rellel, Unemplovment Insu •• nce Ruutho,lzatlOn, ~nd Jo~ Cr".Uon Aet 012010 extended NMTC 

for lOlO and lOl l wllh SJ.~ billion In annua l c.~dil aUlhoritv. Acco.ding to th" Jeinl T •• Commln .. e , Ih" 

10 ve., '"Yenue "Slim3le •• sod aled wll11 1hat credil .ulho'ity tOIJled $1.81 billion, or 25,1\%, 

The NMTC at Work in Communities 

Th e NMTCI • • ta'ileled Ia. ct~diL C"' !"~~' .uthO,IIed Ih .. NMTC with Ihe de •• In'-"nl of 'purrlni 

Inyestm"nl inlO 10 ..... inco",,, communltie •. Th" NMTC Slalul" and IRS reBulatloM requIre that "MTC 

investm .. nt. ben~fit buslne,,,,, ~'Ied in low Income (ommunltl ... d"nned." cen,u, 1<0(1. wilh 

pov,,'t\< rale. of al lea.llll% or whe'e median iMo,ne, do nlll .. ~t~ed 81m of Ih ~ area ml dian, 

And vel, COE. (ontinue [ 0 inve't in eo.nmuni"e. wilh economicdlsl'"'' enter!. thol exce.,d what l, 

.equi.ed bV law. In fact, 72'" of the NMT_: inye.tment. ",.de in lOlil we ,e made in (ommuniti ... with 

povert'! raIl" of 30% o. B,ule., wh~ ... income. d>d not ~xce d 6O'l4 of .,ea m~di.", and whe ... 

unemployment .. t .. , were 150% <ll lhe n,'l"'na l average, Mo.e than S4.7 billion w •• Invesled In 

busln"sse. In «:Immunilies wh ..... lncomes wer" Ie,' Ihan 60'" of a,'" median, helping to Ip ur Job 

<,eaUo" and &00<1 pall,ne emplovme nt opportLlnitle" More t han 51.9 billion waS inYest..d In bu,ine.'es 

10000ted in communiti." where lI<'"e111' ."tel e~( .. ed 30%. OWr $1 billion wentto flon-melro 

communities. Twentj'-Ih,e .. pe.(ent 01 NMTC fin~"dn8, o. mOf~ Ih.n $1 billion, Wa, inv stPd In 

businesses Iocated:n (ommuniti"s thaI '~ bjt all three of Ihe abo~ hlf:h '~ ((lIe, I •. 

E~amp ~s ofNMTC linamI'd p.oject. ond bu.in .. "e~inolud .. : a ,upe,ma.krt in Cc lumbu., Ohio as ....... 11 as 

a small m~rket In Notth3mpton, M3ssact1u,ctts:. hnllh cenl", in rU ,al Loui.iana ,n we ll as a 

<ommunltj' hulth c~n e. In downtown Harl~m; a manul~Clu",rof ol~ .. en.'BV ledmoiosy p.oduct<ln 

Ne ..... Mexico ~/ld sUSl~ina bl e wor~rng forest projects in bOI~ Maine and WeSl VirgInia; a newsp~per 

publi,h~r I" R~ad ("g, ""n",yl"anl~ and 3 pharmacy Of! th~ ~I lt h~ad Indian .~~e.".t"'n I" Montana. 

The New Markel! T •• C,edit E~ ~ns"'n A,([ of 201 t (KR. l6SSI was int.od ... co:d by Con~r1!S$m.n Ge ,lach 

and i<currently «:I',ponsored by 63 Rep,·e.ent. ti"", induding 13 members Oflne Ways and M"ans 

C<:tmmlttee. Th9 leel\l.tlon would Ill<tend (ne NMTC for 5 yeo ••. from 10121hrougn 2016. and ptOYlde.$$ 

billion in n~u~1 Nr-'JTC ~l o~~\IOn illltnorilY. In ditiot1. H,R. 2655 would ro ~lde lt ~rnative MlnimVITI 

Ta _ rAMT) ,,_em pHon lor NMTCinyen", .. nts. 

1\11 ( ; $rn>..1. :\\\'_ 11lf11 r:~, .. W!k;hi"t,"t" n. lIC :IXlO," 

:ol !O '~.wo·f~ \.: 10:-.\\1,-3° .... . " ."" .IH1Ih,\.!:"lJillou,"fg 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.811

lonE t .. rm ~t .. nslon' 01 lax pollcv provide Dusine,,,,s with much "" .. d .. d certainty. Fo. the NMTC 

,peclflcallv, we h~v," found thit 10nRe. ,""temions DocS! the aedi\"' efficiency ind effe-ctivenes •. 

w~ witnessed Ihis boo!! ~I e, Cong.el! I!~ ended tM NMTC 10' two year! (2010 and 2011). Thiswal the 

fir<;1 m~ll l""ar exren ion .ince Ihe orie i".1 ",~n·rta , NMTC aUlhoriMlion and it provid~d IMeslor. 

wilh. g'eat e' ",,,,,I of ~"~inly, ,e.ultlnn in •• uri'" of invntmenl. In lOU, the .ec,,,,t! yea' of thot 

~lf"' on , CD~ gt'ne"led $5.7 billion In NMTClnv ~'l men!.S, the moSI Q[I activity Ihe NMTC ma rket h~s 

e ..... se .. n. In jusl two I""~", b.-twe .. " 10M and 2011, NMTC In .... nmenllnc",., .. d by . remarkable 67%. 

We b,"II .. "" Ih ls , u'@e inin"eSlmenl acll"lty wa, nol an ~~cld ent. RJlher. it WaS In 'esponse 10 th@m. rkel 

certalntv crnted by. two yea, e~tenslo" , 

Th e 2007 GAO report clled u,lie' In Ih l, testimony In diCMed that lhe NMTC Wai iI taclor, if nQl Ihe 

principallaCIOr, conSIdered bV Inveno,", 'Nhen evaluating ce.rain ,nwslmenl opportunities In low income 

communltles_ If there were mo.ece'taj'lty ... ,ardlne tne availab ility 01 the NMTC trom year to I""a r, 

inve'tor Intere.1 would incre.,e. Without a nea, t .. ,m extension, inv~51or n'e.esl will ,urely diminish, 

capi,al w,1I go el.ew h~, , ~nd Ihe eHiciende. ~ch'eved " Ihe NMTC m~rIoe! wlil lH' tOil, 

Th e Coalition _1.0 strongly ncoura~e. C.ong,e,. to consider In ereuing the annual NMTC credit 3uthofity 

to $5 ~llIIon , Ihe level p'oPOS4'd In Ihf ~W MarWel. Ta~ Ctedlt Exten,ion Act. Dem~nd for NMTC 

.lioc.lio"s con,istentlv oUlweighs ."aliable NMTC .ilocalio"s_ Sinc~ the first NMTC lIocation' we,e 

-awarded in 1003. CDEs appl(c~n ' h ..... requested mo.e than $2'2S billion In allocatfons whil e l total 01 

sn billion in (,edil aUlhority h., been a"ailable 

While billtons of dollar' have flowed to eommunlt,e, t'adltlona llv lef\ out of tt.e economic milifT5tream. 

t~ e .ky hlg~ demand fo, NMTC .uthorlry call. for a lar8~r . nnua l allocation. 

8a",d on whal we ~now. If Cong,~s, I"c'~ ,,,, d,e NMTC to 55 billion 1M ",,"ual Credil authorily, we will 

see more than $10 billion Il'"r yu. in additlon.1 i"""Sfment in di,t,es",d communit; .. , and the <leation 

0' 'elenlion of at lu.t 70.1)00 Job, al a len yur co,IIO the 10"."nmenlol $1.29 billion. 

AM finallv, the New Milrkel! Ta. Credit [xtenlion Act would prcvide AMT ,ell~1 toO NMTC invello,",. 

IherebY brln8in~ the Ctrdlt In p~rity with olhe. AMT-e .... mPI credlll like Ine Low Income HcU£lnlii ~~ 

C~II and Ihe i-lislorkT3X t:,~dil . Wllho~II~ s mod ifical>on, tne NMTC will conlinue to M 31 3 

disadvanl,,£e in th e ;n""stc, m~.ketp atl~, In ~ddil on. ~'c""'ine AMT ,elief forth~ NMTC would 

efTlOU",se ew Inve~tQ' ~- inllvding communitv ,","n'l cur~ntly 'estrained by AMT - 10 enler the 

market, We wou ld se e a broadening of the NMTC In.estor b~se, Incr' ... , .. d competition and efficiency, 

bette, p,lclne, ant! more sub.idle. colne 10 Qualified buslne~e. _ 

In closinl, the eoalltlon was pleased 10 neat '0 many Member. 01 eo",re .. , l~ cJud ngse""'.1 ol vour 

di.tlngu;;hed colleagues on the Way. and Mean. Commiltee, voice suppo.1 fo, tne NMTC duringtne" 

te5llmony belme the Se lect Revenue Subccmmittee on Ap<tl26"'. I truSi you w~1 continue to hear from 

NMTC supporte" Irom both .Ides oft~l ai,le w~o have lefn Ihe impact 01 NMTC Investment, ln tn .. l. 

home district, in the form olg.owln@ bu.ines .... , n~w job,. and community "",it;!li'3t,on proJect._ 

'.11' G SlTlc(. :,\\\'. 'Q1 h Flo . ,r. W;I';oin!,,,,,,,. I)C !OOO:'i 

:- : .0.4-.4 .:;oo fJ.~; lW-.19H<lJ.4 ·W" nnlTl"\.'l'\ljli< 'n ~ In,; 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.812

Attachments: Two case studies and the New Markets Tall Credit Board of 

Directors. 

OHIO BASIC MINERALS, JACKSON, OH 

CO£: Finance Fund 

Soulh~m Ohio's rur.l lackson tounw Is known lor pl~lure~u~vI~ws Qlt~ App~lath)an fOOl hili, and warm, 

ho<!>i ~ p..,pl •. ThQ r~glDn i. homQ 10 «IVr .... 1 m~n fa<lurins <omp~nle' .n..t uIIII,,, ckson'< abundant 

n;II" .. 1 rewu"e., w".lIh of ,)<flled worl< r " and IIIW U.n,port.toon <o>! •. 110we •• • , in tOO.v. ,,,,,It-! 

etanomy, .mali bu.lne .... need H( 10 c~n n"" 10 ,fOW ~nd "ou,i.h, onto Basic Minerai. (OBM) •• w a 

ch~nce 10 nourl,h and ,e-"talile s<;hfa.de, II< Son Sand and G'."el,. ' maillackwn 1'!T'lIy·owned 'et'Ullonal 

sand and &",,,,,1 pl. nt •• nd to ch;p in.o a &J4d mine of polenti.I'n an . dj. <e nl ,i ,~ ... nd quarry_ Th" would 

~letM company 10 in~3r,(O Its )If"OdUlt otIfrlngs, t)tpand 10 Sl'vtf3i neW IndustrltJ, ftaC" mO'~ 

<U>lom ... and brlns morejoll. and Inco",", to lad,on, Mowe""'.ln order te begin prOOLX'ng large quantltle, 

nI,mca prodLXts, Ihe plont required eApan.lon. 

10 mike thi> e.p.~slon a rn~tv, the OeM management t~a m bqgon IOO~l lI g 10' li nc ~ p.nne". Thro ugh .. 

referr.l lrom Ilun,ington B.nk. ~e in -S.,me •• I, C~O 01 OBM, me. with ~in.nce . An inl,I.1 inte rim I""n 01 

$1,1 mi llion through fln.nCO! Fund·sC~pit.1 CO'll<lflllion w~~ provided. Sev~rl l mpn\ h~ late r thi. loM WJS 

refinanted .• nd incre" ",d 10 $2.45 milllDnlhrD ~h fin.nce fund', New Marke .. T. ~ (,edit P"'grom. Tn~ 

S750,OOO incre.,e Tn fundins Uow~d lot \he purel>.", of addil](lnll m.chinery ~nd equipmenl. 

The panSlO" 01 tMe JackSOn ant bec3me a realitv when (on.tructlon began in Ja nU3rv 2009. A farge-sc3le 

induslrlol ,.nd dryer w", e re<led, enabli,,!! CaM 10 p",dLXe dry .;lk ..... nO .,,<1 Br •• el, e'g&ing equipment 

. nd. r.ttfert tow~r building were .Iso odced a"d Iwo wore"",,!-I' buildin., were re ufbi,h~. Th. projecl i • 

• till in p,ogre .. , wi." mort uPKrades beine addea, b\ll OBM , e~ lu nctionll.ince5e plembPr 2009 - a 

mere nine m""tn, .ince cOIl.trucrkm beg. n_ 

1he-S6.7 mill ion proje<:1 em~ d clou te JS tOn~"' ed workers. OBM has,@\;)in~d seven inv~lu3blc 

Sc der & Son employefi nd pl.ns lo-..ld ~\ I~">I)O Jobs over I~e nut fe e ~Nri. E~p;lr.dln& e p nt'i 

cap.bll~le, 10 ~Xl "' nd d,V ,1IIt1",nd Irtd K .. ..,I p'ooucu h., m.d~ II PD"lble fo, OBM 10 ~ac~." . rray 

~I ""w ",",ke' l 3n" In''.~'''' "t~t;" .ien" ,"nllV. l.d"M·. ~ S<hr.rt@t lO Son "tility I, nnw newer, 13,~er, 

raster ao<l more rObUSt. AS a 6u ~, job grOwth .nd income.re steadi ly rtturning to the Indust,iJltown. 

Finance Fund Provided: 

An lnltlafloon 01 SL7 mil lion. wbSO!'QLlently rellMrlced .ndlncreased by $750,000 lor a tOlal 

amount pf 52.4S mlilloo, 

fnt;r~ pm!"" <<><1 about $6.1 mil,ion, Finance fund provltl.-d fund, for mo.e I"a" 15" 01 Ih& 

project. 

Project Results: 

Clo.e to lSjobs were <reated lor the co,,'~le. renovaUon. 

7 In ·hou' .Jobs weft malnlalned . 

.30+ job. will be <relIed in the nOt three VUrf. 

')3' (; Snw •. :''''\ , lolh 1·'10/)1'. \\'~hi"!\I'~, 1 X; ~ 

!O:--1<4-~.iO" .t-' 'f: :01-.\<)J-30M . """,."m= " llt,,)1\ ..... 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.813

RIVER VAllEY MARKET, North;:lmpton, MA 

CDE: Co;tst;tl Enterprises 

Ri.~'V~I ~~ Ma.ketIRVM) I" NI>fthampt<l", Ma .. ~ch ~,et" '" new c<lmm~"lty membe"<lwned .nd 

OJ)~r.t.d '<l<>d market, ",Nch wlllal,., .e",e t~ ,urroundlng P!<>"ee. V.II .... town" RVM' .mi<Slon" la 

p,ovid •• ju<! ", htpl~. flurtu,,,,, • 1""01. Uvini lOconom~ th.augh coop.'.''''n. Tht u>opt!,at,,,,, i<o-op) 

will Sf)eclOlllfe In fresh local orB~nk loods .)nd e~cep!lo!\a l (",tomer Stl\';u. As " dtm""~ lc,llly owned 

OfC""iI3tion. th. CO-OIl will ~mpower mern ber,ow!l<!,s to met! thei, mt!tual nted. hil~ building. more 

"'cu'~ ,v"e," 01 'U5tainable ~irf~ultu"'l ,Ieve lopmentln the Conne<tk:ut River VaU"",. 

New Ma,ket, lox C,e<!i'.INMTC.I, ~Iong ,.,ith . $400,ooo a'"1\1 from t~ . M . ... ch".elU lo:chnalol!V 

Collaborative fOf i" B'een bu,one" pl.n, "lIowed the lo-year old ~ 10 build Ihe'f li"l f~I.'1 facility, . 

17,000 ~u&,e 100t ,ilve, IHDScertified ~reen-;1esi£ned buildine. TM proJe<1 i. awa,h1" !'Co-lriendlv 

lu tures. Indudlng tl'Ie .<ld,tio" of ,olar p"nel" Ngh .• ffiei.ney ~I.ttri' ligM,t hat aUf(lmatiGal1y dim to odlu$I 

fa, nalu,.IIiMhtinll., ano" ,v,rem t~at Ulili, u the wan" heal f,om ,e ri~e,ni<m 10 heal hoi watef. 

lh~ Ma,hi op"r>ed ~ doou on Ap,II10, .1008, and bV June 10th had hi"'" al ,, w <la/f. Within It, lir<! yea r 

0/ cper.ticn. more tnan 1.100 W h"".eho dioin d u member-owne",. brinl th~i, tot., t<l ove' 3,7<;0. 

tn IIVM', firn five month. In ope,al1cm, thei, ,ollonol food purcha,e,total .... ""'" $1 million (ndudinl 0","' 

$)00,000 from arU f.rmer ~ 'nO O'lef $700,000 from other small 10,,,1 OIno fegiooa l bu~n~..,1' comprising 

nnrlv 50s cl U,,,ir .,."".11 f<>Od .nd grocery purrh •• ",. Over 'he ,.m"- tim~ pi>.lod, AVM .ith@r "'<Vd~d Or 

oomro"ed o,,~. l5 Ion. cr 78,41" of their latol 1'1." •. 

Thi. project w3. a true communjly eHort. bring.ng togelhe, Mo'ean S13n lev aM l .. nsC.pital a< equity 

inve'to .. ,.rId Sank of We,I •• n M",,,,ehY,e n,, Coope"li, .. Fund 01 "lew Enaland, We,le.n Ma.,"ch",etlS 

Enle,pfi,e Fund, Local Entefllri", A'''sta",,, fund. "IC8 capito! ImpacI ond North~mplon CommunilV 

COQ"eraU~f Markel ~ lend ... , eEl C.p,tal M.nagen,enl iCCMl) pro"';ded $7.4 In NMle\ fOf !hT, d".l, which 

,I"",d rebru.r~ 9, 2007. 

Key Benefits: 

~romole.loca l.Brfcultu", .nd la i, Ir.de w,ln loul &rowe ... 

Suppom. nttwOf!< 01 IMependenl local <GOP" 

H •• creOle<! 81 new jobs wilh aood p~v .nd b""efiIJ, 

CommllmtnllO hire IO<:3I1v Irom il l_ree Ultino population and oller free [SOL trainln, 

f.ull1Vj<Si "~r lEED certTr.ed. 

5" 01 pow!r Irom solar pa"elS. 

I.W {; Sl"-"I .• \:W_ ,olh Fh". W,L.;I"n;:Ir>n. IX : ::000:;-

<l !-U) ~- h~~ : "!·l"3·3 <l.H ~.",m'-'Y>J.li! j() 'Ulrg 
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New M arkets Talt Credit Board of Directors 

ANNIE DONOVAN (P RE5ID NT~. NCB CAPITAL IMPACT 

CARL POWEll (SECRETARY), THE INTEGRAL GROUP 

JOSE VILLAlOBOS (TRE/l.SURER), TELACU 

F~ANK ,ALTMAN, COMMUNITY REINVESTMENT FUND 

DAVID RECK, SHr·HHP 

KE"1MIT BILLUPS, GRHNlINE VENTURES 

NELSON BLACK, FLORIOA COMMUNITY LOAN FUNO 

D.".VE IlLAS2JCIEWICI, INVEST OETROIT 

KEVIN ems, lISC NEW MARKUS SUPPORT CORPORATION 

ALSOGDAN, MICHIGAN MAGNET FUND 

KEN BRElENOFF.SEfDCO fiNANCiAL SERVICES 

TONY BROWN. RIVIERA BEACH CRA 

DOUGLAS BYSTRY, CLEARINGHOUSE CDFI 

R08ERT DAVENPORT. NATIONAL DEVflOPMENT COUNCIL 

HEIDI DEARMENT. MONTANA COMMUNITY DEVELOPMENT CORPORATION 

JOSEPH FLATlEY, M.".SSACHUSmS HOUSING INVESTMENT CORPORATION 

PHIL GLYNN, TRAVOIS NEW MARKETS, Lt( 

JONATHAN GOlDSTEIN, ADVANTAGE CAPITAL PARTNERS 

EDMUNDO HIDALGO, (HI(ANOS POR LA CAUSA 

JAMES O. HOWARD. JR. DUDLEY VENTURES 

RD8ERT J['~KINS. REN"ISSAN(E EQUITY PARTNERS. LLC. 

ARLEN I("ANGAS, MIDWEST MINNESOTA COMMUNITY DEVELOPMENT CORPORATION 

JUDITH KENDE, lOW INCOME INVESTMENT FUN'o 

JAMES KLEIN. FINANCE FUND 

OEBBIE LA FRANCHI. NATIONAL NEW MARKElS FUND. LLC 

RIOC LABEll, GII[AT l.AKE5 CAPITAL FUND 

PETER LAWRENCE, ENTERPRISE COMMUNITY PARTNERS 

JOHN UITH· TETRAULT, NATIONAL TRUST COMM. INVESTMENT CORP. 

FAR5HAD MALTES, WISCONSIN HOUSING AND ECONOMIC DEVElOPMENT AUTHORITY 

I.U' (; S{n. ... -r. S\\'o 10111 Flour. W~~hjn~'t'ln. DC .woo;; 

:'0!-!O4· 4.:;000 f;t~ ; !·393·. .\ -I II'II'\ ' .nnlfl.'t'(l-JJiti, In.ore 
872 

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~ICHMOND MCCOY, U~BANAME~ICA 

RAY MONCRIEF, KENTUCKY HIGHLANDS DEVELOPMENT CO~PO~ATlON 

MICtIA(lNOVOGRADAC. NOVOGRADAC & COMPANY, UP 

GARY PERLOW, REZNICK GROUP 

RON PHILLIPS, COASTAL ENTERPRISES, INC. 

MATTHEW l , PHilPOTT; US BANCOR? COMMUNIT'!' DEVELOPMENT CORPORATION 

TERRI PR£STON, eAKER TIll Y 

TYRONE RACHAl, TH E ATLANTA D£\IELOPMENT AUTHORITY 

Ri~DHIKA REDDY, ARIEL VENTURES, LLC 

MATT REILEIN, JPMORGAN CHASE 

MARQUIT,6. RUSSEl, NEW MEXICO ~IN.o.NCE AUTHORITY 

£0 SEKSAY, ROCKLA NO TRUST 

HUGH SHORT, ALASKA GROWTH CAPITAL 

KENNY SIMPSON, RUllAlENTERPRISES OF OKLAHOMA, INC, 

KEVIN SMITH, COMMUNITY VENTURES C'ORPDRATION 

CtlM TURNER. UNITED FUND ADVISORS 

NANCY WI.GNER·HISLIP. THE RE INVESTMENT FUND, INC 

JEFF WEllS, OPPORTUNITY fUND NORTHERN CALIFORNIA 

'H' rr Srrc<-1. ;\"\\". ,olh Fh .,(. \\ \l.~ hill),.'1."". DC. lO<Xl.i 

101-!O-+-.. ; OO. f~~: !O~- 19J ~" . 11"\1'11 .llnllCC(.:lIiri, ," .• "";.; 
873 

Statement of New Progressive Alliance 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.816

N~IH~: IOd Critlith 

Addres~: 215 Piedmont "ve. NE Nl106 

"Ibola, OA JOJ{)8·JJ)5 

Phonf Number: ~().I·254 27Q6 

Titl~ ofHearillg: l-leMllig 011 Cc-naln Expiring Tax l'rtll'iSioos 

TIK.' New Prog~5Si"c Al1i~nce res~lf\ll1y u~ Cong~5S 10 cXlend Ihe wind cner@.)' 

prod"':lion lax credil (I'Tel and make il :1'$ p""nan~nI as the fossil f\l~1 subsidies. The PTe 

Tt"Sulted in billion. of lIo11ars in pri"aK' invffilllcnl in hOIll~grown American winll (lOwer C'~ch 

year. This in IlIr" brings In co"mu~lioll jobs i'nme<iialcl),. mainlcnallecjoils In the long ICOlI. 

and gcncr:lles re'~I1U~ for ourcol1\l1\w,j,y schools and hospit3ls over Ih~ lifelime oflhe project 

This in tum help'l our national seCUrilY and tCOlIOmic ,'olllpe1itivcn,·;;s. Inc ..... asing lh<: amount of 

(lO"'~r Ihm our country gel.1 from dc-an. IKlIlI~gmwn. ~Ilorlbb ,' ..... S<lUrtC ~ i~ un excdkm Ihing 

rur us lu d" - "lid thi, tax e",lIit Pf".ides an in~enli,c for the wind industry I" conlinue (" do just 

th,L 

In the past - ,,,,lIkc fossil ii,d \lbsidi'" . tal( crt:dits. ~ranlS, ~ua"'nK'Cd loon!!. and frrc 

clcan ups - wind ~l1erg,y PTCs have bHn allowed 10 periodica11)' ~~pire wilh lite [lredictable 

,,'slIlt of k'SS "ind cnerID', Denmark - a counlry scared) bigj.',cr than mClro Allan,a - prodlt<:~ 

25% wind C1ICtlIy anll is 011 trad 10 produc~ 50% wind C1ICtlIy by 1020. The d itn:rellce is public 

pOlic-),. not lack of technical e,xpeni'il> in thi" Unit~'<l Stales. 

'!"hi" New rol!rc~siv~ A11ianec urges Ihc committee 1<) lake lip R pennalK.'nt ~tel1siOI1 of 

lite wind energy produ~lj on tu ucdillillll1 away. 
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JE rera ~i3Y~ 

Written Comments 10. the Record In Support of the Production Tal Credit fo, Wind 

Energy Folcilflles 

Hearing on Elpiring Tn Provisions 

House Ways and Means Subcommittee on Select Revenue Measures 

April 26. 2012 

Comments !IU/;lmi/lad by: 

Jim Roba 

President and Chief Operol ing Officer 

NextEra Energy, Inc, 
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Chairman C~mp, Ranking Member Levin, Select Revenue Measures Chairm~n Tille", Rankin,g 

Membel Neai and esleemed members of Ihe Uniled States Hou$!':! Ways and Means 

CommiUee: 

I am PresKlent and Chief Opel3ting Ojf;Cf!1 of NextEla Energ~, Int_ We ale a leading cleaoenergy company with revenues of male than $1S billion, more than 41 ,000 megawatts 01 

generating capacity aM appro~lmale y 15,000 employees in 24 slates and Canada as 01 year. 

end 2011 . Ne~tEra Energy has Ihe second largest fleet 01 power plants in the nation. capa~e of 

producIflg Ihe electnclty needed to power more than 11 million homes, Over tne last ~ve years, 

we have invested more than S27 billion In C<lpital proJllcls focuslld on buildillg Amenca's clean 

energy infrastructure. The$!':! projects have created thousands of Jobs, and imoroved our ability 

10 generate electricity from domes!lc sources of fuel bolh of Which are key ingredients for Ihe 

Unlled 5tates' ec(lnomic growth and prosperity 

Ne~IEra Energy has two major SUbsidiaries: Florida Power & Ljght Company (FPL) and Ne.'Era 

Energy Resources, LLC 

FPL is one 01 the counliy's largest electric utllities, serv,ng 4.6 million customer accounts 

across naif of the state of Florida. FPl's elec\li~ bill for the t'1Pical resldentral customer 15 

the lowest among Florida's 55 electric utilities and aboul25 percent lower man Ihe nabonal 

average. Lower electricity plices foster business Cfealioll and growth, and also provKle our 

customers With greater disr;retlonary income to Invest. or to spend on other goods and 

.services, fPL delivers power thal;s not only affoldable, but very reliable. FPl ra~ ks 

number one fn selVice reliabilrty among lnvestor-owned ulil~ie, In Florida. and one oflhe 

best amoog all utlillies in the na~on 
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Ne~tEra Energy Re~ources 15 our oompet~ive energy generation bU51nen operating in 22 

stal"s and Carlilda <IS 01 yeaH!nd 2011 in lotai, Ne~ Era en,,'gy Resource'SIl"n"'<lt,,;m 

portfolio would rank as a lOp 15 United Siales Ulil,ly in rts own right 

NextEra EnerllY lias a ~ery clear plliJosophy. We believe an energy company can be low 

cosl and clean allhe same lime. AI1-d our actions pro~e it NeKIEra Energy IS IIIe prototype 

"all 01 the abo~e' energy company. de~elop'ng a diverse array of generation teCllf\Ologies 

and fUet!! \hal are clean. efficient al1-d produced In the United State!!. 

Spec<~cally . NexlEra Ener9Y !las done \t1e followrng to help the United Slate. pu,!!ue an "al l 

of the abo~e· energy stfiltegy; 

First at FPL, over the th,ee.yea, period from 2011 Ihrough 2013. we willlnv~st 

approximately SID bil ~on in our home state of Florida. Thill investment will strengthen and 

improve our electric generation and delivery system, and 'mprove our Industry-leading 

rellablHty . <III while helpill9 to keep custDmer bills low over the long term 

FPL's ,,~eSl en's 'n new clean generalion infrastructure also reduce our dependence on 

foreign 0,1 In 2001 , we burned mOre than 40 million barrels of fUel oil - <llmosl all of ~ 

lmJ)Oned Irom O~erSe S - to generale ledrjc~y . This year. we are projecting Ihal we wi ll 

burn less than 600.000 barrels. That Is a reductoon of more than 98 percent in jusl 10 years. 

which is alremendou~ benefit to our customers Wile" the prieto 01 oH I$.once agal" neilrlv 

$100 a barrel. 

Pase 3 cf 7 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.820

Seoono, we are eXpand'ng our use of nuclear energy. We are big beffever.s in safe, reliable 

lero·em'~S;O A nuclear power, In facl we have Ihe th,rd-<argesl nuclear fleel ln lhe Un,ted 

Stales. We ale curren~y ;nvesling more Ihan :i3.5 billion to increase the amOUnl 01 power 

generated at our nuclear sites in Florida and WisconSin, adding approximately 650 

megawatts of clean, reliable geflf!ratton and ,nveslin.g heavil~ 1f110~ l communities_ 

Third, 11.1 NexlEra Energy Resources we are bUilding more fljnewable energl faCilities: we 

are currentl y worldllg on our largesl·ever backlog of projeclS We are the Uriled States' 

clean energy leader, Ihe nallon's largest generator of renewable electflc,ty, 

NeXIErlI Energy Resources' WIM fleet includes approximately 85 wind farms ,n 17 itates 

and CanCida generaling over 8,500 n'egawatts of wind energy This is 0 ..... r-50 percent 

of NextElil Energy Rasources' ovemll genelillion capacity as of year~M 2011, and enough 

wind energy to power over 2 million homes, /<IexlEra Energy Resourees plans to ,nvest 

appro~'mately S2 5 billion on new 2012 Wind generaHon In the United Stales 

As lor solar power. our fleet includes facilities fn New Jersey, New Me~ICO and California as 

well as an additional-$3,4 billion ;n projects under construction in California and Spain. We 

currently operale about 315 megawatts of solar. anCl plan to have an aClClitional 850-950 

megawatts of solar online by 2016, We were the first company to bring comTlercial-scale 

solar power 10 Florida, and we can now g6nerate. up to 110 megawalts of soar power in the 

Sunshine State. 

We c;ommend thOi! Commlttee'slocu$" on expirIng t~x proV'SIOnS We agree t,at Amel'lea's ta_ 

code needs reform _ 

Pase 4 cl7 
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High oorpor .. te t~. rilles place Amer'4<ln fltrns III a oompel~lve Gi5aGV;lnl~ge compared to those 

from mosl other industnaijled nations, and the complexily of our lax structure imposes high 

costs 01 compliance as wetL Moreover, the temporary Mlure 01 many tax pro'lisions creates 

additional uncertainty lor Job crutors, especlally lor thOse 01 us In capital-intensive Industries 

Ihat rea6ze returns over many years or even decad",,_ 

WhiJe CO<1\1ress considers options 10 fTla ko Amenca's tal< code more oo'llpetitive, CUrr6l't tal< 

policy that encourages private investment in American manufacturing jobs should continue. A 

p"me example of this tax policy is tile Production Tax Credit (pTe) for wont! energy_ The PTe 

dOlls not enable the federal \I0Vefllmenl to choose whlc!! companies prosper. but !<IIMr creales 

a market in whicl'l lWIart investments and sound opera~ons can besuccesslul a.nd In whict1 

Amencan consumers reap Ihe benefits assodaled with a diversif>e-d energy portforoo. Moreover 

th" PTe is 11<1 effective policy because i! "' doing what It was designed to do promote 

teehnology innovation IMI has helped to reduce Ihe cost ofwln-d lor corrsumef$, According 10 

lhe Lawrence Berkley National Lab and the National Renewable Energy Lab, due 10 lechnology 

IIdvancemefll across the industry, the cost ofwind has dropped nearly 40% over the la5110 

years. 

Thanks'n large part to the incentive offeree by the PTe over the past five yearir. tneAmerica!) 

Wond Energy Association estimates that prlvale industry nas invested an avenge 01 mOre than 

$15 biltion annual ly In the Un~ed States wind industry while directly employing 75,000 skilled 

workers, Tne 38,000 wond turbines In operation today aeross the United States can power more 

Ihan 12 millioflilomesc Over the last four years, wind e(,ergy accounl~ for more Ihan 35 

percent of all ilddilions 10 QUI nation's electricity supply, In 2011 alone. Amenwon Wind o;apao~y 

grew by 17 percent 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.822

T~e American wind energy industry Is ~ ciani(: ,uc;ces~ !Jtory - re~t ng" domestk: 

manuf~cturing bill~e and promoting nll ion ~1 energy security However, ihe vkhdrawal of federal 

policy supporting wind will deraill~i$ critical progress. 

When the PTC lapsed in ~e past, wind development came to a crashing halt, The Energy 

Informalion Administration has already Pf8dicted a ciramaUc drop In wind generation in 2013, 

Equally impor18nl is thll ~ss of domesti(: 'l"anufllCturing jobs that will occur, "bslI'" an 8llpechent 

e~tens oo olthe PTC , There ilre currently over 450 wind'related manufacturing facilities 

scattered aCross the United States supportIng 37,000 U.S, manufactullng JObS. whicn now, are 

al ris~ The exptratton of the PTC will devastate s of thousands of manufactur'ng Jobs at 

fac~ ties throughout the United Slates, SImply put, Ii PTC extension in 201210111 determine 

whether wind development and related manufacturmg cominues in our nation in the fuMe 

SUPPOll11'I9 both the domestic production of enetgy and maintaining the d .... ersity of electnCllv 

supply is good pubiic po~cy Ihat not only promoles a domestic manufacturing basI,!, but 

encourages billiOns in capital ~veslment and I/r>proves our national security. Thls is sauM 

policy Inal ~as b8en embraced \1trDllghout history, 

One nundteCl years ago. Winston Cnurcnill explained tile impo"ance of diversity in oil s~pply to 

Ihe Bntisn Empire by saying. 'On no one qua ~y, on no one PlaceSi , .. must we be dependent. 

Safely and certainly in 011 lie in variety and variety alone,' II you subs~tute 'eleC/ricity' for ' oil,' 

you nave tne foundation of a sound energy poliey for the United Stales. 

Today we mu~t fashion Ilubii(: polley to bnng about ill greaterdrversily 01 e~tridty supply 

Relorm,ng the uu code and e~tending Ine Product,on Tax Credti for w;nCl ene'gy are two 

important steps In Ih.e right direction, 

P~ge of7 
880 

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Chairman Tiberi, Rank"ng Member Neal. Ihank you again for d",wmg allent"m to expinng t~x 

p(ov~ions such as the PTC We will continue to work with Republicans and Democrats on the 

Commillee ~nd share with them now the PTC helps aeale jobs aCfOSS America. The PTC has 

won parlis~n support many times olter as well as the support of .. broad spectrum ollrade 

assodalions, and It remains worthy of thaLsupport in the years ahead. 

-

P~S~1 01 1 
881 

Statement of Nick Webb 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.824

, _ _ ",f __ ~"""' """- __ ""'_", ___ ,,~,_rr"l"_"_ Con9' " 

.hIJ<Jld 001 .. o;! 10 ".!~nd !h~ «ttlil ,," lil iu;! fc'" or aft~' II "'",ns, Th~ PTe dr"' s bim"". of dolla" In pr""'l~ 

Inv"'I""'M I~ 110"1"9"'''''' A""",can wind fJO~ rlXh yI!(J'. I ho"" J~~ " th~ ""tid /0"" MO, my ""U<~ ""'ID/iu my 

c<>mm~"JIY - b,inolna /r! '''''5lfll<:l'''" jobs a! 11m. oM ff)Of"!'f'(J"'I! job. In Ihr !CPg t"mt aM 9~~olitlg "'''''M~ 

/'" "'" ,ommuniry schools "nd hospl!al. """, Ih. li"'li"", "/ Ihe prOJe<f. "''''110#''9 fh" "mou,,1 ,,/ p" .... fho! ou' 

co"m')' 9'" from ,""'n, hom~gro",n. olfo,dalJk "'5OU"'" is on ~xuI~", ,hiroq for Ii' '0 ,;" - and this flu credif 

",cmks on ''''''''five for I".. wind IndUff,), to ronf,;,V<' fa IkI ,-UOI Ihal. I ",g, l IN! """"II".., fa lau up "n " Ion,ion 

Of tM witld ."'''<'/Y pm<ill<:llo" tOK ''''Oif rlQht away_ 
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StajcmCl11 ofTrJcy Woodurd 

Din.'i'IOr, Gownlm~nt Affair.; 

NiS.>:J.n North America 

J c~rin £ on Expiring n~ I' ro"i~iQlUi 

Committee On Wa)'! and Mean~ 

y 10. 2012 

(.'ha innan "j";i;)t,ri. M"mbers orth ... Commine ... , 

On ""naif ofNissan North A.m~ .. ica. l appn."<:;~le Ihe o!"'JXlnunilY 10 submillhis Slal( mC1t1 for the 

n,""Qrd, in support l,t"thc ~~ nsion ofte..leral ta.~ inc<,mi,~ to rromotc widespl"ad "onWlnc' 

adopLiQlI in the U.S. ofplug·in ck"<:tric vehicles (EVs). 

In JXlrt cul~r. we u,!;t you and your commiltt."c to sopport Ihe rxrellsion flh~ consumer t:l~ 

cn:dit nndcr Internal Rewfu,c COOl.' section JOC. "bien providC"S a e ..... dil of 30 lI'!n:cnl of tllc 

COSt ofinSl3l1it'l! cl....:tric vchide chargill)! equipment. capll'!,j al $1,000 pcr localion for 

inslallaliolls ror rct'rornll use. and $30,000 pcr localio,ln for commercial inslallalions. AI a time 

"hc" EVs havc only jU~1 re...,c"lly 00111" 10 m"rk£l. lhc expiration of the S£"Clion JOC consumer 

m,,- credil has ~c" panicul"rly ill.l;n,,'Il. and w~ /tQpc that Con~'n.'Sii will e~tcod lhis cf\'dil,." 

soon as possibk. 

Nissan is a global 3"lomobik malluf~elllrc r m~ringa full Ii!\<! oflighl-dulY "chide, in lhc U.S. 

lind throu~ul lit.., \wrld. NiSlSiln currenll) ha~ three productiun planls in Ihe U.S. - in Smyma 

.. lid Decherd. TC"'\J!~set." . and C3n10n. Mississippi. l'mdUClion al Nissml"s Smym:l planl i;)t,gan in 

1983. Niss:m also lIaS rscilil;CS in Il"\'inll. e.~~s, Fann'nglon lIi lls. Michigan. and Sail Dk·g<,. 

CalilOmia. In li>t:r\. Nis""n Nonh America has appro.<j"'a ld ~ 13,000 employee'S ;n Ihe U.S. 

Nissan i;)t,!!Jn scllill;\ Ih(' 11· ekc ric Niss~n LEAF in early 20 10. To dale, we have sold more 

dum 12,000 Nissan LEAfs in the U.S. lInd 28,000 Nissan LEAFS glob;,l1y, Thr Ni=n LEAF is 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.826

1I0t II niche \I~ hide it is II full-servic<.' fa'flily ,..d~fl d~~igr.ed fur mn);c, functionality, an.) 

""rcly. The Ni,>an LEAF i~:, Top s~rety Pick by tile Insllr.JncOl lnstitute for ~Iighwa)' Safl'ly nnd 

lhe Ii.,;t nll...,lectric ca r to cam 8n owml l S St:lr saf~ly rutinS fmlll the Natiuna l High\\3y Tl1'Iffic 

Safety Administl'llt;un. Nis.s.:1I1 bclil""\l~s it is clear that EV. uffer Ihe putcnliallu rad ically change 

u ... r natio n'J lransportation seclOr in n wily th.,t will re!iuh in lIum~"' IlS bcn~Ii\ll for the~"OlInlry llJ 

a whole. 

Pirst, thc widMP"":ld adoplion ofl3V. "ill enhance. (lIlT nati(ln's encr!otY :\t:curity by I\:ducin (lur 

reliance on fo .... ·ign uil. Today. Ihc U.S. impuns ""arl), 50 perccnt IIflhe lIil ~·Oll!jllm<.-d ill thi~ 

country. A «."cent sYTl1po ium report issued by thc Ma~S3Chusctts Institute (lfTL"t:hnulugy H.-1Jn ugg~ts tMI o il dependence. pric~ volatility and the sc:ttin~ uf J!lob.:t1 uil pric<'S b)-cands has 

c<.)St the U.S. <..;ooomy $5,5 trillio n si ncc 15170.' And, we cuntinue to spend $300 billion ycarly 

10 impon fun:i!!Jl uil. repn:S<."l1lin!j 50 perecllI of uur r!:ltion's trade d~liciL 

Second, electric vehiclcs uffer t~ polential f()T ig.nir. cunt lo ng temt COSI savings for American 

~"\)I1s"m\·rs . Wilh gas pricl'S cI~ to $4 a gallon, In American ramil~ IIh11 dri ves 1e!>S tllllII 40 

miles u day - which i5 most families - and switches to an cl<'I."tric I'ehide, can sal'e SI.400 ~ 

year. Put al1Qlh<.'r way, trav,,.!ingon electricity L'OSts.! tu J cents per mile. ooU>fI<.lm;\ with 15 tOJ 

II> celllS fur i!aso!in~. 

Third, plLIg_in cicclric vc hicles art: cleaner for the cnvirOllmcn!. The Nissan LEAF is a ~ero 

ctnission "chicle. It has 00 tailpipe. r"C'Il ",hcll upsrream emissions are\'OlIsi.:k ..... '<I. plug-in 

eIL..;rric ch;cle ~ all' considcrnbly cleaner tllan e\'en rhe must eflici~'n CQllvelllional inren181 

combusti(lll eni:ine whicks. Rec"'m 3nalyse. d"IIl(l" , tr,l1c llial as Ihe nati(ln's electricity 

gellermion profile continues to gel deaner o"cr lime - urili7jng ",ore renewable and natural ga..' 

gcner-~tiun - the erwironnlcnlal ~ncfl1S of using plu!l.i" eIL..,rric vehicles I!I'lw e"en (lion: 

igniti ant! 

I'o .. nh. EVs r~prcsent a grow'ng IIIdl1.'u) inlhe U.s. wiil, ~at potential for fllnherjob "",ation 

and i""ulla l;(ln. Tbis indusrry al",ady supptJltS rens "fl ..... US"nd5I1fU.S.jot.s ill manufacturing. 

ballery r(choologics :md illfrnslructu,"" al $Ollie 300 f ..... iIIlies inlhe U.S. Componcnt and "ehicle 

msnufaelllring is ~prI' ~d aerus~ 1he cuunrry, in CaIiIOrni •• lndi.na, Michij,!'lll, Mis,olln, Nonh 

Carolina, Tennessee nd olher .Iata. I'rooJuc1io" of lh~ Nissan LEAP i. ~c hedll \~ d lu heJ!.in in 

Smyrna, Ten""'s ..." In carly 201 3. We are Hlso building.n Hd~ nced bouery prudllCtion plant 

adjaccnt 10 the ,-.::hicle a,s<:mbly pl ant In Smyrna. "hieh Is cXPCCK'<Itu Ix: completed in laic 2012 

nd will Ix: dp.,ble of annually pmdncinfl200,OllO advanced b~lIcri eli. In tntal. n ur company's 

e l<'Clrie I'chicle r<.'l illed ,niliDr,ws ~r-.:: cxp....,led 10 result in Itw creation of "I' \(. 1,300 lJ.S. jobs. 

And. as rhe EV mart;cr conlinucs to WU'\ nver timc . Ihese j(>b numbers I>.ill grow'. 

Sma ll . • tralc!jic SO_cmment ", ]ieicS Il.l'·c hl:tpc<l aeceleratc the early snced;s lie ha ve- secn in 

Ih .. • deeme ~ .... hlclc m:rrkel. 11tis is consistent with O1h.:r sucCeSS lori~">! in which U.S. 

b'CI"emmcnt suppon II'lIS crilicallo the gr.}",h MOlher Irnlcgi ~all y ImpOr1am industries. stICh as 

h"~: ""·oh.m; '_od~ "'~. i'lb: •• ",po"*Io<'rir"",'ioa-''''"''l.)fm"",,,)">,,,,".,,Jr 2 h"p:II .. -\\ w.",,";.u,,¥hI,, ... rdoc,,mtn,,,,.l<all_ \-cl>"'I ..... lt<:'ric.,;.' "1: I"Nr.,, ~rml" ~-<"I nt""iIl _"'l"'n.rJr 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.827

lh .. inlen:'onlirwniai milroods 81ld lh .. aemspace indust'). InVe,tmcnt5 in ~I~tri" drive fin:' no 

different. Th~ .... • i. a dear national im"r;:,t in using oom<'st;c c1<'l:lricity in our vehicl.." to re!luee 

deJll'ndcllcc on oiL ine",ase energy s<'Curity. ~ncourngc job growth arnJ drive savin!;$ t lhe gas 

pump. 

Sil)l1ificant challeng.·s. however, slill <,xi.t for thi~ indu~lry. The eI ~\:Iric vehicle mmkd in the 

U.S. is still in its infancy. ond the continued availability offcdeml COIlSU"",r Ill;( incentives is 

critic~1 to rn.'lpinl'. this industry gruw to lhe JXlint "here it be"omes self-$ustaininl;. Nissan 

:Ul ticip-~t C!l !hut b;mery ~1l'Ctric and plug-in hybrid whit!1!S can aehiew a significant mar~ct ~harc 

ifsuPlXlrtl'tl by sovenllllcnt progr~ms and ineenti,'t'S. 

In urder fur new a lechnoIOjl.~ -->,spttially ll-chnolugic~ thai disrupt the stalUS quo-lo be 

'Idupled on a mC~lt;ngful scale. it is e.kulial th~llhc new lechnulogy be adupl."d by a cf;lic~1 

mass ufcOllsumers. While some new tecll!\ulogical inf1()vatiuns dilli.tse rrom Erst usc l() 

d~sprcad adoplioll in a maUer ofye'lrs. olhers may Ievc1 out lit Icss that, 2 percent. See 

/,'f'IJmIIlJ ~ EW .... 11 M. I{ogcrs, Dijfil$il,)llvj'IJ"Ut'lIIiv"!I 211) r~~ I' .... 'SS so, ed. 2003) (I %2). A 

d~ y used depiction of tlK' 1<-'Chnl1ll1g~ adoption curve is Ilic "Innovalion Adoplion Ufc'Cycic" 

d~, el0p'-'tl h)' JoeM. Bohlen. George M. Ik'lli. and Everett M. I{uger.! at Iowa Stat" I)ni,,,rsily: 

Ear!v Adoptef'5 Late MollOn,y 

INNOVATION ADOPTION LIFECYCL£ 

Sei'. I)ij}".<lfm ojltltlf)l'(II/O"5 at 281 ? A~ Ille hd! curve sh<l"-s, new tC(hn<llogics h4:gin wilh a 

relati\'clr ntall number or··inllOv3wrs."thcn OlOW 10 "carly adQpte~~ before pos.~ibly finding 

J. n..: Ih",;';<. I'"".nIN in D!ffi'lon (",,,,. ,,'~~ 'n' . r< ".101) "'''''p",J, /)1/1".;- oIl""'",~;",,, i~ '1\1< ><:<000 

m"'l..::i,ct1 w<llt in "",,,I ..,i ..... '" ~I\ • .,. Cool.: and Clullbcll'. ( 1979.1r<>l"" ,on q"""'_ uporinl<:nl.tio ,- An in<! 

Sin~1 & S",,,,y Law, A R,,,,,,,," A~"""for Dip.,,,,,, </1"",,,,,,;,,,,< ,'11:/0.'/<1"" m ,b. ~I" ("~""oI)': A 

C"",',,,"'io~ II~ 6· ........ ".11 R"/I<n. ~ J. lk,ekor, Co.nm, 39. J9(1Y971, DlIJ~.I,'" 4Ino",,'(JI;'~"' . 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.828

acceptance within t"" pn.gmalic m'tiorilYofC()lt~ume",. Most of the variance in the ml~ of 

adoption of innovations is explainl-d by five ~Ilribu ei: ret:nive ~dvantnge. comp,nibility, 

complexity, trialability. and obscrvability. Id. al 2~ I. 

[)C('au~ ~dcrnl EV las c .... dits uuder $CCtions JOC and 30D are targeted 10 cou~um,'''''. Ihey 'lr~ 

perr~'\;t\ y tailorl"tl to achieve lhe goal of mO"ing consumers - ~nd thus the m"",,,! - forw~1lI Oil 

the CUf\·C. 10 "ncouffigl' consumers to acc"pt inoo\"ulio1l3Ud adopI new tlochnology !i<lOner 

b(,cuusc ofte,npornry govcnuncnt clloouragemcll1. 

As appli\"{i tQ mauy COIISuUlU tnBrtet:;. a dis"",!,!ivc l<oclUlOlugy is likely to disl'l.cc nH)re 

trJd'tionalte<:hnolos,y lIS't muvcs along Ihe ~dOplioll curve 10 ,,",~eh Ihe pragmU1,c majority or 

CU!l!IUII.ICI"$. A. applied tu the "'ulU' ,"chicle ma,kc~ how~vcr. the !!)JIll is nol for electric 

dri"eIMlins 10 displace itlle,"",1 ... mbustion cngi ne ,·chicles. but ,m"", fo' electric v~hicles to gain 

"'lOugh ofa foot ilOld in tI,e mar\elplace to be able to ~han: Ihe m3~el with mon: 1,,,,lilional 

drivel",in technolog,v. 

A disruptive technology hDS the be~t chance ofbrosder adOplion "hen "opinion leatk·n; :ulopt. 

"hich ll~tmlly /X:C Llr.! somewhere !let ... ·cen J and 16 p",eem adopti"n in ntoot systems," Id. at 

213. 'n,c early :uloplc"" arc the opinion I(:wc", in commuuities. and potential ooOl'lc", ora neW 

t<"ChlloloID look to them for advice and '"Ionlla!ion. hl {II 283. 

lhc Innmlllion AdnptiOIl Ufecyck repre5Cnls what'~ n«~ry 10 enable EVs to 1l\U\'e fmm 

in"omtors to eDrl~ adopter.! in order to gail1 enough ofa fOOthold \(), O\'er time. lind IICccptmlCc 

among cmly mcmbers nfthc mnre prAgmatic m:tjoril)'. In this eOnle)(t. govcrn",cnl ioccll1iws 

will hell' EVs ma~e the crit'C":Jll1lovc fmm the approximntc 2.50/. oflhc n'n~et "her.: innO'1l10rs 

a", willing 10 experiment wilh the: new Ic~hnology 10 the next gmup .1f CI)I1~umelS whe", carly 

adopter.; shnwca.-;c the pt1lctkal u~ orthe tC\"Chnolog,y and bo:gin lhe 1'fOC,'u nf incOrfllll1i!ing Ihe 

(e<:h"nlogy inlO the broodN ma,k",. 

Sioce the motor vchicl~ mmkM n.'t!ds 10 be ~uppOrted by su11\1.1111;01I infrustf\Jcture and i,,..olw"S 

substantial inl'eSllnem and up-from (:(lst$, muvement 31nng Ihe Technology adoption curve is 

substantially ~Io"er and more precarious. Ilybrids, for e)(RmpJe. while gIlining s.~neral 

'lCC~pl:l(1te a~ a viable d,ivelr:.in. ha~e onl)" just n!adtl-d a cUllSume, nm~et sh.", "h~,e Ih~y 

h~\"C tf""JIlsgressed bo:yond innovative consume" to more wid~sprclld early adopt~l"$. 

Th~ chan Oil th~ 10llowi"l1 JX1g( depicts tl1C r:u~ ofllybr,d Ek'\;lric V~hick (HEV) s31~ from 

"hen they were first imroduccd in 199'9 through 2007. Md also depicts "heR: EVs arc on tMt 

SllIllC produc'ion schedule: 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.829

000,000 

~ lSO,ODCl 

~ 

~ 

• -.- < 

, =.- ~ • 

~ -.- ~ 1110.000 

E 

, 100,00CI Z 

, 

Rate of Sales: Hybrids vs. EVs 

... _ ............ _. --- ~"'--

-,.'-O _ _ _ 1Ol ______ 0 _ _ _ 

·_-..... 1 

""_~I.U ): _"""'<t>r 

_ _ .... _---.- "_. _ .... taoh_ "--- .. _ .. ,." 

• • • • 

_Electric V~ldO! '.6 _ HyM" electrIC 

V~kle s"les 

• • 

The ;i<1;1 hybrid Honda Insight WlIS i"lrod"ccd in til,' U.S. in 1m ~nd Ihe firsl 'r oy01J I'rius was 

introduced in h~ Unill"<l Swe. in 20nO. ll EVx com('l"iii"d only aboul O.S·A, or""w car sail'S 

during Ih~ r"si I;e"'.'nnion orlh(.-se vchidl'S; and. as of.2004, only live IIEV models were 

3Vl1ilabk In .200S, (ons""", enacled consumer tax crt.'tlil:i for IlEVs of up In S3.400. (I'rior to 

this. con!!umcrs had b;"cn allowed a fed"ml Ulx ,kil"t'I;Oll or up to S2.000 35!lOCia l~d wilh Ihe 

flUrchas.: ur. IlEV.) IIEVs tl1cn ",ad ... '!! a key tipping point. inc",a.ing It.....ir U.S. lighHlnly 

whicle market shatc by 250%. when mullip ~ automubil~ maoufoctutcrli erne red the nmrke\ 

Mfering a \'ilfi~1y of~IEV modds. This tipping point Coincided with the ""cond gcnemtion 

Prius. Yet. today h)'brid, Imve jusl reached a 5..J ~. market shll ..... 

The hybrid exp<:riellC1." "'pn:scnts the extreme challcngcs ofin(rod c;n~ (.,.n~ronnat;onal 

dtl\'C1IT1in teclmolngy hnn Ille nc" motor vehicle fleet. EV~ I11U~t not only trow) the smne earlySU!!" adoption Pilth lIS . IEVs (which still rely 0<1 pclrolcum). but also face mOre subsuntial 

markct oolTicrs. such as COllc-.:n>S over rangc alld the IlCcd tn devclop support infrastructure. 

As rcflectcd on (he graph. the r,V market is only in its infancy. It "ill rt."Iuire substantial suppof! 

to overcome the barriers to broad m~rkct penctration and to ensure a solid and 10ng-l~stil1g 

foothnld in the autOfnl,ti,'c markclplacc. Pmjcct<."d market p<:llctraTion rates fi'r EVs and Plug-in 

Hybrid e lectric Vchicles (PIU! Vs) vary significantly. dcmonstrating thc market uncertainlY 

SUTTOtHlding thc..- tl>i:lmologics. 11K-Boston Consulting GI\IUp pmjl"Cts that EVs and PI!EVs 

could make up2'Y. of new tight-dmy vchicle sales in 2020.' A study conducted by Google.org 

using McKill-ie-y & ('om pan) ·s LiM Carbon Econ(»ni .. 'S Toot on the other hand. projects that 

evs and J'IIIOVs could make up as much as 70'~ orne" light-duty ~hicl" sak' by 2030.' Thc 

~. s.!~ Th. RruJ"" c"",,ul!'''l'-0m,,1'< ,,,,,.',i~~A"''''' 1{)11)lIJ: TIw F."'~f''''' fil"~"i~( i" J • ., j~ (July :WI I) l-tlCO S,ud)"l, " ... "I"h/~ uI hnp:I,," ,", .... ,t-cIl-,.."..,ldox:um"",,Ir.lo8()9lll,pJr 

. G""IIh:.<>Q?- lhc 11'1/"1<" "fn.,,~ F.",,~ ' I"'""""I,,~; t;,;"'"ini"ll,II< '.'piJC'"j(1<"" t-""I:I ,,,,,,,,,,1/,,,, 
887 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.830

G()Ogle Study proje<:tiOfl IlS,;umes I'1Ipid de.::ri'tlses ill b"uery ~<»t~ anJ in<:rea",,~ ill filer£)' density 

by 2030, to enabl~ the produclion ofelcclric whides with 300-milc f"~ngl' ~nd a tOlal"O!lI of 

o"ner.;hip lower th3n thaI Ofl'()I1I'enlionaI1l3solirl<: \'chicle$. See Google Shu.!} at 11. Without ~ 

brcaklhrough in blIllcry ledmology, howevl'r, the Googk Study concludes Ih~t il will be "much 

hurdcr for EVs 10 rt'3Ch stale .~ !d, Thus far. Ihough we ha\'( not ),ct reuehed ambitious >'1Ic~ 

larg~ts, early silins of!:rt)wth in Ihe EV market. in panicular in comp«rison "ith .... Jrly sales of 

HEVs. arc eneout:i\ging." 

The HEV c xpo:ri<!nce and Ihe EV nmrkel fum:asts reneet th~ unccnaintic ssurro"ndinllth~ 

suee~ful dcploym~nt oft"'lIsfQrlHaliunal dri vetrain t""h'\Qlogi~ bcyonrlmarkcl "",ovalo ... , 

GovcnH"eHt incentives lhal help pcn;uade consumers \0 :>doP\ Ihal Icchl>Ology win provid~ ~ 

slrong f<lundation upon which 1<1 base that d'1'lo)'mcnt and 10 redres~ the markfi barri~rs thai 

may nth~rwif>l' ~tall or limit a "'ore expanded ",arkel for "dvanccd \'ehid~ tcdmologil"S. 

Tm, build.-out of de..:tric \'Chicle chal].in~ inf"'Slructure. parlicular!y in commereial installations. 

is 3 crilin! pmt orthis pHJcess ofread,ing th~ poinl ofwid,1;p"",d consumer acccp13nce of EVs. 

In a 2010 r,-"c'E)' Initialiw Symposillm on Electric Vehicll!S. lx",sor~d by tl.-II T. so"'c ofthe 

'~~Ii ,"' s f()r.::mo~1 ~I*rt~ Iln this topic ~grccJ that tM "! sJucc,~~fo l pcn('tf'dtiun ofEVs int6 Ihe 

I .... ru'portalion mark~1 "''Iuires coru;llmcr acc"pt8r.cC and inf".slmcture d.an.gc as w~1I as 

a~hin;ng compl'l;tilc COSt."? nh: "'port. issued in C(\nrICCtiiln with Ihis cv~nl. highlighl~'<l ha. 

110" mOSI Significant challengt-s 3!;WCiaIOO w;lh promoting incN8;;cd us.: of EVt in th~ U.S. 

inchu.!c: 

I) Ihm significnnt sll~idics such us I~ Currtnl federJlla~ credit nrc required tn keep EVs fmm 

bcin~ priced Ollt ofth" lnarket: ond 

2) Ihal currenl charging Infmstruc!ure in the COllnl!)' is dclieicnt or none sl enlll"d requires a 

major investment nn tm, part of both the gnwlllmcnt Rnd the pri vaTe se<:tnr. 1<1. 

Condu~io" 

Nissan rommcnd~ lhe committee lor holding Ihis hearing and soliclling rommcnlS"nn Ihe 

importnncx uf eXlending expirjnl!.lu ~ provisions. We are cOIl>milled to i'lI"csting in 0 fillure or 

electric vehicles nnd Rppfl.'Ci~tc your cllnsidemlilln ofthc U.S. Glln'mmrnt's role in helping to 

del'elop the U.S. market fnr EVs. AS pIlrt of thIs elTorl. we bcllevc Ihal the continocd 3Yllilabiliry 

of ~onsun.cr "!'I'dit.> for pureha. ing plug.in "Vs, ~nd the ~"tcnsion oflhc secticlIl 30C 30 pe"",~()! 

credit for in~Ullling eleClric "chicle charging rropeny, "ill help achi~\'e the g()U l qfwidcspread 

adoptiOn in thi ~ c"untry ofelec\r;c vehicles, To Ix' d~ar. Ni.;san i5 nut SLtggc;;ling that thi$ c!'I'di! 

should b.: estertdcd permanenlly, To the conlrary. Nissan bdiel'es h~t Ih" $cct;on JOC c"-'<lit 

should be<:,~!endcd (",Iy long enough 10 suppan dlwlopmcnl o flhc EV m~n.:cll" Ihe lippil'lg 

poim bcyond the early "dllptcrs SUlgc of EVs, We apprccia\l' your support o ftllc'il' ine<'ntiws, 

~/f!/k' U"lIeJ S'al" f:"-ryy SY'I~'" ",,,/ L""".,,"lY." Q (Jul) "Gil) t~1< StL>o!y")."''' ibbk~' 

hupJl\\ww, ,,">&I< ,1lrl<'0I1<Tg) inna>a!,<'Inlll>o _Irnpo,,,_ of_ Ckt.D _ E ""I);)' _lftD<""ll<ln.pd f . 

6. $<0. h'tp;fl • ..,\'Y' ,""t....-."""".ik.., ri~.,. .. """"'hlrol Z/(I('Mi>< ""' .. y...,It..1J'ic.,dI"'I"" .• rcn'~lIi . 

7. IMJ, ,\'"" I 

• 
888 

Statement of Nordex USA, Inc. 1 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.831

I work for Noroex USA, Inc. In Chicago, fL. Hordex USA, Inc. 15 a leading mi.Jnu~turer of 

utl/ity 5Ci.Jle wind turbines. We entered the US mi.Jrket In September 1008. establish/f1g our 

headquarters If' Chicago, Investing $41 mii/fOll in a producffon facility In Jonesboro, 

Arlcansas and servicing wind farms spread across t!le United States. WfO now employ around 

250 and last YfOar, according to t!le MAKE Report of Marcil 2012, we WfOre sixth largest In 

terms of turbine Installations among a "eld of 27 competitors. As an Important partlclpdnt in 

the wind industry, we ur"ge Congress to extend the wind ener"9Y Production Ta" Credit (PTC) 

ilS ouic/{Iy ilS t1Osslble. 

Without the certillnty of this business fncentive beyond this Ye.!r, however, Amerkan jobs 

ilnd Investment dollars are at n·slc. The Amerkan wind Industry needs policy certainty In 

order to continue to contribute economic growth. Wl' hope rhl' Ways and Means Commlrree 

wili ralre U(J thfO PTe e!Ctffflsion right awav. 
889 

Statement of Nordex USA, Inc. 2 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.832

To wnom It may conce,n, 

I'm aSenlo, Elect,ical En&ln~er with No,dex Wind Pow~, ~nd I am w,itlng you 10 fight ro, the e.t~nslon 

of tne PTC 10' wintl powe •. I am al,udy seelnSlhe ImpaClln the wind power Industry benu$e th e PTC 

Is expl'lng at the end of this year. I ~now 8.eat engineers looking for wOlk In t~e wind Industry and they 

Un'l lind a position becau!.!!.not o~IV .re I~e.e no openings, but people are beginning to lo.e tbelr Jobs. 

l;om Infu.late<! t~at 011 and gas subsidies sl1l1 exl'l and ate being renewed, while r~newable energy 

subsldie. a re bein8 ;ollowed to expirt. Why a'e ~ 8Mn! sub,idle, to companle, that are maklns 

billions of doll ... in profit and funneling money to people and companie, oul.<lde Ihe USA? Why .'1' we 

nol supPO.ting ~newable ene.gres tllal come I,om energy !.OUfCes IMt don't run oul and wl\05e 

re",urces come free? Why a,e we.upponlng lo'eign big olll,><le ad of foste ring lonl ene rgy and giving 

us independence from oil price mooemenU and lIueluatlons in foreiBn <>il ,upplv in war torn counlfies? 

The'e is sometning .everely w.on8 wJtllthi~ picture. 

The US goveff1~nt ~h(luld be lostetlng \.IS based companies, wllieh allow~ US wot~ets 10 gene.al" 

;n<(lm , which allows us to spend It and genern,, ;ncome for n~r buslne .. "s and people. I trave l a lot 

to va,ious <mall tewns wnere our wind fatms a,e Inslall .. d and If 110'"' mv lob, that mom and pop 

restau'anl down Ihe IlrN!t and thOle hotels ifen't going to su m~ or my monev anymore. fhat town 

th~t w.siolng to nao" the wind f~.m InSUlted Iln'180in& 10 no.e ;l wind rarm anymo'e and II won't get 

the buslne" fremalilhewOlke .. thatcom .. tolnstall.m.inlaln and run thaI wind farm. R"mO"'''K the 

PTCdoesn't onlV affect those In the wind i~dustrv," a!teets _ryone I.om smJl1 to .... ns to tile 

businesses Illat suppon l/1e wind InduSiry. 

The go;al is to create jobs for Americans, not creale unemploVment. The lioolls to foster new 

technologies th.t K.ew US base<! companies, and grow the pe .. on.1 wealth of Americans,.o Ihallney 

can <pend It and help elhe. lellow Ame.ltan. !.ew IlI el< bu<lne"e'. G,owlh In the US, fot Ihe US, 

Pie.", .upPOtiand fighl for the e~ten.lon ofttoe wind power PTL Thanks for yoU! $!Jppen . 

SlncerelV. 
890 

Statement of Nordex USA, Inc. 3 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.833

Name,: Michcll~ M~ICS 

Qrganl..alloo (if af>f>licable): Nord~x USA 

Adllress: 300 S W3CI.W DriVl.', Suite I SOO, Cllic3,go.IL 60606 

Phone Number: J 12 386 4262 

Contact E-mail Address: 5m~lcs@'norde,,-online.c()m 

nIle of Hea ring: HearIng on Certaln Expiring Tax Provisions 

I work for Nordex USA. InC. in Chkago. Il. Nordn USA, Inc. Is a leadin8 manufacturer of utillty·scale wind 

w rblnes. We enteltd the US ma rkel in September 2008, est3blishing our l"Ieadqu3rterS in ChicigO, 

invuling .$42 mU llon In a produrtion facTiity In Jone<ooro, Ar kans.s and servicing wind fa,ms ~p'ead 

acrOl1 the United States. We now employ a'ound 2SO and las\ yea'. acco'dinE to t he MAKE Report 01 

Ma rdi 20U. we wer .. si~lh i.rEeSlin lerms of lurbTnelnSlalialions "",nne a fie ld nf 21 ,nmpetiln'l. As 

an important partlci p,mt In Ihe wind industry, we uree (008, .... 10 exteod the wind enerrt Production 

Tax (redit IPTC) as qulcklv as possible. 

Wilhnutthe certainty nr this busine" Incentive beyond Ihl, year. however, Ame'lcan Jobs a nd 

investment dollafs a fe at risk. Tile ilmerican wind InduUry needs policy certainty in Older to COMlnue to 

contllbule econnmlc growth. We hope the W~yS ~nd Me~ns Cnmmlttee will take up the "-rCe.te n$i",, 

right away. 
891 

Statement of Nordex USA, Inc. 4 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.834

I work for Nordex USA, Inc. In Chic;,go, IL Nord .. x USA, Ino;. IS" (I le(lding manufacture. of 

utility SC<lle wind turbInes. We eotered the US market 10 Septt'rober 200B, est",bjlshlng our 

j1e<1dQu(lrters 10 Chlc(lgo, Investing $42 million In a production f<jcjllty In Jonesboro, 

ArKans(ls ",nd servlclog w,nd '''',ms spread across the United SI(lles. We now employ around 

250 and 1"'51 year, acoordlng to the MAKE Report of M(lrch 2012, we were sIxth largest In 

terms of turbine Installations among a field of 27 competitors. As an important particIpant In 

the wind Industry, we urge Congress to extend the wind energy Production Tax Credit (PTC) 

as Quickly as possible. 

Without the certainty of this business incenUve beyond this year, however, Amerkan jobs 

and investment dollars 8re lit risk. The American wind industry needs policy certainty in 

order to continue to contribute ecanom,c growth. We hope the w(lYs and Means Comm,ttee 

wilitilke up the PTe extension right aW(ly. 

Since starting In thiS industry in 200& and workIng In it In multiple countrIes and states, I 

I'Iave seen the impact or tax and energy policIes on job creatIon and economIc growth first 

hand. I have seen the uncertllinty of exp,ring policy costIng JObS and investments. Only a 

long term stable policy can smooth out these fluctuations ana lead the US 10 regain its 

leadership role In clean energy. 
892 

Statement of Nordex USA, Inc. 5 

f 


79894A.835wwoods2 on DSK499XVN1PROD with WAYS & MEANS

. .( .... ~ Iq3!J ,"l!;U~I~~ 

,),l d "'ll dn ~~111 II!" ·>~U! "',"0.) <;"" ~ pUO '~~M ~1 ,-.joq I 'los ! ""qM (uew yo Jloq"'l YO ~ltOd i 

'AI'J'" pur. ~IIO'll ,su.,!-',wV '1!J;>\l:>q 4'!4'" 'UO!I£poulI.p l"lU'WUW!W, PU" UO!l~I"P ~:un"".>J IOJ'Yr." 

""'0I':U pu8 "U~P~'PII! Alb: .. " II! P':>!,'WV 'P" ~,. ~lq.M"'~'U ',,!lJ<)ddnS '4L"OJS-:l!"<OOo"," 

.noG!-'lu"., 0, .nU!'U'" " 1 "f"Q U! !~u " ~'!I.id .~u \'I1~npu! PU!'" U~'!"'UV ""t1, >!-' 10 """ s.nl1l('P 

'"'Uil'.~U! pm: "'I"fu p. ~!"WV ',.,wM<l1! '1~'~ !41 pUO~"'l ;>"!IU""! ~U!>"nq '-!4IJ" ~lU!""'" ~4'1n0'l1!M 

-~IG!"od ... I~J!nl> !'I: (;)J_d) '!I""';) ,--. J, ""!POIK" d ,{lI,.U' PU!·" '4' PU"X' 01 :u~u":) 

~jim "" '.{n,npu\ pm ... "'II II! IU..JP!uOO ,,,,,uodw! uO'V ..... o'!~WOJ LrJo P!3!J" Sumug iUOllUII01'U' 

""!GJIUJO <1W>1 II! 1'k'l!J01 4IxW:'''''' •. " '<: 10;: 4"'" ~jO lJIId>l:j 3)1VI-'< '41 01 '"IPIO,,,,, .,".'" 

1" 1 ·"Ut'" :IU!~Oldw. "'IC1S P'>I!Un .-)tll SSM"" p":ud~ IIlli"J PU!" ~U!J!"''-''; pY~ ;~Y""V '<\I<XjI,uor Il! 

.(I!I!'OJ 1l(l!pnp<!Jd ~ U! U(I!II!'U l tS i\" !IS~'Y! 'oJleJ!4;) Il! l<Jo].umi>p""'l 1M ~U!tr'!lq.1 S~ 'WO", J'-''l'UOWJ$ 

U! I~"".IU sn ~1!1 P:U31U' \\ '"u'qln( pU!'" .I~" JI'I!ln JO "1J"I''''JI\U~W liU!pC'! • "! I ' vs n 

U I" O"': .• ~,$J~,,~ ~Iq""'~u", 1<Ij IU~uodoJd lof"lU ~ W~ I pu~ 1 1 ·O~.~'4:> II, "~"! 'vsn x.JUON ,oJ ~lO " I 
893 

Statement of Nordex USA, Inc. 6 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.836

HelIO. 

My n"me ISl'\dam W"'lgle'; , have worned for fIIorde~ USA, Inc. In CIlIcil'lo, IL for three 

years. No tclex USA, Inc. Is a leading manufacturer of utility scale. wind turbines. We 

entered the US market in September 2008, establishIng our headquarters In Chkago, 

Investing $42 million in a production facility in Jonesboro, Arnansas and servicing: wind 

farms spread across the United States. We now employ around 250 and last year, according 

to the MAKE Report of March 2012, we were sr~ th largest In terms of turbine installations 

among a field of 27 competitors. As an Important participant In the wind industry, we urge 

ConQress to e~tend the wind enerQY Production Ta" Credll (PTC) as quickly as possible. 

Without the certainty of th,s business Incentive beyond this year, however, American jobs 

and investment dollars are at risk. The American wind industry needs poliCy certaontv in 

order to continue to contrlbute e<:Cono rn lC growth. We hope the Ways and Means Committee 

wil l take up the PTe extension r,ght away. 

The eK!en!ion will h~ve grei ! impact nd influence on my 1000al commun !~ a~ well as v~ ious olhel 

busine sses that sllpPQrt our e fforts. 

KiM reQar(ls, 

Adam Wangler 

Project Engineer 

Norde~ USA, Inc. 

JOO South Wacker Ori.e, Suite 1500 

ChIC'"90, IIltnols 60606, USA 

direct 

phOne 

to> 

cel l 

email 

weO 

H (312) 386·4 123 

... 1 (JI 2l38&-4100 

H (3 12) 386·4 102 

tl (312) 607-6605 

aw~n9Ier nordex -online .com 

www.nor(le~-onl!ne.com 

• Oflorw .... __ """". ~"'OCI " "ll "'ll " l 

_.-.I: i)r. l~rge<>~"" (0).01'''' .... ), Un ""'0>9'0011, 00-, "~S._'Ii , loo<1l 51:1101 .... "I SIll"" 
894 

Statement of Nordex USA, Inc. 7 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.837

HelIO. 

My n"me ISl'\dam W"'lgle'; , have worned for fIIorde~ USA, Inc. In CIlIcil'lo, IL for three 

years. No tclex USA, Inc. Is a leading manufacturer of utility scale. wind turbines. We 

entered the US market in September 2008, establishIng our headquarters In Chkago, 

Investing $42 million in a production facility in Jonesboro, Arnansas and servicing: wind 

farms spread across the United States. We now employ around 250 and last year, according 

to the MAKE Report of March 2012, we were sr~ th largest In terms of turbine installations 

among a field of 27 competitors. As an Important participant In the wind industry, we urge 

ConQress to e~tend the wind enerQY Production Ta" Credll (PTC) as quickly as possible. 

Without the certainty of th,s business Incentive beyond this year, however, American jobs 

and investment dollars are at risk. The American wind industry needs poliCy certaontv in 

order to continue to contrlbute e<:Cono rn lC growth. We hope the Ways and Means Committee 

wil l take up the PTe extension r,ght away. 

The eK!en!ion will h~ve grei ! impact nd influence on my 1000al commun !~ a~ well as v~ ious olhel 

busine sses that sllpPQrt our e fforts. 

KiM reQar(ls, 

Adam Wangler 

Project Engineer 

Norde~ USA, Inc. 

JOO South Wacker Ori.e, Suite 1500 

ChIC'"90, IIltnols 60606, USA 

direct 

phOne 

to> 

cel l 

email 

weO 

H (312) 386·4 123 

... 1 (JI 2l38&-4100 

H (3 12) 386·4 102 

tl (312) 607-6605 

aw~n9Ier nordex -online .com 

www.nor(le~-onl!ne.com 

• Oflorw .... __ """". ~"'OCI " "ll "'ll " l 

_.-.I: i)r. l~rge<>~"" (0).01'''' .... ), Un ""'0>9'0011, 00-, "~S._'Ii , loo<1l 51:1101 .... "I SIll"" 
895 

Statement of Nordex USA, Inc. 8 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.838

SUSIII"''' Vnil 

1901 Scl'lIir Ril. 

1(l1U'~)(}ro, AR 72401 

87()"930-4JZJ 

jSllb!Jfti/&SllddJ'Jllillk.''''1 

1 (f'tlrk for Norde.l· USA, iiII'. ill /OIII'SOOro, AR. Non/ex USA. IIII'. is II "'adiIlS mmuifac/llrt'r of 

IIlilily 5<'alr /l'ilh/lllr/>illts. J-W i!utr'n'd IIII' us lIIarkel ill S.'pl(mWr Z008, l'>MblislliuS ollr 

Ih'~dqlwrl"rs ill Clde'/gil, luWSlh'8 $42 mil/iou ill a Jlfol/lI(liolJ jarilily I" JOII~Sroro, ArblllSlls 

IImi s.:n'Irillg lI'iud "Irm. 6f1rt:1ld IICrotiS Ilw liuiled SI'lles. WI' IIVW mlflloy m'OlllJd 250 IIl11i Il1sl 

year, nL"(lmfiug 10 Ilk' MA KE R~l'oorl oj MardI 2012. Uf! livre ,;i.rIIlI<lrg>'$1 in Il!rHlS oj 11Irbi"" 

ill5/allaliolls urllOIlS a Jil'ld of 27 com/It'/ilors. As 1111 imporllllli I'lIrlieil'lIlIl illllll! willd imllls/ry. 

l'~' "rgc eougll's~ 101;xl';lIl/ IIIe "~'Id ellugy Pro//urlivlI Til,\" Cn.'dil (J>TC) /IS quirkly 115 

l)(}ssibl,. 

WilllOlIl "Ii] rerlnilll!! of III,s Imsi"I''''' illll'ull1'l' ~YOlld /ilis !Fllr, 1101I'I'1\'r, ,',l1Il'ri[II/I jobs/mil 

im\'$hlU'1I1 dollnr. MI' M risk. TIll' Am.·rit ,w willd hrduslry 1I"",l$l'oliry (w!aill/Y/fl orl£'r 10 

n>lllilllle t" OJII/rilm/,; "CO/Wlilie STOWtl,. W"lmp'! tlk' WlIysllml Ale""5 CO/ljlllitkt' wi/llllk .. 141' 

IIU' PTe ('x/e/fs;oll rig"I/IImy. 
896 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.839

Submitted Testimony ofllle DIstributed Wind Energy A$soci~tj(1O 

Su\)committee on Select Revenue Measures 

Ilea ring on C ... !ta;n Expiring Tax Provisions 

M,ly9,2012 

Organization: North Coast Energy Systems {NCES} 

Name: 

Address: 

Phone: 

Contact: 

Joe OiFrancisco, Owner ofNortll Coast Energy SystemS and 

l'oundlo8 Member of the Di~ r;h" ed Wind Energy A!30clation 

(DWEA) 

529 east 29" street Eric, PA 16504 

(6 14) 459·9378 

Joe DiFrancisco. Ownerof North Coast Ener&,.v Systems 

j~@ncel\lt!&Ym!'lill~£Q..m 

I am joe DiFrnnclsco, Owner of North Coast Energy Systems and Founding Member 

oflhe Distributed Wind Energy Association (OWEA].I submit this tesllmony as the 

oWIll:r (lf NCES and aliliCUVe member of (OWEAj 

North Cuast Energy Systems (NCIlS) is a fami ly owned busIness operating out IIf 

Erie. Pennsylvani~ and .~erving the trl·smte area (ml, PA. Ny), NCES is engaged In 

Ihe sales, installation, and design or rer""wable energy systems, including small wind 

turbines, photovoltaic (PVj solar, micrt)·hydroele ctric and hybrid ystrms. We al~o 

focus strotlgly on energy efficiency and the education/consultation of ~PJlropria e 

zoning ~nd permitting of renewable technologies; a subject that the OOf. has 

determined to 01.' the greatest barrier to lhe irHegration ofsrtlall wilJd energy in the 

US. 

The Distributed Wind Ilnergy AS5ociation (OWEA) is 11 national trade association 

comprised nfwind energy component manufacturers, distributors, project 

rlevelopers, dealers., installers, and advocates, whose primary mission is to promote 

and foster aU aspet'ts of the US distributed wind energy industry, OWEA has dozens 

of member companle!'; located throughout the Unfted States of whIch NCIlS is a 

founding member, 

"Distributed wind," also commonly referred to as "small" or "community wind: 

involves the use ofrypkally smaller wind turbines at hornes, farms, buS,inesses, Jnd 

public facili ties t() otT·set all or a portion of on·sill' energy consumptiun, This 

segment (lf lhe renewable energy industry already repres nt~ approxi'llately S2 

billlo" in new energy infrastructure for America's rural communities and 

commercial and industrial ener!,'Y consumer.> on al\ annualized basis. 
897 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.840

Also, more than 80 perccntof dislributt'd wind turbines sold in Ihe U.s, ;m.' 

manufactured here 31 home. We here at NCES only sell and lnsl<l1l domestically 

sourced Sma ll Wind Turbine equipmcut3nd Photovoltaic (PVj Solar equipment, 

American lobs are of utmost priority to us and our suppliers. We appreciate this 

opportunity to comment on certain expiring provisions lhat significantly impact our 

industry. 

We urge lhe House Ways and Means Committe .. to approve and send to the full 

House of R .. prusenta!lves legislation tha t would immedia!ely ext~ml the § 48 ITt 

election through 2016 for all sizes ofwind PQwer projects, An ITe extension would 

maintain a level playing field among competing renewable energy technologies, 

provide business certainty to the sma li ersegmenB of the wInd energy industry that 

a re g<'nerally unable to utilize the PTC, and enable it to continue to deploy clean 

renewable, domestically produced energy, using Americ;m made equipment, to 

drive economic growth and job creation in communities across the country. 

Thank you again for the opportunity to submit these comments and we look 

forward 10 working wIth yOLl to ensure Ihecontinued expansion of this dynamic and 

growing American Induslry. 

Sincerely, 

101' OlFranclsco 

Owner, North Coast Ene rgy Systems 

NABCEP Certified Solar PV lnsta!1er 

NABCF.P Certified Small Wind Turhlne Installer 

NYSEROA Eligible PV & Wi nd Jnsl~lIer 

PA SunshIne Program Approved PV 1l~ alier 

Bl·HS<l·9378 (office] 

814-602-S039 (field cell) 

~.ncenergyjys tems.com 
898 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.841

_ .............. S ... n .. t..t..,,, .. ~d"'" ~ • ...,.. ... Lo"""I<"".,.. All....." ~l.AA~. 

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, 
901 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.844

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902 

Statement of Northstar Wind Towers, LLC 1 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.845

I; Mark Ringenbe,g, Field Senlke. Djruro,-Norlfmo, Wind, 8/ai, Nebraska. 

e~p~'ifu!l'l urge Cong,esl 10 eNI~nd Ihe wind ~'gy produClian ION "edf/ (PTe) Of quickly as pa .. ibl~. 

A/I;uwgh ir r. roalare forollr ClJmponie •• urvival, and Nonh'la, Wind can no longe, pravid .. jab. 10 

Am .. rironI. dlle to YOIl' Inoctlon. pe,hopllM greole, Indultry ond IIlfltivol oll!le wholt con still b<> 

monoged If you gel!)p off your porrl,on pOllrions ond roke rhe orlion loti Med /0 occompiilh. 

r~e PTe dr/vel billloM 0/ dollars In prlvalt InveltmeM in ~omtgrown America" wind powe, eor~ 'Jt!o,. 

I have .een wind /o,m. re"iloli~e Ihesupply, monll/orrll,ing, pnd logi'li" Indus/rie. and provide wogel 

and Jobs 10 mv ,..ltow Amerkon~ indudlng mY5el/ (currently unemployed). 

I hoW! sun wind forms revilolil e communitle. - bringillg in conS/rUC!lonJob, olf/rIf. Gnd malMenonce 

fobs in the long lerm, and g~lIerotifl!1 reW!nue Jar rommuniti~. sdloalsond ho.pitol. over Ihe li/etime o/ 

Ihe P'Ojecl. In[f ~o"lIg the amounlo/ pawer rhm ou, COUMt)' gelJ from clean, homegrown, offordoble 

,esourus is all eJlcellenllMng lor 111/0 do - and thi. tOM credit providts On Inctntlve /or the wind 

Indullty /0 contillue to do!,,51 thaI. 

-/ "rge the commirree to loire up on e~tenIion o/rhe wind ~lIe'9~ prodm:.lion taN credit righrowoy. 
903 

Statement of Northstar Wind Towers, LLC 2 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.846

Ways and Means Committee. 

Tal/er Wind Towers, LLC (domg business as Northstar Wind), based in B/air, Nebraska 

is in the business of designing, having manufactured, and seiling modular wind towers 

forthe utility scale wind energy business that utilize culling edge technology and 

protected intellectual property. 

Northstar strongly urges Congress 10 elltend the wind ene~y production tall credit 

(PTC) as quk;/(Iy as possible as It Is criticatto keeping thousands of US jobs from going 

away and potenlially moving overseas. 

With the uncertainly thaI surrounds the renewal of 100 PTC and resulting shu/down that 

thiS will cause for flew projects In 2013 for the US Wind Energy tndustry, we are 

unfortunately on the verge of having 10 dose our NOr/h American business and focus on 

transferting our technology 10 China or Europe where government energy policies ale 

bolh stable af7(1 supportive 01 renewable energy technology, 

If II is the goal of Congress /0 eliminate lhousands of good paying American fobs and 

fur/her imperil our ene~y fulure, then please continue your partisan bickering and 

fighting and do nothing with ff1Specl to extending the PTe. However, /I Congress truly 

does care about the long-term energy future and the employment of tens of thousands 

of people of Ihisgreal country, we strongly urge this committee 10 immediately la/(e up 

an elltension of Ihe PTC 

Respectfully. 

Jeffrey Willis 

President 
904 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.847

S/lJIe"'N" f,u 'he u<vm} 

f"''''' 

Joyce Jllckson, MHA , Pr~s id nt and CEO 

Northwest Kidlley Centers 

ill SlfPpUr/ uf III, 

Ex lensiim or f he Charita ble IRA RoJlo\'er 

rf'S~,,' d 1(1 ,11" 

United Statn House Qf Represelltativu 

CommiUee on Ways ami Mcan5 

Subcommittee on Select Revenne Mcasun:s 

Hea ring on Certain E~ )i rin g Tn Pro\'isions 

Thu rsday, AI)ri126, 2012 

~'~e Ja~kSC>'l , MIl A, f'resideo'll M.! CEO 

() nh,,~s! Kidney Centers 

700 Broad"'~r 

Scnuk. W~snill tlm 98122 

Plklt~: 202.710.8S00 

Fax: 202,292.2707 

t~. w: I:.."'H1~U' " I.jllru. ..... org 

\\""".nl").:iojnc,l'.org 
905 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.848

\'JoMhwcst Kidn"y C .. mers respectfully submits th~ folio" ing eomm~lIts in support of"st~nding 

lh,· ch~rit.~blt Indi viJual RCli",mcnt A~""unt rull"vt. p",vi,ioo" 

North"cst Kidney C .. nlers is a dial}si. pnwi,kr ba»ed in thc Pugl'1 Sollnd region ofWa"hiugttm 

SIal ... We were rllu",k.'tl in 1962 as the world's !irst oul·of·hospit~l dialysis pWl!Plm. TI)d~y. we 

~re the I~rg"sl conulluility-bascd non·proiit dialysis provider in toc Uniu:d Slates, Northwest 

Kidney C .. ntcr:; pro\'lde~ care to appro.~inJaI .. ly 25 percent ofWa~hinglon Siale's dialysis 

fl'Iticnls in 14 c~nters and II ho<!pila ~ in King iUld Clallam counties. 

Charit~hlc dunalions provide vital funding fur the Nurthw~t Kid"",)' C~nter.;' mission. services 

tu our pati"ms and cummunity l>encfit$. We :lCtiyely si.'ck ",i,'ale. cUrpOrnlc and public §UppO" 

from individuals, companies and foundatiuns, In lilt' 2011 budget year. Northll'cst Kidney 

Centl"'" rt'Ccivcd $2 million in cit:ltilabJe donations "hidl indud.:d il1"alu.lblc IRA roIlO"CT 

funds. We u>c Ihese dO'~'I;o"s 10 providc: 

Clmrit)' care and ullcornpcllS3lcd dialysis 

F"", J'f"diaIY$'s, dialy~is and trnnsplant cla~ses 

Trninin~ .,fkidney duel"" 

Community oulreach aboul kidnc) hi:allh and organ donation 

Kid"ey disease rescaro:h 

Philanthropy fund, the lull co.l oflhese pmgt1lms an!lllalJy. 

}'aticl1ll!llro:. ffiuc8tion and rcs.carcl! are esscntial f'\lrt.'i ofuut mission. Nonhw.-"I Kidney 

Cenle.,." panicip:ues in 60 oUlr"ach events l:'.H:h yt':lr. relchingmore than 12,00Q p<'(tJllc ",iih 

kidney 'nfonnnliun. Our chronic kidney diSC'dStl program otTe.,." clas~ on tre'Jlm~m lIpliun~ gnd 

~ nutrition ror ncurly 1.000 prc-dial)sis, dialysis and Irnnsrlallt palients and ramily mcml>ers 

each year. ~t no cost 10 the p;,nicip;ml&. And since 2003. we hal'e hooled an alln u,,1 Kidncy 

I k'lth Fc~t ror African A'\Jeri~ an pa",ili.-s t" ed"cal~ nnd scn:CIl Afri~an Am • .."icans, who are 

four limes more likely to ha,'C kjdlley diiio:aii<-~hiJ!.hc' Ihall all)' mhe. population group. 

IfConsro:s. allow. lhe charitable rollove. provisions \j} expire. this action will hun most Il\Qsc in 

Ih" lowdt in<:omt· brncki!ls Ihal rely heavily "" charitie~ for sen'ices. In Ihcse difficult ccooomic 

I;mes. nOW mOre ,han eh'T. chwrilies = bridein!> lhi: gap by scrving Ihose in need as budg"~1TY 

COI'Istrnint5 pre"ent SI!U" olld f,'tl<mIlllov .. nlln .. nts from pmviding s,milRr :;crvkes, 

W .... !ak ~ pride in hei,,!! a CQmnUlllil)'-bnSC'il dialysis provider Ih~t providc-s p;!ticnt$ with mil"" 

lhanju$l dialysis 'rcatl1wnt~. A~ we ~elebrnl~ our 50" unn;versary thi$ ye~r, NOMllwcst Kidl1l.'Y 

C~mcrs looks f"rword to prO.vidillg cha.ity ~~"'. p.e-dialysis services • .,(jucaliQn. Irdinin8 arx.\ 

rcscorch 10 our fl'Jt icnls. uur communit), Hnd olher djalysi~ provide"; Ihroughuut the U.s. for 

many mon: years to come. Ex'endiu!' Ihe IRA I'I>lloycr provisions will enable liS to continue this 

importam work. 

, 
906 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.849

SmlCIllCll1 for the record submiued by: 

Joyce Jack$t)n, MilA, [' nosidcnt and CEO 

Northw~'St Kidn,'y Celliers 

700 Broad"'ay 

Seaule, Wa:lhinglon 98122 

Phone; 202.720.8500 

Fax: 202.292.1707 

J''l..~ Jackson.@.n ,,-kidn~ .,~ 

"w'~.n)' kid-.!!cy.or/> 

Email sent by: 

Sandy Mattliescn 

o.,nny Miller Associates 

400 N. Capitol Street N.W. 

Suite 363 

W3shinglon,IX" 2000 1 

102.783.0280 

' m:lthic.",·n(1i dcnn.I::milicr:,.Nm 

J 
907 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.850

1'11< !I""OI'.~l. Pa, n]".,.; 

.. NOVOGRADAC """,+ & COMPANY ... 

..... =om..,'''' ... '''''''''''''''' ...... 

(' I\.o i",,"" "ru." Sub<:<Mnn,il""' .... Srl~.' Ro""n". MCil>urn 

\\'a),.and M""",('qmml" .. Qllkc 

1102 l.,~,g\,,>nh II ...... om .... n"ij,I;" s 

"' ~i"jl.l"" tH" ':0$15 

On ",,~.,r~r,..., momber< onhi' No" M.,',~. T., ('mlh f 'NMTCl WOlkins G,,",p. " • • "~mi\ 

,0< rol"'l\i"~ . ",,'n'''''lJi rrl>""li!ljl ti", ""cn' "".nil, "" oo"ai " ~ pnn is;."" I~" ci !ll!.~ .~p;,,'<1 il! 2011 

.,,- "ill . 'pi", in :?(II': l. ~ ~"""n .. ··r., ~lro ok!!l ·) . Tho m" ~.,rU", N~H(" W<IfI,i nl', C;roup "'" 

[*1ldp""!S In the ~n(' rnd",,!), "hQ "or\; '''lI<lh,.,.,o hdp 1'1;'$01 •• '"~h"it. 1 NMTC Pr<)gram i<>"., 

""d rim;"" re<<l"""<'IMlali",,, ,,, rna •• u ... NM Ie P"'Il1'In <'-<'11 'n''''' .md.", in d<l;' ... .,.;"1', ""ncr,,; '0 

q .. lili.<I b<I,in,=! lilt." ... in 100,·i"""m" ""mm@ili,., ~'''''n~ ,II.: ""'miry, 0 0< group in",u<lt., 

011"""'<1:'. """"",iiI .. d lor !"'Olil ':omU1""ilY tklol"","<111 .",i,kls ("enf:I '·). <""-,,,I,,,,,!!!.. in'<:<I"'" 

..... ""'m."I>'OO I.,,,yo,,_ 

'1.'<.", IlTilif\!l h' )-"" '" "Ol""""~" It>< ",Ion.;,,,, "f \11,. NMTC pn>~""O """", Inl.,,,,,1 R"I'c'fIuo 

l'ode f-'SJ) '".:inJI!> .. 'non.",,"'! (rN,' ""IIori '~· ""~ . 11"" '"S III<- (>.IM1 C 10 olT;eI .hOn><llil" m'nlm"", 

.." r· ... Mh. We"PJIR."'''''. Ih. OJIilOI10rli,y ~> ,"trl",,,nl "" ..... )'. w "",hrr _. Iho ~ood ""' ,,'" dono 

b) Ih,· NMTC Pml!l"m. ood I,.' alSoJ arl'fCCiOI<' Ih,· ic""'1 or «,,,,,oilnK'III. dc-.Ji<ali"" ond QUI"'",," ,h" ha. 

1:><"" ,"""n and wnlit>""" ~'" '>10",," hy 'Ix (1)1'1 Fun<l ' '''' ,,,,,.,,..1 "".!l\l~ s..", ,~~ (-'kS") and tho 

1'''';1;'',) '' om". of I'll, rol,,,) In 'lnplen"'IIl ~ ",,,I on"nag,", Ike:. NM r(' l'f~u'n. Ih. Cll!'l I ""d. 

IRS and 'I'",,,,,,,,, ho,'. pro,on k) be ,, pobl" rnana8"1S ,,(I"" NM'1'C" l'f"!!",,,,, n,i. i) """'"",,d b) ,I'>< ,,,,,,,,,ndou; W=;I ,h. NM1'C I'n>g;.ln' h~ rnJ od "'n ,~ it< il'''''pI~''' In 2000_ !"l'lI-'no"."o 

",mmuI1"ies a<msI' In" «>"nlry nil'. 1l<11<'r. ".'<1 r,,"n ''''II"''"'' ;n\ <SIonc"~, ~r n"",o 'hln ~ I bill ..... , 11'_ 

. WI.oJ lto< ".ri(ou$ rr. ~ " 'Ihl" ",~"f)' Ihot "''''. <J "hh 11111""", 1",01,'"", In the>.: Intnw:li. ... 

", cn""", ~,", "'''''' dolhl'" I!'~ in'" lIigh l) ~i~trt:«Cd «lr" n"",iuc< "" <ffiti .. "I) a' """i~k 

Sirlt< "'. rrns ... n -. ;"""pIian. ,h. xlIOwl«lac. "dlkn,.,,",ng ""d • • perl""", "'''''''g """kiJlllllI$ 

ill ,lit NM rc Pr~~m 1",-, t-,n,n """'inw,,,ly ,l,i"I\-"" ho, ''''' ",,,,,_,,J ""d ""nlp'''''i,," ror ,100 NM rc 

""''"'8 pa"k'lra"'~ in Ihe N),ff(' I'n.>uom. ind "~;n , ;n"e$tO!'>. "".0.1<,... COl!> I"d q .... llti«l \Iu;I~. 

tk ,,,""""""" "r IIH::!< .nd ""',:r f .. lors to .. loJ 10 ",·or g"'''''''' tlr",i .. lC;c. "M ~rr""i, <Ilc.' " r 110_ 

N:.nC P"'i""'" in JdiHring ,,,...,h "","'-'<I , "Ibid, 10 qWllir,<-d l>u,i",~.' I'iu.."..- rO,,(>o" h.," ><I 

lid", ... ,11""'1 " ~""I''1' """,i,,,, of I"" NM1'C Progr.m I" 'ho n~li <'."~ m<lSl di~"",,,'" I",,·ino,,",. 

",,"mulli''''' ",III '0 qOlaIir..d b".'n ...... ~."tr'.,ing ,"'"" ''IC ' "",nn ... ,," )' i,,,pac1" 

' s.-t "II.,-p>n, InO""'",'" N\ITC "-I'T'I"" I'<'I ""II 11,11".- "n."!: .... oc-.ro..moloI'Tt" CMJilU.IJ !<III. V"""'.., II . I"""VII, 
908 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.851

The HOM",bl~ P&l Tibtri 

Subc<>mmil1O., on S~lod Re,,,"ue M~"Uf'" 

Moy 10.1012-

PBIl~ ~ on 

II ;~ m' l">rt:Im to note the c<>nlimlQl!S snpP'l" "'" NMTC Prognm ha$ T«~;,~d from C""gre5$ 

,in". ilS i"""p'icm. In Ihe T.~ R. li ef.lJnemp oym~nl II\$Unlncc R~aulhori ... t;on and Job Cn'!I,j~n A<1 nf 

2010, 1100 NMTC U"'iJ"-"' "''ll' 'Iendcd fo' 'wo Y..:IfS. Since ' he "'i>S' I"("(:en' .~Iensio" of ,he NMTC 

l'nlgnom in 1010. ,h. Ot>am. adminimll.i"" ","S ulso jIffl~ 10 .~""nd ,h. c">Ten' NMTC P~", 

fr{lm SJ.5 billion t.:I SS billioo in ilS mo>t «< ..", hudge' proJ'ilSaI. In .he ","Ok. of Ilu<Tk""" KAtrina, the 

NMTC Pro",,"n "' •• ~~p.1nded SI bill",n 10 encouras.. in"CSlmCOI in Iow-;ncom. commun;cies within the 

Gulf OpJ"Ol"1unily Zone. Du,ing lhe ,«:enl dOwnlUrn in Ihe C<:OflOmy. COI1gn:sS ~f'CIndcd Ihe NMTC 

Pros"'''' Bsain fro," S3.S biliiOOlo S5 billi"" In lhe 2009 "'=,ican Reco,""1)' and Rclnveslntcnt Ael to 

help Sput ,",,"'," ... OIlOmk dewlopment. 

We btlio,"" 111.01 0"" of Ih. I\lIm e/T""lh'c w~Y' 10 r"nhe, ;n,pro,'. dIe .mcic,>oy uf Ih .. , NMTC 

Pro1;lllin ""~IIirn a stalUwty thang. - 111.111 i •• mok. lite ",,--dil pontl. ne", or •• , a minimum. provide a 

1",',g.lentl ex'cnsion. -rhe cllrren! mnd of granli,,-!: a shon_Iem' ex,.""ictl or.ales uncenainIY in tM 

indll<l!)'_ l1"".n~inty'" any "'p<'<1. t"Sp<'<ially as ;, ,dot,,,, '" the fUlur. uf fundi"l1 for II). NMTC 

Pl'Oj;nul1. lim ~' Ih,' nUlnhr, 01' in.· •• I1>'" a,ld pou'11Ii~ 1 COil. willing ,~ ",nkil'al~, IUId al." 1I111 il< I"" 

ICHI of I''''g.tcm, inv,",,,nenl ,hiI' ... i."nll in",.,,,,,, and ( DE!; a,.., ""illing t<> 111:11< ... Unl"," 111<,.., Os an 

lcn$ion of Itt< NMTC. Ihe .. lImi""I''''' Man •• ,abl;.h<il .. 1.ti"",h,1' hrlwn-n publi. 3,m j>l"iV3t< SttW, 

;n"""','",n' r"",u'r<:cs lhal lh. NMTC l'rogmrn " .... Oflgirlllily dl'Signod I" prll"'O'. is inev,tabl ... 

Addill""311~. an inCr._ in ann ..... 1 ..... dil 8u,h",;\), is <-SS<' \i~1 10 expand ,h. 1o"".incO<nt 

I-"o"'mu"i ~ ;ml"l(:1< a5SQ<i."d ""ilh NMTC inwSlnlenl~. I" the '.pon "N~w Marke'l T3~ Credil 

P<"Ogt'lm-" P"""",il18 In,'os'monl in DlIl"'s>w Com"nlnilie<" publ;,hl'<l On 0<;11\be, ~O, 2[)()~ 1))' Ih. CDFI 

Fund. ,he del""""'ont "'" hin Ihe US -r .... 3j..,y ~""n~ibl~ r", m<>niU)rinl! ."d .dn'i i~l .... ing "'" NMTC 

I'nlgnlm, indkat.-l II .. , on .'cr:lge. cod' SI of f,,<krtli l.ll< n:~enue fOfll'l"" aj a «:"Suit of the N/o.-nC is 

es.intal,.,J 10 induce mon' Ih"n S!4 of in"e"n'tnlS in low·intl)f!,c oon""u"',i"';. runh ... O'CI" 7j'lll of 

NMTC tina""ed projec" an: Iocalo:<1 in ...... us '""IS Ihal mI'<:l 0Il~ or more highe, di.lr .... le, ... 1 crite,i. 

t)I'In ore m;nin'olly ~uin.'" under .1Ie P"'IIrllm .... Ie... S;net the NMTC rrognm·. inccp, iO!1 and tl,,·oug.h 

lite 2010 .ltoc.lion round. lhe CDrl Fund h •• m.de 59~ .w~rds allocaling a tol.1 "rS29.S billion in \a~ 

credil a"ll>ori~ to CDE!; IhrOlIj!.h a co"'politi"e opplie"IiOll process. Thi, S19,5 billi"" i""IIIJ ... S3 billion 

in Roc~wry "'" Awardl and 51 billion of'redo) aliocatiolloulho,lly 10 "" 1l5<<i ro, Ih~ "",overy.nd 

redevelopm"nl of Ihe Gulf Opp"Munity Zone. Through lite flsc.1 )"'" 2010 ,...poni"~ perioo. CDE$ 

disoo<$Cd .lm(~1 S21 billiot' in OEI proc<-..>J. 1o 0~<'1' live.: IhQ .... nd qu.lifioJ "'''Iiv~ low·i""OIl,e 

com",unlty busin-..'St''(.\ALlCIJ.'") r.Mndng bolh «01 ~'S1.1< de".lop""''''' anJ opilf3ling bU.l= in 

lo",·h",,,me communi lies. NMTC inv"-\ menl~ h..\e b«n located In melro a,m non-m<>lro arca. aaos. all 

SO.n.tes, lhe Dlstrkl of Columbia .• 00 !'urno Rico, In Ihe ,nosl recenl allocalion ",und, Ihe demand for 

Ihe NMTC~ u~ up dppro ima1.ly 2" percenl, 1'1k:,... ",'er. 314 .pplic 'ion~ 'ei:eivcd ""IU<'S',ng; $26.7 

billion or :l lloc~l;on. Then:;"; <IMrly. "OO"d f.,..- i"", • .".J <redil ,Ulhoril)' t'roIn Ih. ~"rrcnl $3.5 billion, 

An i""rei$'-" in annUIII credit .utOOrity would . Ih)w more IQ",.;n.'()mc <ommunlt~ in ,o:st""'nl~ and 

'u"'t~nli.lly i"<lca:;c I"" c(",,,nunily imp""I' .~I<",i'led "ilh NM'rc •. 

Willingn .... bii",~II"'" 10 p.Micipalc in U,,-' NMTC I' '''~~ ,,,,,,1<1.1,,,, "" .11"".,1)' ~nh""c,>J if. 

loog·krm or pernl."<,,1 ~Xl""~;"n of"'" NMl"C ,,,,,''''''-oJ a pr"vi.illn Ih., would Jl~w the NMn: to 

nO:... .. AMT. ' A long-'ffill c~(~n,ion "r'he NM'l'C with an AM'r o(fS<-"I,,,,,vi!i,,., "",,1<1 put I",' NM rc 

P'''1!.<l''11 nn par wilh L",,'lnc<.>n>e If<.>",i"g ra~ Credi, •. Ifistoric I"a~ C",>Jilll and <enoin R.""".blc 

En.f~ T. x Cr~di, •. ~OO ",,,uid i""re.", ,'''' d~m.~d b} in'·~st<.> .. f"..lhe NMTC. Wilh m"r~ dcmand by 

;" ,· •• to ... lhe pricing orNMTC. ,,,"uld ri"" and ,,,,uld lead'o an cI'cn 1:"',1.,.,ooun, oh"l>!;idy re""hillJ! 

q""lificd bo."inesoc •. In oddil"'" '0 higher "redil rrieing. irlhc NMTC P"'Il'"1n "'.,.., 1I1;,.d. J>mNn"", or 

' I',,, f,",herdi"".,.."", "t "MT imrli .. .,.,~,,,,- •• ,. 2.16,)rN<"·~1:. (",,,,,p>n),N,'" ,\\",k ... r., ('....til ILmJhook. 2011 
909 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.852

The Ilon"",blc P~I Tiberi 

Subcommin« 1m S~Il"(;t Rev""u. Mct1'!lll'l"< 

May 10, 2011 

f'all." 3 <lf3 

=ci"ed • long'lerm exten;;;"", COE. IUld <llher NMTC Prognlm parlicipMlS wwld <kdic~le more 

f\.'SOurces I" t'-c NMTC Program a"d ge.""a.e .Yen ~a < .. efficiencie •. Du. 10 the ocollomi. iIoWml!nl, 

die tioondngofqu:tlilied h<l!l~ h;lS btrome in<:r<:asingl)' wmpliC"Jlcd, requiring.induslry part,c;pont> 

to ~on~ pt'<lS'""'~lwl) IllOfI' <"""iI ~ in tron"""ti()ll Sit'\l<iuring whit.> simul1.J1llf'<1\lsly ensuring tllal liS 

much subsidy fro", Ihe N~rrc.,", """,ihle ",ach"" QALlCB •. 

III OOd itkK' '" pro,idilll; fOf..,' eXlc'II.i"", all ;",:rea.", ill .,<'<Iil authority, and ll o"ing for an off"", of AI>H 10 fvnher improV<! Ihe tffici'~lcy uflbe NMTC Program, We n~ni;(C lhal mere an:- waY$ 

to make Ih . NMTC "ion. even 1.'<11cr, Add",,,ing '""hnie.1 mollcn iOIt.. C<111rnl pUrpos<' Qfl"" NMT(, 

WQrking Grimp Ind ill m.mOoers on: dcdicalC<llll Ihal goal. Since 2006, l'-c NMTC Working Group h .. 

""ponded 10 rtql>O'" from "rcliSUry,liII' IRS, and Ihe ("01'1 Fund witl, "'"I).",nelld;t'ioll. II) l'llll,.,nee Ihe 

NMTC l'r<ll11BIII'S ability 10 deli,... signitkant community itnp.1i:1 to !hls nalion's Iow incom~ 

~otnmu~iti<'S, Thl"~ ~um"",nl 10\1011 r<n~1 Iil<' "Qrk nf SO m~mJx,r OIl:.ani~.alions puni.;1p..tli'>g Oil 

" " ",,,roys '-I)"r~rCl,cecali. ru,d coonl ~", dr:tlling =ioliS 0'"<'1' ..,,'erAI years. We Lruiil)'OU ,,1II11,1d our 

,,,,nooomlS u$<'fuJ:md ins""'-' i,'~, All !lflhe j'liMTC Working O"'Up'$ ,..,0000,'1115 r'1:'lrding I~ issu .... 

a> we ll aJ many Dlllers. can be found on our web']l~ at ""·,, !lmt~"(!rtinAA!P\!r,c\lIn, W. ",ould b< 

happy 141 l11eel lI'ilh y"" 10 discu~s(!ur"ommcn\' in t;.,nller delai!, 

,\s d,-<cll~d in d.lail aOO .... ~, we rt::>p<:('lfully reqllC;<;t Ih~1 Ihe Su~mill"" on S<'I""1 RC'~"\J" 

Me~.u",s """"ider the lung'te,,"' or I' ... "".nom ""Ionsion <iflh~ NMTC P"'gr.tlll i""ludin~ an inc"""" in 

a"nu31 credit aU\h""; ~ anti 3l1uw~ r"" .... O/T.." of AlI11 Th .... k you in od,ance f'" your lim. and 

careful cM,id"""I]"" "r tho:se I .. ""s. 

Pie"", do ,,0\ he!;ita,e 10 co",,,,,1 us if you h,w o"Y qU'''lions ~illg our .om",c",s or if we 

can be of r"rther I\SS;SlanCe, 

Y""r~ "cry (",Iy. 

NOVO(',RAOAC &'CO\trA'<Y llP NQI'OOMAIJAC&: ("OMrAN'I' LLP 

Miohael J, Non'l',l'8d.c 

ce: tnt. Ilonor.obJc l:>.:tve C~mp 

Chairmon "fllle Ways alld Means Com",il1<'C 
910 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.853

QkA 1\10 I OHIO ASgOCI~110H Of rn ~' NOH~ROfIT O~G.Mm,l,110NS 

~TAnMENT FOR THE RECORD 

JENNIHR ESCHBACH 

EXECUTIVE DIRECTOR, OHIO ASSOCIATION OF NONPROFIT ORGANIZATIONS (CANO) 

HOUSE WAYS AND MEANS 

SU6COMMln[E ON SEUCT REVENUE MfA$URES 

"HEARING ON CERTAIN EXPIRING TAX PROVISIONS· 

April 30, 2012 

Chairman Tiberi, Ranking Member Neal, and distinguished members oflhe Subcommittee on Select 

Rellenue Measures, I am writing 10 support .. recent sta tement submlnetl by man" Aviv of 

Indepelldent Sector, regarding Ihe ulenslon of la~ In(enlives that".e benefidalto Ihe nonprofit 

community. 

I serve as the eoecutille director of the Ohio Anociatlon of Nonprofit Organiu\lons. We represent 

SOO nonprofit men,ber organization' in th" "ale of Oh,o. DANO', mission is 10 provide lI!ade.,;hip, 

educaHon, and advocacy to enllance the ability of Ohio's oonprofit organizations to serve th eir 

communities, 

WI! are a,kinK Conlre" to Immediately pa" a one-year extension 01 .. li the expired ta~ e"'enders 

prOVisions whicl1 include tile IRA cl1arjtable rollover, as well as the enhaflCed deductions for 

donations 01 lood, books, computer equipment, and real property for conservation purposes. 

As I'm sure you',e aware, in recenl years, nonprofits have e~p£'"enced an in crease in demand lor 

,ervices_ In survey" OANO', members have reported a 4~" increase In demand lor their 

ofsanlzatloM' .ervices. It Is impo rtant t hat ConKre's reln'tat!! Ihe'<llncentives lor charllabl!! IMnl, 

pilrtlculartv durlnl il ilme 01 such great need. 

Thank you lor your conslderatlon. 

Ohio Org. nlutionl Signing Dfl ln SuP.J!QO; 

Achievern~nt Cente,51or ChlldrM ~ Highland Hills 

ACLU 01011" 

AIOS R,,-,fOe Center Oh'o 

Capital Unlversil)'· ColumllUS 

Chn5~an Camp snd Conference AssOClabon, On,o SeClJOO 

Clnc:lnnati Un'on Bethel· Cincinnati 

Fore Hope - C~umbus 

Godman Gund ~ C<>umbu. 

Le8de,S~rI<, Inc. · Columbus 

Ufe [nrk~me"t Centef · DiVlon 

Nehem~ House of Refuge· Columbu, 

Neighborhood Hou.lIl9 SeMceS of Greater Cleveland · CI .... elana 

New Avenues 10 Indeperdence - Cle .... land 
911 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.854

Oasis House - Dayton 

Ohio Campus Compact- Granville 

Ohio Environmental Council 

Ohio Jewish Communities - Columbus 

Pleasant Vineyard Ministries - Camden 

The Sandy Johnson Foundation: Making Our Roads Safer - Columbus 

Warren County Community Services 
912 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.855

DOle: "p,1I 26. 2012 

T~: HOuse Co"""iu. e Oil House W.y.t. ~.n~.Select ReYiow Me""u,es Suboom"'itle~ 

IleIJr •. ,emall"" I'at l1 be.1. Chal"" .. , 

fmm: 

I" SUpPDri 

tllo\o Mnnufac'"",d !In,,' •• ",,.0(1.,\011 

Tu" William •. EXeCUliYe Via p"".ideol 

tw,n;"m,li/tllmh.·u",.ur~ 

E'lt pired Tax Prlly;'.ons Uc rin ~ - .:IlCfg)l Sta r T.~ r.r~dn (cr M."u(.><turcd Hom", 

-ru ~.t ndcu· 

Th. Ohill Manufactured Hllu,ing Assn<i.tioo (OMH") " the ""Ie mdu'try or~.ni .. tion th., . erv.', ~II orOhlD as a non -profit lr.>de.ssociation. We represenl31i segments oflh. manuf."u.-..d 

"ouslng Ind u,try. Man"f. clu,e(i homes . ceount for approximately 1000f. 1I new hQu,ln@ surt!!n 

Ohio "nnu"lty. For m",1)' low and mod.r te I,,<ume dlltens., well 'SJ"niOrciUlcnsoo fI~ed 

Income •• manufacture;! humeownersh,p ,-"p,,$.ot. one of the "cry few opPllrtunitie~ for affordab le 

homeQw"er~hlp without any guyemm~nt ,ubSldll'$. 

On I>f:halfofThe Ohio M.m,r.clUreilllomes .... .,.d.tlon I am wtitfnS to lestify t" "'1'IJOft for th e 

eXlen.ion of Ihe E"ergy Star Tax Cre;!'t b<'y"nd 20 I I. OMHA and iU 500 Inri".try mo'nbe.-.; believ. 

yoluoble «eilit> .1Ich as th ....... yital to Ihe hou.ing Industry •• the econ<>my continuc.lo ""co"~r. 

More . nd mOrec<ln.u,ne,S todoy demand no<l'" en"1llY efficient prooucllli n re.pome 10 in<Te •• ;n~ 

cne'l)' co.ts and con.ervalion effo rls. 

Th~ n,o,t CfI't·.ffecli"" Itn'. 10 make a b,,",e mo .... energy.mcie"1 i.when It" finn built. The New 

Energy EITtcie"t lion, " Creillt {I MC Soc. ~SLJ helps rn,u"" Ibe corlllll"Hi d~yclop",ent of e"ergy 

emcient hUll.i~ ,,,luUon. thot rc'd"c~ huling ."d cooling CO!!S, .s wdl~. rod""," the hu rden on 

our n .. ion·s energy copacity. 

for the highly price .,ensuiy. ,"""""'cl"",,d hOlne mMht. Ih",e credits ..... vimllo helping huyers 

.ffo,d the added cosl, t<l pllrcl,",e "n ENERGY STAR homo and will si)(l,ift<lllluy reduce th~ CUSt of 

ho,neow". ",hip. 

CllnK'eS! nce;!, to conlin"" providing lncenliYes thor cncou,.s. the adoption "fthe m<»1 efficient 

technologies Md bulld,~g proctlces. These Inveslmenu In .".rgy effieJem:),are tho moSl CMt· 

~ffe<:live Woly '0 ~<" ieve Imme;!i.te ~"d suhsl;ln ti al reductions In &Iobal wormmg poilu lion. while 

.Iso enhan<ing our ""onomy, 

OMKA .1"nK with ~r Ngtl"nol Org."I .. t10n M.nufactured lIou.ing In.titul" h •• c l'''rlnc.-..d w!th . 

broad cualltian or entr!I.Y efficlenC}'. ","Yironmental. nd .rrord~b 0 hou,lng Orgo"i .. Uons In "Tlltng 

Con~ress to SUppori the extension and exp'n,lon the En~rgy S\;!r T •. ~ C .. d,t for h"meowne". 

1Il11r_Ave,_ UIO 

"'-,,,,","'" 

6t'79'J-llA"I~1 

61(_""'_06'0111 

'fWW, .... '""' ... "" ........... <O<" 
913 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.856

PARTNERSHIP FOR JOB CREATION 

STATEMENT FOR THE RECORD 

HeARING ON CERTAIN EXPIRING TAX J'ROVISIONS 

SUBCOMM ITIEE ON SELECT REVENUE MEASURES 

THURSDA Y, APRIL. 26. 20 12 

Th~ 'an"~nihip I;'" Job Cremio" is an alli ance of sla k~hoh;leni in lhe New arke~ lax C1't.."tlil 

(Nt-.ITC) industry. nc1l1din~ ""mmun;!y dnclop ~n!l~lti , (CDEs). in\"e~loI1<. and a<:couijting 

or con~ul1inS tlrm$. The l'anllCrship apJl"l"crimes lhls OllponUnily lil share its .sIOI~mcnl 011 Ihc 

illlpiJ"l"tollceoflhc New ar~CISTax Credil and Ihc n-eed for a IOllS·lenn N pt'1T1lancnt ~xlensi<lfl 

ofth<' credil as" p~n f~form Qf thc lax code. 

'The NMTC (I.R.C. Sec. 45D{f)( 1)) provides inws.(ors with fe(krnl tax Cn.-<lilS in nch~ng" Ii" 

m.1kin~ e<Julty Inl"eslmr nls In Investment "chides known a.~ Community Devclopment Entities 

(CDEs). In 111m, CI)E~ Pfovidc:. lo,,·rntc limlncing to Irnn sfoml~!ive projctts lind small 

bu;;inesse:; in hig,hl y distl"<"sscd COIlIlllllllilies octu.<s IIII' coulllry. EliCh year. C DE:s vic for 

~U{)C(llinns in 0 CQl11pelilive. blind ly s<on.'d sppliClllion pr(l(:r5S ',VI'TSl..-n by 11](' o...1l3rtmcnt of 

Treasury's CD!'I Fund. Since the prognlm'S creation in 2000. the' CDFI Fund has allocaled $33 

hillion in lax cn.-dil uUlhority at a total aCI,,~1 cost of JUSt of rouYtly S 13 billion to tbe Treasury 

tkpart ~nt, as only 39% ofthc allocation authurity can be claimed a$ tax c",dil<. 

lllC Ncw Markets Tax Credit cnjoys II Ions hi;;!Of)' of bipnnis;1n ;;uppon. T he cn.-dit wns p;lSSCd 

by a Republican Congress nd ~ign~d inlQ Inw by "residenl Clinlon in 11}OO. II was implem<'llIed 

by I'resident Grorg~ W. Bush. whUS<' ~dm in;smllion !rcngth~T\cd th~ credit by ~dd nJ; l\l"W 

:tCcoulltabilily measul"I.""S. That spirit uf bipanis3n cnduR'S wday. Si)(ty-fuur Iluu,;o:: m~~nt>crs, 

including 14 on the Ways and Means CoouniUce. have "Iready signed on I<J ItR. 2655 (Ncw 

Man.cts Tax Credit Extension Act of 20 11 ), " 'hieh seeks ~ Ii"~- ye f cxtension "r the cfediL ,\ 

companion bill in Ihe Senate. S. 996. al"" cnjO)~ Ihe hipanisan suppon of24 >tn:1I0f"S. 

The Panncrship does $UPl"'n ;, short-tcnn ~xlcnsiol1 in Ihe j",crim unlil comprehcns;\'c (a" 

refum' is undLYlak'"" bul we slro.,.\\,y bellcw Ih" "'"king the ~M"r(" a """,,an~nI p:m of the 

Inl emal Rc,cnuc' Code would mah this cr~dil ~v~" more successFul than it i. today. 

The I'nnnership \\"11.'; pl~:tSCd Ih~l. in his o~IIinJ; .Iatcmcnt. Sllb;...,mmitll .... Ch3imlan T iberi 

:tdVucaled Ihat ",,"illt II ft"'· ".TccfltiollS. Icml'orar), tnT ,,,"ol'ls;,,,,s 111</1 UNt ""01"111)" 5hQ,,1<I hi: ",«</e 
914 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.857

pc~",o"~,,,." Tb~ NMTC is u ~rfCCI c~ ~"'pk of" lL~"pornl") ' provision Ihal. if ",ade pcnl,arn;))l. 

would resuit in an c\en mmc' sy':ccssli,) prog",m. 

Th~ NMTC meelS 11K- criteria SuocQmmince Cll3inn~n Tiberi identified ~ nc"".::;sar}" \0 c'aIUll\C 

w)"'ther ta~ pruvisiu!lS 3'" crrcc!i\"~ : ".lIcthcr lh~ y C,",,'I(C jobs and whelh~r they 51ill So.'T\'~ their 

inlcnded purpo.>e. The NMTC crc'a(csjobs and meCIS ;(~ in(cllded pUrpoM" b)" crealing a busindsled e~p3n,ioo ofin"eSln1Cnl. job crea(ioo. amJ economic opporh",ily in comm,milics ami~led by 

high uncmployn,cnl w,d pOv~rty. ~ COJlgre.>smlm Gerlach (K-PAJ 5131"d durin g II>c hearing. ~8% 

ofNMTC-fin3nccod invcslmc",~ ..... ould nm hav~ bcc-n made wil!lou( Ihe help lh~ crtilil. 

(nnumerable Incal small bI,sim~'=s have been finuuccd 10 O»C1l or expand In ~!I1ll1&(ing Br~ns. 

prn"iding a sus(ainabk '-e\)t)omic .,,!!i"" IhOt will dri,·c comlllunily dcW(Opm"l1l 8nd job 

crea lion wcl( ~y~md Ih. lifcspan of II\{: !<I.X credils. Beyond lhe dim:1 job,cfC"dtion beT1Cfrts 

a~cru~d as a ,,'Suh of 3Uy singk proj\.'I'1. Ihe Subsequent eC<II,oo,k aclivity Ihal ;nc",3S<'S as a 

neighborhOOd ",J",dops around a NMTC-anehor.::d projc"C1 !! eni:"'I~"s 3ddilionlll joh growlh. 

addiHunal eco nomic ~c(iyily. nod ~dili()n,,1 lOX r .. ,,·cnut. 

The NMTC progl":lm is 3mollj! Ihe Top 25 progrdms g'H-n Ihe presligiou~ '·!nno .... ~li,,!Is ill 

American Go,""""nCrll Award:' adminiSlc.."j h)' lhc Ilan'ard Un;'·L.,.,,;I)' Kenncd} SdlOol of 

Governmcnt. , 'hu! .... "Cognilioll ~ due in large pan IU Ih~ crcdi!" s IrJnsparency ""d ils II,., of 

bu~in<:"Ss-oriemed mtchuni~IM to 3I'culllpllsh _ial "nd ceooomk luIs,ions. in a procc~ kno"·n 

as "communit)" capilllli :' 

Whal makes Ihis credil so cl)Sl_clTcClivc fot taxpaycrs is Ihe e~l",ordinary .mo,,"' of private 

capilal Ihal ~ un( och"<.1 tl1rou"h Ihe i~ linli\"~. A~cordinj;. 10 <LIla from lhe Trhsllry Department, 

[ot e,'cl")' onc dollar of fedcrnl lax credit. s a ofpri'·.I.· capital is nc,.~!;cd. 

Th~ CQf1S1ruet;on or espansion of r;,l~i I C~I1I~rs, fatlor;.-s. job lminin!!, celll"'~, small businti!".CS. 

chaner schools. and h~~hh ccnll'rs arc just 3 sampling of Ihe alT"J ~ of eata\YOlilll! projecl$ lhal 

I,ave I;le<.~, 'nadc ptJSS ibl~ b~' Ihe NMTC". Such "ariety is due to Ih" nc.<ibil;,y c)flhc ta.x credil in 

ailowin!!, !oca l market forces 10 decide which projeclS and bllsin~ ,ses are financed. so Ion!; lIS the 

pr.>ji."Ct mcelS Ihe I>a~k: crileriR of hdng located ill n Cc"'<)l10Inical\) dj lre~ sc d CCIl~U~ Imel, ,,'ilh 

Ih~ im~II1iQJ1 of gah-an ;n ~ economic growlh. l"relIling IQClII jobs. and impru,'illg Iru~ ling 

tOl11munilics. 

While Ihe NMTC ha!< a lOllS hislory of success. il would be: e"cn mon: su.:ccssfu! if il were 

induded a~ a pe",,~n.,,( pan o rlhe IPS" code. Cenai",y in lhe 13S" rode WQuid 811"'CI even mINe 

inVe510Tj and allow fQr 'I~"111' planning and inereas.....t job cre,l'on. Periodi •. temporary. or 

rctroacliw Ulcnsions "l1d~nnine Ihe drCC i"CllCS~ of valuabll- inilialil'es. sueh as I),e New 

Mar\.:clS Tax Credit. Whro uncertainlY re;gll~, ;","cs'ors il ,,)1 Ihe siddi""". As Sube",,,,,,illce 

Chainnan Tiberi nOled. ""!lIl:ing lax policy Ihis way i)'carly c)((en.ions] wreaks havoc on Ihe 

alliJily "r familici and busine,,~ 10 plnn lOr the lUlU"" wilh !;Orne ccna'nl}.~ Simply PUI. 

capilati~m L·tUl·, wor\.: wi.hou! C"Jpilal - and unc nain y nlakes eapil.:ll h~rrll-r 10 come b} . 

The NMTC gah ani,"'~ (omm,mil), d;o,e!opmenl. gc.ncrales ec",mmic a(l;'·;ly. and (KUvi<ks ~ 

suh;;t;lI1lia( relllm lor 1~~payel"5. making il B prim~ ~:<nmple of >IlllrW (;IS pOlky. Yet, 

~on,,"un lie i anti in ~eSlOrs ar~ unablc Ul I"C:lli1.c Ihe full p01.~lI!i,1 of lhe prol!J'l'" be,-.u$l: of il5 

Icmpornry nature. ,"'I:lking lhc credit a pcm'ancn! lixlu", of Ihe UlX code would I1110w CDEs 10 
915 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.858

plan and jjnuO\ce "'ohi-year in,'cs,,,,cnlS n'ore cfficicnl/y and atlrJCI mo", inves!Or demand for 

i/,.. credits. thu, r~",uhin!l in ~n eve" grealer impact on communi1i"", mo", job crealion. and a 

hjgh~r l"<'!Um on inw>lmem for th ~ t;a~paycr, 

The Pannership ccnainl)' .. ndCf1>wnds Ih~ cum:n1 fiscli l environ"'ent and SUppofU a shon l~nn 

cxtc,,~ion of the NM I'C ifC(>ngn:~s is II,mblc 10 mah lhe program pcm13nenl unlil illacklc< lax 

refonn, Howel'er. for th~ n:asons not(d abovc. the progr:lm would be: cI'cn more snccessful if 

(hen. "'liS the cen3im~ ofpennunc1>c<,. rolher than yc:.rly e.xtensions. The !'3nner$hip appreciate'S 

Ihc oppontmity w share its lhoogbls on this imponancc issue and u'1."t.'S Cun~ss to help the 

NMTC Program exceed its currenl poIe",i"1 by providing certllimy b} making Ihe Pro~mm a 

rcmnmcnl pan orlhe ,~x coo~. 
916 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.859

SUbmission for tt1e Record 

Hoose Committee on Ways and Means 

Suboomm'ttee on select Revenue Measures 

He<lring on Certain Expiring TalC Pt'O\Ils1Oll$ 

Thursday, April 26, 2012 

Statement of Partnership for Phllllnthropic Plllnning 

The Pllrt/1ershlp tor Philanthropic Plan"lng (PPP) is a 501(C)(3) public clKlrity whOse miSSion 1$ 

to help people and organization5 create charitable gi~lng experiences that achieve the 

philanthropic, financial, family and personal goals of the donor. f>Pf> helps maximize the ~alue of 

charitable giving for nonprofit organizatiofJs and donors by Ilelping fundraislng professionals 

pro~lde the most meaningful charitable gIVIng experience for donors; helping financial planning 

professionals provide their clients witl1 excellent advice on charitilble gfvlng and estilte planning; 

aod helpifJ9 I)OOprofit i'llilnilgf!rs afJ(l trustees better accomplish the misslofJs of \tIeIr 

o/"9anlziltions through meaningful philanthropic planning. 

PPP achieves jts mission through research, educat!ol1, adVOC3CV, commufJity dialogue and the 

setting of standards and best prac.tk:es in philanttlroplc planning. PPP is supported by more than 

115 counc::ils representing 8,000 planned gMng and major gifts fundraisers, nonprofit managers 

and trustees, financial and estilte planners, trust managers and a variety of donor advisors. 

CoHed:ively these professionals facilitare billklns of dollars in charitilble glth; each Y1'ar. 

PPP has long adVocated in favor of government pOlicy ttlat encourages tharitilb~ gfving. Pf>I>'s 

JlO'5ltloo Is based upon the critical role of phllanthrop~ In ttlls country. Tax incentives for 

charitable gIVing sel1d an essential message about th~ ~alue our society p~Ce5 on voluntary 

giv1ng and the Important role of charitilble organizations In meetlf19 critlcallndivldual and 

community need~. The true beneficiaries of the charitable donation all! not tl1e generous 

Americans who make charitilble gIfts, but all cltLrens whose toeal communities and our nation, 

are made better through the work of dlafltab+e organilations. 

In this spirIt of encooraging responslole philanthropy, PPP strongly supports federalleglslafron 

tl1at permits Amerla!ns to uansfer money from their Individual Retirement Accounts (lRAs) 

directly to nonprofit organizations for-d1aritable purpose$, wlttloutsufferlng tilx penalties. This 

legislation Is commonly referred to as the IRA OIaritable Rollover. 

In August 2006, a limited version of l.t1e IRA Charitable Rollover was first enacted Into law as 

part of tne Pension Protection Act of2006 (Public Law 109-280). This pmvi5ion permlned IRA 

owners beginning at age 70 'h 10 make outright charitable glth; of up to $100,000 per year 

from their IRAs directl~ to eligible dlarlties for catendar years 2006 and 2007. The donor did not 

have to report the distribution as taxable Income and was not entitled to claim a charlta~e 

Income tax deduction for the gift. The IRA Chilritable RoIIoveT WM" extended for 2006 and 2009 

as part of the Economic Stabilization Act of 2006 (Public 110·343), but then lapsed as of 

January 1, 2010. On December 17, 2010, the provision was retroactively elrtended for 2010 and 
917 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.860

Into 2011 with the enactment of the Tax Relief, Unemplovrnent Insurar.ce Reaut.noflzation and 

Job creation Act of 2010 (Public law 111-312). Unfortunately, the IRA Charitab~ Rollover 

expired agaon at the end of 2011, and Congress has yet to act to extf!nd or expand this 

Important tax provision. 

PPP Is p~ased to report that the IRA Olarltable Rollover, as enaded In 2006 ttlr'QlJgllout 2011, 

has generated an enormous amount of newcharitabte 9i~il'\Q. for el!ample, f'PP has received 

reports of more than 4,500 separate charitable gilt!; made purslJant to this provision, tOlllllog 

over $82 million. l11>s data is the result of a IIQluntary, limited survey condl..icted by PPP, so the 

total number of charitable gilts from lRAs is lfilely mudl higher. In addition, P!'P's data shows 

the most romrnon IRA Rollover gift has been $.5,000, with the majority of gifts ranging betweeo 

$ 1,000 and $10,000, which means the IRA CharjtabJe Rollover ls allowing older Americans, 

particularlv those individuals who do not Itemize their tax dedLJctions and would not otherwise 

receiVf' any tiIX benefit for their ch,lfltable contributions, to donate retatNety modest amounts of 

money to thousands of nonpronts tI'\iIt work every day to enncn l>ves aQd strengtt'len 

rommunities across the wuntry. Because the IRA Charitable Rollover has now lapsed once 

again, however, our niltioo's charities - and those. they serve - are lo5ing millions of dollars in 

new dlarltable gifts that all! generated by this Important ta. provision. 

Acwrdlngly, PPP stronglV suppons e](tl!f1sion of the IRA Charitable Rollover provision that 

expired at the end of 201 i. In addition, PPP supportS the Public Good IRA Rollover Act ot 2011 

{H.R. 2502}, legislation sponsored bV Representatiyes Wally Herge. {R-cA} ami Earl Blumenaue. 

(O-oR), which would exparld ami make pelTTlilnent the!,RA Charitable Rollover. PPP bellel'l!S 

tills legislatiOn will spur mldi(l(ls of dollars In new ch~ritable donations that will 90 to slipport 

critical programs and servk.es for those In (lI!ed. Therefore, PPP, aM the thousamls of 

furnlralsers, donor advisors, arnl charities represl!nted by the organlZ<ltlon, urge Coogre5S to act 

i n the comiflg months on the IRA Charitable Rolloyer. 

Tanva Howe Johnson 

President aod CEO 

Partnership for Phllanthrop;c. Planniflg 

233 MCCrea Street, Su\te '100 

indianapolis, IN 46225 

Phone: (317) 269-6274 

Fa.: (31l) 269·6276 

E-mail: t!llQ!In~U'9.9U1 

www·l!r1l!net.o!!l 

233 McCrea Street, Suite 400 • indianapolis, Indlal1,) 

317-269-6274' f. 317·269-6276' info@pppnet.org· www.pppoet.org 
918 

Statement of Patricia Christensen 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.861

Name: Pmriein G. hrisun~n 

Address: 135 BennetT Ro.ld, Fmnkfon. NY 13340 

Phone Number: 3 I S-7Q4·f!S7S 

Conlael E--mail AddrCl;s: n£h!!!!.ensenU~!M!9!d£UII"I 

Tille ofll .. aring (""Hearing on Cenain ~pirinl> Tax l'rovisiOlls··) 

Article 10: PTe for the Wind industry. This industry blows around 

a 101 of hOI air and empty promises. California a state Ihot has had wind 

turbines fOT ye:lts is ,I vast wasteland or ub:mdotl wind turbines. Why? It's 

simple the fcdcrol subsidies have been exhausted the wind developers were 

LLC. so !l1e)' protected Ih.:mse lves from the decommission clause lmd ned 

the area with the truck loads of taxpayers money. ·'They laughed all the way 

to the bank". Now "run away" turbines arc a common occurance in 

California and these huge stnrcttrres are left to rot and become 3 financial 

burden on the slale. A definition or insanity is doing Ihe same thing over and 

over and expecling diITerent results, if this continues 10 happen in Cal iromia 

why would be· pullhe entire Uniled Stales in Ihis losi ng silu3tion? The wind 

developers are nothing more than modem day carpet baggers. 

Home Rule: Each town has it's own unique situation. The town board 

members arc elected by Ihe pt"Ople and represenl the people Ihal have c.lected 

Ihem. They give c<lch tllxpaycr thl' opportunity to express their opinion and 

have their voice heard. By crellting the siling bo:mls you (lrc laking awoy Ihe 

11;lC1l1 voicc and landowner no longer will have a voice thot matters. The 

b<mrds come and go but a b.1d decision will hllve a life time tasting effect. 

Unfortunately. these decisions don't have the ability to allow for do-overs 

and jrthey did the damage will already be done. I local voice has 10 be 

In my research I round this article !tbout wind, energy <lnd common sense. 

I lhough it was practical and applies basic arilhmctic and science. We need 

10 stop this Iceding frtn z)' of people Iilking advantage or our government 

and our precious 13X dollars before this counlry is bankrupt! 
919 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.862

Which in vestm ent would be more cost effective: energy 

efficient light bulbs to redu ce electricity demand or wind 

turbines to produce electricity? 

Both approaches arc widely touted as good for the environment but 

their relati ve cost efTectiveness is seldom compared. It can be 

done with simple arithmetic. Assume $2 million is ava ilable 10 

invest. 

I. Energy emdent light bulbs. Home Depot is o lTering four 

(4) 14-watt compact nuorescenl light (CFL) bul bs for $7.97 that 

are claimed to provide the same light as a 60-watt incandescent 

light bu lb, with a projected lifetime of 8000 hours. 

• Assume the price is S2 per bulb to make the 

arithmetic easier. 

• If the bulbs were used an average of 4 hrs per day 

over 5 years, that would add up to 7,300 hours (365 days X 

5 years x 4 hours), or less than the claimed lifetime. 

• Each 14-wal1 compact fluorescent light (CFL) woul d 

save 46 watts per hour of use in lieu ofa 60-wa tt 

incandescent bulb. 

• Over a 5-year period (4 hours per day) electricity 

savings from a sing le bulb would be 335,800 wan-hours 

(46 watts x 7300 hOurs). 335,800 watt-hours = 335.8 

kilowatt-hours (kWh). 

• $2 million could pay for 1,000,000 of the compact 

fluorescent light (CFL's) advertised by Home DepoL 

Using these assumptions, 1,000,000 compact nuorescenl light 

(CFL's) could save 335,800,000 kWh or electricity over 5 

years. 

2. Wind Turbin e. The current "rule of thumb" pri ce for a I 

Megawatt (MW) wind turbine seems to be rough ly $2 mi ll ion 

(if installed in quantity). 
920 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.863

• A I MW wind tllrhine operating at a generous 30% 

capacity facLOr[ I J over 1 year wou ld produce 3,066,000 

kWh ofelec.tricity (1.000 kW x 8760 hours in year x 30% = 

2,628.000. 

• Thus, a 1 MW wind turbine operating over 20 years[2] 

at a 30% capacity factor could produce 52,560,000 kWh of 

electricity (i,e .. 20 x 2,628.000 = 52.560,000). 

J . Compa.-ison : Based on these calculations: 

• A $2 million investment in a wind turbine wou ld 

produce 52,560,000 kWh of electri city over a 20-year 

period. 

• A $2 million investment in compact nuorcscent light 

(CFL's) could save 335.800,000 kWh of electricity over a 

5-ycar period. 

• Tlllm!Ll!.re., lite ;lIIles/me"t ;1I_CFLs lI'ou/J save more 

I11/JII 5 limes as milch electrici{y ill 5 years thaJ.L,he.lJ';lId 

turbine "'Gultlerm/ucl! ;1110 lears. (335.800,000 IIMtle,1 

by 52,560,000 - 6.49.) 
921 

Statement of Patrick Callaghan 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.864

AlIcnlion ways and means tomit}. 

i, 

I'atrick Callaghan 

(}(.o3 NCldwny Dr. 

Austin. TexiIS. 18729. 

I'hone # 512-257-211] 

E-Mai] - patriC\{Q6@aUSlin.JT.com 

I13ve gI"Ca t t'onel'nl about Ih~ continuing l"ffon ofl\ ind and r~ ncwabll' cnoxgy being l:ll(cd. 

"hen 11"1.' nced I,) funher d"I op ahcmutive cn"rgy. 

As American's IIi: necd 10 be ~Ithe fore front ofrenewabli: energy. It is the typo: of 

ene®, that will always be al our disposal. 

and rcwnuethat will bc.kept in Ihe United SIMes, l;:or a]] American's "nd its government, 

In today's ceOlHlmy whl'1"l' malty johs and manulilcluring products;lre b.:ing shippt'll 

OI'Cr>CCS. for large corporatiOIl profits. \\"1.' lIel'll to invest in every rmcII'able CIlCTg)' 

program we can. Oi ].l.'QaJ. and natuml gas area finite thing that wil l one day run OUI. 

And \\"e should Co nseT\'e those prt'Cioos cOIllinoditil'S as long us they lusl. Wind energy 

will losl forever, as far as mankind is concerned. And we as Americans C311'I 311"or<lto 

continue to fund foreign gO\ ~mmenl$ and companie~ with our r{,l"nue when we have th l'. 

chance 10 kc~p as O1u(.,h orthal fCI'enll~ for oursc l'~'S. N01IO O1entionthejobs rcncw!lbl~ 

and ' lind energy can and docs creale right ho:re in lhe U.S.A. Plcase VO\l' (0 ~orninuc thc 

ta'l: breaks lor wind <'nergy. and in doil1£,..IoO. help Am<'rica to Slay strong and 

cconomi(.;ally independent as possihle. 

Suppon all rcncwablc energy programs Bnd nne day. when they too ore , trong. thCJ;c 

energy pmgJ"Jlns will prol'id..: addil onalla~ lilT the govcmmt:n\ and ils p<"Oplc, and will 

help keep this nation as strol)g as "'" need to be in orucr to preserve our way offife. Not 

the way of life of foreign companies and g(),·cmmcms. 

Th~nk )'OU for supporting America 

Sincerely, Patrick Collaghan 
922 

Statement of Patrick Hagan 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.865

Mt,Y 10,101 2 

Patrick I lagan 

61 Gral1d SL,lC 

Jer,;c~ Cily,NJ 07302 

7183601696 

ptrd;hgnj yall OO ~('lm 

United Slalc~ Cornmillec on Ways & Means 

Distinguished Mcmbc~ 

r implore you 10 disconlinue Ihe prodLlction lax credit for the wind turbine indu~tl)'.We 

can nO! cominuc to support financially or ethically sueh a Imnllrul.indlieielll and 

futureless option .Ourpcople and wildlife lire being harmed in the name ora so c31kd 

green en~rgy souree.A lillie study quickly dispels the green aspccl.Onc is Ieli with the 

conclusion tiM the only green is lining.the de\"elopt!TS podels.Rcmol'e thl' subsidies and 

the prolifcmtion oflhesc bc3StS m:ro-os our bt:3utiful countryside wil! cnd.Our birds 

including protected species will [hank you. 

Qur nation is in ncc(] ofa comprchcnsi\'t' energy policy.l state the o bvious.Subsidised 

wind encrgy has no place in this discussion. 
923 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.866

~ PATRIOT RfNEWA6LES 

'. 

6/28/2012 

Way> and Me.n.Cemmlll"" Offioe 

111)2 Longworth liDU'" Office Bundlng 

Washington D.C. 20515 

0.. •• Committee Memn.. .. , 

I would like to ".press mv ,upport jor Ih ... e'lemion of thO'. ProdU01i"" T •• Credit (PTC) to su'I.I" the 

H'MIk>Pmllol a/wind ~ner8V' A, you .re "wore 111" PT<;; and the Inv .. tment Ta. (,8<lil (lTel.nd granl 

"""I,,, allhe Md of lOH. In Ihe fennl past, the PTChu .... en giv"" vear-to-vea, UI"nslon. t!>ata,e 

usually enacted feuo.<ti~ly. lew month. alte. the I •• credll has expired, luding to uncert.lmy and 

,n<tabjlllV throulhout the wind e<lerlV jndu,trv. We urge yOu to move away 'rom (hi, model of ~.rIO-'(t'a'Plen';OM .nd lo,upport.long~ Itnn (4) year, ,," en.lon <)/I ne PTe 10 pfO'lide. liable, 

long-te,," market for w,nd energy that will i"",use jobs. reduce energy COSI., and foste. ~eKrOWf\ 

A'fIeriYn ~nergy. 

Conol5lenlly .• 'x 10 Jht montte; before t~~ PTClhrealen' to expire, th~wind ""~rgvind~'lry, "","of 

the ast~" ,rowin, indu" ne . In the Unlled Stal"" oorne, s", eeo~in, 10 • .~ . f otore development I, 

pot on h~d, <:onWuClion job, are lost, and the manojaoturlnB • ...,tor I"vs·olf employee, to •• oid the 

'nevi,"bl ~ , lump.1 Ih e~ l Ih. year. R~cently. W<! n."" ev ..... ~ea'd 0 1 . majot wind turbine 

manuf.cture, turning down 0"'" $1 bi llion In turbine 2012 sales beo:auot they nee-ded addition,,1 

luilltle, to kO!"ep op wit~ the demand, Dot Investor. were unwllllnB tolln.nee new Iilcilltie. due to 

uncertainl'l of the PTe. Thi. boom·Do.t <:y<le h .. the on<ntended con,elluern:e of dec reosinK 

milnul.etu,inG """nom,e. of :MIle ~nd Incrro:.i", co,t .. 

In the event that the PTC ~ nOI extended, the wind industry wilt e .. enlially dl,oPl'<'3r overnight. lo"" 

of tllo,,'HInds of re .... t<~ and development, o"",,,,,,,lIon, d""el opmen~ and m."uloclu"ng job, wou ld 

be lOll. In OU, own development &' OUP, Ihe PTCi1 an ~I~n!lal factor in P<'oje-ct tronornics. Without an 

xt ~n on of I~ ~ PTCal1 010\11" proje«s wil l beput on hold Indefinitely and ll l\J1u, ~ de.e lopment work 

Will be d,amatically 'tilled back. The ... projects take 3· S year>, Of more. to develoo, wnich i, why ,hort· 

term e'Hlnsions of the PTC do not help t he industry iKhlelli! the kind of 0011 rtd....,ion, that ; ,e 

needed to ""Ip It ,ely Ie .. on the PTe. Catch 22. 

Tl>e HC ,hould been seen a,.n Important inyeltmenl in our ooonu v', luturt. Wind poweri, a d e.n, 

eml"ion·free '>OUrce lit gcne .. tion " nd an Amerlc.n alternatiye to odd 10 I~e ener,y mi~. We cannot 

continue to (M!f!ool: the e.......-dauntlnB threat 01 clim.te d>longe and the con.t;l)"1t supploj of America~ 

dolla .. towuntrie,lhat do not h.ve Ame rica" nler~'t. tn mind. "These ;,.ue, are not goinB away. Why 

pas, the issue 10 lu u'~ ge .... ration, when the prob l""" will onlV become more and mOre difficult to 

odd'en? 

1I. ·,.a~" (ju. !. t"' 111. · ~d ••• , ,,' •.•. ".·~I·r;J.,._(..·. "" 
924 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.867

~ PATRJOT IliNEWABLES 

, " 

G'.tn (hf: tcOtlomic and POl i\iC<lI benefits oIl~~POrling wifld ~e IrI, I 1Ir000Bly urge this comrniUte to 

talre up. multl·~ea, extension th~ wind energy production lax cred~ . 

Th',"~ you for you, tirn~. 

Todd Presson, Chioi ~,atl ll Offie .. , 

PM'lot Renewable" l lC 

549 South SI. 

Q~jncy, MA QHli9 

,I, -, .• ~" ""''".N teA .U. · ~d. '" ,,' '-

..... I'.·~I'r;J •• _I>-•. "" _ ,.,." 
925 

Statement of Pattern Energy Group 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.868

DRAFT 

(insert pattern 10.90) 

Writte..o Comments for the Record: Hearing on Certain 

Exp-iring Tax Pro..y isio_ns 

House Ways and Means Subcommittee on Select 

Revenue Measures 

April 26, 2012 

Comments "ubmltted by: 

Jaime Steve 

Director of Government Relations 

Pattem Energy Group 

Pie r 1, Bayl 

San Francisco, CA 94111 

J aime,sleve@patternenergy.com 
926 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.869

f'alll.:m Energy urges Congress 10 c.'1tend Ihe renewable energy Production Tax 

Credit (I'TC) as quickly as possible in orJer 10 spur continued U.S. wind energy 

development and U.s. job creation. 

l'aHem Energy is a U.S.-based wind cnergy devcloper with more thun 520 

megawatts (M W) of wind projects in operation f\11d is working 10 bring more Ih:1I1 

one gigawau of wind energy into construction. 

Thc pending C)(pir.llion ofthc PTe pUlS all of the progress that the U.S. wind 

industry has made al ri~k. and Amcrican jobs and manufacturing facilities in 

jeop<lrdy. Indeed, the pending expiration of the PTC has .lirendy cauSt.,<l Pallem to 

stop ull new wind-project plllnning in the U.S. 

The federal I'TC has been a useful 1001 to kcep eonsumcrs elcctrieity rales low 

and encourag.e development ofpru\'cn dean energy proj( .. ets. The I'Te has 

allr.1clcd private eapit~lto the dt:ployment or wind t.:(:1111010gy in the U.S. In Ihe 

past live )cars while the PTe lIas bee1] con inuuu~ly available, about 35,640 MW 

(Uf, 76 percent of Intal U.S. wind powcr) havc been constructed. This growth has 

been eompkmented by technology advancements with .... ' ind turbines noll' 

genef'.1ting 30 percent more electricity per \llrbin.:: today than five years ago. all 

while driving down COSts. The I'Te has helped grow an American wind [lQ\~r 

neet thm now powcrs over 12 million homC$ and employs tcns of thousands of 

people ill good-paying jobs across our counll)'. 

On an indusll)'-widc sc~lc, Navigant COllsulting estimates th~lthc U.S. wind 

industl)' would lose 37.000 jobs and over $10 bil lion of private investment iflhe 

rTC is not extended. Wind energy project development entuils an 18-month 

proccss. The industry needs roliey certainty over the eoul'$": ofth31 time period in 

order \0 move projects torward. With the pending c);piration of the PTe, lin 

increasing number of jobs will be lost O\·.::r the course ofthc yc~ r. 

With l\ timely PTe c.'1lcnsion, thc wind indUStry would bt: on track \() contribute as 

much as 2() perccnt of Aillerica'~ electricity supply by 2030. and support a 

corresponJing 500.000 American jobs. a.~ the U.S. Department of Energy Ibund 10 

be achievable under the O .. "Orgc W. Bush Adminislrntion. The main hindrance \0 

this level ofgrtlll'th. howcver - in additiOlllO a need for si mplicil~' and financial 

liquidit}' - is inconsistent federal policy. 

In order to maintain U.S. economic :ictivily and job eretJIion when it ~ most 

needed, 1'allcm Energy urges Congress 10 swiftly extend Ihe renewahle ellcrgy 

Production Tax Credi\. 

# 

, 
927 

Statement of Peden Harris 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.870

I, Peden fl arris, respeClfully urge CongreSI 10 "Klend Ihe wind e nergy production tn credit (PTC) as 

quicklV:a1 pon lble. I ha'le see" the benefits 01 wind <,nrrIY for thr US eco"omv first-hand. I work fo' 

Vesta, Wind Syslems, which employs thous ands of people th,oughout Ihe US. These people make a 

IMng building the US·s energy securitv and indepe "dence, not to mention a deaner environment. The 

w'nd indu5try urgentlv needs the PTCnow 50 that it un compete wil h the subsid ies provided to the 

fmsil fuel industry. A delay in the extension would mean a complete d rop-off In inve"menl, .nd 

thre aten the indu,try (even il the PTC Wer e renewed"t a later date). Please act noW. 

Respectfully, 

Peden Hards 
928 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.871

Pellet Fuels Institute Statement 

on h plred and hpj,lng Tu PrOlllsions 

Heari ng of the Subcommittee on Sel""t f'!@venueMea.ures 

House Committee on Ways and Meam 

April 16, 2012 

The Pellet Fuels Institute lPFI) ~ppredate. the opportunity to share lis per~pe<live on eXtendlnE the 

expired Section ISle) rf'sidenllal energy efficiency t'/lX crl!'di!. PFlls a North American trade 

a~mdation promoting enerEY independence throUEh Ihe eflicient u~e of dean, renewable, densified 

biomass luel. Its membe<> are denslfled wood and other biomass pellet fuel producen, distributors 

and equlpmenl manufacturers Ihat ~Iew bloma!.S thermal energy~. a renewable, rO!Sponsible, clHn 

and energy·elfkient pathway to meeting America's energy needs. 

PFI wongly supports. restoration and eotension ofthe Set. 2S(c) credit for ene'gv efficient 

property. Induded wilhln this ~tion 0/ the Internal ~evenue Code i. a provision that allows 

consumers tG claim illa ~ credit 10' purchasing a biomass (pellet) burning stove . The exlnlng 

o:.ap on this credit is 10% lup to $300), down ItOm 30% (up to 51,500) during the 2009 and 2DID 

ta~ YNr •. 

~lIet stoves proVide an efficient, cost effective, environmentally sound means b~ which to heat 

;nd;vidualliving 'paces and whole homes. Super dean, highly effkient combustion technology 

deplOVed by pellet5tove manufacturers enSu re. maximum heat delivery Into the home per 

j)OIJnd 01 pellet fuel consumed. Biom~ss combustion is iI proven technology, with over 1.5 

million pellet·burning appliances currently in operation in homes ~nd small busine"e. aerol' 

the U.5. Mono( the biomass burning units that quality for th~ 25(c) c.redlts are manufactured 

domestically, creating Jobs, while providing energy Rvlng. 10 ~verage Americans. 

In regions StJch as tljenortheast and north-centra l states t~at rely heavily on imported lossil 

energy lor home and business hfaUng, densified biomass fuel has the potential to greatly 

reduce consumption of heating oil and propane. The northeast, in pat1 lcul~r, is extremely 

vulne rable to heating oil price shocks and supply dis,uptions; in that ,egion, biomass can 

sustainablv offset as milch as 25 percent 01 oil used to heat homes and bUSInesses!. 

Despite that lact that federal government poliC'/ has consistently supported biomass lor the 

generation of electricity or more recently for the development 01 bioluel., biomass used for 

~ut Is the most efficient form 0( URge. According to the Energv Information Administration, 

biomass thermal con~e"ion efficienci~ con,;stentlv reach SO percent, wherus biomass used 

for electricity generation, for example, only achieve efficiencies 01 2S percent. In other words, 

bioma .. utilized in thermal application., such as pellet burning appliances, retains 80 percent 01 

its energy lIalue. 

The United States Department 01 Agriculture (USDA) estimales that there ~r~ 1 billion to"' of 

fOfe$t and agricultural resIdues t~3t can be prodund sustainably each year for energy. The 
929 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.872

primary feednock for manufacturing pelien,s sawmill residual~, such as sawdu.! and shavings 

Ihal are produced during lumber processing. PFI memb@rsprovideAmericansawmilisa 

valuable economk outlet for this material, supply and demand for which provides benefits up 

and down Ihe forest producls value chain. Pellet mills Iypically sourCl! their feedstocks wilhin a 

100 mill' radius of the plant, generating revenue as well as direct and indirect jobs in local 

communities. Ulillzlng biomass also provides needed markets for lorestlandowners working 10 

maintain the health and viability of tnerr timberlands. 

According to the U.S. forest Service, Ihis country has more fore ned acres today than In 1953 

despite an unprecedented houSing boom in the interteding decades, Oemand for forest 

producn-whether it is lUmber, tissue or pellets-is the engine that drives Ihe foresl growing 

cycle. Since 50 much of the foreslland in the U.S. is privalely held, Ihese andowners~malnly 

famllh!s with p~rcels 01300 acres or fewer-depend on an economk: return 10 maintilln Ihe 

heallh ilnd productiVitY of waler, air and timber resources. WilllOut markets for foren fober, 

tllese landowners will inevitably be forced to find alte/native sources of necessary revenue. 

such as selling Ihe ploperty for development, n!sulling in permanent deforestation. 

The relatively smilll market penetration 01 modem densified biomass lUl'l units, means these 

systems are currently expensive tom pared to existing fossil-fueled systems; Installed systems 

un cost Iwice as mucll as a 5imil~rly siled oil or gas systems_ Tllis tax incenlive wililleip to 

incr~ase the availabillw of dean-burning Illl!I"mal technology to llomeowner5' 01 v~rious 

income levels. 

Addition~lIy, marlY of pn's members will altest Ihat significant portions of tlTei!, sale~ are 10 

homeowners looking to replace "dirtier", less efficient Slick wood burning stoves. This r~sults 

no! only In Increased energy efficiency for Ille user, but a heal!hler environment for Ihe whole 

community. 

While all ~nd natural gn prices may rise and fall over the yeilrs. It is important for this nation's 

~ecurity, pro~perily and environmental fUlure that a ~ound, balanced mi. 01 viable domestic 

energy allernative5 ilre developed and maint<lined. Wind, solar, and biol\.Oels currently enjoy 

significant go'<'ernmentallncenlives. Pfl belieyes Ihal certain effident energy technologies 

~hould not be put at a disadvantage relative to otller tecllnologles. 

The Uniled States is the potential world leader in the production of biomass pellet appliances 

and the d ean burning fuel required for them. Within the neKt year, eKports of this renewable 

energy source will surpass domeslic biomass pellet consumption. It is importanllhal this 

country invest in and develop both dom..slic and foreign end-user ma rkets In order to creale 

the maximum benefits 10 this nation's jobs, economy, energy security and environmeflt. 
930 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.873

Crafted correctly, this incentive demonnrates the onGoinG suppon 01 th,s nation's government, 

sending an imponant messaGe and satisfying the twin objectives of supponiog innovation while 

attracting private capital that is critical to driving long term economic growth, 

As economies of scale are reached and market penetration increased, these incentives can be 

scaled down or eliminated. 

Conclusion 

The current fiscal environment in which this nallon Is operating necessita tes Ihat tax payer 

dollars be deployed in a manner that maximiles return on investment. PFI believes that 

investment in technologies,li~e thermal energy from biomass, that achieve optimal efficiency 

and job creation potenti~1 should be embraced, not only by extending the Sec. 2S(e) ta~ credit, 

but should be a focus of energy tax reform efforts moving forward. Incentives will help build a 

IT'ar~et for high efficiency systems that can reduce AlT'eritan dependence on foreign fossil 

energy, reduce greenhou$l! gas emissions, and creale jobs and local economic development 

from a reM'wable, sustainable domestltenergy resource. 

PFIlooIIs forward to working with the Committee as it begins In work on thIs critical issue. 

S~bmitt"" 8y: 

JPM ~' HedrICk 

£'''''"ti"" Oi''':'01 

ll~t 'ue], ,""ilute 

1901 NOf1~ Moore Street. SUite 6Q(l 

"'Iington, VA 22209 

(mall: ""d'IC~!!I ",l 'he t.o' 1 

pn: 10l·sn·611B 
931 

Statement of Perry Black 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.874

wMsandmeans sub[l1iss ons~ hjluse->90v 

From: Perry Black, MD,CM 

NeurosurgeQn 

Philadelphia, PA 191 18 

We are all keenly aware of the hazards of dependence on fossil fuels as OUf source of 

energy-limiled supply, rising cost, geopolitical uncertainty-f'lot to mention global 

climate change. As we look to our furure we must be laying the groundwor'K for 

alternative energy sources like wind, solar, geothermal. Here is an opportunity to 

advance wind as a fledgling American Industry that can gel a boost from tax incentives 

to promote its further development I urge thai the Commrttee provide such incentives. 
932 

Statement of Perry Callas 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.875

Perry Callas, MAT. 

141 8 Comm~"ci l, PI 

Astoria, OR 97103 

April 23, 2012 

Representative Dave Camp 

Charrman 

House Comm ine<' on Ways and Means 

U.s, HOllS., of Representalives 

Washington, D.C, 

Dear Chairman Camp, 

I am 3 CQlIege instructor in Astoria, Oregon. Here at tile Or~gon coast tllere is a 

surplus of wind energy that Is nor being used to generate electricity, and that,ln my 

opinion is a shame. If people in my community had continuing access to investment 

dollars for cnnstmction and maintenanCf! of wind generation equipment, Astoria 

could become a gtmerator of relatively clean energy whil~ boosting its moribund 

economy, 

The wind energy Production Tax Credit (PTC) can be of great benerit to Astoria alld 

many communities like it; therefore, please extend the PTe as soon as you can. 

America has lain quiet whil e China has raced ahead in d ean energy infrastructure, 

and that is a needless waste of time and energy. 

Thank you for your efforts to make America competitive again. 

Sincerely your~, 

Perl'Y Callas 
933 

Statement of Peter Stanley Company, LLC 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.876

PelH Slanlt'y Cllrnp:m,'. LLC 

211666'" SI 

Ftrll"'ille. M 1 49408 

269-S .. U -JOJ 9 

pelt n I@yahoo .. com 

;$12 4/ 12 

I, Ptler Slanle)". Ov. ner of Pfler SHmley Company. LLC in Fenn l'ille. Michigall.1 

rcspcclfully urg.: ()Ogress to (;';o;I~'t1d Ihe wind enclt)' production lax credil (PTC) as 

quickly as possi,ble .. 

.. [ UIIl a snHll1 busilll:ss owner thai bc-lievcs ill g .... l\\'Lh nfbusincss .. NUl just I() gmw for the 

sakc ofgrowLh tlul for ~ purflOSC_ One of lhc purposes is co del'clop ~nd cI'cnlually usc 

31lem:11ive SOUn!CS offuel sllch as wind lIIrbin~ s. 

TIlis is a rural arc. Even hl'rc tllne ure a couple of wind lIIrtoinl'S u. cd .. 

NOl only is il being use'" for pOwer bUL Ihe design, m~nllr.1clurc, en ... repair uf ille wind 

lurbines Ihcm5cll'\!S creales jobs. Over Ihe long Imll il gcncrale.s revenue for our 

c<)lllmuniIY scllIX)ls ~Ild hospil:lls Olcr Ihe lilhime of the projCCl. Increasing the amount 

of power th.al our counll)' gets from clean, homeYOI' n. al1hrd:lblc resources is an 

el\;celienllhing for us to do - and this tax credit provides un incenli,'e for the wind 

imluwy 10 corninllc lu do jus! thaI. 

-I urge !he commiltee to wke up un c)(!ension oflhe wind encrgy pl"lldllc!i,m lal\; cl"I.'dii 

right aw~y. 
934 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.877

l\Iay 1.1011 

The I IQnor..blc JJa, ~ Camp 

Chainnan 

C0111m;U~ on Ways and Means 

U.S. HouS<:. ufR"prescn!3!ivc>< 

Washiol!lon. 1).C.1U5 15 

1~! lonorable I'al " illeri 

ChairmDl1 

The Honorable ~bndcr M. L~vin 

R:mk;lI!! M~mbcr 

Comm;U,,,, on Wa% ~nd (o,'kJn" 

U.S. ll(')uSi: o fR"pre!lcnlal;"es 

Wa,hin!!.lon, D.C 105 15 

Th~ 1' QnQr'~ble R;thllrd e, N~a! 

H.anking Mcmbo!r 

Subcommill"" on S"h."CI H.even"" Measures 

Commiu tt oil Way .. and Means 

SlIbcommil1ee on Seleci H.evenue Measures 

C0111m;1lel: Oil Ways alld Medns 

U.S. I lOlls,:, ofReprcsenlut;VU U.S. Ilulll.e of {('prc~nI31;,c5 

W9Shin~lo". D,C. 205 IS WashillSlon. D.C.1US tS 

o..·ar Ch3innl'n Tioo. and Camp and Rankins Mcmbc...." N~ I and Levin: 

Plug l'uI"er Inc, rcoogn;£c~ the C(')mm;llce's desire 10 review Icmpomry tax provis;on~ in Ihe 

U.S. Tax Cod~ 10 en.ur~ continued efficacy. Our company. as 3 leading U.S, fuel cdl 

mallufilCllIr .... and supplier localed ill upState NIll" Yorl would I;~e 10 comment aboul Sl'wflIl 

provisions Ihal have b<:~n useful in ensurill", Am~ricnn m3I1ufnch .... ·. , nlld ",'cn C)(P<)rt. of fuel cell 

SySlemS. 

/u you may k,lO"'. fuel ~clls 3nd hydr<)gcn I:t\Cr~y I~hoolllgi~s d~li~cr dean. r<:liable flU,,"l'" III 

leading ~dg" CQI'jXlr:lI('. \l\-"lIdclnk and public .<oCelor CU~\OnlCr:\. and pre h~lpillg to tral1~form our 

cm: ~y. economic. and environmenlal fUlure. T~ US currenlly leads Ihe \\odd in Ihe 

manufnclure of fuel Celllcchllolugy. I'lug Power has a lso begun exflU"'''!: uur fuel cell products 

:Ibroad. Conlinuing 10 lind ~arly domeslic marKets for fuel cells willl~\slIre Ihal manuf~clurers 

do 1101 mov~ O""l'~'II, 10 be locnlw doser lu Ih~ir mllr~~IS. generally in A5ia and SOulh Arneri"". 

J..oc3ted ill 1.~l halU, New Vorl;. Plug POI«r has Ileel! developin!: and IIlanuf.1cturing fuel cells 

since 1??7 and we tN... 'ame publicl y lr:'Kled ;11 1999. Though il is difficult II) find comrncreiRI 

",at1<~"1:1 for disruptive technolugies. I'lug Pow'cr hal; slan~d \() find cOl\Il\1crei~ 1 ~\lCCe~S wilh Ihe 

fud cell industrial veh.cle (fork lruck) man.:~1. Wilh Our malerial handlillg parllK'l'S. Plug I'ower 

manulactu,,"'!; alld sen:ic~'1; furl cell ~}SIC Ill S for lIS<: in fork {rtJl:ks al warehouse and diwibution 

opc"~lion llhrouj,'hout Ihc Un iled Slall'S. Companies ~U\:h a~ Walm~n. SyS\;o 1'000s. Coca Cula. 

llMW. BridgC':llolK' Ti",s, Whole Foods. Procl0r nod Gamble. Ceml'lll Groc"l'S and se"~1'II1 Others 

e6/1~ ~u.tIQUAATERS __ 

NYI2\10 

""",,": S1813B,ro6\l 

F., 5161Q:t~ 

........ plullP""" ... £Om 
935 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.878

h:lVe pI'r(:tw;ed fuel cells '0 replace inefficien, and environmt'nmlly 'Ollie illCurn~m 

Ie<:hoologics. 

The Am~rica" r ... d ctl) industry is ,,1.'11 ahl~dd or,he rest of,h~ world in addl"i..'Ssing Ihis rnarl:et. 

und Plug Power has n."1.·"nlly signed an inlcm~til)f131 Bgre~mcnl for c.xl'''rt of ()1.J' fuel c<.'lls for 

m~t~rial hnndlina: applicillit>ns. We M,·" grown Our opemlions sub~tanli"ll y ,WI"" Ihe past ;c""1":I1 

y~ lll "lid have suppliers and C'lS'omers ill ove, .\0 stales, Qur cuslome,"" ,ake oovanUlgc of Ihe 

variuus talC pruvisi<'lIS for fu<.'l cell~ as tJwy gel comfortable wilh Ihis IICW technology, Ihe 

adoption of which bring.. inherent public bendit,; ~\IC h as mluud c&rgy com and a less 

polluting, footprint. as lI'ell as inherent corpornlc bcn.:f'IS s...::h as quic~ refueling. 00 degradalion 

in powe, oUlpul oml produc,ivily imp,owmcnti<. 

Wilhin lhe conte.>:t oflm- review lhe Comm;llee i$ umkna~ing, ,h~ 1003 Grant In Lieu ofTases 

proVIsion is Ihe on(;. that has had Ihi: >n0>1 impacl On !'11I!; l'O"c. in n::e':'nl }· .. ·nrs 

1603 Gnmt-In-Lie u " f Iun 

This program, which nll<'lws III<: el~~lion ofa grant inslead oflhe til)( cwdil under Seclion 48, has 

been vcry effec,ive for thl' fuel cdl industry (a> well :os o lher ctean cncrJ;,v industries). Alm"'" 

:111 of Ih,' sales for malcrial h~ndling. fuel cells have laken ~d\ anla);e of II", progJllm. Lookillll 

forw8rt!, the loss o f 1603 cannol be underestimated. Due I() Ihe Mtun: or,llc diSltppeamnce Qfa 

viable I~x equity marKel. I'lug I'n,,'cr has s" ... crnl projec\.'; lilal cannO! mu,'c forward wilhoul Ihe 

~id "fth~ 160] );rnnt. including: Safeway in Tr.1CY. CA. a facility w\lh 1000 jllhs. A""icold in 

multiple siaies wilh 300 cmployc't.'S. Bosch in Dorchl"5ter Coumy, SC' ";Ih SO cmployees, Flirt! in 

A,'oo I..IlK<"!;, Ol! "jth 75 empilry'c(s and Wnkefem base..! jn Keesbey, NJ "jth 600 ... I11pI0)'«5. 

1l1c equily market h,.. not OOum:ed """k from Ih~ n::cl'SIlion, panicubrly nO! for smaller projects. 

which fud cells for malerial h~l1d il1g lend 10 n::presem. We foresee approxim81ely n lhird (,'wer 

U.S. :;:lIt'S going lorw\lrd bi:<"!luse th~ option '0 ka>e Ille ~ys,e",s "ill bc " fftlle ,ab!~ lI"ill\QUtlhll 

equity. Thi& makes ltl; gl<"ld t.l have signed an illlcmalionul ag«'ClIleOl recenlly. bll' we mllSI ~Il 

''':COI!II;~C (hal ilocl cells. if 11",«: is 1101 a markCI !ten' jn Ihe Unill'd Stato;-s, may go the way or 

many ol!ter t~hnolCt!!i~~: offshore, IQ beclO$t.'I" 10 m3r1<l'lS. PIUI; Power SIlI!b~Sl~: 

E~I~nd lhe 1603 progr'Jrn Illrou!:h 1013 ,;0 that We can bi: sure Ihal ~apil31 rn~ri:.cts are 

recovered ond there are in"c~turs ror fud cell proj~cls. These pmj~cB tend to he smuiler 

Ihan with other lechllologic$ eligible for the pr<1yrun :md !he",lorc will rebound more 

slo"ly tha!> capila! now for large scale projects. 

1/68_1 "u.tlQIJARnRS __ 

L-.NYI:OIIQ 

_ : SIB 13a O~ 

F ... 51e 7e2.~ 

WWW.P\"IIP""'Of£Om 
936 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.879

Th~ (jrnnl-[n-!.ieu is 'lnly n~ai[nb[e f'lr rTe a nd ITC eligihl<' cre<:l it ~ and the tontinu3ti'ln Qfth~ 

underlyin,!!: Section 48 Fuel Cell nve lmc"l Ta~ Credil titNugh its un~t of In''lIm), 2016 ~ 

crilicallQ rlllg r ower and Ill<' fud cell industry al a,"!\~. This credil '''IS put in place in 2(1)5 i" 

order!O spur U.S. m"rkel inlroductio n of Amcrican ma,,," fllcl cell syslems. The credit of30'1_ 

up 10 $15(1) per half a tilMvali currently e.tlend$ through 201b and ha~ been signifi,'anlly 

underulilizcd unlil very r'::(1"nlly. In M'me sens<:. Ihis was n fl,"'-: Iion of 1m:. cnllwsia ~m for fuel 

cdl., both in the indust,), ~mI amon!! policy make", that was sli ghtly ahead of tn", 1lI3r~et 

vj~bilily. The credil. h<l"ever, has now begun 10 be USed:1 bil nlort" robustly. particulml} in lhe 

imlu.trii<[ ''ehid". Inlionary and bad: up (lOw~r mmi:eI5, 

I'lug ['mI N was l1 ~olved <II the origi<"'1 Seclion 48 credil i" 2005 llhen il lias wrincn to be 

hroadly <lpplic"blc to a rungc o f fuel cell applicalions. As We guiLt oomLLlcreial e~perienc~. W,," 

have discove",d [lQlemial imprOwll1~rll~ lq Oplimi 7.e lhe inl~m rehind Ihis Icgi,lnlio n, The 

cum'nl SITUcWTC ofthi~ credil doe, nOl tlertnly "I Ihe irn!uslr,nl vehicle fuel ~dl m~rk~1. As fuel 

cell ~y~tems bc,"()mc incteasin);l)" "'\If" iOl"~I"" II ilhin fori< truc!<~. it becom,-s more dillicult 

for COSIOmc", It) dislinguish fuel ~-ell rropt:TI)" fronl fork lruct propeny. As ~ result. Ihis 

cQOf,,~ion hi" <uII1,"<i. nd nOi Sf'!(fl\.'"'!. mar~~1 ' mffiduc1iQO in Ihj ~ ,;eC10 r. fh~!.<' S(lns uf 

ambij!uilies ha ve influcTlC<.'<.l polen1ial c uslomers' ;nleres1 in rnovin", fcmvanj ... ilh fuel ce ll 

le<;hnn!ngy. 1'1,, ~ I'ower Iherdme; 

SlronSly supports conlinU3tiun of the Fuel Cell Tax C",d,! Ihrough its e"",,nl su"'l1'1 in 

20 111. 

Advocates for beLl~r dclim:alion of how Ille Seclion 48 crt"lJil is cakulm'd for malerial 

h'Uldling 3fl1lliC"J!ion;; , Il.R. IllS" and S.141 7. the Indus!rinl Fuel Ccll Vehicle ACI 

modifies the c~islin!l ~"lJil lu all!:>w Ihcm 10 more sm(>{llhly Qppl y tll tlw nml;'-e markel. 

whilc relaining a similarcrciliting level. 

This credi1 has been in SWlule since 2005 'Ind 5u{fen:d an aulomatic ... "lJUCU<ln. wrillclt inw Ih<: 

ori ginal slntule, bringing 1he core erOOil ft(lm S3000 10 $1500, This reduclion. wriue" in 2005. 

WM premise<! on Ihe idea that file! cell '~hicles IIould be commerciall y nvallnhlc. 

Unfortunalely. like ulher fud edl s)'Stems, fuel cdl ,'chicles are rJQI being witlcl y purch..,.,d and 

commerci:,1 inlrodutliOl1 is "'.n planned un1;1 2014-2015. 1lowcvcr. there is slarting It) be St'nlC 

commercial use ofmal"rial h~nd)ing fuel ('dis. I'llIg l'Ollc't Ihc'n.'fore S,,&"'~ S; 

M8...a-y t<EIoJ)QUAA:TE~$ __ 

............ tlYI211C 

F'IIono. 511.73I.o2611 

r,,·Stt.7!1.l.!106Ci 

www-l'lulII"'''or.com 
937 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.880

Lodir)' the tl'i..'tIil 10 aUow in.Juslrial 1'~hicle~!O claim the m:.JiL ;u SCI fonb in Ii.R. 1659 

undS.1417. 

F.M~nd llu' tredi{ umil2016 or un!illa~ reform h~s ~culT"d and I'" h3v~ dev~IOJli'd 

mOre sin)pliITcd ~nd h:<:hllolol;)' ~l:'nusli~ mcan, b} which!O cnsure c"OIllim",'tI American 

leadership in fuel ~ell w<:hllology_ 

Secti,," .\[IC H)'dr!!l:cn Infrastructure e...,.Jit 

Whilt' the Allemalive Full! Infraslructure Cre.Jit dOt'S ,!:"pin: in lhe time fr:ml< b<'ing ~onsi.Jen:d 

by Ihis Committee. the lIydrogell Infraslructure credit is do..,; not e~pil'\" until Ikcembcr 3 1, 

201 4. This cn.>dil applies to on·rood altcmutive ru.::ling infrnSlrtlCture and is currenll), e~ppcd Dt 

$30,()OO per S)'$lem. ,..,.garcllcs:; or "hel ..... r it's un cth:lIlQl refuding. n~ urol gu, refueling. or 

hydrogen refueling ;;yslcm. This level of funding is robust for :KImt systems nnd I'I\'gligihlc for 

mhe,.". particularly hydrogcn, relueling for which cOn COSt upwards ofSI.tlO(),OOU and e,cn more 

wilh onsitc rcfonnillg. This cost is c'<pc<.:te<l 10 COlne down significantly. but tlO1 withuut 

sigT1ifi~~dJll ~olum" .... hich ",ould be: 3!;.!1 isll-d by a lt~fullas cT'l'd il. Pill!.' Pu"'e. $uggl:1ts: 

Incren.w lhe cup for hrdmgcn ~ysICm$ signilicanlly <lr d imlnMc lhe c~p for ull refueling 

pmpen) so thBtlhe rdati~e ""ncr., is ,h~ .... m~ fOl aJllyl"'S llfinfrdSiructure. This "ill 

,,"cllurage ml "all of 1~ above" IIWfOlIch III allem~liw fuel vehicles and ;nfr:lStrtK1Ure 

and allow 1~~Il'S to decide on Iheir approach h:J!!<'tI un Iheir unique Ili.'t'ds and T't'$()Url:I:1. 

tnclwk in~tnllnti(lns ibr malerial handling f""l .-ell ~uipm~nt, , ,,ch :u fork Trucks ill 

w3...,hou~.< s;,,~~ tl""", SYSTcms 3re I"""'urwrs to a large seal" refllding infrastrw;Ture 

and can hdp;n early stage build 0"1 orsueh infmslruclUn:S. 

EXlend the credit through 1016 It) liT1~ up with the f~1 cc1l1:l~ cr..'dil :tnd to beller ""ll..:t 

tllC comlllen:j~1 realilic> of the fuel cell vehicle m~ti<et. which iSIl'1 CXPC""Ct! I" ~ .. ~n 

!i.C:lling, comntudall>' until2'0IJ.2015. and even Ihen at fairly SlIIall nUt,bcl$. 

Extend lhe cT'l'd;t 10 apply to malcrialll3ndlinj!. ofT-rood "chicle applicaliulls. 

We would nl;~ 10 emphasi~.c Ihnt when ~ focI cdl and hydrogen pmj<:el fur indl',trial vehicle, is 

uTldert~k;ng il i. <100", as a I,,"ckage Ihat ;'IClude. :t suite of !ork trw;k vchiele.<. a>; wel l o. the 

infr35!ntClure to fuel 1 .... -rn. CU~ {1 ",e ~ ""<luire bolh pan~ of lhe "",u;l1ion 10 Ix available al a 

nominal illCrel11~nllll ti"t. ,,-hich i~ r,-duced by the ovnll~hmty of the infl'll51fUi:lure er..<dil and the 

IIUOQUAIiTUIS _ ~ SNIoo< 110.-

NY12110 

_ :sI8.rSB,0:<5 

F..., 518.11:!.9060 

OIWW.plugp<I'IOIft.~"'" 
938 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.881

G .... m-in-Lieu. A~ tO~l$ for ne", t«hJ){!l ogie~ are red~ed. trn.se credits will J){! lonl.(l:r tie 

')cCC=socu), , 

In cottcl".sioll. we agaiu wam !O Ilwlk yo" r"r laking the initiatiw to thoroughly Fevi .. " la" 

e"tendcr.; 3~ we all b<'J;in tQ think about pn'~cr.'ing Amcric.an intcmotional lead<:rship in the 

come", oru more simplified lax s),skm in th~ nCar f",,,,..,. 

Sinterdy. 

Andrew M"",h 

P!"Cllidcnt :md CEO 

Mu.tIQU"'RTE FIS 

$68_ySNloorRo"" NYI211D 

""",,", Sls,rn.D:zeIl F.. ~111i2.~ 

........ pI"9P""'or"'<>nI 
939 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.882

ConHlCI Infonn al;ol1: 

N"llle, Andrew Mars h . I'residem and CEO vi a $ha r;J. lyn S;1Vin 

Org,miullion iifr.ppliC: abl(o): I'lu~ I'ow(o. , In.::. 

ddrc~s: 968 A lb:.u1Y Sh"J<cr Ruad l.:uIHlIll. NY 12 t 10 

Phune N umber: 5 18-738-0136 

COlllact & m"il Address: §.. J!O!(y!, j,!@.Q! !!,g ww!t!- ~ 

Tille o f I karing: Select Re en"~ R"Y;ew of CcrHlin Expiring -I " I< Provision,. 

HEADQUARTI!RS 

969 Albany snak., Raad 

LA,ham. tN 12110 

P ..."..· M B. t 3B.02!9 

F".~ . 518 78~ ~ 

www.p.UgpoWM.Com 
940 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.883

~ 

PPG Industries 

Ilringlng inllCl'v.ltion to lhe SUJface.-

M .. S, 1!l1Z 

Thom..- P. K." \,,,-,,. -,~,,,, 

PI"r. ....... _ ...... 

O(IC"""''''' _ ..... ', 'ooO ... " 

1111I.,\hU'S 

.... ,!'-..-

PPG IndulUle. url~' C""I'''' 10 .... n. ,~ . wind p,odu,,'" ... m,dl' (PTe) a. >oon a . po .. lbl. 

0.. bo~ 1 01 the PI'(; ...... "10. ,..,., .. .,. ."' ....... In ~."..,.,. .... """ttI Co,aI;,., .... ~tn ca._., I ,.,"""If .... "'C' 

C""i/O<' II> "'"",dIo''', ....... ,..., ~ ...... t>I ..... ' 1"1 P,odutt"'" 1 .. ",d<I (nCI boto<~ , ... U.S . ....... mo,'" >1> ...... , .~"'rb"UV 

'" roll .... ' ••• •• p~.PK 

WI"" M"'" ,_. SOOI)" ....... .,..,.,,1>1 ...... ",l' .. r_ ......... .~. "'~PI'G .... od ..... ftb<, ,1.0" ," _. A~ 

"!'G', "'000<1 .......... if, """" ... ".,~ it!> ,"" ~~OWIn. "'iI"_.' to......, 1M"' ..... , .. , __ "'" _"'..., 

...,p.,.. ... . ,.,.1;'" .. " port."" 01 <"" ,,.., ,~ .... "" or. __ by _ ......... "'Offtt _pm", In II>< U,5. H"~"'-'~, 

n ... ·'-.'" .. ",~." ~"" ""'" _JY "., .. 'I,. _ of ""'''010<1 ..... . _.l1li;. r~ .... , ....... r>f'Y ell .... , .. _ 101 OU< "'_<I. tOo ... oi<>prne", ,.,.. _ .,,>.""~ .n. ~p 0'" .........,..." p .. tully .."........... 5101<. 1lIDl. PPG .... lOW>«! "" ,hi. 

"""'1"'« "'.r1< ....... ""'" ... Io ........... _.1tij .It .. , .. _~., .... _ .. _don",o .... 'o . 

.... '! ' .. iII ...... !!.. Iy!!!'~ ""'Llrt,'!!!'"" ~~mt~"!-....... '..!.~_ ''''_ m .. ' IOl ~!""' ~-'C 

w • ..ut f_. "'_J!_" \l>e1'TC~ oI!' " '!!'t@l-""~\!!!!!!!!:!I """"'~ ... 91 ... '!."~~h "'~ 

Il!!! .... _ -.. COl!! ...... 'he ',.1>0<' ~ ",III ... mooh ............ tho wind ,..,_ .. u. 11_. 'M 60100 01 , ..... ""~IM· ....... I> 

f!I.!!!!.1o! '''" 'M, 

II c .... ra. -. 001 ,.."..,. .... PTC D.' ... . "" 01 t.,. .. <01111 Q.'''''', W ••• .,;,_ "'il """ _ti< ....... f.,,,, ........ _, ."" . ... , ....... or"'" I", t""" .... 1M ... <Ift will .. , ...... d, .. tl<.IIy, 11>< ''''''''' ~ I", PP<I ~. d<o<> '" robe! " ..... Ie< for .. in<! 

to,d .. .,1or t. , .. PTr . ...... ,.,.,. SIo<e ~ ~ _ or-...' '" ......,.f"""", ., .. "", \IoIII>ovI 0.<1«<, "' ..... nerd t ....... <eO<J<"" 

Job> "' tho 1«." h' ll oj ron. ,<bou, 1800 ..... m~ <1< .. "" .. FOol" "_ .... Us ........ _ 1'1' d""""',,..,eo, _"'e' . 

..... , ,...,.. of ~ .......... ,trne "" olevo..,.,.. •• , ,.,.I . ""'.'i"'l "'" lor« .. ill 'Q"""" , ............. , II>< ,a' .. m. U.S ...... """"ry. ,I'(; I> "",. OM ~ ... """". A "od. 1'1' No.""'" w,,,,II.,. .-. ..... US, "'""" .. ""' .. .,;II '-' • "'''.' 

~_o.olm" ... 37.000 fOb .... ~IO , I WIIor> in o-r1m. _ ... " In ,"'IIr,' ..... . 10<>0, 

00 .., i"""",y-...... .\CaIt. , ... PTC " " ",0"'" I!"~ t. 1>0 .. 011 .. ,..., ,000 ,. lieU <IKI'~'''' '"'*' lOW . ... _ ... _oIo<tmtn' 

of,."...., , ........ bIe ........... ~ ... jKU, l.,..op,..d \011," ,,,. PTe, 'Oe ................ "'.""'" .... ,oo'.IboJ,'" 1m".... ..... '0 U.s, 

"' ____ , :>rnu 1005.'" """. _'''' "". owr ..... """. '~ n $60 trW""" ot 1-.,,,,,, ... r_ ...... _, .. iii .... 

... = 03 "'W "",""IKIlI<'< 10< '''' '""'" _'n ;...,""'. PI'<; h .. , ...... , .. ,,,., """'HOd .... 01 ... ..,; .. a....,1ty '" __ '''' .. I"" ""'U,"" II'_'~. WI~~. ~ ,.,....-,n,or! f\rm ., ~' " """· ... m ',,""od' ............ ~ ... " __ "k", "'0 ,; .. f .. Amortto" ""n.,,, , nO b .. "...,..., ... ""'_ 35"i."' .. ..... US ODW<' .0.,.0, ... \he .. " I<>u, ... " . P." """-' ""'~_ 

tt,. pre ....... ~ t....,..- _"'Ie'" !do.Ito, """ .... >!rouO! ,.,.., l '"' ..--.. "' .......... _ rt ""t, t..,oIly S"'"" II>< ",,,,,,,,,'im< ,. """ ,M .... 0Ii ... . ",."".. ~",. __ to, ...... .... ,rv " ''''''"''_' 

0ve<1OoIJ1'II'" •• _ ot .... flC IIa> . o. dl ,,,,,, ... 'n ................ now ,I>f ... ,on. ",. ...... of II,. ... , . ........ ,"'. lief",. ,M 

U.s, ,w,d ~'''' olio, ........,. ' .......... """. COOIj!'''' ""'" ... ~ .. , ........ <I>i'I ..... "'I ....... " , ... In 0«10',. <01>';"" to 1o, .. , 

, .. rr_h of , . ",dUilry ,1>0, ~ <on'l~.",.d '0 """"""';. _ "'. reir>Y\l"'''' , .. "_Un "',."'''''''' .. '"<to<, .... 

dl .. """ OU' . 'e"ri<I,. wo-pIy. _ "'I~ 1'0" , .... qUIrt" ........... , .. PTt, W • • • ",odIIe """, """",,,lor _ric", """\Or'''''' oMfll lui ..... " .......... , , .. rt/"'.I_ .......... "" , .. 1m ......... ",,",od vIII/I ,ho ~'c. ....... do "",-ho~' '' . '~<II""" mo. 

-i2:7:>.L.- '_P,IIo., 

;." P,etidelll. flboo<- 1uI 
941 

Statement of Proctor and Gamble 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.884

TAX l'OLlO ' CONSIIlt:RATIONS 

April 201:'. 

I. I NTKOIlUCTI0 i'l Ao'~1) SUMMAR Y 

Th~ Uniled Stales la~es 111<" worldwide intomeofU.S.·b;tsed c(>"'p,mies. bill (he U.S. la~ on Ihe 

'Ic i\'~ mode Of business il\Com~ o f ltN.jr foreign subs.jdiaric_knowllllS ~(>llIrolied foreign 

l"Orpornliolls. or CFCs-ge'nernlly is tk:f~m.'<l until thaI income i~ diwibuled 10 Ihe U.S. Jlil,""nl 

cumpanyas a dividend. The Subpart I' rul" are an .. ~ccplioll W !his defeml rellim~ and 

generally arc inlend~d 10 la~ cUTTelitly im'ome lh~t is pilssi"" ill mllure. nnher than active tmde or 

bu~ill<.'SS earnings_ Prior 1<> 2006. Subpart I' incnme ;"cluded active I:>osincss eam;uj;S IMI were 

.... :dcpluye<.l frolll 3 sul>sidiary Ihat earned Ihe i"wIne in Qlle wunu)" 10 a subsidiary in aoolll(!r 

country 10 cXpilfld in Ihe olher wunlry or make an aC'luisilion. ~V<.'n Ihough Ih.",., ~3rni"!\S would 

nol olh~rwiS<." be consiM"-'tl "I"""i,'c" in "'Hur~. 

In 2006. the COllgress enncI~ :\Celion 954Ic)(6) (lhe "I.ook-Through Rule""). The l.ook-Thmugh 

Rule nllow~ U.S.-bo.~ eompilnies 10 redeploy th~ir IICti"e f"reign eaming.~ OUl5idc til{" United 

S!~t""!t5 their bw;ines~ oeed,; may dic[;Ite ",thou! ubjet ing the ~amings 10 cUrn'ni U.S. !a~~tion 

un!lcr SubpMt F.' This role only aPl'Ii~s, howe,'er, to the e:<tfntlhaL ~uch pa}l1I~m, liN' 

allribm~bl .. or prtlpt'rly allocable 10 aCl ive, non-Subp:m·J' incQm~ oflhe relat~d eFC. 

Regulatory authority is pro,'ided. and has be~n ex~ised by tho: IRS. to prescribe suth 

"-'g,oJatioIl5 as n1<1y be lIe'<:e'Ssary 10 prevenl the abu~ oflOO pUrposl.'S of the l,'Ok-Through Rule? 

The Look-Through Rule is l~mP'>rary and has tJ.:en induded ill tl\(, 1'l5t tWO busines,; tax 

~c ~(cnders" package's. The rrovision e~pi"-'S under present law ror 13~blc yl~J'S ocginning after 

Ibe .. nd "f20! I.l 

P.MD"-, ~ldJtn"':rI1 Will Ii: 1'.m<J) LLP. 1"110 ,i.,., "~P"'»<oJ in ,~u. POI>" Or< I"" .",h><', V"" n~ do "'" "'-"" .... ril)· ... 0'-'<01.11<, ''''' ' ~rMd.l<"''''"1".i" <lk,,, •. 

, 1 he L",,~ rhrouj;IJ 11"1. _"'mrlu.hoJ ,hi;, ,,",,011 oy "" ...... Ity I",,"'d~,"', di,iJtnd:.. i"'m"". ",", .. Iln.i 

",). 1, ... II:«i .. " ",,,,,,ruN II.)' , ... CI'L r",,". ","'!<'II nr "" "'" .. *,,~", II.S. I"~ ' .. ~< "rwl' no,i. ",.k, S"~I. 

, T hi, •• , ... ..;1) "", been •. ,,,,,,j><ol 'hoo fanh",uP< , .... i»<Io,""c ,,(. ",~;c.,. "j,h '~J;llIOli" ... ~ ("1.,,, •• ~ ... ~,~"" • 

.'001-'1 . ..,c_ 1 

, /I., origin:lll) <""",,'<1. U>< Lwk-"Ilt.'-"'l:h R"I< "., ... , 10 .,pi", a. Ill< ",wl of 21>03. In 0.:",1>« ~OO&. 'h< C",,~ ,~ ,~ 

' '''on<ltil .he" """'lsio" hy •• add;,I"",1 ftoll". ~ tilt ond ~f 200\1 •• , ~ ~fllM! <,'nwlcn r<>'1::t~ In III< 

E""'!;rn<) E"ultOlni<: Sl.l>ili .. ,i~" At. ~r~00 . Tk 1""'''''''' ,..,,, .,pin:cl., 'Ro<-nd uf!OO\IIruI .. 'II."'"...."" in 

Dot.'nb<. ... 20 10 ., "'" of ''''' ,,<r.d< .. p><:~~~. in ~ .. f a.< Rdi<:f. lIn""'J>k>Y",. nt h,..,m",c R<.u,l\o .. i,-",ibn. on.! 

Jult C"""ion ... ,~ ~fZnlO. witltM.--,i,. ~11"«' '0 Ilk: b<o~i.nni"~ M201 ~"" '"XI"<wlirw ,Iu,,(o£h ~Oll. Til< Obo."", 

odmiru .... oo,,·' PV 2011 bod~ .. ~ would •. "cnd III< l.ooI._lI"'>ugh [(uk thn!ugI, 20U, 
942 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.885

Thi~ p~p"r ~~u,"ine~ ,he U1 ~ pOlicy r::niolluk for the oo~-Throug.h Rul e. and describes ,he rule's 

impoct t'" 5O'l1e com"1l'n business structures al,d dedsiulls QfU,S.-baso..'d '11I1Ililla,;unal 

cnlerpri,..". Th~ paper also explures lh~ crf~"'1 uflile \..Q<:I~ _l'hrou gh Rule Ull Ihe comp"'i'i~et""SS 

oru.S .. b;,,,,,d mullin3tional, with their foreign rivals. as- "dl as the broader (bul ",Iat.,()) 

qIJestion ofth" rule'S imp.1ct on the eomp"titi"cnest "fthe U.S. ~",ono",y in the "'<>rld. As 

c~plnjncd in delail below. the L.ook·Through R"le h~;; sigoHicant po,cnti,,1 to promote 

competitiveness by removing barrier.; 10 tll~ eftkicnl und c~lbk ~ln.lI:turillg ofbll~ n~~s 

Opcr:ltio ~ and th;:. deployment uf3tti,·c fill"1lign earning.> "itllin U.s.--b.1'Icd multinalional 

groups. The Look-l'hrou!;h Rule;s an imponan, pro--compo.'tj iVl1tCS~ mC'asun: und~r the presentlaw worldwide S~Slem with deFerral. and the provision " 'ould take 011 cwn grea ter i'''porta''ce as 

" ~cy lruCll1r:!I fcalure Qrlhc itlrcmari(mallD~ n,ll'$ ift/re Unjr~d SIares wen"Q ,Kil)pt a 

terriHlrial <.IiviMnd exemption system. 

Thi~ ll'lP"rlll.o;o C(\nsid~~ I"dlnical ;s~ues reL1,;ng to preventing rhe $bU>e orthe Look-Through 

Rule to achieve unintend.,d ~nd iMppropriatc t nK benefils. As di scu~scd below, potenti~1 abu;;e!I 

ofth" provision apjK'llr to ~ n,irly narrow. In additiun, Ihe I.ook-Throug)1 Rul e providC'5 

"rea:;ury 311d the Service ample authorilY 10 add""", any future 8 );1115" ... thHr In3Y come 10 ligh~ 

an<.l Ih"re is ev~ry .caron ro CXpl:Ci Iha! this authori,y will be c~ercise<l ene,~c'i"3I1y in 

awropri<1le d",,,mst:mces. 

On bal~nl."'. makin£ Ihe l.<l()k.Thruugh Rute pennan"nt or ""acring 3 long-term "'~Ien~i(ln of,he 

ruk would dn a great deal to promote ,hc efficic'ucy and cotllp"!i,;vencss of U.S.-based 

com panics ,hat operote glubally. while posing 110 significant lhre,1t nfh,mll in the f<'nn of 

opponunities for inappropriatc tas.avoidance beh~ ior or incenti"es to shifl business invest",e", 

abroad. 

U. U :(;ISL.t\T1 VI': HISTORY t\NU TAX I'OU CV RATIONAU: 

In 2002. 2003. and 2004. Wr.<ionJ; oftl'e t'lOk-Through Rule appeared in so;:veral of the 

inl~m8'ional ras bill~ ,hat """ntttall" t'ulminated in the Amt"Tican Jj)iJ!; ere:ui"" Ae, of2004 

f'AJCA").' hc~ provi~ion~ wen:'sub>tantially imiJ~rtu Ihe Luok·l'hrough Rule as it was 

evetltually ~'11~cIC<l in 2006, with ,It I.' m<.l'll notable dirfercncc be ing that ,hee-Jr )i~"f provisions all 

wtluld hav~ be~rr pc",ran~n1. as <JPpo:;c<J 10 t""'porn,)'. The earlier look-lhrou\;J1 provisions 

~rtioy~d con~ide""dble bipHni.:", suppon as AJCA worh..t its ,,'ar 'hrou~h rhe Con,gress, were 

reporh.'d fa"ombly by borh the Ways and Means Comminec ami the Firranc<.' Commillee. and 

,,"ere-approved in n{lO( "OCCS in both the H(\usc Md (he Scn~re. Uo,,'cvcr. !h,' proVision was 

ren\Oved frQrn 'he AleA conft"T"n"" 3£1"'t'meOlI't the v"')' ffid of tonf~rence negotia,ions. 

I"<' pOneJly Jut' 10 owralll\'v,,"u~ considcrIIl;ons, a, opposed 10 nn), sub!itantiw (-.mcern ubout 

tlte provision. 

'S"d IlIL .5j~. Ill7th r""s.,:lJ s." •• Jl!()2~..-c . J'12: ILR. l 8'16. tO~'h ('ontt-. , .. s.s..(10 lJ~.." tIll]; S. 

t f>J J. l(oillh l' ''''lI .. 1., s... •. (100J). ""'. ~~1: tUI. 4j20, )O ~th C"ng.. ~d S<-n. r2Ot"l-l , . .."" ) tt . 
943 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.886

Th.: legi lalive hi~lory from 1003 ~nd 2004 indic~l"" lhe C(\nJ>"!S $ "<Inclusion Ihal lhe U.S. 

inlcm~lio"alta~ ruks alld, in panicular. the nnti-dcfcrrJJ rull'S of Sub pan 1', u"duly intcrfl-n."d 

wilh busill<.-SS d"cisio.\s regarding lIie deplo~"'cm of aelivc foreign "a",ings wilhin a U.S.-b .. ,~d 

multinational group.' In addilion, Ihe !k"nt" I"sislalive hislo!), noles Ihatlhc ta .. eo~1 imposed 

by prior-In" Subpart I' " pon the movemenl of capilal ofl.<-n could be 3,·oidcd bl' Ia.,paycrs 

anyway (~lhlding to common pl nnninS undcr the chcd-'hc-oox e1l1itr da!<.'IifjC1llion regulalions). 

and implk~ thaI Ihc re ull s nc hicvcd Ihrough sud, plllllning are npproprialcand should b<: made 

more ..... idely and readily available 10 laxpayers." n,,· Iionsc legislative hi~tory emphasizes Ih~ 

l"Olnpetitivenl'SS conCCn1S ruis.,d by prior law's resui~tions on the tco.leployml'lll o f funds, noling 

Ihat "'os' fon:igll-b:lSed ",,,ltillalionuls do not labor under such n:striclive n:gimC"!' :Uld thus cltiny 

gn."~lI'r flnibililY in $trUclUring and fu"dinl: 1hci"r ro n:i~, in~ ~SI ",cnl:i_ l 

An~r a l"'ost four year:< o fCongre;sional on idcnllj')I1 and IlCar-CIlPClmcn1 in 2004, Ihe Look· 

Thr\lUgll Rule ,,"3 ~ <" ,,,ntually en<lCtffi in May 2006, s part oflh" Tax ncn:a~ Prc' ~n ion a nd 

Rewneiliution A"I of200S' r'T1rRA ~). The Wa}'lO and Mean~ (ommiMe rep'lrl and Ihe 10inl 

Contl11il1 ec ~tlIJrs Bluebook c.xpl3nation of the Louk-Thro ul;h Rule as cn3~lffi illl:lu"" Ih~ S3nt~ 

policy discu,.~i<H1 hal ""3' included in the Hmc;c I<'!,\islat;vc histo!")' dl."JCribi...:I and qUQ(L..:I at>uv<'. ' 

Th~ ICI;;sla1;\ t history Ihus makC!l;1 cleur Ihatillc CIlI\g",ssenacIN Ihe Look·Thro"J!.1l Rule in 

order 10 ",move imj><'dj"'''''IS 10 efficienl bu~inl.'SS decision·making coneeming the I\.'tJeploymclll 

o facliv(- ror~ l: n ean,ing:l wilhin a U.S.-based multinational gmup, in part due 10 <"(Jncems that 

liles.: impC"dimclIIs WeI"\.' placi"" U.S.-basal mllhinatio"nls 31 a l"(J"'~I;tiw dis.1dvanlll"e relalive 

to rllTdj!.ll-roscd nlllllinali ona . T he icgislalin' hislory doc~ nOI ~p ain" hy Ihe rrovision "liS 

cll3clcd on a merely I~mpor'dr)' basis. However, Ihe Wi<' of ~,e same c.pian310ry langllase 10 

d('SCrib<: b.llh the c~rlier p<'rm3nenl vcnlions "flhe. provision a nd Ihe evcnlu,1l1y cn""lI,d 

'*". '·.)1. S, Rep.. 1~1'~.3~ I'·ff>< t.·,.,,,,,ilI-M 1><1;.,· .. 111011""<>'<'" law \lAJ"ly ... ,trie" II>< ~bi y~J'U.S.·ba«d 

multino,ionol ""'JI<>I"00ns '" """'" Il10,, ,,,,.1>-.. f"",,~" """'nv rfOl" """ ron'rolled f...mll" """"""'i<,,, '" .n'''I>.'''."~ 

• S .. o S. k< p.. IO ~- I~. JQ (-In "'''OJ """"" .. x",}t13 . ... ""10 '0 ,,""'n",,"' II>. ... "",rio","" ... f"M',ie.1 "',,,,,,. . 

• I/I,,~~t oJJi'u,,,.I .......... ''''''' COi>I. 1"1-,< Com",III"" I>< i~' .. 'tjI\J I><poy .... ;MUIJ \It ~i"'n ~"""" I\<.,lbilil) ,,' 

no~v< ""'~"t>porl 'I' <,,,,"V O/t\OtIJ!'<>I>,roll.d ("."jlll' <"IP<'''''''"''.' ""'1 ........ d. ",.yd",,,,,o.-). 

, ,,,,_ 11.R. R<f'. I ~·5 ¥.I rI I. 201 .. 0l I .. ~\flI.I <,",n',;,,,' II ~,," ,0<:" """f"'0;" 10 mItp/<» ""I"·' r"""go ""milll!" 

"jIb"" (ldo.Iillooall.~ bur>J"". rhoC<OIImin<>: bcli ... ·.,.I\]allh" J'I'"I,is;.:,n "ill m .... U.s. «>m,.."i<> onoJ LI.S • 

• "111.<~ "" .... """[1<lh)l. w,th ~~I '" _lIe",,,,,ri,,,. l.!) 011",,·,,'1: lJ$. ,"''',..,,, .. '" ",,,,, . ..,.. ,I«".,,,i •• f<> ... I~ ,,,,",in~ """'" ""'Y "'" "'''''' .... ~"ilho ... 'II\£"m.~ In.: l.""edi". o./dil ... ".Iw. 1/1" ""nlp:lni •• bao<-J ,. 

n'o'l}· ",I><. ,,,,m,,",, ",,,or in''''t, ,b. ("om.,i"", bcli<l"~ ,ho, ,h. ",",,'·i,ion will <nlIblo U.S. """I'""i., '" nw:< mn", .. ~ ... """,,,,,.""'I/I", rro<lu .. """,,~. in "'" Unil<d St ... >. " j; 11.R I~ <p. t(l,,·)93. 102lln<:ludi"l! 

';m'[.'" I ... ~",,~.! • 

• • >;"0 H~. R,'l'. 1(0)·j().I, ~S (1l1Cludln~ tho SAIIIe"R"" .... M fr>r Chanj;.- .. 11.1l ~q .. IIIS_S-IS. quo,oJ .b.>,·e .. IlC'k 

7~ Il"S-I-01. ~67 ("' .~ 

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944 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.887

\Cnlp(ln:lry ,'e.,;i()I1 $ll'()ngly indiL'ates that revenue c(lnsidcrntions, U. QPpos~!d to ~ny doubt about 

thc provision'~ policy m..,.its, causcd the Congl'<!ss to C'I'Jct the provision 01, a tCTIlp(lnl!,), basis. 

The Congress revisilc"<l the LQok-Tlu\)uj!,h Rule later in 2006 and again in 2()()7. m~,king crnain 

tC(:hlli~al corr~lions 10 Ihe provi~ion in C"IlIlCClioll wilh Ihe Tax Rdi~r"nd !I"',l!th en,,' A~ of 

2006 Jnd Ihe T3~ Te..:hnical Correclions Actof2007. uS deseribal !)c,low. 

In addition. as "Ol~d above, in Ochltlcr 2008 Ihc COIl~SS ~tcndNl rhe provision by an 

additional yeJJ', throu~ the end of 2009, "" pan oflhe la:< ~~tclldc'l packOW" in rht Emergen"y 

EC')I1omic Stabilization A~ of2008. Then. aner allowing Ihe provision t" e~pir~ allh ... :nd of 

2009. the Congn.,;,s in I)e{:cmlx.'r 2010 extended Ihe provision rct<Ollcti,'ciy w Iht btl<inning of 

2010 and through Ihc ~nd of201 I, as I",n oflhe est"'ldm p,d:.age in Ihe T~~ Relief, 

Unemploym~nt IIl.urnnee Reauthori:(a.rion, and Job Cn:alion Act of 20JO. The ObarnB 

lldminiSll'lIli!)n's FY 2013 budjl:ct prop!.'Sl.l. n:lcaSl.'t! February IJ. 20 12. would extend tile LookThruug), Rule through 20] 3. 

[I. Tat Polk" jQ e 

L !t >.:~ O!o!! ~cles 10 ~f~l'!ig!! ·!~!::!!f~I:!!.R td l~Y!!!.~!! !l f t\cli ~ 

Fo ~iJ.:!! .Dus'nl'Ss Inoome 

As Ihe legisl~ti~e history indicate,;, the fondamcnlallax policy raticm:lle for Iht Loo~-ll,,-ough 

Rule is 10 ensure Ihallhe U.S, lax syslcm docs not unduly ,merrer<: ";Ih the ubHlI)' ofU.S.·b.1SC(! 

husincsses '0 re<lcploy Iheir acli,'c. non-Subp;!rt·F rorci{!l' cnmin:;s abrnad os their bu~il1oCs< 

n~'l-ds may dicratc. J'ro~id<'t! that thcenr1lin&s represent active, nun'Subp:\n-F .int'S~ incomc. 

and thu, are sultjtttio defl'ffill MU.S. lax when earned by the group. no goOO \a;( poli cy pllrpo~ 

is scrvtd by Icpnin3ti"l; defelT'~1 and rhus ubj~'Ctin!llhe cumings 10 U.s. lax mcrely becausc Ihe 

group mo\'(s lhe ean,inHS or onc ('1'(' to 8 dilTe...,nl CFC. l\~n in unQ!hcrcoumf). based on th~ 

I"" eFCs' rcl~tivi: h"s;ni."'s n<'t.'t!~. 

The I.OQ~-Through Rul e thuS pddrcs..;"s a ~po:cilit prQblcm Ill'll arose under prior law, Pr;or-Ia" 

Subpa.n F g~ncrJlly I"m~d toKcther m,ly p.1ni\'( 110",s!)f income into the W'Oup (e.g .. inler<'S1 

m:dvcd by a ~"bsidiary un a ponfuli!) sc<:uritic5 inveSlmcnl) with r«ii.1)loymcnts uf actinl 

can,ings wilhin !h~ group (e.g., an intercompany dividend!)f eaminl:-' from" CIT in a m8t= 

market to "CFt ill n~"Cd of funding. 'f) a r"".up ",a.ke!). The.:<)ore coo~~m of Subpart r i. rhal 

!rul), p.L'ISi\'c nows <nighl tic pl~ecd in lOll ·ta.>; jurisdiclions for ID~ rcaS{)ns. Th~ lal\er sllualion, 

jn "hich ~tivc camlngs an.' redeployed fmlll on~ ~tjve busines.~ 10 anollte "cli"~ h~sine5s 

based on busin~~s n~s, fall ~ out~idf hi ~ r"re C(JOtcm, thu~ renderin!: the priQr-law " ,I.-s 

ove-rbroad in Ihi. n: pcct. Although the ~$ame coun1lj'- ntles Qf\«rion 954(c)(3) remedied this 

!)wr-brc:,dth IU some c~tent, thl'SC rules are of course fairly limill"<l in their seuJ'" and elfo:et, as 

hI,sincss needs f~ucrniY call fur the t\."<Icpluytl1~nt oracti"~ fun:ign earnings from one (oreign 

coumry to 3notl)Cr. ~ 

.. " '" .. MIl> ,",to,'!! 'I"n ,,,,,,,,,><,1..:)' ,~Hl<re""t "'g,,,,~u'><l<t \'.S. 10".11>< "" ... ". ~""'!:II i,,,.,.,,,,,,,, """'r""Y 

(" r'I'IC") "'l>'",.'.I .. h.oJ .... Io<\I.·lhNoJgh rute """'Jt)' ,;u, i~ '" u,. tbOl.I'h='I;h 1l"I<J~ """'_ Sot """. 

t2~1 1 b'o(~ ~C1. " "hough ,"" Sul'opon I' and ,h.o ~ftC n'llj,,= ".,,". ""'" ..... , diffo,.,,,, """" .... , II", P~l(' look· 

(conr;""ex!, .) 

3 
945 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.888

The Look-Through Rule n.'Co!,nil'e~ thi~ bu~incss rettlity ~nd enables U.S.-b<lsed muilin:ltiomlls 

tl.> MInke-group fund;n!!: dL"<:;sions on a mllre ne~ible hasis, with 1o:ss disroniQl' hy U.S. ta:o; 

consideralions. Wirhour this tlexibilily in th~ I''''ding of business opcrnlio". in the re<;cnt 

financial crisis. conditions in the erroil m:u-k.,ts Imuld haw nl3de .... "C;,,;s to oth er sou",cs of 

funding mOn! difficull R"d unduly expensive in Il.lsny caS<."S. The conlinued al'ailability ofth.· 

Look-TI!nlugll Rule "no"·cd U.S.-bascd mlillinntirnmls 111 Uk' Intcrnany s~ncrnle..l cn&h 1;1 fl'ml 

Iheir fOr<"igrl opcr.lIions Illlhis challengill!! ("I1vironmc1ll. 

Al the same lime, lhe Look.Tnrough Ru le dO\.'S "Olhin!: tn weak"n Subpan F as applied to ils 

core COl)c~n~ of pllSsive incume bein!: canlcd by a U.S. company d'rough fOW_lll~ ;suOsidiaric;;. 

If a U.S. compa ny sccl.:$ 10 cam passive or uther Subpart F ;""omc thruuW B fuw-Iax sub~idi:.ry, 

Ihe Lo.lk·Through Rulc do..'S nOlhinK 10 defeDt lhe APflli~alion ofSuhpan F to Ihis incOMlc. E\'en 

afkr th~ l.ook·TI'mugh Rule is applied to a paniclllnr CFC·tn-Cr c [llIyntenl. theC"Fe l"I."<:civ;'11!-

Ihe PiI)·lllcnt r~m~ins suhjecl tl) the g~n~ml rules ofSubp3n 11. lllus, if the fund~ on:- inv"~INI by 

lil31 CfC" jXls.~iwly, Ihe relurn on Ihal invt'Stmclll will relllain subje<;t to Subpan F. Similarly, if 

Ihe funds arc ~clually ur etT<"Ct'\·ely n.palriated 10 Ihe U.S. parent. C\)r~ll U.S. la;t will be 

Iri~crcd. Only b)" inwstin~ Ih" funds in acli,·" business opcratiu'~ doe~ the CfC nmintain U.S. 

1a~ dcf"rrol on the ",tUnl 1)11 the inl'estment of the funds. 

The Look··n IMugh Rule Ihus afford51J.S. bu.iOl.""5scS h~ Oesihilily nC1:<""5S11r}' to mnke hy 

bu~ine~5-driv<"!l fundin~ dtcisions Wilh respect to foreign oll"rtIlio!l$. wilhvul COlllpronlisin& the 

core policy concems ofSubjXlM F." 

As rhe SenalL' Finance Con""illee noted in 2003, many raxpayers bve t>r:e" oble 10 nchieve 

Wille orthe flexibilily described above wilhout Ihe Lo."JI<.·Through Rul~, Ihrough the II,., Mlh,· 

"check tite I>ox M enl;Iy classiliClilioll ri.'&ul~I;Ons, which etl""<:I; l".:Iy disregllnltrnn>actioos 

OCtw • ...,n certsin I)'~ ofre!Qtcd forei!;!' husin~. By wPy ufhltd'l;round, it ho;; long becn 

asiQJl1alk thai tOl)(payCl"!l ~re emil led to :lel<"(:l the I()nns in which they conduct bu~ines.s ~round 

the world. and thu s may choose 10 operme through CW"jlO .. ~tjons. p.mnerships. br:mchl'S. or olher 

typc~ uf cnlilil'S in ~ari01.'s m:lrkcl.S. I'rior to tlte chl'<:k·the·bo;t regulations, Ihe dassir;catiun of 

entilics for F"c{kr~! lax purpm<:~ was 1!0vcmL"<f by a mu ili·r.'clnr tCSllh&t WlIS widely ,·iewed as 

cumbc";Qm~ and administ"'l1i"~I )" cosIl y. bUI ultimately flexible in alfowing ta~p3yers to achievc 

Iheir dcsir.-d cfassificalions. The chcck·th.··bux "'gulul;ons. "hieh cmne iutu eIT."t:r iu 1997. 

gClI<·ralb allo"· raspaYl"f"S simply 10 deel 10 Il'l:al m~ny "usiness cnlilics eilher as cUrpOrations or 

Ihrt>u.:.n rulo ",n«:ls a ("cQlI"""ioo .. 1 und<.... r""'-liny. tho, inlOn:""'I,.n~ ",,~m<"'" ,,( i'orn, li ~< di,i<knd. rod in'"~1 

""' .. '" <",ir<lydl,Ycw .. 00>: I"'tkl '''''''em< I""n ,hoM! !""'C",cd by ,,,,II· 1'"'>", .• ;I.m; lik< f""'r"li<>d ;' idc:" I~ 

.nJ \",'~iOliv in .. """ . o.nJ \h;ot fOW,,!! to .. mo"'. 'hi, di.,,,,,,,i<;>n ""'" tn"". voJ"" buNCO' (l<ll;>\»i,,.,.. '''u","'';n~'n.! 

ok<:i.i.m n'.~in . 

" Tho J1O"<;b;liry "r """, ...... poll<)' ~ ... I,'ing '0 ,ho rNOC'iqn "f f_il\" '''''e:-. ;,. ronoid • ....,-J In """ tLll.l 

bel"". 

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946 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.889

as pann,'r91ipS. or, in Ihe case ofa ,ingle-member entity. I" disn.'gard Ihe elll;ty as SCp3mle from 

,IS OWllcr, r~llI<:r 111~n ulldcnaking 111<: I(lUlli·f~cl\lr mlalysis Ihnl "'as n."'1uirl-d undcr prior law,' : 

Wh~re an ~nlil)' is '"disri.ogarded" under th~"5<: regulatiuns. it is cn~-.;t i, cly treated for la~ pUrpoSl"S 

'Il< a pan of irs O"",."r. Thei>wner is trem"d:L~ diri...,rly UI,."ing oil oflhe entily's assets, bcHring 

all of ilS liabilities. and coodl1elingall ofils activities. Aceordinj:\ly. the enlily's income ami 

exp.:n;;c lt~l1s are reg£lnkd a~ tho!;C orth<: owner. with tron>netion!; bclwCClI Ih,- entity and the 

o"'ncr bcil1gdisreg.~rdcd. 

fiy disI'CJ;arditlg th~se transaetion~. the che...,k.lhc_box .... guialions ill somc cases mitigate thc 

ow\:_brcadth of Sub pan F d"""ribcd abo"e. For ~x31nl'lc, if a crc gcncnltc~ suflicienl cami'Ig' 

from op<·r3lions. And anOlhcr CFe in a different OOUlltry nClods funds 10 expand its opcrnlionS. 3 

diviMnd ofthcc xc~~ funds from the first CFC to the S<.'Cond CFe (or from tho.' 1irst erc to a 

erc holding company, follnwed by a capillli ~nnlribuI;on 10 IlteSC'tond CFC) "oold ttiggcr n 

Subpan P inclusion. Ilow .. ver. ifLhc secnnd crc is il1S1~ad a ~ch~tk~" ntit y "holly Qwnw by 

:ULd d;STegltrd~d as separate from the fITSI CFC (or i(boLh CFCs are instt"3d "ch,-..'Ire.r entities of 

a third CFC). Lh .. ~t Ih~ divid~nds arc disregltrded for la)( purpose;:. ~nd lhus no Subp~n F 

indusin" results from the redcploymcm orlhe limds, Thus, in m""y circumslruKes. the ch~...,k. 

tl,,,·bo~ regulations have enabled Laxp~yers 10 make emdenl ca;;h red~p!oYlHenL de...,isions b} 

employing r..-.. cr eres and mQre di reg,ardC<l entilies in lheir Slru{.1Urcs. 

The ch""'~-th,, bQl< "'gul3lions "'p",sem only On ;ncomplete (and ~ce;denml) !K\lOlion II> this 

pl'<lbk~n. hOWel'C1'. First, r,'en for Ihost' laxpayers able LO makl' uS<:." ofslrategi..-s like Iht L'ne 

dCSCfibt.-d 'loove. eSlablishing tit" structure nI:ly rC<juiT" incurrinlO t:onsi,kTJblc (rans,1clio" eusts 

and managingcQlHplex imernetion, oflhe 'In,clUTe with otherasp"clS of the IWlpa)'er's tax 

~";mpliance and pl~nning under Ihe rnreign I..,. credit r.:simc. Subpan 1'. and othe"!' n,(l"', If il is 

conslder.:d deslrnble to allQw U,S.·based businesses 10 re,k-plo), lh~ir "CIII'e foreign earnings 

abrrntd willIouttriggcring Subpart F- which Ihe Congress apparel'tl}, belic~es it i~. bllSCd Oll 

both the 2003 Senate Fin~nce COllllOin ..... ""J>OC'1 31ld Ih" C(1t1gTt"SS'S longsmnding generdl 

a('quieJ('cncc 1() the usc- ofthes<: well·known planning techn;qucs-th<:n it is surd)' more 

dc.sir~ble to pro"ioe for this resu!! din:etly under the Sla\ul(·. ""IMcr than requirillg 13Xpaycrs \0 

undertake COOlly "wIFhclp" ,,!cas.ures rcqu;r;"s eo,wersiolluf clllili<:s and olher t'Xpc't5;"" 

m~asll""S. "h~ ch"ck.I~~·box ""hnion, evell wh" .... a"ail l:>lc, impost.'S "<lcially wasleful costs 

thai arC ciimir13led by thl: took·Through Itule's IIIorC din::c! approach. 

In additil)n. lOany laxpayers a",' simply nI)l able to use the h,'ck·lhc·bo.~ rt."gLllulions in this 

1113nneT.\)eeaU!;e they arc required tl) ~onduct busine s throt,gh cntitie~ lhat are IT(,<IIcd ~s (l<'T!l<:' 

COfJlOral'OnS (i.c" are nOI "chttkablc") under Ihe r<,'gulalions_ For example, companies in certain 

itldu~lri,:s, .such "S itlsunltlCC, banking, and other I't'gulated i"du~tr i,'S, may k "'-"<luir<,..! under 

I<>callaw 10 o/><,fll\e Ihmnsh corporate entilies Ihat an;, not "ch""kablc" under Ihe rcgulalions. 

1'ru/pa)'~-nt in Illes,:, induStries thlls d,"linu~ U't fHce con~;dcrnbJ~ barri"l'Sto the cfficienl f')rcignto-fordgn dcploym~m ofth~ir acti~ fordgn caminJ;.<;. In addition, ce"ui"juri~iction". 

inCluding OIajt>r U.S. trading I"l"nffi ~uch a,; Cllnnda and Japan, do nOI I)lTer S<lil~blc n<ln-per-~ 

l111iti;:!;!IS a mall~r ofk1Clt1 cOrpor:lle arlll businl'S~ law or local custom with ft'>pe<:1 tl) how 

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947 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.890

bu~incss is CQJldu~loo. Thu$ U.S._b<Jsed muiLinoliulltlls wilh signiliC3nL Opo.'rnliOflS .11 tho:se 

c<)UfIlries ~Jve Ics:; nc~;bility wilh resp,:<:t to l\inding d""i5ion~ ;,)vol,,;ng IheSi-' opcraliQus. 

As 110t~d above, 1h" '';ame-collntr,..' rul ... s ofS<.-<:lion 954(e)(31 afford lax","y,,!'> limiH:d A: licf 

from the H~'IIcr:11 o"tr-brc.t()th of Subp;ln Y, bill only wh.-n a~1;vl' busin<'SS ~~mil1g.<; UTe 

...,.jcpllly~d bclwC<'n subsidiaries in Ihe s.~ mc eounl')'. FunhcnllOll'. even with respect to such 

saJnc-.:<luntry no" .. the statute and re",lalion" have fai l ...! I" h."p paC<' with dc\'clnl"n .. ~us ill 

il1!~matiollal business and ""gublory pn«:liccs. lI'ith Ihe result titnlsvme laxJXIr~r$ ms)' nOI b" 

~ble 10 make s:lmc-(ounlf)' CFC-to-Cr Cdlvidends "ltho,J( trl~crinil cumn! U.S. \.;Ix tmder 

Subpart I'. 

Fur e.~amp c. tilt Europc~n Un;uu's adoplioll of a singlc·liectlsillg rcgu lmury regimc lor linaneial 

il151itutinn~ hlL'; allnwed U.S.·baS!....! finnllci.i in~ ituli'JlI" l(l npen branch • ." Ihroughuut F.urQ!,e 

under a singl~ European eye. This de'·elnpmem obviously ~nlails Ihal ,."ch a CI'C wi n own 

signi tieuOi =IS outside ilS country ofo~~"i7"tio!l, Howc'cr, IInder Ihe Subpart F relluJ.ltinns. 

Ihis fael wcighs "!!'lin,1 ,lIeh a CFC in nllempting 10 qualify for Ihe ilcnetits oflhe same-cotllllf)' 

rule in conne<:tion wilh a dividC'lld to its own same--cOllmry ~m. bectlU:;e the rellu)aticns 

K~'fIe",lIy r<'quirt, thaI more th311 half the dividcnd·paying eFe's as"",,, be blls;II<"SS a ..... '1$ locat<'<l 

in its cOllntry Of;IKOrponllion." ThUs. ew" II S<lmc.,;ountry dividend can cnco"nt~r obstacles 

ulld .... Subpart f ill cerlain cases in"glving "'<;>den. business moods. 

c. llis..l!:!a.'iSxceplinl] 

Another pussiblcavcnucofrelief, the w-<:alltxl high-tax exc<'plion of .seclion 954{b)(4), also fails 

IlJ allow a sigllificallt dcgrt.'C uf nc~ibilily in rorcign-to·iorcign r....!epIQymcnt orac1i"" (ore;",n 

ean.in!;S, Under Ihe l,igl,_lax exceptio'\, e(,"",n it"ms Ihal mh~n\ o;e wnuld lril!£cr Subpan F 

indusion. nN excll,Jed from !:,ubparl F, pro"id~d .ueh ilems ,,~re subject I" lore,!!;n lax m a mtl' 

in exccss of90 p.:reent ofthe tOP U.S. corpomte tax mte (i.c., mON than 31.5 percen\. based on a 

U,S, corporalc ntte nf 35 percenl). Alth.:rug.h allp.:alinll, in thw<y, Ih~ high-tax c~cc[llion ha, 

sub~ anliall)' failed as a maner of[Ir.IClite, due in large pari tlllhe difficulties in I:S rnbli~hin g 10 

tite Servicc's SillisfactiOI1 tll.t Ihl.' foreign tax thresilold is met, und ..... computations involvinl> 

highly compkx intcrrn.'liullS among foreib'l1 taK rukos, U.S. I~ J( nlk's. lind U.S. ctlntil1g5 and 

[If<JfilS calculmions. Mnrco'-er. C""~l assumi n~ !hnt a mX[lllycr catl tame Ihis ~nm[llexjty ""d 

unecnainly, the ~tandard is bccomitlg itlcrcasingly difficult to ulisfy, as eoumri",. Ihll}ughnul Ihe 

world h",·c low~r .. '(] thl·ir oorpomlc income lax rates itl ,.,tenl years. Although the high·tax 

C,\ccptioo in COI\<:Cpt mighl bt relied upon 10 etlsur\: that Subpnn F doc'S nm afTecl "Jl.'j,I~ 

bLJsineS5 ope,mions CIlrIducI~ in Ihe wl>Tlcl', major industrial demOCMlcie.;, the (.1Ct is thOI the 

vaSI mi,j!>rily ofinl portam U.S. lrading pannl'11 (including. for example. Canada. China, ""c~ico, 

G<'I1l1any, the Unit<'<l Kinlldllnl, Australia. Italy. and Sweden) till'" have corpor..te incum\) a~ 

rateS bclo" 31 .5 percent. 
948 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.891

In vi~w of the gcne",1 ",w·breBdlh of SUbpart I' ",i[/, respect t" rel"ted.pan)' forei&n.to·r\lr~ign 

payments and Ihe limils and Ila"s of oth...,. avenues of relief under the Slat ute and r~&ulation., the 

1,00000··Il1TouJl,h Rule ,;o;["\IC' ~n ,mporthnt pU!"JX'SC in alit", ;n8 U.S. romp:lnies the Ilcxibillty 

[)<x:cssary 10 ,,,ake efficient decisions ,,"illi respect 10 llie n:deplo}mcnt of oct;,·e !llreign enming..<. 

This ha~ pmved particularly 'mpllrtlml under economic tQndilil)ns in which an: .,;s 111 olher 

SQurtts-offundi,,!:\ hill; bt."i:1l dinicult. A~ e)lplainOil abovc, th~ rule accomplish., Ihi~ &()1I1 

wilholtl comprumising the effeeti"~nC'SS of Sub pan F as 3pplicd 10 tl, e core conccm or oowring 

lrul)' ras~ivc income C:lnK-d Ihm\l~ low'la~ subsidiarks. Some haw argued, however, Ihat 

auothcr imponant gl),JI ofS .. bpart I' is 10 pn'~ent lbe "de necli,m" of incom~ fmm high Ia~ 

foreignj risdi~'1ions 10 lo,, ·la, f"reign jurisdictions tall." describe.!., loreign-Io·foreigu "haw 

erosion" or ··stripping·'). Under this I'i",,'. the applic:>tiOll of Sub pan F 10 relnt.ed-pany JXlymenls 

th~t nre generally dcdu\."\iblc by the jXl)'\lr under foreign t~~ law ~i.e., Inle!".:!;t. ~m5. ~Ild 

roya1tie~) ,;o;rves Hn impQrt~"1 purpol\e by det,""dinl!.th~ ta.~ bas.,,; of highcr-ta~ i<lrei",n 

juritidittitlns. 

Thi. vie" is misguided. lora numb.:r orre,.,;ons. I'irsl. the "orld's hiJl,her-18x cauntrie'S. 

indudln", Ihe Uniled Stale'S, me rightly ooncen[(."<1 abo"l !k·fending.lheir own Ia.~ bases frum 

heing eroded thmugh deductihk related-party pay wm~. and mo;;t stICh ~ou" rk'S havecnaclcd 

robnst relPme~ to cOntrt)! such ba:;e erGSion. 'nle erns;on of a foreign ooumry's!Hx ba:;e is not u wbjcct of obviQlls "OnCem ttl U.S. Ia~ policy mukers_ indeed. 10lhc extent ilIa! a forei!,n 

subsid iary ofa US. oomp;my dOl.'S redue'c ils ftlreigl1t3X liability Ihrough ddk l1ion SU'l11CKil'S. 

the U.S. Ji~ :H:llmlly benefilS, a s reduced foreign tax,'!' will rn 15lat~ in lO reduced rore;",n tax 

cred its a~ nSl "",idual U,S_ laxt:S when fOreign ean,ings Hre "-,,stri aled." 

It ha~ oc"n argued Ihat Ihe ability 10 det1&t income from one foreign country 10 nnolher may 

di~lor1 in""'"Stlne"t de.:i$ioll'. by renderin.g forci~n in~e~ nl nl more Burnetive on Un afl<'Ha.~ 

basis Ihan U.S. inveslnK~It. thereb)' violatin!! a principle described by its pr!>pIl!lcms as "'''piwl 

cxport n':Ulrality ~ This conce-nt dOt's not accuralely ren<'Ct how loc~tion dc-c;SiO!lS are ;lClUally 

made in Ihe VMst major;t} ofsiluation •. Locati"" drtisions with ""I'"et to eustom~r markels are 

wry much e"~10mcr-dr ,'e . In olher ",ortis," U.S.-based multinDliona l simply nee'!. 10 ha,'" a 

la~c presence in thl' m~j(}f IOU cllunlries. and in counlric-s tike Can.1dn, Japan. Dud A,c~tmlia. 

O nce a compan) is there in. my, Germ'''''', ~rvi g Gennan cuslomers. Ihal oom[lll!ly or COUI'llC 

llI:!.y engngc;n pcm,i:l:liblc planning to reduce Ih~ Genn On tas liability. Ag:l.'"n. tbe prjmu~' 

cfft'Ct of this activ;,y i, to redute Gt'rman ta~~s, a pr!)blem 10 ..... hich c()u ntrics like Gemlany 

undcrstandably have dC~OI<.'<l si~, ficunl energy. The secondary cff«t oflhis aCI,"ity is to 

incre~c U.S. ~'-'S. by reducinJ: the ""'''''Ill ofGcnn"n la 'e~ Ihal ll", Uniteo;! Stall'S cvclltll:tlly 

must allow as a 1000ign tax cn,dit. The nolion that Ihe nbility 10 base-erode Gem,an), may IP'·c a 

U.S_·h ~s<:d mullin~lional nn inccntiv~ Il) IOCalc activities ('[u lside Ih~ United Slnl\.'!i is mu~h mClre 

.petulutive und remote. 

" rbi> ""<0""' b<n<11I "y~1d ~r ''''''''' be ~ 01'. fock!< .....Jcr ~ 1=i~~ill.1 di, Mkoo "'IIl~"," .»1<0'. b<\:lt"", 

_~ • »~ .. n' " .... kI .. ",;r"' •. "'I)· ...u""," .... ,,~. or ,boo r...eilPl ,"x <",di, in "H,ill'lliol,h< ""ubi. to,-""'" "refC- .. ..,;~ r". impon_e " fJ>r=n'i"l! ,,,. Lo<>/. . ! IImugh It .. ", m. <)1""''''''''- ond<, _ 1<,",,,,.;"1 rlh'lJrnO 

... <mll'''"., »".on " ~OO<'IJ •• "J in "'" V I I><low. 

7 
949 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.892

Ta~ cOllsiderdtions h3v~ ot most II vcry lim;1<.'d imp.:lCI on a CQmpolly's basic investm~nt 1()<.':llion 

decisiQnli, "hich arc Qverwhclrningly d~termi"cd tly the locatiQI] orcu~tonJer markets and access 

to th ... "eceSSllI'}' human capital and Olher ..... ,sources \Ieedl."d 11'1 run Ihe business_ 11,e QPponullity 

to del!...:t some inoon", from GcmlallY inlQ II IQ"cr-Iax cmmlry-which QPponunity again .... ,11 

be constlllincd. as well il ,hould be. by spccilic rul"" QfGcrmanl1lll law- is not likely!O caUs.: a 

U.S.-hJscd Inultinm10lla! 10!;o,!t up ,~r exp;md a nW\IIfoculrlng plant. or I,) Qpen a Imnk hranch. In 

Gmnuny il\~telld Qf dQing 00 i'ltlle Unitw States. "!lIen: a1"(" ~ilHply 100 man}" other more 

impOn~nt variables for II CQmp31\y to consider in making thl."l;C tyJlC ~ of decisions. " inancing 

d~..:i$iuns. on the Oilier hand. are much more prone to distonion tI}" tax rul~. because fm3ncing 

decisiQI\i arc IL"$S tcthen.-d tQ CQncemS ~rccilic to the underlying busi,ll'ss 0JlC",t;"n 3nd al'<! 

Qvcrwhdmin!;lydriveu b~ a 01."<--d 10 ,"ini,,,i;,: the COSI uf carimL Thus. a lax rulc thm intcrfcn.-s 

wiln a U.S.-base.J mullinmional's ~bilit~ to f,nane<.· its fon:ijm "p<·r.ltions" ilh ,ts actlVl! ft)reign 

~3minl9'. haso:.-<t On .. tmccm, n·lming !o foreign b.1s.::. erosion. not only failS 11'1 innucnCe bru;ic 

IllCllt;OIl dccisjon~ but ~I:I<I mlll\ag~~ 10 di~!ort Iinal1d ll Hdcrisiol\~ and effecliwly to il1crt1l.~ th ... 

.;-oSt ofcupital for U.s. ba~ COmpAni<::\. This i511 Ci)SI incre;!se tllat Am('rit~1\ bu~in=' Clln ill 

~fTord. pan icularly because Ih"ir f"reign COll1p<.1iIOTS suffcr no such cost incrt::1sc. 

In recognilion oflhesc realities. the Con!!-,e.<s in "",ehl yean; has by and large ,..,jecto:.-<t capital 

eXpI"Irt netllmlily lind dctlcct .. "J inc{>luC ru; tID: po:!1iC)' CMi:Cms. 9nd h~s spccil1ca"y indicnt .. -d that 

p!.Ire foreign-to-foreign bas.: erosion is nOl a phel\om~lIoll wilh ... hlch the U.S. ta~ system n«<l 

be COl1c<"'m.:-d. ·Illis ntwer "'1''; squarely al issll~ when ~ury1llld the S.,....."ke issued NOti«' 

98·11 3nd the relatoo proposl."d rtg"lalilIflS. "hith attemp'<'d \!I prevo:m fort'ign 1Q-f()r~igll 

slripping in the wake oflhe s~ uancc ofthc clleck.·th~-box rcgul~lions. Undcr considerableprt:ssurc from tlte Congrcs!>, Trc;ISIlI'}· and Ihe Service abaQdon .. 'lI th is project . making it clear that 

theQrelkBI c"""emS alxlut deflected income and capiml c~pOrt neutr:llity did n"t justify 

inl~rf~rins lI"ilh tile allility "fcumpunie. I<> rt.-dcploy funds 3bruad in th~ m,,'" dlicicnl mann"r 

possible. More recentl~. as ""teol above. tl~ S"'natc Fin~n~c Committee implicitly cnd"rs~d Ih.s 

Vi",,', sulJ.gtstinjl Ihal lite then·proposed )",)~ ·thmllgll pm~lsioll sho;>uld be cnacted In onler to 

make moriO re3dil~ availa"l~ Sl",t"gies oftite kind Ihat Not c~ 98-11 and the' J"t'1~ted propoSt"d 

regula lions had aiml."d to prewnt. 

111. ·llACT l.,l~II 'A(TO .LOOK.Tl IIWUGII ON CO,'!"ION nUSINESS 

ST«tLCTlLlU:S 

The Look-Thrt)u!l1t Rule cn.1bll.'S U.S. companico; 10 1ll8k~dlici"'l\t structuring.linm1l:ing, and 

~'lIsh maM!;"'nten! dccisiQl1s with k-ss dislonion in the fOtm oft3."I: '·0I1$idcT:lII0IlS. It abo cnsun.'S 

\hat forci~1 ... anli"g~ ... r" fOl"l!ig.1I ~ubsid a'Y thaI may be ill excess ofth~ dJy·lo-day nc,-ds ofthUI 

subsidiary wil) lend 10 "" wppffi tly 8 U.S_ g10b.11 COI"I"'IIY to ,'x!,,,,,,l ,n "ttll."r Ct,lUntri~ 

"'·Ct'SC3S. ",thcrthan ",depIQ)';ng c"min~ frQI11 the· Uniled Stales 10 linancc Ol"CrSCas e."l:pansion. 

For t~amplc. c<lmplmies 01\<'11 organiu tllcmS<'lv<'S f<l' bu~il\ess <C",Jl;(II1S on a rq;ionaIi7.c<l ba..is. 

with ~gional holdin!;c()II1p:,nics owning. and ntan~£ing a number of different CPCs in thdr 

various rcl!ioll5. Often onl> oflhesc (FCs .... ill be \\"ell-cslabli~ht:d in its nali<mal markt~ and will 

be &l'n~ral;ng proftts in that marktt Ihat ,"'QUId be j>Ul 10 their !xst '''C by being i'''"C'Otcil ,n 

anmher ("FC in the "'gion. which m~y be in ~ smn.up mod~ or 1113)" mhcrwiSl' face siJ,;uiiicsnt 

funding needs. In such B case. "'Ill,)nal manng,clI1cl1t may dctcnniuc thollhc most clTlcienl 

funding mcthotl would be 10 hOl't the welkstablishcd CFe pay a dividend "p to the "'gi<>Ilal 

" 
950 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.893

hoJding company. whith th~!n wQuld l"()ntribuI~ Ihe fund~ down intQ th~ crc th~1 nced~ the 

fund,. 

This k.ind offon!igrl-ta.f'""ig:n funding mechanism mak«S s.::m;C" from 3 ilOfi-l3$ """'pceli,·c. but 

pril)l'-law Suhpan F mnde it o"crly costly and ineffocient. With an eXlI1l U.S. I~X 'OSI belng 

imposed on Ihe u~ of in lema I fon:igJl fUII!I~ 10 fln~m:e Ihe CFC sian-up operalion. Iheoompany 

could be forced 10 choose belween either costly ~u,m.11 borrowing or di,inve5tml'l\l from its 

U.S. business, or bulh. as ils rclmlining funding options (as Ihl·U.s. p~rent corpor'dtioll can 

3Iwa~'5 oom"b" I" cash do",n a m"hinatio"al cO'flOrme chain free of U.S. la.~ cost). Oddly. the 

pre_Look.nuQugit $ubpar1 F nlil .. thus nUl ()Illy creak'll aJl impedunenr t(l ellicienr bu~in""s 

decision makinJ!,. hul in doing SO crcal~'<l inc~nti,'"s In "',<pon c~pilal fromlh~ Uniled St:ltcs in 

order 10 linanc~ forcign in"cslmenl-.:lcarly not 3 result h~1 capital cxp6n n-cull1llity propmlenls 

lihould endoT$<:. The. t ook-Through Rul e "'moves the>e impWimems. fr«~ eornpani~ to 

~mploy wllal should be 1111 entirely uru:onln)vel'5ial Bnd "'nsib!~ bu~iru:ss funding m~thod, and in 

doing 50 n,dllc~ the distl)nion of funding dl'Ci~ions by Ia.~ considerntiuns. which in some c~ 

may prevent rllnds from I~aving th ~ Unilctl Stmes. 

Similar e~ompk~ M such lilllding needs and d~isions abound. Bank~. f(lr c~amplc. must salisfy 

CIIpilal n:qlllrem~nt~ in each new cqUlllry Inlo which Ihey espa lld. Ihlls crealing rUlidlug needs in 

foreign I()<:alions l)lher than Ihose in u'hich e.,c~:;,i fundS hal'e histl>rieally be~n gcncl1llcd. In lin) 

indu~try. a cQmp'dny pUl"liuing ~ stralegy ofgrowlh by Rcquisilion conSlantly faces: funding needs 

in for\.'igJl markels oll\,-r than tho5e in which;1 is cumntly generating I'rof,l5. Across induslri.-s. 

Ihe ~bility tu dirl'\!l aClive foreign earnings from a e r e wilh funds in c~ccss of its nc .. :ds 10 a 

eFC wilh needs in esce .. ofils funds is 3 "almble tool for 3 comp .. ny 10 ha\'e al ils dispo>al, 

entirely upan nom lax con,id~"""lions. "h~ ,-""k,'''ro,,!!h Rule 311.) ... 5 lh"sc sirnlegi", 10 be 

Implemcnted on a 1110'" ta~-n~ulral OOsis. 

IV. II\1PORTANTCO;o,U'£TITIVEN£SS ISSUES AT l'LAV 

Caiibrnlins II\(> U.S. tax sysh,m so Ihnl it is in tun~ wilh luda)/~ 810haJ ~'\!onom)' is H critical issue 

!ocpolieymakers. U.S. companies compele across m3ny dirr~renl geugmphic r~ gilwl$. I()<:aling 

opcrJlion5 and regional hendquar1Cl'5 "here Ihey erulllc5l serve O\:arb)' markets, Thl1' hire 

I3lclll~ d employccs fronl many different ~ultu= and toulllrie~. Thdr ('xpallsian lOud competili"e 

Slrenglh dcpen-d nOljust on U.s. talent ~nd op«Jti on~ in Ih.· Unit~-d States. Rl!th~r. Ih.·ir vitality 

depends un a b!~nd of talenls ,md operations from around th~ world. Their compc-tilOl'S are 

nimble 2nd Iypically are SUbjl-cl 10 ,""sidellcc-cowllry lax ~ySlems that penni! Ihcm 10 move 

c~pil:ll WId enter inlo dlicienl meall~ offunding wiU)Oul i(lcllmng huUK'--<:UUlltry lax on thest.' 

IIIm·emcnIS. 'I"is reality is a different olle from th~1 fa~-.:.-d by U.S. companies and the U.S. 

economy somc 20 or 30 yea", IlgO. Tlw Look-Through Kulchclps 10 level thc plu)'ing field for 

U.S. con'panies III \oda)"~ gloOOI economy. 

~lost forci!\ll-bas<.od llIultina(iUlmls wilh which U.S.-b'lSt.'d multinalionals compete do not facc Ille 

""r1 ufimpcdimclI\:; prcst:ntcd by pre-tuok-ntroush Subl'3n f' in maJ.;i,'S fWlding d,,,,isiu!ls like 

Ule OI)CS described ~i>l ... ,,_ Imposing U.s. ta.~ "hen U.S. mmpanic~se~k Iu eXp;lIId their 

oosincsscs creates a dral! on U.S. compani!!S' c lf,)r1s to C(lmpele and grow in R>r~'i{;n ,"arl:CI~. 

because the) face a IIVl COSI Ihnt gen~ntlly is not stlfter.ld by thelr foreign-based compelitoT5. 

This addc-J lli~ cost call make U.s. comJlllnies nat_footed rel~ ive to their competito('l; ill 

9 
951 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.894

K'Sp'",di,,1' 10 ocqLli~ilion and el1pal1siol1 oppOrtunili es and. as desnibed 31>O,·C. c~n~, en f()ree 

llic eSpOn of capital OUI ofille Unil~'d SlalC'S in o(der 10 Iina!I"'c ford!;ll QIlfl'.lrtun'lics_ Such 

Irnde...,fl:S and 'OSUi hould nol be ,mfX'sed unless ,I is clcar Ihm iiO m~thinl: suflic,cnlly 

worthwhile is being a~ClJmpl'shc..J from a las policy JlCrsJ><.'Cli,e. 

u.s. policymalcn; ~hQuJd bec<m~mcd when U.s. cnmrani~s face bamen; In CQmflCling 

etT''t:ti\'ciy in f~il!.J1l11arket s wilh fo ..... i<!JI·b:!sed cOlllp>lni<'S h~1 a ..... nOi subjC\:IIO eFt .... ·j!.iml"S 

a~ xpansiv~ as Ihe U.S. Subplln F reg;m~. For ~mnpk'. a Europc-aJl-b~sed ban~ opcrJling 

Ihrou¥l' sul:>:;id iari .. -s tllro"~,,ut Europe Iypically Cantlll...,t th~ capilal nl...,ds of ~11 ofiUi ~winlo\ 

busin<":SSI's by pay;pg dividl~.ds bel ....... en f()!"l.'iJ!.n subsidiari"", or fro", on~ ub id ary in, say, 

Germany HI Ihe par~nl am.llhcl1 back <.lOWI1 IU a subsidimy in. say. Ihc Uniled Kingdom. w;lhoul 

cI'er inc urring home--enunlry la.,. The Lo.-,k-l1lroug h Rule penniB a U.S.·buscd "nuncial 

inslilulion o[l"mling ~ Gem.~~y ~nd d~iril1 g to efficienlly f"l'dcplny e.~ ~~s <."JpilUII<) II U.K. 

ub idiary 10 do 50 in 3 si lllil~r 1113nn~r. 

NOllling w"rtllwhile is 8c",omp\i""ctl b) 5ubjecl,ng fnrci<!JH.,.f",""i~ intercompany di~iru,ntls of 

aclive ~aming.'l to cu.,.,nl U.S. La ~ati"" . and the suppo.c-d be nefit "f~"bjeclin,g olh~r f"",ign-H)" 

fllTCign inlcn:..,mp~ny r~dcpl{> ",cnl s ..,f;j(li~~ eamings h'l eurnm U.S. 1a.~Rlim\ is dllhillus at besl 

and ha~ been rejc'CIcd by Ihe Congress. 11.c Look-Through Rule II>"s represents an impOt1nnl 

Slep in thedirecliOJ' ofpromOling th~ d);tienty lind Cnml"'liliven<'"Ss Ilfthc U.S. economy. anJ is 

3 st"fllh31 e:ln IJ., taken willlmJl d!ling haml t!l uny importunl1M pOlicy bj~"':live . 

Shnnly after lh.., enactment Qftll~ I.ook-Thmugh Rul e in 2006. il lwcumc knOWn Ihnl some lall 

advis<'lr.i anti taXpayl'l"S were con~idering Siructun.o.o; lhal wmJld antmpll0 u!;!: Ih~ rul~ nOl to 

accommodale fQfe'gn·!o-fort'ign dcpl oym~nHi ofthnd~. bul mlher as II me~n s 1o erode the U.S. 

~~~ bas<: willl "''SI'Cct 10 U.S.-so<.',""e ineo"'" and other inw'nc effCl'tively C<')'tll«lctl wilh a U.S. 

IJ"'Jde o r business_ In responiiC. appropriate !echnical COrn.'CI;On. we..., quickly imroducctl in. and 

passed by. IhcCongrds." Trea,ury and Ih~ Service a\~o respOnded pmmplly with 3n ami-ab"", 

nOlice. '~ These mcaSIlMi haw made il clc~r Ih31. ahhm,gh thc LI>l,k-Through Rul e is designed 

10 provide cnnsiderable rlc~ibilily In the reder>lnYll1cnlofaclh'~ fim:ilo\l1 caming.' ahrOPd. Ihe usc 

oflhe pmvision 10 crod~ Ihe U.S. 111 ~ ba:;c wilh rc;p«ll0 U.S. busill~~ s >lCt;vitiC"S will 11m be 

t"lernlcd. PropQl1cnls o flhe Look-l'hrou!;.l1 Rule upport~d IlIcs« 'Hlli-3bu'i<' measur,·s and 

R~nain suppunivc "flhe Io\owmm~"t's anl;·abuse ori~nl~lion in Ihis regard. 

I\llhoug.h il is doublfullhal any sig,nilicam fur1h~'f poIenl;al fOf abuse ex;sls. given Ihal U.S. hIIsc 

erosiim has !>cen prevenlctl, and f<),..,igrl bllSC erosi"n is rig/Illy rccognizi.·d as nOI conSIII"I;ng an 

abuse, il is nmN tll31 the Sl31m" pmvitl<-s 3111nl" r~gulalOry a lllhO,;I)' 10 adllf"l'l\s 311)' 

"nanlicipated ahllscs thai may surfa".. in the [bture. lIa",1I 011 the 1. 00/.;.- l1>rouJ!.h Rule 's hiSI()fy 

, •• 'iN 1'/01"" :OWl .... ""'. 1. Tho ""'i<~' ~I.IO :odJ=, 01 ...... "" .. ",,»iOiIl!i .. Ib, 0 ......... inwt. ;nll "I)".,i .. ~1riAI,""" sod 1iI<-..., 01' ""' ..... :Ir1'in .. ~ '0 qllO tify ",,~""'n'" 0"",,, IMn 'n,.. in'"r=nlrw» POY"""" fbr the 

bo".r, .. ,.r tho< pro' i,~",. 

10 
952 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.895

lu d~tl', th"I'C i~ ~\'cry reason to C;oI:PCCI that any futul'\l.8.huSl"; will he mel "ill! D quid.: ~"d mbusl 

I'<.~PO"sc, wilh Ihc sirong support ofrhe Im,,'y cOlnJl(l1li~ that ~re intcre$ ~d "nly in using the 

Look-'f hmul:h Rule IiiI' it~ illl~nd~"<l purposci, 

VI. LOI'IK-TIIROU(;IIIWLE WOULD Rt: i\lAIN 1,\ ll'ORTANT UNDER A 

TERR ITORIAL IlIVIDF.NIl F.XF.~11'TIO N S¥!.iF.M 

In li!,llli ofpoll9' makers' current imel'l'51 ,nlax reronn, and Ihe series of",ce"t proposals 10 

adopt a terrirorial divid""d e~emption systeMl. it sh.)uld t.., "'!I~d II!" the Look-'!1,muy, Rule 

"ould bt: particularly importlUltto thc opcl>llion of H k'lTilorial dividcnd exemption system. Onc 

orlhe primary <'IT,eicncy gains fmm ol!Dptinj!, a tCn'itr>rial dividend e,,"cmptiOl1 ~yslcm ",ould b.l 

III remO\'e presem-I"w dislOf1ion~ ofcash-mun3gem""t det1~ions by eliminatil1¥ (or 5ignilicamly 

r~ucing) the to.>o: dmg on re<leployments of foreign ~3minss in Ihc Unil£.>\J Slat<'5. Under such a 

sYS!l1n, the look·Throu)!.h Rul,' wuu ld s(''f'Ie a critical funclion uf CllSurin2-lh3t fureign e3miu~ 

tl\ill arC intcnde.J 1o t.., subject to exemption ulldcr tlte uew syst.'1U arc nul. subjcct<"<l1o full U.S. 

\.it;< ~ Ihl'}' are dis1ributed up Ihruu~1 a chain ofCI'Cs_ 11 would m~ke lillie se!1SI' 10 1:0 10 lhe 

dfon of ado pIing a lerritorial ~~sl~m only 10 limil the lerritorial approach 10 tho~ active 

business camin~s Ihal hOPPClllo t.., j>cnt'ffllcd al thl! first tier ofCFCs. 

For Ihis n":l;;OIl. Ih~ Joint Comm;lIc'e ~l:ltrs 2005 pmpO$lIl $Jli.",iti tally emphas;~cd Ihat "'3 ~po."'i31 

n Il,' would provide th~1 no subpart F inclusions would t.., cr.:Sted (IS a di" idend moves up a chain 

ofCI'Cs";n a typical corJllll<ue slrueturt:, iQ order !V UfllSUrc tbat dividC"!)ds ,'Quid be repatrialed 

fmm !o"er' l;cr ('ITs ",ithout losing the \)ener" Qf di,·idcnd e.,emption" and 10 "'Il\ah il "asier 10 

r~oJc pl oyCFC ~'tOmings in diffe""mjuriMlic1ions witl!uullriggerin¥ SUbpl," F, thuS promoting 

nC\ltrJlity 3StO 1he dcdsioll ofho'" to dispow ofCfC clIming." - ' The Intcnmtional Ta ~ 

Refonn Discw;,;lon Draft rekased in October ~011 by W~ys & Mcrul~ Conlll1illtt Chnimlon 

Dave Camp inclnd6 nll~s designed 10 accomplish Ihis result. 

More broadly. aside fronllhe p.~nicular illlportance uflhe Look_Thro ugh Rule in I;'cilirming lhe 

intended opcr:llion ofa dividend e.cmpli,)n system. is~u~", inVOlving th" nat"", and scope of 

S"bp;.m F are l:;S""nli~lI)' simila r under worldwick d"f~rral-hlIwd systems and Icrritori~1 divid~nd 

ex~mp ion sy~ em~. Under either kind orsy~!Cm. spcclnl MIles 31\' Iypically pl\)vjd~d LO ell61lre 

cum:lII, rull·rate ta.")"PIIOIl orpa~lvc ar highly mobile income tlmt mhcrwiM' might casily be 

shilled to tax havens, while althe same time nOI drJgg;ng fOl\'ipl eaming.s from '!Clive bu,iness 

opi..... ion ~ into this 111:1. As the Joint Commim ... • staff obscrVl'1l, "th" d~'Sirabil ty of various 

proposals Ihm Ihe Congrcs.; may wish In consider in lhis area is largely indcpClldenr nfthc 

q"<'Slion ofwh~lhcr tn adopt a dividend CJ<l'fllpti(ll1 s~s!em or 10 "'lain the p"'~nt b ..... 

worldwide , tkferral-bascd 5yslem.",1 The efficiency and cOlllpctili,'cness benefits pruvided Iry 

Ihe Look-Through Rule (With re;p<.'Ct to intCl"CSt. rents. And royalli~'S. in IIddilioll til di vidends) 

would .... '1n~in imponant under a tCTtllarial ~y~tem.:IS WQuid Ihe ":II"i0ll5 conditions and 

"~,,<, /0"" l-"""n,II.., ,,,,T .. ,,,,,,,,. Or<r ,,,, ~ /"''''' ... r"" C>o>.r/I/Nl('(' ",.1 1101""'" rIO. f2",,..,Jim,.u. CS-<.l2~ 

IJOI'_17, 2o()S J, ot 1 Q(/. 'rhr . ullq "' >rlC.~ f'" ,h t, "'1""\ " '10,\0 . ,~,,,,, •• ,, "rio. Jvi'" c on,",;t\, ..... rr, 

"s,,,, "'1"Q •• ' t\lot . 

" 
953 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.896

"'~r;t(;ons impQS<.'tl under (he provisiQn and ("~ rela(oo uidanc~ in oNer (I pro(ec( :I,gains( Ih~ 

crvsion or(he U.S _la ~ baSl:_ 

VII. £.O.l'lCL. l)SION 

The Look· Through Rule ha~ (he. po(en(ial (0 mnovc signilican( otr!l:lcil'S!O (he dlici~n( condm« 

ofbusillcss b) U.S. ,'ompanil-5, (h~rebrconfcrring cOI1sidc'l'llt>lc benc/IIS (0 the U,S, l'l.X)Uumr, 

while c<)"'pro",isinl! no ;"'ponanl ta~ 1")licy !.Ioal!; and p"''''minl; no ~ir CHIiI opponulI;lies ror 

abu"", Unfon unaleiy. onl)' a fmclion oflh~ po(emial """elil from II ~ LOI,k.Through Rule h~s 

""en ~Hliz"d (h\1~ (:lr, d,,<.'IO II id~,prcad COnC~ms about Ihc polenli31 ~pirnl;o" orlhc o, i~ion . 

Th~'SC ro""mls h",e C~\1se\ 1 many omp3nie n rclrain from 11l00lit)ing Ihei, Slnl<:lU'CS 10 make 

!I>eofthe pr()visIOll. for fear Ih~llhe)' m iglll have 1(lI1lQdif)' them 8¥ain at c<)II,i!k-rnblc e~p<H:I<' 

iftt..: provision e~pires . Although these conums have bt'cn 'n'ligatoo 10 >onl" e.,:tell( by Ihc 

recent ~tcn iuns urlh<' pruvisiun, signilicl\ll( unccnainty rem~ill , pn:vl'l1ling ta~p"ycrs from 

"-dli1,ioJ!. the f,,11 bl'ncfil uflhe provision, Much more bc"Cnl w""ld (lCC"'C Ii.> the U,S. ttonullly 

Ihrough Ihe III",,,, "flid,'nt cxp"nsi\,In of U.~,·b='<i busincSSCO'-$Ccking I" "",,"e ,'u5l0Illcrs;n 

nlarh15 around (h~ Im rtd if the Con!!-",S5 wcre 10 mah the Look.Through Rule pc:mlancn( or 

c;l!lend il fM a sij!flilicanllcrm, .. hether in lhe-conlcSt Oflhc pri'scnl·la\\ wl'Irld" ide <ldcrrul· 

based system or under ~ polcntiol terrllorlol di~idcnd ~emplion system. 

12 
954 

Statement of Qualtek Mfg. Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.897

Committee Members, 

I Christopher Fagnant, Oirector of E, for Quallek Mfg Inc. in Colorado 

Springs, Colorado respectfully urge Congress to extend the wind energy 

production tax credit (PTC) as quickly as possible 

The PTC drives billions of dollars in private investment in homegrown 

American wind power each year. I have seen the wind farm near my house 

revitalize my community - bringing in construction jobs at lirs!, and 

maintenance jobs in the long term, and generating revenue for our 

community schools and hospitals over the lifetime 01 the project. 

Increasing Ihe amount or power thai OUt country gels from clean, 

homegrown, affordable resources is an excellent thing lor us to do - and 

this tax credit provides an incentive lor the wind industry to contrnue to do 

jusllhal. 

I urge the committee 10 lake up an eKiension 01 the wind energy production 

tax credit right away. 
955 

Statement of Quida Jacobs 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.898

Quidu Jacob;; 

122/1 M.1rseill~ 

Mi:un; B<~Jth_ FI. JJ 141 

Qlj!l!l!l®~hoo_com 

11e:,rioS lIO Ccnain E~pi rin~ Tax ProvisillflS 

{ am w.-i.ilrg Iv rL'jp«tjully "r'!!~ CQII!;reS'-1O eXlm" lilt! wi"d e'lt!rg .... prodne.lon la.- cr.'{lil {PTCJ 

{IS qllic.IJ' ,0$ po.~~i l>/~_ 

The PTe Jri,-es hilliol!.' of dollars ill priw,'e illw's'melll illll(}lII"pTJIVII A",,,ricIIII .rilld power 

elJc h yeu/", h"'r<'<l$ing Ilw "",,,,,/II UfI'UM-C"llkJl Q,w,"{Jllmry gel_l·j;'om (!.·UII, ho"'~gro"'n, 

ujJiJrdoh!" f\'" ,IIIn"l's is UtI e.u-el/.'ttI Ibi"l;for 'I.,' 10 do- am1 Ihi' I/(t cnvlil pm·ill,·., an 11=111;."1' 

for IIU! II'i'K/III""5Iry 10 t'Qllljlll,r /0 t/"jlls, lhal. 

·llIr,l(e III!' c<"",,,llIl'e 10 Illke "I' 011 e,llemir", ofllw ,,,ilKI ~lIergy P"'1<III<'llml "'~ cr" dil righl 

(n.'a),. 
956 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.899

::";\1'r.I\I.:N1' OF TIlE R&[) CREIlITCOA.Ul'ION 

UIl~ 'rrr r. o t'OK TII £ KECORDOFTllf: II EA. KING O N 

IJU 'UKE 

SELECT 'U.;vENUK MEA.SU 'U':S SUlICQMM ,n·F.E 

CQ.\ l f>1rn ·1!:1!: 0 .'1 WAYS AN I.> MI':ANS 

ON 

A. PR'!- 26.10 12 

Introduc.ion 

The R&D Credit Cooli.i,," weIcOnl~ •• 1l<: ,,!!ponunity .0 pm" decomm~nr5 fOf .he ",,:on.t of.he April 

2b. ~OI 2. Comnlill« "" Ways & Mc",ns. SeI"", R~"~nue Mt'OlSul'C'S Subcommin"" t'CommiU~~~) 

h.arinJ; '0 ( .. miM """n.in eq>iring ''''' rro'isiofIJ.-

'l,~ R&D C",dil C()IIli.;on Ih:lJ\k. Sektt R~"ent>r- M~"'u= SubrornnHttee Chairman Tibtri ""d 

fI.""king Member N~al rot !!ivinll Member. thO' opponunity lu disc"" impun,u" ,ax CXI~nd"" 

prov;sion, .... oh as Int R ..... 1It<:h If:, De,'cluP""'"' (-R&D", I"" orc<li., In oddilion. "" would lil" 10 

'hank Ways &. Me"n. CUI1"nill"" members J{~"in Brady , R·TX) and john La"",n l[}.cn.Or t/..,ir 

l~ad,,'r,;h;1' in $pOnS<>nng. II.R.. 942. legislalion thai would pm, ide a sl"",grhencd Bnd ~m':tn~nl R&O 

,u credit The crflli, npircd on n..."'cmboor 31. 1'. and w" look furwart! N "onlinuing O1J' \\'<»1< "ith 

,hem Itlll/l"3nce a ."..,,1= uJension thai would Si~ U.S. bu<ines«:s the ""nalo,;.' ond ,n",,"I IV<'S Ih<)' 

nc-cd 10 nl"in,ain!tnd in"",,,,,, K&D j<ll>. 10"", in 1100 U.S, 

Tb" R&D Crc<lit COAli.ion i •• &roup of""'''' I""" 100 mlde and pr<>f"",;o",,1 as""'imiun~ and 

h,,,,dn.-d. uf,,,,.11. ",,,dium ""d hors" ro"'pani .... ~at oollecti, .. ,y reprnem millions or Am ... i",." 

worl;cr!l ngaged in U.S.-b ... d .oearch .hrQUllh",,, rnai",. ""","rs orlnt U.S. «Ofttl"'y. i""hldinll 

aerospace. ~ri<: uh",.., . bio.ed",ology. d..,,,,;cal •. ei.'Ctronics. """r!'Y. i"fom,,!!;on lCChoojogy. 

manura".u';n\!. modieal techoolollY. ph.mlucc"tica . rotl,...,.., and .elcC<lmmu"""'t;on~. 

Ahhough dw makc.up oflh< R&D Crcdit C""liti(tn isdi,·crst:'. Ihem~",f:.,re,)I"Pl'n;e •• h ..... ",o.wr 

et.Ju,.eteri".;" "-.,. roll<'ct,,'ety """nd billi!>"" or doll."" annuplly un """'arch and tk,'c!opnwnt, 

"h;':'h pr.)"l<ie!; hlr,h· """l'.e ~nd highly· kill<d jobs In Ihe United Sill',,". Til<: CQf'I'pGnic\' must d""ldo 

"".'" .h,,), are!:oing 1<1 in .... ' Iheir "'''' (''h doll~~hrrc in 'hc US, 0< ab'oad. The hi!:h U.S. 

corpor".e ta~ rate and .he umpora'Y n~.u ... of the U.S. R&D I~x ".od'i. com""red.o tnt lo"'or 

eorpor".e tax ral", and mon: altractlve research fn"entfv...-, One" p<"tm • ...,., •• in mos, Plhrr tk've!oped 

count.I~". are key filCtQr!l that """'I"'nle,; con,ide< in de'cm,ininll """'Ie lhey are goins to "",.I~ R&D 

jobs. 

EVC11 "".fo", tn., U.S. R&D credit e .• pirc'd a, .ho end ~OI J. a com".ny ch"mi"l! 'he credit on ~wragc 
957 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.900

ololy rcali~~" .rr""livc c,..,dil nole e>f6"". I" 1tIld(h,,,,, lhe U.S. r<'qul",d Ihallh" ~nn" 1""1>11\< lu 

clcdUdl<m fur R&D expo"'" be r«I,1C'e<\ by tl\o: amoonl ofa"y I!.&D e.,,<lit. 

Thus.. lhe rail"rc 10 date ofCOf"OI!t"eSIi I" sta",I"",,,ly .~t~nd Ihe R&D lax "",dil, .... "'aclive t"Jam .. ry I. 

~1I1~. wllllik.ly hove a d",m~ k ,m"","1 oln both the "umbe, ~»d Incnli"" of R&D j.ot>s in lhe U.S .. a. 

_ II OS 00 11>0 abilily ofU,S. C{>n'I"'''iesIQ <oml'<'tc eIT«:liv"ly in lho ~Lobal ",arlMpl.c, .. Gi"':n In" 

C",nmiu,,", " focus <m fi»dinS. long"'erm 5Oluti!,m for ta~ eXI~",<le1"$ "Ilhin the COnte~1 la~ ",fo.",. 

the K&D Credit Coalition ul];0:5 C~ 10 pas$ '=gth ... lW and r.,"".n.,." "Tl.'d i! in ,II<! 6h",,· 

r."l'. wi.h • •• am~ ctl1xrlvedp,. '0 e",,,,,, rh~r R~O JO~ ",main he ..... In the U.S. 

l ·h.·I<&1l tax <redil. "");;,,.1 1), e",cIl-d;n 1981. has ~n lUI ;tnponant i"ccnliv< in 'purrin!; privale 

""olor i",''''lrn"m ill in""V",iw "' .... ''''h by "o"'j.,,,ies "r.1I OiL'" and in. v;.r\etyofind"",ic ... 1 ...... 

c,,,",cln,ettl "(Ihis i,\ectu;"c hei",-d "'I~hli.h I"" U.S .... , a Icade. in cut1in);·ool:~ re.o:a",h. In facL 

du.;ng lhe 1980s. the U.S. W~ Ihe lead.ramon., DECO .:ounlrio::; in providing \~C beSI R&D 

i"""'n1iv~< (or romI'Bn''''' 11",",'ever, in ""'~n' )'ear.<.. ","n), o( "ur r"",il!J1 ~ompel;1<J'" ha.e j,,"ilulc-d 

mo", gencrous lll1d <ilkn Il"m'~nc"l R&D i""culi.,C);, A~ B ""uit. the UJ;. luday '1mb 2-1"' in ",,,,, ,,,h 

i"" ... ·nt''''' .. among ind""lri~Ii""d c<",nlri~', 

In cOOI"";II" !l"'_mor< mhu;t ....... nd "",uallyp<·",,,,,,cnl_ inccnliw< "Ire,,-..:! ~y ~ numbct- "ruther 

"()lInlties. !lC.1~"'p<>ra,)' ,,:l1ure "flile U.S. I<&D UI~ ~Tl.'dll ",ok.,., ,I a 1= pl),,~rnrl in,,,,nlil't in Itmw 

ofa compan)"" R&D buJilc\:i ond J""i,;orc' "n ..-he", Ii) kxllle "" .... R&D adiviti ... , ,.he e<>r1Hin'yofa 

<lrenf-th"ned pttmanelll erCilll. especially in a u>; ref",.,,, environmtnt. i~ crilical 10 malllla!nlng U.S. 

leaderthip in ad~3IlUd ",~",h an<! 10 ~""oo"'l!;n& U.S, .,.,,,lpanl,,,, lol ~oruln"" 10 ~p<'nd R&D fun<l< 

he", in 'h~ U.S. 

Tht R&1l o-rt'di, h:ti-a significanl impacl,)o1 pri,"'le R&1l spending, A """,nl ~Iudy by Ihc Ce"lcr for 

An ... ri~an I'r(/j!.res~ c"ncl...Jrllhal. ·l!oe "rcJ;1 is "rr"' i~c in Ii", seniC Ihal etch d,"I., of I"",!!""" lax 

",Wnue eo_ .. busineo<seslo inY,,"1 al least on additional <kI1Iar in R&1l.)·· In ood'I'''''. ""c<>(din~ 10 a 

",cent saidy by EnlSl & Y"Wl~. -In l<>lai. Ih.", ~",11 policy Ih~ ~xis ing rre<lil plu. "1'l'l'!l.lh~nln~ tilt' 

altemall •. ~s.mpliHoJ ~ .... dit i.> eslil1l~tc<110 il1< •• ...., annu;ol privale "-"'Search s".",<lin!l. by SI 5 billiQn 

in th~.no.-t Iom,.nd sn blillon in ~ 1000~ om':ol 

A~ noIOO above. n,any olhcrrOllnlrie. olfer bol/! 10 .... .,. tolrpont'C ,:OX ".1"" ~nd more .urtldiw R&D 

int~nli"e<' Al,<:or<ling!y. Ihe U.S. $hould n<>l l~'PI:~ in .. n ·'eilh~r "'·· <kbale \lilh r<.'Sp<'<.'t 10 lower 

marJ;inal ",ie'S dnd bo<l<li,,~ U_S_ job """Ilion through R&D in<:,'nliws when looking al options 10 

"'for'" ,h. Ccrpo""l~ lol. r<Xlt_ 

r OF.CD, "Scic~. TochoolOJ!.)' nnd Indu"rY Sc"""'ard"· D<-<:<.""b<.-r'2009. p_ 79_ 

, CcnrN rQ( Am~ric,," P~css. ""ho C'or""",lo R&D T'K C",dil and U.S. In""Wlli"" o.nd 

CO"'I"'I;I] vOl1<ss," b)o Laurn1Y"''' and Gr"1'. L",Jen, January lQ12, p.!. 

l En,,1 & Y(>unl;. "'n", R&D C",Jil; An ofl"'<.'lj,'e p<>lioy furprum<l\i!l!l "'''''Hr<h spondinl\,' S<-plembct 

WI I. P. r. , o"Loil1e. '"Glo~al S~rv.y ofR&O Tn In •• nliy .... - July 201 1. 

, 
958 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.901

M,,,,,,,w,.. il i; iml"l"'<'nl I~ nQle IhOi 1M K<'lII) c.wll ls ~ m~il ;U' 70 I'<1'c ... , vf<m!1I 0.1\>11.,., 

~ Wi'll' Ih" ""I"ri, .. "rh;g~ >l;illcJ 11&0 ""ne"", in 1M II.S. TI,e ".tV ,,1><1)" II", >Wtod IMI. "'Ih" 

,~cJil onJ ilj <nW.nl<m..,';" "-,,i"'''«Ilo)i,..,~ ""'tlr<h-rddl«l <!11pl"l' l'I\<"Il' "" I~(}. OOO in ,he 

. 1Ion t,'mI >rid 300.000 in tho lo"g.I .... " ..... 

1"11<" U.s. n\,,,1 ",o;nWin • ~II) ... npelili'. Ia~ !),>i<'" Ilta' 'wpp(lrts 1t;~j,.>lIiII,-.J . h; p:o~ j,\jl Job>. 

h.,... in tIN' II ~ hih,,," ,,,,,,,,,",1 .. ,1)' '''~ ,~" _lit ., "",,,,,.. f" ... 'i~l . _ r.il"", '" 1""","""",1) 

"'''"S,ltC" lit" K&D I .. ,<<<<Ii , "ill "'" cU",,"' j;>/» ill ri.k I>f ",,,, in~ ~. 00Il i<"",,~i,o Ih<' 

.~pend ,u..-o K&U ",,1<1> 1\, Ih. U.S, K.i ... ..-h..,d do"<Io;'I'",-em "ill «O\linu,; Iho qOl<$!iO<1 i, "'It<" 

,,'ill ,hi: KA:lJ j,>!" "" 1"';:lIed, 

Wlti," lho Uni,'" Silt,,,, hlo., "n",.",. on "'1>rI-.gain.. "n:"l'a",~ ,n"""'''1> Ibt m= a,,,,, l5)'O""'- ,h. 

numllo, orOliCU o<,u""k. ntroring >Om" "'" of iflCClt.j", r ... "...,....-<11 It .... gN .. n dnona!ically in 

r"" ... ' )<~ Il< <"""tr'"" ""tlnpt 'o~,~ kdlk"1i In '"","lIl"Cb . lbe I) .S. </"u" <)fgll>hal R&(l full 

1"",,39 pon:cnl in 1m ,,,3l p<."n:cnl in 200,.' In ""di,;'",. Ih. 1i\1I" .. in~ ol:cn ,I\iIn <00.. , (hal in 

2000;, the U~I,.-.l Sl~'''' rtan~ed H 0I:Jli>I1I. ~ inJ"m,.n1cJ .'QIlnlri .. olTmn~ RklJ Ia" in«:!1livo,,' 

OI'CIl.S< ,,",, e~. l''''hool''E,}!",~ InJwn S.·"",t--d !OO<I. Oln), !UO') ·I~j\ :, ~!84!(,.jfl6liJ~ 

T"-~"'\>S'd) ""c r",. US!) I ofM&H. w.!!",rr"".."d SMr..., !I)jl~ 

" llc----------------------------------------------_1 ,· I~=c~--- -------------------------------------_1 

• E.m" 8: V""''M. -no K&D Cred,o: "01 .[(<<,;,< pool;') r'''p'''''l<)Ii"!!-,cso",,," .... "1Ii"" - Sept.",IIo, 

2011.p.ll, 

' OECI)_ Mi""'r:ri~1 Kcl"'" "" 'he O~t.; D II",,,,, .. ,,," Stral<J!Y, Md) 2(}1l), p. 8. 

' OI'.CD. "Sd<no...,. T"r<h"~I,I!t' .,ol l,"'",u)" S<'>m.'UfIl:· D<c~ n"'~ !{lO'}. n. 79. 
959 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.902

" .~enl National Science Boa.d ",\>On ""ndud .. '<1 th~llhe Uniled S!ol~ · lead in .cien", and 

ll'ChllOlol!Y is "rapid ly h.ll1k'ng 1IS R&DjQb5111!d 1»""",1111.&0 spend,nl! continue to 'ncr~Me r .. ter 

""l:lido the U.S. lhan he", UI nome. Tbe "'pOn .hOWS lhal ··belW.~~l 199'1 and 11)09 .. lhe U.s .• h~'" of 

~Iob;ll """,a.ch Mnd de"~lop'ncnl1R&D) drop!'<"d from 38 per<:cnlloJ I I><'=nl . .... he"'M it]!"' .. frQIn 2~ I"'n.:eo, 'u 35 pt'fC~n' in ,hl· Asia r~.g"'n du';nll,h. <&Jne "me'·· 

On a p".'tive nulu, Ihere ,. brood and bipani""" ",,,,,,,n ror ""Icudin.!: Ille eMil. E~el)' Ad,,,i,,i''''''liun 

hat; "'ppuned Ihe 11.&0 lll.' e",dil inc~ il WItS ~"'Clod. In a Ms",h ~UII study. th" 1 r .... sury 

Dcpanmenl 'lOled lh3l, ~[T] .... " yl"~'" a8'~ Ih. p.esidcm .e, ~u .",bil'ous !/.,,.I of ""hie v'''!/. • le.·cI or 

....... 3"'h ,,,,d de,·.lupm""l th:ll i, the highesl sh~", oflhe ec<~~"ny 5illce lhe 'pa'" ",ce orth<: 1960· • • 

3 P<'",cnt "fGDP _ a commitment h<, ","",,,ph .. i,-ed i" hi. S13I. ufllM: Uni"" address in1011 . TI>e 

It&D lax "",dil i • • vital '''''''I""",m "r""hieving lhi. g'''') ."d lpi" us nUI·in"",ale our 

conlPl1ilion. ·mi. ~ why. in add ilion \0 ",a~inll il 1""fT".""ni. II>..· I'"",idcnt p."Il'QIoCII .. . l<l c~pand and 

';mplil}· 11Jc cr~dil. n,,~in); it e .. icr;on!l "'.,'" mlr:lctivc rorbu,inc.'I>'" 10 claim (hiscredil ro. lh"iT 

",:wa.ch in'·~mcnb". This pc"""","1 " ... ,ub,..."q""n.ly induMd in Ihe P,esidcn(·s FY 3013 and FY 

201 3 Budg "I(~)arnl Should ~ pint oHhe ,dorm.,r <>urc-'>q>(Irau, la. 'Y I~n, cU"-"nlly under 

o-oo.idcralion.· .. 

Moreover. Con~. has ~l tll<lcd Ih""",d'114 Ii"",. Mnc~ il ..... a. firsl .<lopl"" in 19&1 . In :Wll. 

S." J1e finance C""lml1'~c.Ch.inn"" M"" Bau"US" T) ~nd Ranking Mcmb.:. Orrin 1131ch (R· UT) 

'nlroduced S.1517. Tho O"'UlIH It~ h OjlJX)l1uoi,i.-s Wilh TjI ~ Hf Jp " ct. SimilMlo ltR.1I42. Ihfs 

k!;islation "ould pr vid~ important "~n"inly f....- U.S.-t.as..-d ,~""~,,,h spending by ma~inll(he R&O 

tax e .... --dil penns''''''I ...... ,,,1I 1lJ; ~impl if lng and slrenglhening ;t. !h<."1'<'by 1Il.:-rea.;ing il cffe(:ti,e""S-$. 

11 i. v)1;llly Import.1nllhal U.s. pollc)" maker.; i uppon a S\fCnl!lheneJ ~nd pCntlG,,,,nl research ~nd 

developm"nl incenlive as pan of any la, ",(onn measure ."d seamlessly ""lend lhe credit .... '"""" a, 

posoiblc. A robUSI and pern'"""OI ",search and dcvelopmon'll\X cred,l 1$ c,ilical10 compe1il'Wncss. 

innoValio" ~d U.S. jobs. In lhe j;lobal economy many COl1lp~nic-s. """e. choice as 10 where ,hey are 

goin]! to do lh";T "'''''arch ........ ''d witll ","ny U1M1" couotri .. olT,-ring bmh lowe. "Orpunl.l~ ioc"",,, tax 

r3t",-an1l mII",robUSI R&D in""nlj"~ ,, Ih~ U.S. ""' $Y$I"m n""" pl"l)",de g,<)boJly COml><'l;,iH R&D 

in""nti","" " UI1 c~n b< ~ounlN un by U.S. btis,ndSC$. The R&D Cn:d;! Coalitlun looks forw· .... d to 

.. "i5ting m"""bers ofll>c Cummine'· and lheir st:lff. 10 lr"in 3 m","" delailed und.",;'andinll oftllO 

~o"'l><'liti ... prcs~ ''''' f~".,.j b)' U.S. cOnlp~"i .. III w"lI .. o(,he 1"eS03.ch and dc,,,lopI,,ell' Iall credi, 

Nn'ional Sci,"".e Found.lliun pres. release. ··N"", It.pOf1 Oullin", r",nds in U.S. Global 

CUmpeli!i""''''''> in $cicnceand TechllOl<>ID-·;· J."""ry 17. ~Oll. 

• ··''''''·.lirlJ{.ilt U.S. Cun."'·lil;' .... '(!$$" 7""" k',;,jil (lf£t.h"',<'ilt811", R~sMr"" ,",.} E.,.fI"~i"H!IlI,,' '" 

(#&£1 TIer C • ."lil . .. U.S. o.,pa<1n1e", oflile Tre",UlY. Ma",~ ~5. 2<111. P"S~ I. 

• 
960 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.903

""d Its impa.' on U,S.jobs. w •• Iso look forwald 10 wurl;i ,,~ '0.,,<'11_ '1I...t .... n< ... It ;,I~'i"" 10) 

' t .mJ .... ly t~,~nd, sIreng,""" anJ ",.kt !"'rtn.Olen! !h.e>II.&D lal< .""'It . 

:~TA CT IN FORMATION, 

T""" lJradSMW 

-167~3Ob 

11.& [) Credit ('",,\ilion 

733 1(1'" Slreel. NW 

SuiI<' 700 

~.h i"1:100 , DC !(l()(J) 

20J·M7 .. ~076 

... 
961 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.904

R/\Dl,,\N 

STATEMENT t"OR Till! R ECOR D 

0 ' 

T F.Rt:SA A. BRYCE 8 AZEMORE 

I'I(ESIIlf:N 'r, 

R A OI AN GUA RANTV I NC. 

F OR THF.I-I F. .\RING O N 

"CUI.TAIN I':XI'II./I III(.> TAX !'RUVISIONS" 

OU' OIU:: 

TilE U.S. H OUSEO" RE ·Rr..s F. ~TATIVES 

COMM IT r EE ON \V A VS & J\1 F.A!'!S 

SUDCOl\olM JTI'U : ON SELECT REVENUE M[AstiRES 

A" RII. 21'1. 2012 

1601 M(\rk~1 Street. Philad"lphia. Pennsyll'flnia 19103 

800.523.1988 crcsu.brycC@radi;ln .b i~. 
962 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.905

Thank you IOf Ihl" opportunily to submll Ihis slatement for Ihl" !"I.·cord. I 3m 

Teres.a Bryce BaU'l11ore. and I mn slIbmining this IC5!imon~ on behalf of Radian 

Guur.lluy Inc. ('"Radian"). one urlhc mllion's leading priv;\Ie mllrtgugc insurers. Pril'ale 

mortgagl!" insurant,; ('"Mr·) is desip1cd 10 he lp promol':' and preserve Ih,:, lradilion of 

hmnoowncr.;hip. while protccting tuxflIIyer.; from dclauh-rel3lcd losse;; on residcllliul first 

mortgages. 

Radian applauds the Suix"Ommil1ee nnd the Committe<: for its leudership on the 

importunt iSSlll' ofta.x c.xtendcrs. Although lhl"Sc provisions an:: tcmporJry in nature, thc} 

arc nonethcle~s ~ criUC:l1 1lSpc(1 of tID( policy. 

We also commend COI1!trcssman Nunes ami Congressman Crowley for their 

intTt"l(luction of H.R. 1018, broadly-supponcd, hipartis.an legislation thai "nuld make 

[lC"fIlHlIICnllh", deduction lor privatc mortgage insur.U1ee premiums Ilhe "priv;lte MI 

deduclion·'). 

In the interim, we strtmgly urge the in1rn~'tIiale and sl';lmless exlcnsilll1 Oflh\' 

pri,'ale "11 deduction. which e~pircd ~ December 3 1,20 II . ~tilthe...., is an 

opponunity 10 Ilddrcss ta.x rolic.y in u lonl.!"tenn and comprehel1si,,: I1ll1lmcr like II.R. 

I 018. l'.~lcnsion of the privm ... MI deduction is important 10 ensuring that Ih ... rc continuc 

to be inCentives ~irncd at stabilizing and strenglhening thc 'Iou sj n~ market, which i, still 

undergoing it frJgile recovery. 

FIlT m:;lny ritll1i!i~s, Ihe must common hurdle 10 humcnwncrship is saving l.'I1ough 

money for (he do"n payment. "TI,e traditiuuall0% down payment is a hardoohip for many 

lind an impossibility for others. Privlltc MJ cnnbles bolTo\\"cr~ wilh less tlrwtl0% down -

Iypicall), lirstlimc and low- and mOdcrnte-income borrowers - to achil'vc the <.In.'3m of 

hOlnC\)wo~rship. 

When II borro"cr places Ie'S Ihan 200/. do"n to purehase II home. the lender is 

required 10 oolain pri"nlC" MI in order Ib r Ihall()lrn 10 boo: eligible to boo: SU bsi:'lucnll)' snld 

to Fannie Mac or Freddic Mac C·lhe GSEs··). Lenders arc willing 10 makc low down 

payment loans. 3nd the GS£s arc wilHn& 10 purehaS<.: Ihem. boo:~ausc 111 Ihe evenl ofa 

hOI11~uwncr" s dctauh on tire mortgage. Ihe privalc Ml C(lmpau) pays the oWl1er nf thc 

loan a claim that is typically ill the amount of15-35~ . ofthc vallll' orlhe loan. 

nlis Ilmount ofM! gel1ernl{yco\"crs eosts a~SQCi3tcd with dcr.1uhed loans (interest 

ch3rges during the delinqucl1t 3nd foreclosure periods, Icgnl r~cS. home mailllenan~c and 

n.'p3ir costs, rC""JI e~t;l t~ brokers' rces. and closing COSIS) and any losses n.·sulting from 

fC.>elJjng Ihe property for I",~s than the oUl5ll1nding. mortg.age loan balance. 

!,Iacing the M I comp~ny's pd"ate capihll at risk in a ·;firstloss·' position af1er thc 

borrowcr's equity me3n5 b01h the insurer I1I1d the bomlwer hal'e a vested iI11L'TCSI in 

making home loan~ th3t are ~Ilord:lble not only at Ih<l lim", of pu~haSt", bUI Ihroughuill 

Ih", yearS ufhomcowncrship. Ilaving Ihdr own capilal al risk also means thm 1110rtgage 

- 2-
963 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.906

inSUR"fS hav.: wry cil"Jr illcemive$ to work with lelldl'rli, inl'cstol'5. and c0l!11ll1mily 

groups 10 help borrowers in defaulT SIll)' inlh.:ir hOlllcs. Also, privmc Ml iSllutomlllicaliy 

c::tI1cckd II·hl'n thc luan rcal'hl"S 18~~ \If the ori gina l humc v;lluc. and private MI may be 

':~lJcclcd "urlicr, iF an lIpprnisal shows l~tth.: loan hM n.:aChhl 80% of the arIginnllloulC 

value. 

Over th~ past four year!., privDlc mongoge insurers hal'e paid approximately $30 

bi!lhm in fureclosure losses Ihat would h~ve luhel"\\'isc lJcen p;lid hy a~f1lIyers, PrivU\c 

mortgage insurers arc projecled to pay approximnlcly S45 to $50 billion in 10lallO co,er 

losses in Ihe currel1l, unprecedented housing downtum. 

The hi~tory of the privott MI industry proves tl1m privllh: 111ortb'llge insurers have 

p.lid tltdr claims thruugh gll\.ld ,Ind b"d l'{:unumk cycles, ·n lis is bt.'causc of the rigorQus, 

co~ntcrcyclical capital and reserve rcquire,"cnts impos,,,d by statc insurl'lllCC 

commissioners. In fac I, half ofcoch premium dollar cantcd goes into 11 contingency 

R'lj' .. rve and gl'lll"rnUy C311not be touched by the mongagc iusurcr for 10 ycars. This 

ensures th3t signiiicani capital reserves are a~eum lat~d during good tim~ 3nd then 

drown upun tu absorb lus.>c ~ during duwntums. 

The private Ml nmdel has stood the test uf ti1111.'. LOQking nl1~'1Id, pril'mc 

mortg~ge in,urers smnd n.:ady tu playa critical role in th.: future ofhuusing fm~UCl' by 

continuiog to saf~ly and sound ly el1al;llc fu-st·timl" and lower income famllie$ 1O purchase 

homes " 'bile protecting ta:q);l),ers from lQ!;ses that result from horrowcr default. Iiousing. 

policies should encouroge the return ofpril'lIte capital to the housing market and maim3in 

II role for low dOll"n paymemlouns as long as they lire prudcmly underwritten and insured 

by privme MI. 

I'KIVATr. l) F. \) UCT ~ 

The privllte MI deduction lIas fil'l;t cllneted in 2006, on a broadly·supported and 

bipa rt isan basis. Under Sce.tiOJ1 163(h) of the Imental Revenue ("ooe ("IR(" ), premiums 

paid Or ~cCt1.led for qu.1lifkd MI by a t:'1J( p<1y~r i.n connCctiOn with acquisitiOn 

indebtedness on u qualified residence uft he taxpayer are trealed a, imcrcstlhllt is 

qualified residencl" intl'N.':'it and thus dcductible. ·nll' amuum nllowabll:' as a dl:'duction i~ 

phased out ratably. 

The private MI deduction "as cn3ek..:i in urder 10 foster homeownership. Anuthl"r 

kcy rcl\lion for th~ lcgjslation " 'US that bwrOI\Crs I\cre cirCtlllll'enting prlI'nte MI , which 

\\'as not tax d~d tl ctibll" by instC'Jd procuring a "p ggyb~ck·· or ~ond 101m, whil"h was 

deductible. to muke up the difference bl"tween Ihe amount thcy werc able to put down and 

the 20% down p<,ymem requin:d for purchase by th~ GS~s. 'The legislation aimed to pui 

Ml premiums on p~r with piggyba~k Joan inh:rCSI. 

Although the Il"gislotion first proposing the rrivntc MI deduction would have 

m3de tltl" pruvision Pl'rnmnent, thl" private MI deduction W3li <"nacted un a temporary 

b~sis, Conscq~t' y. unlike the mortgage interest d~xl c(i n. the private Ml deduction 

regularly expil\'s nnd must be regularly cxtended. The prOl'isiun WHS Ino>l recently 

-3 -
964 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.907

cxlendl'd as pari oflhe Tax Relief. Unemploymem Insurance Rl":luthorization, and Job 

Cro:atiOI1 Act Of20lU (Pub. L. No. 111-312). The pril'ale MI deduetiOIl expired 011 

Oce .. ·mbcr 31, 2011. 

II is "sscnlbl l!;lat the private MI deduction \>c extended. Willi the grm'e state of 

Ihl' housing sector in recl'nl ye~rs.. cxlensiolls of the proviSion have ensured thM there 

continue to be inc'::1l1ives aimed 31 slabil :tin~ and stn:l1gthellin£: the housing mm1:et in a 

responsible way. 111cI"<' remains a n.::cd for the privat" MI d"duetion as th" housing. 

mafi.;ct continues its fragile recovel)'. 

Moreover. thl" privme M I dl"(luelion irnportam ly expands acccss 1(1 

homcowncrship. MI is a critil"U1 Hlclor lor low and moderate income f;lmilics sc.::king IQ 

become hOl1)eo"ner;;. 3S it ~l ,," s borrower;; to qu,tiify fur a mOrlgage wilh less th~n Ihe 

trndition8120% down payment. Maintaining inCerlliVl's for this population ofbormwer;; 

LQ acccss Ihe housing marh·t is eTudallll rt""ducing lhe nation's excess housing invcmory 

and !:"\eilitatlng ~ fujI reeolery o f the hou~il1g !Oafi.;et. Add'Iion3Jiy. the private M I 

deduction efiet:lively prtlvides ~ degree of purity to those. homco" ncr;; whn mu,l rely on 

mOrtgage insurnnc" by offscuing some ofdu.' COSI with thost homl"OIvner.; that h~\ e thc 

mo:-ans 10 make ~ 200/. down payment. ·nlt" phase-out of the private M I deduction ~tso 

U5sures lhe bendit Orlhe deduction acenlt:S til fOIl amlmoocntle illcorne fa milil'S. 

CONClUSION 

In order 10 strengthen the housing m3rkct and provide taxpayer.; with certainty, 

lIe Sirongly urg~ Cong.fCSS to c.xteud the privatc MJ deduction seamlessly and 

expcdil iously. 1-l.R. 1018 is hip;!rtiSlln legislation Ihatwould make lite provisioll 

pc-m13nenl, breaking the l"onstant cycle of cxpirmion and l":tlcnsion. 

Radi,ln gri.'luly upprt"Ciat<.""S the oppomll1ily to submit this statemcnt. We UTe 

ple3scd 10 serve AS a fcsoure .. '\6 the Congress. Ihc COllunill<."e, and the Suocommitll-C un 

these and related mailers. We lOOk Qn~ard III our continued work togcther on Ihese 

irnporlant issu~. 

-, -
965 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.908

RaiiAmerica 

STATEMENTfORTHE AECORD 

JOHN E. GilES 

I'RESiDENT & CEO, RAILAMEAICA, I~c . 

HOUSE WAYS AND MEANS 

SUBCOMMITTEE ON SELECT REVENUE MEASURES 

"HEARING ON CERTAIN E~PIR NG TAX PROVISIONS· 

APRil 26, 2012 

Chairman T1~r . Ranking Member Nul, and disti"r;uishd mfmbe" of the Subcommittee O~ Selea 

Revenue Mea",'e •• thank vou for 11K> opponunlty 10 submit this <Ialemem on b~half olthe california 

Norlhern R.ilroad, a ,hortllne IreiSh! '3ilmad op<',atlns in northern uillornia. 

I ... tve •• Ihe Pre,iden! and CEO of Ra11Ame rka, Inc .. a ,hort line rail.oad holding company Iha! own, 

th .. Califoml. Northern Railro.dand operales 44 OIker >hort line •• ;i'Dad, aero .. the count",. Oll' 

objective 15 10 p{ovlde loal rail fr eight customers wllh .services ~it l facilitate the prompt pic~ up and 

deli..ery of goods. Ou, Roal Is to p,ovide ~ood. elfkien!. economical and safe s .. ryice by dev eloping 

'irons ofe~'ional ,elnlon,hip, wilh c~'tomersand othe, ranroad partners. 

One of the biue" <hallenge, we face ,,,rving ourlaeal customers I. me maintenance of au' p<i"alely 

own~ Inf,.st,ucture. Shorllin0!5wer" created b~ entrepreneu" wl>o purchasKi the marginal Or moo~ 

lOSing line, of large railroads. Much of thi,l' ack would have been ab<ondoned by Itle previOUS owners. 

Fa, sharI lines whicn mu,t make up lor ~ear5 01 deferrKi maintenance by the previous owner •. the 

capital requirements can uceed 30 percent of .nnual ~enue,. 

Real;ling Itlis inl,""ruClure need. in 2004 Cong,e" passed the Shan Une Railroad Tracie Maintenance 

Credil (26 USC 4SGI. Ttll. {fedit help, Ihe privale ",Clo. pre,erve ,.il service and ra il job. b~ allowing us 

to keep more of our COrPDrile .. rnlng, for Inve5tment in infrast,ucture Imp'ovements. 

A greal example of a project afded by the 4SG credit happened on the California Northern Rail,oad 

(CFNR) wh im operates 261 miles oftr"k In northern C.lI li! omi~. In 2008. the CfNR "ad to close .. brfdge 

at Richfield on me nonhern end 01 our line (mile po" Ig2.01) due 10 unsafe <ondilions. The <enler pie" 

that SUPPDrt tho! bridge were eroding beeause ofyNfS of water Ilow alld un settled terrain. 

Train.lhal could ptlwiou,ly use Ihe brldie we re rerouled alon, other lineseau.ln, an Increase in fu el 

u~e and an ;neHieien! ttllffi< now for Ihe customers we serye. With help from the 45G Short line Tax 

Credil, me CFNII was able 10 rebu ild the ba .... of th e bridge allowing lrafficlocroSi without Ihreal of 

bridge collap.e. 

, 
966 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.909

This bridge repl~cem nt cosl $400,000 and of Ih~t, approximately $200,000 w~"l 10 c,"atins Or 

preser"lling well. paving ra ilroad construction jobs. 

The 45G short line ta. credit exp"ed On December 31,2011 and has yet to be extended. Manv of the 

over 550 ;horllin~ and regional ra ilroads o«oss lhe country ar~ puUlng important in ra~tructure 

projects on hold because this credit h.s not been ntended. When infrastructure needs ~re not met, It 

creates challenges for us to serve Our ulsting customers and attract new cu~tomers to our lines. 

RaiiAmerica appreciates the tlard wor~ done bv the Way. & Means Comm;nee and your dedication to 

redudng w.steful spending by ex.mining these expiring Or "xpired credit. indiyidually. A. 01 May 10. 

2012,255 Members of the House of Representatives haye cosponsored H.R. 721, the stand alone 

legislation that would extend 4SG put forth by Repr",entatlve. Jenkins, Blumenauer, Shu.ter, and 

Costello. The Senate companion bill, S. 672, has 47 Sf!nators as cosponsors. 

The support lor th is ta. credit is dll/icult to Igno re. I believe Ihal this inllialive draws a broad base of 

support not be.:ause it helps short line railroads. but ,alher beuuse illowe .. the federal ta x burden on 

small 'reieht railroads to enable those r3ilroads to Invest in infr~stfu<tu e Ihat provides strong public 

transportation benefits to the people of the Unlled States. I urge you to inClude the 45G short line 

".il.oad track maIntenance credit in any u. e.tenders bill that is brought up this year. 

Iloo~ forward to wor~ inB closely with members 01 this distinguished committee and your collugues on 

the e.tension of the 4SG short line r~ilroad track ma intenance credit. 

, 
967 

Statement of Raymond Randall 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.910

Mav9,2011 

Vou Aep.e<enlative, h.v~ wasted au. monev on laX uedits and olhe. glv~ awav, to the wind energv 

1ndu"ry 10' too lo"g. The time h •• come to find out 11 the wind Ind u5try oan <land on its own. If It 

cannot then it will prove Ihal wind gene"" ion is neilher economica l nor dependable. 

It Il already known that wind gene.allon has neen ~nab e to lho,", ."y sub,lanllal ben~fillo' polluHo~ 

and Ci'OOn reduClion~ or eVen i signifiCitnt contribution to energy production, Meanwhile Iho.\e 

indumlal projects ha~e seriouslv degraded ou' limited nalural e/lvlronm, nts. 

We suonglv urge Ihal you end all forms ollederal support lor industrial wind energy, 

Raymond f.. R.ndall 

LYM L. Randa ll 

76~ Soulh 3" 

Union, OR 97883 

Phone: S41-S6Z·S0Z8 
968 

Statement of Rebecca Tippens 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.911

Name,:Rebecca Tippens 

Organization (if applicable): 

Address: 68 Van Nuys Rd - colrain, MA 01340 

Phone Number: 413-624-5140 

Contact E-mail Address:rebecC3_ lippens@yahoo.com 

Title of Hearing:Hea ring on Certain Expiring Tax ProvisionsIt is critical that the wind energy tax production credit be extended. 

I am writing from the point of view of a living in a community of 

poten tial buyers orthese turbines - that we would LIKE to see 

continued to be produced in this cou ntry. 

We all know about the dangers of ca rbon and global warming; we 

need to find sources that will not furtherly pollute our air. Wind 

energy is one ofthose. HOWEVER, whether or not to continue 

production and bring big turbines into a community is a big decision 

for it to make. 

Most of the development in wind of course is going in rural 

communities. Its zoning boards are made up of loeal volunteers who 

deeply care about their community but understanding possible 

repercussions to bringing in new sources of energy take time. And 

those orus living in rural communities have a sense of right pacing in 

their lives. And want to do their work carefully. 

The problem in our government is that legislation ;s pushed through 

so quickly because of the nature of our election system: gatta get tbis 

done because the next cycle is appearing and that makes for short 

circuited discussions and sloppy work. 

We need the extension of the tax break because wind sellers arc 

pressuring us to buy NOW before we have done our homework fully 

and that has meant a lot of work to decide whether or not to bri ng 

this fm'm of energy to our rural county. People are not going to want 

to give up on their tradition of doi ng good and careful work and it will 

take at least another year or two for folks to work through the 

repercussions of these possibilities and alternatives. There is a lot of 

NIMBY stuff as well as real issues to consider. We would like to 
969 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.912

continue the consideration without the outside deadline of having to 

make a decision before the tax credits end. There is a lot at stake here 

and lots of potential markets if yOll had a sense how the process of 

decision-making works in rural communities. And that it takes tim ~ 

(or us to decide whether or hot to buy. 

It would help tremendously to give folks time to work and talk things 

through carefully rather than in a desperate and clutched manner. 

Please extend the tax credit that we might go forth with exploring 

renewable sou rces that are affordable in a community-minded, 

respectful way ..... . 
970 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.913

R

~ EBUILD 

AMERICA'S 

SCHOOLS 

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Com",it, .. un WI", lind Mean. 

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lI ... ringon 

Cel1 ol" b plrlng Tu Pro, isla" , 

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Chlr,nan Tiberi ami ~m h.· "" .. rthe SulKommitl .... ' 

RtDtiild AmtriCll's Sci",,,,,, ~ ""i<>n:tl """Iitio". i. wril;nll III ""~ our 

'''w<m f\l1" the e".rumn "rthe Quolilicd Z .. ~ m)' Kon~ (QlAB) .. 

.... 11 •• th. QvMliri<'d School C""!lrUCtio!> Hond prognoms. QlAlb """"ted in 

the K~p"y.r Relief Act of 1'I<l7 and extc"l>ded ",·ith bipani""" S<t1'flOl1 in 

foIjb.<tq~nt CQI1W">S<$~IIQ" ..,hool. di,lri.;1lto modc-miu scllO<ll radlili..s 

~nill<I impru,e "~rT;"ulum, QlAll$ """ ~ cOS\.n,-"""I;',, progr .... m bei~ IlSCd by 

5Chool districls in e,-eryMal. to reOO'''le. repai' .nd modernize 5<:hool 

t.ujl ding$.,.,d class-,oo" ... s.:hool disltic .. in Miehis"". Ohio. T.~ CalifOrnia 

~nd c,..,.,. st.t< from M.ine!O \Oridll\oA~k. and II.".-aii ha"e .... <1 QlAlh 

to mild~ i~ classrooms and .. 1I<lo1 ~ 'The foJ;,rall:l' "",di\sjl'I'QviMd 10 

finn',,1' Q7..A1ls u,,· a small f".lel'll] in,· ... tm.nt impm"int.: Am"';",'. schonl 

faci lilie, ... here >Iudenl. c~n hello, succec-d. Kobuild An",';':. Sd",..,I. al"" 

"'If'fl'On< thee.toM;"', "ftne Qualific-d School Cnnl1""'1;"" ilond progrt"" 

which h., bI:, .. fit~ local scilOOl districts in forty."i"" states. 

QZAfI. and QSCIl. arc helping ,.,hi><>1 <liSiricts pro,;de ","<lom. mn", e,\n!O" 

ellicient. W""" and t.:t",r sd><,)(lls. in'l"'O"inlllhc le.mint.: on,ironmfm1 f<!r 

' tudenlS and enha>1<'ins th< wori<pl:.ce fOr SlII<kmt .. teachers and .uoff. Equally 

imJl'1l"UlIl. I""aljobs ~re &''''''''100 IS mQ<i"m .. hoot. ad,'",,,. t'ud~1\1 

.<hi<'"emr"l in urhln. TUJllI and wbu ..... " cnl1\muni!ir~ in '.""1) MAle. 

Rebuild A"wrira·~ Schools ",ks Ih.llhc Oualirlelll.or.c Acad<:,ny no"d. nml 

Qu.lilird School COIISlrIICtifln nond. '''PP'lI"tinll ,.,hool mildon';'''tion aoo jol> 

."""ion r.., itldude<l :unn~ "l' "xlenlion P"l,·i.;OI,. considcffd by II", floo ... 

W~ys and Mean. Com",i!!"" !his y=_ 

Itet>uild Anleri",·s Schools appreci.tes 1M Cornll"!!CO·S con!ider.ttjon of 'It<...:e 

<:(1111""'''1>. 
971 

Statement of Reinhard Manfred Klaass 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.914

USA Needs a PLAN for Energy Independence 

As an Aerospace Engineer I worked 0/1 a Solar Dynamic electric power 

generation system in conjunction with Sandia National Lab during the last energy 

crisis, the 1970 oil embargo, We developed a small automotive size gas turbine 

engine that used solar power as the heat source to drive a generator and create 

25 kilowatts of 'free' energy. As soon as the ad embargo was over all 

government funding ceased. Had we continued this development we would have 

a lot more alternative, zero emission power generation in the country. 

Let's not keep repeating mistakes of the past, let's generate a master plan for 

energy independence including nuclear, wind, and solar energy; in addition to 

natural gas and coal. 

I urge the House Ways and Means CommiHee to extend the wind energy 

production tax credit to keep this cnlicallechnology moving forward, remain an 

important part of an energy independence plan, and help increase jobs and boost 

our anemic economy. 

Respectlully, 

Reinhard Manfred Klaass 

1252 W 1870 North 

Provo, UT 84604 

(801) 400-4389 
972 

Statement of Reserve Energy Exploration Company 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.915

April 24. 2012 

United Shtes Congress 

Ways and MullS 

Dear Members 01 Cong""" 

My !'ame i.j~me. Haas and I am the Develo pment Director fo r R .. ser; .. £nerl!V uploralion Comp~ny 

Reserv~ ) located at 101.55 Gon"nal~ Par~w y, Suite One, Cnag,;n ~alls, OH. ~e..,r;e has be .. n in the 

wind Industry '0' ove, ~even Y"~" and)s in the p,oce .. 01 developing flve (5) uillity ",,"'e wind fa,,,,, 

loca' ed In Onio. Michigan and "lew ¥ork. 

AS you know, it you have not Slatled physica l rnnstrucHon of .. project prior to Ja nu .. ,v 1, 2012. the ~TC 

ha, e"entlallv expi",d. Therelore, w'~h Ih" lIue,tlon, su,roundi"ll the PTC, Ihe.wlnd Industry has, In mv 

opinion, corn .. to a standstill (Ih", P.oj""ls Ihat have qua lified for Ihe PTe o. ITC ..... rnoving ahead an d 

b,,'ng built oUl ln acco.dance with Ihei' plans). Howeve •• dev .. lopers, investo", lI[illlie 5, and olhe .. 

have stopped or slowed downllfowlh plallS untlt the.e ts"somecerla inty SU(founding Ihe Industry. 

I wonsly urge you 10 e~lend Ihe PTC 50 this enlire industl"'/ and the domestic ally produced enersv 

Kluree do nOlju,! di e On the Vine. 

I have not pUllhi, len er on letterhead a' I w," ..... d to submit the dOClJmenl vi;. word fo.mat. Pleas", 

contact me ~1 440.543.071011 you may have inV Questions Or need additional tnformation, 

Thank youl 

Slnce rely, 

RESERVE ENERGY EXPLORATION COMPANY 

J,m Haa, 

Oev~lopment Directo' 
973 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.916

Statement of the Residential Energy Efficient Tax Credit IndlJstry Coalition 

before the 

SlJbcommittee on Select Re'lenue Measures 

Commfttee or) Ways and Means 

United States House of Representali'les 

00 

"Member Proposals Related to Cettain Tax Pro'lisions ThaI 

Either Expired in 2011 or Will Expire in 2012" 

April 26, 2012 

, 8 .. .,"'_ "," '" ""1<1_.'" " •• 
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As the trade anoc,ation~ representill6 manulacturer~, distributors, retailers, remodeler~, 

installers and contractors bringing ene rgy-efficient products to homeowner5, we are 5eeking 

the restoration and extension of the residential energy efficiency !25C) tax credit. The 

residential energy elficlency tax credit was dra.tlcally reduced at the end of 1010' and e.pired 

at the end 012011. Out member companies actively promoted and their customers benefited 

from the higher tax credit levels thaI Wete in place ftom 2009 to 2010, sustaining jobs in Our 

Industries during the otherwise dire new home and retrofit constructfon downturn. Private 

re5id"ntial investment wa5 2.5 percent of g,OS5 domestic product for tI,,, fourth quarter of 

2011, well belOW it. historical average of S percent. Many of the products that qualify for the 

25C tax credit are manufactured-and also installed-in AmeJlea. unlike alternative energy 

sources that have beflefited Irom other federallncentiyes. 

We are seeklfll a robust energy effkleflCV tu credit for qualified products, as outlined below, 

of 10 percent of the purchase price up to $1,000. We beliew Ihat a $1.000 ta~ credit is 

generally the minimum inCenliYe needed to motivate consumers to improve Iheir homes by 

pureh"sinll these hlgher-performinll products, and to do so in ,ilable enough numbers to 

positively influence residentia l energy wnsumption. 

We are seekiflH a uniform ~a x oedit acro~~ mos~ product calellorie5 10 minimize con,umer 

confusion. include labor (0~t5 for all qu~lffylnH prod~ct~ ~nd m~ tain consumer choke in Ihe 

improvemen~ t~ey wisl'110 make in tl'1eir homes. 

Eco~mi, Iml!act !!! the EnerllYJ!l~ Cred't 

Using the 2009 IRS tax data, we can demonstrate that the net economic impacts of the 2SC tax 

credit prosrams from ii remodeling perspective are slSnifiCiint !se11lne aside the lons·run 

enel"ll\( efnciency benefits for homeowners). 

With respect to the 2SC credit lor energy-efficient remodeling of existing homes. the IRS data 

Indicate a total of 525.1 billion of qualified expenditures Ifl 2009. OVerall, In 2009 ta~payers 

claimed nearlV 55.9 billion in lSC and 2S0 tax credits. For the two tax ttedlts combined, 93 

ptorct>nt 0/ rOlf crt>dit clo/ml Wert> mode by rOlfpOY" rs who have on adjustH IIrass incomf' of 

no more than $200,000. which is indicative of a middle cia" tax program. 

Because the tax credit in 2009 was limited to $1.500 per taxpayer. not all of this activity 

lIeflerated laK credits. In tict, accordiflg to the IRS data. just a Uttle more Ihan 71 percent of 

these costs ($5.404 billion vetsus potential $7.539 billion) were allowed in the 25C calculation 

due to the $1,SOO limit. Moreover, due \0 other tax rules, only $5.172 billion of the $S.404 

billion were alloWi!d as real fled 2SC tax credits. 

The followiflg chart plots new home sales (left axis) and total remodeling expenditures !right 

axis). The data indicate that remodeling expenditures fared bener over Ihe 2008 through 2011 

I " ~lId. Uo"mJ>k>ym",,' In.u,.", ~ ~ •• i>ofll8'1"". and Job e,c.'''''' ... ,1 '" 2010, 5« .. 710. e,"dil lm 

Noobu,,,,,,,, l"""1ff Ptg~". 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.918

period than new home sales. The tax cr~lt program provided a floor on remodeling activity, 

which has declined only 32 percent since its peak compared to 76 percent for new home sales. 

New Home Sales and Remodeling 

1.,", SIIIt},1lO(I 

$160.Il00 i 

SI~ OOO " ~ 

,OMOO ! , 100.000 I ' 80.fIXI .} 

S60.000 ! 

• j $10.00II , 

The lirst ponion of the Be credil usage is related to energy·efficient building envelope 

improvements, with 13 percent of Ihe 2SC claims associated with Insulation, 34 percent with 

windows and s~ylights, 9 percent with doors and another 9 percent with qualified roofing 

materialS. The.second part of the credit dealt with ene'gy·sav[ng appliance Installation, with 16 

percent of the total 2SC claims connected to qualified heat pumps, air conditioners. water 

healers and stoves; 17 percent with qualified natural 8as, propane, oil furnaces or hot water 

boilers; 3 percent with advanced main air Circulating fans llsed with a natural gas, propane Or 

oil furnace. 

The National Association of Home Builders has developed an economic impact model that 

en~bles estimating total emplovment and economi C" income Impacts from home building and 

remodeling.

1 rhe model u~d Bureau of Economic Analysis (BEA) data and BEA input-output 

tables \0 generate economic impacts by sector. The following table presents Ihe impacts that 

result from $100,000 01 remodeling iictivily. 

l Mp://wwo.' .nohb ,""l ""I"it :»J« """' "' .4 i<' "'; ~·"'I ,," 'lLl = 1 Ql$H &<twl1'rllU" 3 1 t 

11", Dj"",( it" (>;,<' "ftt'. n< Uui lJ,"g."d """><t.lir ~ ,., ,tor: J. . ""","""). NAIIIII,,,,,,, .... k •. 

, 
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The jobs arlO measured on a full-timlO equivalent (rTEt basIs. Thus, NAH8 estimate~ that every 

$100.000 of remodeling activitY creates 1.11 jobs on an FTE bnis. 48.6 percenl of those jobs 

are In the construction and remodeling sector. 

Income an d 'm o menllm aca 0 Rem od,. "" on t h e U.S. Econom 

Number of Wage5 

Full·time ,,' ProprIetors' Corporate Tot al 

Jobs $alarie5 Income Profits in(ome 

$.100,000 5 nf on Remodelln 

Allindust. ln 1.11 $52,709 $13,810 $16,147 $82,667 

Construction 0 .54 $25,s7l $6,601 $4,232 $36,406 

Manufacturi 0 .18 $8,U6 $'" $4529 U,489 

Wholesale and retail, 

Transportation jnd 

warehousing 0.16 $6,432 "" $2,307 $9,588 

FInance and insurance 0.Q1 $1,487 $71 $1,459 53,017 

Real eslale and rental and 

leasln 0,01 5315 $1,652 $7" $2,725 

Professional, Mana8ement, 

administrative !;l'rvices O.U $6.970 $1,191 $764 $9,924 

Other services 0." $3,797 $1,623 $2,09S $7,51S 

Source. NAHB eS/Jmales, based primortly on r/le doro from r/le u.s. Bureau of Economic 

Analysis. 

Putting all the data tORether, the IRS data and tne NAHS economic Impact model Indicate that 

for 2009, a [otal of 27S,610 IlIlI-tim" jobs we re in con'loction wi th the 25C credit. 135,540 of 

Ihese jobs were In the constructlon and remodeling sectors. The program supported 

approximalely $13.2 billio'l ln wage.s 101 tl1ese wor~ers 31'd $7.5 billion i(l (lei busi(len income. 

Conc!!!sion 

The p(osram has created and preserved America jobs and promoted energy efficiency bv 

helpIng owners of existing homes afford ~igher dficlency wi(ldows, doors, HVAC systems, hot 

water h~ate.rs, roofing and insulation. We are deeply conce.rned that the loss of this incentive 

before the hOUSIng market recovers would lead to substantial Job losses. 

The reSIdentIal energy efficiency lax credit has broad support across the remodeling and 

retrofit marke t. A total of 34 businesses and associations sent a leiter in December 2011 to the 

Committee Ofl Ways and Means supporting a robust extension at the 2SC tax credit, knowi(lg 

Ihe Sl.OOO level would effectivelv leverage consumer activity and job preservation. A copy of 

the letter;s Included in Ihe appendix of lhls statement. 

As the Committee on Ways and Means eYaluates the m"rits of the 2SC tax credil, the data 

Illustrates the prOSfam has had a powerful and positive impact on emplovment and extending 

the incentives until tllf housing market lurther nablliles will ptotect American Jobs. 

, 
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~poning Industry Associations 

Air CondItioning Contractors of America 

Air-CondItIonIng, HeatIng and Re frigeratIon 'nstitute 

Asphalt RoofIng Manufacturers Association 

InsulatIon Contractors AssocIatIon of America 

Heating, Air Conditioning & Refrigeration Dist ributors International 

Metal Contractors Association 

National Association of Home Builders 

National Association of the Remodeling Industry 

N atio nal Electrical Manufacturers A~soci tion 

N ationa l Lumber & Building Material Dealers Association 

Nation .. 1 Roofing Contractors Assodatlon 

New Engl .. nd Fuel Instltute 

Oilheat M .. nufacture rs Association 

Plumbing-Heating-Coollng Contractors-Nat Ional Association 

Petroleum Marketers Association of America 

Retail Industry Leaders Associ .. tion 

Roof Coatings Manufacturers ASSOciation 

Spray Polyurethane Fo .. m Alliance 

Tile Roofing Institute 

Window & Door Manufacturers Assocl .. tion 

for More Information Contact 

Ben Gan n 

Director of Legislative Affairs, Window & Door M .mufacturers AssociatIon 

(202) 367-2346 

bgann@wdma.com 

" 
978 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.921

Appendix 

Residential Energy Efficient Tax Credit Industry Coalition 

D~mb<'r &. 201 1 

Th~ Honorable John Bochner 

S~akcr Drthc Ilou:\C 

H.'232. Unil~d Slales Cap;tol 

W8~hinglon. D.C. 20515 

The Honbmble Da,'c Camp 

Cha;nnan. Commi"e~ on Ways & McarlS 

1102 Lon!!,worlh Homl: Ofli~e Building 

W~shingl0n. D.C.10515 

Ill" Honorable Nlncy Pelosi 

IIDU>C MinorilY !.eadcr 

11-20J. UnilcJ SIa1C$ Capilol 

Washillglon. O.c. 2051 5 

Th,' Honorable Samll:r Lnin 

Ran ;n~ Memb<'r. Commil1ec on Ways & eans 

113<jE.lill1~worth House Oflicc Building 

Wa,hinglon. D.C. 205 15 

Dcar Speaker Bochner. Leader Pelos;. Cha irman Camp lind Ranking Meil,ber Levin: 

A$l'Qlnp..n;c& and associatiol\S I\:pr.:sl'nl;nll manufaclurers. r<:llIilcrs. builders ~"d contl1lCIOrs in 

Ihe housi ng and ",~idc ia l ~"~rgy ""mfil inJu51ry, "e"", writing to urge yow 5Upport for an 

c.xlctlsioll al the 5 1.000 levd tor ~ "'side-mial energy efficiency 125(') la_~ credit ""I to expi", at 

lhc end ofthc year. The 250 111X credit crealCS ami puscrws i\mcricanjob. and promotes energy 

efficiency by helping O',r\i:rs ofexi51ing homt'S a!Tord highcrcffic icncy wimlo'oVs. doon;. HVA( 

sys Cl1l~. hOI Water hl'~lcrs. rooling and nsul~tion. We au deeply conl'eml:<.llh~llhe lus~ Of lhis 

inc<'nlh'e before lhe housing ntarket n.~owrs "oul<.llcad 10 $Ubslanli~ljob o~s::s. 

Residential relllooding:lCtivity §ptlm:J by tlte 25C ta~ c",dil ill 2009 ~11d 2010 was critica l to 

maintaini ng our <'Conom;c vilalily. III 2009, Inl~nJ'll Revenue Service dat., indkale~ American 

t3l'p")ers reported sp<.'nding :&25.1 billion on remodeling COSI, a,>l>Ciat.>d "ith lt~ tn~ c",dit. 

MOl'<'Over. the program ~uppontd 278.(110 jobs (13S 0 Qf"hich were in the c(Ktstrucliol1 and 

"'nloo<'lil\l; :\CctON). appr01<inl3lely $13.2 billi.)n in ,,-ag<i and $7,~ billion in ""I busini'ss 

incont~ aCCQ rJing W analysis b)' the National A$$OCialioll of t lume Builders. h addition. 25(' is 

lruly a middle-elM tas "",dil. In 2009, OVer tW(>-lhirds oflhe households dain'ing the ~redil 

had adju, J gross im:Qml' QfS1OO.OOO Or less. 

Funher. privnte rc~idcnt;al il\"cstm~ ll as a pere"nt of grw.;5 dOlllest;c producl foel pontller record 

low of2.J pcreell~in lhe lhird qUDnerof2<III- ill c"mpari~}n 1<l ilS hj,luric 3'"milc of 

approximalely S ~"cn1. The 25C laX c"dil hns' providcd a n,'Cd~d OMr on ",modeling activity. 

de","n;og 32% sin,,, its peak l'Olnr."",d to 76% for I'C" Il!'Imc >/lIe .... It crcatcsJabs and i:N:IICfi ls 

home(]wnen; by reducing Iheir clterg)' UM:, I(>werin~ their energy bills and impfl)\'in!; their 

homes. 

As";n, we urge ~OUl support for a robuSl c-~len~ion oflh~ 25C laX credil. knowing ttt.: SI.OIK) 

ICI'<' i "ould en<'-."t;,·cly ICI'cm!!c consumer activit) n.:t job p .... ·S\!rv:ltion. We bclie,'c Ihal1he 

pmgrdm tub had a pil,,-erful and poslti'" imp~ct 1m tmplo~menl aJld t:J(lcnd n~ lhe inccnli~es 

until 1M housin!!.omr~cl ru"l~r ~bili~s "ill protect Amcricunjobs. 

, 
979 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.922

"hank )00 for yoor considcrnlion. We look rorw:;mllO wor~ing wilh you 10 i"dude all ,-xlell5ion 

9rlhe 1l'5idcnlial coer!!y ~m~icncy cll'dil in lax k·gi:;lalion I.>c 01"~ Ihe "nd oflh,' year_ 

Sincerely. 

Air COlldilionin!! Conll':.Iclors of Amcrica 

Air-Condilioning.llchling and Rcfrigerntion InSI;tU!e 

And«scn C<lrpcll'Jtion 

A,O.Smilh 

Asphalt Roofing Manufaclurcrs A>$OCialion 

Champion Wirnklw f..'lanufactoring Comp'lny' 

Cllu'ltil ofNprth AmcriC';ln Tns<i!;,t;nn Manufacturers I\.SSoclOlion 

Fortune I lome and Security 

GunrdiM Industries 

Hl':Jling. Air Conditioning & Re frigeration Di,miblllol'l' Imcm31ional 

The I rome Dcpvl. Inc. 

Ingcrsoll Rand 

In ~ulali n Contmetors A"ocimion of AOlcrie9 

JELO-WEN, inc. 

nno~ Intcnmli n~l. Inc. 

l..o"c·"Companid., In<:. 

NmiOMl '\ SSoc islion of om~ Buil<lcr.; 

National !\.. ocimiot, orManutitctuft."ry 

Nutipnul As:;ocialiPIl of the Rcmodeling InduStry 

National ElcclriCllI Manuf~clurcrs Associaiiol1 

National Lumber ,,nd Building Material DcalL-rs Asweial;,'" 

Natiollal RoofinS ContrJctors Associmion 

New Englu,\d FueilnstilU1C 

Pdla Corpoml;un 

Pe1roteum Marketcrs Association uf Amt:r;ca 

Plumbio!!-llcll1iog-Cooling COlllrnctol"lf--Nulioll:!1 AsS(Xi3tiol1 

Rc);at Bcluil 

1{~lait Industry Lc3d~rs As;uci~tiol1 

Rl1c~m Manufatturil1g.Conlpnny 

RI)QfCo.11inWl /I.1 ano fa>:turt"rs Associatiun 

Spray lylllt"than~ room Aitia""", 

-rile Roofing InsiiHlle 

United ~h"ologiC"5 Corporotion 

Wind" ,,· and DoOr Manuf.'lClUrcrs As:;ociation 

ec: Hou~c Comminc~ on Wuys and ,\jeans member.; 
980 

Statement of Retail Industry Leaders Association 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.923

1\"';1211,2(/12 

'I h. 1I(IIIOI'Uhlc 1';II1it.:n 

Cbllinrutrl 

S"b<"mnl;1!e\O "n Sci"", R ... ,..n,,,, M.""""", 

C""'m;lle<: on Wop ""J Me"", 

U,S, J 10\>'" orJkl''''';CIlI~'il '''' 

Wa,h[ngl<lll, IX' lO~ 5 

ihrCl\:lirm;on Till ... '; and K.n~in~ M,,,,,b<r N<al; 

'no: IJ''IIIJI'IIbk Rid,,", N ... I 

K""I:.iIl~ Mtmt...,. 

SuOC"",mil1<,'" Il'I Sd<:<:1I{<,"~"'" MC".~""i 

Commi"e<: ,., )~.nd M' .. ~ 

U.s. ll ou~<.'rKCf""""fU"liw" 

\\'l$hin.l!'''''' DC 20~1~ 

On boll41r M Ih ... K<tlIil Intl,,-,, <y i.ca<lor< II""",iruion JKIIA I, Ih:ont you (or ht'lding !hi> h<>riO\!! 

o"d 1"""-kli'Il.}'"",,,,U,,,,gu,,,, "nd Ih,> ",obi;'; "i,h ,he ''III'I,""n;1) Ifl,h.", 'hd, ~,<,i,"'li 

"''gIIrdin~~xpir''''''' '''>oo 10 "'~l'ilO 1I«"'i.'i"", in Ill< Inlnnol 110\","" Cudc(C<><l<J, 

U)' wI\.' ufbaollgn}und, KtlA i> 111< 1I1I,k ",,;."'i"~'" ',f'he "»rid'$ ~ .. , orkl'"I)SI 'n'M"";'. 

M.il comll"nk., RII.A (lfO""~"" ""''''""''', cll"icc and .~"".nio In.,,,,,,",, 'hm"~h puhlic 1'I.li,,) 

.nd indu)!!) "1,,""1'<><131 <"1>t<lI""",.., II> ",t"lnb<.,-.;-i""I".k "" ...... d,iln l00", ... i""" "",JII<'I 

m",lUfllC\u"' .... ""d """k< $"l'I'li.'I'>' \\ hiell '~g,"Il"" "''<:mIn' fill' """" 1!wI S I.5 ";Ili",, in 

""" .. I "'los. lIIilliooos 1>1' Amerio.., jaM .,><1 '""'" ""'" I OCl,tIOO R<>mi, 'nallolaclUril\l! l:.cilil;'; 

.00 di>lribu'ioo «m.flI d;""'"";oall)' .,..j """"'d, 

~ 3,,,,..,.1, RI LA $01'fX'I'Ij 'a" ""Iici<''' ,hal \\il! \m "W" Ib< bu"""", dim.'" n".'"'I:lil",,,. I>oo.h 

<lon''''''ic~lly "nd inll'f""i"nall)', !»' "Ip'", !1I\.111 ,,, .""Ie j<>M. in'~' in oIIi«,,.,"\!') , ""d Or'''1 

fIli'''''C,"IIpc!ili't •• 1"" Ii> IInomc"" C""U""Yl<, n.c", a,': mall) i."",,",,,,1 inl!."'~\;''fI'' I" a 

u<c~,,<I'uI "', »."..., lhill "in :l<:C""'plis/J ""-""~ ;- hul, in Ihi •• lalc,n;!nl, "e "ill f,-",u; 00 

pr"""" ... e" ;IIId~ li\1 aflil<'-C,'<I/I_ 

II,..;"""" ''~ Il''}'<flI bi."",illl1" .. dy r<l~n a Ill' I.w ,hal ~'Ui~I< MId I'f"<iicl.blo , o.w 'he ~ 

I"" dc.:1kk:).. J(;v ..... ot" pro.;~K,, ~ h.,. b<:<cn . tkIo.'tlIO lhe. Code. "'"n) "en ;"I,,,,de.! Illti 

.chi", in3 Ih<ir I"'rtiCIJI.r omp IO)"wnl. i~' «'m,"'" 'I' "'hrr 'I!V",-,;"c. '1'<1. in \1)0 flJ""Y ,.,...".. 

"""'" J"''''i_'i'''''' "....., O<kk<l ,>II alt,npuilll')' b:><i ... <,'tn ""'" oM"" pI,lioy ubj«'1i"t """' ~ 

h~"~ bcca P'..,"'''lC''':<I, ' '''.'"pl"" ll""O<III.,I)' ",Ie'.-o,,' !<> lin: M.il ioolu,\!,) ;""I"de. I S')-oa, """",,·i.,ion lOr imll"-" "..-n"u. 10 .-..'((Iil artJ """,,,,,,,,I pn'pc"), thc W,,11o; Ur",,""";'}''!'''' 

Crt'<lill \\U1 C), "".I rhc .... -s<""'h."d o.kwl\lJ>n""" IR&[}) Ia" ...... 'ili~ " ) '",'nc" f.II , 
981 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.924

l'h~ II ""or.bl~ 1'~1 lib<:ri 

The l'lon<)ml)lc R;dl~rd N' .. al 

April 26. 2012 

l'u.i,W' 2 

C",npllu"ding Ihe I,'nu""" nmn .. e "r,hes" p"",;,;ons;;' the "ilual;"" ;n "hkh ,,,. lind "ur.;ch ,'" 

looa), "Ilh Ihe s;1'-"'ilk"nl """'N'1 or ~l<pl.N lul< pru\"I.;on~. lJecnu* Ih~ h:mpumr)' PrQvision" 

"'" cum.·n'I ' '~nnln"'Clt 'a~r"'Ycrs I,," ~ hccn I~n "i,h"u, c~rt~inl) ' n. '0 whe,h"" .h .... "", ,~>< 

pro";si,,,," w,lI b..' re,ro;,eli"dy n:n~"I,,1 m,d. if",~ whe.her Ihal re"ew~1 will be ''''y SOI~ e. limn 

a,lhc e nd of lhis lear _ D lear in "hiell Ihe I~~ j),",,~isio,~~ we", c"r>Cclcd 10 "" dTc'CI;q" 

Lung-'erm pi,,,,,,;,,!! is .. fundamenlu llCO'''' or'be I;mSinCoOs c"mmuni') Dnd es;;..~" bl IQr .ueec""",. 

Wilh feden,1 ""d slale ,ax, .. playinJ; ""eh "slgn;foe",,1 role in rewilers' Ii"""ciul decision 

",,,~jng . • he c"nli n,,,,1 c'spimlion "nd ""certainly "fnme"al "r:;., n,,,,,1! "rlloe C"de ":,,uUs in 

~d,'erso. coM~q"c~I~~ ~ il rorc,,--' I"cr,,~sed laX resel"'d. ~Ipo"t. i''''~mcnls In neW fi,';;;lllies 

"nd ;mp"-" C"'~ll'S, ,,"d hul d. b-1ck cr',ically nc~'tl~d new jun.. 

We ll"derscQ'c Ih~ tll~, th'" ,nany o(,he hoped."" I}cnclils "f,lle.'" cxpir<:d 'a~ p,..,,;.i<>,,-. " 

u"d~'"rtl,i,,~'tl to "arylnl=' dc~.i.-es "hc~, It,,· ""rtlelll •• prm'bl()n 1;.- ",lnSlme..! I'ClroaClivei) 

C!<1"-.... ;~lly when !t i~ r~i"s.mcd up "''') Cllr pllS' the· exptr ..... on \lu'e. I'vr "''''''''I1k. pf't"'i,;;,'''S 

des;lI-ncll.o ",;",,,I,,,e inv.:slmCn1 or h;ri,,1'- e",,,,01 be e~'lCc,~ ... 1 ", be D" "m,<",,'c a. ,I ... ,)' 

,~hc wbe would ;r."""p.",;",, ~mn"~ I'dy ,~, Ihe '''''' ll~" 'h''"o ;ncc,,,i"~~ ure "ch'nily 1'-oing I" 

he H,"aliahlc fur lhc lax yea. I" qu;:,!,;un. Compo.,le> Ur<: lell 10 wonde. ir,he Inecnli\"~,,:,; "HI he 

,,,·,,lIable '" ""'. and h~' ",,,,,m"",,,, ",,",nolly kad~ 10 ","uliu" "ith ",S"rd '" 'n\'C'i,ing '" hiriui': 

dcdsi'HlS. ,I", .. dim'ni.hinl!- II!~ .''''''Il! rhr 'he bllck·· of'hc i"ec<11i,·cg i" qucsti" ... 

We fl,lIy 8rrreci.,,· lhe de~irc hy lhe Sulleommi""e '0 ,,"uluale the currall ""chll" "fe~l'i"'d 

I'fflVisil)ns and d<i!.'"n'n" which ,;hl)uld "''"Y ~nd "hieh .<houid !!.Q. OI",I",,-'ly, C9n~ h"-~ 'h" 

res.p<~'si"i!i'y 10 ,k11.',min" ; r "".io". ,,,,.. policies UI\.' ""rI""8. un,t lhereli ....... c"~ IIJa!;n g '''''Ii"ns 

.,flhe Cud" fnlll' ,i"", I" ,i"l<' is D il~1 ;1\·e.,;i£1" re$r><>"sibili'y.m ""hnlf "r'"e "'~P~~Tr", 

Ilo",'ve •• /(11." urg~. 'he S"t....o",,,,ill"" and lhe rull Wa~~ and Men"~ ConHllim ... 10 mo,,, .. " 

'l~i~~ly as p<>:;<ilok '0 es.en" .h,_ cxplre" tax I"o'i .• ron< i, dcen.s ,,"Qnh~ "rn'fl",,",,1 nod'o dl) 

so .... 1I"OOe'i'" '0 'h" bct:.i'''';ng oflhi, ~c'.r. I'he sou,lI:r .he~c provision" a", es,end"~1111I: Ilener 

al>k hu.ine",""" ,,'ill he I" imp1<:",.'''' hu.in.'>s plnn~ Ihat ace""'l'li. h Ihe in,.:"dcd [><)licy 

<>bje<:Hvc. "flhc provlslOfl$jn queM;"". Wilh H strullGling e"con."ny. O:)11G"'.$> ne"d. to ,to ~II il 

,-Un on 'he '''-S Sid" ..r,he h.'<.lgcr Ii' ~,jm '' '': c'Cu""""" ac,;,';'Y. Qnie~ly ~~,,,,,d;ns ,I",.'" ,ax 

pm"i.io", lh:Ol have" I" .. i"'"c impnc, ""j"hs and in"cosl"'C''''. "uell .... WI lTe, 15 year 

dClln:ci~ljon fur rc'ail i",pn" e",,,n ~. nnd 'h" R&D "",Ji" ""uld gene"'IC """,I) nccdcd 

ceonomk grow,h. I" ~hon, Con~_ ~h"u ld no. "'ail unlil lhi! Cl,d o[the )"a, or tOr 'he prosp«1 

f, ,,~ ,eln"" C",,~,!'''-.; n''''~''L'o "'1!.D')~1 

In1P"1nanli}, '''' al"', n,He lhal n>~ i"l!.llw dCI<..-minm;"n lhal cenuin P'''' is,,,n, are ""rth 

~ccp;"I=';n .he short lenn ronld "'" rreclnde COIISres!; from rnllln~ all lh,,"" pro,'I,;I'''' on lhe 

",,-,Ie in 'he cQl"";<' "r""mpr~h~~,.<i"" '''~ rdonn. RILA h"" \k-"""n ~n ",,,~,,"ken "d~l'"n'c IQr 

c'Hnprehcn.i'·e la~ rd,)1""', ('en,n,1 U, lhal ref<,"", """ i>clicvc. is Ihe nec",1 I"or h,,,,,,,eni,,!> 'hc ,as 

"""" in "rdc', ,0 ,uM(j'n"ally , ... Iuc" .he b""m:.., .. ~"'. RitA tlClie,"". Ih~' ~II hu,i"""s las 

preferences sllOtJld he On 'he ruhl" in ,~ ' rer",,,, "" Ihm bn~I"",-, "des call he lowered "s much as 

I"'O"ilol<" 
982 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.925

-n.., Ii onorabl~ 1'30 Tib.:ri 

Tile I ionornbk Richnrd Ncnl 

April 26.1011 

I'~~c J 

To ~""cI"d~. RII.A ,,,,,tnhe,,, rC'l"i",~c"a;,,') ill Ihe C,,,k ill ,order to r" ~~ inwl<lnlCn! and 

hiring d~d.;on~. C"nll"''''' .~ h(luld 8e' <!jll,ckly IQ "-~ lenJ Ih<t;~ expired pro" ;,;,,,";1 ~Ic ... s l<> bo.' 

!l -"""I;"~ · it _h,,,,I <I nt .. wai, "olillhe "od o!'.he )CUF_ B" in~,,",,; need '0 kno,," \\hUllhc la" is 

l<>day \I hile Ih~ u.s ,,,r',,,lI P">CC." I'"" .. <...,<ls. In .he lo,, ~ n",. aU oflf,,,-,,, pro" ;';;",, •• h""I<I he "" 

Ihe lahlc in Ihc cn,," "J nch ic"c c"mp",hcnsive iaN .... ·f<>m' "hieh wc h""" will ,,,,,,It in 8 

'l"M'"n';nl!y t\."<luccd Il",in~~ "01,, 3nd a .impllti .. ...J. sta b!.:. co.,.,,,,,,;,;ve and ""n"'!len! U.S .. ' ''-'' 

<"(Xle_ 

BHI I".s ~ 

Senior Vie,' P,esiden'. o,,\'en,mcn\ AIT,,''''' 
983 

Statement of Robert Boyce 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.926

To W~! IIIIl M!a/IS Curnmilkt. US. i(1I(l;( QfR~escnWi\a 

1. RoM! Bo)tt,I resideJl! 1/1 LlnIXIln. N...mw.1II!C WI )'00 mend \tie ~ W 

tttdil fQo ~iod ~ID' r .... f(U)tu(!. II ;\ impo!Wlllhal this mdil btQlcnckd!(l WI 

tnt "inlllI\dustry b.Is I reli3tt1c: lmI: \11 "hidllO pba Ibtir fmnirtg for ~ioo J'U"!I 

proje.:1t The fuuR.Qf oor COUIIlIY ~ ~ 011 clcln, It!ItIoa\lk~ ~ ~ 

,..inIIis t IDIjor ~;bility. 

W"'ef I drive bl' Rodpon. Misswri.1 rnmd ~11hr wind rartll~, ~hich 

suppibALLlil.:itdfflric;t] ]lCI'-er_!! AllufiMrl! It!.: IWibililitsa(l!t.\Cil1I1g. 

but !he wloo powa il"rliUllry IIetds 011" ~clp In gcnins ~ffillr ~ anoJ in ill£llliQg 

~ II1ILImii.Iion 1i!1(S.(lrd!e~ ind i!I1~ bIoI\'in! hoeft, ~'l ~ 

tl<t\\~lh.II~)"<:3Il~broughIlO~bm~·I~.) 

In IIidllioo, iI!1.Ill knI_illd J'U"O" pru;ms nroJ w bl"" Ik.cioptd all Q\Ol d!eCWlI!y, 

jlIII 1I:i"lDdmil(sWatl Wtol emlg~) 

P\ca.;c: C\1tDIl 1M ~oo II~ mdilliY ~itwll"'~l!I" righlIW1Y. 

TW)"OII. 

R(lbM EkI)tt 

ilS SolMl1' 

I.iil«Hn.N(685)O 

~,ll1ll.li1.rom 

-lll2415-oi81 
984 

Statement of Robert Fenstermaker 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.927

Robert Fenstermaker 

Game a 

9890 SW RtvefWOod Lane 

503.784.0352 

Rob! oregol1@gmail.com 

Hearing on Certain EKpiring TaK Provisions 

After losing my job in i:he High Tech industry multiple times, I decided to change 

careers. I was un-employed and went bacK to school for additiOnal training. I wasable 

to acquire a new career in the wind industry. It was the only growing industry that 1 

could identify in the USA (sad news for the USA). There are so many jobs being shipped 

over seas (because of taK incentives passed by Congress) - ! thought this would be a 

stable career. The Production TaK Credit (PTe) has helped create 500,000 well paying 

j obs here in the United States. When you consider all of the taxes from these jobs 

being paid Into the federal government, state and local economies It far out ways the 

cost at tht! PTC These taxes will be lost with out continued support of the PTe. The oil 

and gas industry has benefited from tax Incentives for dec&les and are now highly 

profitable. 1 encourage you to continue to support the wind industry; it is successful 

and will provide jobs, plus dean, local sources of energy for the USA for years to come. 

Please continue the support of the PTC 

R-obert FenstermaJC.er 
985 

Statement of Robert Hall and Maureen McGee 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.928

April 2S, 2012 

htend the Wind Ene'gv Production la. Credit 

TO the Commll\eeon Way. ~nd Me~n" 

We, Rooert Hall and Maureen McGee, resptctlully urge Congress 10 ~t end the wInd energy ~roduc!1on ta. 

credil I~TCI as Quickly" PDsslble. 

We purch~~ed Our wind Hrrbine irl 2009. Thepric. al ~. JOOUI S16K installed. A/I~r Ihe SI~le ~nd feder.1 

ta~ credilS .~d reb.tes Iro(J1 our electric componv. our 0~1 of pock~e.pe~se '"os about $4800.00. Without 

Iheenergv production u. credit, Our ab1hlY to .lIord Ih. lurbine would not have Deen a reamnab l. f;nandal 

burden lor u •. 

we .re <OnseN.IM! WII/l our enerrv use IS It II, CUI we seneraU!aOOUI Mil pur usage Wltn 1M turolne. 1I 

we look al the co" of the PI" kilowatt ,,'e. It will uke u.~bout 14 VU"IO P'Y It bock. 

Bul we believe thai the Irue cost of elO:Clridt'/ Is nol reflo:ctf!d in our el~tric bU I. Ther. are manv mort cOSIS 

... ""I.led with ge .... '.llng elKlricity thrOYIl" co.l natur.1 ga •• nude.r .nd ri .... ' d~mmini. Th;ose co," are 

p~lsed 01110 all of u, tn.ough h~.lth care COlts for miners .nd worb •• in th~se dan8 'ou~ job, and t~ ~ 

pOlMion loour air, mercury In the w. leland li,1! th.! wt eal, the r; ,k. and unknown.oI w~'llo do wil~ 

the nude.r w."e •• ~d the lonol f.ee riv .... lnrou8llout the world. Whfll w~ con.ide. lho •• co,to. our wind 

turbin e Is priceless. 

We 1 .... 1 fortunate that we we.e in ~ P<l'ltion fin.ncla llY I""t we could m.~e • • man .acrlfice 01 nol 

pu.eha"n, l~ln.' Iha' would ~av~ given us. !.hort_term plea.ure .. boau, ca". etc. We ,.all,enol ~ .... tVO"e 

" 1n • pO,ition to m.ke thl.lnveotn,ent, but w. fe lt the .e'pOn.lbilIV .inee we ~.d th<! means. 

We urge Ihe commrltee to I~~e yp.n e.!en,jon of the wind ene'KY produotion tn <red il "ghlaway. 

Raben H.II 

Maureen McGee 

S90S Buc~b03,d T. 

flag".ff. A.I B6004 

928·S26·2623 

iu, t(obh. lI@m,n.<ofV! 

hlend the Wind Enefl'l Production hxCredlt 
986 

Statement of Roberta Rothkin 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.929

Na-me: Roberta Rothkin 

Addr~n: 22A Hawkes Close, Onining. N~ 10562 

Phone Nurnb~ : 914·762·4566 

Contact E-mail Addres~ rob~r1a .ro !kkln@lgmall.(om 

n ile of Hearing:HearinH on Cl!nain Expiring Ta. Pmvisions 

I, Roberti Rothkln, r~iPectlully "fee Congress 10 utend the wind eneril' production tax credit (PTCj as 

qukkly a. p",,'ble. 

Doing this can he lp resolve SEveral iss~es In tke Hudson Vallev 3rei: 

1. ~v~", 1 compa"I"" 1ncluding Sil-'mens, manufacture Ihe wind lU.blne. used In wind ~nergy. ~eeping 

Ihis In credit will ~Ip ~eep the", job. and may help inu,,",e the number of job, in wind eneril'. 

2. The Indian Point EnerlY Center plants are rnchlng the end of their licensing term •. Even if the.e 

plants re given another 20 year!; to operate. th i,l, not i good Idea dueto the risk 01 an accident. 

Encou ragement should be given in v~rlous WiVS (lncludfng the t~~ credit) to have homeo ..... ners and 

buslne" owners lake advantage of gener.Hni wind power (either small units that nn be pUI on a hou.e 

or 1n a backyard, along with large, units that can be put 10 an ottlce comple.). Willie Wind power ",av 

not fully replace what Indian Poin~ Renerale •. wind power 5hould cen~inly be looke-d 3t a5 On ~ 

co",ponent of a mulU-pronged Slrategy to replace nuclear power in Ihe Hud,on Vallev. 

I urg~ the committee, to t~ke up 3n e~~ nsjon of the wind ene ril' production tax credit ,[ght 3way, 

Slnce.ely, 

Roberta Rothkin 
987 

Statement of Roger Harrison 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.930

April 24, 2012 

Hearing on Certain hpjring Tax Provisions 

I, Roger Harrison, a re rt~e In Blufft on, SC, respectfully urge Congress to e~tend the wind 

energy production a~ credit (PTe! ~ tI~ieklv-a5 possible. 

There are very few forms of energy that do nOI reQu1re lode chemicals 10 extract, or do not 

generate highly tOXic waste prod~cts . Wind power does none of these. 

We ,should promote wi!]d power. and other cle"n sustainable. energy sources as much aswe 

can. We may never be totally dependent on tnero. b~t we all berlefl t to the extent that we do 

not use dirty forms of energy. 

Increasing the amount of power Ihal our eounlr; gets flam clean. homegrown, affordable 

resources is;m excellent thing for us to do~ and this tax credit provides an incentive for the 

wind industry to co!1 tinue to do j~st that. 

'urge the committee to take up an eJjte!1sion 01 the wind erlergy production tax credit right 

away. 

Roger Harrison 

44 Cypress Hollow Blufft on, SC 29909 

843-70S-6878 harrlsonrjr@gmaltcom 
988 

Statement of Russell Mead 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.931

April 25, 2012 

Al\ent,on: 

Subjtc!: 

U.S. House Sub~ommiucl.' on Select Revenue Measures 

(Committee on WllyS & Mcans) 

! Fearing on Ctrlain E;;[lIDng Tax ProvisionS 

For10 )"C3rs.1 ~pa)'~1"li kave propped up the wind energy industry. D~sp itc tht' mall)" lens 

of bill inns of dollars (S 14 billion lasl y~ar) gi\"~n to them ,"ia the produciion la ~ ~n.:diL 

Ihe more receni inycsI11lem lax credil. and olher tilX and regulatory prol'isioJls, as well as 

loa!! guarnntl"\!S 3nd outright gr.mt~, the industry still comes ocgging. 

And c\"en aller 20 ycar, of suck largesse, the indtls!!)' (;',m nOI skow uny me3ningful 

benef,t concerning any energy, pollution. or carbon pmbkm. Instead, rural coml11unities 

hal'c bccnlcfl. dil'ided. landscapes degmded, hird and bar populations thrcatmed. and 

nlreadydwiJldling n3LUr:tl habitats deslro)ed. 

In this vcry dl1YiculL ~riod of trying 10 gain control of Ollr nalian's spending, \\'h)' '-I'ould 

one el'en consider extending tal( prol'i~inns or cash grants tn the wind el1cq,,)" induslry? 

At some point our govemmem necd,lO ,lOp the hlUJd holding for indllslric.~ thillshouid 

be grown up and able to SI:md on their own two f<!"Ct. If nur govl'mn,<.'nl conlinues to 

provide fllmncial support, what Il'ill t!lelr incentiw be to improve per/brrm.!nee ami 

0';:fC60lt "caknesSt's in their indIlSlry'! 

The wind industry l'ontinUl'S to lobby for government subsidies and why 110t, il is frt.'\: 

mon~'Y to Ihem and the ullimale enlily paying the bill. the US T~ ~paycr. has virtually no 

!;;ly in the mailer. 

The wind induSlry" falls vcry shOrt of fulnlli.n~ eomn,ill11tnts in job crcatiun, 

suslIlinabh:!reliabl e e lectricit), gcn<.'r.l1ion, and carbon emission r(:<luelion. Afl.er 30 years 

of dC\'c1oprncl1t in thc United Stall"> it should be in 3 pusitiOIl to stand on its own 1110 feet 

"ithoul subsidies Imm the US la.;payers. 

On October 28, 20 II. trddc journal Restructuring Today published un :n1iclc on ~tlun 

2020 strutcgy. The article is as fOllo'ls: The JIO,,'er industry can slash hannl'ul ail" 

pollutu11ls for as link as one-quarter the COSt nf other politil'ally popular :'ppronehl'S by 

relying <1" compelitj,e markcl';.. E"c1<11l ~id yc,terday. MarkC1~ are ra. cheaper thnn 

other oplioos being disclIs5<.-d such a~ slibsidi7.,ing ral'ored gcnc'T3lion teehn,)togie-s, the 

linn said in a new :malysis under ils "I::\:elon 2020" slrut<.'g.)·. The I." 'idcnce is clc:I •• 

Markets ~re Jeli\"Cring more than COSt sa~i g;: and reliability. Th~y ~re als" deli'ering 

clean cnergy, said E..;elon CEO j ohn ROlle. "We belielle thm they will cOll1in ~ 10 be tke 

best mechanism 10.. deliveri'll: clcull. re jabl~ and aflordab!c electricity. Under the 

Exelon 2020 strutegy. the linn has been looking 31 ways to cut C02 and this year 

included NO:\:. S02, Dnd toxic air pollutants th3t the ePA has new regulDiions on. [:\:elon 
989 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.932

"ould like 10 see federal and siale policYmakens avoid picking favor\.'<.J technologies. The 

EPA should fin alize ils Cross-Slale Air Pollution Ruk and Air To,;ics Rul e~ and 

compo.'lil;I'C I>ower markets should be ~lI owcd tel I>ork, said th(.' lirm. 

I encourage you not \0 reinstate st'ction 1603 cash grnnts or c,;lcl1d th~ production tax 

eredit but inSlcad to SUPPUIl Ihl' Energy Frt'edom and I'rtlspt.,nly Act or2011. Lei 

markds. not s ubsidil .... dri ve improVl'lm:nts thatll'ad the way imo Ihe future. 

J urge you to END Ihe Production T3.~ Credit. the Inveslment Tu,; Credit, and 3M)' olher 

fedeml Sllppoll o findl.lSlrial II ind energy. 

Rc ~pt'C lfull y submiued 

RlI s~e ll Mead 

I 0052 Croc ll Hw) 

Blissfield, MJ 49228 

517-443-5604 

c_mail: nneatl@ogdenteLncl 
990 

Statement of Ruth Kneile 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.933

re: Ihe hearing on certain lax provisions 

I respectfully urge Congress to extend the wind energy production tax credit 

(PTC) as quickly as possible. 

The PTe drives billions of dollars in private investment in homegrown American 

wind power each year. I have seen the wind farms In Iowa revllalize our 

economy. bringing in collstruction jobs at first, and maintenance jobs ill the long 

term. Without the risks of nuclear or gas and oil energy. wind power generates 

both electricity and revenue for our community schools and hospitals over the 

lifelime o { fhe project. 

IncreasFng the amount of power Ihal our counlry gels from clean, homegrow/), 

affordable resources is an excellenlthing lor us to do - and this tax credit 

provides an incentive thai will allow the wind industry to continue 10 do just tllat. 

-/ urge the committee to take up an extension of the wind energy production lax 

credit righ/away. 

Urgenlly, 

Ruth Kneile 

140 SW 5ls/Slreel 

Des Moines, IA 50312 

5/5-255-1377 

(ulh.kneile@gmai/.com 
991 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.934

PTe Extension 

To I-louse W~ys and Means Commiuec 

Concerning Heuring un Cl'ruin E..'(piring T3 ~ Pruvisioll~ 

I. Erik Elzinga.lmm Safc\Vorks. LLC in Washingwn Stale e~pcclrully urge COl1grt'l;S La 

estend Ihe wind energ)' production UlX (:I1,."{\il (pTe) as quickly lIS palsib1c. 

My company provides supporting t-quipmcnllo the wind tnwer industry in Nonh 

America. We l11alHlfaclUrc elevators. ladder climbing assbl devices. and eXlenmlaccess 

pl.llfonns for lh~ m(linlcn<lnce of\\ ind towel'S. Th~sc are products thm improw s~rcly and 

art: 'narXctl-d ulld~r the l'owcrClimb<..,. Wind br~nd. 

The I'Te drives billiolls of dollars in pri\'~(C in.e5lmel11 in homegrown American "ind 

p<lwer cal'll Y"ar, part oftha! inl'C'Slme111 is with Saf(.'Work~ wh£.'I"C 180 tC'Jm nlenl~~ ....... 

~'nptoye,J. Thb 3~'tivity abO SupportS manuf:r.eluringjobs fmm the uppli~rs in our 

c()mmunit}" and gcnerall'S revenue litr (,ur cnmmunity schools and hospitals over the 

lifetime of the wind lower pmjectS around Ihe counll). 

Inm'3Sfng _ the amount ofp<ll\"(.·r 1hat our cO,ln1r), ~elS from dean, homegro\\n, atlorJahie 

resources is an e~ce ll cnt thing for u~ 10 (]o - und this u~ c~(]i t provides an ;nc.:ntil'c for 

the win(] indnstry 10 eonlinue to dojusl thm. 

I urge the co!nmith:e 10 luke up an e~tension orlloe wind energy production \3.\ credil 

righl away. 

Sinc"rcly 

.(:p.~ 

Erik Elzinga 

VP Engineering 

SateWoru. lLC 

365 Upland Dr 

Se.aHle. WA 98188 

P: " 1206-577-<1164 

C:'" 206·538·9150 

!i:n!i. Elzlng !@ il"Q!!\t ~ 
992 

Statement of Sally Kaye 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.935

4/24/11 

Member< of the Ho",e W.v,alld Mean~ Commin",,: 

t urse you to wor~ with vour coUeagues to D£NY an extension ot t~e rellewabl@ en~ gy produ,u01'l ta ~ 

(redit (PTq-as Quic~ly as possible. 

IndusIr11ll·,ule wind power plant, are .. complete waste, ol la ~ and ratepaver money. The PTC onlv 

beneliU corporations, m.nv of them foreign·based, wilh'lirllJally 110 COl eml"IOII impacI and minimal 

elJl ployment Impact. 

Please work Wilh vour colleague, 10 D~NY a PTe ~Iells on as quickly as po,sible. In doing so, you will 

give th e wind industf\l I~e message Hlat you will not underwrile a wasteful program. If wind Is not 

matllre "nougn 10 survive without In pave, a .. ;'tallce, then II ,hould fail on In own, 

Mah.lo, 

Sally Kave 

Sllilim. Ave , 

Lana" City, HI96763 

808·565-6176 
993 

Statement of Sandra Wearne 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.936

()'o124112 

I W<>Ilid Iik& la ,_lfully Y!II'I C<K>gr~ 10 •• """'111&_ &".,,~y productioo la. cr&~il PTC)~, qu~y D~ 

po6~rD '" aflll not ""'~ 10 ... _ !/Ie ~,I Y~m jllOI DeIOf .. Of .IIe, ~ ""II""" 

The f>TC do . .... bl~ion& of dcll.Jf3 in private ...... I .... nt "' I\omllg"""" Ameri<:.>n wind ___ Y"" 

Wind I~rrns ' ..... ~Iil: e commun~'es - bringl..,. in conllruc1000 JObs al lirsl, II'Id malnlBnance jobs In !he long 1&11'11, __ ""'ng """,n .... IOf Ouf community !OCIIooIR a nd tlcrspjlBl. <We,!he Inet"'" of lMe P'OfKl. 

Inc .... u lng !/Ie am.".nl! of P<>We' t~;o1 0,,, counl1y geto from rJIIan, ~""'lIgfOW!\ , "lfontaDIll fm\Ou",,", IS an 

"~Gel"'nlltting 10< uS 10 do - and ...... la~ aedil prOVIdes an incentive 10< II1e wir>d i""""tty 10 conmue 10 do JUSI .... 91, 

Pleav talle Ulf a" 8>:1"""ion 01 ilHI wind """'111 p<(Mjuctioo tn erl'ld~ r;gnt aWl y, 

SandraW""''''' 

25W23! Oldham Rd 

""ndr. ''''''''''''@l9mail.I:Offl 630-95f>.9500 _ 

63().691~ ""g 
994 

Statement of Sandra Rogers 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.937

I. Dr. Sandra Rogers, DVM of Prescott, Arizona, respectfully urge 

Congress to extend the wind energy production tax credit (PTC) as 

quickly as possible.. 

I am proud to work at a veterinary hospital that has used wind and 

solar power as clean energy sources. When t see the destruct ion that 

has been wrought as a result of trying to collect fossil fuel , It really 

does not make any sense to NOT support clean enel'9Y. Wind, unlike 

fossil fuel , is widely available. 

Pleose continue to support the wind industry and 011 the jobs it 

provides and the dean future that it promises. 

-I urge the committee to take up an extension of the wind energy 

production tox credit right oway. 

Sincerely, 

Dr. Sandra Rogers, DVM 

4665 Julie Drive 

Prescott, Arizona 86301 

928-771-0133 

drsangria@yahoo.com 
995 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.938

u .s. Hou.eol Rep'e oe nlat) . 

Committ ee on Way. alld Mean. 

Subcomm1ttee 011 Select Revenue Mea.ur ... 

Hearing on Cetta in bplring Tax PrOlll.lon. 

S"bmiu ion of Writte n Com men" for the Hearing Re<ord 

SlIve Ou, Scenic Hilt eountry (n,,;ronment, n~. 

May 10, 2012 

i'le<limony b ilf>in,.ubmlu ed on behalf 01 th. ~ve Ou, )ceni(; Hilt Country Environmen t iSOSHC<j 

o"anilation which has a pproximately 600 m~mbe". Mo" of OUr members . re landowner, in an a rea 

recogni,.d •• Ihe Hill Counlt'; o/Tex ••. Thi' area 1, I-,nown for i .. "enlcilf>auty. One olllle significant 

feature. I" this area r. Ihe Enchanted Roc~ State Nat",.1 Area which I. de.ig natKl as ·" Nationa l Natu ral 

,andmark_ 

(Yen though Ihe HIli Counlry ha, a r" laOvely low Wind re",,,rce pou"'tial in general. II h'" an d amnn"e. to 

be con,ldered to, inodu . .. I.1 wind developmenl. In addition. Ih e area l, being cr""ed by two hig~ vohage 

tran,mlssion IIne.'hat are tran'potting wind ""e rIV from indumlal Wind 'ms in W~SI e~ ,'o Ih e 

metropolitan .,usto Ihe ea,\. 

The expirinK tax provision of moll concern 10 uS "Ihe ~ederal Production lax Credil (PT(ln ~ applie. to 

indusu lal wind d~. l<>llm~ fl . 11 h the key driVer for po! nll~ 1 indu stroai wind develo~men! in a re ••• ""h u 

the HIli Country e il "'uld resull in non optim~1 ullli,.,ion of limited ix~ yer feS"urce •. In ~dd liofl, i\ 

, e,ul .. in t he , ellulrement fOf ritepayer payment. lor lran,mi"lon system, thai are needed to move tM 

wind enef&y lrom femote ""'allon.lo me tropolitin load ~ente". 

There .re a number of faCIO" Ihal demOnSlf3le thai the pre 10' Indu.trial wind d"""lopmenl ~hould nol 

be eJ<tended beyond Its w"en lra lon dale of vear nd 2012. 

(1) After h;rvi ~ aCCe ... tel the PTe for mOSt of the 1.'110 years, II is 10nB pall lime thallh~ ma\~r t 

indumial wind ener!y industry prOl/es that it can exl'l withoul subsidies. 

(2) ~ He . ubsidv h "i~~, and its cost tot.oxpavers wuld reach an addlllonal .$20 bill ion Or more 

w,\h a four year eoteMio". 

(3) Even w11houllhe PTC, industrial willd deve lopment will wntinue to be supported by Renewable 

Porlfolio .standa rd (liPS) requirements wfl;,h curren tly eolst in 29 SIal e._ (4) Indum!al wi nd development cre3lel a relatively 'm~1I numbe r of I"'-'manenl, dTreel job,. 

15) Related I •• ",m'"ion w> tem addition. w"rll be costly wit h r3te paye " ,n Teu, l/ein& burde ned wit" 

the 56_9 billion cost 01 the Competitive Renewable £ntr8Y Zone (CREl) system" a/1 am~le. 

t1 "", t I provide. add it;onal ,u ppott fo r Ihese I.uors, tt~chment l prOl/ide. supplement.1 

inlormotlon on Ihe wil""" and SOSHCE. 

Pase l ol S 
996 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.939

Afte' ~"",g~~es' to the PIC f0l.!!!.~t of Ih!l!S!lll.'t!'!f!J!. i~ I'~!I Hme Ihil.!1!'e ",atu(e !ndu,ulal 

wlnd..£!!.efltl'!~~ pfove, Ihallt-q'!.!!!s!!!'!!!!'lu~'kfe . 

THE PTe WaS o, n~l ~ enacted by the Ent'/ilY Poliry Art 01 1992 ~ndl;u been .enewed ~nd ute .. ded 

numefOUS ,Ime" II e~p"ed hom July 199910 O&embe. 1999, end 01200110 Maf<h 2002 and end of 2003 

to Octobe. 2004.'u As >IIeh. il ha, been in pl a~ (0. mo", of the p." 20 ye.". 

e wind Indu,tf'; ha, in,talled ~ I3IS" number of proj.ech and 'i8nlfic.n\ amounto/capacity 'ince 1999.1>1 

A, ,u<fl, the Induslry i, certainly malu,e and .hould no longe. be del"1fIde nt on ,ub, idle •. 

An Ap.1I 2012 paper enlilled "8eyolld Boom & 8ml' PuU1ng Cle8n Tec~ on a Pallo 10 Sub,ldy Inde pendence" 

wrluen by ,ep ... 'enlaHv~ ollh .. 8.ooklnS' In"" ulion, th .. B' .... ,h'oo8/1 Insll\Ule and ~ Wo.ld R~<ou.c ... 

In,IIIUM 'tA ~d "_ . .Ihi. 'epoH co"dud~ Ihat policy male"" and buslne" I .. ad .. r< nfi'd 10 unil..,benlnd 

Ilmely ene,gy poliry ,,,fo,m Iha l "'ppo'I< US innovation, ,ewa.ds conllnua llmprovements In clean 1...,10 

prieea .. d perfOfm.~ee , a~d seeuressubsl';y In';ependen« for ciean leel) markets OS r3~dly npGSsible. "IJI 

The PTCwbsidy i5ma,slve, and il' e<>sllo la.p ye .. could ~pprp;oeh an ~dd tiolQl SlO billion Of """ ... wiln 

al ouf yeaU!len,ion. 

NOl only h.'I~e PT( be n in place la, an exlendNl period of yea", illlas(ortlinued 10 e5Calale in amounl, 

Slaning al 1,S ce~l!o/ ilo .U hour In 1993, it now <land •• , 2.2 cenl</kilowall-hour.''' II,. ta , cfedil, II< 

value to a deVeloper wllh a 40% m;ors'n.II., 'alt is 3.7 cenll/kllow·atl-hou, o~. belOf~ la ~ bask. Th~1 

v.lue ~8nili",ntly e",,,Nlllhe curr"nl 2012 yeaHo-da'" load ,one ~"traKe price 01 tlec\f'city in the ERCOT 

resion which 11K1 ..... "i mOSl of Te.a •. "i 

In. ~c mbe. 2011 p",,,,nlallon enlille<! "lmpact of the Production T._ C",dil on tne U.S. Wind M~fket' 

prep.,ed 10rihe American Wind EnefBY ""celation (IIWfAI by Na~iganl Con.ulilng, Inc., and that can be 

a«e.",d Irom Ih..,publically available afea in Ille AWfA web. . il Was indicated 11001 an addilional20.2 

gigilwam 01 new wind cap.clly wou ld be Inn. lied eveflhe 2011·21116 pe.rod lor. fou, vear e>len,ion of 

Ihe PTC,i', A""ming an .v r~8" capacity I.ctor of 30%, Ihe PTe In COIl wo~ld b~ aboul $12 billion. Th;, 

oull.y wou~ be in .ddi"on 10 the $8 billion of PTe .ssociale<! with the 14 gigawaU,lhallhepfe",ntal;on 

indio.loti would be i",13110<1 primarilv 10 meelSt31" RPS reQui"'ments Ov"r Ihe 2013·2016I1erlod. 

This lotal 01 $20 billion would !>to on lOP ollhe $1.4 blillen 10 Sl,S bi llion 11'" Vt'a. of PTC obligation, 

incurr~d pfio. 10 l/1e ~nd of 2012.

1111 It W<luld al50 be i~ ~ddil(On to any U.S, Trea.urv 1603 prOllfam up·lronl 

Kranl e~pendilu.e" and ~ece""~ted depr~ciatio~ cosl<. 

Even withoullhe PTC lndusuhll wind d ..... elo ment will conlinue lobe 'UI!!!!! ed b Renewable Portfolio 

Standa'd !RPstre!l!llrernenl< wh'ch CU"l'MtI~ .... Ist !n 29 !tAI&<. 

Renewable PortfOliO SI. nda rd (RPS) p,oiram. cu rrently ;opply In 29 stale.h, thi l wi llilke fy ,e.ul, in 

additional indust,i.1 wind Installation! .. ven without PTC U len!ion. 

Page l el S 
997 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.940

The AWEA Navi&ant presentati<ln if>dk'l~ t~ot arout 1.4 giK3W~tts ofindustrl~1 wind enerl'! wind Qpadty 

aree~l>Kl~ to be Installe d ove' t~. 2013·2016 ~"od based pllmarllv On RP5 requiremenuN, 

A. a .p""lfk ""ampl~. on Energy .nnounced on May 3. 10H, that il h.,l"ued a Requen for Proll",al, for 

allpro.imately 100 megawatn 01 Mjc~lg.n-b ..... d w.nd project< that will ~operalinB by the end of 1011.!'' 

n,e "ew' releau .tated th.t on [nerlV .>pertHO add aboot 1,000 meBawall,from renewable ",ure •• by 

2015 1o meet the nate'l renewable ene'BY goal,. 

IndU.\Ili"1 wind develo!!menl create. i relativfly ,m.1I numbero! rm"n tnt, direct lobs. 

01 the additi<ln.l l69,OOO job-vears that the AW£A Na'"go"t p'e .... ntaUonl'l indicated will be cceated ""el 

Ih.1011·2016 perktd fo, a f"'" vear PTC "leno;1on, 43,000 are induced, 78,000 afe lridi'''''t and only 

47.000 ore direct, Of the 47,ooolhot are direct, 31,000 we,e manufacturlng.nd <>Illy 16,000 ar. 

const, uction "nd Operati<lns & Mainlenance jO&M). Whil. nol broken ""1. the O&M job. a. e libl\l. much 

omoller nymbef than the ~mporary ,0n>I""tioo j<lbs, 

Ala lpecifocexample. 6P Alternative Energy 'eporled on Ap"14. 2012, that the mOtt than S800 million 419 

megaw.llcapacity FI.t R'~ge 2 "'I~d firm In Kansas will (teate SOOJobs al peal: cO",ItUClion and roughly 

)0 perman~ntjobs pnce the wind larm beginl comme rd.1 ope,ationl which II eXf"lCted by Ihe end ollhe 

vea r.

111 

in an Ap,,110il NRH r~pon enlitled ·Pcelimin"f'j An.ly,is of the Job, ""d Ecooomic Impart. of Renew.ble 

[nergv Project> SUpponed by Ihe 1&03 Trea.uf'j G'allt P'og ... ",", II wa.indlcated Ihal the prOllrllm h .. 

provided appro"malelv $9.0 billion in fund, 10 over B,OOO PV ond large wind prolecu thrO\Jgh NoV<!mber 

10.2011." 1 It Indicated that th~ co",tructlon and I,,"allation.relaled e.~ndilu"", are ~tlmat~d 10 have 

<upported an aVetBge 0/ 52.COO-1S.000 direct and Indirect job, pet vear DVet the progtam', oper.lional 

1I""od 12009·2011). Indi.eetJob! a«ount fot ~].oo()'&fi,OOO while th<><edo,ectly supporting the design. 

de""lopmenl ~nd conStruction/ln.ta llotlon 01 svstems were only 9.400 per ve ... Furthe,more.lhe annu,! 

oP'!'ntlo~ and ma intenance IO&M) .re fstim'led to SUPllon Detween 5,100 and~.~oo direct.nd Indirect 

job. pet veor on an on-gain, basis with only 910 jobs directly SUPponini the O&M. It I. pointed oul Ih31, a. 

a iro" onolV'i', Ih e analy,i, IIoe. nol incllJde impacts from di,pl.,ed ene'BV Of .. ,oclaled jobs. eamlng', 

a~d outpUI ,~I.t d to exi"ing or pl.nned e nergy neratlon ,esource. or In(feaSeO Of deCfe •• es in tabs 

,elated 10 ch."gt . fn ele<lfic uliTiW 'eV<! 5 and cOMumer energy bill., amoni olhellmPilCU. 

Related traftlm-,,'on \~tem . ddltlon, wlll be_COilli with r3lepi~rs in Te .asllelnl b~rdeneII w,th th e S6.!/: 

billion cost 01 the Competitive Renew.ble E~onti~REZl..!vsTem n an amplto 

" CRE2 "a",mi .. ion.v""m in Tn .. Ciln5e ..... ~, a good .... mple of t~" <""tof"on.mis.ionsy,Tem. 

Ihal will be needed with" PTe eXlen.ion. Tex •• ,tale le~"I.lion In 200~ mandaled t~allhe hl~he.t 

POlenllal renewable area, on Ihe ERCOTreglon Icoveflng 85% oflhe load In Ihe ""te) be Identiroed and Ihal 

lhe n~ed tr an>mi",lon add ilion, be Implemen ted. rive CREZ wind energy .rea, inWe't Te •• , and 1h. 

Panh.ndle were ..,Iected. The tran,mlssion ,~"em Ihat was net!ded 10 m""'lhe wind et1ergy to Ihe large 

metropolil.3n .ru. wa, designed to move abo"l 18.5 gigawatt<. an Incru'" 01 abo"l 8.S g'g~ w.ltllrom 

the Inltalled WInd capa.city n oll/le end 01 lOU. The CAU t'Mlmi"lon Iv<1em wa. Initia lvupect~ to 

cost S4.9 billfon_ The mo" reCen t estimaTe I. $6_9 bllllon.l'Ol Ratepayer,. t3Ih", than the Inllul1<iol wind 

de""lope .... w~ 1 be r!!qui",d to pav for the co.1> through monthlv billing •. 

Paie) of 5 
998 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.941

Rele rVlces; 

(1) OSIRE O~t"b~,e olSlale Ineemive, 10' Re~ewable, & Efficiency; feder~ lneem've,!Pol;de. for 

Ren ewable, & EfI"ienev!Renew.ble Elewicity P,oouC\ion 1 •• Credit (nC): 

IIllp"'d'!r~orgJ(ntfnlive$/ina.ntJve.d'm?(ncenljo;e Codt=-US13F&re'1&ee' ! ; 

Summary Map,·.IIPS POlleie!;: h11!d1d5~e,,~ 0,g"lttIIma ry map./index.<fm ?H_I&Rh I 

(2) hllibil 2: Annual Wind (.",,<IIV In<rea ..... Impaci ofTa. Polieie< on Ihe Commercial Applie.Hon of 

Renewabl!!. !nugy T<!<:hnololl'/; Te5t1mony of Usa C. lInowes; U.S. Hoult of Represental1vt •. 

Commillet 0<\ Science. Spate, and Technology!SubcommlUee on Investf«atlonl and 

a..e'l;ghtfSubcommltlH. on Ene r~ y and EM!ronmenl; Aprll 19. 2012 

(3) "Beyend Boom & BU'I- Punlng Clean Tl!'Ch on. Path 10 Subsidy Ind~pendence·. April 2012: 

hJJpjfww"' ~~ki'!i!.ed!!lp. !!~.?0!Y~!LeleaILlnv!!. m~nt~_muro.~. 

(4) tReOT Ii)'lorieal Dala , MeMhly liT. lD12-0I-!llte 2012.():'-09, GDF SUEZ Energy 11""'''1"<1'0: 

!!l.!p;!J."'ww &!I!!.u~.en~lTI'",urcts.com/lnrie~, p.!!I1?Id,,]13 

(5) "impact of the Prod<;c:t!Qn ra~ Credit on t~e U.S. Wind Ma,ket", prepared for Ihe Ame'ian Wind 

,nut~ AssQClillion bV N.~i£anteonsu t!n£. Inc .• December II, 2Dll; 

1!p:If.wu.o'Kl3._up!o~d/le'':!l_b£!lJlfpublkilllon'!f porl>lI2538_3.pdf 

(6) "blimale. of feder.1 h. E'IK!"dilU' ''' For f'..:al Yea" 2Dll·201S·, JOlnl Committee on ,~,~tlon, 

Jonu. "" 17, 1012 

(1) "OH [n~rsy ,eel<.o wind ener£V prop"",I,". OH Energy News ~elea.e. May 3. 1012; 

~tl l!"fd.!"e"erl'(;m ed"'roo",.eo"'{inde!!p~p i."2681l ~'12 7952 

(S) "SP and Sempr. U.S. Ga, & Power M"" .. !nlo Full C""'troetl"" Of S80DM Wind Farm In ~an .... '·, BP 

All t rnative EnerlY ,e lease. AI";! 4. 2012; 

nrdLwww bp.c<>'!JI£~"'.ic..>!J df.do?('!~I\!fI'ld~2~73 cont~Jd.=:1'074l.S9 

(9) "PreliminillV Analysi. olthe Jebs and honomic Impact. 01 the Renewabl e Energy I'ro~cU; 

Suppof1ed bV the 1603 Treasury GrantPr",ram", NREL Te< hnlc..>1 Re port NREl/TP·6A2I).S2739. 

April 2012 

(IO)"Apr,1 2011 UpdaTe". Public UllIiiy Commi .. lon of TU'fCRU lransmi<sion PrOi,am Information 

Cenle r; ~I!rd/www .t nsa ,pra)eelO.<om/~8e2%O~015, • • pJt 
999 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.942

Attit<hm~m2 

~.2!I~"i'.liol) $uPIlI"",emal jnfO'(Tl3tKm 

Wlln~<" Rob ... 1 We~lhe'ford, P,e.ident, Chal'm~n of'~e Bo~'d of OJ,etU", 

OWnin tio(l, 5."" Ou, S<.ni<.Hifi Counlrv Envlronmenl, Int. (5OSHCE) 

Add,ess: 102.12 R.nch Road 965. Fr~dericl\$bu'e. Tu.< 18624 

Ph"ne1!!! mb~ 830·685·3.063 

~a~!ll!mb~r: 830-685·3063 

Web,ite .dd!!,,, ,o.hllicounlrv.org 

£m.Uadd'e<,: rwulhe,fo,a@<lHc.net 

Other SOSHCE Of.ecto'5 a Ni Office .. 

0.1" Gel,twlt"idi 

Ron G!IIet 

Lee Ha,bln 

Oenni,/(u.enbe'lle, 

nm le hmbe'g 

P.,lt. Mea, 

~e-vin Pic~.,d 

I!>hn Pipkin 

Sill Rtnl'o 

BIIIVT"'g'''' 

Michele Thomp"", 

RayT<Chi,harl 

leo Tynan 

PageSof 5 
1000 

Statement of Scott Synnestvedt 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.943

I. Scoll SYIl/ll.,.lvelll. mel'trical Engineer in F~irlcss Hills "A rdpcctfull~ urge COngri'~ 

to ~lend the willd cncrgy pr<,duction t~1I: credit WTC"t us quickly us IX'ssihlc. 

If we tUl'nd the ye T "I.' "ill: 

fum[XJn turrenl ~I(lv!llcm and growlh .\femlllo)'nl~1Il in the markc1 of" in<1 

turbine ~ud \\ iud [.1n11 111:l11ufaClurillg and the many aU1l:iliary induSlrie.' lh~( 

fcclllhcsc 

I!nable Ihe US to anl£JP.ale und potential" lend in un indusl"'-Ihal we ell/I 

l'ompc ~ in inl<"mationally 

n..·velup Iht. h:choologi~ Ihal nUuw us \oJ be more el1er~ independent in Ihe 

long term. and dcvel<!p am,)TC whuSl,....d iSltibutcd grid 

If we lIu lIul c.\lenllihe l'e T we ,,'ill: 

~elualC the il;!!nrann- or our .socie ~ by 1101 dcm ll lr~tillg the fon.'Sighl 

reqll;rt'tl lo ,*l'bicve a decent slnndard of li\'in)!. lor gClltnnions to COIlle. 

['mmole the Ueslrul'tioll of nur \!1)\'ironl1lenl. by nOl ereming II markel outside 

of fussil fllels. Many 'CQnvculiomll' energy companies ,Ire turrcn(ly 

fL"l:ovcriug n~lur.d £a~ through 'frJcl;ing' which is deslroyin£ nlOlllll~in ide.> , 

\\aI""" 3)-S. Ol.one and quality of life 

I urge Ihe commitK'e 10 ,ake up an c);"lension of the wiud enc~ producti.:.n 1311: cretlil 

righl Ilway. 
1001 

Statement of Scott Teresi 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.944

I,S.:o[[ Teresi, ~ ....... b developer In Columbu., Ohio, ,esl""'tfolly urge Cong,..,., to ... wnd the wind e,,",&.I' 

prudu<U,,,, la. "...,dll (rYC) as 'luldtly "' possible, 

The amo"nt of wind capadly In Ohio 15 e5t1nlaled a l I S2TWh ",,'year tnol Indudlng offshore 

capacity of Lake Eric). This Is almost enough 10 cover Ohio's .. nUre e lt'Clrlcily demand l 

The I'TCdrive. blllk>n. ordoll .... in priv,nc I" .... ~nnel>\ I" homes, own America" wlnd flOwere"ch yen. I 

h".e~n the wind f.'m ".~rmy house"""II:III~e my mmmunity - bringl", In <"Dsm ,Clion labsal n ... t, 

and maintenance jol>5 in Ihe long lerm,~ d gencr,'lln~ revem,e for "urWmmunilyschools ind hospllllis 

over lhe lIfellme of the project. IfI<r a.m~ tho .mount of [IOW~r Ihat our country ~et. from "'e"", 

hom~gruwn, "nord.ble.r~~oum:.'S 15 an e:<~l t lhl"~ for u~ to do - .nd lhis ta.: cred it provide. ~n 

inre nlive for the wind InduSlry 10 conllnue 10 do lust th31. 

I urI:" the ",m,,,!!tee to t"k. "I' an exton,l"" "r the ..... ' ''d energy prod"rUon taJ< Cl"l'dlt righl ...... ,y. 
1002 

Statement of Second Wind 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.945

Second Wind 

166 Sommer Street 

Somerville, MA 02144 

781.789.1400 

Hearing on Certain piring iI~ Proylsions 

Second Wind WilS fGu nded In 1.981 by Walter Sass d ~en Co~n, lIectric.aland Mecl!anlc.al e!'lgineers 

that fo rmed Second Wind in 5ome",ilie, Musachysetts. Thi, mlssiGn waS tGadd,ess th e pres.ing need 

In Ihe Wind InduSlry 10 mea,Yre Ihe wind ;n wppor! of wind enugy de elopment and operatlorn;, 

Fo, 15yea" they brought innovative Ied>nologv and prodyc" to the market in Ihe lorm 01 wind data 

logg"" and wind farm management .y.tern •. In 2006, Ihey had a brea~t1"ough Ide~ to u.e ",und 

wave. in a g,,,,,nd ba.edw.lem to mea.ure Ihe wind (Trilon Somc Wind Profile,) al heights whe re 

modem wind tu,bines were openollng. P,lvale EqullV and i prolen lona l management leam followed 

and e company grew drJmallc.allyffom 2008-2010, ea ,ning ranking in Ihe Inc , SOOO, doubling the 

employee ba,e and opening a 24,000 .quare fOOl manulacluring fadlily In Newton, M ... achu,eus, 

The company lo"ered a uniquelv Ame.ican cullure : 

Second Wind ~V I full hullh Cafe com for all emplovee. 

We a ,e dedicated 10 Irainil'lg t,adespeople: plumbe rs, carpen e~ and electri{jans 10 produce 

~dv"n<ed le.:hnologic~1 products Ihat we e.pOrt l0 over 40 <oum,les witt> 'i8ni/i",nt busi ness in 

China a~d Ind ia. 

95" of the componem cost of the Triton Sonic Wind pfOHle. a re sourced rfOm Americ.n 

m~nuf~"'ur"r> 

Dur,ng ZOIO, the Triton buslnes. doubled with headeoum ~ch nl6S and a 5 vea, plan to hl,e a ve' 100 

more team membe" in manulactu,lnl, fieH:l custome r .UPIlO" and ,ales, 

As 201 1 Deg n, the I.,gest US Wind D<.'veloper. quietlv ass~.ed Ihe pending expi'iltlon 01 the 

Productlan a~ Credil", Ihe e nd 01 2012 .nd Wilhin" lew monlhs ~. d virtuallv all new wind 

de velopment activltie., Second Wind'. p,oduct • • nd ... rvice.- a,e leading indic~t<lfS af wl!ld 

development.r\d Job c.ealion .. nd so OUt full o,de, book suHered delays, and then man cancellatlon. _ 

Second Wind ,e<pondM in the only wa v we could. We shined au' eHom to internalion.I •• les and in 

Ju ne 201 I, ."d were lorct'd to reduce Our headeount I)y 30%, OUf current situaUon Is Ihal we lo.enst 

nea.).; nO new devefopmenl in 2011 and DeVOnd In lhe US and we are faced will! two potentia l 

""eM .ia" 
1003 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.946

ConB"'" pldly panes Ihe Produolion T •• Cred:t. In Ihl. o~", we will ~ire bad 20 employees 

Ihls year ~nd P<>'sibly more depending on Ihe recovery r~l .. of Ihe Wind Indu"ry 

(0~8re .. eXlendsthe P,<><luClTon Ta. Credil Tn Ih~ final hou, In I" " Dfiemtler, 2011. We wTl11.ry 

to maintain au, hudcounl, eliminale our ",,,,arch in new inn0ll31ions and applications lor our 

technology. We will be fO lc d 10 nplor .. >lrategk ~llern.tlv ... fe, the company, Indudlng a 

ul" 01 au' InteJieclual p'operty and bus,,,,, ... The mast obvlaus buye, would be a large 

Manufauure, In an em,,'gini market such as India 0' China. 

We .re gral"lul for the oast support of the US Government for the wind ene rgy induslry, ~ow"ver. the 

lac.k 01 long lerm support h3. impa ired our abilily to create well paid, American manufacturing jobs. 

s..cond Wlnd l. the Hp 01 the 'I"'"r. I've had dls-cu\slon. with dOlens 01 Ame,lcan wind ",anulaClu,)", 

CEO's and the <on.equence. of not acting qulc klv are clur. The enll'e induSirv we've build in Ihe 

Unlled SlaIn .• upport ~g tens 01 thousands of jotls will collapiI! wlth. spee<l unseen In Ihe modern 

history of th e indust,]al.eclo r. 

Pluse an '1uic~fv 10 support the Produclion h~ Credit. 

Sincere lV, 

CEO Second Wind 
1004 

Statement of Sharon Stevenson 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.947

April 24, 2012 

Re: Wind enerllY production credit 

The PTe should be EKtended as SOOn 3S possible. The business people who ha.e nY~led in Ihe WInd 

Power Tndost", should be able to ma k" "'''8 r~nge plans which will enable Ine busTne,se, to make the 

most 01 eyery dollar, And emplOYNs should be able to know where their job will b" 'next month', And 

we certainly don't want to 10"" any mO re jobs in ou, economic >Iru8.!!I". now. 

I am a be l,ever In the idea tllat our count", shoold hav" diversltv in our mean. 01 produc1ni powe" We 

have to use OUt creatove ilbllitie5 to "cover all the tlase,· when plilMlng far Our need. In the luture. As 

will! any Issue. it', never J good idea to be 5(1 narrowly focused 00 ooe pall! 10 ene'KV. thai we le •• e 

ou,selve. and our IUlIl,e Americans overly dependent on one method fa, lulf,Uong tilose need •. We all 

know thilt monopolle. arf nOI good for competitive p.icing and IMovatiOrl. Being able to know that we 

Can keep oor bo.lnes.es, homes and milcll lne., hospitalS, etc. oper.ble i, the respo n,ible, 'good 

mana8eme~t' way 01 taking ca re of ou r bUline'l...ol ,onnlng our country. 

I lived In Od" ... f exa. fo r II years, and Wa. continuallyf",stra!ed b~ the sm 1 01 Ihe pel"xhemlca l 

~nt nearby. Depe nding on the wind direction, the ·whole cllv would hive .ou~n egg smell a ll day. And 

In addition, the envlronmenl Wa~ damaged and cluUeted with thai the equipment needed to p.oduce 

oil and gas. So when we drove 1·21) highway lrom 0.11 •• recenlly and saw the hu ge wind induslry 

equipment my rom reaction wa.to ,em ,~ that this equipment js ~ much belte, than the oillndu~lry Or 

COilllndus,rv footprint. II certalnly Isn't in js ~le, but j sure COuldn't ,melt it, a.nd while there were 

hundreds 01 Wind IUlblne ., the land.upe "",ked a IIltle .urreal, but nol na.ty and <"loitere d. No energy 

50urce development can avoid ffeclin g It's surroundings, but we must add r" .. l he si:e of t he affect. 

Thank you for yoorlime to read mv ,<,mark,. And plea.e make the best dec"ion lor our !;O,,"trysfulu.e 

Iinancially and environmenta lly. 

Sharon Stevenson 
1005 

Statement of Shawnee McLemore 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.948

I r~.prc/fu/Iy urge Cangre .. la eNte",J tnf' wind energy p.oduCiian taxcrf'dil {p'rC} ao' quid/y o. pa .. ible. 

Th~ PTe d.'W. billian. ofd<>l/a,. In prJ"'''e inve,'menl In homegrown Amerimn wlmJ pawu..ach year. 

Wir>d (firm. Can re vilo/llf' communities - bti~i"g in cons/ruction jobs 01 firsf, ond ",,,inrenan'f' jobs In 

Ih e long lerm, and generaling levenue for OUI commun,lY <ehoa/. and ha.p;la/. ave, 1/1e /'fel,-me afille 

"roje£!. IlKrea.ing rne amount of powe, that aurcauml)' geu/ram c~an. homegrown, affordable 

re.OuICe. is On e"eellen/thing /0' uS 10 do - oM 1M. 10" "~ dit provides on ,'ncenllve fa. the wind 

indu<l1)' fa canrinue W doju>l rhor. 

/ urve fhe (ommittee to ro~'e UP on ex!~sion 0/ Ihe wind enerv~ production la,uedi/ riqhr owo~. 

Shawn<'(' McLemore 

Son DIego, Ca. 
1006 

Statement of Sheila Salvatore 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.949

May 9, 2012 

Sheilo E. Solvotore 

J0172 Compbell Rood 

Souquoit, New York 13456 

315.737.1104 - dovesne@roodrunner.com 

RE: Hearing on Certain Expiring Tax Provisions 

Dear Committee on Ways and Mea ns Members: 

for 20 years. taxpaye,s have propped up the Industrial wind energy industry. Despite billions 

and bllTlons of dollars ($14 billion last year) given to them via the productfon ta. credit, the 

more recent investment tax credit, and other tax and regulatory pro"'isions, as well as loan 

guarantee5 and outright grants, the Industry stili continues to dem"nd our h"rd·earned tax 

dollars. 

And e ven after 20 years of such largesse, the industry can not show any meaningful benefit 

conce.ning any energy, pollutiof\, or carbon problem. Not ONE conventional power plant has 

been shut down, despite thousands of Industrial turbines in ope ... tion. 

Instead, rural communities have b~n left divided, landscapes degraded, bird and bat 

populations threatened, and already dwindling natural habita ts destroyed. farmers use of 

pesticides a~e climbed, due to the lack of bats to naturally control insects. 

I urge you to END the Production Tax Credit. the Investment Ta~ Credit, and any other federa l 

support of industria l wi nd energy. 

Sincerely, 

Sheila E. Salvatore 
1007 

Statement of Sherrin Loyd 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.950

P1c3i;C e)(tend the wind energy productioll(3)( I:r.::dit as soon as pos~iblc. 

Over the ~ cars, 1·\1: \\"utehed the wind f.:ml1(s) in Livermore, California E\'ery time I 

drive by il m3ke~ me smile. I love th~ idea Ihal wind, lind thepc:ople cormlling iI, lIr\! 

helping to build Ihe communily with this ho me-grown energy source. 

This tax credit prO\ idc~ an important inecnliw for th", wind business to cominul: 10 hdp 

this k>e;lll:ommunity, and others like it IhroughoUlthe nation. 

Thank ~ou. 

Sherrin Loyd. M.S. 

Speech-Language Pathologist 

VOI.·alEasc 

9 Commodon: Drive. A IO<l 

Emeryville, ell 9.:t60B 
1008 

Statement of Siemens Energy, Inc. 1 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.951

Siemens, a leadhl g wind project developer and manufacturer whose U.S. base is III 

Orlalldo, Florida urges Congress to e)(tend the wind energy production Iii)( credit 

(PTC) as quickly as possible. 

-I, Jeff Rainer, work for Siemens Energy in the wI nd division. I have workod in the wind 

industry for the past 11 years with both Genorel Electric and Siemens. I can 

personally allestto the lack of PTC directly affecting my ability to work and provide 

for my family. There Is no stronger example of thai than my nen assignment. II will 

not be In Texas, Colorado, Washington, Otf!gon, Iowa or any of the other states that 

havo been so recoptiva to wind enargy It will ba in Bradl, Thase atates will not .ee the 

baM!i! of gr~n energy and the Jobs that come with it, Instead this year my company 

haa plans to have me teach Brazilians what we have painstakingly learned for 

ourselves In the pest decade of wind Industry boom. Keep me home ilnd producllve. 

I urge this commillee to immediately take up an e)(tenslon of the Wind eMrgy 

production tax credit. 
1009 

Statement of Siemens Energy, Inc. 2 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.952

Submitted to the Wa'J,s and Means Committee April 24. 2012 

I, Gililan Saunders. a Busmess Improvement Manager for Siemens Energy Inc. in 

Orlando. Fl respectfully urge Congress to extend the wind energy production la)( 

credit (PTC) as quiclc.ly as possible. 

There are jobs hanging In the balance in America and they depend on this ta)( 

credillo be e~lended . Unlortunately, the wind induslry is not yet sustainable at 

the current cosl basis and the company I work lor Is working hard to drive down 

cost so thai wind power will be COSI competitive with other sources 01 energy 

produclion, like coal and gas planls. Until we are able to gel 10 a competitive cost 

basis for wind power, our ClJstomer$ need this PTC to afford the installation of 

wind farms. 

Our company has been able to create thousands 01 new jobs in America since 

the wind industry began growing In 2006. There were fobs created in Orlando, Fl. 

Hutchinson. KS, and Fort Madison, IA at our main facilities. There were also 

numerous jobs created at the many wind farms Ihemselves. There are truck 

drivers, crane operators, wind tumine installation technicians and many more 

people thai are part of the value chain that is wind power. 

Increasing the amount of power thai our country gets from clean. homegrown. 

affordable resources is an excellent thing for us to do- and this tax credit 

provides an incentive for the wind industry to continue to do just that. 

I urge the committee 10 take up an e~ enSlon of the wind energy production la~ 

credit right !!W!!y. 

Sincerely. 

Gillian Saunders 

Siemens Energy, Inc. 

Americas Wind Power 

Business Improvement Manager 

4400 Alaf!!ya Tr!!il 

Orlando. Fl 32826-2399. USA 

Office: +1 (407) 736-5412 

Cen: +1 (401) 810-5984 

lian !l unders@!I~mens.com 
1010 

Statement of Siemens Energy, Inc. 3 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.953

Subm'ned to the Wa'J,s and Means Committee A~fi125 , 2012 

I. Tracey Bintemire. a logislics Operations Manager for Siemens Energy Inc. In 

Orlando. Fl respectfully urge Congress to extend the wind energy production lax 

credit (PTC) as quiclc.ly as possible. 

There are jobs hanging In the balance in America and they depend on this !ax 

credillo be eXlended. Unfortunately. Ine wind industry is not yet sustainable at 

the current cosl basis and the company I work lor Is working hard to drive down 

cost so that wind power will be cost competitive with other sources of energy 

production. like coal and gas plants. Until we are able to get to a competitive cost 

basis for wind power. our OJstomef$ need this PTC to afford the Installation of 

wind farms. 

Our company has been able to create thousands 01 new jobs in America since 

the wind industry began growing In 2006. There were fobs created in Orlando. Fl. 

Hutchinson. KS, and Fort Madison. IA at our main facilities. There were also 

numerous jobs created at the many wind farms themselves. There are truck 

drivers. crane operators, wind lumine installation technicians and many more 

peopte thai are part of the value chain that is wind power. 

Increasing the amount of power thai our country gets from clean. homegrown. 

affordable resources is an excellent thing for us to do- and this tax credit 

provides an incentive for the wind industry to continue to do just that. 

I urge the committee to take up an extenSion of the wind energy production tax 

credit right eway. 

Sincerely. 

Tracey Bintemire 

Siemens Energy. Inc. 

Americas Wind Power 

Logistics Operatione Manager 

4400 Alafeya Trail 

Orlando. Fl 32826-2399. USA 

Office: +1 (407) 736-4264 

Cen: +1 (407) 712-4214 

Tracev.Jlintemir~@slemens co.m 
1011 

Statement of Siemens Energy, Inc. 4 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.954

Submitted to the Wa and Means Committee April 25. 2012 

l. Nldhi Verma , an Engineer for Siemens Energy Inc. in Orlando, FL respectfully 

urge Congress to extend the wind energy production tax credit (PTC) as quickly' 

as possible. 

There are jobs hanging in the balance in America and they depend on this tax 

credit to be extended . Unfortunately, ll"Ie wind industry is not yet sustainable at 

the current cost basis and the company I work lor is working hard to drive down 

cost so that wind power will be cost competitive with other sources of energy 

production, like coal and gas plants. Until we are able to get to II competitive !;Ost 

basis for wind power. our customers need this PTe to afford the installation 01 

wind farms. 

Our company has been able to create thousands of new jobs in America since 

the wind industry began growing In 2006. There were jobs created in Orlando, FL, 

Hutchinson, KS. and Fort Madison. IA at our main facilities. There were also 

numerous jobs created at the many wind farms themselves. There are truck 

drivers, crane operators, Wind turbine installation technicians and many more 

people that are part of the ... alue chain that is wind power. 

Increasing Ihe amount 01 power that our country gets from clean, homegrown. 

affordable resources Is an excellent thing for us to do- and this tax credit 

provides an incentive for the wind industry to continue to do just (hat. 

I urge the committee to take up an extension of the wind energy production tax 

credit right away. 

Sincerely. 

Nidhi Verma 

Siemens Energy. Inc. 

Americas Wind Power 

Sf. Cuslomer Order Engineer 

4400 Alafaya Trail 

Orlando, FL 32826-2399. USA 

Office: +1 (407) 736-3941 

nidhi.verma@siemens.com 
1012 

Statement of Siemens Energy, Inc. 5 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.955

To: Ways af'ld Means Committee 

Re: Extend the PTC immediatelyl 

I, Marl\ Albenze. CEO of Siemens Energy's Wif'ld Power Americas business. 

respectfully urge COf'lgress to extend the wjnd energy production tax credit (PTC) 

as quickly as possible. 

Siemens Energy Is a manufacturer of utility-scale wind turbines. wilh its Americas 

operations headqual1ers in Orlando. Florida. and manufacturing plants in 

Hutchinson, Kansas, and Fort Madison, Iowa. among other locations throughout 

the U.S. Our 1,800 U.S. employees are currently manufacturing and installing a 

record number of wind lurblnes for our 2012 projects In order to meet the 

December 31 , 2012 installation requirement for developers of wind farm projects 

to receive the tax credil However. the short-term future of wind power beyond 

this deadline is uncertain. We are walling on Congress to send clear signals that 

would give Ihe wind power industry the certainty needed to plan for the future. 

We are doing the best we can to manage external forces such as the PTC 

Uncertainly and natural gas prices developments. but with consequences. I urge 

the committee to lake up an extension of the wind energy producUon tax credit 

right away. 

Sincerely, 

Marl<Albenze 

CEO, Wind Power Americas 

Siemens Energy. Inc. 
1013 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.956

To: I·Iouse Ways and Mean;; Commi!l~'I' Ml'mllt>rs 

From: Ivy Main, Vil.-cChair, Sierra Gub. Virginiil Chilpter 

R,,: Hearing on Cert,1in Expiring lOlA Provi~ion5 

Datl·: May 4, 2012 

The Virginiil Chapter of thl!Sierra Club ~up rt s the ,'~Ien~ion of the Production T~-, 

C",dillor wind enerl>Y and urgt'S Congress 10 take immedial{' action 10 avoid further 

job losst's in Ih .. wind industry ",)"t .. d to unCl'rtainty over the PTe. 

Although Virgini .. <:1."1'l'ntly ha~ no wind fann s. it holds gr ... at pronlise for w;"d e,wrgy, 

{'Specially offshore. The NJlional Rom.,\\'able Enl'rgy Laboratory eslirnatt'"S that Virginia 

has enough offshore wind rcsou~s W ml .. 't the stale'S .. ntire en,'rgy demand. As 11 first 

~tep, lhl' Bureau of Clc\!"n Energy Manag ... ment has dl'5igna li'd iI Wind Energy Area 

capable of supporting up to 2.400 megawdtts of Wind power cilpacity off the coast of 

Virginia. Eighl companies h.1v ... expl"t!SS<.'CI interest in dl'vcloping ~me or all of the a~' 

blocks. Two sepHdle e<:onom.ic impact studi.,s have rondudedlhal thc' IllUld·out of 

o(f~hort' wind off the COiIst of Virginia will crl'atl' an ('Stimolted IO.()(K) career·length jobs 

and add millions of dollars in economic devclopment. 

A number of nn·shore wind fam,s hav.' ~I~l \>('(>n propO:Sl.'ti in Virgini". At leasl two ilrl' 

ready to be developed but have been stalll'd for economic reaSl,ns. In Jddition to 

construction job!; and dean, renewable energy, th'-'SC.wind farms would bring much· 

,'N.,{kod lax doHIIfS for localilil'S in \\"~."tem and southwl1s\ern Virgini" that hav(" bt.'C"I1 

hard·hit by the rLon'lisiun. 

Wind enrrgyls on th .. way to becoming competitive with fossil fuels; indeed, in some 

states it .lln>ad)" is. This is remarkolblc when one ~onsidcrs thdt fossil fuds hilW large 

cxt ... mal CQ!;ts n(..l e[1l.'cl~'<l in Ihdr priU'. induding thuoost to the public of air ~nd 

water pollution, greenhouse sas emissions. and health impacts assad.lled with 

pollution. WhL'fIlhe$l.' custs are (onSidl'l"l'd, even thc most expensive offsl1t)1"e wind 

proiL'(:~ arc cost·comp ... titi\.'(" today. Since tht'$<;! <'OStsart· n(>t currently factored in to 

what rat"pay("rs p~y, however, th .. federal government should use the PTe to en,;ure 

Ihat the wind indu~ ry CQIltinue5 to develop and to provide dean, donu.'Slic 1"l'IIl'II"abie 

.,nergy. 

'nw PTe ha~ proven to be critical to the development of Ihe American wind industry 10 

date. We urge thc.Commi1t~ to t,li:.e immediate action toe>;tend it. 

Yours truly, 

Ivy /I'I,lin, Vice Chair 

Sierra Club. Virginia Chopler 

·U2 East Franklin St., Suite 3U2 

Richmond, VA 23219 

703-967·2876 

1l18in(/> 'ru A.net 
1014 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.957

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,·n""".-.gt' ,10""'" "" ,,( fO.,.j 10 hdp ,110"", i" ", .. " J. CO"'I''''''''' !(> htlp I"''P'" who .t" ,,,,,,,npkl)'e,] 

k ...... fn' ,,'n,k . nd bo~,k, If' "",-,,,,,,,,,,,,11), ""'>JV:ln"'~rtl dulJrm. 0"",," P"""'''''''' C'lC<)lIT>g<' ,t..: 

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<U!T '''g off tlu. ""1''''''''' ""'.'" "f fu",I;'lj: 10 ""n)' h,m .... oem ... ,I", "'''''''1)' ., 'he ,. InC u,,,.· ,he)' h."" " ,.,,' ,1",,,.,,<1, fill ,lor" 11<"11' " ",ra;e. 0."." •. < ,,,,<,<I to "'" ,Il.,.. ,,1I,rot.hle ""'''''u''''. Ii> 

mah' b'l!'1" <""!ri['''""",, Ou. "''''''''''''<1<)' h<= In ' --"Ii(nnl .. dq>enJl 1m IIJC prng" .. "" .nII .... ."..n'G ch."t>n pro,-..J< IhNUgh .,~ 11M; )""<- ",., l' ' t.x li",< -.oJ <h"ril ~'" "t};'ln""I>0)<~ ""J'''"'' ,.,,,.,,,"',,. 0 .. , )."'" "IJu,,,1 h",,,. The 1''''plc ... ", ""''''" .. " .... , w.;t f< ".C"nb~ ''' '" ",'n.',.I\' 

th""" l'm""~"" ",,,;1 d", ,,,.1 or .1\" ;'''''' ''' ,oe." 

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d.,ri"hic <p;l tll<"~"" .... ,. """'" ,~, no' "~I"'';' ''c<" ."l' "'<Ire "''''''u'''''Y 'If di,n,I";"" oC 'hen ,,,,,k. 

Em",." I), C.r;<)n. Ph,D. 

CEO .",II'",,,,I,',,! 
1015 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.958

Silk"" Valle,,!' TIIX tli",cW'" G"""r 

1l~.1ri~ 3 /)" C~rtloin Ii..~piring l'lI.~ 1'''I\'I''on< 

},prill!6,~<).~ 

R&'O Credit 

Tile """,,l1ainly and <"O",pl""';ly of Ih,' R&tI c~il ;,; I~'rf.d """mple of huw .h~ Unilc'd Sial"" 10. •• 1.11"" behind 

In lorm.ofpro\'idinS 14.'Cpoliei<os ~,al helpAm.,Ica.n romf"lniesron'jJI'le &loholly, In ~ol1, he.:-rndil ~.plrro 

far Ihe ,1i1 ... ,,1h tlm~in iU hil;lal)', and SO Mmponl'" >gaIn orein asltuatlon ",'h.", ,...., ... Ianson whNhcr to 

i,,"esl in IheU.S, 10 c~~t~ inMI.du.1 pm, .. rty h"" to be ",.d,- wilhn"l repm lath. 1101.nl;"1 t"",erroil. 

The im!",,,, "flhi_ unce:naimy bo "",,,,......:,I ~). ,hd.ct Ihat Ihe Unito:d Sl~t"" h~ faU,.., II<'hind other n.tI(m~in 

1'f'tJ\'i<ling in"""li""" lor In'''I1'",,," and the 0"'3Ii"" 01 inteUl'duall'li'l!"-'f1Y. 11Ie U.S. "urr,mlly raaks 10000N 

Ihe hollom "IOECU n.li""" in 'om,."fR&D ,'''' ""ein"'''li .... ""~ "",,,"I ........... nl [Kllki •• und.rmin"lh" 

p""'ipe<:I. for Am"rican work<ll!l by ~nCOl'r~sin8 Ihe misrolion of ", •• "",,11 ~n.d de~lnpon"nl oC1i\'itles 10 olhu 

countries .... ilh 1OOrl' pl'e\Jiclabk mOrl' r.1'()r:tbl ~~ 1rl'3tmtnl. 

The Silioun "lIoyT .. Di=t"rlGnmp hclw-."" the Un;t",l St.,,,,, .. «:<\sa [l<rm.nom and ~nb ... c.:d R&D lox 

om:Iit Iha, promotMin_'m~nl il1 U.S.·ba.';ed ~r"'lion oflntelll'C1ual properly. 

Sili«011 Va lleyl'.., Dil'ecl ~ e ..... ul. 

2.2t 41S1 A"~""e. SUileJ(l' 

C"-!>ilolo, CA 9.';010 

PhMel (83') 46S·112()4 

F." (831) 46.~·93S4 

Co·"hai "" 

J~IT Ilerg"'8tm. Kt1App, 1n<. 

Phone: (4<>8) a2O;·~8:>Q 

t;m.U: Jdf.i;IC'rgm.n n@nctopp,oom 

flan)' S!";nksy, ,\<\nbc S)-';I~,"", IllC. 

Pilone: (408)53f''':H65 

Ema'l: h.o")~.d"""-""", 

"'-'<-"nl,,", 

AdPheSy.,em.'.lnc. 

Advanc.:dMi<:ro Ik\'!~ 

Agilont e<:hnoloogi~ , '''''_ 

Am"'''''.oom 
1016 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.959

Appl e 'I n c. 

Appl ied IVIatCI-iaJs. Inc:, 

A"". go -rcch nol ogi e.s 

Aviut Ne tvvOrks. ~n c, 

.I3io- Rud Lu.borat:Or'ies 

.I3lV1.C Softvvure. _In c, 

BroadcO .... ' CorpOratio .... 

Broc ade Con,n,unicution_s Syst:e.-.-.s. Inc, 

Cadence Desi gn Syst:e .. "s .I n c_ 

Cisco Systen's~ Inc_ 

Cypress SelTlicOI,clucIt"oLDol by La:borat:ori es. Inc. eB. __ . _yp Inc. 

Electronic A.rts 

FacebooKp Inc. P I ext 1'0 nics T I.' tern at

'; 0 n,a 1 

G-cnon,ic Healt ~ Tnc. 

G-e1::'t:y" In,agespl nc. 

CHlcad Sciences, '_n c. 

GLOBA,LFOTJl:'JDR..TES 

Google p In c. 

a.-ass Valley -USA 

Groupon I-t c....vlet1:: - Pa

cka rd CO .... "lpan y 

I ngrun:. lVI

icr op Inc. 

Int:el Corporatio n 

iPns$., In c, 

KT-A.-Tencor COI,.:ooL-at:ion 

Logitech , I_n c. 

1\I[al-vell S e.I"icondu c1::or. Inc. 

l'lVTa.x-ilTl 

I ntegrate d Product s 

IVIicl-osoOft COI-l.:ool-atio n 

1\I[0tol-oOl a l'VIobil ity 

N ctApp. In c, 

N'etfl .ex. Lnc. 

No"e lh .... s Systems, In c. 

N'VIDT..A. 

Oracl.e COL--po'-l.l.t:io n 

Pan dor .... lV1:ed i .... . tnc_ 

Po....ve r nt: eg ·at o"l)o"",. Lnc_ 

Qu_uJcOI"n ,. Inc. 

R o"i Co.-por atio n 

San Dis k Co .. por .... t:ion 

S.AP 

Sengat:e Tecl ,.nol ogy 

SiJ vel.- Spring Netvvorks 

S1Vl.A.J~-r lVIodul ar -rechnologies Corp. 

Syrnantec Corporat:ion 

Synopsys .. Inc. 

Visa 

VIVIvval'e COI 'pol-ation 

X,ilin.x p In c. 
1017 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.960

N, .. "" , 

Ad dress: 

Phon<:-: 

S ~,t.t-jipS ~RGY 

Suumined T~!imQ"f orlh~ DiStribul~d Wir><! ::l1~,gy Mso<i.t!~" 

S"brommill"" on Sri"", Rev~nu~ M, ... su"" 

Il ... ring on C~ ,uin c.p;r;ng" '" PM,";";,,"' 

May 10 , lOU 

Skylands tnew~bl e ~rn:rgy , LLC 

Rog ... OJ,,,n, Owner ""Sk~I lld . Ren~" .. bl. &n~fgy and Fo .. <I<lin~ Membt1"a"d 

cu,,,,ni fIoJr<l M"mtwoT o:>r'ht Oi;srrib",f'd Wind E"HIIl' Aosoci.,io" (DWEA) 

1 Tho.cl. Hill R""d, Hampton. Nj 01'.8'7 

R<>g~r OJ..,,,, Ow ... , ofSkyl~nd. Rene,,'~ hl. """'gy 1'(I.g~r.<I "O'\t!!~ ~): l,! nd~.('t>p1 

I ~m Ruger 0;..,,,. Owner QfS!. I'I~I1.b Renewable E ..... 'lIy. ,'"""ding Mtmher.nd ('tHRnl IIo.rd MtmtX'r 

of th~ JJiSiribulC<! Wi .. d r~ltrgy '''''is<M;i''ion ([lWEAj. I ."bmit this Il$imon)" il" th~ owncr Qf Skyl."ds 

Renewable EMrgy . "d .n aellve rnembe r of(OWEA) 

Skyland. nl'W.bl~ "~rcy is. r.mily o,,"ned bus;" .... "1"""'''g out 0( H.mpton, New '""Y and """,·jng 

Ihe Uj.slalt .n ~ (N), PA. NY)_ Ahhough S~yl~nds is ~n~ged in Ih~ <1<:sign, so~ 31:1<1 inSlAlia rion ,.,( 

iMc>",~bl~ n~rgy .ys.",," . Inc luding .",,,11 wind lurblne.. pho.O'I .. ilair (PV) >olar. ",irro-hyd"",l...,rric: 

dnd h)'brid "1"1","". our !"rimal)" focus ro. '51 Y'>.'" hol. be",n .rrnll wind hI.bin ..... W~ al"" m.:u. slrongly 

on ene rgy .. m"'~n"l' ""d lh. <Slu"'liotl/ron."hdl'lm tlf dppropri.le ,_otl;nll and r-n,ilting or renew.b le 

' ''''hnologi ..... ubj...,t thol. th~ DOE h ... dCl~.mrn<Sllo I><' lIMo gre.>tc~1 barri ~r Lo Ihe Im<'gr.ltion of small 

wind energy;n ,hie US. 

Th~ Distributed 'Mnd Ene'llY ,0,,;«<,0"1>11 (DWM) is .. nJlioIYI lrade .l$~, .. i"n c<>mprisrd of wind 

en ... gy componenl nuf.C'Iu,~ r •. di ... rlbu,ors, proio><l devel0p" .... d .... 1 ..... , in"~ ll ~n; , .nd ad,·oedlO •. 

"'hose prim.1)' mission i. 10 P"''''OW an.d r""' e< .11 .'P"'<' o "I' Ihe US diMrill"tc>d wind "r>rrgy i"du>lty. 

DWEA ha. d,,.,", "r n,~",b .. r romp.1n"'" 1"" .. <'<1 thmugho .... II.., Unit<Sl Statr!; o( .. ·hi<h S~yl.nds ;, 0 

founding meml><' •. 

"Distribute<1 wind," also .,..\1\",onl)' ... r ... r<'<l 11/ as 'small" or "comm"nity wind," it\\'ol ... •• tho "S<' of 

typically i-ffi,lll., wind ,,,rbines.>, homes, forms, bll.inO!:SSe$ . • nd pubt;,: !:idli'i(':5 to o.T.~ .11 Or ~ portion 

01 ... ,,-o l~ o~rgy <ono"mplloo. Thi. o;o>gmem of Itwo r~ne",.b-I~ ."~rgV Indullry alr.:oociy "'p~nt~ 

dPpm.;rrnt~ly U bim!>n ;n n~w ~""l'gy inr ... "ru~lll '" rOT "' m"ric~'s nita! romm"";li~. and romlll",dal 

a"d ;ndust,.;"1 energ)' """'U!n~,.. "n dn .n" .... h.<'<I bMi._ 

SKYl.ANDS RENEWABLE ENERGY, lie '1 11 M)!; 'IILL ~OM>, II AMPn-,y.:. NI ti81r.!7 

u"·I>l_ .. "'" 
1018 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.961

Also. mo,~ th.ln 80 I"'f<'ent of diOlrihu,v,1 wind ,u.bi"". sold in the U.S .... m~n"r~c!U",d IWn! ~t home 

!un~.kdnjob. ~'" ufuln'o<t prio"tv 10 "" ~"d our ,ul'p li~"'. lYe ~pp.ocl~,e ,hi. 0PllOrtun;ly IU co""",n, 

on c~"ain ~~piring provi<ions tha, 5igniHcantly Iml"'<1 0'" industry. 

w~ u"lte ,h~ HOffit' WaY" ~nd M~dn. Commin.~ IU "ppn,.~ arId .. "d '0 d,., full H,,,,,,, of Mep._n'.li ..... 

1'1I"I~'ion th.:!, wQUld immedl"ely .".:,end 'he § 4\1 11'C elt'CtiOOl thCQugh 2<)16 fUt" Il ~i>1IS of wind pow~'­

projecu, An ITe eMen.ion would ",oimain • levol pl.aylng Ileld among oompetlng .~ne,, ;1ble ."""SY 

t""hnolpgies, pm. ide bu.i"""" (en.imy 1<. the ."",11,·. ""gr11em.' or 'he wind ellc'lI1' indusI,)' ,"", •• e 

gen~.ally uMbl~ 10 utili2~ th e PTe. dnd .""ble i, 10 <onlinue '0 d."loy dedn •• n""'dble, dom ... ,k"lIy 

prudllcHi e,,""lIY. u,ing America" made ~"ipm,,)1l , to d.i"" Kanomic grow,h .nd job c ••• ,i"n in 

communili .... a"'''" Ihe oountry. 

Th~nk you ~gai n I<>r ,h ... """'''tunity '" <ubmi' 'h"'" cOmmen'S ~nd Wt> look for",.rd '0 ",orki"g with you 

loo"su,e 'ho continued "'~l"'n5ion ofthi. dYIWrnic: .nd growlngArn<'1iCi1n industry. 

Rog~r Ohon, r"" id~nl 

Skyland. It ~n~w~bl ~ Energy, LLC 

MRIiA lcrriji,.,J WjndSh~A~ 

NARCl!f' Ce'tified l.ewl J Small Wi"d ""1011" 

OSHA/ASJo I£/IACliT Cmifled Rigging Instructor 

Cor'if""" J\Jwnced T"",,-'t' Climbin9, s.,f...,. ~ R<'KUr 

NI n:p(CI .. ,,, ~'n~'!IY P'''!frum) App'yw.") IV/lUI r",bitlcltl"<111cr 

NYS6RDA Appro.ed Wi,," T~rbi"~ Ins,,,/lc, 

Di."ibuto. ~ Insroller r;flVil1d E"...-yy Sy$WnS 

~'i7 cell 

9O&-7396.17~ fa' 

[Qjj~' .d I ~01Jlt<J('i.. wnd,,....co m 

_" .• kywnd ...... efU'l 

S ''~'M' pr.Y [pS 

SKYLANDS RENEWABLE- ENERGY, LLC 'tllA/lS lULL RUAn, ltMlr"' ..... ! O8Il' 

~' ''''''''''''''''' 
1019 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.962

May 10, 2012 

SMITH' I' f 

Dear Committee on Ways and Means: 

Re: Hea ring on Certain Exl!iring TaJ( Provisions-Written Comments 

Thank you lor the opportunity to provide comments on ce(faln e.plring ta~ provisions_ 

in support of the edension of the New Markets Credit, which expired on December 31, 

2011 HR 2655, and the New Markets Tax Credit Extension Act of 2011, Smith NMTC 

Associates submits the following commerllS. 

As an advocacy organization working on behalf of Qualified Active Low-Income 

Community Businesses (QAUCBs), Smith NMTC can offer a valuable third·party 

perspective different from the v;eW5 of other NMTC participants on the effectiveness 

and the efficiency of the New Markets Tax Credit (~NMTC") program. Through a bipartisan effort, Congress created the NMTC program to Incentlvize sustained private 

sector fnvestment in distressed low-income communities. The NMTC provides a seven 

year 39% federal lax credit whleh effectively enwurages and results in sustained 

Investment in numerous severely distressed wmmunitles nationwide. Our company 

has facili tated over $220,000,000 in NMTC deployment for fifty-seven (57) Habitat for 

Humanity affiliate QALlCBs throughout twenty·flve (25) states. Through these 

transactions, the NMTC program has; 

created or retained 1,243 permanent full-lime jobs with benefi~; 

created or retained 190 permanent part-time jobs; 

created 3,706 temporary construction jobs; and 

built 2,350 homes which have been sold to low"income families. thus ending the 

cycle of poverty and transiency that so many low-income families face. 

These projects provide Habitat Panner Families (Iow·income persons and residents of 

low-income communities) with immediate asset and wealth creation on the day they 

r.ln~p nn thplr n~ H"hfr"r hnm"_ Thp NMTC fjn"ndng en~hlp~ h"rn_wnrking Inw_ 

income re5idents to achieve the American Dream of homeownership with their energy 

effitient, often LEED-tenified, Habitat homes. The Habitat Partner Families gain not 

only financlatty but also with the sense of pride they ha~e from being a homeowner and 

the sense of community they share with their fellow homeowners. 

(/) ,,,-1.-.\..1_ t, \ ... , '"', ., ..... f)JJft __ .• ,.,., • .-. ." 
1020 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.963

Coming from overpriced ~ubstandollrd cond ion~, Holibitat jamlliu mcwe to a ~table, ~lIfe 

neigllborllood where they can safely raise tlleir children_ No longer mcwing from place !O place, 

the homeowners' children'~ performance in ~choollmproves a~ tlley begin to Identify with their 

own school and bond with their classmates and neighbors. Studies have shown that Habitat 

homeowners' cllildren are more likely to finish Iligh school arid have become more 

successful in school. 

Tile Habitat homeowrlers also traditionally pay less lor their monthly mortgage 

payments Illan they were previously paying to live in tiny, unsafe, substandard rental 

housing. As a result, they are able to save more money - wlllcll they can use to invest 

and create further assets, and to spend in their local community thereby boosting tile 

economy in tllat low income community. 

Through the NMTC program, Habitat affiliates have ultimately provided 2,3S0 lowincome families with affordable, for sale homes. The Ilome building revitalizes 

neighborhoods irl generlll, and especially neighborhoods that Ilave suffered due to the 

recent foreclosure crisis. More property taxes flow to the community and the 

community's new stability spurs additional Investment In the area. 

Sincerely, 

NiccolI' Gamtr (j""~,,,1 C"unsel 

Smith NMTC Associ:ucs, LLC 

Ph (j.IS·520-0030 I r .. , 86(j.·H4·0SQ9 

ng;tm<'f@smithnmrc.<Ilal 

1712 o.~r C",d. I,an". SI. I..,,"i •. MO 6>12>1 

/D " _~,_ ............ ' ' .' _ •• ,,', ,-I' ,~>{.'\lIIj, 

2 
1021 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.964

STAIIL. BERNAL & DAVIES. LLP 

GILa~~ ,J. t_~"AL. JA 

l iSA (:f'AVARRJA 

1.IO'oI,lS I. D","'" , GKU)ORVS, h lo:Nl) 

DAVm J. S.r. .... ~~~· 

UR£.~' li HAUL' 

·i\oootdC ... I/" ...... C ............ . ... _I ... 

I, .. " -.I of I..,.. :10«"""" ''''' 

,, '.IM" l", '~ij" ,tV M~IN[~SI"P 

13211 N. ~IOI'"," . Su"r. 211 

J\L'~lt'" 'l' )(~" 78731 

5H IlJ~-55;~ 

I'AX: (~I~) 14~~112 

~-w"'.~linl.w.wm 

ApriI 14.~012 

I.llnnt hl l' arln~r t Sta hl. Uf"nRI & 1>., ir. in AII. tip, l"Ul>, , .. "",lfu!l),\IIX·:C"nl\l"<'>~ t"('l(,c ~d 

th< "ind e",,'1:.Y ptQduttilln tax c",dit I PTe I "" quio~Jj K! possibl •. 

n.~ I'fe drives billion. ~rdQ .", in pr ",,~ inv«lm<t1' i~ h~m<'S"'wn Am~nt3n winll powef(3Ch yell]" 

h.,'e ... en lht wind Fam.5 in my al~ and other ;rUleS Around the tount!).' rev i, ali~t entire tomm"nitie

briOiP ~ ;n fOn!t""',;"" jC)h, at fir)!. nd maiolenarw~ jllbs in th~ lon ~ 1<'"". ~od ge"" ... ui"" n"~n .... f ..... 

<:<Jntrnuoi,y sth\lOl< and ho'pitul! IW.,.,. ,he lif""",,, C)rl he f"(lj"" ~ ,,<:.-ea i~g I"" aml).,."t ofPQwer thai "Ur 

ctounuy ,." from CICM. hl>mcgrown. a/ford"!:>I. ~Ur\:es is.an ~cdl.nI I),lng far ,I> 1<' do - and Inl, tll)C 

"r • .'dil providl$an inunliv. fOr 1"" .... ind ;ndus,, ' to) <oolinU<' hI d(:> ju>l Ih,l. 

Wind powe, 01", heir' p<ovilk crwrgy'l)nm.", ,hM dl) oot need I)f con,ume la rge q<lllllli,ie, of ,,..,.,. MIlN 

Irndiliunal f""'" of ""<I:I"&Y ~u ", "~n, ... d""l amOUll'$ ofw",.<, a k!;('U'ce lha, is bo:ton,;~ in",oaJ;in!,!Jy 

~r\:. in t~"-,,i" <\'8;00s. 

It is notjllSt jub-; thKI wH I be II)~ i "ithQu\ Ih~ PTe. Co;>t"",unlti.-s "HI "I.., I~ i'rgcc.pil.1 im<'5imemSHfld 

<lperttliof\S that " mtld g~~'.l1!.l " revon"" for t~ local tommun",,,,, For decaM. to corne. 

I urge .ho c",nmiu •• 'I) lake up an ~to ... ion "rthe wind .""'"I!)' ~ro .. h",tion ,ax cte{li, ,illh, away. 

TllllOl;. You. 
1022 

Statement of Susan Steinhauser 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.965

I, Su~w, S'e;/lhall)'er,lI prlll,,1 Amerlc"" /il'IIIS i/l C(J('UIOIlI Crl'/!k,l'I(Jrldo n'~l}('crfltll)' 

IIrge O/ll~re,U' 10 e.wmd Iht' .... Iml f!1Il!rl;.,' /INMlllrllrJ/l ,,~\' t;rlu/I, (PTe) (1$ qlllrA'I.l' tIS 

/HI~'slblv, 

Shlcl! II II inrpl'rml"e 111m lill! V' lil,'d SIllies I) rei/ul'/! Ir~ dl!pemll!"('/! on oil mill 2) relflm 

(0 tlMul1' of .:to/wlllie krr>I!'lh, II )<"'111.\-0/,,,101<$ Ihol Illr PTe lIIusllw extended, Till! PTe 

dr",l's bllliollJ' oj tf()lIl1r ~ III {lrimll' Im'ulme,,' ill IWml'/.:I'fMII tlmui<'11II wind I'Oll'U I'lIe}, 

year, {"errusill8 Ihl' "'"OJml oj poII'l'r Illar OJir cOUlllry gl'lsjmm dl'ilI!, h01l!I!gro",,,, 

tif/ord(l/J/" f<'J014rCt',1 is 1111 f!_w:t'lle/ll1hinsjor Ul ' /{J II" - mid lhi.! liLr eredil pr",·itI~$lm 

1!!"l!n(h'l! for the wi(,,/ i",III!'II7>' I(I ('omi",,,, 10 do jU)'1 'hal. 

f '''Rt' /hr <'()IIUllillet III /(Ik~ liP (II' nl<'/Isitm oflhe willi/ e1ler!;), prrn/u.·lifm /Ill ('r;:.:!il 

rig/II (m·a),. 

SIIS'I/I S,eitIIUIIISt'r 
1023 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.966

SED $ U$T"""ABLE 

£MEII6Y 

OEVnOPMEPIlS~ 

Name: 

... ddr ... : 

Phone: 

Con lact 

Submined Testimony oll~. OlsU1bute" Wind Ene rvy " .. ocl.lio" 

Sul>c:ommlne. on S."OI Revenue Musu,a. 

Hearing On Cltrtaln E.plring Tn P,ovi~;on. 

Aplll ~6, 2012 

Ke .. " &:nulla, CEO " CofoufK!e' 

J 17 Ro..te lQ.4 Ontario, NY 1 (51 9 

(SI!5) 265·23B( 

Mw!.lCf\uIII@oed._com 

My n"me it Kevin Sc/luite ond I am the CEO of Sustainable E"~f!IY OevelopmenlO. Inc (SED), a small 

bUsiness IoGaled .. Ontario, NY I .ubm~ Ihit IeStimO<1Y on be/l ~ of SEC ~nd in 6UJIPOI\ of lestim""y 

$utMmlled by \he Oilllnl>lJ\eod 'HInd Energy AS,.,.;;aIOo<! (OWEN 01 WI1W:to SEO " • -.nile, Wt eppr6cio>!e Ihill 

OQI>O<Iunily 10 """,men! on cella .. expirir>g p,,,,, osiooI.I ~.I .;g r,,,,,nlfy impacI cu, industry."" 'lUI business, 

SED Os. a leading llevekl\>l!' and ",.uo"", of di.tribulI.d "",I\d _illY . yllt!ms in the nDf1t>ea.t w~n ""'" 6 7MW 

oIin.\:IlIo!<I ""!,,,cily to "ate, SEC _ s loon<!e<l in 2002 aM ..... 50 projects hav. gen.r.~ mo'" tIIan'O 

million ~Uow,," ·oo "ra of clean, ,,, __ able eleclrldl), Tile . ",en"'" cl \helnVfilrnenl Ta, Cf9dit (ITC) kS 

alllcal not only 10 ensure lhelonSi-lerm V~ ;I ~ of O<Jf boIniness ond lI>e 10 people ~ "",plo~ •. bur a*' 10 our 

dien,", Iookin!IIO ,MuOI'I mH Iong.lerm ene'gv COSIA, :IIl_II • • lhe" I<JSUPlibilily IO .M19Y price I'OI,nility. 

· Olsllibuted "'ind," aloo oommo!1ly ",re"ed 10 . s "smalr or "community wind.' inl'ONes IIIe use of typically 

sm r .. Old I~rbln,.. . t hom .... fI'".... ~ .... s .... and poD/IC 'acililit!. to 011_ oil '" " POrt"'. of OfI.SJIio 

_'QY consumol"'" SEO .. ond M_ P,olects installed '" Ihe laO! 5 years M ..... g"""fllled ove, S7 mill ....... 

.... e'QY sa."v,g. Ie"." die"!! and no "" ,,11owe<! GUt' company 10 <Ioul>le in Blze In llIe laol5 yea .... Tnls 

" """"S. ""uk! not l\;IVe Peoo" real:i>&<I w"rtnoul 1M P<eMnr:- orleder>! talr l>Itnefils. li ~e !/'I9ITC_ TI\tie .re 

p!jblic ~ being M ne<I directlY ",10 local p<ivale In ..... O!menl 

eommunrry oM o .. uitlulea _III. ay""",,,, aMllfowitlg oegmen1 oflM ,ene ... tIIe ene'gy TMUSI/y. II 

rrwr_ole<lS 6 .-'''''01 of U [l{!WwiM P'ojt<:I' In tn. US In 2010 Or><! IMlligure ro&e 10 over 7 pen:oorll irI 

2011. A uniQ .... aopee! 01 most commun'ty ,,"" dlStnIluled .. "'d p'"jecu II Ihal k>ca' ciI"'''''' and communitin 

ha ..... an ow"""1IIp stake in roo.e PfOjeclll. meaning ma.~ 01 "'" b<o""rolS of ' '''' project mmaon In the 

POWERING 

YOUR FUTURE 
1024 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.967

oommunily, ' ''''Ii<lg claan """'9Y _lop"",nl IhfOlogn ,an_able energy p<Odua."" , ,ed"clrIg cosIO lor 

ele<:trOcily, bern!folin!lloca! ecooomills, gnd dr","'11 job o:r"a\loo, 

SEDJ"gu •• ' tftnoion of the " .. ~ !~."'II""e'.l''''''l1 Tu C'&dil..{ITC) f<l!' all_""ww,nd,power ~I$ 

!!l!'~h ~O!§, w~ich ;. oruejalto tIrto eootir1l1@<1gr<rwlhofth;'rtrntrgiog rndUoSIry .rK! <OU, bulIl",,". T 0 dJI~ . 

<our llloiectl ho"" ",hed ""I,,ely "" (lit! ITC 10 obtain ttle III!'OelAry ronancing to o.ewlop ,,'III .,51aU wi'lll 

lumiM'. 

Wi'" tile """"rlajnt)' arouna I .... extension 01 tilt! lTC, "'" cllenl. n."" bei!n 100ceO to!le~ projects "'at coutl 

De pr\!!>llling rcr CO""lr""' .... and g""'JUog &"""""'"' t>enefihl., 2013 A •• r~u~. SED has t>Mn MfQBd 10 

pur 011 investmeroll. su"" a . new h~e. or eQuipment Olio our fimr , Tilt! _.ibiIIty of It>e ITC 1)01 being 

ekUlrtded, would pooe de",ul3~ng con5equences to Ihe sul'li\lal 01 OU, b""IneH . as _II '" 1M d"l~buled 

wind energy iMUSII)' u a wllete. 

For ltoe r ... ""ns Alated _bove. we "rge lhe HOkIK Ways ,,11<1 Mea"" Comm;n,.,. 10 app ....... eaM ... rod to the ""I 

H"" ... of R"Pf'!"'nlal~slovooJatior1 ",.t would ""mediately ""end Ine § (8 ITC .~"n II'rough 2016 lor ._ 

...... of ..... rod _, prcje<:ts nu. e,leo""", would reo"" .. imme<llale ec:oocmic mu""ts to "'" proJ&CIS arK! 

0'" comoloy. ""u,rlng lOCal ,,\Vestmenl and craalinO j<>l>l 

Th.n~)'O\' Igo;n Ie, I .... <>I>PortUll"Y to ..,tIm~ I/leoe commenta We Ioc~ 10 your INdtIr.hil> on Ih .. malle, to 

ensu,," Inal "'is PfOIIl'"'"II OIaustry wjl COOlinue 10 glow 

Chee~. 

Kev" Sel1u~e 

CEO & CofooMer 

SUsla"",ble Ene'91 Oe"""'pmenlS, Irrc.. 
1025 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.968

April 24. 20 12 

TQ: Honorable Davl.' Clmp: Chairman 

Su [a e.sYmlegi s 

Bon Ikl;.,~ 

6)(f-~1'J·i)JOO 

1' 6~O-SI~-W'n 

18708 Dean Sir"" 

SI. Ch .... c'. ILWIN 

l>c ~~ fe <" iI;uo~bl wlll!W<::S "o"" m m 

,..",w.'"~Ia,"Mlo"",c."gi<-."" ... ,c"m 

M cmtK,rs- of the Congressional Ways und Ml.'un~ Commiuec 

Regarding: IIc'lring ('II Certn,n E~piring Tax Pmv .~io s 

D~~r ChaiMan ~rnp ~nll Committee Membeo: 

[ ~m writing lhi., kncr urging Con~r ... ss HJ extend lh(.' Pmducliull Ta~ Cn<dil (PTC) for 

renclVublc. wind cnergy a~ soon as po ~ibk 

In the hesl inll.'I'CSI of slubilil)' fOf :m industry Ihu! hLlS crcll (~d job!; and \:~ret'r.; herr in Ihe Unite'! 

Slates OVl.'r !h~ paS1 five )'ell.,. during lhe most cmnOl11ic~Jly c hall enging time Since lh~ 

depre>siun. <',)I tension ()f the aforementioned 1.1,\ provision il1~un: s continul'd ~'C{momic growlh 

whill.' addres~in g the major issuc~ of energ y ilriec t~hilit , national energy S<'~uri y amI 

~1"'im011l"l1t~1 stcwardshiil. 

Congress ha~ and cont;nue~ [{) provide t:t.., provisions fPl" the {'Q~ I. oil, ga~ and nuckar industri es. 

It's liInc Congress provide, long teno suppr>n for 0 clc:>II cn~r!;y stmtc!;y (inti economy by 

extending the PTe. h's lime COIl!;r;:SS trea\.> ill! forms of cnergy gellcr.lliolJ with equal Ia~ 

pNw i sitm suppon. 

We 11.'~ Ii e Congress nn nOI "f1ip a SWiICh" 10 ~dd ress our ncrSy s~ ues rel,ning to fo ~s il fuel 

b.~d energy generaliutl. Howev<,r by g<'lI crllling c lean. rencwnhle ctlcrgy in our communities we: 

~in thc Inul,ilionlo" local. energy gClll"r:ltioll strJlegy tllm c\'·ollomic:llly. cnl'ironmcmally ~nd 

socinlly benefit, each ;lna every conslilu<'lll. 

00 behalf of our C()lnmunil'cs. our children and our gr~ndchildl"l'n I urge Yol,lr consideratiun imd 

uil porl th i~ mron ntt"~ pmvision. 

I lhank you Chuinnun Cllmp and Conlloille.: Mcmbers for ),our immediulc tlClion 10 extend th~ 

PTe. 

Be., t R~j,\~ . 

Bob Beli..:!; 
1026 

Statement of Tara Truett 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.969

Tara TnlCll 

61118 Chambi.'rlain Rond 

lIamilton, NY 13346 

IUra.lmcltl/t,\ Uhl ~lllll 

Supplemental Sheet 

Title of I !C3ring: t!earing on C~nain t?xpiri nl!- 'fax PmvisilJll' 

PU).,'I!- I I)} I 

I urge YOlito !!'"ND the Production Tax en:"it, and an) lither fonn orfeuernl suppon nf 

induwi~1 wjnd ~n~'1);) . For IWO decades. the wind oompani~'S h:we bcnefik"<l from tax 

h~lts ~nd other regubtory prol'ision~ ~nd still they \\'~nt more, NOne Hflhc benefits 

espoused hy the \I Iud companies, u~h as dCJm en~~.le5S pollution nnd c~rbon 

prohlems ha~e rllut<ori!llize<i. nlt'se comp!lnies are in\en:sted in timUlcial !,(aill and nnt the 

l)u'11on."<I gains they ci3im when Ihey com;;- w3ving thdr contracts 10 needy famH:rs and 

landowller.;. SlUp giving the ,lind comp~nies money. which Ihey in lum usc to invade 

small ruTtlI comnlunitil:s. luminl!- neighbor agaillst ocighbor and JeSiroyiog Ihe homes II,' 

hal'e in' ~Sled our liI'i:S building and maintaining, Iflhe Wind c(Hnp(l~;cS c:m pr.;.vidc all 

thl')' ~y and mak;;- a profll "ilhoul ANY governmental help. lei them I.!,o for it. Wak:h 

how quickl~ they crc<:p a'llIy! Onc~ Ihe fimUlcial h<'ncfil~ are removed. lh<'~' \I ill !xc gone. 

TIl,,), 1Irt'. in il for Ih.: moncy. o()llhe clll'ill)nment and l'Spccilllly nOl ror the pt.'()ple. 1I0ne51 

nardwoodng jlCople go hi \lork C\'~'T)'d y and make u living wilhoUl gOI';;-nliTlelll 

:!iubsidic$. cOrp<lf"Jlions and hugc t'ilcrlo':Y companies should do the smne. Please STOP 

spendingoul IaN doll~rs \0 line lhe pockets of lhe induslri31 wind compal1i~s NOW. 

Sincerely, 

Tara TnlclI 
1027 

Statement of Tawny Mackey 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.971

".mo,: Tewny Mad:cy 

o'l.nl •• """ (lI .ppHublel: Ve, ta. Am"';\1I11 W'ind Teehnnlogy 

Mdf~": 2 130 Kyel;'lld Lan~, Fort C<l nil1~' CO 80516 

Pnonr "uml>elc 970-674-6359 

C"nIOCI E,man ~dd"''': ,~ ''~~:.!!.., ""U"~,,...-, 

~ of It ... inl: ~ •• n"ll On "''''i" hplNn&T •• P,ovi""", 

Dc~r Ways & "knns C<lmmillec: 

I am wriling loday III implQre your .. 'mnmiUnCIIIIQ e~tcJ,ding the ProdllCtiuII Tax Credit rur 

rt"tlC'wable ~rn .. rgy. I ~now thai your members h:we w~lJ-fund('d friends in the Oil & G~s 

inuustries who "wid like to~'" re","wuble e,,,,~,,.likc wind. prn'nplly quashcd. Ih,)"·,',,cr, ! 

would like to impress the very real i"'p'.ct on real J"'op!c that "ould occur irlhe Production Tax 

Crcdi1 is "lImwd 10 ""pire on 12/3 1112. I <I<;In'1 if;lY 1his 3.. 3 prQ<lUCtiUIl worker," ~ I have a 

white-collar position within VC!tas. [luI my job (which is bein); oUlSOurc~ 10 India in June, by 

(he way) is 10 help sreat Americau wor~crs ~in cart'Crs " ,jtltin Vesta$. giving (hem a sus(aill~blc 

f.,( ure in rellC:Wllbk (-ne!}!y. THESE JI't' Ihe people that will t>c grJvdy jnlp,~clcd by 0 PTC 

~"pi,mjo" . N<Jl only w\.ll indjvid(~II ~ and their taUliljn i)C adv"rwly aITcclcd, th~ cUlire ~'Co"omy 

of (111: stale ofColof"Jdu "ill t>c negativelyaffo:<:ted. 

PlEASE EXTEND THE PRODUCTION TAX CREDIT. YOU TOOK AN OATI! TO 

DEf END THE CONSTITlJnON AND TO REPRESENT TIlE CONSTITUENTS WHO 

ELECTED YOU. EVEN IF IT WAS THE CORPORATIONS n!J'THELPE() f UND YOUR 

EI.ECTIONCM1I'AIGNS. 

I'LEASE STAND UJ> AND DO WIMrS RIGHT FOK THE Al\I EIUCAN MA.IORIT\'. NOT 

TilE AMERICANS TIIA"!" I rOL() THE MAJORITY 01' Tl IE RESOURCES IN ' ·111 $ 

COUNTRY. 

r 

TIIATISALl. 
f 


79894A.972wwoods2 on DSK499XVN1PROD with WAYS & MEANS

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1029 

Statement of Teresa Cameron 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.973

T~r~ ... Cameron 

214 Bonnv Knoil R<l 

ROle"lIle, CA 95678 

(916) 78]·3644 

lQm.@,u!tt't1t.net 

Apri) 24, 2012 

Hea ring 00 Cerlain E.pirinK T.~ P'oVisions 

I, Te,e", Cameron, rt llred inic~lliIbor3tory Scientist, espectf"I1~· urge Co ngress to edend the Wind 

EnerlV Production 13. credit a. ~uickfv as p""ible. 

Th ~ ((ty of Ro.eville (Ca liloolal UtlliUes u.e. a variety 01 renewable re",urces, Including wind, to 

gene,aw elecl/lcflV. Con\loulogl he \< •• credit would allow more buslnesse.\ to delve into tlli. industry, 

gene'ating clean eo~r8V and jobs. Tni. would al", allow utillW companies to purchase more wInd energy 

w!llch woujd in turn lower utility costs. T~is would be a win-win sl lU atlon low~iJ1ll energy costs w~ilt 

increasing 13K revenues from additional buslntSleS coming on line. 

/\gain, 1 urge Congress to extend the Wind Energ'! Productl<:l0 Ta x. 

SIncerely, 

Tere,. Cameron 
1030 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.974

I

- I INVUTMHH r - COM I'ANY 

:I. 7j,,; INST1TUTt 

, .. ," .. , .. "~W,,,,,,,,,,,_,,~,,,,.,_ 

,.,/,><-\- " ...... ~, ... 

Stotement of the In"eSlmenl Company Innitute 

HUr',,!! "" Certlin Expiring Tal! Provi.ion< 

Subcommittee on Selett 1iI •• enut Mea.ures 

Committee on Way< and MUns 

United Suu. House of Represent. tiveo 

April ,6, ~O1> 

Tht Investtnoont Company In"ilul e rIC'",' "PP<e<:"' OI tho oppor1unity '0 d~~t>o for 

the Subcommln ... 1M 'U<O/l, wky lem~a,..,.la" prolll,ionslmpac!ing the comp<'lIti>o01lHS 

of U.S, rtgulaled ,"-..e.tme"! compan;". ("RIC,·) slloUld ~ made p<'rm ll~n , These 

pro.isions ,.Om "",00 policy j.x!gm.mn mode by this Subcommittee and Ihe [01'9'"'" on 

fund.m~ta l n",e!l>ring i" .... ,mpac,",,!! 1M atlolity 01 RIC., """e common ly known", mutuol 

fUf\d,. to ''''''1''''' w;,~ foreign ~. fOf I-,g" ;""."0", 

The 1(1 aW,,"ud l .he Sub<ommi e 10< examining <ar<!fuUy all expiring p'o~llo ns and 

5Hkl"9IO ~k,,- pe'man~nt those that ach'en Import~O! 100000-I01m ObjKtIw' , <I<h., 

'1'\1""'9 o<<>!>Omk g'owth . od job <",.Ii"" and I!fIh."dng m.. <oml"'!II .. ~no .. 01 U,S. 

bu,jn~~ in the 9101>.11 mar pl3( ~. Tn.. prO";<ioM d;,cu,,~d Mlow ""hie •• Ihese 

Dbj. cH ...... by """mpllng fO/@fgnin"""o" in 3 RICfromU.S. la. on co<13in amount. thaI would 

~ e~pt if ,-ee ......... dk.,,'Y by lhe .. ln ...... tor. 

The ongo'ng tempoury Mtur. of these pftl'lkion. (.n.<led In ,""" and l.nded 

tw,ce), howe".r, 1im1, their "'.fuln .... Mak;,,!} perman.,-,llhe", p'cwision< woUld enhance 

""b:!; ~"li~1Iy t .... oltfiKl,vene .. of RIC. to fOfeign love, to,", M.ki"'J lhi. ,h."9" .'JI<!dit",,,,I~ 

w<)IJId be i»rti(~.riV ben.flc,al b@tausewithMld' '''J....,.t beimpo<ed'''' all di~tnt>ur;on ~ 

, n.o ", ... ",,,,",c..n.-., "'.~ .... " ...... ,_01 . ,....;._ .AU..- ""' .. , ... '" ,_po .......... ~ ",",uoi 

~\ , __ '''-'';'' •• d>&oqo.lf>dld ....... lH fi).""" """- ,""""" ••• " ........ '00«.10_ .. '0 """""'"9< od" ......... '.II"l~<II1O( .. <I..-c..-<k,_to ......... __ ""l. ..-..j~.., ...... , .. '"' ...... o#lund" ,h.", ....... MId"'" _' .......... ,M .... , .... ",0. .. 0#11;1 """'9< """" .... " of"j.! _""" ....... ..,., !IO .. _ ...... _". 
1031 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.975

made ahe'these provision .... pi.e (which al'eady has happ .. ned, a, dl,cu.sed below, fo, 

sha'eholde .. of many RICs) 

RICS {n ttl .. G/Q(>a/ Ma,ketplace 

Indl"idual, a, ..... nd the globe ~". b .. tllmi"9 inc, .. a slngly an,act"d til funds to In"e! th",' 

dl"",..., ;,we.tm""t """ds, Worldwide mu"'al fu "d ~ • ..,tstot~led $23 ~3 trilhon u of 

S"pt"mb»']0,20.11.' Th" U.S. indu'lry· •• ha", of world wid" fund ass,," has d"dlned. As o f 

September 30, :lOU, Ie •• than h~lf olthe worldwide mutu~1 fu"d anets (n. t,;IIion) were 'n 

RICs. 

RIC. oflernume,,,,,, ad"a,,'age. tha t should ~ <lltracl'"e to lorei9" I""""to' •. I" 

addition to the e~p"rti " provided by the Indu.try·' portfolio manag"" and "naly'to., 

particularly with respect to the U.S. capital marUIS, the U.S. se curities laws p,ovide .tron9 

inlle.tor prot"ctions. Fo,,~, ign inve~ors' holdings ofRICs, however, ar~ negljg,bl~. 

The Inlemal Revtnu., Code ("Code") (rea'eS ("rlain comPf!Utiv" difficulties for RICs 

."ekin9'0 compel" wilh foreign lu"ds for foreign]"""sto ... These difficulti"s an .... ~caus" 

RICs are corporations Ihatdl<l"bule their Income annuallv as divid"nds_ Whll" Incom .. and 

COIpil"lgOlln, a re not .ubject 10 U.S. withholding ta~ I.lnd~r ~ion 1441 wh~n p. ld to" 

indiv.duallnv"SIOrwho is neitou a citizen nor resident ofth" U.S. (. no,,-re.idenl alien), 

dl,,;d~nd, ,or ... ubJect 10 Ihl. w"hholdlng!.Oj(. Thu~ .. "b."nt a Cod .. prov,,'on prollld;n9 Ihat h~ 

1"~ ch~r cler of this income ""ows through" 10 ,ts In"e~ors, RIC'ha'eholde", a'e subject to 

withholding on <ert;aln amounl~ that would be e""mpt from withholding t8~ if 'e<ei"'"d d;,,,clly 

by foreign inveSlors. 

The Code do". pro~lde flow.through t"",tm"n! tor Ihelong-I"'''' c~pllal gains ,,,all.ed 

on RIC l>O,dDtto .... ,,, ... ctlo ... ,.. Spcodflully, Ih" Cod~ u-eon d'>t>1b"toDn. of long-t .. "" capllal 

9aiM"~ a "C<lp"al 931n dl"id .. "d," tnl' flow .tn,ough provt.lon "" .. mplS a n"n_'~ld"m all .. " 

inv .. <tor f,om U.S. wllhholdlng ta~ on ~ RIC's lo"g_t .. "" capital gain<. 

No comparabl" flow .lttrough solution l~ provid"d for int"'~t .. nd short-t"'m cllpltal 

9a;"S. Th" flow' l hrough treatment for thue type. of income, asd;"""ed belOW, is provided 

only by the ""piri"g pro"l.ions. 
1032 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.976

SKlion 81~(k) .... M added by the American Job. Oe"tion ACI of 2004 ' 10 ~empl 

foreign ;nv~tor" in an electing RIC from U.S. withholding 1"~ 0'1 "interest·related dlvidend~· 

a"d ~short-Ierm capltal9a,,, dividends,- 1"lereSl. ,el~ted dividends . re ~mount. attriblJ1.able to 

~n el~Clin9 RIC's U,S.·sou'ce 'nle,e,t 'ncome; short-term capita' !!"i'! dividend. ",0. amounts 

a n rlbut"ble 10 an elec1in g RICs .hor1-term capit"l galn •. Section 8].{k) perm,ts electing RIC, 

10 "flow th,ough"to their forei9n shareholde's the characte,ofthi. income. 

Prior to .ection 8].(k),s "nadment, fO'''i9n irw,,-. o~ in RIC. were subj"ct 10 U.S. 

withholding tax On amounts atttibut<>ble 10 RIC.' interest ;""om" .. nd 5",ort·te,m capital ga''1' 

because these am""n\$ w~re Ireated 'mder Ihe Code as o'ditl .. ry di\lid .. tI,h.' Conversely, 

fo, e'gn 'nvestors are nol subjeci to U.S, withholding \ .. " on 'nte""t and shan-term capital 

gain. if the In"""m .. nu inslead are made di,eulyln Ihe underlying secu .. lle. 0' Ih'ough 

foreign fund S_ aecause.ofthis dis parate tre atment, the Congre s. en"Cled se'tlon 81'(kl to 

lev e l the playing field and encou,age fo,eign inve'lment in RIC •. 

"'S originally "nacted, howeve" section 8]1(kJ ",a, e ffeclive foronlv three a .. , 

beginning w,th a R!C'~ (;, ~t 'ax~ble ye~' beginning on Or aft er January:a, <lOOS, Th,s section w~s 

extended IWice, fa, two years each t,me, in -::roo!'! and ~010. Thus, s ectlon 8]1(k ) currently i. set 

to expfre for dividends with respect to tax years ofRICs beginning all .. , Decembe, 31, . On_ 

S"Ction '-lased) 

SeCllon •• 0S(d) ,,1.0 w'" ""acted by the Amen,an lobs C,eatlon ACI of 2004- This 

pro"ision e fl<:<:ti"e ly p.ovides for eign investors in a RIC Ihat ha.-elected ~ctlon 87.jk)'sapplication w,lh the same nlate ta~ ireatment they would receive iflhey held directlv the 

portfolio .ecuriti"" held by the RIC. 

A non-,esident alle n gene,ally can Inven in U.S. debt obhgat(onswOthoul anveonee ,n 

thaI these assets would be trealed ~s prOpCrty within the U.S., and therefo'epart of the 

indiv,dual"s 51'0"" estale subjeClto U.S. eSlate ta~, should the peroon die w",He holding Ihese 

nset>. Pdo,to ...ction ':u:rS(d)"s enactment, howeve', ,f Ih e ,..,me investment ""e re mad ... 

indj'eclly through a RIC (such as _ U.S. Gove,nment bond fund), th~ RIC sh",e. would be 

""aled as p,operty within th .. U.S, and subject 10 th ~ U.S _ estal~ tax_ 

Unde, ..,ction oS(d), RIC sha,,,s own"d by a non_resident an"n a,,, nol tr"at .. d a. 

property within the U.S. in the ""me proportion that Ihe RIC'sa •• ets would blOc t,eated " • 

• Th. ,.g .... ." w'",holdi»; ",I.,. ",r>tw."" ' 0 &""'1;1 ~ III(; don..." I.<t ltow·,h'""'-"lh .... ,m .... ~n-dr< ..,co"'" 

~"'" 

, 
1033 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.977

sOluated outside Ihe U.S. If held dl",ctly by the inve",o,_ This proportional dele.minallon is 

m.de at the end of the RIC's I .. t quane. b,do'e Ihe inVe.tOr 5 de"th. 

Se clion ~105CdJ thus provide!an e.tate la)[ "look-through" rule for RIC sha res that 

corresp""ds t o Ihe interesl-,elaled dividend now-through exception 01 secli"" 871(k), II 

$"ctlon B71(kJllad be" n "nacted without tile corre.pondi"g e",,<;Ime n' 01 section :nosed), the 

inlere si-re lated dividend p,ovislon of section B:nCk) would nmlla"" encou'''ged RIC 

inveslment<: by .. ny non_.esident alien ,n""storwnh e<lat,,- I .. " liability conC"'ns_ Section 

210S(d), the,,,lo,e, Is an import'ant " Ieme" t o l a"y lundamental"'uctu,ing Initiall"" to mak" 

RlCs mOre (.Ompelitive in Ihe in'ernatlonal ma,k<::lplace. 

AS o<'iginally enacted, however, s e ction 210S{d) was effeetOve only for indlvid""ls dying 

du.ingthe th'ee-year period bl!<]inning January " 2005 and ""di"9 on e<c embe,]~ 2007. 

Thi' ''''''li'''', like seClion B71(k), was e"le nded Iw,ce, for IWO years each I,m". SeCI,on HoS(d) 

in a ll cases ha s e><pi."d; only individuals wllo di"d b"tween January', '00'5 and O.wember l, 

20H we,ecovered. 

Se ction S71(k) a nd section "05(d) a,e import"nt 10' RlCs ... eking to compele with 

fo,e ign I"nds foe loee'gn j~vestors. The ~dditional investment in RICS, ,athee Ihan in foreign 

hinds, benefits U.S. mone y manage " (who hi,e U.S. workers "nd pay U.S. t"us) "nd Ih .. U.S. 

capilal m<>.rkeu . 

Th ..... p,ovisions, ". d,scussed above, provid ~ fore'gn Inv .. ~{o ... in ~ICs wllh the """e 

U.S. tao< treatment lhey would recei"" jf they Invested di.eclly in a RICs unde,lying portlolio 

securities. Insome re""ects, it should be nol .. d, eve n Ihese rule. do not go r.,r enough to I .. vel 

Ihe plaY"'9 (,eld . for example, the e5lale of a fo,eign investor in a lo,e lgn fund will nOllneur 

any U.S. <>s1I.le tax on the fund sha.es -even if the. fund holds Dnly U.s. equities- whe,eas a 

lo,eign investor", a RIC holding Ih .. same securil ie s would be trealed as having property 

situat ed in 'he U,S. ".-eSl~ t .. 'a. purposes. 

The t emporary n"tun!: o f ... etion 8]1(1,) and section ~0~5{d), however, ha~ limited th .. rr 

util,zation by RIC. and the .. "lIrac"vene .. lofore,gn ,nvesto,s_ Many RICs, fo,example, h"v .. 

b .... n sufficienlly UnSUre ollhe p,ovlsions'long_teem viability to ,neurlM s'gniAcanl 

programming costs fo.,hepossibility 01 only t .. mporary ben"Ats, Th" .poradicmanne, In 

whichlhese provisions have. b een e xl .. nde d has do"elillle loconv,nee R.Cs thaI Ihe ben .. fits 

will b e IO<Ig-la5Iing. 

Uncertainty"', o h as impacted inv ment d«isionsby foreign investors. Many such 

;nv""o,. h"ve been unw'illing to make long-Ie,m ,nV .. stmenls;n RJC. Wilhoutalong-Ie,m 

a.suoance th at lhe now_through benefits would be a vallable_ Some fo.eign InvestDrs who 

ne verthele ss have ;"ve sted 'n RICs have .edeemed Iheksha.es b e fore 'e,e lv;l'.9 a distribution 

that would have be"n .ubjecllo U.S. wit hholdingl"X only bec"us e sect;on S71{k)', a pplication 
1034 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.978

h&d not been ~~tended bt!fore" ~pl .... d A s.,P"'''t~ problem "fiws fo' thow fo.e'g" '''V"'''tors 

who rem"i~ in the RIC aner .ectlon 87.(k),s application h". ""pi'ed. Specifically, the ... 

inv .. sto .. ell" be fo" .. d to file U.S. ta: ..... tu.ns to r .. cover ta~es, "" amounU anrrbutable to 

inlerut and/orshor\, term upit .. 1 gains, that .... re collect ed by the RIC on distribvtions made 

du"n91he period ~fter section 87~(k) e~pired .nd before it wa,.-retroactively reinstated. 

Unlike most otherexpidng prov.s.ons, which gener"lIy need not b.. 'esolved unul 

u Kpay .... a,e pr"pa'ingto f.le taK ,ewrns, the flow·throllgh provi.ions involv .. withholding 

tax'" and mould b .. "ddre .. ed b .. fo,,, they ""prre. 

The Intemal Revenue Code should be .mended to m"ke permanent the flow· 

th,ough/look·through treatment of ,,"cltons 87~(k) and ~olS{dl. Specifically, ... ction. 

8].(k)(.)(C)(v) and 87.(k)(l)(C)(V) - which (ontain the "te-rmlnatlon" date for t h"- f1ow·through 

of Inte .... st·' .. la ted dividends and shott·term capital gain dividend. ~a s well "s u et)on 

nos(d)(J) - which (ont .. ;n$ t h .. "te,min.tion" dat e for the est .. , .. ta~ "lOOk h'ough~ rule -

should be ",ick.,n f,om th .. Code. The . .. changeo will enhanu, the inte,,,,,tional 

competltivene •• o f the U.S. fu"d '''du"tty, thus "n(0"'''91''9 fo.elg" 'n"""lm .. "t i" RIC, ""d ,n 

the U.S. capil;,1 mar~ s. 
1035 

Statement of Theresa Ruscitti 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.979

1 urge the committee to extentl the wind energy production tax credil. 

Thank you, 

Theresa Ruscitti 
1036 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.980

THERMOCOR LLC 

SUBMISSION OF WRITTEN COMMENTS FOR THE HEARING RECORD 

U.S. HOUSE OF REPRESENTATIVES 

COMMITTEE ON WAYS AND MEANS 

SUBCOMMITTEE ON SELECT REVENUE MEASURES 

HEARING ON CERTAIN EXPIRING TAX CREDITS 

APRIL 26, 201 2 

Mr. Chairman, Ranking Member Levin and distinguished Members of the Committee; 

ThermoCor IS pleased 10 submit written comments for Ihe record in connection with the 

April 26, 2012 ~earing 01 the Committee on Ways and Means Subcommittee on Select 

Revenve Measures on the Important topic 01 expiring tax provisions. 

ThermoCor, a company based In Moraine, Ohio, manufactures Vacuum Insulation 

Panels (VIPs). VIPs are used as insulation in refrigerators to signilican~y improve 

energy efficiency and help manufacturers comply wrth federal energy efficiency 

standards, The manufacturer of a refrigerator made in 2011 which retailed for $400 and 

which used 35% less energy than the current refrigerator energy conservation 

standards qualified for a S200 tax credit under IRC section 45M. This tax credit was 

reauthorizad for one year as part of the tal! extenders package Congress passed in 

December, 2010: that credit expired on December 31 , 2011 . 

We understand that legislation is being considered 10 extend the Section 45M ,ncent,ve 

for consumers to purchase energy effiCient refrigerators. If Congress deCides to extend 

that prOVision, we urge that the legislative language be clarified to express what we believe to have been l/1e intent of Congless from Ihe beginning -l/1al the "made in l/1e 

US' requirement under Ihis section extend to the refrigerator's components that atlow 

for the efficiency target to be aChieved rather than simply just the assembly of the 

lefflgerator. This Issue directly impacts our abil~y to grow our workforce and expand 

our operations and thUS we urge Congress \0 remove the tax credit for remge/alors with 

foreign·made insulation components. 

REASON FOR CHANGE 

To qualify for the section 4510.4 credit, Ihe refrigerator must be made in the US. 

However. the law does not specif,cally require Ihat the inSUlating products, the energy· 

efficiency heart of the refrigerator. be made in the US. Many refrigerator manufacturelS 

use VIPs from China where the cost of prodllction is somewhat lower (S4 10 S10 per 

refrigerator) than US-made VIPs. To maximize US job creation, we are asking that the 

tax credit language be amended to require that l/1e insulating components, including the 

VtPs, be made in the US 10 quatify the ,efrigerator as ' US-made, ' 
1037 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.981

US-based VIP manufacturers pro~fde hundreds of high-paying jobs in Ohio, New 

Me~ico, Massachusetts and California, Maodatlf'lg US-rnaf'llJfactufed Insulaliof'llof 

credit-eligible refrigerators will create hundreds more US jobs. while addif'lg only a lew 

dollars to a refrigerntors cost that would f'lot be passed Ofl 10 CQf'lSUmefS, 

POLIC Y CONS/DERA nONS 

The legislali~e language we ask you to support would mandate that all insulation used 

in US.bulit fefrigerntors eligible for the sectiof'l 45M ta~ credit be manufactured In the 

United States_ While the United Stales welcomes products from our trnding partners to 

ensure that our consumers halfe choices when shopping for appliances. we belielfe thai 

the federalgOllernment's support for energy-efficient appliances should be IIm~ed to 

goods that in<:rease US jobs, support US-based research and development. and ensure 

that the refrigerator not simply be assembled here, bul the energy-efficiency 

components which make it eligible fOf the credit also be stamped "Made If'I the USA." 

DRAFT LEGISLA TlVE LANGUAGE 

Sectlof'l 45M(f)(S) strike ' _' afler "feel" and Insert ' of which an if'l$ulallof'l compOf'lents or 

products utilized to achieve the defined energy staf]dard shall be manufactured if] the 

United Stales." 

Brian Koh, 

Cllief E'Xecutive Off<CE!r 

ThermoCor lLC 

2900 Dryden Road 

Daylon. Ohio 45439 

{937)312-0114 

bkollr@acutemp,com 
1038 

Statement of Thomas Grey 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.982

PagclMI 

THOMAS S. GREV 

DEPARTMENT OF MUSIC. STANFORD UNlvERsrN 

BRAUN MUSIC CENTER 

W~y~ ""d Means <;;"o",,,,ill,,,-, 

Was hingmn.O.C 

STANFORD. CA 9 4 305-3076 

TSGREV@lSTANFORD.EDU 

PmlolJ Vallcy. CA 

24 April "20 12 

6122111 

I. Th(lm~s G!"t!y (Professor. MUSIC O~parfillent. Stanford UniverSity, Stanford CAl 

respectfully urgeCongrE"5S to extend the Wind energy productiOn tax Crt'dit I PTt) 3$" 

quickly as posslbll'. 

Shared~ta\ls on your perSpI!ctivl' as to why Congress should nOI walt til extend the 

credit until just befort! or ~ft~r it t:Xpir;,s. 

- Exampl~ : Th .. PTe driv;,~ billion, of dollar!; in private ir\V~s m~nt in homegrown 

American wind power ~ach year. I have seen the wmd farm near my house revitalize my 

community - bringing In wnstruction jobs at first. anti ma(ntenancejobs!l1 lr~ long 

terlll. ~t1(1 generating revenue for 011t conHnunity schools and hospirJls over· ,he lifetime 

of the project In,re~sin~ the amount of power th~t our tx/ul1lry gets from clean. 

hurnegruwn. afford .. ble rtsourc~s is an e~«,I\t'nt thin!: for us to do - and this lax lTedit 

I'rovides all hKentive for the wind illd.usoy to ,om1"ot' to do just thal 

, ' urge thecomm n~e to lake up ~n extension of the wind energy prodncrion ,·ax crl'"dll 

right away. 

Yours Irul)·, 

ThunJ:is S. Grq 

Pn:ites,;or of Mysic 

Stanford Unk TSi y 

1!J;J<) ". <mnf"ni.<'du 
1039 

Statement of Thomas Wayne Jackson 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.983

I, Thomas Wayn e jackson./mm Canterbury, NH, respeafully urge ConlJress to extend 

the wind energy product/on tax credft (PTe) as quickly as possible. 

Here is wllJl the PTC should be ex/ended immediately. 

The PTC represents a super in~estmentfor the country, with each dolor in~ested 

producillg Illree or four in direct amI indirect business. It doeSll't get much beller 

than Ihol! The PTC drives billions afdol/ars ill private investment ill homegrawll 

American wind power each year. Wind farms brillg in construction jobs at fin;!. and 

maincfmU!ce jabs lacer,generoting revenue for our cOnJll1ullities .~chnols and 

haspitals over mlllly years ... the working life of a Il1ndem windform is 20·25 years .. 

Increllsing the amoulli of power thn! our Cflllntry gels from dean, homegrown, 

affordable resources is (lIl excellen! thino [or us to do - and this tax credit provides 011 

incentive for the wind ind~try to continue to do just IhaL Wind turQines are 

beautiful and the {uel islor ~er free.! 

However, because wi/1cf turbine components are very large, complex and high lech, 

there are many subsidiary illdustries Ihol are part of the equotioll. The cast iron 

Ilocelle frames, far example, are sa large thai only a few c6mpDnies are able to cast 

them In a process that takes many weeks,from ca.~tiny to wring under cantralled 

w/ldi/iol15. There are fastellers, genemtars, gearbax('s, electranics.cables etc. each 

sourced from American companies, tryinll to str.lge a comeback. 

All this wke~' time to be brought up to speed. For this rellson, it is imperotlve that/he 

PTC be extended as soon as possible, so this chain doem'tyrind /0 u hult and require 

a Bood six months to get gainB IIgain. 

I.e/'s crellte quality jobs GIld energy independence (II the some rime ... please renew 

the PTC now. 
1040 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.984

sm Windermcrt· Ln. 

I'airfidil. OH 45(1'14 

Thompson Engineering 

28 Aptil2012 

(513) S29495J 

ri t@fus<:, et 

Subject: Comments on the Wind Energy Produc tion Tax Credit (PTC) 

Summary 

This memo urges the Congress to gulckly elIteng Ihe proouctlon lax credit (PTC) lor wind 

and related rellewables, such as Ihrough H.R. 3307, At only 2~ per kw·hr, the PTe has 

proven exlr.~ly c.!iY..e thus lar in establishing this new, Jili~le, clean energy 

9OIJrce. A multi-year extension will cement these gains by attracting large, prIVate 

investments leading to lurther develop of technology and markets. National security will be 

strengthened as Wind-generated electricity lor electriC vehides replaces imported II;el 

Discussion 

As a Professional Engineer with experience and one patent in renewable energy. I think the 

progress made by wind energy In re&l!nt yeaJ'51s absOlutel~ eKciting! 

The Nation benefits in multiple ways from the startup of a whole new clean, sustainable, 

domestic energy source. Wind energy manufacturing already employs 50me 30,000 

people al400 s~es in 43 slates. In recent yeaJ'5, some 10 milliDfl horsepower (7,000 

megawatts) have beefl lflstalled each yeal. Iowa and South Oakota already get about 20% 

Of their electricity from wind. Ohio has the potentral for deriving 95% Of its electricity from 

Wind. accordIng to the National Reflewable Energy Lab (NREl). The estimated cost over 

to years 01 about $4 ~lIion for the PTe - which Will fuMer develop techrlology and 

marlCets Iflli1ls new. vital, growth Industry - is in contrast to some $40 billion (also over fO 

years) in federal subsfdies currently being received by the ISO· year-old oil industry. 

As t know all tOOi~~~"~I,~o~m~~§~~~~§~~~j~~~~~~'~'~d~,~"=~~~~'"~'~m~.~"'~" impleml!fltalion , risky. 

and fact 

that 

i 

rhe Simllariy. the cast 

more rhan 90% sfnce 19BO! 

Perhaps the most imperlant reason to further develop sustainable wind energy is national 

!.I!curity, Wiod·generated electricity recillCes o'llmP:Qrts from the Middle EaST when that 

electriCity is used in electric vehides (EV's) and hybrids. Another invaluable synergism is 

the energy storage whicl1 EV batteries provide for wifld-generated electricity. 

Now is the time to buHd 00 the superb foundation already established through quickly 

eIIlending the PTe for the long term 

Hugh A. Thompson, M,S.M,E., P'E.. 
1041 

Statement of Tierra Farm & Grain Co. 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.985

1. Benita Lou TelTell. Pl'esidentof1'ierra Farni & Grain CQ. in Plainview, 

Texas, respectively urge Congrcss to extend lhe wind CllCl'gy prod uction tax 

credit (PTC) liS quickly as possible. 

The State of Texas ill cUI'locntly building a network of trHnsmission lines to 

transfer electricity generated by willd fl'Om I'ural areas of the state to energy 

deficient mctropolitan areall of tne state. The tra nsmission lines are 

scheduled to be completed in 2013. In vesLOrs who have exhihited intel'eSI in 

financiJIg wind farms in our area ;)I'e backing 'lway. 'fhey state the 

indecision over PTC has impacted iheir decisions. 

We are 0.11 agl'icultuntl fll'ea i.n the midst of 11 drought with farm subsid.ies 

shrinking, Wind fal'ms wil! provide money fOl' our schools and hospit.als as 

well as jobs for our people. Enrly renewal of the PTC would encourage 

investmt>nt in wind farlllS providing energy and jobs for the State of Texas. 

I urge the committee to take up an extension of the wind energy production 

tax cl"Cdit Cllrly. 
1042 

Statement of Tim Kearney 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.986

I, TIm Ke,,,,,ey, II M Mh In.trod Of' lit e/~ e ell/qe In IHlie~~ WII.hinlllon '".p<ctjul/y u,g~ 

eangr n 10 eillend Ihe wind enelllY Qfcdu[/ian 1011 elMil (pre) 05 <juir~i)! 05 panibl •. 

I'm IM/olhero! a l·~eor-Dld boyond I "'anI him /o"ove d. brlghl a/UIUff! 0' ponilll<!. Ido"'1 wanl ~Im 

IIro",IM lip in On over·heoled world do..dM byCOQI.moke. 

Th e pre ddve. billions 0/ do",,'$ In pri~o( e l"vt.Hmem In homelilow" Amer'c"n ",Iw pow", eoUh yeo,. 

have ~n Ihe wind /a,m neo, my hou.e r"!faille my communily - bringing in 'on" .... ' I;o" jolll al prst.. 

and mojmenance job. in Iht loll!} l erm. ond gene'oting r"venue ,0' our cammunity ochool. and ho.pl/ols 

ove' Ihe Ii/eltme 0/ Ihe plo/ect. Inrreo,;n'l l~e omoum 0/ po"'e' Ihor our COUnlry ge" from dean, 

"omegrow". a/loroool. (t'JaufCel j, an e~«,!I."t thlnll /01 <II 10 do - and 1M •• o~ Crt!1U provides 0" 

Incentive lor r~ e ",Irld jnd<l5lf)l lo,onr/nue 'o doju5Ilha •. 
1043 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.987

,, __ -.,," "'_ .... _c:- ,, __ .. bOOIIo, 

IIQ." W"l' .. nd M •• " . ean.",I" •• 1 lQZ Loo .... O<th !t"" .. om.,. 60.li<Il AlI 

W .. blol''''' D.C l0~1 ~ 

Deor Cboirmon Camp. 

---,-

---

~-

-

m 

.. 

-' _ .. ... _- -~ lom ._ ,.., [001'1<_>1 

,-- --.... _f"n:: 

IIprll ... >OIl 

I, TII""o., ,. en" .... , orv .. ...,. 1I111., IL, _poctr.uy ",ll" CoII""""" .... nd Iho ..... d '''''I!Y 

prod.",lun I .. .....ul (1"fC) •• quld:J)- .. _Uri., 

Tho PT'C drl . .. billi"". of doU ... In prl'v' IO 100,", __ 1 in b<>:M$fo"",, ~" wind p""""O<:h 

1'" \\',od f",... ... ",1.01;", "'. OO''''''."''f - brlngiJ>& lo <""""""~on \nbo . ' l,tO!. , od """"".,"'" 

lobo io 11>0 IonS I"",,, . "" gII ..... tI"~ "' .. """ fm "'" """,","nily ""' ..... ond ho>pilOloo ... , I~ & 

1if. ,1mo of 0.. prole<!, 10Ct0.1<II. ,hit m~"nl 01_ .. 0..1 OUI """"'11' ,"I> r",,,, d .. ", """"It_", offordable. raou ..... I>. n ' ;«;oU.,u \hl"lll<lr . , l<I do - ond Ihl. Ii" cn>d.ll pnMd ... n u.c.n,I .. I", 

0.. wind lod""ry 10 conlin ... '0 do i"" !lilt. 

... _."""'_l""-", 

---

V _ __ uJ: 

-

"'_ ... ..... --_ ,_ ... -.... .., ... '0' '''''~'''I!'' 
1044 

Statement of Tlaloc Tokuda 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.988

Date: April 24, 2012 

To: The Ways and Means Committee 

From: Tlaloc T okuda 

Subject: Extension of the PTC 

Dear Madams/Sirs. 

I, Tlaloc Tokuda , respectfully urge Congress to extend the wind enel"9Y 

production tax credit (PTC) as quickly as possible. While I am now retired , 

my career revolved around renewable energy. I have worked as a solar 

technician in Micronesia, a renewable energy researcher at the University 

of HawaII, Manoa, and as a lecturer at University New South Wales (Gen 

Studies) Australia, in renewable energy , efficiency, and globalization 

AI a lime when CO[lgress is giving the rich a hefty tax break which often 

does not trickle down to the masses, Congress can do something that will 

trickle down to the masses: promote renewables by extending the PTC, 

The PTe has spurred millions of dollars in private investment across 

America in the past five years. and an extension will enable the industry to 

continue to do so. Renewables create far more employment than nuclear 

or other fossil fuel Industries. Additionally , wind and other renewables are 

sustainable. 

America must recapture Its status as the leader of renewables and wind. 

Earlier Administrations have worked towards this. President Carter 

established a national_energy I29licy that included conservation, price 

control, and new technology. He created many policies that promoted 

enel"9Y efficiency, conservation, and renewable energy , including the 

Public Utility RegulatolY Policies Act (PURPA), which created the 

independent power producers. PURPA was the piece of legislation (along 

with Carter's newly created Department of Energy) that gave the US Its 

creative edge in creating new wind turbines. This led to California leading 

Ihe nalion and world in wind energy. However, under the Reagan and Ihe 
1045 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.989

Bush Adminlstratrons. these policy trends wele reversed. The US has now 

lost its lead In wind and other renewables. 

Millionaires. nuclear (which still gets the tion's share of federal subsidies) 

and fossil fuels are not going to save America. Renewables and wind will 

push in this direction. 

Again, I respectfully urge the Committee to take up an extension of the 

wind energy production tax credit right away. 

Sincerely yours, 

Tlaloc Tokuda 
1046 

Statement of Tom Hilgartner 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.990

I kilo, 

I am wriling 10 urge in Ih~ SIr(lngeSI possible temlS that the wind energy productjol1t~ :.; 

c~dil (PTe) Ix xlend~.,j . Building. inSlaliing. and maintaining the mcehHnisms n~'eded 

for production of\\'lnd energy \ViII crcme good payi gjob~ for Americans 3n a limc when 

Ihey arc despemlcly needed. tnlrcprenCul"$ who en.'ate Ihese mechanisms will hl'lp 

product a.Jditiollal jobs. 

And wind energy has few cnvil"l.)nml'11tal drJ\\'baclr: ~. IL is clenmlly rcnew:J.blc, ami 

Am~rican wind will be creating the encrl:..v tor America's usc. Clearly, al present. wind 

energy is not enou.gh 10 mect all of Am~rica's cnergy necds--ilIld may rlC\'cr be a "magic 

bullcH" Ihat will solve l'l'l'l)' cncrg.v problem we face. Such "magic bullets" will pT<lbabl) 

neverc)..isl. l3ut:l1l thai OlC31\S is lhalmaoy par1ial solulio05 willlJCcd 10 be cJ"np loye.J in 

order 10 replace (il1lhe. long temt) ilIld reduce Amcrica's dependence on (in Ihc shorl 

ICnn) fossil fuels and other environmentally damaging sources ofCller~' lie currently 

rely on. 

The ~Copolilica l impact or evcn a mO(kSI pcrcl'nlagc or Amcrica's l'nel);.Y usage cQming 

In:.m wind powcr <'annOl bc l.mdere\um3ted. Neithcr can the hOr1 t~!Tt1 and IQng-tern1 

businc,s opporlunities which sustninnbk energy sources (such as lIind l'llergy) will 

alTord us. 

One may argut aboul the timing, but the end of"c-Jsyoil" (and coal, 311<1 other nonn.'ncI'0"3blc ~lIcrgy SQurc<'s) is by definition inevitable. SllslainJblc sourccs or cnergy must 

be Suppor1cd, dC"cloped, IlJ1d buill buo the lit;;,slyles of AmcriC811S alld American o:uhu~; 

SOilner or later, Ihis ,,"ill have to hnppen if America plans 10 have ~ny aceess 10 encrg), al 

levels ullylhing Ii~e whal we currently usc. 

"Ianning h<'1ld for this ineviwble day w(Juld be a strategic mOI'c for ttle U.S. Congress. 

!'ailing 10 plan for il will simply mean a more painful (and potentially violent) lr.1nsition 

to sustainable energy "hm the oil doc:s run OUI \Clr, mQre immedialely. "hen oil--aod 

related cncrg.v produclS-ho:com<.l inordinately c:>:pcnsil'c for daily usc for most 

Americans). 

Again. I urge in the mosl puwcrfnllanguage possible that the wind l'nCrgy production Cl:>: 

credit (PTC) be c:>:lendl'd. 

Than~ ),ou I"cry much. 

Mr. TOI1l l-l ilg;lnncl' 
1047 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.991

Mr. Tom Hilgartner 

1229 Tenth Avenue 

Huntington, West Virginia 25701 

(304) 697-6038 

thilgartner@kvctc.edu 
1048 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.992

<[ TransitCenterMa~), 2011 

The HOIlO.able Oat nberi 

Cha,rman 

u.s, HOIl,,, of ReprewnlatlVt's Committee 

on Ways & M<!"ns 

Select Revenue Me.sures Subcommittee 

1136 LonlJWort~ House Office 8u ldi~g 

Washington. DC 20015 

Th .. Honor.oble Rkna.d Neal 

Ranl<'ng Member 

U.s. House oi lleprnentatives Committee 

on Ways II< Means 

Select Revenue Mea51l,i!5 Subcommittee 

11.36 LOngworth Houle OWei!' 8uil,Mg 

Wuhington, DC 20015 

liE: Submll1ed 10f the RUI>.d lo.Commlttee "Hearing on Certain Ewplrlns Tax Pravlslons,· held April 

26, 2012 

Dear Chairman Tibl',land R<lnking Member Nnt 

On behalf of Transile"n! .... Inc, Jnd. mo~ than 2.7 milll!>n use.s ol the transit portion ol th(> 

commuter benefi' nationwide, I write in support of testimony offered by Congressman Michael Grimm 

and Con&reum~n James McGcwern ur81n8 the Committee to nclud~ I~~i lation to restore p3rlty 

be w~en the "an.it and parkins portlcn~ of the <Ommute' benefit as pan 01 the next Ux ext~nde" bill 

advanced by Consre ... In addttlon, I submit lor the re<ord .. lel1er delivered to tile Congre.sion31 

leadership in february .nd ,Igned bV 30 ime,ened OIg3ni,at;on. insupport olthi' i .. ue , This leller is 

auaC/led below, 

Beginnlnll January lsI. 2012. "an.it rld .. rs who use the I",n,it portion 01 the <ommute r benef]1 

saw the <OSI QI their <ommule riS(! b<:'cause Ihe mDnlhly caP on 1110' Iransit benefit was 'educed tram 

$230 per month to Sl1s per month - . lmMI a SO% drop. Meanwhile, people who drive to wor k and 

P3rk their Car rece ived 3n Increase in their monlhly benefll irom $230 monlh 10 $240 month. Con,re.s' 

failu re 10 pa •• legi.lalion to e~tend pa rity belween the tran"'land par king benelitallhe end of 2011 i, 

the equivalenl 01 pu"ulng a policy Ih31 rewards drive .. and punishes Iran,it ride ... 1'hi, is P3nicularly 

perple.lng In H,ht of rising Ra. pnces- we should be rewarding use of public l",nsportaUon. 

If Congr .... doe. not act quick lV, millions of transit and an~ol ride" will continue to be taxed 

mor~ thon thei' fellow commute rs who drive to work. Thi. inequity wilt lorce many commuters oul 01 

t,.in" buses, and vanPO<lI $, and b3ck Inlo Iheirurs which will onlv leo>d to increases in congestion, fuel 

conlumptlon, lost IIrodUClion and wasted time that could be ' !)en! wilh Ihelr family. Transit olleralors 

are already report in, a drop in ride r.h lo since January. Re storing parity b e '!)eci.lly imponanl as mOf~ 

a nd more commuters turn to l",n, 1t as a mean, 10 cope with high ga, prices. 

The tran5itbeneflt atso prOVIdes !matl businesses and job ,rea ton with alinancial lncentfve to 

help t~ el , employee, increase theirdrspp.able Income. Th is i. a perfe ct example of how targeted and 

New Yor~ 200 Park Avenue Suite 1100 

Wa.hington ]05017" St., NW Suite 510 

New Vork, NY 10166 (6<16)354-6515 

Washington. DC 20036 (202) 1'>51·9619 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.993

effEctive fed" raillolicy Ciin proYlde employe .. with .. n oP?Ortunity 10 help 111" lr employ~e, ",ve money 

on 111~;r commute, while .... ng employe" money th~t oan be reinyested In t heir bu,ine" ... 10 create 

new lob •. Congr"" ,hould not continue 10 promote 3 policy that hun. busine",,,. thai are doing Ihe 

rig ht thing by proylding IMi, mplo vee~ with transportation alternatlYIU. 

Rewarding !ho." who drive to wOlk while penalizing Ihose who u,e public transportation i. 

haYing I profound impaC! on million' of America", who take Iran.i! """IV day -In all parn of Ihe 

nat;On. While Ihe maj"rlt~ of commute(S who u.e Ihe tran,it benefit re,ide In urban or .uburb~n area •. 

many commuter, In ru 1 .rus Ihill uSf van poolrrely on the transit benefll., well. Indeed, th is 

iMquilV hilS commuler,in rural and ollilying suburoan arei' Ihe h<ordeSI, because Ihey fj ce the mOSI 

,,~pens""" commutes. In addllion, by encouraging commuter, to uSe publiC transpo rtation more 

freque ntly, ami drive 10 work less. !he tran,it benefil help. all American. - by reducing congestion, 

reducing our reHance on foreign fuel Impon., and preservin! the "nvironmenl. 

TMn k you lor the opportunity 10 contribute to this importanl heJrl~8, and la~if\8 this letter and 

te.tlmony into con,lderation u you work 10ilddre" Important la. i"ues in Ihe coming monlh •. 

Sincerely. 

Paul i . Dean 

Trim,iICenter, Inc. 
1050 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.994

u.s. Chamber of Com me,", • American Public Tr.n.portu lon A .. oclatlon . U.S. Conference of 

Mayors . National Lea,ue of Cltle. . Employe .. Council on Fle ~l ble Compen u tlon . Amalgamated 

Tran. lt Union . A .. o datlon for CommuterTransporu tlon. Chicago Tran.lt Authority . The Commute, 

~nen o Work for U. Coalition . The Community Tran.port"tlon A .. oclatlon of America . [denred 

USA · GVF · Los An,eles County Metropolitan Transpomtlon Autllority . Metlopollt ~o 

Transportation Comm" slon - San FraodKO lIay Are, · METRA (IL)· New York Melropolltan 

Transportation Authority · Pi Ce Suburban lIus Se rvices IILI • Pa .. ooo ll,lncke,lIoft. Regional 

Tral>Sportatlon AUtllo,lty [IL) . Reglo"al Transportation Commlsslo" of Washoe COtI"ty · San 

Fran(lsco Metropolitan Tran,portath>n Autllorlty . San Mateo County Tril!lslt District · Santa Clara 

Va lley Tra nsportation Authority · Southeaster" Pennsylvania Trim,lt Autho,ltV · Smart Growth 

America . TransitCenle r, tnc . • Tra n'portation fo r Amerlca • UIlIh Tran.lt Authority . VP'5I . 

WageWorks . Wa.hlngton Melropolltan Are. Tran.it Authority 

The Honorable John Boehne' 

S~a~er 

Unit ed SHlles House of Representa tives 

H-232, The capitol 

Washington, DC 20515 

Our Speaker Boehner, 

February 3, 1012 

We the undersigned organilations urge you to lake immediate action to resto re parity between the 

1",",lt portion and the parkins portion 01 the lede ral pre·til. mmmuter benef,t. Failure 10 addre" this 

iosue at Ihe end of 201 1 led to an almo.t SO pe,eeM ,eduction In t he Ir"mit commuler benefiton 

J~nu.ry I to SUS p." monlh lrom it. p,eviou, le",,1 01 $230 per monl~. Meanwhile.lhe p",king benefit 

increa,ed from 5230 per lOnth to 5240 oec mo nlh duelo. mil 01 tivi1\8 inerease. 

The decrea,,, In Ihe " .n.1I portion ofth@eommute,beneflt,null.i"anincrea.edl .. burden lor 

worker, who re ~ on publk tr.ln.port~lion lor their dilily commu le •. ~or e.ample," wor~I"K '''mi!y thill 

took .. dv.nl~ge ollhe fun allowable mOnlhl~ pre·I". deduct ron for ,,-.n.il i" 2011 will p~y a, much a. 

$SOO more Ihi. ye~r i" fede",1 taKe •. Thi, is a sisnific~"t co,tlnuea.e Ihat man~ commuters ,imply 

eilnnOiafford r" mi. economy. In addition, Ihis added co.1 i"ue •• e. combined wilh ,i,ing fuel eo.1> and 

t",,,.1t la,e., will make It dllfkult for worke .. thai a,e lortun.lelo have lobs \0 be able 10 conlinue to 

.fford Iheir commute to wor~. fhe reductio" in the monthly ifilmil limit wiil a lso re,ult in an ine 'ea.e in 

paY"oli ta.e. for many bu,ine'iSe'lhal offer the benefit - important resou,ce. that could be ,,,invested 

in the econo ly 10 create new job •. 

The current di'parity between Ihe parkin, and Ir.".II portio n. of the mmmuler benefit amou"t. to a 

policy thaI encou,ase, mmmute .. to d,ive to work, ",theelh.n u.e public tran,p<>rlation. Thl, will 

,e,ull in inCfeased traffic congestion on ou, mads, a ri''' 'n ou' n.I"'n', reliance on loreiS" fu"llmporl" 

and" <is. in ~,eenhousega. erni .. io", Ihat h.,m ou, environ'nenL 

I" the coming davs, Cong'e" will have the opportunity to take "Clion to restore parity in the paflong a"d 

tran,it portio", olthe commUter benef,t a. It con.lde" Tmportam I •• a"d tra".portatTon ,elated 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.995

legi.latlon. A. \'<lU work I01lddr~ .. manv of Ihe important i"ue. that face our M llon, we urge you 10 

nollo lor,ellhe more Ihan 2.1 million commuttng Ameri<an. Ihal relv on 1M lran.ilcommUler benefil 

lind W<llk 10 passlegl.lation Ihal will en'ure thalllan,il rider< can conlinue 10 afford Iheir commUle to 

work. 

Sll\Cer~!y, 

U.S. Chamber of Commerce 

Amal&~m~led Transil Union 

AmerlCiln Public Transportation Associalion 

A .. oclation lor Commut~r Tran.po rntio" 

ChicaGo Tran.it Authority 

The Commuter Benefits W",k lor U. Coalition 

Th~ (ommunity Tran.portatlon A .. ""ialion 01 America 

£denr~d USA 

Employer< Council on Fle~ible Compen,atlon 

@ 

Los Angele. Counl'/ M~I",politan Tran.portatlon AuthOrity 

METRA (IL) 

Metropolitan Tran,pana!ion Commi,,/on -San Franc1sco BaVA",a 

National league 01 Cltie. 

New Vork Melropoll t~n rl"ilnsporYtion AUlhorit~ 

Parson. Brinckerhoff 

Regional Tran.portalion Authoril'/ (Il) 

Reeional fran.po"rtalion CommlS.ion 01 Wa.hoe C""ntv 

Soon Francisco Melropolitan,ran,portallon AUlhorily 

San Mateo (ouriI'/Tran.;1 Di.uict 

S.nt. dara Valley Transportallon Authority 

Southu5tern pennsylvania Transit Authority 

Smart Growth Amerk;l 

nan.itCenter, Inc. 

Tran.portation lor America 

U.S. Conler~n(e of Mav<>" 

Utah Transit AuthoriW 

"'" Wa8eWor~. 

Wa.hing!on Metropolilan Ar"a nan.it AUlhoritv 

CC: The Honorable Har", R~d, Senale Majority Leader 

Th~ Honorable"Milch McConne ll, Senall! Minority Leader 

The Honorable John Boehner, Speaker of the Hou.e 

The Honorable N.ncy Pelo.l, Hou ... Minorily lead .... 

The Honorable Ma~ Baucu •• Chairman. Senar.. "nance Committ ..... 

The Honorable Orrin Hatch, Rank!ne Member, Sen",e FiMnce Commln ..... 

The Honorable Oavid Camp, Ch'airman, House Way. & Mean. Committee 

The I-IDnornble Sander levin, Ran~;ng Member, HOUle WaYI & Mean, Committee 
1052 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.996

T~AL A 

s· .l TE~ 'l'T BY THE 

TRUCK REN'I1NG ;';": 1) LEI\SING ,\SSQC I/,"I1QN 

UNIT)!D $T,\TES I lOUSE OF REPIlliSEN·I',\T IV Il.S 

April 26. 2012 
1053 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.997

Introd uctio n 

-rhe 'rru~~ Iknling and I-<:asing A,,~oci~ io)n ( n tl\ 1 • .\) tS" nMi,>nal n.,.n- p rufn 

rI'l:"ni",,,,,,n tha, r;:rn:~enl~ 'ht' ,'M' m~iotifJ' of the .ruck re",.1 ~nrJ Ie c fle,'( in 

North ,\me""", T."J"r"< cen",1 and lease neel ~cc"u"',; (\lr "pL' .... ,~im"'dy 20"-. of 

nvemll comm{'rci .. l trucks in vpc ..... i,~". TIt,\ I .,\ h,,~ ",'er 550 member<. "pe .... lIe. in 

abuu! 2-I.I)(K) Loo:;ariuns :o"J em p loy" m Ore ,h,IO lOO,llO(J [K'uple. T I(AI.,\ members 

""n";llly pntcha.e bctwecn J5 I(> -10 p<:rcent e,f a IL n<'w lruck. pu, in' .. ~<""nlC r~lal 

"ervice in N , >rth ,\mcnCll, 

' 11{i\ 1.,\ ,,",eie'>!"e. 'he <iI'POrtu",'}' to o ffer this ,,·tilten ~"tt< .. men' with regard 1(, .he 

~ubcommi"L-es ,ax "",,,ltde.,, he"-ri",; whic h ~Jk place nn "pril 26, 2(1 12. 

TRALA·Supporled Tax I nc",In iv,,", 

Thi~ w$II1l,ony i. i" fl'spon"" In Ihe Commilte,' "" \'(fllYS anJ an. ~ubcrlmmJllce 

on :-:decI Itcvenue Meuure,;' te'l"<'":!' (ur tC.U"lO"Y (In NtX i"","nti,"''; Iha, expired a t 

.he e"d "f 20 1 1 and , h",.e ,h,,, will c~pi"" at ,he end u ( 20 12. TItA I.A $uppor,. ~ 

w,de m"~"-' of t~x in"cmives t h"l would faciliIM,· Ihe "!ru~li,,~ c",,,,omic rcellv,'ry ""d 

oub""'-1u<..,,, ~blli'y fur bus,nes",," It> <:tcu!e rnO"'-l0bs, 11 (.w,,"er, "nJ"t"'"n in~ the 

r,.cus <,f Ihe S"bc<>mmmec's c"" .iJ"rn,iOf' in ,hi$ hearin),!. TltJ\ 1 J\ "''-IuIJ like ' 0 

~Jdrc" ....... f(\rc the committcc IlIX incenti,',,~ a''''lCJatcJ with "~lUrn) gM vehicle. 

(N("v1 rl>~ ' we rc "!<tenJed a~ pan <,If P.l_ Nt;>. 11 1-) 12 >r the 'f » Rdid, 

U"eml'loym ..,,, Ins",","'''e ReaUlhori"n.j,.,n and Job Cfl"~""n Act ,,( 2(;1 0 (J Lll. 4853). 

Specifically, ,here "t<' , htel' f<'de ... 1 t~x ineenri"es th~r- ha,,<' I><.·en in place tu (·ncuum.:e 

th"- u.e "fNGV~ but IInv"- e"pi .... ,·d. Th"-~ ar~: 

I) The SO.50 cJO(/rd>~ e rrl. "ncliNtI b"" lI.ed M ~ m .... rur "d"cJto rlld fOll"d in 

"ec.i"". 6-12(, and (,-127 of the In'ern,,) Rcvcnue Cooe (I Re), T h,· 50.50 fuel 

c .eui./r"b:c{e "'". fin:. e""cled in 2005, went inro effect in OC'bbcr 2006. and '''os ({l 

c..xpirc in 20()<) bUl i. was ex,end,-.:i to ,he "nd uf 20 1 1 "s" pro"i.iol1 (5<...:1;0<1 ?O-l) or 

P. L No. 111·,]12, 

, 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.998

2) 'rhl' f,,"'in~ 'nfra",ruelurc credil found In I RC ~e"d()o JOC. 'I'he f"cliol-! 

,nf"'St ... ,,,nlf" o:;redlt for Ilunoral g,,~ d"pe,,,ioJ.; '''I'''pm<: ot wn~ fir;t enao:;tcd "1 2005, 

wenl into "n"el in 2006, ami expi"',j at ,h" "n.\ u f 21)1)9, !t",j it W: ~ ""t"nued h) 'he 

en,j "f2011 "" 3 1'«>\"'$'0" ($ .. -<:Iio" 71 1) of 1'.1 . N(I. I I l-J! 2. 

3) The "l,.,m:"ltiv" r"d"tl ,"chide crctlit fn""tl in IItC S"-<:IOon ..lOti. The 

ah"m",;,"c fueled ,'"h'c!.: Cred;l" wcre forsl c ""cwo ,n 2005, wenl 'n." cffe"CI ,n 2lJ06, 

:"Ind ...... pired~' .he " nd ,,[2(110; It w~ . fl U' ~tenJeJ b)' (:(mJ.:.-c:~" in 1'.1 ., Nu. 111 -3 12 

\ '(Ih y TRALA Supp,," " T h " 5C Tax Ex.e nders 

\l;IhL',h"r dri\"e'n b)' <,,,vironme,,,,,,1 conC"nl<, cos, e(ficie"c;c~, ' Ln\"ing for ""tional 

,'ne'm" ,ndc'pend .. ·""" .>f sh' p per afld eus'"n'er d"Ill;'nd, 'lltAJ .1\ Ill"mbcr" an: 

Incteas"'J.:ly n'''tc u If, I""""g N CV. Inl!) "ommetClal ""n'icc. 

\,(Ihile d,,,.e J"Q.~il n, ''''pa''15 atC j!:V'.>J for Ix>, h eO" $'''',..<:< and Ihe h',me",1 publ,c, 

NC"" eoo;' m ' ''e tn bu)' .h"" cmnpnrnbk !-;":$<.I'n" t .. cli~d I""" c rcd "ch',I<-~. -rhi, 

"p(....,,,, COM can be offse. !O" ue·" ...... '<: over the long_,enn bec"u.., ,he nlor" m,lcs n 

NGV is driv"n ,,~ch yea r, [he fastcr .h" payback bee""." ,he o perating ""ots a',' lower 

.han die,eI-pow<·."d yeh'cI~~. 

\Xlhile t he c',~t uf ,,"nlral ft $ is- curten.ly Ivw cl'/ml'llrcd 1(, ~ns,)li"c and dJ"~,,l. bCC1uSe 

n f 'he upfn nn:..,~t~ of p ... rch"~,,,)!. ~he~e "ch'c"'~. mal",,,).: the swilch r" NC;Vs is 

""on"""c,,ny d,(fi""h rnt ma"y c<>f"pan,c,;. I I<>we\"cr, by t"u;g3!ing ,he incre,"s"u ut'-

frnn, C(O<. uf bU)';ng and "f'"",,;ng NCVs, Lh" in"cn.;"".,; Jes"ribed "I.>''''e hdl'eu 

make NeV, mure """,,,o ,,,,eall), 3tt,..~e(lve .n many 'I'RA 1,/\ me",ben< :"Ind !.h"i. 

c.h";""er:;. Thc~c incelll)"e. "l~n netcu ", help d rive Juwn ini';al .,. ~ Ix...:aus" 

incr",,~,'u d".n~n" ku to ',,=,;:u r"..; ... luc n<.m. pUfling p....".. ure <", th" CO~1 of ~luntl 

,,'liS. 

IS)' "X [ending .hc· "bov" ",,,nuonee! NCo\' ,ncemh'es, •. hc grow, h ,n [h" marke.pbtc" 

for NGV~ would help In de"r~·.,"c OUt cou"'ry'~ rch,,,,,:e on fore,,,'" o il ,,,td I'ro" ide 

!>vlh e""f),'Y a"tI ""~"'um,e b"',,efits for A",ema. Pro", an c"",,om,e l'e'""p"" I;vU, if 

Ihe. ineerHives we.re (:"."nJ".I, .he number Qf NC;Vs rrvduc<-'<! anu "old In Amcric~ 

would CW1 ""'Ue. <u grow, pro.!uci"A t hQu.and" u f manufacturing iob. a;; ",~Il as job, ,n 

rei", .. ...! field. Ihat d~':ll ,n "alU",1 g:o~. In ~ddj{ion. ,", "thM" truck",g fuel offcn; Ihe 

r v .cnti:ll.v Il'w<'r fud c..,S ~ for Tit" !,'" member cor"p~",eg anJ ".ha bu"",<-'SsC" 
1055 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.999

,h~r «'1)' on m.lck rr"n"pt..>". The 'nlckin~ 'nUU"'CY'~ ,he u"ckb<mc (If Ihc U.S, 

~"O.",,,ml'. (kcr fIQ"/. "f all ,)L)J ~ ac~' muveJ by c< 'n"Tl~rcI,,1 lrud,~ "', n"in~ ~'"' 'hne 

anJ di"",,1 COSIS incr<-'1l$" 'he co« of "irtu~lLr all J!.' >O<l~. 

Co ndus;on 

F"T lhe~c f<'~ s" s. inc,",," ~; ng 'he u"e ... ,f NCV~ ",111 have a pn~j.j"c ctT"" ,-,n ,-,UT 

<-":un,)m 1" p" ,,i ui,,~.,.,.- C,,--d;I~ 10 p,,,mo.,, tho': lJ"" \..If N(;V" ;t "!u"l1 ~ ","',ulu m"re. 

.han pal' f .... r ,hetn,ck"s in ".:nns "r ~con";'tnjc gr')Wfh. i..a$d),. [:"'causI: U.S. 

m"""faC"m! N curTend)" pTQciucc and " ffcT Iht' ~'l-\".t ""lcc,;on of NCVs :lnd rcb'"d 

cqu,)">m",". 'hL'"" ",,' C'X!L"fI(kr 'ncL'mi\"c'" w,ould hd)"> to ma;n,.. i" ,\mc,i".d·$ bLdt'n<hip 

rnle in .hi,. "~r" . 

TRA1.j\ uI")!.e> t hc C(")ngr<:"~ 10 "";'e,,d .he c,,.-)">,,,,d ,ol", ince"m·c. f"r nan,,",1 gas 

fu.:':hng ",rra ~. ru~r",.., "nu th" nM"ral)jM fud crrwtwhcn;, mk<!S up Ihe ~ll "",,,,,J,,r$ 

1.:g"lat;,u,. 

'11"",k l'vU ror )'"ur C(>T,"i<kr.ui<,}fL Ir Y"" h:",,, any "I"c.';un" rc!;'.rding 'rlb' I.A nr 

o ur s uppan fo~ thc NGV l:ur inc('",,,,cS, pl<:'Lse conWc, us an)'limO'. 

·1, >ITT J'"l1C' 

I'f'i: ~i d<:", and GI':O 

"['ruck Renting nnd LL.,,";n~; J\ssodatl"n 

475 N. Wa"hing"''' S,n,el 

'Ic::"nn< ri~, VII 2231,\ 

tl,lI'W \':ll~_or~ 

(7113) 299·<) 120 

J"k" Jacob)' 

Vic<'l'rc~kknr ofGO\,Cnlll1<'n! Hclnions 

"i"Il.,ck Rcm;ng "ml l.,,~~in g "~su<:iadu" 

4 75 N. \>;I", hingtu n Su-ee! 

AI"xantlri ... VA 22314 

jJ~(:.,I') @rm )n '''<g 

(70]) 2'1<;· <; 120 

• 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1000

TRUE BLUE 

STAT":MI::NT FOIt T il E RECOIW 

JOANNA S. MON RO E 

Vier. I'RE50 m ENT, D EI'UTV GENERAL COUNSEL 

AN D CHIEf' COMPLlAf\<o'C£ OFFI C t: R 

T IWEB LUE. I NC. 

F O R TilE l-I EAI( ING ON 

4'CERTAIN EXPIRING TAX PROVIS IONS" 

TilE U.S. I-IOUSl: OF REPI~F. F.NTAT VES 

COI\oIM ITTF.F. ON W AYS ,,1'1 1) MEANS 

SOIJCOl\1MITTE.: ON SELEC T R IiVENlJE M EASU lt t: S 

Ar'RIL26, 2012 

In 15 A Slre"t. '1'''"'0111''' W A 98402 

253.383 .9101 • jmonrOoc@lfuet>lucinc.CCllll 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1001

On btohalf ofTI'Ut'Blur, 1m:. i"TrueBiur'·). tbnk you fOf the oProl1uni(y 10 submit this 

!it~tl.'nh,nt for the r.",ord. We appl~ud the $ubcomminl.'e and the Commin,·~ for its leadership on 

(he i11lpO,,~nt issueofta~ extenders. 

Despite (heir tcmPQrary "mllR!, la~ eXlenders n<JI1Clhcic$s IlIml a crilicall"'rt of <Jut 

nUlilJlt"s lax COOl.'. A provision of significant illICIT,1 is Ihe Work OpportunilY Tax Credit 

t··WOTC M

), which has been 1"'11 oft!.", fahric of I)", ta" code forde,·ades. \VOTC largdy 

e"pi",d on DecemberJI. 2011. along with a numhc:rof Olher mcrito,ioltS laX policies. 

Looking ahead. I"" rdom' otTers "" oppol1unity 10 review wure and conside, a 

pi'm'3nCnt solutiOn, endinji: Ih.!.OOnslant c}·cl<: ofe~l1ir.\tion and "xlensi"'n. In Ih.:: meantime, ",.~ 

Slrongly ul),\~ COngress 10 :;C~J11lcss y cxt,·nd WOTC wilhout dclu). AI 3 lime ofintmnsigcnt 

unemployment. pIll1icularl) ~monJ!. WOTC"~ (31),\CI groups. Ih~ (D~e in WOTC is a significant 

selrod for job crcallon in Our I1IItiun. ConSo.,<!ucnlly. exlension of III is importMI policy ~imply 

;;"Unnm wait. 

TKI!I:BLlI[ 

TrueB11lI." is R leading suppli,.,. ofl,·,npornry work. In 201 1. TrueBlue conm'Ct.'tl 

appr()):im~ tc1 y ]00.000 peuple 10 wort. p;lyinl! nearly S600 million in "ajl.e~ and scriing l1~:lrly 

150.000 bu~incsst:s in Ihe service, "'tail, wholes.~lc. manuf.1clming. lmn'p<lnalion. ~nd 

construclion indu.<lric~_ Tmdllue alS<! employs 2.500 r"l~ular headquaner and br .... nch staff. 

Tn,clll"" provides tempornry blue colbr and .skill~d work (hrou~h r,,·c li""s ofbkiSincss: 

I..~bor kcady; Spal1an Sla[fmg: eLI' kc"Wlll""cs: PI.ne Techs: and Cenlcrlinc. The l"ruel3 lll1." 

family of companies i~ commiUcd 10 providing indivi<.hrnll; wilh oppofiunities for j!ro"lh and 

customer.; with th~ hdp they nc.!<! 10 ~utc~ed in Itxla}·S cumpNitive "",'ironment. 

As a I~ading supplier fl~,"p("Irlll)· WOrk. TrudJ 11JC provid~"S cmploy",~nl OppMlunilies to 

and a bfidl!c (0 I"'nn311<'1I1 job.~ for many "1m otherwise facc oorriers to entering the wOfHorce. 

An nl.l.1l1y, approximatel)' ~O.t)OO ~pplic~nts ure eligible ",ld oppmslrn~lcly 8.{)()(t ~re u ilimntcly 

~ppro'.<'d for \VOTC. 

TOII'QKAKI' WOK" 

TemporJry employm~m pl~ys a criljeal rule in the ecunumy by pru"idingcmploymem 

l1cxibi!;ly for workL~ a"d busines:;cs. Tcmporar}· staffing fmns employ mote thau 10 l11illi{'n 

people each Y'·llr. These jobs offer milliolts o("people th~ opportunity 10 ,,"oIi;. particularly a. lhe 

CCon<Jmy cont;"'l<""~ its rra~ilc reco"ery. 

Temporary cmploymcnt is crilic~ lt o miligating uncmploymcut. while offeri ng 3 

sig.nilknnt 0pPQnunil) to Gnd I"'fI)1311C111 emp!O)·/llenllhrough (~"'pornry jobs. T Cijlporal)· 

cmplo}·mcnl also provi<k,s peopl"""'ilh on·thc·job tlnining. ullowin~ them to learn ncw "kills and 

"p.1r1d Iheir k.nowledge base. which can I3ter hi: I .... nsf~m:d 10 olher cmplo)"ers and 

,~ng hencd. 

-t . 
1058 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1002

At the saIne im~, 1~ll1pQrnry ~nlpIOY"'~l1t provides busil1e~S<'s with the Oppo)nunity to 

suppOn or supplement their workrorce in various wor\;: SilUillillns, such as emplo}(~ al!5<'nces, 

skill snonages, seasonal w'Qrkloads, and S[l"cial ussignlncnt, or projects. M()reQwr. in Ihe 

cumm ~conom}, tempOI"JI)' cmpluymcnt is leading Ih" jobs recoVL"1)' by alluwingcmployers to 

.I!~ug.:: business and (":o"",,,i.:: ('Qndilions ~forecomm tli !!.lo pcn11anCnl hires. 

In Trudlluc.'s .::~pcri~nce. the ~wr:tg" IC"rllrreof u tcmponuy emplOYl~ is nppro)(i Itl"Jld~' 

on~ monlh pcr )'cm. HOWl"'CT, e"en iroomeo",' works for us for OIK! ""y, Ihal pcrson is an 

employee or thc company !"<l lher than an independtnt contnWlot. Employe;.- SlalUS inlegrates 

workL"fS inlo the U.S. l""ullOm)" en~ur n.!! thatthc), an: eligible 10 work in till·ll.s .. lllat aU 

wo k~rs' l'Ol11pensaliun. ul1employm~n\. and income taxes - as "ell as 3n)' coun-urd~ll."d 

.!!amishmcnl~ - are withheld and collected. and Ihai W-2s rL'\XlM ;m:ul11c 3cc\lT31el)'_ 

WI) II" O r l'Q1I1"VN ITV T " x e li F- nll 

warc is a tax credil providl-d t" employer:; who hi", ;nd,v;d\illls t'Ol11 sc\"erdlta');eltd 

groups who f3ce si!:nificanl oorrier:; IQ employ,"cnL r:.-umpll"S u[WOT(""ll<rgelcd ~mplu}ce 

groups include "Cll r~ns ,,·ho either a..., f!)()(\ Siamp ,""cipicnts or arc uncmplQyed and ~ufTerinll" 

""",ic"""""unnecled disabiliTY, [,!Oncr fdon •• dismnnecled ~",ulh .. and members ,,[families 

"-"eei,,;ng benefits under Ih~ Tcmpor3f) AS5i5Iane~ for NCl-dy Families I'roJ!l1lm (··TANI"·). 

warc and its predCC~5S1lrs. Ihc T"geli.-d Jubs Tax Cll."dil (" TJTC'") and Ihe Wdfa", 10 

WoO; (~\'lTW") Tax C,..,dil, have ~xi"lcd since 1977. ~c"pt f"r a t>rie f lapse in th" t'NOs. Since 

worc wa<; utnblished in I 'N6. it has 001 been L"Omprchcnsi\'cly ,..,f"mted and has ""en 

Icmporarily nkndcd n",,,ly a dOlen lim~"S. WOTe "as lasl signitieanti)' conSidered in 2007. 

"hell it \\"a~ modified and extended 1hrough Augusl 31. 2011 in lite Small l3usille5s and Work 

0ppQnunil)' Tax Act of 2007. In 20t 0, WOTC W3'; l'x\<.'nded Ihrou!;I' o.,.,,~m~r 31,2011 by the 

Tax R.elief. Unc,nploymcnl nsllr~r"x Rcauthoriwtion. and Jl,b Cll."ftlion Act of 20\0. WOTe 

fQr nl{}!;llargel group' expi...,d as scheduled al 11..., end Qf 2011, IhQUgh WOTe for certain 

vcterans' pOplll~tions WaS CXlendcd through December 31, 2012 b) Ihe J% Withholding R.epeal 

and Jol> C"" tion ACI. 

\VOTC iO' a ""Ie-clive hiring tax incemi"" I" cncou",¥~ employ"," I" hi..., mcm~n; of 

ceMain groups Ihal face b.1rricrs '0 enTeri".!! the workforce. wore fOcllSCS on wor~~rs pcrcciwd 

111 h"ve n:lali,'cly low s~illle\els. making them I~s. "Ilract v~ '" emplo~e",. These group" sun"r 

rrom higJ,er uucmploym~nI and lower wag~_<. Slated difte...,nlly, \VOTe Icssens the impacl of 

Ih~ proouclivily gap be!wecn the larget group membe", ~\Id "Iher work~"" encouraging 

emplQye", 10 takc a ch,,,,;e and hill." workers the), may otherwise ,,,,L 

Once in the workforee. worhl'S in t"" tDrge! group gain experience and on-Ihe-joo 

training, "1I''''in8 Ihem 10 ~ul>s<'quentl>, '"climb Ihe IlIddd' I" his""r.s HlL-d ~nd higher-paying 

jobs. Through WOTC, mo,"" lunS-lerm welfare recipi~nI~ - Ihe musl difficult C3~CS - are ~ing 

emplo),·tl in the privale sect.:>r ~ud 7 out of 10 ..""Ifare l"\.'Cipients n", ".ing \VOTe to lind prlvalc 

~eclor j"b •. accmding '" D 2011 study b)' I'cterCappelli oflhc Whanon Business School 31 the 

Uni\'crsity ofPtn"s),lvania. 

- 2-
1059 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1003

11.10",0\,<.',. WOTe worlis. In 2011 alun~. morc Ihal 1.1 million wo,h'T'l ro"ndjob!\ 

through WOTe. Further. Ihis imponanlla.~ policy "n"blt:'! IheSt.' wo,k~"fS to move inlO S<clfumci~ncy as Ihey ~am a sleady ;noome lind becom~ conlribuliuJ,' [axpa~ ers. 11Ic Ca[1p;.'lli ~[udy 

round [hal indi"iduals hired "nder WOTC ¥-o on 10 beeOlne prOOuct"e cmp o) cc~ who are no 

longerdc~ndem on public assisllI.nce. In thi. manner. WOTC P'"O\·id<.,,; a relalitel) 1~~ SCOS1 )' 

mechanism In 3ssi~1 poople I,·ho mny olher" ise rely on public assis~~n<;e. The Cappelli siudy 

lound lim] \VOTe is one oflhc most StlCcessful and cost efT~'tth e f~cl"3l cmploymel1l pfO~r1Ims. 

Cm <CI.I'SIUN 

Allowing this provision ro c..xpire a! a !irne or persis!en!ly hi!:h unemploymenl is a 

sigHilicanl 5<'1",-,,1: rorjob c1"<'ation a,ld Ihe pn,wisiOl) should be expediriousl)' estcnded, 

1\I101\'<I'·c,. in Ihe longer teml, Con~"'ss should make \VOTe I"'nn~nc t. since il has prown to be 

an eflicicm i~~nli\ e Ib, businesses 10 pro~idc jobs 10' "u,kcrs"11o might olherWise fnll 

thl\lugh the crocks. Doing SO would further provide ta~pa) ~1"lI with predictabilily and ~er1aiolJ' in 

thc tax ~ .. xlc, 

jru,:,l:llue gready nprm...:into!S lhe oppOf1unily 10 ubm;t rhis statcrn~nl. We are pleased 10 

serve as a ~source II) Ihe Congress. lhe CommittCt:. and the Subcommille..o on thc'SC mid relah.'<I 

lJ1an~ rs . We joo~ forward 10 our conlinu~d wort og~lher on Ihcw important issue'S. 

- J . 
1060 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1004

Apr. 23, 2012 

United State. Ho"se 01 Repre .... ntatives 

Way. ~nd Me"n. Comm;n"", 

Subcommittee on Sele<:t Revenue Measures 

~1Iin91OO . DC 20515 

The Texas Socimy 01 Certif~ P\l~ic Ac.coun\anls respecttul11 SUbmIts thl5 telter as a wrillen statement 

iIIto the hearing record on: 

' Cenaln Exp'"ng Ta. Prov.sion.-

Thursd ay. Apr!126. 2012,10'00 AM 

Longworth Hoo&il Offi<:e 8";lding 

On behalf oIlhe 29,000 members 01 \he T e xa. Society 01 C.,nifoed Public AccoontanlS (TSCPA). we 

are writing to req","sl your support to permanently el(tend the election to deduct . tate and ~I sales 

taxes Related bills H.R. 476 and S. 80 (or S. 24) Hlustrate ~trong bipanisan support 10' trns concept. 

The $late and ~ll!IX dedVCI"'" has bel!n;" place.~ 1iOmt! form •• nee the lneeprion of !he [l'lOO8<n 

hlde,a ' (ncomt! , .... in 1913 to prevellt the double laxalion OffUMS C(llllICtad b1 tr>e s ... te to finance s ... 1e 

IIIrvices. The flenenlll sales lax dedl.lCtioo wao eliminated.n 1988,' It wae lempOr'llriiy restored lor 2004 

and 2005 retUlns, \hen extended through 2007. 2009. end ultimately through 201 1,' The provilion hac 

now upired, leav'ng m;lIions 01 1I'"Pi'yers "ncelta;n 115 to this impollan! dedUClion Ind con<:emed 

about the fa irness of O\K tax system 

The u les lax deduction I. p.llt;eutarly ImllOftarn for residents 01 Texas. AccordIng to II recent study of 

me Tu Found ~on , irl the laleol yea' for which frgul'8$ 8re available (2009). 90 peICefll' of Texan. 

cla,med an itemized dad""~on lor I\ate ta.e5 on Itlelr ladaral return reponed 1M ""'eo ,,,. deductrOfl 

Bul illS aloo imporuml to ~now iIlal lhi. rogura wa s greate< tIlan 80 pefCII~1 for laxp"yel5 ,n FlomJa, 

• c..~ ~toJr<o 0If"~. -11 .. 1l«hM11 .... r~ .. .s. ...... I.""] 'r.,.,... (r.-.....r :.'OO¥P.1h< ""'" ' •• • J.,<I .... _~ .. _ ...... ..... 

~ n.,. h'· ..... A.' '!f I~IJ. ~ ... ~ .. ~. T .... ""'-•••• -! I ...... ~ ........ "i<Io flo. ~..w. ~ ... "", oJ 1''''' .... ''''' , ..................... ,,," , .......... \, ... tr..n .. ~,.n.f_H.·.J .. I""'" "''lI-'''''' ,...~" ~ __ , _'--OO- ""<1_'110" 

_1 ... ,.... 11./,." ~"" ~.--.R ___ ".H .... Jo .. C" 'dII<N> ... ,!I:olq.I"'''''''', ',lo'J." 'f_"" '''''''· .. rl'" :;'<" "1'_'",,> " id<l) .. ' _ n/ l"-'I")· .... {}._ .. ~_ ... J....,., ... ,.. r",·,,· I'""""Y II !til: ). .......... 
1061 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1005

He~nng on ' C .. rta'n Expinng Tn Provisions' 

Prolect slille .. nd IOCIII """'" lao dllduction 

Aprll 23, 2012 

Page 2 

Tennessee. Nevada, W)'orn,ng , South Dakota and Washlng!on,' Tl'Mlse figures establish \he ObVk>Us: 

\he ulH tal( dllductPOI) 15 an Importanl tax bene~t lor mi1l1ons of lndividual" 

Th,S p<o"'soQn should be a.tendlld ~nd made PIINT'Ianenl be<:aU!IEI it i. a clanic case o"aimess 

Without the deduction ro. sa l"5 IiIxes, !he Inlemal Revenue Code ,s .,mpjy unfa,rto ,ndivodual. who 

h"~n to live In slBles that have, lot whatever rea.on. chosen to finarn::e the nelld Iot slalll reven ..... 

w,th a sales !ilK rather than al!emalr'le 60UrceS SUcfl iI1 income laxes or property til~ es. We are unable 

to underslllr.ct the ,..tionale or fa,"""s of the Code diS<:lim~'ing be!W~n permll\lng a fllderal 

deduc:ticrn ro. one typeof stale and local IaK versus anO\hi!r. If !he concern ~ thai iaxl"lye" should nol 

h .. ve Ihe benefil 01 boIh a ules tax ar.ct an InCl:Ime tax dlldl..<:!ion, then the current pr1>""SIOn section 

164(b)(5)(A)' could be e~lended CQf1,l/1uar>ee. of !~IS election oolhe form 1040 would PfQVide fairness 

to Ihe citirens 01 stales thai have eho .. en 10 nol impose an indilli<lual jnoome tax 

An analogous I"'''''''1on curn,"try e.,sls In connection"'l11 tne fore'gn tax a,,"" mechanism on secboo 

903." n"s king Slanding I"'OVIsion ' H peel! the judgment 01 foraign jurildicltOn. to levy taxn in a form 

OIhe' Ihan (!n Iteu of) oocorne Ine. while still pro<Ao:ling a lax cred~ for U S. cilizenl lor Ihe al!ernat,ve 

tax form. We l ugge$t that respee~ng theJudgmenl of our own le 5 to le ~ taxes in the form th .. ~ 

deem best for their own cibz81'5 should be given roc Ie", reo.pect than thaI 8CC01"ded foreign 

juri.dlctions. 

W,tnoUi Ina dedOCIion for sale$ \31«)S , OUt lax taw. ,n effect. discrIminates agalnSl,ndlvoduals livong In 

Alaska, ftorida, Ne_ada, New Hamps~ife. South Dako\e. Tennessee. T"xu, Washington. and 

Wyoming ' It creates an unlevel pta~,ng nekl wllen ~ comes to attracting Ind;",duajs and 005'nes.e. 

mat create job. 

TIw! salM III~ deduction expirlld al the end of 2011, leaving unt:ertalnl~ for millions of ta~pa~e . Some 

ma~ not be aware that the pro'o'islon has expire<! and ma~ be $living saJe$ receipH. onty 10 be 

du.appomted at !he and 01 \he year it It>e deduction is not available. OIhefs may be aware of the 

e~~ration ar>d may!'lOl b9 saving receipts. to be <l4SaPPclInted when lI1ey miss an Important dlldUGlicm ~ 

\he proVl$ion " .,.tended or made permanent 

We would I,ke to aoares. lin lIIldillOnai adm:n, tra~"" issue If, a5 we hope and e.peeI, me deducbon 

lor the ... Ies tax is made aYailabla, we ask yoo to consider encounlg fng the Internal RevenuaService 

to be moAI generoul in Its compUlabOO of the deduction amouol n based on Ihe income of the 

individuat. Our experience has been Ihallhe amount of the deduction that can be d alme<! wilhool 

specifiodot;umentauan a signllicanUy tess than the amount indiVIduals actually pay, This (e.utts in 

• lI' iLlpodU. Stoia \lfi,_ ... O!i, ",", ' I ......... 1 ... ~1>o.I.. I .. "" """""' .... ~ ... """'" .,t o(it< ... _ ,w ... ", ""'1Itml<N 

d""","",, I·""""'""" ....... ~ , .... "1'>'>1 ..... , .• .., 1 .... ,"' ... , ............ .,. ,,, "',') d'.;o...!-o ... ""'..,., .... J...,. I .... r,,·, _ or ...... U_""",,,, 61<1><1",., II>< ""," .. J_~,,"," ,_, 

• ~IJ.$C ~ If;< l'~_ 

' !6 11SCf O(lJ (""""k>ll&, ... !1.~., .. ~fl_ f.i<" ' .... 

'~ i~''''''' '' 
1062 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1006

Heating on CIt"~i" E>cpirirtg T~~ P,o •• r.jons· 

Prolect slate al'd local sa'-!s la, deduction 

ApilI23. 2012 

Page 3 

taxpllyers !laving 10 relain voluminous filBS ol .... les receipts aelding 9,ea~y 10 ~ complexily und 

administraW~ \ne1ftdef1cy 0( the deductIon 

T ... a$!las thlt SItoCtlM IIIrg<lS19,oS5 domflSI!C p,odUCT '" 1M lk>n and 15'" Ia'gesl ln \hit world ' On 

tlItha" ofla>q>aye,s ,esid,,"1 in Texas and the otho, slale and Iocaljuri$diclions Ihal have dedded 10 

raise revenue by levy of a " Ioiesiu in$lnd of an income IlIx. we encoufag& voo 10 eXlel'd or make tile 

salesludooucloon pe,manenllo prO'lide fa'frtess and Cf!r1ain~ lor mi llion. 01 taxpayers. 

Sinoe'ltly, 

Donna Wesl,,,!!. CPA 

Chairman 

'om' 

John M Sharbaugh 

E.ecu1fVe Oor""I",ICEO 
1063 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1007

,,,,,.11 "rrd.'Ii' p I, lo~ult I, nOI 

• 

UNION 

C OUNTY 

C OMMUNITY 

DEVELOPMENT 

C ORPORATION 

IlCCI>C 

~ M.I. s,...." 

W.W .. 

~M.rIo.!.W'O~" 

TO' Tile wa,. ..... '-leans llII>a>tT> .. on .. "" W,,..,, E_l1/ la. C_ 

April 26. 2012 

r.o. 110, U 6 

c .. )'" •. s" ...... "ole< ~7:W 7,1 'S!§ 

" .. '7,.J,,· jll5! 

rloc !Ji",,,, {~.'"" CQ"""","Iyl!<.· •• ,,,..."'II U .. ·ptm,,,,,,- • "'uJI"$. ",,,,I ~"'f«I 

.1n~1op.~",,""IP""."" "",,.,/1,, ('101""". A.~· .1/"." ,11010 ... ("" .. "", \' •• ' ~"',IroJ _, (:0"",," 

", __ .. /,1>< .I"'/<""~ ~""'" "",<,.,Jill/·ro "'~"""I,ft.~. 

,lit ( _ \ '"IOIQ' ('<, ...... /1) /),wlai_'" r...".I'''nd''''' ..... · bn" .. ",,,,*/,,,,."" , ....... '.~ Thlrrl 

ri"",,', Irl.J i'" ~.,, f"""_,,x~ W .. "". c,_,,, "., .. ( r", LIOCt',·U.mJvt-r"""",1,,/u" i'n+t,1 I" 

~ """" ... """,11". "'~'" .... / "",t!""'*J ~r ,lot /i'N"~ to ~-"''' ",s"'''/''1l$'''''' (;/,0/>'",,,, ,y.,. 

\k~~"'" r"">~< .. ~,,,,~"(>, . ('k,,,,l , ... T""",",,,,,,,, '''''/,'''' ("" " "''''''1''<'1«'1 ... 0." •• \." 

.' N_"",, "",/ """" '" ". " .. ~ .,""""" ..... '"" JI .. lIJy '" "".-;,1 ,,, (,.....,., {",,""'" I .. M'~k"', ".""'" ""U",. I" . "./oh ""''I'I'''J ", ,II;, "''''' 1'1>< 1'1t" .. "" I"'''l'''''' '" " ... ",,,,,' .. Ir ,k.''''' """ " .. , "''''>11<'''''''''''''''' '!I'''' ,h< 011>./1"">:''''''_ iH /I" !I,,,,,. <Ij',lh ,I lex;,." ",, ..... ' ..... " '",.-''' ,I"" .... 

do, "'~ "/oJ. ,if" i'"K '" '-'1"'" 

If'IIh ,/0< ""' "''''''f<l/ ,I" Nt", (oJ""" ~ ... "'" ... I"""""it· .,,,./"'1 ,""" ~" ,,¥,.fiaoto J'O".'".if~'" 

~ ",,,,I '." 'i"'. " ""''''''1''''''' "',,"'" ,,"'i ..... ,./t'l! ..... , SJ/ln .. illl.~, .{fo"d'''B "'''' ..... _ • ....t ''''iT ,.," ...... , .. ('"", ... ,..-J,<,,,.~ ~_>T< ... ,,,,.,.111 ""oJ, ," .. _ ,,-, .. " 111/1_ '" ..... ; ... _'" 

''"''''''''''''-jqh.>, "" ./uJI,... "nil "_"""1' /o''''fil' ~Y""" ' ... ·"I'jm.. I/o< liS. ". ",",,'1 "".,' uJ 

,-"~,,,, .A-1o!Y '" """"'l< ~ ',,",'J,' .,""' ....... '" ,/0-' rr ... I~ pm'I~>dtN. ,''' w""lfI<U/"" I~_ .. d Ii" rr_,~, ... .0:. /0, .... 10#. ",."",J '''' J../J •• ,,' ",.1 .. Iou-.". ... ,!fJl ... Nl ... ,'''''''''', ~.,,~ ~, I'~"""'"' 

wl,h ".,"'. p ... t.,.,. """""""",","" """ I~ 1"> ..... """'1""' .... ,.".1""",_" r...t.~,., .-I,h 

In .... ..,;"".., 1_ I"'l'/I_',,,",, ()/o"". ~', ,n" ........ '1/',10< • ".I I''''g'''''' h,~,,~" II.< "n.' 1J.'''ll 

'A'tJII""" Ii' ."'~b:" ""*~ .. ho ,,,,,.11rly 'U~.' ''''''of:/> ,;no ~"'~., •. 

. 11 ' •• 1_1)' "'1<' ,/ii, ._I"d., -"''''''') 'oU 11/ .... " .. ~h .. ,00'11< •.. <11"",'1<1/"'"'''' , .. " 1/JIt< ... ,,~ , 
1064 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1008

l!!<,,,,Jt~(j H ..... 'm 

_o\.l ..... l'r<O_ 1 .... ~Jt.r.. \'_""'""", 

"'MI.){ ...... $o<~ 0l000''_ ,., .......... c-t~o\. ..... \\'_".M.r,_ ....... 1~1""'_.I'-.t~1lonI. 

'I a-pC ...... "" 

~,IIII.."j~," U.'t~ ___ llt.n.\ "-t 

__ 

I~ .......... .:~ .. -...."., 

.~ ....... II ,, tloo~_., ," .. ";II.,,., ~1oJ1.1 \ '''' ... ..... 'MlJ 
1065 

Statement of Unity Foundation of La Porte County 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1009

Dear Members of Congress, 

Last week the House Ways and Means Subcommittee on Select Revenue 

Measures held a hearing to review a package of expired and expiring tax 

provisions known as ~extenders, " which indude the IRA charitable rollover, as 

well as the enhanced deductions for donations of food, books, computer 

equipment and real property for conservation purposes. 

I urge you to vote for the immediate reinstatement of the expired 

charitable giving incentives, which support the ability of charities to 

provide programs and services that assist individuals and families and 

benefit communities across the country, 

Thank you. 

Sincerely, 

Elizabeth Bemel 

La Porte County, Indiana 
1066 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1010

Aptll 25, 20ll 

~., .sir 0' Madam. 

_ Urban e~n Energy . • I"adrnll wlnd !,<0je<1 dev<!loper/manufaet"ff" l>.1-ed In New York. NY ur,'" Coo,r,,', 

to .'tend th. wind energy oroduction la, c,.dit WTC) a, Quid,", a. p,,,,ible. 

- AlthoUI" UGE I •• manufaeturer of di<trlbull'd enerl Y and not mepw.1! lurblnes. Wi! .re dMeIV t"d 10 

ut ility 5<:"le wind project •. In p,articu la, we benefil grully from lhe familiarity of conlraClors and de.elo~" 

with wind l ectmol08Y ~nd far lewer of th,e ... partie. wou ld be confident In.I.llir>£ wind turbines allhe ir 

"""'"" or places of by,in ... llln" PTe i. not "",ended, 

-We monglv urse Ih" commlltee to immed,atelv I.~e up an .'Ie",ion 0/ the wind ene'l V proauctlon I •• 

(r.d~. 

Sinc.rely. 

~Oll Van Pelt 

Ifi"" Pr.,klent. fng,neering 

UrWn G'een Energ'1 ~ 

• - T 
1067 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1011

ON: 

TO: 

DATE: 

100 Years Standing Up lor American Enterprise 

U.S. CHAMBER OF COMMERCE 

Statement 

of the 

U.S. Chamber 

Of Commerce 

Hearing on Extension of Certain Expired and Expiring Tax 

Provisions 

Subcommittee on Select Revenue Measures of the Ways & 

Means Committee 

April 26, 2012 

l""t_I>or' ... , .. ..", .... ..t.'-. I, ..... Pf"f, .... 1/u<'IiIaII ... 0< ...... "'. 

",~ Io.. ,.j "" .. I 'n'''''' bo,"", • ., .,.,).' .... , "' .. "I ... .. 

... ",,,,,<. ",,,,,,~,. 'W""·"'""" ~.~ ... ,",'," 
1068 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1012

The U.S. Chamber "fC"m",crc~ is th" "orld's iaQ;est business fcd~ralion. "'p",,,,,min!! 

the inlcrests Ofrrh)re Ihan 3 million busim!ssc5 of nil Si/~, sc(IMll, and ~gions, as "ell a..< Siale 

and local clmmbcl'5 lind industry llSsocialions. 

More Ihun % percent "fthe Chambcr'~ onembcn; ore smoll husioC"Sscs wilh 11)0 or fewer 

employee.~. 70 I"'rcenl of which ltave 10 or lewer employees. Yel. vinuallyall of the nation's 

largesl comJXonie~ are also active member!;. W~ ,Ire pilnicularly rogniumt oflhe problems of 

smaller bu~ine,;,es, as well as issue~ h.'ing t~ busin~'Ss communit) at large. 

Ilesidc~ representing ~ cross· section Mtlle Am"ric~n business "ommunity in ICmlS of 

number ofemploYl"C$. lhe Chamber n:p c~ents a ,,"id~ m:U1:1!';~"11lenl ~pee rul11 by typo- of business 

aud location. E~ch ,najor classification of AIII~riean business -- llIao"faCh,rinl!. retailing. 

services. conslructiun. "holesaJing, and !inance - is rt:l'rc><''IltL-d. Also, (he Chamber hu:> 

subsl .. mi .. 1 meulbcrship in all SO SIJtcs, 

'rhe Chamber's ;fIlenJat;onal reach is substantial as well. II belicyC'l thm &10001 

imcrdcl"'ndencc provides an opponunity, IIO! 3 Ih"'3t. In addition 1<1 the I),S. Ch.1mbcrof 

Commerce's 115 AmNican Chambcfli ofComOlcrce abroad. an incrcasin~ number of members 

:m, engn.l)cd ;"the e.'porl and impOn ofl>l<lh gOods and s.:rviecs an.J ha,'c oll!!oing invc>tmcnt 

activities. The Chnmber /;"\(>1'5 strengthened inlem3lion~1 compclitl>'cll<.'Ss nnd 0ppus..-s anlricinl 

U.S. and foreign oorri~rs ((0 int~m"li()nal bUsinclS. 

Positions on 1l~lional is!iUt"s ~re d~velopcd by II c'-"SS-M'CtiOIl ofClullnbcr mClIlrers 

-'Cl"in!! on cOIlllll;nc("s. subeanllnin~"("s . and ID~~ forces. More than I.OO() bu~; 'C!i5 p«rplc 

p;lnicip;lI~ in tbis pn)(:c>S. 

, 
1069 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1013

JntrOlJucti,m 

The Chamber !hanks CJmin113n Tiberi \lnd K~nking Memb..'r Neal for this opponunil)' 10 

provide f~<.'dt>ac~ on Ihe annu~lllI.~ t~lc,l<kr provisinn§. These I~:( pro"ision~, which benelil n 

"ide range fla~JXl yers, arc Imponanl !o U.S. job!; and Ihe broader e.:olloml. 111e f\lnure to 

e~t<.·lId ,hes~ pmvi5i<,ns has brougJu more il1StDbilitYllnd unecrlainty into Ihe «1InolHY and has 

crealM !igniflcant ehalle'lgcs lo r la~JXlY~ rs pl~nninJ1 for lhe fUlUre, TheChamber sIrollgly urges 

Ihis Congress tOllct as soon~, pOSliible to e)lICOO !hese villli provision$. 

EJ cmJn~ Mnd m!> h~ ~i, t Tn R~f rm 

TIll: Clmmbcr sIro"l!ly supports ~omprelll:" si c. fi"KIloment,,1 la ~ "'limn 10 increase 

simplicity. tffici~n<:y, r:lll~pllrcncy. compliance and gloool eU1n~liliveness. While Ihe Chamber 

applaud~ Ihe hearings a,1d oilIer efforts Ihis Suocumminee and IIII.' Ways and Means CommiuC*' 

have undenakell vn la ~ rdonn 'Uld slrongl)' suppmts (he cO(\ljn"'~lio" ortbcse eITons. we be!ieve 

IhOi tru~ rUl),ilnl""t:Il lax ",fonn is still a lonl: way down Ihe ro:Jd. Thu.:>. in the interim. w~ 

bcli~ve (;on!!Jc~", must take oc!ion on Ihe annu31 ~lcnder prov;~ions nuw_ 

Tbr ~co.l ror Immcdi,,'c Aclion 00 E.,'end .. n 

TheCh3mb.:r bdi~",-cs llull Cong,..:s~ rk:cds 10 9CI immMialcly 10 pl\J, ~,lt Ih" rwf',ati\'c 

impact onj"b§ and the rrnf'ilc economy thm i~ likel)' to r<'Sull from il ~clion on Ihese annual 

c~ "nders. W e bdic\'c Iha! the best wa)' 10 gctlhe ccooom)' growing fast enollg.h 10 cr.:mc jobs 

~nd drive the un~mploYlllent rn!e down is 10 ensure h~lla~~ do \lOt in.:reasc for ,QIlsumcn und 

businesses. Leaving i""olll,' in Ih" handsofbu,;rk:sSCS is thC beSt "ay In spur in ... ~;;Imcnl and job 

crcalioo. Thus. 10 help dd" e Ihe economic r«o,'<'()·. these 3nn"al provisions should be eKlcnded 

immedialely. 

The Chnmbcr be!icve~ COllgr.!Sl; ~hould provide busin~r..ws with eenaimy and 

flI"dicrabiliLy in Lhe Imenlal Revenue Code (the "Coo<"')', "hidl inlum improws eOlHpiiance 

alld rerloxes the cosl ofl>d'HiniSIr(lLion for both Laxpa)"~rs and the gMmmlenl. Many oflhe 

c,xtenders pruvi i<)n ~ have long ~n pan orlhe Code, "nd taxpayers ru'Vel'<)m'" t<lI!.~~CI they 

"ill be c,xlcndrd Wlnually. The l'rcsilknl has als.o called for ~xlend;nl! allof lhc>;c PrQvisiOl,S.' 

Extending Ihes<: provisions laler lind 131~'T in Lhe legislative sessi005 cause'S grealer uJleenai nl)" 

,md billilerobslacles III busin<.'SS plaoniog. Recenlly, extensions orlhes., provisions ha\"~ been 

dQI1C [1:t)"OOeljvely. " bich ':.:< .. ",crb<lIe& Ihis problcm, while also undennining any [ncem;v" ni."t'I ~ 

Ihal Congress hltd cnvisioned in enacting panic'llar pro" ll . In shon. ",'roacli, e rxlcl1siuns 

are haml), idcal Lax PQliey. 

Til" Chamb«r app",eialcs Ihal all !ax po!lei .... , inc udinll h~"" "",uHI ~Alendc, pro"isions. 

mU',L I>e cardullyexamined inlhe COn1e~L of r .. Ildamenlallru.. refolln. Ilowner. we musl nol 

deb)" e)(t~"ding thes.: provisions whil~ ,,-e cnf:~g,· in thaI deb,~tc. 

, \ ~ "'''''<>'«>' '" ''''' Cude w< '" .... ' \"«.,,.1 R« ...... · Cuik-"r L,II6. ,.. , ... 1HI<J .• nd ,II< " .. """ .... " I"''''''~..,. ... t 

'''~' ~n<lo .. '', . J .. ~~ ,,' ,11< ','"""",. -(;.-.. 'r.>! E_. rlin>d"". ur,,,,- ,~ .... ,;." ... ~".'" r .. <2012 K .... ,·n ... · L'~ '£>u>.J,.." 

/1'<'-"" 11 ,1 Ij. 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1014

As nOletl nbovc. llIany orthe~ extender provision~ encompllss deduclions and cr .. '<lils 

Ihal rove bttn in Ih~ Code for mlUl)' rears and have ~n c~lended mulliple lime,. Despite tl\cir 

npiralion dal~s. such pmvisions in realilY are long.<landing deducliQn, nnd creditS Ihallaxpaycrs 

have comc 10 rely on when makillg bll il~ ss decision,. N~w" heles,. the ul)Ccrta.inlY of ~~pired 

deduclions and credils Can haw ~ material imp:lel on a busillcss' bollOm line in cenain C:t:;i:S, 

reqllirin~ ('cnain disclosures such a~ in linaocial ~13 lcmenls Ii ling.>. whi"h c~n adversely affeci 

the mrsin<'SS nl""" bt'O<ldly. 

For example, cunsider Ihe activc financing cXCCpliOll. (J;;n(rJlly, under thc U.S. 13 ~ 

syslcn •. Amcrican worldwidc cu'npi1nics are subjcello lax on 1m: Ileli"e rl'reign cam;"!!> ofthc;r 

ford!;n sul;>sidiarics only when th\lSC camings arc rel"urialcd. The Subp;.11l F ",ll'S upcrn lc 10 

subjecl American worldwide companies 10 currenl U.S. 13 ~ on CCllain p"ssi,'" irn;omc carried by 

foreil:n snbsidiari",,_ TlJc a,,.i,,, nnancing ex"cpli"n g"""rnl1y ~n u"'> Iha! inco",.,. fmln acti,,, 

fo",i~ bu,irn..-ss opcr..rior,. in the financial !;i...:I"r is nOI 8ubj~":1 to ~'u""nl lax31ion in thl' United 

Simes. TilliS, Ihis provision milig.lles Ihc doubl" lax~li"n "fsuch inco,"". I""",by hfinsins Ih" 

lax I",atmenl of American worfdWide fin~"d~1 sc,,'ice providers inlo parily with tl~ir 

inl"m~lion;Ol cOrnpetil0N. This proy,~io n "liS in the Code for n }eurs and waS "'JX'Illcd b) Ihe 

1986 Ac!. nlt' hisloric81trealmenl was reinSlalCd ill 1997 and has il«11 in Iht Code sioce Ihen.) 

A pmvision thaI has tx..:n in the Code for 91 oflhe 102 )'(nrs iI has CXiSIN CM hardl)! be 

considered !e,nporary. 

TI'H.' ",searth and deveJopmcnl (R&D) taX credil has b.:en in the Cod~ for aimOSI 30 years 

311d is 3 proven ioeenti"c for driving inveslment in R&D, encoumgiug I0I111tcrm capital 

inl'c.<tment. n'''lllingjol>s. Slr"nglhcnilllllhc economy, alld spurring inl1lwm;on io the Un l~d 

Slales. ' Sioec coming into onke. Presidcl1t Obama. iI' C1\Ch ofhh Grecnbook explaMlions orh;~ 

budlltl3ry 13.~ proposals. has propos~d expandin_!; ond mu~iol! permanrnl the R&JJ CfNi!.' 

Tile above examples arc nOlo by any m~al1s. imended 10 be a compkhcnsive lisl of 

provisions Ihat are of imponan~e 10 Ihe busillCss communily, 'rhey simply dem"nSlratc Ihal Ilwr(' 

\ 1"''''''''1<01 by,lI< \"" , .• I-"'"o l~ .. \\ ,or\; "",C;~"'l I .... ,I" ~.",,.-d ~flh< 11 ..... "''''' l;,,('\I1''I'. r", 

I"'"-"",llrf",,, h<l~.nm."~ "" I',,,,,,,.,.. II.'. 1kn" .... ,\b"'h \!>':l0J>. '"I'It< Suhp." .' l<u,·~J""",,< .. \ ~"""" 

l' «ro'"~,, SIIuuIJ lk '1k 1'0tml .... ' .. (lo1o«hJv. 2O~<S1, 

• S'" ~ \,1.<;. l:..p."n><fl' ~f ,"" T.","")'. " 1",'''''"'1' '" l'.I< LQrn .... "ov ........ 'j"" l\enofor, ,Jil;"l",,<"lg ,II< ~o><>,<h 

anJ 1;"('<,",,,,,,,.,.,.. (It&Eyf"" C; ... dH" (11,,<1< ~S. 2/)11) (rK.or"'l\ ,ho, ,II< R&D cr<J., ., ," '~"<r~ ""m " If ... , ..... , 

olf,,,,,, •• ,. .. , ~, .,,"',.,<># "' .... "'~ ..... ..rm,; 'Q" "'f'\'<I ... l>ij!h ~".l\' ~' ''l. ,\-.. ..:. c.m>II. ~.",<. ~"J 1w~. -l'lt< 

R.,,<I) C<r<IiI, \0 . n"''''''-r-'"''l tI-w f"'"''''';'-'~ ........ , h· (S« '''''~"'' :!fl( ~"""""!!rI ... hl,.:I .. ,,, • .,.,J 

.. ...". ,\" ,",,'''' ""r><" " f tI« "' J'l cr«llo) 

' .!.ttl ....... ' I'JrI!lon" .... "f'l>t ,IJ"',,"" .. "''''·.n ..... 1 ,.or :!!'12 R"'"",, 1'"""""" (1·.I ...... ry ;"'11,. G .. ."t 

Ii,pboutioo" ~f th< All",,,,,,, .. ,,,,,,. f't<Ul \ .... , .a'i 1 K""""" I ... "" .. .." (I',bru>ry 101In), G.""",I It>.pb.,",,,, .... ,f , .... 

1.1,,,,, .. ,, ... ,n" 1',,,,, 1 \'"" :!91O <I"'''''' 1'"",.....1. (:II.)" 201 '~ J .. """ 1I.s_ ('''1''''"''-''' ,.1 , .... T •• ,,,,,'l-, " I ... """"1 on vA \..<""P<'"", .• " .. ~ Tho ~'i" <>fLnb",.,,~ ,II< M.""",h ,nJ I'Jrp • .."",,,,, .. ,,,,, (RoI<l'.) T •• C""",~ (~I.I,.h~. 

::!I'll) ~ .. "",~ ""., • "",~' I~ ... ·tI «"'" ~"", t.J ~"«"R< "" ... ,n." 5 11" ",n.", "' <1<""' ..... P"' ~" .. ~ , ...... "'h ., ,k',1 I" J ..... "'1'f'O" ,,,,.,,, I ........ n l' ~ «>df<h ~""k ... io\., """ '''''II''''~ _"". ,n."tl"o<n '" .,.-."t/'L 

<II"" 9' ,i)< "«I,, 'Ior ,.......,."" .. /"i./f '" ~;>J (""I'h ... ,.o.Jni1 

• 
1071 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1015

arc IOn&\,tanding ~nd SDUOO tax policy tcasons fOr many Drlh" annual cXI"ndcr provisions and 

lhatthes<: ~inJs ofpnwisious hn,'" vcry reDI impacls 00 American businesses. 

I· .... '·isio ... ThaI ll ~n iv J.e Cn tain Ik havior 

InUCliul1 n'ltho.~ Il'ol'isions has I""al ,on~C'<Jlt~nc"S. Bu.ines,c. n",,"'<1 ,,,ruinIY ~nJ 

ptcdictallility, R~trooctive tax policy simply docs oot achi~vc this goa), In facl. .1tlimcs, (he 

fuilure 10 e~lend lhc~ pruvi ~ion> hun~ h~ very pu~ lor "hieh these pr(lvisi(ms 11:I,'e ~en 

enact~. 

Thi~ i~ paniculmly app.1renl wilh provisiuns im~nd~'(j tu inCl11li,'ize cena;n b,:haviQrs, 

When COIl~rt:SS fails to .1<:1, provisions such as the meryy eflie'''''' appliance credit, tlK: bioflOds 

crI.'tIit, Hnd tht prod\ICtion 13)C credit, do nOI upcnue eflectivt'ly, Industries (hat arc in their 

infancy are dltmal1ed bi.'t'au.o;c the incen(iws they nttd in Ihe Code to get t!>os.: industries up and 

ruoning arc I10tlhetc and tilliS, ~pans;un ..,fthose industries dgcs not \lCcur, Tile daUlage is very 

",alas pmjects 3re not Und~ 3k~n and products 3re 'lQ! dcv~I<IJlCd , 

As thi~ S"lx:ommiH~ conSiders renewal orthe annuDltK ~ e~tclI<krs provision~, il must 

consid~r the o:bm~g"s ini«:lion brings On prOvisions Ihal stri\"~ 10 ensur", competilivcncls, 

Tbcsc provisions playa "hal role in (he Slob.Ii comJX't,tivcncss of Ameriean world" id~ 

oolllpa nk~. l1l<:se extenders not only II<:lp levc1lhe playlllg field for Americ"n worldwide 

cOlllpllnles toda~, Ihey offer th<:~ eomp.10ics" chance u> comSX'" ~s "I.' strive 11"1 \Wl.' rl~1ullh e 

tode in Ihe long run 10 mak( it mon: in line "ith nth~r countries' tax luw~. 

Th~ United Stal<':S is turr~l1ljy the Imly O,!!!anisalion for EcQnomic COOI"'r3tion and 

I)cvdopment (OCCD) ",,!iOll to continue 10 employ a worldwide system of t3 ~~tion. ltm~ 

slObjC\:ting Antcrkan w{'rJdwide eompanil'S (0 a S<'cond layer OftaX3tion that Iheir foreign 

coml"'li!ors don'! fac ... , While provisions s uch as dcfcrrdJ and cenain foreign !as. cn'Clits mi(ig.lIe 

>0011.' of this dullble mxatiOIl, ..,Iher f'l'ovisions, such ~s (he acti,'c Ii'J3ncing ccptioJl (dii!i:usscd 

ab<we) and cuntrolled fureigll corporation (CfC) lOO)..·lhrough ruks, require Jttnllal 

C<lPlgressional "Clio!) to make su re com panic'S affccled by th..,.,., rule'S are no! subj<-'Cleo;! to doobl~ 

ta~ali on, 

As di..:us....J ab""e.!he 3clive finaocin!? exception is a lon~tandin!? piec~ r!h~ Code. 

~.,..cntial ror mitigaling <kJublc t~ntion, Lil.cwisc, the relat~d CFC luok-throul!h rules 11100 3re 

cs,elltinllO miti~1ting double taxalion, These nile" were originally designed 10 help Americrul 

worldwld~ companics simplify nnd OrgnOile their num~rous u~idiarics "'ithOl,t creating isstICS 

for those companies with Ihe lntcmal Rcvcmli.' SCTI'ice (IRS), Under thc rule, rd.1lw CFCs ofa 

~OlllmOIl U.s. pIlrcnt cOl11pilny elln mllke cross-Ixmkr dividend_ iotcre~l, rent, 'lr r"yahy 

, 
1072 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1016

p.1ymcnls witooul cn:3Iin subl"U11' incDme, as IDng as lhi" "mOuOlS are I"'id from aClil ~ fo,eiJ;ll 

bu;;incss profils or efTcclil'cly cOl1nttled i!li:omc of lile f'IIyor. Accoruin!l; lu lhi" ~ ... islali 'c 

history." C<'l!lIlr'CSS belic\ed IhM the provision would make American worldwide companies and 

AmcriCllIl worl;~n; mol\' compeliti,'e. The rule pennits FC~ 10 rdnl llhdr adi,'c lordgn 

camings where rhey nre mOSI n<,<:ded Wilhoul incurring Ihe Immediate 8!k1itional In ~ Ihal 

compllnies based in many IlIhcf cnumrit:'S never In.ur, 

Tile"., IInnual c)(tende" nrc e,>enlial pit"(:L'$ o rlhe Code tl\:lt give Amc,it"Jn worJd\\'id~ 

com(%lIlic, /I fighting "hance IIg'Jin~1 toreign c\>I1'pclilol'$ by )O",crinl! our ami.cDI1lpelilivc 

nl~rgin.allax rJle, providing R&D iocenlivelllO encounlge research wilhin our borders. and 

miligaring Iht: p<Jtential d()ublc laxalion ofl al'l,;<' sc!?mCnlS urlhe Anleric~n bu~incss s(:ctur. 

Curre,llly, American worldwide ~o",paQi e5 face Ihe hillh<'S1 hight-'St 'narginal lax Me 

3mOng the 34 counlries in the OECll. em April 1,201 2. Japan rt'd"eed its I1Ite, 3nd lite United 

S!ale~ rose tu th~ tup spct "ilh Ihe ;ghc 1 marg;nal cO'l"',me ta:< ",Ie in Ih" OEcn.' 

The e,edits and deducliDns included ;nthe annual tcmlers provisions help milig.1te tlk: 

impact of o ur ol'cr-buruenwme marginal I1I1C Hnd ouldalc'<l Cf>de structure, reducing 1<I.~jXlye rs ' 

efT~""liw tax rate>; 10 levcls Ihm giyes Ihem B dlOlrK:c to compete on ~ lc,'d playing field with 

io reig'\ competitors. Congress' failure tn extend lhes.: pro visio ns seriQusly hmupers the ~bility of 

Americull world"ide cQlO)XInies II' cQmpete •• 'Tt'llte jobs, 3nd driv~ cconomk lifl"wth, 

~scareh If.: [kve l')pmcnl (R&D) 

III 1981, lhe Unitcd Slates was Oil(' oflhe iin;1 countties to add all ill[eulilc for ~arch 

and d"",lormelllt" lhe Cooe, For a per;od;1"I the 19~O·~. the UI"I;led Stnt~ I',as al the forefront 

orR.tD lnccntiws. Ilo"'L'wr. other couotri~ soon followed, Introdllcing their own R&D 

incenlivC$. By ~OOl! , the ;t~d Stale's R&D la ~ incelllivc mnked 17''' owrdll anlo n);., t OEe D 

nal;,)ns.' 

Olhe, counl,ie~ hal'e moved to inrentivil.e R&D, through adDption t)fsupe, dcd",:tions.. 

credits, and patent :md innovatiDn OOxl'S. Thl'Se c'UulI1r;t'5 use lhese ioc<'ntiws 10 promDle Ihe 

rdoca tiun uf R8.:D D~ratimlS '0 their cDuntries as part inn Dva tiDI1-ltd cCDnomi,' development 

~tMcgie5."Y Thu~, lite United Stak'S' R&D cn:dil mUSI cOIopcle with the aggrcssh'" illc"llIj"es 

mattet"" by otller cOlll11riC'S, The failure to. at ~el)' least, simply maintain D ... r currenl credil 

itw:n:a;;o.:s Ihe ,isl: that Ihc jobs, ~apiwl investmcnt, and inlangit;.lc propeny dc,'<>Jo!)t'd in II><: R&D 

pro<'es8 will move outside o ur b/lrdcrs. 

Nationa l CDmpdili" r5' 

, l"J''''M CLom~".., <n, T .... ,. "', "1!lotboo.oI.Ofl.." ... ,;."" Jo ooa<J Il ~ IO'NI c."l\J" "'. (1"';;. 1. ,17), 

'.' " r.."".J.,.,, '. ~ o,'J"r.., ,1<><1 C' w"l"'riI,,· ... ,«>. ·'N, .. J lI.p ,,' R",,,, ... I"' (1'''''''''- .'< '11 ) «""'''''''''"'!! "" l'-"'-

ma(!:l! .. 1 ."I'(?/>Q'" rot< """ ...... ' 1"' "''9. '" "' , «>U", ..... ), , ' .... tnf, ........ '" .d~.",II~", ... """ 1',. .... 1.>''''"'. "w J'''' ' t", r"' p.>nJ,,'II ,1\0' M&PT" t. .. -.1i'," "~ ''' 

2(, .~<l 1J). • 

• f .. l)"l<>o n<, ·'GkoI,.' "' ..... rnr ~"" O 'J " hl<"""",,· 0.1) ,?I'l l). 

" 
1073 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1017

Gloool comf"'llllven<'!is Is nO! only Ihe only 8Sp,'<:1 oflhe ~cOflomy ;mpacled by ;nsel;on 

On eXlend ... ,.,.. Con~idcr llll' dcdueli<m forstat~ and loc~1 sales tax. Absent from the Code fot 16 

year'S, il W8S re;nslatc..1 ;1'1 .2004. ,G Th;~ prOl';S,Qn is essml,al for ta ~payers who li l'<: in ·'salc~ lax 

ales,~ By ~lIowiog residei'll;; oflhose SlalC!; 10 deducl slate and local sales lax. il rlacc~ lhell> on 

31'1 en fooling wilh reslde"ls In income lax SIMes who can dcducllheir l<lle incolllc ta.xcs for 

federnl ru~s, This provision wai ;olhe Code for an extcn<!cd ~riod ol"t;m': and Il\<:n ""'~ 

r<:insl3ted 10 bring_parity to Iho:5C 13xpayers in sales tax st.~tcs. The damagc to cOmf"'I;1IOn. both 

t;lob:Illyand locally, is f ... 1t wh.::n these provisiQns are r>OI extended. 

Abilit\' of 8u s, eJ;~ es tu G row 

[HaClion also hurls Ihe abilily ofbusi",.""SS<."5 lu llruw und ""pa"d. Plovisio"" mr[o;ell:<1 to 

(jl'ickcr CQS\ recovery. which PUt c~;;h in Ihc pockets ofbusitK:SS tQ creatcjobs and mala·, capital 

Inl<:sunents, are also l,i~dcfI."<J . 

COll5 idcr the IS.year d~rf1."<:latlon period for le:lS<'hold i",pro, ~ments, "'~tau"'nI 

improvcn>ents and n ...... CO''''IOICtion, and remil improvemcnts. which ",n<"Cl'< the lax pollc) 

principle th.1 coSts of3;jSCIS me allocaled OIer the period in which Ih~y arc used. The I S·}ear 

reem-cry fu, such imprOvemcnt is pr'l.-d;calcd on Ihe 1'<11;01'131 ... that m.,.currenl 39.5· yi:ar 

deprecbl;on perioo for b\lildin~ bearll IInle rclatir>nship 10 lhe economic lite orsuch SlrllCturcs 

and .,.wn K~" to b"ildi,,~ impnwi:m~nu ~nd "pgrnd~-,; n."<juin:d in s"c"e~~ ful busi""""""" in 

(lilnicular r'l.'Sla"rnnl~ and r<:lailcrs. Business properl)' llll"'l be remodeled 3nd updated 

f"'riodicniJ), to Inaintain 3 posil j~c consumer environlllcnt and 10 remain rompet;l" 'C. nnd!he 

lifcs(lilu of such UpiLatcS is far shoner Ihan Ihc 39,j·ycarlicprcciatiOfl building I;fe. Similp,ly, the 

durnl;Qn oflc..,;e,; OI"teal prof"'rty an: Iypically for a f"'riod " -ell shon o f J'l.S y"~r5, f:iv;ng 

improvements 10 slich rrop<>nya shorter lifespan. Thus. Ihis IS-year rceol'ct)' f"'riod ,-ro'lCes the 

COSI ,lfcopilal espendillor'!S Ilnd increases cash nOlI. In 11In>, thl!. prO\'id~ ncC11ed capilnl fnr 

Americau bu,i~se~ ~ IIhich trnn,latcli inlo Americanjob5, 

ConsiMr also the f\lllroad track nla;ntef1<1nce ta~ c",d;t. Enncte{1 in 2004, il en~bles sm~ll 

und III;d·si7~ roiln>ad, to m(>(leflli~ealld c"hance th~ir (lwn infrasln,cm,.., to m""tthe <(lUlIlty'S 

growing frcighi nl .... d s . . n.e Fcderdi l lighway Admi"ism,liQn has forecast a mp~ It-.an 60 pen::em 

inc rea!\<: in freight dema"d aCrt)$s allu'-ansporlUlion modes by 2040, yet we l~ck adequate 

C~p:lC;ly It> m~~tthis dcmarKI. W~ cannot compete in Ihe Illobal.~onoony without significmll 

upgralks tl) our infrnsm,cliltl.". and this is an industry which pays its own way. Wi!lIQut direct 

gt:" 'en''',eitl illvolveme~t.. Ihal is cxrarldi~g on its II"-n 10 the l)cndil orthe conlre U,S_ ~"<:Q'lOmy . 

Additionally, the $\."<:tion 1111 film prodU<1;o·" ta.x credit plays an im[lQrtanl rule In pUlling 

ca.<h bnck '''10 the pocket:i ofbusjness<-~ that cre~te A",ericanjobs arKI ","k" capital IOI'I'Stments, 

cnact<-d ;n 200-1, Ihis "",dil provides ";Ial cost ""cowry for an industry Ihal is ,nhcrwi<e 

exdud~-d from ava;lin.g Itsdf of lhe gene",1 bonus deprecialion provision _ Extending""Cllon 18 1 

will continue l{> promo!;: C'~ piwl ,m'<:stm~n\ and prixlllCtion in me Unil,-d S1:ote~. This 1101 only 

prm'idesjol>5 within the film industry. bul fllso has ripple cfT,~ts across brooo se<:tors of the 

c.:onom)' by gencffitin!:- rnenue am! jobs fora """!!" of local bl.lsinc~S(."S. 

" J"'J"." C"",.\lfuJr, .. "" '1'*"",,", "JJ..mr'", "fll It. 4Sl1J. Th,· -.\n...-. o~ c ........... lei Uf 11.";.- q<:X. 41 

"'J 0"'''' ~Z<I( ). 

7 
1074 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1018

In sum, Ih,'S(! ~xltndcr.l >iJeC5SC,\liaIIO pro, [ding Ih~3CC"SS 10 capilal busin~sscs ,~uirc 

10 suceoX'<!. 

"clu n 

T~(;hambcr Ihank$ lhe Subconuriillec lar Ihe QPpoonunily IQ CQI1"l1~nI ol1lhc ~l<ICnsiQn 

ofthcs~ vital laS provisions. 'rt..:, Chamber 3pplalld; thi~ subcommittee's <:Qntinuillg w(lrk 

towards (;(Impreh~nsiw f'tndamcnml tu~ ~form. Ilowewr, wl" believe that the esten.km of 

these annual extcndtor provisions canoot be dclay~-d until work Iln cQlnpn:hcnsive lax rcfurm is 

cotnplctt. TaxpaYl'n nl-ed stable and pn.-dicwble rule~ they can I"\!"ly opoon whilt- that important 

proccs~ is coml'lctcd. We suongly urll~ COOl!;n:SS tu aCl 4uickJy I" ~)(tcnd Ihcso: lon!;Slornlinll 

policies anti preVl1ltunOlI.'C<."SSII1)' damage to the ,."\;OI1Umy and job cre;llors . 

• 
1075 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1019

UTAH 

"!J ClEAN 

.... ____ ENERGY ... _._ .. 1,_ 

""°19.2012 

P' ... e ,on,ld., ,h ... <""""pn" 'or ,ubm, .. i<ln for " " ,O<{),d ~B" 10' 'h" (""" .. ,tt"" of W • .,. .Tld 

Moan, 10' I~ e Hp3,'nl on C.''>'n E.pi,'''' la. p, ... lolon. ,.",dioM I~ . ".",ion of tile ,""" ..... Ie ~n.'.v 

P'''''"ctlon T,. "odiliPTq, On beh." oJ Utl h CI.,n ["O'IV, • • on-proH, ""1"iU,i",, "'''''''' ",I .. lon r. 10 I .. d 

~nd o<co:Io"o<e ,n. d .. n ""., .... " ... ,/""".,,,,,, .. i,h _'s",n arid . , 0ert', •. I. ", .. ~1"~ t~ "'l><'<lloliv "'I" 'he 

",.",be" of the Commltt •• 01 W.V' .nd Me,", ond the Unl"'d 5 ..... C"n$'r<' [0 .".rod Ihe ,,,,,,wIble 0"0'1'1 

PTe ••• ~pedHloo.r'I\I" "",,'bleln .d •• "". of '10 10U ,,~plr.lIo" 

The .... ""M of the pre Is. "'hclll.,, •• f"r mlnv """n ...... , or,'""OI"",,, I nd i<>d",",." involved In 

,ne ,, .. " loch ",'c. In Uton . .... . reUo"'onllo ,"'. foot. tho ulOn tKt>n<>lon ("until. Whl,,, "p,ue"U e •• , 

s,oro "'sh.,,,,,1I. ql. «Io.e., .~d ,' . .... ,O<~ ,o"'p,n'.' I. U"~, ro ...... 10"., '0 Un.', Conl'.""o •• ~" 

l.en""" fn FeDru.ry lOll <0111"1'''' the e.ren.lon oI,n. Pre: I. <"P¥ 01 IIIIs ~Ile' i, . 1I0<1>ed wilt' .~ 

comm.n11, "', ,ef.'e""el, In.1>eif ~".r, ,h. UlOh l ochnol,," CD"""H 510'''' 'I",,~, "tIlc , uppoft, I!!,i,\ooo" 

.h., tin '.' . ""'It ..... bu~i". " ,limo •• ru, h"h~· m"''Io''''., h,.hil,O."h compon,", ." Ih , .... , UTe f •• I. th ••• 

PlC.".nilo. will h • ." to .lIit end .nd ..,_<thll~ •• ~. th., VOIi ,"ppo,I,hl' ,,~lal poficy,. 

In .dd:,I,," to tho bu.l .... communitv, to. C""MII""'" of PTe "' in,<".1 ,,, U .. n', oconomv :md 

_,,101<0. "W"."OIl' co"""u"i,I •• '''0'' tho ... t. h~ ,,"nor-t.d 1",,,,"n,,,1y I,,,,,, ~ d".'op",.n, 01 nO!W 

,.""w.bl. e"",1V 1 ... 1i"i<'< In ,O"n' V""~, i>\dull l,.. , ..... SI>4.I," fo<il Wind FOfm, ,I'Ie M,tfo,d W'n~ P,ojfa, 

P ..... , , '" H,.rod ,,,<! In .. ",o Ilot Sp~"" Geo!" '''mol Plant. EKh 01 \II .... P'oj«I' _"tc/;w,/jIIt:""'''Jed I~' PTe 

'" g""'''''' ~w job, Dnd JIgo,rIConr "'MO",it ;mPl1ao ... Intj, ""P«i'''''' (I"/rII;,,, Dnd ""mm"niI ......... ""u.1 

P'''l>I'rtv , • • p",""on" lrom 1ft"'" p,oj<;:t .... c"nttltlutml new luM' I ...... ' mllll"" p .. ~eof. '" fOrne '~ .... l 

10 U,"~ -><I>00I dlW!c15 , nd 1oc;i'ln''-'WuU,,' ' p'ojem, w~De ,ile «.,rlnl ~w pf"J ... i"''''.'''wt~ 

opportunllie. In U"~'. "" . 1 communltie., Tile r.,. of .'mll.~¥ benellria' ~w.b'. p.<>itcl> In Ut.~ r, 

Int. ,d.epeod.nt "'ith the •• "'n.1on of tile PTr:. 

A, wI'~ .,.., 'ndU<I<'I. I~' .""II~V ,,' 'e""w.OIe ..... '11 Old",,,io. i. ""HV<,,".laled "'i.~ .n • 

••• U.blllly of ".ble .n~ CO",KtO.' ""Iic ... . o fos •• r ",", •• 1 I,.",ta, ... 'io •. Sound ","ICit. he lp <1M •• • "'''''' 

", .. , pl'Vlt\ll ".,d u""" wl>i<n 10 C""'I>I'I. wil~ ,,""', n.~ 'ecMoIo«T." ",<>II of wnidl <on II,,"" to ben,nt 

f'''''' Io"fl" " "dlnl "'''",ie., .M .. [sl' .... pe lley J"P!>OrI. 

Th. PTe lo • fOund "n"'!lV ""'icy I)," hI' " ronJ O1p."iwn .l>PPIlf\ .1\0. ,,,"Mue' to<I'Y. ~ .. ~nd n~ ,h. 

PIC WIll " . ... mor . .... m.f""n .. "n"'.u,,,",. job., Inc,. . .... ''''' .... ~ """ 'I'1,,,,,,,,,,,,.nl, . nd . , p.M "Uf 

'''PP'''' of </lon, dom. "k, a!fOldabi • • ""ri<!~. A, ,urn, I "'''''I'''' .n",..",." \'Ou ." •• tend ,~. PIC "nd 

'PPIO<1o'. 1'0'" con,>def.'1on of \~ ... "" .. mon". 

\a,. Blldwln 

I.e""', PoIicV & 'l u"'Ot. A .. ",;.," 

Ul;>n (I • • n E~'f't 

1014 t'" A""nu~ 

s.~ lake r~V, UT !410~ 

,b>ldw(J,@~I.h<".n~~'fI' .,,'. 
1076 

Statement of V. Brandt 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1020

V, lIr.mdt 

~SW.IO"' SL 4R 

N~w Yorl<. NY lUull 

brandt vroL"''''' .c~"' 

:;1!-~:;8·:57J1 

D<:ar Membcn ~fth. Ways 31W M~an. Co",,,,;,,,..,, 

Tile long I.roject dc"el0l'",om .nd "'~nufac!Urin ll le.d t;me, r,,, '" ;,111 energy projects mcan Ihol tho PTe 

hh .Ire~dy etT~cti\'ely c~ri",d . Right Ill'''', wind prl)jttl "d(ll'l' fl. ~ n01 tDa~ing pIMS;" the U,S. and 

Americnn n""lUf.01urm ON nOt re~ei in~ Qed<N. I he wind ipdU)'1ry io r""ln~ Iho ... """noe of Ihe 

OOom·b"" t}d,' il ha, S<;('n in m'"ioy,-yean, "two Ihe I"rC wn.llow"d 10 c,pir •. In Ihc ye.J'> 

followillJ: ""pinltirn,. ;ru;lall"tiOll.dropl'l'd be,,,,een n "nd 93%, "ith eorn,.pund'ngjab 10". " I don'l 

wan'llti; 10 h.lrl"'n aj!4in. 

~q<>ipj>l.'<l wil h the PTe. the" ;IId cnc'YY i"dustry h.g CI,mribi"ctl imprn,i".ly 10 U.S. "",'noonic 

de-.'dOl>Tll<nt. 'n.. PH: h.s t>",," ;lI>trt'menlal in helping 'he wind illdu~ry '0' 

l.o,,"trlne cost of .... illd 1'<1".' by mor~>1llan ~ 

nnuf~<tUN c'QnlpOrlents fQr wind ,,,,Itin •• M 0, •• 4QO tl oS. manur~<tu.rinl\.f~;liti~s 

I'Il",trlh. ~"il'~lC t of 10 ",illion A",~ric"n lIom~' 

I'roviee 35% o(all neW U.S. power tap;l(ilY in tht plIM rl)ur~<~!'S 

In <hon. Ihe I'TC d,ivl"; billion ~ofdolla!'S in ",i"ate i"\'~ llncn,;n A,neritan winJ pont' --lind thllS Ihe 

Am~riC"n "",uo()fl1y------<",,h )~ar . [n~" Mi"g the ~ml)tln' ofp.l" •• that ". g<' frttm rl~Jn. KlTotd3b l. 

""'tllIre ... IIUJI M'III ,,..,,:r nlN /Jill;, I ""-b""o",,, Thi, lox credil prtwi;\e, !h c,n"~ help rOl' th,· \\;nd 

;nd,c",)' to cOnl;n"" to do j<>" that. 

v. Um"ul 
1077 

Statement of Various Citizens of California 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1021

U.S. House of Representatives 

Committee on Ways and Means 

Subcommittee on Select Revenue Measures 

April 26, 2012 - Hearing on Certain E~piring Tax Provisions 

COmments Submitted for the Re<ord 

The undersigned residents and property owners of the State of California respectfullV submit these 

comments in response to the April 26. 2012 Hearing on Certain Expiring Ta x Provisions. Our 

comments are limited to the Production Tax Credit (PTC) for wind energy. 

E.e<utive Summary: The PTC is often credited for most of the growth in the wind sector but 

attributing market activity to the subsidy is overlv simplistic and fails to consider other crucial 

factors driving development. When evaluated against key economic and environment criteria. the 

cost of the subsidy has proven excessive and the benefits to American taxpayers minimal. If the PTC 

were to expire, the economics of the industry would shift to States with renewable mandates. 

Power markets wil l ultimatelv confront the real cost of wind energy. and price it accordingly. The 

overall impact on the industry would be far less severe than proponents claim' . 

Supporting Statements: 

High Cost: Since adopted in 1992, the cost of the PTC for wind energy has ballooned from SS 

million/vear in 1999to $1.5 billion annuallv today. The open·ended subsidy of J.lt/kWh in after·ta x 

income represents a pre-tax value of approximately 3.1C/kWh. In many regions of the country the 

PTC now equals, or is greater than, the wholesale price of power. Even if the PTC were to sunset, 

tax~yers are still obligated to cover nearly S10 bill ion in tax credits for wind projects bui lt in the 

last decade. This is in addition to the $15 billion debt for wind projects eligible under Section 1603 

(including anticipated 2012 grants). 

IneffiCient: Since the PTC is uniform across the country it is highly inefficient, supporting poorly 

sited development in some areas whi le in other areas supporting projects that would have been 

built regardless of the credit. This is true in Texas and the Pacific Northwest where wind capacity 

exceeds transmission capacity and wind is curtailed' . In New England the PTC likely pays more 

subSidy than is necessary owing to aggreSSive State mandates. Utilities in New England routinely 

sign long·term power contracts for wind at prices significantly above market. 

Other lactors advancing wind development: The industry insists it's at risk of a slow·down without 

the PTC. This view ignores other crucial factors driving development including state mandates and 

natural gas prices. It is not possible given available data to identify the extent to which the PTC has 

contributed to growth in the sector' . In lact, demand lor wind has eroded recently due, in part. to 

, Linow ... U I. 20 tl Coni, ... ;on. 1 T • • Iimony http://seion<' .hOlJ" .IOY /h •• fi lll$U b<"""m I ... -in . .. tii>!","-.nd· 

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, Wi .. , . nd 8oIi",." 1010 Wjnd . « hnolog;." Mark ' """ , (1011 ) 'iii Mtp:II. "d. bl .,oY/~;oJ .m"'epon'/I b"l . 

4820<: .pdf 

• J";nt "'mmitt •• on To,>!",", Pr ... nr lo ... "nd 8o ro" nd R. Jori"g To Ta< Crt"dj" f()( ("',ricj!» Prod""lio" From 

R. """,abk Sou",,,,, (1005114 http.:/lWWW.jc!.IO_/publiutio" •. htmllfunc_ .. artdown&id_ t 5 79 

Page I 1 
1078 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1022

states meeting their renewable mandates. lower natural gas prices further reduced wind's 

attractiveness as a 'fuel saver' The EIA now forecasts flat growth in the wind ~ctor for this decade 

regardless of what happens with the PTe'. 

Job losses: Despite billions in publ ic funding the wind ~ctor experienced a net loss of 10,000 direct 

and indirect jobs in 2010 bringing the total to 75,000' jobs. Most of the remaining jobs are 

temporary construction positions requiring peak levels 01 development year·alter·year to maintain 

current levels. Attempts to attribute job creation to the PTC must be tempered with corresponding 

job losses due to higher renewable energy prices. The State of Vermont found that adding just 50 

MWs of renewable energy at higher-than·market electricity prices "had the deleterious effects 01 

reshuffling consumer spending and increasing the cost 01 production for Vermont businesses' ." Last 

year. rural electric ratepayers in Minnesota paid more than $70 million in above·market energy 

prices due to the high cost of wind'. 

Environmental benefits: Wind energy is an unpredictable, variable resource that cannot be relied 

on to serve load. Its primary benefit is in reducing U.S. electric carbon emissions. According the 

Navigant", a four year extension olthe PTC could avoid an incremental 170 million tons of C02. This 

"best case - estimate is not predicated on an actual working grid region, but if we accept Navigant's 

estimate the cost to ta xpayers is at least $23/ton C02' , ten-times the $1.92/ton market price for 

offsets in the Northeastern states participating in RGGI! The PTC is a high.priced vehicle lor very 

questionable reductions 01 C02 emissions_ 

Conclusion: The key question is whether the benefits of the PTC for wind are worth the cost. This 

20·year old subSidy is expenSive, inefficient. has fa;red to produce net·job increases that are 

sustainable, and the cost applied per ton of C02 is more than lOx the market price of carbon under 

RGGL The U.s. power market has undergone signilicant change since the PTC was adopted, 

including deregulation. It is not possible to isolate the extent to which the PTC contributes to wind 

sector growth'". Without the PTC, project economics would shift to states with RPS policies. The 

value 01 renewable credits might rise in response but power markets will ultimately confront the 

real cost 01 wind energy, and price it accordingly_ 

• Wiw •• nd Bolin,e. v • "ote : No indeP<Onden' aud~ • • >.is! '0 confirm job counts. $Once any now job in '1>0 leC1ne~v 

weto. must con";bute to "",.-eo.;", the cool 01 e le<t,;c;ty. th;s ,.-eat •• KOOom;C de-sl;mulu,. 

• Vi ~S. T~ f<om,mi< fmpam Of v.,,,,,,., 'nd jn Toriffs 120(9) 12 

h"p:lfpu_wlYi< •. .,.,rmon'.,ov/,".nnin"DPS"2OWh~.'lY0P'P<O~..:<I 2o;n lOT.,iff.pdl 

' Wa ll SU ... Journ.1 Gwgo<I by the WimllM. v 20111 

htl P :If""I;ne .... j."""'/ •• I;oo/$8 1 000 14240S2702lO35924045 77364l44006391420. ht ml?mod .'00'1""" ..... _ ..... j 

• N • .;,. ", e""wk;"" 10><. 1m""" Of 'ht Prod"";.,,, Tax Cndi, on '"t U.s. Wind Mor~" (2011) 38 

• N ...... "t p'ovOd .. no det.~ "" !>ow il d ... ,m"ed off",t,. Study .,wm .. some W'ind bu;k w;thOUl Ihe PTe .mI ""tv 

looked at in". ment;>1 benefit O",f 4 \I't." (1013· 16)_ The <oS! p<of of I"" i. pote n'i.ltv h;,l>of th.n 523/'",,_ 

.. Join' Comm~' .. "" Tn.';"" 14 

Page I 2 
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Supplementill Sheet 

Submitted by: Joshua !!oswell/ 1(ll5 (haMMel, Ventura, CA 930031 (O~bOI@lv~l)oo.col'T1/ ?05-490-

2713 

Date .ubmitted : M~V 10, 2012 

Not! ; I am submlttJns the atlo~e comments on behalf of the followins.(142) fesidents and property 

ownets oflhe State of ullfornla liSled on Ihe laliowinS fl~e (51 pasu. 

P~se I 3 
1080 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1024

Mer dith McCalmont 

3025 Channel Drive 

Ventura, California 93003 

Mary Elisabeth Cattani 

5100 C"l ifornl" Avenue, Suite 234 

Bakersfield, California 93309 

Mesonika Piecuch 

P,O, Bo. 550 

Tehachapi, California 93581 

5tephen F, Rudin 

11848 Ferncuko Street 

Tehachapi, California 93561 

Don and Kri"en Freed 

785 Tuder Road 

Suite G_ PM8 .441 

Tehachapi, California 92561 

Wal ly and Mary Osl ie 

29312 Sierra Place 

Teh"chapi, California 93561 

Jacob Miller 

472 South Arcade Drive 

Ventura, Cal ifornia 93003 

Ale. Topar 

IS39 North China Lake Blvd. ~236 

Ridgecrest, Ca lifornia 93555 

Greg and TamJ)'n Bua 

749 Avenida De Las Flores 

Thousand Oaks, Cal ifornia 91360 

Joanne Trama 

85 Arcade Drive 

Ventura, california 93003 

Roger and Karen Heyrend 

379 Mac~av Avenue 

Ventura, Californi" 93004 

Sue Walsh 

22941 8"ndu"i Road 

Tehachapi, California 93561 

Philippe and Dolores Athuil 

416 North Bedford Drive #404 

Beverly Hills, Ca lifornia 90210 

Penetope J. Melko 

211148 rncuko Street 

Tehachapi, Cal ifornia 93561 

Brinton and Ingred Marsden 

8404 Joan Lane 

West Hills, California 9UM 

Sonny and Helen Prince 

18110 80ld Venture Drive 

Tehachapi, california 93561 

Nancv Boswell 

472 South Arcade Drive 

Ventura, California 93003 

Ben White 

8202 Solano Street 

Ventura, California 93004 

Chris Trama 

591 Evergreen Drive 

Ventura, Ca lifornia 93003 

Robert A. Miller 

205 fa" Driffill Blvd. #96 

O.nard, Cal ifornia 93030 

Page I 4 
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Troy Overman 

1140 Seaward Avenue 

Ventura, California 93001 

Edd ie Duran 

8573 Idyllwild Slree! 

Ventura, C.lifornia 93004 

Richard and Donna Roth Phipps 

6832 s.a8ebrush Drive 

Quarll Hill, California 93536 

Steve and Diana Palmer 

17700 Oak Creek Road 

Moj.ve, Calilornia 93501 

Steve and Donna Newton 

9701 Golden Drive 

Orangevale, California 95662 

Brandie and Jeremy Dunn 

P.O. Bo.1661 

Rosamond, Ca lilornia 93560 

Rober! E. Burns 

18818 Oak Creek Road 

MOjave Californi" 93501 

Arthur F. (orwin 

2747 Northview Avenue 

Arroyo Gr.nde, (alilorni. 93420 

Cha rles and Kathleen YoungSIrom 

41239 45th Stree! Wen 

Quart. Hill, California 93536 

Katherine Mahan 

11344 Ean Avenue R8 

littlerock, Calilornia 93543 

RiCk Potter 

5442 Backus Ro.d 

MOjave, Calilomia 93501 

Ru,,,,II, Nancy and Tanner KI.u"e n 

145 Oak Drive 

Oak View, Calilornia 93022 

Veronica, Sal and Crystal Jimene. 

8573 Idyllwild Street 

Ventura, Calil"rni. 93004 

Robert and Donna Moran 

16875 Blackburn Canyon Road 

Tehachapi, Calilornia 93561 

Doug and Karen Newlon 

2041 36th Street 

Sacramento, California 95817 

loui,e Newton 

3009 Cambridge Road 

Cameron Park, California 95682 

Alice and Ca",. Becker 

1120 West Avenue J,13 

laneaner, Calilornia 93534 

Patricia I. Burns 

5711 We" Avenue M. 169 

Quart. Hill, (alilomia 93536 

Sally J. Woelper 

2747 Northview Avenue 

Arroyo Grande, California 93420 

Tabitha and Tataria Youngstrom 

41239 451h Street West 

Quartz Hill, (alil"mia 93536 

Sherri Coon. 

P.O, 80. 1661 

Rosamond, California 93560 

linda Finch 

5442 Backu, Road 

MOjave, California 93501 

Page I 5 
1082 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1026

Cara Hemme 

7701 West Avenue A 

Rosamond, California 93560 

Tyler Hulsey 

7701 West A~enue A 

Rosamond, California 9lS60 

Ma rk Mikels 

217 Sawday Road 

Ramona, California 92065 

Kelly Price Miller 

26000 Columbia Wav 

Tehachapi, California 93561 

Sid Clark 

lOI67 Aliso Canyon Road 

Palmdale, California 93510 

Bimmy Keene 

817 lobo Road 

Weldon, California 93283 

Lis. and Gary Anglin 

1739 Isa be lla Court 

Ventura, California 93004 

June and Greg Gonzales 

6275 Loma Vista Road 

Ventura, California 93004 

E~a Bontempo 

35386 Ardo Court 

Fremont, California 94536 

Victo r and Mellissa Bontempo 

2842 Arlington Place 

Fremont. Califoroia 94555 

CharleS and Karen Spraggins 

811 West lemon Street 

Brea, California 92B21 

Colin and Tanya Wi lliams 

26660 Sutter Court 

Tehachapi, California 93561 

Terri Duarte 

40027 90th Street West 

leona Vallev, California 93551 

Sallie Chatterton 

30167 Aliso Canyon Road 

Palmdale, California 93510 

Eric Klein 

8120 Underwood Avenue 

California Citv, California 93505 

John Felber 

2931 South Kelso Valley Road 

Weldon, Ca lifo rnia 93283 

Martin and Donna Buchalter 

236 Purdue Avenue 

Ventura, California 93003 

Tom Bulmahn 

807 Brent A~enue 

South Pasadena, California 91030 

Jack and Fran Brock 

1&00 Pasadena Glen Road 

Pasadena, California 91106 

Nena and Bruce Britt 

3547& Gustavo Court 

Fremont, California 94536 

Page I 6 
1083 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1027

Richard and Yolanda Llama. 

8265 Lama Vista Road 

Ventura, Calilornla 93004 

Elizabeth Elder 

1225 South rice Road #4 

Ojai, Calilornia 93023 

Richard and Carmen Eppler 

498 South Arcade Drive 

Ventu ra, Calilornia 93003 

Vera Hollinshead 

20691 lari Mark Street 

Perris, California 92370 

(arol MUllilio 

10507 Haine. Canyon Avenue 

Tujunga, (alilornia 91042 

Loretta Miller 

295 South Ventu Park Road 

Newbury Park, (alilornia 91320 

Patrick and SUlanne O'Toole 

4949 Foothill Road 

Ventur., calilornia 93003 

Patricia and Randy Renner 

1201 Sandra (ircle 

Vista, ( alilornia 920B3 

Michael and Unda Solano 

173 Madi.on Street 

Oceanside, Calilornia 92057 

Adam and Andrew Fulthorpe 

3932 Flower Street 

Ventura, Calilornia 93003 

Shannon Hoslord 

2384 Warbler Avenue 

Ventura, Calilornia 93003 

Seth and Nichole Jackson 

12895 Crescent Ba y Court 

Yucaipa, Calilornia 92399 

Tracy Lamprecht 

1157 Kingston lane 

Ventura, (alilornia 93001 

Dennis and Georgia Perry 

3074 Bayshore Avenue 

Ventura, (alilornia 93001 

Michael and Juanita Garrido 

35442 Gustavo (ourt 

Fremont, Calilornia 94536 

Miriam and 8ill Linwood 

716 Main Street 

Woodland, (alilornia 95695 

John and Su.an Hayworth 

34640 Creekwood Court 

Yucaipa, Calilornia 92399 

Sean O'Toole 

245 Walnut Drive 

Ventura, (alilorni. 93003 

Terri Roman 

11 lincoln Drive 

Ventura, (alilornia 93001 

Edward Welsh Jr. 

1725 Avenida De Ap ri .. 

(amarillo, California 93010 

Scott Montgomery 

170 Via Pasito 

Ventura, (alilornia 93003 

Margaret Brooks 

1159 Badger Circle 

Ventura, (alilornia 93003 

Page I 7 
1084 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1028

Robin Hober 

922 Poli S~reet 

Ventura, California 93001 

Josh '::;roll 

S99 Camino Del Lago 

Newbury Park, CalilorniJ 91320 

Mark Mahoney 

16S7 O<:un Avenue 

Ventura, Calilornla 93001 

Mary Fr"ser 

3225 Central Avenue 

Ventur., C"lilorni. 93003 

Robert and Nicole McCalmont 

44937 Camino Alamosa 

Temecula, Calilorni. 92592 

Tim Kieler 

Ranchers for Responsible Conservation 

2020 Eye StrHI. Suite 201 

Bakers~eld, Califo.nl. 93301 

Irene Matijick 

P.O. Bo. 70S 

MOjave. C.lilorni. 93502 

Tory Oapello 

3357 Porter Lane 

Ventura. Calilo.nia 93003 

Chapel West 

2926Apaehe Avenue 

Ventura. California 93001 

Justin Eliot 

730 New Crest Drive 

Ventura, Calilornia 93003 

SarahWikox 

16S7 Ocean Avenue 

VenlurJ, CJlilorni" 93001 

David Mahoney 

360 South F Street 

O.nard, Calilornia 93030 

Jordan Duff 

3357 Porter Lane 

Venlur., C.liforni" 93003 

Julie Cr.wford 

5483 Hollings Street 

Ventura, Calilornia 93003 

Jeff and Laura Albaeek 

4252 Vi. Entrada 

Newbury P •• k, Calilo.ni. 91320 

Scott Thomas Lowe 

P.O. 80. 705 

Moj.ve. C.liforni. 93502 

Barba rella Roge.s 

2926 Apache Avenue 

Ven~ura. Ca lifornia 93001 

Page I B 
1085 

Statement of Various Citizens of Illinois 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1029

U,S, House of RepreSenl"itlves 

Commluee. on Ways and Meilns 

Subcommittee on Select Revenue Measures 

April 26, 2011- Hearing on Certain E.pirin,g Tn Provision. 

Comments 5ubmltled for Ihe Rfl:ord 

The u"ller"Kned 'e,'dem. and ~roperl'/ owners of the Slate 01 IIII"OT, re'llealuUv .ubmlt th~,e comment. in 

,espon!" to Ihe Aprll16,1012 liu,inS on Ce,I,I" Expl'inS TnP,O'/I,ions, Ou, comme,t' a re limned to lh ~ 

Prod".n<>r1 Ta' ereditlPTC) !o, wind en~rgy. 

ExetutlveSummarv:The PTe I. often tf~d ted lor mo" 01 the SrDWth In th ~ wind ,.'cto, but attributing 

ma,i<et o<!lvltv to the .ubsldV I, """,11 '1m pUnic and lall, to con,lde' other cr,,,'al beto" d.lvi"g 

de.elopment_ When evalu.t.d aBa'"'t ~¥ economic.nd erwi,onment criteri ... the (0)1 ol the ,ubsidy ha. 

p'o~n 1« essi ~ and the benefits to Ame,ican 13 ~p.yer. minimal. It th. PTC ""te 10 e.' pi'e, the fl:onomTu 

of the Indu"", would .hlh to State. with renewabl. mandate" Powe, ma. ." wi ll "ltimatelvconl.<>r1t th. 

real coS! of wind ener8Y, and prke jtaccordln,I¥. Tht o~r.Jll mpatt on tile Indust", wo~ld ~ la, Ie" .~e't 

than propanent. d~lm'. 

Suppa.·Unl Statements: 

HI, h COSl: SinCl!' .dopt~ln 1992, the eo,t of tht PTelo' wind enersy ha. ballooned !'om SS million/yu, in 

1998 to SI.5 blilion .nnu.llytotJay. The DD~n·. nd d ,ub'>ldyoll.2t/kWh In afte.-t .. f"eom~ .ep ...... n" a 

P't· ~ value 01 appro~im~!e"" 1.7C/kWh. In manv ,e""ns of the count", Ihe PlC now.Quall, oris lre.lef 

than, th e wMleule price of ~ower. (~n if tile PTe we.e to sun'et, u ' poyers Mf stil i llg3l~ to cove, 

~t'arIV $10 billion In 1.1< credit. lor wlnd proj~cts builtin the 1051 de<:ade . Thl. !<-In addition to the SlS billion 

debt fo, wind p.ojects eligible under Section 1603 (Including .n icip~,ed 2012 Ir~nUl _ 

Inefflcienl: Since ,he PTCi, uniform .o,o.,lhe w umry i,l. hi8111V (nelfiClt" t, .upportln!.poorlv .. tn! 

developmerot ln $Omf .,ea5 while in O!ller aru, ,upportlng orolects that would ~ave been buill regi\rdless of 

the or"'it, ThIs i, true In Tell.' and til<> Pariflc Northw." whe.e wind capa<:lty e.ceed, t.an,minlon capo<lty 

and wind I. cu,Ulled' .ln New En,13nd the PTe like" pov_ mo", SlJbsldy than Is nece",.ryowlng to au,e«i"" 

alem~nd t~s. Ulilit1~s In New £nil~nd outl ly slsn lenS·lt .m pow~, contractl to, wind at prieM 

"gnillcantly above ma,~et. 

Oth., lacto .. advancln. wind deve lopment! The Ind~<ltyln<i<ts <t', at rl<~ of a "ow-down without lhe PTC. 

Tn" view IKnores other c"~l llactor$ d,;"'inS developmentlntlvdini 51ate mand"te. a1d " .. tvral gas pri(es. 

1\ i. not po .. lb le Si"en .. vail.ble d.u to identify Ihe ~~tenllO which tn. PTe has con ribC/l~ 10sroWlh in ~e 

,eeto". In f~cl, demand fo. wInd ho. eroded .ecently d ..... , In part, te "ates meet Ins ' .... i. ,enew.b'" 

' ll<>o-. ,""I lOll c.,..,.,.,,,,,,,", r.,omoo, i>t19JI""""",- """._"-">s/.uOtomml,,..,-.. _rs,,""'''O>d-_>lc'''-

,"""' .. rNtt ........ "y· ........ _ -"'[2_9J.jaOM-.... 'I.,. 

, _1 ''''''"''It« "" , ... ..,." I'f~' lD .. .."., ""'t~' .. "d •• !otl»f/ ro r~. C'tdol> 'Of f'«"!<ito """'''''''''' ,.."., . .... _ 

So<Nus IlOOSI U "n .. 'I ........... ,J<l' .... I ... bI!c.I!iooUI"'I1! ..... 't.orUIOWo\~"'.IS19 

P.ge I I 
1086 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1030

m~~date~, low .... nJtur311~~ ~,ic.~ fuMh., , educed wind's "t'Klive~<!S$ is'' 'Iuella.e~ , T~e EIA now 

lo,~c~,t. nO! growth in th wind .I!<to, 10' tn" dec.de res.rdle .. "f whot happen> w;.h the PTe'. 

Job lo .. eo: De,pite bilhon. in pubr.cfurnlin~ th. wind ,.ctOf nperienced a ""110" 0110,000 direCI.nd 

ind ire<1 )obs in 2010 bringing Ihe t0l31 to 75,000' jobs. Most ol tlle ,,,,,,,.Inlnll job, "re tempo'.ry 

conllr.Jctjon po,11!o", .equl.;ng ""a~ 1 • ....,1, 01 de....,lopm",1I V" •• -.Ite.-~.ar to mainlaln Cuff.nt level,_ 

AllemPU 10 attribute loll (fe.l1on 10 Ihe PTe mUSI be tempe.ed wilh CONESp!lndinll lob IOSStS due 10 higher 

renew.ble ~ne'l'/ p.lee •. TheStal e ol Ve,mont lound that "ddina juS! SO MW. 01 .enewa,ble ene.gy 3t 

iBheNh3n·m.'~et elecl.lcj l~ p,lces "had the delete,lou. effects of ,,'shuffling consume. ,,,,,ndinl .nd 

Incru,inllthe cost ofproduclion 10. Vermont bU"neSle,·." 1.;111 ve •• , ru",1 electric ratepa~trsln Minne",," 

paid mo'e t~~ n S70 ml!l'OfIl~ ab""t·m.r'~t .ne'llV p' ic~~ dLle 10 III ~ hl8M con of WiMd ' 

E.wi onment 1 bonefiU: Wind r!IV Is .n unp~lc able, vafi~ble resou«e III~t <lInnot be , elied On to ~rve 

Io~d, tl' primary benefit I. in .edu<1ng U.S. elect.1c <-II,bon emi .. 10n •. Ac<ording the "'a.ig3nt'. a feur ~ear 

eJ<1eMion of lne PTC<",,1d •• old an in<lement.l 17qmiliion tom of C02 Thi, "bost ca~· enlm>!e I> not 

p.edlcated on.n a<tu'al WO.tlMBlnd region, tlLlt IIwe ""'ePt Na.l!anl'. e,tlmate tile cost 10 ta.paven 1" 1 

Ie .. I S2311l>n CO2' , ten·tim ... lhe Sl.92/1po ma,ket p.ke fo, offoeu in the Northeaslern state. p~r1kipol lng 

in RGGII ~t PTe i •• high·p.iced ""hlelelG< .eryqut.tionable ,-edu<liGfj' of e02 eml .. lon •. 

Contl ... lon: Tile k~y question i. whether Ihe ben.tftlS 01 the PTe 10. wind .,eworth Ihe eo,t. Thi. 20-yeor old 

,ub"dvl.upen,ive, Inefficient, lIa, lo iled 10 prod""e net-Jobl"",t •• e. that •• e ,u.t;oln~ble, and tire ce,t 

applied I)tr ton 0l C02 I, mo'e than 10': the ma'ket p.ice 0101' 000 under RGC,I. The U,5. power m •• kel ha, 

ndergone.igntflca~t cha nge since the PTewa, adopted, Includlnll deregulatlon_ tl 'I not pofslble 1000l.1le 

the e.tent towhleh the PTe contribute. to wind ,ector g.owlh'". Wllheut the PTe, P'oject KonDmlt. woold 

.hlft 10 . tates with RPS polk~ •. The ~alue 01 renewable Cf~dill mighl rise In re'pon,e bUI power ma.oet' will 

t"'3 el~ conl.ont tile .eal COil of wind ene(I'/, and price il ar:rord inglv. 

• w .... . "" _",ot •. N ... , ~ ~ ... 1" .... " '" "",n.", "'" <OUfI", _ ........... jO" I/O " .. _'''''''~''''Of '""" tco.u~"'," 'co ifO<ttos/lltl ,lot toot oI .leUri<!W. ,,,,, ... ,, .. ec_~ ........ ..1 ... , 

• 'IT c/ps,. I'M fc_ ""_" of v.."."..., T_ '" fQ'if!< (lDD9) Ii 

~1l~:f/_.""" """""'_""'I .... "~aw"'.!r;l DP'O«lUDf._ro;"!r; 20loriH r>dI 

• w.~ "' .. 'Io."~G~lIytl .. W .... I ..... l-Illl! 

"11~:llonI ... ·W1/"'_I.nid.,wDDDL .. I_l1CllO)>9I_'71)i041_,n .. 20."rml1""""I-'" ..... J"'I 

• ......... , .. _ ... <I<, .. t on /oGw K de, ........... oN ..... , """" . ................ wind ..... , Wi,,,,,", ,Ioe PTC""" orott_ .... , .n." .... "",.r _~, ........ " !MI3_16! 1100 '0" _ ."., ... ~ "","nLbIty h" .. , ..... SH/'''., 

Page I 2 
1087 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1031

Submitted by: 

Cit>dy I~ ••• 

14>8 f\'ort~ 1700 Ean~d 

Robert,. Il 6OO&l 

12171841·8UO 

Supplemental Skeel 

Cemml!,llt$ ubm~led on ~hall e lellowlns rru.dpnts and prOl)I!fiY ownerS altlle SI3tf ol llUno! •. 

Gre8 Ain<wo,,~ rom 8"" Wen<t;oBe<t 

Pi~r(lly,1l 9HZ6ul"tr~~mRd 9232 Gulhtro.am ~d 

F","~furt, Il F •• nklon, II 

(lvl. BliKh D .... Blreu. Delian~ 811eck 

1125 ~orth St.lelloute us 1325 NOrth S,:>t~ Rout ~ liS 206 E~st G.~"" 5"",1 

Rober1.,IL Roberts,lI Robert., II 

J~,,.,. B~Kh Juani~8!iK~ SylOjj. Bliech 

1279 ~orth SI.le l\o"le 115 1179 Norlh Stale Roule 115 2~ E." Gre"" Stru, 

~otl6lS> II Robe"" It Robett',1l 

K.thy Bo.m.nn D."ell camb.on Kim Com/;lr011 

601 Itl",flam 27]6 E. 1700 Nort~ Ro.d 21)6 E. 3700 North Road 

""h.mburl. 11 Rankin. 11 R'n'i~. 11 

JUDY I. ca,"~aell r ..... campbell Jot' Cu .. ck 

21!.'!16 N 800 E ... , Ra 28~16 N 800 Ea" J\(I J2I7. N. 1400 Ea'l Mwd 

Mormlle,lL ~,","I~.IL BI.d:"o"e .. IL 

Melinda (...xk o,ntlli' Dunmi", David Dunm"" 

31J74N 1400E."Ra.,d 11S2E.2WNHa.d 118.l E USO N ~o.~1 

Blac.k<"'"," .. IL (a'lod,ll61738 c...rlock,IL617)8 

Betty fg.nM .. "e 8.'~r. fJlswort~ Mick.e1 Ellswort~ 

209 B.rt~1 2379 E 24SOt~ Rd 2379, 24SOth ~d 

N.",,"'ille, '1 Ma,uilln, It M."eill .. , It 

Jim fellnu Jo.nn f ellner RIt~ fle .. ner 

N 7001 Rd N700EAd 102 h,t (~m"'~ry fl.<>.>d 

S,Dlev, 'l Slbley.IL ~obet!.,lt 

Edf,..,,,,~1 N~I";e f,e"'~1 Donovan G.in~' 

11044 Denny Ave ll00\4 Denny AVI!. HO £ .. 1 Green Str..,1 

MOIt ...... IL M .. ~"''' , IL Robettl, It 

p~&~ 11 
1088 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1032

Co,Olvn Gerwin GIo,la Go"l",m J," H'Ma ... v 

70S South lotuS! Stre.t P.O. SOl< J86 Wl1 W Mon .... RII. 

PO<1tia.,. tt Wa lnut tt MOMt. tt 

~fc:n HaMaw.y Jim Ha.low R~t" Harlew 

69nWMonu~d. 698 1401h /lv~nue W81401hllven"" 

Mo""",,tl Mon"",~m,11.. Monmouth, It 

Lauren He llmuth ROW'I H"lImuth Sh" ... y pllm~lh 

84S0 C .... otry La"" 8450 (ounlry Lane 84S0Counlry Lane 

Oe~.lb" Il De~ lb " Il OeK.lb" Il 

Jill Hopk n. Christi"" Hott C.lhv H~nl.r 

160;.0 e 1100 ~ R~d 075 ~ 2400 [0<1 All 311 ~Q"h toru'l SlIeol. 

lod •• It 60948 HOoP"'lon. !l 6094J Hollern, It 

Amber Ih,~e An" Ih" R Cindy Ihrke 

ISOI 8elkh .... Or. lUIN1800ERd 14.58 Norn 1 1700 to" Rd 

Ne .. ten"., U. Burkley, It Robem, ll 

~nlh.~e D •• id I>r~ e Geo.ge Ih,'. M D. 

14S8 Nom 11700 un Rd lSOI Sellrh ... 0 •• 1441 N 1800 E Rd 

Row"".ll New l en,,<. It 8uc~ley. It 

C.thy ~.h t Stt ve ~.nl. Gil •• .I"" I'le 

1142E. 2000~ R<>3d 1242E 2000N Road 924 Ge.man Rd 

Chau .. onh. Il Ch31'''0n/l. Il Paw P .... Il 

Jim ~I by Mary Kirby John ~nil.od, 

1174211;I"wood 0" 11742 H;I"""od 0<. 7 Lane Od"" 

P.Io~ Pa.k. It Palo. P •• " il Pa" "n, ll 

Na"", Kml. ",h e,. dd Kr~. e D,vid Kru,. 

7la"eOIl"" 434 Indill" I1Ud ~""" JOl E.~l e ~o.d. 

Pa""n. Ii Harmon. It H.,,,,,,n, It 

Gene ~ru.e Kend.a (tu ... Lau' n K.u •• 

49& tndlM fl~.d Road lO] E.kI, RO' d. 414 IMlan l1u~ R~d 

l1a.mon.IL l1a.mon. li 11 ,mo~.IL 

Page I 4 
1089 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1033

Som!" ~"". wovn~ Kubtk Edword lI<h'~n" ,, , 

4941nd,00 Ii •• d ~o d 240~l ~ lak ld~ T,. 203S51iil[IOQ ROl d 

" . ,m<>n, ll C'~'~.ll Mo~.oa.ll 

G. ,[ Lichte" ' I.]" Jo~olow""1 P. Uy low",y 

20]55 I-Inl1ep Ro.d 1141l Wa,.,",a" R""d 11413 w>term'" ~OM 

Mon na.ll W'le'm~n. Il Wate''l1an, Il 

Ma,suerl", lu,Ueld! S."""" lu<I/e ld' OaV1d J. Ma,Oooa ld 

III S. E.e'I,een Slr ... l lIZ S. [veri """ St' eel 8291 £~gewo ef Dr.¥</. 

00, ,,0, Il &o9SS Ofi''lI'~ [l60~SS Cilfl<><k, Il &1725 

S~.ron s. M.,Dona ld Joel Martin [ Miller 

8292 [di ewater Or r ... ISS] N 1800£ 1410 e.Id'<,ll e R""d 

C. Moc!<. IL 6171S BuoJc loy, Il 6091B .... Mcn. Il 61006 

su.~ Mil." John Pope joy P .... , 

14101l.lldy .. UeRnod 990~ W. 1 Vi!l' P'OIO""~ 

Mh'on.ll P~lo$ Pa'".ll 

Rich Porte, """"1 Jo PO>~'d Deln,e Pfeil. , 

Paolo". ll 248 Fa irway Vilt. Rd 195'4 North 1100 b <1 

MUfphy5bofO. Il "ud..," . IL 

w illi> .... P",II .. o..M;< P'OM"", Donn. P'ob.;co. 

19S44 North BOO EMI l.lBl Mow ... R ... d lJUJMowe"Rood 

liud.on, ll Kinp ,ll Klnl ', It 

Kelly ~obery Sle.e Robe"" ~imSchem 

1461 f' n~ i~ c,~~~ Drlye 1461 F~" in (, • • ~ D'r. ~ 21761 N 1300 £ 

Frankl,n G,o ••. IL610l1 n~ lI n Grove. IL 61031 Hudson, IL 

SI>~ ry Schildt ( ••• ~ khwort> Jot SoonW3'" 

39B County Au~a lSooN lilfi North W. tnut 11lfi No!!" W.ln,, ' 

M.h"",el, ll ~obeMi. Il Rob r1 , It 

Ion" ShlU. Rjll SItu •• Bony Smllh 

044! ~ North Rood 044 £ 900 No"" ~.,..d ~2 "' Ibe,~ §,. 

8,,<k ley, IL B~cltloy.l\ Golden,lL 

Page I § 
1090 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1034

o..vid Smllh O.bb ~ SmTth O .. n. Stroh 

SlO W .. I Panon ,20 We'l Pall"" llll4SecondSI. 

Pa",,,".ll Pa"'''''. 'l Mo~en , Il 

R~l>ecCl SIIO~ ~kt>.,d SlIoh Judv Strom,l. nd 

19n9 MQ~~n. 5, 11124 Se<orul 5,. 3676S tnos h lAnd 

"lonna. II ~o~.."a, 'l "'st,,, Pa,k,. Il 

K~n 51,,,,,,". nd Belly Tno",,,,on 11m Thom",on 

36765 Irl.n land 308 Md. SlI.et 308 /ldd. 51reel 

Cutl". Pari<, Il Robert. ,ll Rob n., It 

Jame. N. 7imb ... b,~ Timble Roben Turlcek 

14190id Mill Rd 1479 Old M~I Rd 280 e""'vne 

f""~hn Grove, 11 f' .... jn G,ove.1l BloomTngd. le,ll 

/lnne un. ROr\illd une J<>hnV;ne, 

8429 Edie .... '" 0,. U19 Edg ... al~' 0,. 315 NOfln LoeuOl SU"'" 

c...l<>< k .ll C~,loc~. Il Robe" •• 1l 

John Vine, Rito W."". , Te.ry Wa,,,,", 

liS No"n low.1 5".0' )640E, lGOON Rood 1640£ 1600N ROOd 

Roberts, 11 Rob~" •• IL Robem.ll 

IOdy Wa""" Rob." Wltson DonW,lmon, 

22660 S. ~a"",m /1 "",- 12660~ Ii.llem Ave 7l).I Slacey 0,. 

f",nkfOfl,11 Frankfort.. I~ Ne .. l~"', 11 

Amyllm. Robe" 2lma Jed A, Ge,d •• 

lOO1oyeo PI. )00 J<>y<t PI. 1448 (II nOOE 

Patk Rlclge, 11 POlk Ridge, II ",den. 1161859 

e..\t ~ G.bh.,d, Jonn Gel>hJ,dt 

SOl N, 181/1 >OlN nthSI 

Quin<,/, Il Quint'j, 11 

Page I g 
1091 

Statement of Various Citizens of Indiana 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1035

U.S. House of Representatives 

Committee on Ways ind Means 

SulKommittee on Select Revenue Measures 

April 26, 2012 - Hearing on Certain Expiring Ta~ P,ov;sion5 

Comments Submitted for tile Record 

Tile undersignl!d 'I!.ident. and prop~rfy owne .. of the State o f Indian. fe'Ol!tlfully ~ubm!t Ihe.e 

commenlS in .e.ponse '0 tile April 26, 2012 Hearing on C~.t.ln hplring n . P.ovisions. Ou. 

comments are limited to lhe PrOdurtk".,lax C.edit (PTq for wind energy. 

Executive Summ .. ry: file PTe i. oft "" credlt~d 10' mo.t of the g.owth in Ihe wind .e<lo' bUI 

a"'ibullng m.r~el acllvity 10 ,Ile sub.ldy I. ove rly "mpll'lic and f.II, to con."'e. other crucial 

faCIO •• dfiving development. Wh.,n evaluated . galn,t key economic and environment ttiteria. the 

cost of .lIe subsidy h". prove n ces,i"e and the benefits 10 American I;upayers minimal. If the PTC 

were 10 eopi'e, Ihe. eco"omic. ollhe Indu'try wou ld ,hilll05late, wllh ,.,newable ",anda te •. 

Power ma rkel. wiUullimalely c"nffOntlhe real COSI of wind energy, and price it accordinsly. The 

over811 impacl On Ihe induSlry would be lar les. severe tllan p.opone"u claimr. 

Supporting Stat ements: 

HI, h Cost: Since adopled In 1992, Ih., 000S! of .he PTC lor wind energy has ballooned from $S 

mlilion/y""r In 199810 5 1.5 bltlio" """ually today. T~" open·ended .ub,ldy o f 2.2e/kW~ In .fl r· ' 

ill<ome repre,en~a p,e-Ia. value of approximately 3.7C/kWh. In many reB ions of tile <ountf'llhe 

PTC nOW equal •. 0' is greater t~an, t~ e w~oleS,1 e pnce of power. Even if I~e PTC we,e to , u"set 

la.p.ver~ are 51111 obligated to ~o"er nearly $10 billfo" In lao credllS for wind projecr. buIll I" Ih~ 

last decade. Thi, i. in addition 10 Ihe $15 billion debt for wind project. eli@ibleunderSewon 1&03 

(Including anliclpaled 2012 iranl.). 

Ine fficIent: Since Ihe PTe Is unilorm across Ihe co"ntrv it i. hlghlylnellklenl. ,upporlinl poorly 

sited development In SOme are". who le in olrye •• , pas .upportlng ptole"s Ihit would haYe been 

built ,eRa,dl .... ofthe credi!. Th" 1.lrue In Tna. and tile Pacific N0f1hw"51 where wind capacify 

e"eedl t/aMmi •• ion capacflV and wind I. <urt"Md' . In New Engl,nd I~e PTC likely pay. more 

subsidy than I. neee .. a,.". owing to .. sgreni"e Stale mandale>. Utllilies in New {ngland rou tinely 

Sill" 10nS'''"m power contracts for wind al price, signiflcanlly above marl<el. 

Olhe, lactors .. dvancinl wind developme nt: The lndunrv in.I5I' il', al ris" 01 a .Iow·down withoul 

the PTL This view isnoru other crucia l faCiors d'ivlng developmenl inCluding stale mandateSlrnd 

natural ga. price •. II Is nOI po«ible Blv~n .".ilable data to Id .. nli!y the e~tent to whIch th e PTe h~$ 

~omrlbuled 10 growth in the sector'. In I~<I, demand for wond has eroded r«ently due. in part, 10 

, u,.,...., .... 1. lOll C""I-rr-"""" Tc .. _ h"Q II~~·I>o""'_/h"'''lI ... _mllt..,. ........ ~"O"·'" · 

o __ >i""·.,,OW"""it·_'Sy··""..., ... ""''''''''r-'l[/''-80'<9]·jolnM .... 1ns 

, w ..... >"4 _", .. , 20lQ W .... T«Mo/t:>ole< M~rlor« It~P<'fI, (1011) ViI hUP;!'HI<U'''.lO_/cO/.",." ,,,,, ..... /lo.,· 

4BlOo.pdl 

, J"'M <:em'"It .... M T ...... ", p"",m law Ana 60<t~""''''' ~.I<t""g 10 1"-' ~". k>r f"",'1'I<I1)' P""",,,;.,., r",,,, 

It .... _b'" $cI"",~. WlOS) J4 ~'II> '"'/_.j"' J""" p"Dl iaI"0 .... ~' .. munc "."o-"&ld.I~19 
1092 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1036

stltl" meeting their rl'n~wlbh _ m3ndatl" . lOwer natural ga~ prkes lu<1he r redu.ed ~nd's 

~1tr~ctivene", as a 'Iue! '~ver·. The [1.0, now ore ~1> II~t &rowlh In Ihe wind .eClor lor thl' dec~de 

regardless ol-what happe ... with the PTe". 

Job losou: Despite bill;"", In public flmdln& the wind sector experienced a net loss of 10.000 direct 

and indirect jobs In 2010 bringing th e total to 7~.000' jobS. Most of th e rema ining job. ar e 

tempor~rv construction Do.llion. reQuiring pea~ level. of development year-alter-ve ar to maintai n 

current le\lel •. AttempfO to attribute job ooreaUon to the HCmu,t be tempered with corresponding 

Job Io«e. due to hlsher re newable .nersv price •. The StAt" of Vermonliound thaI addinS ju" 50 

MW. of .enewable energy at higher-lhan·ma.ket electricity pnce, "had the deleTe.iou. effects of 

,e'hulflln@con,umer spendlngandlncre asingthecost of producllon for Vermont businesses·" last 

year. rur,,1 e)eclrlt ralepayers In Mlnne sola paid mOr" th,,,, $70 million In above_mArke' e nergy 

price. due to the hlBh w,l of wind", 

EnvIronmenta l be ne fiU: Wind ene'BY I. a n unp.edictabl e. variable re,ource ,hat <annal be re lied 

on 10 serve load. I,. primary bene fit I. in reduclnB U.S. eleclric carbon eml"lon'l:. Aceo,d lns Ihe 

Navl~anr'. a four yea. n 01 th ~ PTe could allo ld an Increme ntal 170 millio~ ton. Of e02_ ThiS 

"be>! ca.e" e>!,maH! I, not predicated on an actua l working Brid . eKion. but If we accePI aIlIKant '~ 

eSlima'e the COlt to ;oxp~ye'~ is at least $21!ton C02' , Ten·times Ihe $1.92/'on marK('1 price fo, 

oflset.ln Ih" North .. """r" ;tate< partlclp;ltTng In RGGI) Th .. PTC is a hlgh.prlced lIehlcle for lIe ry 

Qu .. nionable ,educllon. of C02 eml,,'on •. 

Conclusion: The xey Quenlon is whethe r the benefit. of the PTC lor wind a.e wonh the CDS!, Thi. 

20-yea, old subSidy i, e_!'en.ille, Inefllei"nt. ha l failed to produce net-jab Increases thaI a'e 

Sl ~inable. and the co.t applll'tl per ton of e02 1$ mOre than 10>< the markel prfe e 01 carbon under 

RGGI. The U.S, power ma.ket has undergone 'ignlr",ant change , ince the PTC wa, adopted, 

induding deregulation. II I. not lIQ.sible to i. olale the htent '0 wh ich the PTe contributes to wind 

5e.ctor grow'h '". Wl,hout the PTe. prOjM' economics would sh ift to~tale, Wilh RPS policl e" The 

lIalue 01 renewable ctedlts mIght rise In re. po.,." bUI power matk<!fO will ultimately conl,onlthe 

rea l co .. 01 w-,nd ene.gy, and o.iee it acco.dlnllly. 

• w"" •• "" ~i"II~' II _ Ncte< Nc "" "" nt . ydlt. e,," lC _ ,_ i"" <Oll"" , <;In", ' "V """" lei> I" ",~ et ... ,,.;,y 

_,or "'W' ""ntfllllJ,e l<ll",," •• ..,. I ... "m 01 """,,,n'I'V. ~" ' .... 'e. «0",,",]< <*"1",,,, ... 

~ VT ops. f~ C<""~ r",_" "I V" m"''' ,_ '" rD'ift' (20<l'J) 1> 

'I~ II""" :U_i<e.II"""""~KDIl/ p'." nj &I""''' lOW'' '''''''''. e''' _2o; '''' f ... ff .... f 

• w~" S" .. , 1<'<1. " .1 ""9 ~ ~~ to. _ (M •• 20 111 

'''' .. :lIonli''* .... C<l''' I.t't thl/!ia OOO 2. OS 1Q )ols ~~oOQ4;nJ~'UOOfi 10 1O. tm lmo<l o><>(I~ '_W>l 

• N. ",.,n' ro"' O .. no "",on"" "",." d.,.rmi"od _ ' " 50 ....... ~ .. ymn 50"'" .,r"" "" Itt "'i'hO.' e PIC ond only 

1_1«0<1 . t lft".",.."Ul _ m tllIOJ 4 ..... !leU_IS) 1M '0" "'" ofl •• , b _ ... 11. ,..,. h,ct>"' ' ''->n snl'on . 

.. 10." Con> "' ~'"'''' "" ''''n I ' 

Page I 2 
1093 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1037

Supplemental Sheet 

Su bmilUd!lv: J""~ Null, 8099 S· 200 E. (olumbl>l ((IV, IN 46125. 260·(;()9· 1174 

Dale s ubmlned: May to, 2012 

(o",ments submllled O~ behalf 01 the following rO!Sidents and property owne rs o f I"d;a~a, 

Connie Alm~ 

0826 E 350 S 

Monlpeljer, IN. 473S9 

PaltvAmbef 

3977 N Wesl C3rlin (ou" 

o.urubuKO, IN 

Morlan A~ri l 

8"x 16 P"HofOlV (om~I"" 

Muncle, IN 47306 

Pamela Armbu"et MD 

4232 W Hamillon ~d S 

fo" Wo"h, IN 46st4 

Stuart Armstrong 

41 Club.",w Orlve 

Hanford (itV. IN 47348 

Cindv Arp 

HilS Gten Lake Drille 

fOfl Wayne. IN 46814 

Darren B.rshl ... 

7SOEi S W.shinglon ~d 

Celumbja (;ty. IN 46725 

s...,. Beaty 

17%SM ;nSI 

Blutfton. IN 46114 

'Me l Beltl> 

6768 South 700 fl,t 

(olumbi. City. IN 4672S 

lIel>e"," l lIelt~ 

6768 South 700 r"51 

Columhi. Cltv, IN 46725 

Waff "A m~ 

OS26 E 350 S 

MOfllpe lier, IN. 47359 

1I0g", C. Ande .... n 

B9DNSOW 

Columb .. Citv, IN 

Tim A~rill 

12765 E lOll N 

Greentown, IN 46936 

Thom.~ ArmbuSl~r MO 

4132 W M.mi~on Rd5 

Fon Wo"~.IN 46814 

loeArr>cld 

69015. l00W. 

Cclumbi. CI~~ IN46nS 

la'lOnA'p 

12US GI~n lake Drive 

Fen W.yne.IN 468l!1 

Gayle B .... ~aw 

7506 S W~.ninKlon ~d 

Columbi. City. IN 46725 

lov<e S",,<he' 

4&00 f. 400 N. 

Cr~18vllle. IN 461)1 

Mlcha.1I Belth 

6768 SOyt!. 100 £a<t 

Colum~i. (lty. IN 46725 

lame, 8e'ler 

1402 Rldiewood!.;lM 

Bluffton. IN 46714 

(omminione, Don Amber 

3911 N We " rlln Court 

thurubu.<o, IN 4&713 

G .. <eA~rl l 

1176SElOON 

G, ~entown. IN 46936 

fri>lon Apnll 

12765 E 100 N 

Gree~tOw~. IN 46936 

I.<\ie Armstrong 

41 Clubview Drive 

Hartford CiW. IN 47148 

Sherry A,nold 

69015. WOW. 

Columbia CitV. IN 46715 

Breanne Bush.w 

7506 S Was~inlton Rd 

Columbl. CiIV. IN 467ZS 

l{ nButv 

17l/6SM"nSI 

Slum on. IN 467\4 

Paul Beecher 

4600~. 400 N. 

o-' ll"lIIe. IN 46731 

R",,"ei M Belth 

6768 South 100 East 

Columbia (itV, IN 46715 

O"le Bibe"'tein 

490ISSRI 

Bluffton, IN 46714 
1094 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1038

JeffY Bird 

64H(~45 

51 I.,.. IN . 46785 

M",~ al .. , 

9&09 l~'bmt Rd 

fort W'YfI<'. IN 46~ 

lI<>"n'" Brooks 

JCI98 E lloo S·9(I 

Mon'P<'iief. IN . 7159 

o<~". Brown 

437"1'0 aoos 

5o"1~ WMI"V. IN 46787 

lodd" BMW" 

l~ We.t Stote Rd . 14 

Ccl"mbi. City, IN 46725 

n Bryant 

7410 Sout~ 4SOW.'t 

South Whitle , IN 46187 

M . ...... " Bye" 

8000 W. 8005. 

Well POInt. IN 47992 

!.uecamp~" 

072S W. 9005. 

K"""lon~, IN 46759 

lo"n ,~ 

2116 .... tt",I<!". Df 

fO ri W.Vne, IN 4&804 

Georgi' (het 

9015 Sp.inr"lew Dr 

FOft W~y"", IN 46804 

Re""" 8<,d 

!>'HCR4S 

5,j"". IN, 46185 

B O .. W. yne 81i1ie 

160710 195W 

""gal •• IN 46703 

Chuck S'oo~. 

3098£1100HIO 

Mo"'p li " IN 413,9 

Lo,,., R. B,own 

1494 We" 51. Rd. " 

ColumDi. ('IV. IN 4672S 

SeMi. Bryon! 

74\0 Soulh 4SO We" 

South Whltl.,.,., IN 461!7 

~.t hryn A. Buek. , 

4600E7(l()5 

(ol"mbla C~y.IN 

lI.a' h"f ~I ,. 

3J90!HOW 

Columllil C1l l~ 4672 5 

l .maf. e~rry 

1609 caMo,"" •• ~ 

fort W.vne. IN 46J10~ 

O. nielle Cl.,en,e' 

l2S E 7th Str •• t 

".h~I I • . IN 46173 

li<a CII<_ 

901 S Sp'lnri .... 0, 

fo,' W.vne. IN 46804 

Ellen 111.,1 

9609l..,>1>",. Rd 

FOri W.v"~ N 46808 

S.nd,. I il l~ 

,G07N195W 

AniOI •• IN 46701 

CO"",,,,. I . B,o"," 2494 Wen St. Rd . 14 

CDlumbi. QlV.IN 46725 

Ron.I~~ . 81"0"'" 

4375 W 800 5 

South Whit toV.IN 46787 

JM<>n B""onl 

7410 5oull, 4SO ~'I 

""IJ! h Wr.ltJ. V, IN 46187 

~ennv Bv '~ 

8OOOW. e005. 

Wen Poinl,IN41991 

JonC.mp~ 1 

07ZS W. 900 $. 

~eY1l0ne, IN 4~7S9 

a.,b.,. CI.,' 2116 H .. rlh>1one 0 , 

fort W. yne. IN 46804 

i.m,. CI .... enle. 

1J06 It P .. ~ BIIId 

~u h'" le.I N 46113 

~'''tln Coc",.n 

0798 (1S0$ 

Blulfton. IN 46714 

Pa ge I ~ 
1095 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1039

Mik~(o<h"'n S",d Collin. (YndICail,n, 

0198 £ 3SO S 1126 wonama Dr 9364 S 500 £ 9l 

~tII.<m,IN ~61l4 Fo", Wayn~, IN 46819 ""ano'.,IN ~6181 

H. lne (ollin. G.'~ (ollin, lock Collin' 

5626 WOodn~f$1 91V'd 5626 WoO<l~u"l Siod 93645500[92 

far! W'¥f\<', IN 46807 fort W'yne, IN 46801 Roano •• , IN 46783 

JudY (oUi"' UleCollfn, Natalfe(olll n, 

7711 Penrose Dr 9364 S SOO E 92 9364 5 >00 E 92 

fart W'yne, IN 4G81S Ro.o<>'e , IN 46783 RoanOke, IN 46783 

~ell Collin, Oa.id !. (oope' l,)'r'I Cooper 

7726 Wal>.om. Or 8924 f. S. Cirej<, ame ~600E900S·91 

fart Wav .... , IN 46819 Cn"'u~u,Co, IN RCIa"oke, IN 4618], 

M~i.n ~ (l>Op~, Rebecca t<>ope, ~.I",'" Coope r 

8924 £ (lrcle On .... 4600 E 900 5-92 8914 E un:le Or;"" 

O'u rubu,",o, IN Ro.o<> ~< IN 46783 Cnurubo>co, IN 

G.", (otlTnlh.m G.",C"" (i.vI. (0" 

8428 CHAPH GlE'oI DRIVE )()019 f. COlonv A.e 3049 f.Co on~ 'we 

( l",mont,IN 46214 Columbia (~y,IN Columbll d'y, 1'01 

cana . Coyle Inl'id (<>vie c.,1 C,.ll 

SI80 N, .I,pon Ro.d 5180 N. Ai,pon Road HS5S400W 

CQ um~i. CIty, IN COluml>iil C,ty, IN Ubeny(~"te"IN 46166 

Kim ".i8 Otl\erine CrQSby 5u.an Crowl 

3n~S400W 144IW!IIlO~ D~9(I (~6~ 

liberty Cenl~', IN 46766 PO"~o, IN 46781 Ilamillon, IN 461 42 

Shelley ( rum Stonl.y (,urn K.tn. ,lne (unn,niham 

261S [900 S 261S [900 ~ IIox SlI 

Col""'bi. Ci'V, IN Columbia (~y,IN SWIV'ee, IN 46986 

o..oid Oed'l<~ I,.". Oedr'c~ 1.m ... Oedr,c~ 

ISlBl!lgl1l.nd (T 0826 f 3~O S OSl6flSOS 

II.I"I/Ion, IN 46714 Bluffton,lI' 46714 Bluffton, IN 46714 

Page I § 
1096 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1040

~I ub~h E Oenfl;' ~fhty a.,Mi. P.,rick o.~"iI 

9J24 Aboll. c.n'" /load 6142 Q ... iI RIdg' 1I1 61(2 Quo" Rid!, ~" 

~Of1 W'yr>f!. IN 46804 Fort W.yn •. I~ 46804 Fort vn~. I~ 46804 

(~foline a.,m,i .. ~og." O.vid Oinun Mike Oo~e'w 

6821 .... uth 275 wo,st 9(102 HamiIlO" R""d !.665 QuaU Ridge Ot 

Columbl. dly,lN 46725 ~od.r.l~ 46198 fort W.yn., I~ 46804 

Pal Oo""" rty CindY Doo"ltie Plul Doolittle 

6665 Q"a ll Ridge 0, S381 N 01<1102 5)81 N Old 102 

Fort Wayn., IN 46804 Columbl. tlty.I N 46725 tolumbi. qty, IN 46725 

Jon,'''''" Dunn "'.omiDu,," John En,ietto 

91l N 91h Str~ ' 913 N 9th Str.", 9416SSOOE-92 

Ulf. ene.l~ lafayt'n e, IN R",,"ok','~ 4618]. 

Bu~ Hue Conni. FOlmer Rob~nhrme. 

4001 WOld HWy 14 114115R 25 SoUI~ 120~ SR 25Soulh 

Souln Whitley, IN 46187 W." Polnt,lN 41992 West Po;"!' IN 4199, 

Vltto,i. FO'f,.»on owlvn fitile, RoSerfi,h .. 

2275 E 300 5 H60N lSOW H60N ]5OW 

Albion,'~ 46101 Columbia CIty,I ~ 46115 Columbl. dly.IN 

r<>rw flemIng Oan f lena, sr.I,on fl.no, 

2215 E 300 5 6408 South Oe<by 0,1 .. 6408 South !>erby 0.1 ..... 

Albion, I~ 46701 Columbi, City,l~ ColUmbi'Citv, IN 

A,lIe"" foley DouR Fo,lev Kl tlty Foley 

1(16 N~" 5t 59S8 N lOOW 106N(I.t5t 

(1t;>""'I ... vill~, IN4611J R~.,,.j ll ~, IN 4GIH Cn.~oUeiYllI~ IN 46117 

Qu"",,n Foley ~lch~1 FoIev V.ClorT. Foley 

P,O, Bo. 46 P.0.8ox46 89S8N1OOW 

5toc~ .. I.IN 47981 Stockwe ll. IN 4798l Ru.h ... ile, ~ 46113 

COM .. For"", •• Mark fo,..net Angl. F, ei bu'ger 

410S€lmSI 41058m5, 49105 Me.l<Il.n R<»d 

C<l ~mbl. City, IN 46125 Columbia C;ly, IN 46125 (olu'flb;' Cily, IN 

Page I 6 
1097 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1041

leon G~" r t~a"'G~>e ReM GUt 

9444S. 475W.- 9(I 1745 E. 10005.-92 37(S E. 10005.·92 

Montp!eller, IN 41159 Roan""' •• IN Roano' •• IN 

Ha,old G •• klll l e,1ey G •• , ;II Kim G.Jv,," 

0798 E 350 S Q79BE1'>OS 510 W",. 1.1 •• ,,,, 5,," 1 

8 Iull(On.IN, 46714 811111101'. IN. 467\4 Colurnbi. Cllv,lN 4672S 

Ml1: hnlG·v 5.om Grant {'I""~ne I. Gray", 

114H S. l00 W. 516011'18005 S680 W. . 114·92 

SJI"", l<o'~, IN 46982 South Whltl , IN 467!7 HU"Hn!.<>n. IN 467'>0 

~"iei L G •• v~. Oilniellc G",v,," !.nie G ...... 

S680W. S,K 11 4-92 S680 W. S.R, 114-92 1961 E. Widman Road 

HunlinK\on, IN 46750 ~untjnllon. IN 461stl Columbl. CitY,lN 46725 

11m G.ave. William Gr~" •• G'a",G,imm 

1961 E. Wldml" RaId 5680 W. S.R. 114~2 l5S 1.>1100 Sauth 

Columbia atv. IN 46725 l1 unl1"8",,\ IN 467S1l Columbia CitY. IN 46725 

GwenG,imm SP<!'1ce, G',mm 51 ... enGrlmm 

255 E •• I700Soulh 25S [0<1100 South 25S [aU 700 SaUIn 

Col"",bi. Ci.V. IN 46nS Columbia City. IN 4611 5 Columbia dly.IN 

Jay G,u""" Nirol., G,ubt!, Trud,G,ubt!r 

140711'1 lOO 140711'1300 1407 W 300 

Mo'occo , IN 41~J MOf9mh IN 47:161 Morocco, IN 41963 

Mesh," l1.mma" ~)I'" Homm." 10' '''' n .. " 

7414 Saut~ 3SOWesi 74\4 Sauth3~ 11'1." 17$1 W. ~SIlN. 

South Whitl . IN 46787 S<>orth WII~I"V, IN 4678 7 Ma,lcle. IN 

5y,"" ~'" ... o Paull1. "i081011 R~ <c . ~. f'nlton 

17SIW.950N, 169i E 800 ~ 16%EIOOS 

Morkle. IN Columbia C~y.IN 46ns Columbia City. IN 461l~ 

Jan,ce H3"ls PhH Ha,,'s lIrene. Hortman 

92S1 'i<>ulh Washlnglon Rd_ 9~1.'i<><J1n W .. h,ngton Rd. 2116P.I""oCoun 

Co lumbia Cil~ , IN Columbi. dty, IN Auhu'n, I~ 

Page I 7 
1098 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1042

No,,,, liartm. n liMa" lioe'., St~ve Herma" 

Z116 paja ... (ourt >~60W8005 9til.5 5 600 E 

Aubum,'N South Wh l"~ , IN 46187 ~.v<'""e. '"_ 615~ 

Vi"a" lie,mon ~t'ic _lie" ~it liive y 

%25S600! 14433 81ue He.on Ch.", 3616 E " .. bi.n 0.1 •• 

y"ore, In. 46759 oo'1Ok. , IN Colu"lbi. City, I" 467U 

Steve Hively AbbV iloflman BOb Hollma" 

3616 [A,.b'an Dri~e 10791" 450 l 10791 N 450 [ 

Columbia ClI'!', IN 46725 linden, IN 47955 Unden, IN 47955 

f'o"k HolI","" NarC\' Hoft",." Su •• nn. Hoffm." 

6100 South 215 W." 6100 Sou,h 215 We>! 2925 C~o<h~,.,l." .. 

Columbia Cil'!', IN ColumDi. C"v, '" fon Wayne, ," 46815 

Sh. wn Holla"d ~"k Ho"m," Mich .. , HolI"" n 

128 ! lIh 51<e<1 918 Ayt...'ord 0., 3718 Aboll. t..ke Dr 

~u'h il ., IN 46173 FOO't Wayrle, IN fort W,y"", ' " 

Rkh.,d liallman Duol N Mow •• 1.t!.ley f liow. V 

91B Avl~tOfd 0,. 9008 SL Rd . 25 South 9()08 St, M . 2S So utro 

fort Wavne, IN Wen Point, IN 4199l West Poin" IN 4799l 

I.,an K"guen;ud Ve,""'a HUluena,d loti ~ I.nucilli 

19~3 We.t State Rood 14 195J W~" Stote ~oad 4 94165 lSO Wn' 

~mbi. Cfly, IN 4672S COI~ l1il CiIV, 1"146725 So~tn Whitley, IN 46787 

Mi<ha~1 J 1."",,111 la~et l.,k..,n tlenr)l J.nda 

94165l~w .. 1 4442~. 700 5. 4J60 E 7005 

So,, 'h Whi"~y, IN 46181 (Olum br.~, 1"146125 CDlumbia City. IN 

lea n J.n<l. D.b Knlin Dia ~ K,mmel 

'160 [700 S 661J.lE50N l58l W.St.te Rood \4 

Col""'bia City, IN G",entow'l.lN 4693(; Columbia dry, IN 461.i~ 

Rabl!rt Kimmel Kl'I1neth ~In . J"" ~I e", 

lS82 W.5tat. Rood \4 SIJ.l €." 8,h 5",... un South bo." 

C<liu",bl. City, IN 46125 fowle., IN 47944 Koitomo, II' 

Page III 
1099 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1043

lynd. ltl ~ M.f'/ ~1I"l , .f'/ ~I ' 

lH1 Soul~ W'N'~ 1798 Vi. 0..1 Salno·n 1198 Vi. 0..1 SoI ",,"9J 

Kokomo, I~ Fort Wayn~.I~ 46818 Fort Wavn • • ~ 4GIIU 

ay.onhmm Sl,elb~ 1.1",,,, John l.nlmaid 

11510 S 7oo! 8';]0 S 700 E 6585 'i.o~tn State R""d S 

(o ~mbl. (IIY, IN 467JS Co~mbi. ( /Iv, IN 46725 \.out), Wi'>itloy.IN 46787 

Shannon Lan8m.id ~""~Ho Larkey Moeh.ei La ,k y 

6585 \.ou\l> 5t.t. o.d 5 S&07 [ 1000 5-91 5607 [1000 5-92 

Soulh Whitley, t,. 46787 ~o ""~, IN 46783 Ro."ok .IN 46783 

Mik.y .lOf~ey ~.tlI ,"" l.I,h ()I.i. lanS 

5&07 E 1000 5-92 364 [ 200 South 424 North 9>0 W~,t-92 

R"",,""'e, IN 46183 Col~mbi. C'tV.I N 46725 P;'lC.tcn, IN 465-6J 

D. nl,., lO"8 J ... .;co lani 1 •• "1 Lon, 

4519 We.t St. Rd. 14 SD4 1'1 7005 48351'18005 

South Whitley, IN 467B7 South Whitley, IN 467H7 SoU!" Whltloy, tN 46787 

lind' Lon, M.nhew lonll MollvtD<11l 

483S"WIIOOS 5114 w 700. 424 North 9S0 Wen·! 2 

SoUth Wh itlev. IN 46787 South Wnftley, IN 46781 Ple". ton, IN 46561 

law,eo<,. lluct. " Pamol. A lue,." Donn" Mar!no 

6385 S Hackney Dr 6J8~ 5 H .. kpoy Dr S620 (SR 105 

Cc ~mb . City, IN 46725 Columlli. Cily.l~ 4672S (olumb" CiIY. IN 46725 

J~m ... M.<Jno Hoi,,! M.ddo~ John MaddO> 

~&~O E, SR ~OS 1I788S 200 W 1l~&85 200 1'1 

C" ~mbi. City, lN Kev<lcM, IN 467S9 v<ton ~ IN 467S9 

Ju ne "'ad<lo. Marilyn M. ddo. M,ehael M.~do. 

216 [ ,gh Site", llS68S 2001'1 216 ,~ Street 

Mont,,"lIe'. IN 41359 ~erit"ne. IN 46159 Montpt'lie., IN '13S9 

MltcnMMdo. ~y e Martin Kvle Martin 

IInl!S 100 1'1 11434 S. 100 W. 1143451001'1 

~ey ton •• IN 46759 Sil.e, laKe. iN 46982 Siloe, t~k~.IN 4698l 

P. ~ 19 
1100 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1044

london M"n," 

114405100W, 

SIw", l.~~, IN 4t.9U 

Te'e .. Manln 

11414S. 100W. 

S;I"", l •• ~, IN 46982 

Te"l~ Mars 

H59 Co~nty Ro.d 56 

Aubum. IN 46706 

Gary MeDow 1I 

2355 [3005 

Albion, IN 467111 

8.,b.,. Me.dow, 

77BS [400 S 

fan vn ~, IN 

RaDon. Mo" •• , 

]S8~ 50ut~ Wailiload 

(ol"",bi. Ci.V, IN 

Do"l!M~' p, 

8J2~W_ llOOS. 

Well Po,ot,IN 47992 

Jov<e Min .. , 

J3IS E.700 S. 

C" ~mbi. CitV.IN 467ZS 

Rkh~,d Mi"IC~1I 

9111 W 1000 S - ~2 

N. M."c~e.t.', IN 46962 

oa,.M"",. £.089 Soo.n De'bV Dr;"" 

C<l lumbl" ~~, IN 46725 

Mei"n Monin 

lIUOSIOOW. 

511." laKe, IN 46982 

Ky~ M.y. 

1359(00"'y Road S6 

AubU'", IN 46706 

''''"r'1 W. MeCl.noon 

6U6 G'.y",ao, loot 

Fon W.yne.IN 4683S 

Ric. McDowell 

1129 S 500 E 

A,"~.,IN 46710 

10m Mn llow< 

178~ E 400 S 

fan Wayne, IN 

Ro~~, MeUS"' 

3589 S",,'" Wall Road 

Columbia (~y, IN 

Ronda Mil .. ", 

8J.9W U005, 

We,1 Poinl, IN 47992 

Z.el> Mine, 

B7B~. 700 S. 

C<llumbr.~, IN 4612S 

Caley Monillome", 

1161S5 )OOW - 90 

Montpeli " IN 413S9 

J"'~M"OIe 

608~ So<.oth o..,by 0,1"" 

Columbla eny.IN 46725 

"'M",M 

Il(34S100W 

Silve, l~k@, 'N 46982 

~"b<!n M0Y' 

1359 C""nl~ R""d 56 

Aubum, IN 467(16 

Quun'~ McCleMon 

~116 G, vmoo' lone 

Fan .vn~, IN 4683S 

Willi.'" MCM"","'l'" 

1609 (' ''famia a"" 

Fan W.yne, IN 46805 

ROlI@n Me ,h~, 

1311W 117510 

O."..lur,IN 

D.vidA Mev~, 

1,65W. 700S. 

Columbia dty.IN 46n~ 

Donald J, Mln~f 

70,0 pointe In"",nen W.Y. 

Suite 310 

F...-, Wayne, IN 

June Minlq,ell 

'J73IWIOOOS - n 

N M.",h .. te,. IN 46962 

D.wn Monl!lom~", 

Jl61S S looW-90 

Mon\p~lier , 110 471~9 

GIo'i. MOle 

17S W 200 III 

Colu!)'\b .. Cily, IN 

Page I 10 
1101 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1045

o..v ~ Morlan 

79]4 W ~S 

SW'Vl~~.I~ 469!16 

A,oron f . Mon'" 

6S70WBOOS90 

W.,,~", IN 46791 

So"d r> Kay Mor ... 

J065 £ 1000 S·91 

Ro."o.<~, IN 46183 

Tflcj~ Morton 

1191 W. SUle RO. d 14 

(olumbi. (fr/, I~ 

5t"" I.y I.. Mo.her 

132S 51 ~;dl'wood ~i .. 

Co ~mb;. air, I~ 

A,I," A, Nauts 

7()(S 5. 700 E. 

(ol"",bi. (i.V, IN 

'o l NHd""m 

4816 E. Tim"". Ridge Tr. 1I 

CQ ~mbi. CIIy, IN 

John N.~dl ... 

6342 We.,400 So",h 

SW.ylH I~ 

Roblm Nndle. 

2G90 5 5SO W 

Marion, IN 46'lO2 

Gary 10"",,,,. ,, 

83SO S. 2SO WeI! 

So",h Whitley, IN 46787 

O.vId, I,. MO'I'" 

46JB S j!OOW 

Sw. y ••• , IN 46986 

M.f'/ L Mo''''' 

H73 W 10SOS 

~eVSto , IN 

Wlllia", C. Mort[J. 

B13 W 10505 

~.v"on~, IN 

C,.IS Mo.bu ' g 

7219W(R600N 

CO"",,, ... lio, IN 

MeilMo .. 

PO e.o. HS SoU," W~ ev, IN 

~."rv J N"u" 

7()(S S. 700 £. 

Columbl. City, IN 4672S 

Siln Ne~h.", 

4816 f . Ti",l>o, Ridge Tr il 

Col"mllia City, IN 

Joshu. Neodl., 

161l W 32,,<l SI 

Marian, I~ 46953 

r:;,thy NOllfcue, 

3899 5 ' 00 W 

Columbl. Cky, IN 

II". N.wma" 

alSO S.150 We>t 

So\lth Wh,rley, IN 4&787 

M.f'j MO'l'n 

7934 W SIlO 5 

Sw.~,~~ N 4698& 

~.vmon<l E Mo,m 

3065 E 1000 VI2 

Roano •• , IN 4678J 

lohn Morto" 

H91 W. 5t~te Ro.d 14 

(olumb;' CIIy, IN 

Penny M",,,. , 

IUS E Rod~e ood Or .... 

Col~mDl. City, IN 46115 

Marl< B. Myn"'" 

74555St.leRoad S 

Sou," WMtJ. y, IN 

M.rvMN" uu 

70455, 70(1£. 

Columbia d ly,lN 461'~ 

C'"dy N • • dle, 

6342 West 400 Soum 

SWl y,ee, IN 

Morv J."~ N ... d let 

2090 5 550 W 

Ma,lon,IN 46902 

D.le l'ienrou. r 

3899 S 400 W 

Columbia dly,lN 467,i~ 

R.,,". Nicodemus 

8-2;SSout~ State R03d S 

South W~ilfo , IN 46787 

P'8~ I 11 
1102 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1046

T.Mer Ni<odemu, Torry i(:pd~m s i.mtl Null 

811S SCMh St ~ ROlId S 8HS South St.t~ R""~ S 1149 Wen 8OOSou!h 

Sou,h Whitlev. IN 46187 South Whltl~v, IN . 6787 C"'umbl. Clly. IN .672~ 

loan NuH Kat " I .... ,O'Coon.11 Tom O'C!>n",,1I 

11099 5 • 200 f 3629E UlooS·9l 1619E HlOOS.92 

Columbl. Cltv, IN 46725 ""'10'"' IN ROlIno •• , IN 

AIv .. a ~.i' ilt Cn,f\ly P. it~. Jim Palrill 

8 )B won 1200 Soulh 83<3 We>! 1200 Soulh 8121 W. 1200 S. 

We .. Po,nt, IN 47992 We,l PalM, lN 47991 We.1 Poin', IN 

10"" p.irlll ~'V P.I~" R. loh • ...". P.irjlt 

63360 •• a. 8n) W. 1200 5, 63360 •• C,. 

50"'~ Se!1o, IN 4&614 West PolM, lN Soulh Bend, IN 46614 

Kimbe,ly M Patte r"'n N .. h.n [p.ue",,,, iohn P."lfl. ~ 

4sao W!oOO N 4880 W!oOO N 3&05 Montel. ir 51 

Columbia a,y, IN 4672S Columb!. C~, IN 46715 W. Y I.veue, 'N 479Of. 

lo •• ph P."lln lul'e Pe""n ("rlstTne M P.trle 

10 NOMn 19th 51, •• 1 10 North 9t~ su • • , 205 B~t.,.w. l LaM 

Ylovetle,l N 47904 I.t.yette, IN 47904 0,,1.0, IN 46777 

I. m •• l ""Ul. lefh.y 1 Pet"'" M.'Y [II~n PeUI," 

O<I7l W <JQO lOS eill" " we" lart 0<113 W 900 

Un'OfIdile,lN 46791 Os.;.n, (1'1 46777 lJoion~. e, IN 4&791 

M. rya nn PI .. I ..... ' Thom •• Pl <l"~' r.t~e, Rolene W. .~. 

64S4 S D~b~ 0 , 6454 S De,by Dr 3SO Peo ,1 St, ... " 

Colymbia Cily, IN Columbr. CIty, IN Fon Wayne, IN 

lo" n 60hn PoPP lohn F, Popp ""' n" Ro." PoW<!" 

In08 At>o~e C~n"" M lSI) P •• ,I Su~e" 2431 CR 34 

fon Wavne, IN 46814 Fan w ayne,tN Aub~rn, IN 467tl6 

o..IIid Pow,"" lulle ProUt MOI''''''''i 

a31CR34 8!S N. O>e'ry SUee! 81$N ""rryStre,,' 

Aubu,o. IN 016106 ~.rtlor<l City, iN (7)4$ H.rtforo Cily, IN 4734$ 

Page ( 12 
1103 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1047

<ky "b.f'~f Oon Rtnba"e' j.m~. "b~f, ef 

1740 W BOOS 1140 W 800S 6110 S<>u.h Z7S We<l 

Soo,h W"ill~y. IN 46187 South Whl"~V. IN 467!7 C"'umbla City. IN 4672~ 

Tina Ront>a'ier ~ellO"1 Rey""Jd. Rya" Rey"old. 

6120 Soot" 275 We" 151OE800S 1510£8005 

Columbl. dl'l, 1"146725 Columl>la C/ly, IN Colurnbi. City,IN 

Palfit<a RM.du lay RlcMy AUd,ey RlIey 

'001'11 Old fiW¥ 14 13tH SOO E fon W.yn~ IN 46845 

So~,h Whl,'ey, 'I' 46787 Columbia Clly. IN 

Nln. Rodockoor Roben ~odo,k~ Ll"~ Roh. 

1780 E, Popl., Rd. 1780 E. Popla, Rd. 2454£8005 

Columbia Cil'l, IN '6725 Columbia C"V,IN 46nS Columbll City,lN 

Rj,~ Roh, t);."e Romln.. OMn. Rom,ne 

24s.4 [800 5 7001 Pine Glle 7020 A •• lon 0, 

Columbia a,y, IN FOtt Wayne, ,''' 46814 Fon Wayne, IN 46819 

U .. Ram"" Amy S;odlcw.~1 lime. S;od cws~1 

Z706W.y"ewD<l<l Dr 6922 5 W .. nlnglcn Road 6922 rWa,n·'ni,cn Road 

fO ri W.V"', IN 46809 Columbia C~y. I'" Columbia dly,lI' 

lohn !No.on Micllell. ,",cn 13neen Sell..,' 7U8W l50S 7138W2~ 119301015,0'11 

Home" IN 4U46 ~om~', iN 46146 Oen,y" iN 46733 

W~klon Sella.f ... EmilI Schlm~e 13<0" ScIl m~e 

1l~30 N 5SO 'II 11491 W 650 101 1:1491'116501' 

Oecalur. IN 4613] WayntlOWn, lN 47990 W.yn.,own , IN 479M 

"'n M S<:!1m,d, laccb A s.:hm,dl M.II"ew I ScIlmkll 

1260 Weu Sial. R~d 1260 Well >t ~ ROl d 1160 We" Slale Road 

ColW'nbi. (ilV,IN 46125 Columbl. C~y IN 4ij715 Columbl. dly,lN 46n~ 

S;o'ah M Sd""ld! G""'I" 4.S<htumpl lcl. §(h,umpl 

1260W ... State Road 178(1 f_ Linke, Road 1180 E Linke' R""d 

Collumbl. ~y, IN 4672, Columbia (j'y, IN 46725 Colu!)'\b .. Oty, IN 46725 

P'8~ I 13 
1104 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1048

K.thy s.:hwcill~rt Jody S. Seo,roV Todd Seo,~ov 

6105 W.,."T<Ie Dr 4310W8005 4llO W 800 S 

Fort W...,n ~. IN South W"'I'~y, IN 461!7 So"t~ W~"~. In 46787 

An,y SheO'er (nod 5hNr~, 1.'~5h "n.n 

546 E 100 S 546 E"" 700 So"r" 67lSS200W 

Columbl. (it"l, IN 46725 Columbia (/ly, IN Colu1I)bJ. Cily, IN 46]25 

Stacey She,,,,." S"i,ley Sh<>Ml1nH St~v. Sh""ma'.r 

672SS200W 7~66[ 900S 90 1S6ii£900S90 

Columbi. Cit., ... IN 46725 Geneva, IN 46140 Gene •• , IN 46740 

Ch,l, Simme,.. J, "nySiml"ers Bryce Sims 

9989W lOOOS 9989 W I000S 125 £0" 5t Rd 114 

Nort~ Man,Ioest.,.IN 46961 N<>rt" M.fI<ne".r, IN 46962 Columbl. CitY,lN 46125 

ChelS<'y st",. J.,,"5<m. M. IIOry 51"" 

1l5E""StMlI4 11SE."S'Rdll' 125 {oil 51 M 114 

Columbia Citv, IN 46725 Columbr. '"""IN 46725 Colu"'bi. CitY, IN 4672S 

Rit~~m' s ... "d. SiipeO: Sherry Sm,,11 

IH Ea.t 5t Rd 114 5U8N175W 1004 N. Walnut Slfnl 

Columbi. (i.y, IN 46nS Columbl. C~y, IN 4672S H •• liord CiIY. IN 41348 

Mike SmallwO<>d 5hown Sm. llwO<>d Terry L. Smith 

14ll 'ouo~wood C! 8595 N lOOW 116 North M.~ Stree. 

Gree"w~od, IN 46143 Rus~'; lIt, IN 46173 ColumbllCi!V, IN 

Debbie Spar •• D."id 5preen ~o.y Spr .... n 

4239 W S60S 9571 S 400 E·n 9Sn S 400 -!I~ 

Llfay",l.cIN 47909 ~oannk., IN 46183 R"""oke.IN 46781 

Sh~on Spreen t r.iSSrouf. Rond. Sroufe 

9577 5 400 E-92 Sll S L",e StrUI S 13 S Line Streel 

Roan.,.,..., IN 46783 S-o\Jth Wnltlev. IN Sout~ W~I''''", " SoBe Sroufe Orolyn SI~nBe, t-/lck Sionger 

S13Sline S. 10701 S. 400 [ ·92 101015.400 E·9l 

So oth WMlev, IN 46781 Ro.nok! . I~ Ro;tno •• • lr-t 
1105 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1049

8o"",~ 5,0,ev 

1111 W 1005 

Marnero, IN 47963 

a,,,,,d. Sioulle, 

68'19 W"" 1000 50",~ 

SoUI~ W~~le~. IN 46787 

lam .. Str c~e. 

ICI6n S lSO W 

Soulh WIrTlley, IN 

T""", •• Swll< 

500] CR 12 

W"e,loo.IN 

~br. Tom.".w •• ' 

liS W Spe""", SIr. e, 

Columbia a,~. IN 46725 

p. ul Tonne, 

]l71W~N 

MOfkl • • IN 46770 

00";. , lumoow 

5<~ W 10005 

CQ lumbi. C1iy, IN 46725 

Sh~,on Tu'noow 

Sl~ W 10005 

(oillmb", (TI~ IN'6n5 

Roboort I Vene, 

7110 S. 625 W 

w ... Point. IN 41991 

la.ry M W.,'.' 1.66 W SIro,. lin. 0, 

"'iurnbl. (it~, IN 46725 

Junn. 5,o,,,y 

lC16 N. &I" 51. 

(""U.nd. IN 

David W. S,auder 

6899 w." 1000 Sou,h 

Soulh W~~ey, IN 46187 

Ru,h StrOh 

8911 Redfield 1).1>'e 

Fort W.yne . IN 46819 

an .. n W Tho,n,o" 

70455. lOO£. 

(olumDi. ("v. IN 46nS 

paul Tom .. ".w,.1 

liS W Sl><'nCe'SlIee, 

Columbra C~.IN 46125 

~im lubb. 

5401 E Uncolnway 

(olumbl. City, IN 4671S 

~l't1' Tu'nbow 

512WloooS 

Columbia ",y, I~ 46725 

Nal.,Ir. TWeed l. 

73] W, Wayne 51. Apt. 1()1; 

fort Wayn e, IN 46802 

Fo" ... lw. h .. 

30] E Jolle."," 51 

(olumbl. C~y, IN 4671S 

~ebect. M Waite' 

3466 W Sho'eline 0. 

Columtll. (j,y, IN 4672S 

Tim SIO'. y 

306 N. 6U> 51 . 

~II.~d IN 

lII!,lt Stricke. 

10623 5 35.0 W 

Souu. W~i,loy, IN 

II,lIc. Sw1!t 

SooJ C~ 12 

Wat<'t\oo.IN 

VicIO~' M fltOf5O/l 

1565W · 100S 

(ol~m~l. City. IN 46115 

U. T",,"~r 

nnW900N Ma,"., IN 46770 

(.,, lu'~bow 

1611 f OVll'" 0.,. 0, 

Columbl. d'y.IN 46nS 

~e ... i" l"fMbow 

361l€CJvr:t",0.leD, 

'olumbtl Citv,IN 46125 

Koro~ S V~"e, 

7l10S. 625W. 

We1t Poinl, IN 41992 

Kim lIe, 

SB1E9005 

Columbl. d'y, IN 467.1S 

Ryon W. ,U.' 

581 t 9005 

Columb" Oly, iN 46pS 
1106 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1050

Sl~n v R W.nn. , 

8440 S"" ~ "<XI WU! 

LoI.~~t1 • • IN 41909 

JOV'Ce Webb 

SIU W"" St.,~ ~""d 114·92 

11"~lmg\on,IN 46750 

Hnd. Wldme, 

9S11USZJl N. 

W. I.,Ofav'''., IN 47906 

Jennife' Wilco.uo.> 

2695 W ... , ~"' Rood 

Columbla Cll'/, IN 46125 

k<'llv Wo lfe 

810 W p.,., 5', i.c. 

Columbia C;;Iv, IN 46725 

Nat.l .. W"",b 

2728 PriOC",OII Ave 

fo rt W'V"", IN 4680<1 

AMelioll., 

1624 5ho' .... ' . .. Or_ 

fort W' vnf, IN 

W.vn I~ l w . nllC' 

8440 SOUl" 400 We .. 

I..af'~!I~ . IN 47909 

B,iltanv R W"" 

9416 5 ~SO We" 

SoIJlh W~llley, IN 46787 

Paul Widme, 

95I1U5HIN. 

W, [.olav.It .. , IN 41906 

a'~d Welle 

1185W800 S 

ColumDi. C~v,IN 46nS 

~ac-; Wolf .. 

1I8SW8005 

Columbia CItv,IN 476a 

Deb l ... cc~ 1 

10IN. l,neSt. 

SoIJI~ Wn~ley, IN 46787 

lome,Webb 

51(4 Wen Sial. ~o d 114·91 

HunMgtIJn. IN 45750 

M.1t W~I~ 

1142 8 0311\'<'<1~ PI 

fort Wayne, lN 4681$ 

Dou,,,. WIICCI",on 

2695 West Koi •• , Road 

Columbo. CitV,IN 46 725 

C)oe",IWoll. 

820W P3,kS,. bt. 

Columbi, City,lN 46115 

Jo~nWood, 

1118 P,in<.elon Ave 

Fort Wavne, lN 4680B 

Oon ...... Iodi 

101 N, l.ine St. 

5oul~ W~ IH!" IN 46787 

Poge I 16 
1107 

Statement of Various Citizens of Massachusetts 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1051

U.S. House of Representatives 

Committee on Ways lind Means 

Subcommittee on Select Revenue Measures 

April 26, 20 12 - Hearing on Certa in Expiring Tax Provisions 

Comments Submitted for th e Reco rd 

The unde"iKn~d ",.idents and properry owne .. of Ihe State of Ma .. a~hu,ett. 'espectfully .ubmlt 

these commen" In response to the April 26. 2012 Hea'ing on Cerrain Explt'lng h. Pro~ision,. Ou, 

comments a re limited to nit P'odu"lon Ta~ C'~it (PrC) fo' wind ene'gy_ 

f.~tull e Summiiry: The PTC is olten ~fe lted lor mos, of Ihe g,owlh in the Wind .ecto' but 

anribl.ltinK ma,ket activny to the subsidy i. overly slmpli,Hc and fails to consider olhercrucial 

bcto,s driving development. When evaluued against ke y economic and environment cfiteria. Ihe 

cost of th~ .ubsidy h3, proven e.cesslve .nd the Mnefots 10 American ta>paye" minimal. lithe PTe 

we'eto up]'''. Ih .. ,,,onomics of Ihe Industry would ,hlft 10 Stale, wilh renewa ble ",andate,. 

Power markets will ultimately conlfonlt~ e ,eal cost 01 wind ~e'g . and price it acco<dlng ly. The 

ov .. rall impact on the InduSl,y would be lar le.s $eve re than proponenlS cI" im'_ 

Supporllng SI"\ements: 

HI,h eo, l: Since adopted in 1.992. Ihe cost 01 the PTe lor wind energy has ballooned from $5 

mlilionjyur In 199810 $1.S bllilon annually loday. The op~n·ended .ub'idy of 2.2C/kWh In after·tu 

income repre se nts a p,e-Ia~ ""Iueol app'o~imalely 3.7(/kWh. In many regions of Ihe count ...... Ihe 

PTe now eQuals. o. ~ IIrea ~r Ihan. Ihe wholesale price of powe •. Ev.n if Ihe PTe we." to un ... t. 

lup"yen a,e still obligated 10 cover nea,ly $10 b.llion In ta> credit. for wind projeeu; buill in Ihe 

la'i decade. This I. in add ilion 10 Ihe $IS billion debl for wind proj eclS elisibl e unde, -Section 1603 

~Ineludlns anticipated 2012 g",nts). 

I .... lfici"nl: Since Ihe PTC Is unifo'm aerO$< Ihe counlry ills hl~hlV 'neffiel"nl •• upportlng POodV 

.l!~d development in 50me areas white,n olher a, ... , ,upportlng proj.,cl5that would have been 

buill regard!e .. Ollhe credil. Thl. i, true in Texa, and the Padfic NOrlhwe'IWhere wind capadly 

e.ceed. Iran,misslon capacily and WInd Is curt"iled'_ In New tngl""d Ihe PTe Ilkeiv pays mo'e 

.ub,idy than is nee .... ", ...... owin8 to aggreSSive State m~ndaIU. Utilities in New England routinely 

'ICn long-Ie,m pawl" contracts 10' wind at price, .i,nlflcanlly above markel. 

Olher faclon advandnl wind developme nl: The industry insl'" il', at risk of a slow-down wilhout 

th" PTC- This view Ignore. olher crucial lactor. driving development including state ma ndates and 

naw ... 1 gao prices. It is not po ... bl" given avail~bl" data 10 idenlify the .,xtent to which the PTe has 

con tributed to B,owlh in the • .,CIO". In faC!. demand 10' wind hU eroded recently due. I" part, to 

• u .............. r. lOU Co ......... ' ..... 1 '''''o~v ~,,~:II><i<"" •. _ .• oW''''. ri"Ullrb<om'''n'ee-r"_'lI<><"'''-.~-

o""~""·.u.<o,,·"'''''.., .......... ilY'"."d·." .... ''''''''.·"'·W2''80!.:91-f.,;M.' ... fl .. 

' w" ••• d DOl' ....... lOIO w"'</ r",~",,_ Ma,'", R~-,. (>011)'" ""o;fI •• "' lIrtl""j~.I"""",,,,,<U/,,,,,,, 

~lIl o.." .1f 

• """'c"...."'I".~""To .. ,""'. p"''''f'r '0"""<1 _'g"", .. ~R.loMg To fa,O.";,,, k:r,ll#<l'kily"""*,,''''''.-o,,, 

~ ... _b" SOon,.,. (>00>114 h .. p ... fwww 1<~.Q ...... twbt ... "._hrml1fun< . ..... d_" ... !d. l ~1~ 
1108 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1052

"ates ",e.,(lng t~ei' ,enewable "'~nda(es. lbwe r natural gal price. IU"~ er reduced wind's 

attract'ven~S5 a •• 'Iuel •• ve", The EIA now lore casts flat growth In the w'nd seelor for th'. dcc~d .. 

regardless 01 what happ .. ns With the PTe". 

job 10UU: Desplle billions In public Iund lng the wind sector e~perience<J a net 10" 01 10,000 d irect 

and ;ndire~ t jobs I" 2010 bringing the toUI to 75,000' JobS. Most of the. remaIning Jobl are. 

t .. ",porary construction positions reQuiring peak I .. vels of development year-~fler vear to maintain 

cunenl level •. Attemp" to attrlbule Job creaUon to the PTe must be tempered with cone spondin g 

Job Io«e' due to higher renewable energy p,lc..s. The St.le of VermO"1 found Ihal adding JU<I 50 

MW. of r .. newable energy at hI8h .. r-!han-market electricity price. "had the deleterious effecli 01 

reshuffling consumer 3pendlng and increa.ing the cosl 01 producllon 10' Vermont bu.lne ..... ·,· Last 

year, rur81 ele"rlc . au·pa vers In Minnesota paid mo,.'han $70 million In abov .. _ma rkel ene rgy 

price. due 10 the high co.l of w.~d ', 

Environmen tal be nefits: Wind energv i. an unp.edictable, "aria~e .e.oU" .. tnal cannot be relied 

on to serve load_ It.< primary benefit i. In reducing U.s. electrit carbon ~ml"lon~. Acco.dln@ the 

NavIgan1"' .• fouc vur ,,",en.ion of the PTC could .. "old an In('~menlal 170 milli<>n 10M< 01 C02.. Thl, 

"b".t ca ... " ulimate I. not predicated on an acwal working grid r"llion. bUIll we accept Navig~nt's 

estimate the cost to ta.p.vers is at least SH/lon CO2", ten-time. the $1,92/ton m~'ket price lor 

oIls .. " In Ine "'o'th ... ""rn "ate< participating In RGGII Tne PTe Is a high-priced "ehlcl .. 10. "e.y 

lIuestionablp. ,edUction. 01 C02 emi •• lo n •. 

Conclusio n: The ~"v que.tion i. whethecthe benelits 01 the PTC lor wind ilre worth the co.t, Th" 

20-year old >ubsidyls expensl""" Inemdent, has failed to ",oduce net·job Increases th at are 

'lJ<taln&ble, and Ihe co<l applied per tOn of C02 f. mo.e Ihan 10. the mar~et prfce of ca.bon under 

AGGT. Tne U,S. power ma.kel hil. unde,gone .igniflcJnl change .ince the PTe w~. adopted, 

Includlnl de.ellulatlon. 111. not possible 10 i.olate the Utent to which the PTC contribute. to wind 

~ectot growth'", Wlthou t lhe PTC. project economic< would shllt 10 states with APS pollcle,. The 

valu. of renewabl e c,edit> might d se in resP';'"S" but power markets witl ultimatelv conf,ont the 

real CQ5t of wind energv, and price it accordingly. 

' w" ... on. _e,. - NO'''' NO Inde .. "d ..... ddlt> ~"'" '" _If"" /<rD """nt>.. 5lrrtUn. ",," /<r~ '" "'" """ ,,1<1" >"ct", my.' ,Qn,,;;""<e to 'n'''''''n, <Io<t wit '" *~,. ,,~., ,~" "u,",. ",o""",'~ <Je.It""ylu._ 

'\IT PPS. """£<""oml( ""po<t>OJ VO'"""" f""i~ rD' 1/.12~ll~ 

~"Q:II~ub1'<_ .•• ''''''''' ,.'''/p<.on~'"l>'PP$''lOWM.''lOP"",,'''UOf,,<$;lO<"''lO T.~If."" I 

' W.>ll S" ... 10."0,1 GmJeodb,.'o" W,"M(MO. 20121 

htIP;/I""'''" •. woj .'''''''}. '''<le~"HlOOI4lllO~11(ll.llll~91_'''3I;4'4 4006J9 '410 ~'ml?m"".gO<1f;''''' " ... ,_ .... , 

, N.~I.nl (""''''''n&. ..... Imp"" ~ t"'- _""" ~ emIIr M .~ US. WI.d MGrl<,.. (lOI 'J 38 

• N,,.,..,n, P'<W1~ .... <H> de,'" ~n """" I, "",~,,,,I .. d offwu. S,\OItv '"~m''' "'''''' wind 1><);" .",11""" t <le ,,-r(; ."" only 

i00i<0;1 .'l,.c"._n~' 110_", .... , • ",,0" (2013" 61. ''''' <CHI .... off .. , .. ~.n"'''''' hllho. tit,. SUfi ..... 
1109 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1053

Submlned by: 

J~net S,nti," 

18 Ashflela Stre~t 

Shlbu,no Fa ll •. MA 

413-625·1886 

Supplemenl* ' Sheet 

Comment •• ubmln e d em behalf 01 the foll"wing ,e.ldent> ~nd property owne •• of the StaHl 01 

M~"~Q1Ur.elt •. 

Me,,",,ae. 8. A'~ 

269 CountrY Club Way 

~lnIiSlo". MA 02364 

",", Ande'",n 

111111acr..m1th Shop Ad 

Ea .. falmoulh, MA OZS36 

Amv C. S.''l 

lO~ur.ISI. 

Shelb,,,,,e Fall" MI.OIHO 

M.lI .... 8ee,Iey 

14 Say Sueet 

Quincy. "'A02111 

OA.'d Bol, e 

13 Carriage O,rv. 

Bromflold, "'''' 0 1010 

Robert th",doCk 

118<l "I.wl"'l Rood 

A';hfi"d. MA 01330 

W~,ne OougM 

29 So_POd ~ne 

Ouxb",''', MA 02332 

h,'l C. CO'K'''ve 

49 el.r~""'''' Pond (I,cle 

W.,~a ,MA 

paUle,. J CUII"nv 

84 Nort~ 51 

Shelburne FolIl, M'" 01170 

Noel "'bQon 

112 Forti HIli Road 

Rowe. MA 

FaV. A.,de,,,,n 

\27 Bay.lde Road 

Quln<v. MA02171 

C'al, W. e"'ll,. 

10 ""u,e! 51. 

Shelbu'ne F;ill •• MI. O.IHO 

CI."" Blat~hfo,d 

lB6 Panen Road 

Shelburne. MA 01170 

Marl.re, Oy,~~ 

62 Ct.ri..,. Jo<ep~ Ro~d 

Plymouth. MA. 023&O 

AM Chriot~n 

29 Sean a,de 

Br w.tc', MA02SH 

CII.,luCohn 

U6Coop.,\..ane 

~h lbu'n . MA 01llO 

5u •• n Cullnoh",f$ky 

455 eUKHIll M 

AshfteJd. MA 01330 

OTonna O~pk'n' 

J36'P'Uen Ro.d 

5helbu,n~. MA 01370 

li~d. Ammon, 

194 Wail'S Rood 

Srlmfleld. MA 

lvnne 8&11.,,* 

911 Serna,dOlon Rd. 

G,eenll~ld, MA OBOI 

louise ea'tuu 

5 Fi.h 'm'n. Rd . 

Fa'rhaven. MA onl~ 

Ed Blatohfo,d 

2B6 PIne" Road 

Sh~lbu,n • . MA 01110 

R."tnond 6u,~ .. 

62 Oo,i .. o Jo,"P" Road 

Plvmou,". MA. 023&O 

Gory Ch,ioten 

29 Sean CIrcle 

B'ew<!cr, MAOl631 

~,kJ.Cool 

Falmouth 

Fa in.outh. MA 

Wolte, Cudnohuhkv 

455 B"I HTII Rd 

/UMIeld. MA 01330 

Helen Oelueo 

8S Bav<Tde Rd. 

Quincy, M'" 
1110 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1054

Jov<t O<>n"""~r 

1116 y>(d~ rd. 

ortllQll ncy. M~01l71 

Todd Drum"",y 

360 Bla,i«mkh Shop ~o.d 

East f~'mo"tl1, MA 01516 

e .. ~.,a Ou,~jn 

48 Moore Lone 

Nortlobo,o, MA 01532 

wu,ily _ fpm';" 

PO eo~ 554 

Montc, .MA 

e"'8 G.-mbH 

1&0 M.d".t Rood 

N.n'uc~e" MA 02SS4 

ela ~. Golf 

30T Lan ~ 

C~ilm.o1( . MA 02.53~ 

,O"~ lioBleny 

126 erandt kland RMd 

MI"opo,..,,,. MA 

RaVmond 5. Hartman M.D. 

Sl Gfev'ock~o d 

N .... lon. lolA 

Lami. Holland 

34 A,hlit kl SI. 

sh~ll>urne fall .. MA 01)10 

ludy , .. ,olf 

Ea" ~I 

MI. Wa.hlnl ton. MA 01Z~ 

OonOomb"d 

42 RoG.,.llIk Way 

D"Mi' .1M. 

Do"" •• n Drummey 

360 8laok""llh SlIOp Road 

Eat' fllmout", MA 02Sl6 

B~dg .. r .. l. 

294 Smi," Nod Rd 

0. "",,,,,110. M~ 0214$ 

~, na F • .,.n 

8S aay.ld. Rd. 

Qurncy, MA 

1010"/ GamINo. 

160 Mod. ko, Road 

Nantucket. MA025S4 

lOU, .. G",bo-oo.kl 

164 Crabtroe lid. 

Qulncv, MA02Hl 

Waite' J Hannon III 

202Panre~ •• _ 

Qu incy. MA 

Roland H •• ..,I~rt 

73 au";n,,on Rd 

It.am. MA01346 

/'Ion"" Holland 

19 Me,loam, Stree' 

>1I.lbw'n ~ F.II" ~ 

~"ber1 J. ,o. 

3&0 P.t! ~ ~o.d 

Shelburn., MA 01170 

loo>e O<>rnb.ck 

4~ ~oIIc.lpn W~ 

OeMI<. MA 

Te,n DnImmev 

360 O",cl".",,;, n S~op Road 

[, n ra!moulh. MA OISJ6 

htl>ryn Eld e, 

161 a~'I".'m;1115I1op Rood 

falmouth, MA 

Sue f.a,~. f •• n .... i" 

24 !M.nd Viii.!. 

SlIelbu,,,,,f. II I.MAOI)70 

CI.,I". Golf 

301u l."" 

Cn m.'~. MA . 02SH 

Ui tl~nn G'. n 

4,TimW.vM 

Wellfleel •• MA 

Annlo H.r\ Cool 

r.lmoulh 

rall"oulh.MA 

M.u",en Hk:l".eV 

66 Woodb ....... ~! 

S H.mlll<>n. MA 01981 

V" sini. lrv,n • . 

lOll Ounhamtown·Bomlield 

, 

8.lmll.l<I. ~ 

!ham .. Ke/'I"" 

l4 Se"" .. nce St. 

snelbUrne F.II" M.Onro 
1111 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1055

Krn ~e" W~vn,. K1"I. Ph.D. O,n ~n>s " 

P.O. Bo> 183 PO 830 30 O<Iu KI . Way 

"' ~~e.Jd. M ... OIHO lanM""r<I. M ... N.nt"ek~t. M ... 025,4 

~.Ih l ~nl.., Dole M •• lallonle Ellen undoue, 

30 l)ou«lo, Way 1023 Du"~.m,own·BM",fje d 87 Worn .. Hift ~d . 

"'antucket. ~A.OZS$' ~. CI>"'lemon~ ~ 

~,imli e!d. MA 

.... 'an laPointe Wendy LaP<>lOte 0.,,1,,1 f . lall.Ole 

9WGIIIRd 9WG d la. P. 'I"" Rd 

GiW. NlA 01154 GIII, MAOH'>4 Shelbu'ne. MAOU0 7 

K'lh<yn G. uRole ~.,be.rt A. libby l Ui .. lindne' 

28-01 P.ue~ qd 135 ElIot 8uckland Road 1 M ..... oil Bridie Qad 

Shelburne. MA 01301 Budl.nd , MA l'Ianluo.et, M"-

Bob UpI~k Junne UpI3k lau,i. Macl...,d 

171"". ,11,"', WIV 17 lonltlla"'1 w ay 136 Old Albany ~.,.d 0,,,,.,51 ••. MA B ... ,.,ne,. MA G'N'nll"d, ",""OnOI 

C"o'~. Ma,,,r B,uce Mondel Modi Me(! ~.n 

81 Worne' >l,1I ~a 10MfalandA .... nu. 313 Olock Orook Read 

Charlemont, MA Oill'} Nanlue"'t. MA OZSS' S-avoy.". ... 

N~I MeClo"ahan Pete, McCI.nahan Pre.ton M<CI.nah." 

313 BI.>,k B",,,~ Road 323 eladr 6rO(l~ Rood 323 Black Brool< Rood 

S-aOOV.MA s....,V, MA S .. oY. NlA 

JOV"" 9_ MeC,,""",1 Conn,~~, ".oC'N'ry Mo<w~1I M~C'~~, y 

BreW5ler. M", 316 Solrth Moad 316"Soulh o.d 

Chilm.,k, MA Ctlilma (~, MIl 

lomes Melnl' P.I,,!II. Mitchell I.ne MV~" 

4 i#a~d Vill.ge 1024 O"nh.mlown Road 100 Puddin, Hollow Rrud 

Sn~l b" e falls, MA OHIO BrTmfleld. MA HI,.,lev. MA 

<y~I n Ni"..., itho ~ Ni>wn P"vll;" Ormond 

20 .nl ~~ 20 enl Rd 15 To ..... ' Rd 

erew". '. ".A02631 Brew' te' , MA 0263l ,shelnu,"". MA Ol17tl 

Page! 5 
1112 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1056

Aochjrd Orm,,"d j"lf,t P~i~ AfU:l'n P.r~e, ISl.,,,,., M, ) So~t" Mople Sueet 19 Si!ule" , 0, 

Sheltmm •. M ... 01370 Sh.JI>~r~e 1311<.. M" 01)70 LakNllle. M. 02141 

D~n P,',ec He .. " Parker l.II.IIlA' P.rk ... 

19 Settl~r'. Or 300 Nonh ~o.d 300 Nort~ ~""d 

Lal;e.-II •• Ma On.7 Cl!ilmack. M/\ OlSlS o>~m.,k. MA 

llarll ... P~"Y Mi'. Parry Da",d Patn<~ 

)07 p.nen ~d. )07 P.IW1 Rd. 360P",enRd 

Shelbume, Ma. Oll70 S""lburne, Ma.OH )D Sh.lb~'ne , .1101, MAOlnO 

ea",1 Ploten(k loluren Pre.lOn·Well, Do"". M, lItv 

45 Saini ct.;. Road 30 Sailey Rd BS Nortn St. 

IIrlmr..ld, M ... QiOIO 5helbume Fall" MADi370 Sh.lb",,,,, II~. MA 

M'.Jami. Reinhardt MitcheH ~elln "",.",,,. Relln 

53 Ne .. Slate RQ.~ 36 White O.~ ~II 36Wni'eO •• rraii 

Savoy, M ... 01lS6 Br . .. "." "' ... Brewst"", M ... 

Pr."on Rlbnid< MO' ,",el Ronan "'",h. 1I Ro.eotr..1 

1&0 Old (""nlV Rd S2 f .... St 391 loop ~d 

S.Weilfle"'.MA Qu'n<y. MA0217\ Savoy, "'A 

SU .. n Roe nth. 1 f •• nk ~o,.II. Stephen ~Vat~ 

39Sloop Rd 21 (h"",~ Slf.~' 18 ~o'mef ~d. 

Sa..,y, M ... S~e!bur". roll<. M ... 01370 E. Heath, "1/\ 01346 

JOM F. Sea" bl~ ..,n .... 5h..,.,an PhO tan~1 Slnda" 

100 Puddin, Holla.. Rood _;0 Col",,"1 W~Y 28 "w.II • .,. Stre.t 

Hawle v.MA g,.w, ....... Mil 021><15" Shelbu,ne F.IIs. M" 

tll,.bel" Sm.,l. MO c.m~'oo. M. Snyder Rob~n J St.ck 

o..nn.mtown Road 40 R • ..::rvp;, P.", p" S 11111. p,neli'" 

erlmfl.ld, M ... IIockl.nd. M ... 02370 Plymoutn, MA OH6O 

M.rI.5,a..,0< M, •. t.m •• StamM j"'ome Stern""n 

II Sonom. Road 2. Sonom. Rood 73 Pudd,nl Honow R""d 

SQu . ntwn, M'" 02111 S/lu"n,um, M ... 02171 Hawlev, M ... 

Page! 6 
1113 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1057

(.!~r;~ St~m$!~n 

73 Puddln~ ~ollow R~~ 

Ii.wl .... " iliA 

)00" Swolu~ 

76 QU""'"' P.,h 

BlewSle" MA C2631 

pniU,pTI!d."o 

5C Old Vill 8e M 

5hh.bumer. II., MACIl10 

Eliube, h roll"; 

31 Elav.i<II> ~d , 

N,Q~'n<v, M"'O~171 

Da l, Tr~ .. dell 

178 P.l\~" ~""d 

Sh ltIu'n ~ Foll<, "'A01l70 

Nantvl TU fl""n 

89 Le""', Ba v Rood Un'1104 

KVa""\<. MA 02601 

And"w Well. 

30B.il~V Rd 

S/'Ielb\Jrne Fall •• "'A cino 

Step""" WO"" 

457 SI •• d~ I .... 

A>Mitid. MA 01330 

~ic~.rd A. Zona 

n DSt,.e! 

Nor". Ad.", .. III'" 01147 

John [hol .. <o 

85 8ly,jde Rd. 

Quincy, MA 

Edwoord Stock",.n 

131 Sum ... l! Sun, 

Plalnfr.ld,III A01010 

Joe Swal"" 

76 Qua.on, P.tn 

B'.WII.', MA,026J1 

lel M. Thomp,,,,, 

• HiS" S,'nl 

ll 'vd."vlll~, MAOI039 

M.,~ Tolfnl 

]I aav.ide M. 

N_Quln<v. iliA OH71 

Jud;!h Tr~td.11 

178Pon.nRuW 

SMlbumerolls. MAOI370 

~H;h.,d furleOn 

14 MornlnK M(.tune 

8u".,". B.v. MA 

AJben~. Weyman MD 

41 (aModln. Road 

B .... Wster, MA 02&31 

Gl!Orse lebrow •• ' 

950 5h.w Rood 

Wind,of. MA 01270 

Gre"" 8.Fluh' ..... 

PO Bo. 342 

Gre.t B'''in,IO<1_ MA 

Ma,l<,- o.LoIUi 

!!.5 B .... id. M. 

Qulroq, M~ 

o.bU~ I"'~~ 

15 S'"''' 51. 

Sh"iburn~ Fa l .. , MAIlIl?O 

Kr!.\~n 5wen,O<1 

106 Mfddlet<>wn flill ~ood 

ROWe. MA01367 

R,dlard TMd 

1'0 So' <93 

A.M'old, MA 01330 

10 T,.vl. 

156 HaU Hi ll Road 

HeOlh. "111.0\346 

~.~ f"rleon 

14 Mo,nlol MIs,l,;,ne 

8,,,,,,d, ~, MA 

Jove,,- V~nde K>efi 

107 S~lnne' Road 

Sh~iburM Fal ... MA 01370 

Vlcta';. wort/> 

4S 7 Ste.dv tane 

AsMlold, MA 01330 

Marsna Ze~",w'''' 

.. 505h ..... Road 

W,nd",r, MAOIl/O 

Pavitk Oo"I'n 

921 S.rn.,d>lon Rd. 

G ... ~/(.It\. MAOlllJ) 
1114 

Statement of Various Citizens of Maine 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1058

u.s. House of Representatives 

Committee on Ways and Mean~ 

Subcomminee on Se lect Revenue Measures 

April 26, 2012 - Hea ring o n Certain Expiring Tax Provision~ 

Comments Submined for the Retard 

The undenigned residents ;Ind prope'ty owners of the State of MaioI' respectfUllv submit these 

commems in respoose 10 the Aprlll6. 2012 Hearlog 00 Ce rtaio E'pirlng Tax P'O\I;,ions. Our 

commeOIS a,e limited 10 Ihe P,oduction Tax Credit (PTCI fo, wind energy. 

hecutlve Summa ry; The PTC is of len credited for most of the S,owth in the wind sector but 

auribuling ma'ket actiYily 10 Ihe subsidy is overly sImplistic and 1311110 toosiderotl\er crucial 

factor; driving developmeol. Wheo eYalualed agai"'l Ke'I ecorromk and erwlroom'mt criteria, the 

cost 01 the subsidy has proven excessive and the benefits to American taxpayers minimal. If the PTC 

were 1D expire. the economlt5 of the Indumy would shifl to Stales with renewable mandates. 

Powermarketl will ultimately (onfront the real cost of wlod enersy. and prke it accordiogly. The 

overall impact on the. ioduslry would be far I .... s .. ve'e Ihao propon .. "t5 daim'. 

Supporting Statements: 

High Cost; Since adopted in 1992. the cost of the PTC for wind ene'gy has ballooned from S5 

millioo/ye~' in 199810 $1.5 billio" anoualiV lodav. Theopen-eoded subsidy of l .U/kWh in afler-ta. 

iocome 'ep'esents ~ pre- ~x yalue of appro.lm~tely 3.7C/kWh. In m~ny regloos 01 th .. country Ihe 

PTC nOw equa ls, Or is Breater thao. the wholesale pric~ of power. Ev~n il th ~ PTC we,e to sunSEt. 

ta.payers are still obligated to cover nearl~ SlO blllJon In ta. cr~dju; for wind projecu; built io the 

last decade. This 15 Inadditloo to Ihe $15 billion d .. bt for wlod p'ojects e ligible under Section 1603 

(induding anticipated l0l2I"'nu). 

Inefficient: Since the PTCls uniform ac ross the country it is highly lnelficlent. supporting poorl~ 

siled development]n some areas while in other a reaS supporting projects that would have been 

buill ' .. ga,dless of th .. credil_ This is true In TUiS and the Pacific Northwest where wind capacity 

exreeds transmiulon capacity aod wind Is (urtailed'. In New Englaod the PTC likely pays mo'e 

subSidy than i. necessary owing to aggressive St ate maodates. Utilities in New England routinely 

slgn long-tl!'rm power contracts fo' wind at prices sIgnificantly above market. 

Oth .. , factors advancinE wind d .. welopmen t: The Industry inslSlS iI'S at risk 01 a slow-down without 

the PTC, This view igno,es other ,rucial faclors driving developmenllndudlng ~ate mandal .. s and 

natural gas prices. It is not pouible liven aYailable data to Identify the e.tent to which the PTC has 

,ontrlbul .. d to growth in the sector'. In fact. demaod for Wind has eroded 'eteotly due. in parI. to 

, Uno", .. out. 1012 ''''W .. ,OO<\ol T."imony ~npH'<I!n'"'~""'~.t<>Ylh ••• "III .utl<""'m'tI"' I"""'!lg .' OO<\-'" ~­

O.enI""·lvtl<omm~ ......... rlV ... "~-e ·" on""'n'·"El%8O%9J...jol"' h"""R 

l Wiw, and _"U" 1010 Wi .. d r .. hMl~r", Ma,t~' ~'. (1011) Vii h"p:J/~MdJbllov/e.,,,,,,,,,~pon<J!""t _ 

481o..pdf 

i Io,n, ecmmiltn on h •• no .... Preo<m law And !I<d~...,"r>d R<lm'lI9 fa r"" C",dn. '''' !l«.rricJly f'rodUrt,,,,, 'rem 

R."""",b", Sav" .. (2005114 ~"p.JI ... wwJct,!o'/""I>IicI,""' •. I"ml1f,m ." "d""'nll.id l~7g 

P~ge I 1 
1115 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1059

i1ate~ meeting their nmewable mandate~. Lower natural ga~ prices lurther reduced wind's 

attFolctiveness a •• 'fuel saver'. The £lA now fo.ecasts lIat g,owth In the wind sector for Ihis decad .. 

• egardless 01 whal happens with Ihe PTe'. 

Job losses: Despite billions in public funding Ihe wind sector npe.ienc .. d a net los~ of 10,000 direct 

and indirecl Jobs In 2010 bringing Ih~ 10131 to 75,000' Jobs. MOSI of 1M remaining Jobs are 

temporary ton.trudlon po.ltion. requ l'lng pea~ levels of development year·~tter·year to mainlain 

currenlleveb. Attempts 10 attribute Job creation to the PTCmust bt' tempered with corresponding 

Job los.es due to higher .enewable enerlY prices. The State of Vermont found that adding just 50 

MWs of .enewable energy athighe.·than·ma.ket electricity prices "had the deleterious effects of 

reshuffling consumer spending and increasing Ihe COSt of product,on for Vermont businesses'." Last 

year, rural elecvii: ratepayers in Minnesota paid more than $70 million In above·market energy 

prices due 10 the high COSI of wind'. 

Environmenlil benefilS: Wind ene'IIY is an unpredictable, variable .e~ource Ihat cannot be relied 

on 10 serve load. It. p,imary benefills in reducing U.S. electric ClIrbon emissions. According the 

N~"igant . a lour yea' e.tenslon of Ihe PTC could avoid an inc,ementall10 mlllion Ions of C02 This 

"best case' estimate is nOI predicated On an actual wor~ing grid region, bul if we accept Na vigant"l 

estimale Ihe COSI to la.pavers is alieasl $23/IOn C02' , len·times Ihe $1.92/IOn markel pr1ce lor 

oflsels in lhe NortheaSlern Slales participating In RGGil The PTC i. a high·priced vehicle for vety 

questionable reductions of C02 emissions. 

Conciusio n, The keV quesllon is whetherth .. ben .. lits ollhe PTe for wind are worth the cost. This 

2o-Vear old subSidy is upenslve, ineff!cl .. nl, has failed to p,oduce nel-job i"creases Ihat a.e 

sustainable, and the co.t applied per ton of C02 Is more lhan lO~ the market price 01 carbon under 

RGGI. The U.S. power ma.ket has undergone signi"can! change since me PTC WaS "dopted. 

including deregulalion. II jS/101 possible to isolale the extent to which the PTecOnlribules to wind 

~eClor growth'''. Wilhout the PTC, project economics would shift lo~tates wilh RPS polkies. The 

value of ,enewable credits mighl rtse in response but power markets will ultimately conlronlll1 .. 

real COSI 01 wind energy, and price it according Iv. 

' Wi ..... nd Bolin .... ' v • N"'~ No ind~P<'ndOf\I .udlU e"" 1o C<ln!i"" i<>ll <oun" · ~ ~V MW job in "'~ oIonri<.M 

.ector ", ... 1 C<lnlrlDUle to mer" •• int Ih. <0" of ",""",,"itV. till. " " " •• ecOl"lO<OOi< d.·,Um"''''' . 

• VI Ilf'S. 1/1<- ("'1'<'''''' Impael"'1 Yo"""n' FNd in ro,i{f. 120091 11 

h'II':lIpubHc><> ..... " •• """""~IO./pl .... ninclOOS"20Wh~. 10!' p"~~ 10i" UOT rill pdl 

W~U 5"<",,,,,, •• 1 Goug<:d b~ I~~ WiJ!d (M.V lOlli 

~t tP "'0"II"e w'J "","/ "ide/SaIOOOIA240s.1)()2301S92_Snl6410\400619t420 M",tlmod'IOOCIe"".,,_W1o) 

• N ..... ~' pro'"<l", M diotoil "" ~ow it detttmi~ 011.." .. S,vOj ...... """ some ,."no; DU~I " ;<1>,,,,1 tile ~IC opd orlj 

took«i .. 1,,,,.,,,,, .... 1 ~e~' "".f 4 v .... IIOIl· \6) no ,~t PI" o!r.." I. po ~nll.I"" ~ ....... \h ... $"1.]/1"". 

P~ge I 2 
1116 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1060

Supplemental Shee l 

Submitted by: 

Monique Aniel 

Co·chairper>on, Citilen Task force on Wind Power (Main", re,idem and properry owned 

PO Box 145 

Oquos,oc, Maine 05964 

Tel 207 864 S423 

~hl!fW @wi!dbl .... nlll 

Date su bmin ed: May 10, 2012 

The,e [omment, ire ,ubmilled on behalf 01 the memben ollhe CililensTis~ force on Wind Power 

George and laura Appell. 91 Dill Road , Phillip, Maine 04966 

Gary and Arlene Steinberg, 292 Bagley Mtn Road, lintoln, 04457 

Don Thomas, Caribou Pond, Lincoln O44S7 

Bob WelnSitrteo , president of the Boundary Mountaln~, 19 Dall;, road ,VleMa Maine 04360 

Jennifer and Greg Perkin, ,Sl Whitcomb road, PO BOX 1233, Holden, Maine, 04429'1233 

John Gates, 22Haleltine Drille, Cumberland, Me, 04021 

Art and Cheryl lindgren , 7 west Road, Belgrade, Maine 04917 

Albert Aniel, 342 Bac~~ingdom Road, Mexico, Maine ,04257 

Candace Ruplev, PO SOX 440. bland fali" Maine 04747 

Donna Davidge, 1027 (",.ul Road ,PO BOX lS41,land Fall, 04747 

Arthur and Reneva Smilh, Po Bo. 145,15 Harding street, Island F~ lI s, MaIne 04747 

Jonathan Carler 336 Back road ,le~,ngton Town~hip, Me 04961 

George Faulkner, 107 Main Weet ,Belfast, Maine. 04915 

John IR hngua",,279 Maple ,tr<",', Farmington . Maine 04938 

Da,n Trafton, 13S 10", hili Rd ,Phllnps, Maine. 04966 

Vera Trafton , 135 To", Hill Rd, Phillips Maine, 04966 

Art Wilde., 499 Wilder rd, Norridgewock .M~'ne 04957 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1061

Sarah Wihlar, 4<)9 Wilder road Nofr;dgewoo~ . Ma;ne 04957 

GenisI' HaU , 28 Hlac.kbrook Road . 8rvant Pond , Maine 042.19 

Hart D~ley, 7 Hidden Mudow Lane , DrXfiald , M~ine 04224 

Ted Rupley , PO BOX 44() 1,land fail., Maine 04747 

Penelope: Gray , 28;' Franklin SCIlOO! Road , fort Kent, Maine 04743 
1118 

Statement of Various Citizens of Nevada 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1062

u.s. House of Representatives 

Committee on Ways and Mean~ 

Subcomminee on Select Revenue Measures 

April 26, 2012 - Hearing o n Certain Expiring Tall Provision~ 

Comments Submined for the Retord 

Th e undenigned residents ;Ind property owners of the Stat~ 01 Nevada respectfully su bmit these 

commems in response 10 the April 16. 2012 Hearing on Ce rta in E'pirlng Tax Pr""ision" Qur 

comments are limited to til e Production Tax Credit (PTCI for wind energy. 

hecutlve Summary; The PTC is often credited for most of the 8,owtll in the wind sector but 

altribUling ma'kel actiYity 10 Ihe subsidy is overly simplistic and f31l110 considerOlher crucial 

factor; driving developmenl. When eYalualed 3gairt11 Ke'I ecorromic and environment criteria, the 

cost of the subsidy has proven excessive and the benefits to American lax payer. minimal. If the PTC 

we,e to expire, tile economlC5 of the Industry would shift to Sta les with renewable mandates. 

Power marketl will tim~tely conf'ont the 'eal cost of wind energy, and price it accordingly. The 

oYe",1I impaCl on the industry would be far I .. s~s .. yere than proponents claim' . 

Supporting Statements: 

HI,h Cost; Since adopted in 1992, t he cost of the PTC for wind energy hiS ballooned f,om S5 

million/ve~r in 199810 $1.5 billion annually today, Th eopen-ended subsidy of 1.2e/kWh in aller-lax 

incom~ rep' .. ,enU; ~ pre·tax yalue of approxim~tely 3.7C/kWh. In many reg ions of th .. country the 

PTC now equa ls, o r is B,eater than, the wholesale pfic~ of power. EVen if the PTC were to~unset, 

taxp,avers arf still obligated to cover nearly S10 billJon In t3X credits for wlod projects built in the 

last decade. This Is In addition to the $15 billion d .. bt for wind projects e ligible unde, Section 1603 

(including anticipated 1012 g",ntsj. 

IneffiCient: Since the PTels uniform ac ross the country it is ~18hlv ineffiCient, supporting poorly 

sited development In some areas while in other areas supporting projects that would have been 

built ' .. ga,dless of th .. credit_ This is Irue In TUiS and the Pacific Northwest where wind capacity 

exre~ds transmission capacity and wind Is curtailed'. In New England the PTC likely pays more 

subSidy lhan i. necessary owing to aggre ssive St at e mandates. Utilities in New England routinely 

sign long·te rm ~wer contracts fOl wind at prices SIgnificantly above mal et. 

Otl'o .. , factors advancinE wind d .. welopment: The Industry insists it's at risk of. slow-down without 

the PTC, This view ignores other crucial factors driving developm .. nl including Slate mandai .. , and 

natural gas prices. It IS not possible Ilv~n aYailabl e data to identify the extent to which the PTe has 

contributed to growth in the sector'. In fact, demand for Wind hilS eroded 'ecentlv due, in part, to 

, Uno", .. out. 1012 ''''W .. ,oonol T.' timOl'lY ~np H'C\en,".~"", •. t<>Ylh ""III.utl<""'m'tI..,-r"""'tJg.''''''-.n~­

O.enltI>r·lvtl<omrMr ........ 'IV ... "~ ... "·,,0I'I .... n'·"'El%8O%9J...jolnl·h .. ""R 

l Wiwr."d _nur,lOlO Wi .. d r .. hMl~r", Ma't~'Ik(lO'l, (1011) .. ~"p:l/~.'~Jbll""le.I"""' •• pon<JI""t. 481o..pdf 

i Io,n, ecmmiltn 01'1 h •• ,,,,,,, PI",,", law And B<d~"""r>d RrlmilO9 Ta r"" C",dn. 'iJI !i«.IrlcJly Ptodurritm ftc'" 

R."""",b", Savr<"12005114 hup.JI ... """Jct,!o'/""I>Iico'''''''.html1f''n< .. ~''d"...n ll. [d~I~7g 

P~ge ( 1 
1119 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1063

i1ate~ meeting Iheir nmewable mandate~. Lower nalural gas prices further reduced wind's 

attFolctiveness as. 'fuel saver'. The £lA now forecasts lIal growth In the wind sector for Ihis decad .. 

regardless 01 what happens with the PTe'. 

Job o,~n: Despite billions in public funding the wind sector nperienced a net loss of 10,000 direct 

and indire" job, In 2010 b,inslng Ih~ total to 75,000' jobs. Most of tM remaIning jobs a,e 

temporary tonstrUdlen positions requlrlnc pu~ levels 01 developmen t ¥ear·after·~ear to maintain 

currenlleveb. Attempts to anribute Job crealion to the PTCmust be lempered wilh corresponding 

Job losses due to hlghe, renewable ene'lY prices. The Stale of Vermont found that addjng juS! 50 

MWs of ,enewable energy athighe,·than·ma,ket electricity prices "had the delelerious effects of 

reshuffling consumer spend ins and increasing Ihe cost of production for Vermont bus'nesses'." Last 

vear, rural elecvii: ratepavers in Minnesota paid more than $70 million In above·market energy 

prices due to the high cost of wind'. 

Environmentil benefits: Wind ene'gv is an unpredictable, variable ,esource that cannot be ,eliI'd 

on 10 serve load. Its primary benefil Is in reducing U.S. electric carbon emissions. According Ihe 

Nall;gant' . a four year eOlenslen of the pre could avoid an Incremenlall10 million Ions 01 C02 This 

"best case' estimate Is not predicated On an actual wor~ing grid "'8ion, but If we accept Na visant"l 

estimate the cost 10 laopavers is alleast $23/ton C02' , ten·times lire $1.92/ton market price for 

offsets in the Northeastern Slales participating In RGGil The PTC is a high·priced vehicle for vetv 

questionable reductions of (02 emissions. 

Conclusion, The key question is whether the ben .. fits 01 the PT( for wind are worlh the cost. This 

2D-Vear old subsidV is upenslve, inefflcl~nt, ha s failed to produce net-job .ncreases that are 

susninable, and Ihe COSI applied per ton of (02 Is more than lO~ Ihe market price 01 carbon under 

RGGI. The U.S. power ma,ket has undergone significant change since Ihe PTC was adopted, 

including deregulation. It jSllOt possible to isolate Ihe exlent to which the PT( contributes to wind 

~eClor growth'''. Without Ihe PTe, project e.:onomk. would shift to~tates with RPS policie,. The 

value of renewable credits mighl rtse in response bUI power markets will ultimately conl,onl the 

real cost of wind energy, and price it according Iv. 

, Wi ..... na BoIin .... r II • Not ~ No ind~P<'nd.,,, .udlU ~ .. " I" C<ln!i"" i<>b <ou,.. ... 5U>n> ~II MW job in "'. "oct,icilV 

.eclor "",.1 C<lnlrlDirle to m"e. 'in, Ih" <001 ot ..... 1';"'111. llIl. ,,,,.I~' econoro>i< a,,·.lim"'''' . 

• VI Ilf'S. 1/1<- ("'I"'''''' Impael"'/V.,,,,,,,,, FNd in rori{f. 120091 11 

h'1I':lIpubHc><> ..... e •• """""~lo./pl .... ninclD<'S"20Wh~."IO!'.l>"~~"lOi"'UOT.rill pdl 

W~U 5"<",,,,,, •• 1 G_d b~ I~~ WII>d (M., lOlli 

~t tP "'0"II"e "'J ."","/" ide/SaIOOOI 240s.1)()2301S92_Snl6410\4006191420 M",tlmod'IOOClenew,_W1o) 

• N ..... ~' pro'"d .. M diot,,;l "" ~ow it de1trmiOfli off,.,,,. SIuOy .nv"''' '0_ .. ,"d I>U~I .. i!/>wl t~ PTe ~nd orly 

look"" . t ",,,.,,,,,.,,,1 ~e~' "".f 4 V .... llon·161 n. ,~t per olr .. , I. poteMI.lrv ~ ....... \h ... S<l/lon. 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1064

Submitted by, 

~dy Bundor!, 

1800 Ste'!ing Point (c"rt 

Hende ,son, NV 

701~8Z 9S61 

Date su bmitted: May 10, 2012 

Supplemental SlleeL 

(ommenlS submitted on beh ~lf of tile follo .... ,ng 'e5id~nls dod p'ope' ty owners of Ihe Sla te of 

Ne ~da. 

DoMa Andress 

HC62 Bo~ 14 

Searchlight. NV 

judy Bundor!, 

1800 Sle ,linll Point Court 

~~de~on, ~V 

Ga", C. rl.on, 

8326 ~.m Drive 

lao Veia., ~V 

Kevin Emmerich 

F'O Sox 10 

8 .. atty, NV 

Tllorna, Ca<ey 

PO Box 1303 

Searchlight, NV 

Ellen Ross 

21 4 E. ShelDDurne Avenue 

la. Yela<, NY 

C. G.A'Id~SI 

HC6l Bow 14 

Seardoligl"tt, tN 

C. Wayn" 8undorf 

1800 Ste rling Point Court 

He nderson" NV 

l aura CIlnnlngham, 

PO 80x 10 

SUlly, NV 

Da~1d Hornbeck 

Easle Vall~ Box 200 

Piocl1e, NY 

a~ d Barton 

3765!:. Quail Ave nue 

l as Yela. , NY 

RutM All 

~OOS Radbourne Av.. 

L.u Yegas. NY 

Cindy D. Cart.on 

g326 Gresh~m Drive 

las Yega., NY 

Verl ie DoinS 

100 Highway 95 

Searchlight. NV 

Ronda Hornbeck 

£ogle V.II ..... Sox 200 

Pioche, NY 

Marianne Banon 

3765 E. Qualillvenue 

las Yela •• Nil 

P~ge I 3 
1121 

Statement of Various Citizens of New York 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1065

U.S. House of Representa tives 

Committee on Ways and Means 

Subcommittee on Sel ect Revenue Measllres 

April 26. 2012 - Hearing on Ce rta in hplrlng Ta~ Pro visions 

Commenn Submitted for t h e Record 

The uoder>igoe d resideols aod p,operty owne .. 01 the State 01 New York resp~ctl ully submit the.e 

commenlO in response 10 Ihe April 26. 2012 He3r,ng on Cefla,n hpiring Ta. Provls'ons. Our 

comment> are IIm;l~d 10 I~f Production Tax Credil (PTC) for wind energy_ 

heculivil'- Summa ry: Th .. PTe i$ olun credited for mo.t o f ~e growlh in the wind SK lor bul 

anribut1n~ market activity 10 the sub.ldy is overly simplistic and f.i(s to consider oth .. r <,udal 

faclors driving development. When I'-valualed again<1 key I'-conomlc and envlronml'-nl crile"". Ihl'-

eO<1 of Ih .. sub$ldy has proven e>«:u §lve and the bene lTts 10 Arnerlean laxpayer. m;nlmal. If Ine PTC 

we,e to ~p re . the economiu of the Industry would shift to Slat ... with renewable maodate s. 

Powe r mark .. " will ultimalelv <onfrol)llhe re al con of wind e nergy, and price il accordingl y. The 

overall impacl on the Indu"ry would be far len seve,e I~an proponents clalm' _ 

Supporting Stalements: 

Hi,h Cost: Since "dooted In 1992. the COSI of the PTC for wind !!-nergy nas bilolloone d from SS 

mitlion/vu r in 199810 $1.S billion annually today. Th e open·ended ,ubsidy of 2.2(/kW~ in ~ft t~" 

income rep,e'~n1S a p,e'!ax alue of app,o~imal .. lv 3.7t/kWh. In many res;ons of Ihe country the 

PTe now equal" '" (, greale, I~an, Ihe whol!!-. ale prlee 01 power. Eve" If I~e PTe were to sllnset, 

I~.p.v rs are still obli8ated 10 cover n"~rly $10 billion In tu ered ~ lor wind projecls buill in the 

laSI decade. This I, In addilion to the SIS bl!l!on debl ro, wind projects e ligible unde r Section 1603 

llnduding .ntlclp~led 2012 g..,ol,). 

In"'tid e n!, Since th." PTC i5 uniform aerOSi t/le couotry it IS higl>ly i.,,,ltidenl .. supporting poorlv 

.ned developm .. nt In 'lOme a,ea. while In oth .. , area • • upportlns projee" Ihat would hav .. be .. n 

built regardle« of th e credil. Thi.l, Irlle In Tex~ 1 and the Padflc Northw .. sl where wind capaclly 

.. >teeds I"'nsmlssion npacity and wind i. curtailed '. In New England the PTC liKely p~y. mOre 

subsidy than Is "e c .... ry owinif \0 anre .. ive State mandates. Ulill1ies in New Eogland routln .. ly 

sign long-term powe, conU,cls ror wind al price. significantly above markel. 

Olher fa clors a dvancing wind deve lo pment: The industry Insl.u It', at , isk of a slow-down without 

th e PTe. This view Ignores othe r crucial factors driving deve lopmen t including Slate mandat es aod 

nalural ifas prlc ... . It i. not po .. ible ifiven available data to Identily Ih~ u tent to which the PTe ha s 

contrlbut .. d to growth in Ihe sector'. In facl. mand lor wind has e,oded recently due, in part, 10 

, Unowf1 .... ,. l OU ' ''"''' ... i ..... ' ' . " imonv h"p'" <.i ou."""' •. O'II ",."~ """"" "' ~'''' -ln''.'''II I'''' nd· 

O"""'I ~ ... ubcom"'l" "'·eJ">O'I V· .... "' '''''''''' .''''·~l''''''''''''' 1 

w,,~ , ond DO""' .... lOIO Wood ", ~ool<>9.e. ... D ..... R<-,. (lOll}'" "tWIl 'd IbI_ O./~. "''''_>fIbn l_ 

~lIl o.." .1f 

. ',"n' "", ,,, ~~<H'I To .. ',"". P,.,,", I" ... ".; ffD .il'''''~dR /o,bv1 10 fa. <ftd.,. """"H u" ,," ''''''' _b'" so.n,.,. (100)) 14 "tlp,,/lwww 1<t .". .ol>f I<> "'_"""" "down" '!>7 ~ 

Be I 1 
1122 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1066

'I~ es mef'ting their renewable nundat" •. lr;>wef n~ uf"l gas price .• luo1ner reduced wind', 

attract'vene,..-~. a 'Iuel ,aver. Th~ EIA now loreca.h Ilat gfowth in Ihe wind .ecto. for lhl. decade 

regardless 01 what happe ns With the PTe'. 

Job losses: Despite billions In public funding the wind s""to. e><perienced a net loss of 10.000 direct 

and indirect JobS in 2010 bringing the 10tal to 75,000' jobs, Most 01 Ihe remaining jobs a.e 

tempo.ary con,l,uc110n po,itions .ellui.ing pealr levels of developm .. flt yur ~lte. yea. to main!".in 

current level •. Attemp" to attribUte job creatIon to Ihe PTC mUn be tempered with corresponding 

Job 10""" due 10 higller .enewable e""tgy P"C~S' The State of Ve.mont found Ihat sddlng lu" SO 

MW. of .enewable ene.n at highe.-than·mattel eleclfkllV p.ices "had the delele"ou. e ffeCls 01 

.e .huffllng consUme •• pendln@andincruslnglhecostofpCO<luction for Vermont bu.lne .. es .· liIst 

yea" rural electric ral"payer, In MTnnesota paid more than S70 ""lilIan In above-ma.~el ene.gv 

prkes dU"IO the high c,,.t of wind ' 

env; nme 1 benefit.: Wind ene.gV i. ~n unp,edict~b e, yulsbl .. resou.ce th~\ cannot be . e lied 

on to seNe load. lIS primary ben .. fit io in reducing U.S. electric carbon emi"iono. According tile 

Naylilant', a fou,·year extension 01 the PTC could 3yold an Incremenlal 170 mIllion Ions of C02 Till. 

"bf!$1 ase" e~lltn~te Is nOI pf .. dlaled on ,n actu~ 1 wor king 811d 'eglon, but if we ~ccept N~vlganl ~ 

"slimale the cost to tupaye .. i. at I .. ast $23/ton C02' , ten·tlm~ th .. $1.92/ton market p.ice fa. 

offs.,,, In the Not1heast~'n state. panlclp."ng In IIGGII Th e PTC I. a "'gt>' prked vehIcle lor very 

que stionable , .. dUclion> of C02 .. missions. 

Concluslo<\; The ~ey question I. wheth", the benefiU of the PTC fClr wind a.e worth the cost. Th i. 

lO·year old .uboidy i. expen.I .... , inefficient, has failed to produc .. ne"iob Inc ........ lh"t are 

. u.talnable, and the cost applied p ... ton of C02 I. more Ihan lOx Ihe markel pric e 01 ca.bon under 

RGGI. The U.S. power market h •• unde,gpne .ignillcant <h,nge si nce the PTC wos adopt .. d, 

Including deregulallon. IIlo not po.,ible to r",lat .. the ... tent to wllith the PTC contribute. to wind 

.ector gtOwth LO• Wilh<>ut Ihe PTC, project economiC! would ,hlft to.tale. wTlh RPS pOlicies. The 

v~lue of renewable credits might .ise in .espon ... but power ma.kets will ullimately conf,onl the 

real C051 of wind energv, and price It accordlnely. 

' Wi ... , ."" _",, ,. _ Na'~: Na ln ~e~~_ , ''''',, ~"'" 10 eo<>lir", jOb " .. ",,,- Slote ."" ".,.. lob in ' .... "'"",Icfry 

_lor m"," roo"fb,,~ '" """~.>I,, , .... «>" at oie<: '~l", 1~" ,,~.,~. eca""",ic do<-............. 

''IT DPS. ""'C,,,,,,,,,,;,, !<rI .... '" oJ ".'_, f""(1 ,,, [Qflff.12009111 ~"J>:IfJ>Y""'u."'""". """",."'/p ninj/OPS"2OW"~ ~OP .... "'wn,.<I"'Oi""~OT>nN ,pdl 

' W. II ~" ... , !O"'~., {j""QPdby rI.o W;R~(M'~ 201'1 

h"pJI""IF"~."".=ml."'<ie/$"'1lOO14l40~11Ol3ll3~914(l4>"164'040D6J9'4)O."'mI1m"".BOO/II ...... '_W11 

• N'>'Ipnl p,.,.i<le. no del_" "" "_" "",~""I"d ofl>e ... ~IU<lv •• ."m .. .., ..... " 'od ;" Wilha"' ,o,e PTe; .nO on" 1_"" .. 1"".",.",., """"'It a .. ,. " .... OQI), ,61. ''''' " • ., ... ' aU •• , '~_M"''''' hili"'" tI»n $11fl_ 

Page I 2 
1123 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1067

Submlll~" by: 

Mary Hamilton 

4lAl e~lIoad 

Hjmmond, NY 13&46 

Date lubmilled: M. y 10, 2012 

Suppl ment~ISkeel 

Mary ~ay 8;lftOf1 

PO Bo~6~ 

Sil_l..~., NY 14549 

Com men" <IIbm,""d Q(I behalf of lhe follOwing re<ldenu ~nd propotfty ownen; alIke Stale 01 New Yor~, 

D''''d A<:eordl M . ... e Aoca,di M.rkA(\'t' 

J9 Hil(~ w Tem."e ]!I HilMew Terroco H.H'wav t,lond 

We.tSenKa, NY 14114 w"" ;"n<,<,. NY 14114 Hammond. NY 13646 

Ch",A~I ... Corv A~!os lIobert E. Ali.,,,,, If. 

4l!n"M.dow 4S12 Mea<lOw 874~ State ~<lIJle 178 

Hambu'i, NY 1407S H.mbu,., NY 1407$ Hende,..,n" " ROlleft f. AI""o I,. Edwin Alten K.ty All .... 

8748 St.te 11"."1,, 178 58 Not>em.n CI. 58 Noblomim el, 

Hend."on" NY F'i'port. NY 144SO ~'!fpO'I, NY 144!>tl 

Oonn~ Andfe M .... And'. ~f.ntl. And,e. 

IDI Pro'J>"<1 5t, to1 Pros",,<! 51. lBB69 Tubollno Road 

AItIc.I, NY 14011 Atilt., NY 14011 I..of. 'iOYilte, NY Bfi5b 

Helen eadl.m leaMe B."on ~onMlh 8.~on 

PO 80. )01 47 Ulii bridlle La .... 47 lllbrldll~ l~n~ 

Wadd ington, NY lIng. Hammond, NY 11646 H.mmond, NY 13646 

elll earton M.ry ~ay eanon Paul e.rto~ 

P.O. eo. 69 P.O. 60. ~9 9395 faf!C Ro.d 

Sliver u-ke, NY 14549 SiM!f u-kc. NY 14S.9 Ben,anv. NY 14054 

Willi,,,, C. eanon David ea"ell 10.0 B"'ell 

7 Pfar! 5' .... e t 180W, 6uff.tcRd l!1OW.BulfalcRd 

e.l.vI., NY 14020 W,,,,w,/'Iv 14S69 W.".w, NY 14S~ 

Tefr"V Dau",,,," Ed /, Be,1< Ma'garet 801<10<:1< 

41260.Io;cm.ki jg17 Buffa lo Rd . 1262 C~ 11 

Sit"" laII.~, NY 14549 W ..... w, NY )45~ lisbon, NY 13658 
1124 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1068

David J.8i:11 '~n" kIW"nU'e '1ichel •• s."""nu.e 

620 Edgem~,e Dr. 34811bben .. Point A,ODe Loop 348 nDben. Pelot A."", Loop 

R<><n~$t~', NY 14611 C.~VItI<eM. NV IlLI8 ca~ Vitl<ent. NY 1l61B 

R"".ld Bert,.m Adorn Blai, (Indl Sla" 

16gSCR6 ;1851 Rout. 20,0, 1851 Roo." 20A 

H~'T'mond. 'IV U~6 Vary,bu'll. NY 14167 Va'Y,bu'!l. 'IV 14151 

Jan~t8"lr I<>nol"o" BIa " n 810" 

13~R' 17 18S1 ROUte lOA 18S7 Ra"t~ 20A 

AUI"" NY 140U V.""bura. NY 14167 vo ...... bu, • • NY 14161 

R<rie, BI.i, Ro<e BI.I, ~u ... n Bodu. 

1857 Route lOA 1399~t 17 PO e.o~ 37 

V'f'/,bu'l. NY IU6? Auk.,Nv14011 Otippew~ 6.>y. 'IV l.l621 

Patty Bo"a.·MIII.,. ~.tnl ...... A. Bo"" 5a,.n Bo .. 

18869 lubull"" Ro.d 1168 Ch:pmcnk Rca(! 35438,.y $'" 12E. 

u f a" ... II •• NY U65~ AII" any. NV cape Vi""ent. NV 

Jam .. eoyl" P.m.lol\ajl. B,ook. BrlCdo" 

25 OV~rlook 0" ..... 25 OVerloo~ Or' ..... 520 W • • t 6,,,.dwav 5tI,el 

H3mmMd. NY 13646. Ham,mo'>d. NV 1)646 ca~ Vln .... n!. NT 

Jell B'e.j~,'" Michael B,own ~obe" euiS" 

5 v'ne SL PO 110037 140.nl",.lane 

BaI~I&. NY 14020 Cltip~wa 8a~. NY Il61l .... mmond. NV 1364& 

Su .. nn~ Bulpr Arle~e e!J'Rlo O.vid BU'lio 

140anlel,loM 110 6.>Ma,d A.e. 39 Bonna,d A.e, 

H.mmond. NY Il&46 Ton . ... "d •. NY 14150 Tc .... w;Jfld •. NY 14,50 

Hele_Bu"lo lo.ep~ Bu'!!lo Mlchoel BU'llo 

39 Banna,d A ..... , 1l0~no;ord A ...... 3570 Sv1e, Ad . 

Tonow'ndo, N~ 11150 lon"wando. tN 14150 Vlryo;bu'l. NY 11167 

Veron",. Bu,t"' 0 ... 8""" MOf'/Bym. 

39 BOM.,d Ave, 2891 Ont~rla S~o'e, 0.,,,,, 2891 Onl.,,,, 5~'e.0''''e 

TI>n.wanda. NY 111'>0 c:.peV'",. ",. NY 116.!B Cap8 V"""""'' NV LJ51B 
1125 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1069

Tony' Byme 

un OnlM" Sho<e5 On"" 

C.peVir>e~nl. NY 13618 

Ann. M •• ~ COp;llupo 

3l19] Old Form Rd. 

Cope lIir>eenl. NY 13618 

Davld Cory! 

]8S] Wober Rd 

G.'ne'l.We. NV 14066 

h~n C.",,," 

2763 Krolt Rd. 

~ ... w. NY 14569 

s.. .. nGo<I 

IS~ hOI Mil .. 5t 

W .. nfield. 'IV 14787 

OGr1n. 0.. .. 

60~ il<:a<l.,"y SIr .... l 

113",,"on<l, NY 1]64& 

No""", Ch .... 

602 il<:ode",v SIft'M 

Hammond. NV IJ&4& 

Anl,. C<>I •• 

4079 Tr.ber Rd North 

SiI,,~, Sl>Iin&>- NY 14SS0 

Mary I(, Collin. 

2535' liumph,,,,, Rd 

Cape Vir>eenl. 'IV 13til¥ 

M>ld,"" Oayl, 

ll!lil ~nl"yd e cu. ~d. 

W. ,,"w. NY 14569 

John~. Byrne III 

2891 Onl., .. S"o<~. Dr."" 

Col>'" VI",eM. NV 

R.Ip/1 Col/olupo 

33793 Old fa"" Rd . 

001><' III",e"l. /'IV Util8 

N.II;' ca,yl 

1946E (~.n8 .. St 

Allie • . NY 14011 

5,.de Cas«." 2768 Krotl Rd. 

W ..... w. 'IY 14S&9 

[linbet~ E Chapman 

POB8I 

~.mmona. 'IY 

Ii."., C~ ,e 

48iti" Sedfo<d Co," .... Rd. 

Co". v l",enl. NY ilbl8 

Kennel" (!oed 

15719 Beld'" ~ Rd. W. 

Cop. Vlncenl. 'IY UtilS 

l.m., Co l., 

4079 Tfab", Rd NOr1h 

Sil ... ,Sprl"ll" Nv 1~SW 

Sleven C.endof11 

1399 O'.nl ..... lI. a, Rd 

W .... ,... 'IV 1.5~9 

L ·S.m" Oelonl 

P.O. Bo.391 

Or"" \I~<."' , ny 

MICh.el J. c..nl,el 

125 Chlp __ • Pain! R""d 

t;.",,,,and. NY 111046 

lIonnle C.ryl 

3853 WOlle, M 

Gal_ville. NV IlO66 

ROVf11ond ClIry1 

1946 Ex<:~~e 51 

~t tJa. "V 14011 

Mlch;H!1 Ce.1 

IS5 £0'1 M.!n 51 

Westfteld, NY 14187 

Thom .. L a..pm.,., POB81 

t;.mmond. NY 

M"h.ei +-L C"'''' 

302 MOt,.n 51. 

Ton.wlnd •• NY Ul'>Q 

Ti,"' ..... (iotci 

35719 Be.dle ~ Rd. W. 

c..p. Vl!1<onl, NY 1161S 

Borb ••• Collin. 

141 ChTppewa P,""I Road 

Ii.mmond. NY H6oI6 

Tln.Oendom 

2399 O~nieville Clf lid 

War",,... 'IY 14569 

O,ni", Oe<Ite, 

81048 Nann M.Tn Sl",e( 

An,<>l •• NY 14006 

Page I 5 
1126 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1070

Dow_I. , o.::IC1O~ J<>a~ [)eH)lh Eoca Oemick 

n 1i3",)iton Sm;t~ Roa~ 2l1i~mnto~ Sm,th Road 56 S. Ma,n St • ..,t 

l13mmo"o. NY ... ammMd. NY ".mmOIl<l. N~ 

liow •• a W. Oemlct ""'ema". o..m1c~ G"",p o.::ttmer 

2l!-t CIIonl'l Route J nat Coynty Roy,,, 3 21 AII " Ro.d 

1i~'T'mond. NY ...... mond.Nf ..... '''''0''<1. NY 136<16 

su,;. A,. Dettmer Oorry! Ooc~ln'on Mary Docioln"", 

125 C/ljp~w. ""I"' R""d 315l C...,' .... lIne Ad 3152 Cen'erline Rd 

H.mmond. 101" U6.46 V.""bUra. NY 14167 ~"'I'.bur • • NY 14161 

WWI'mOic~<>V<', Aio",," Din",>" Shlo1ev Din",." 

30 ~lien Rhod 1298 £dlle/¥l"'. D<lve 1298 £<IB.""". Orlye 

li.mlllQnd. NY 1l&46 RocI1.ster. NY R<><h."er. NY 

~.Id If. O<><teu, ""'"1 Oocteu' Cilrolyn D,,,'f'" 

)1161NVSRtIlE 3U63 NVS Rt HE 28:18 Oro"a"ville C", Rd 

CapeVI"""n\, loll' 13618 Cope Vinaont. NY 1361S W., ...... Ny14<;ti9 

O."d Dull h thy oUP"Y C.rrie Dyl., 6.4 Soulh Woad. Road f'O 80,15 1725 N •• bin Rd. 

l13mmono. NY Wado,ngtM, Nf lJ694 Awe • • NY UQlI 

Mike l!'t'loW Nkhole Ovlaa S.,.h l!'t' .. w Ins N. <I>itt Rd. !1lS N",b~t RG . 1125 N .. bitt ~G. 

Anlca, NY 1401l Attiu, NY 14011 Alliu, NY 1401l 

Ann h" ..... 'h~r! .. Ebb(ng K~'hV Ebblnll 

4707SCI'''''Ste eoy Rd. 10710 [,SlIlo.G 20110 ET" Road 

A1e •• ndl1. R&v. NY 13601 lo'ofj!evll"" NY 1165& LoF"i""';I~. NY 1365& 

Go,.ld Elmo,e S",O" ['<nOfe Poul [m~"1 

391S PH)W" Rd 3938 PIQ .. e Rd 4184 F.irview Road 

AWco.NV 14011 Attiu. NY 1401l C •• tile. ",y 14427 

Do~n. E,\~'t.~ Clndv han, Mo".Ann f.o .. , 

416ft.ySt ]618 Q ... ~ertown RQ;od 393851i 37 

Op@Vi""e,,!,NV136li1' W.~.w. NY I.S69 "'o"'''own, NY l31>G.I 

Page I 6 
1127 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1071

R.Jlp~ [.,n. N"~ol.S fish ~, BiU f"~m." 

361l! Qu.Mrtown ~o." ll!S~ ~1 1UA 5 f .. gu",," une 

W.,....w. NY 14569 V''V'butt, NY 14167 "''''mana, N~ Bf.II6 

lo~n M. rum~n William A. f' ...... ~n Itich.,a ,re>h"", 

6 Ph~l lp , Lilne 10 f~ •• u<o" Ot 86%Slate~LI2E 

Ha'Y'mona, Ny U646 " .... moncl, NY 13646 T/>, ... Mile eay. NY 0693 

le.n friedma" "' .. tv f,iedm'n )"" fugle 

7H8187thSL n·la IS7th St. 1750 Ex<:h..",e St 

f,e,h MNaow •. NY 11366 fle,h Meadow,. NY 11366 ~ltJ . NY 14011 

Milton L Fult .. , .G~o'8" Kevin G~,£" 

7682 M. ple ~o.d 18SS Petty ~d IBSS Perry ~d 

Soldwtn>"iUe, NY 13017 NOflhlav.,NY 141H Non~ I, ,,,,, NY 141H 

Undo G" "'Be P.lrkk Goo.,. Ch.ricne Goodenow 

18SS P~,ry ~d 1855 Perry Rd 3001 'mll.Jle Rd 

Nonn .v , NY Hill Nortl1 lov., NY It 113 Wa.,,"w, NY 14569 

Ilenu G,a~w;k, Mike Gr~veldini Cha,le Grlmn 

997 We., ~il l Rd l1S~ Buff.lo Rd. n 5'tp",ng 51""" !.ant 

lelle"cn, NY 12091 W. ".",. NY US~9 O"hard Pa,1<, NY 1& 127 

Sheil. Greff looi!l, Ha ll Tam ... 11 

3617 8ulfalo Rd COhOClO", NY ].41S3NVSRt12E 

Anle., NY 14011 c.p~ VIII'_ "l, NY 11618 

Oel "omil.on "'0'"1 Itomllton Itolel ... Hanna 

41 ""~~ ~oad 41 Allen ~ood 879J s..:.lbn~' ~o.d. 

l1ommoOO. NY 116'16 H'fIVl'ond. NY 136'16 W.yl.nd. NY 14Sn 

MltI1 .el Co. Hanna Mhll'y H" mOfl PeUY Ha,mOn 

S7'J3 S«lb""r lIe.d, 344 Oen,o"" ,U Demo"" 

Wayland. NY 145 72 Amhe,,!. NY 14228 "m~~nt . NY 14228 

Mne Harr,s john It_n Ilme . ... '.,nS 

11267 Th, ... Mile Point .~ 40 Schnurr ROlld HIBI Old f.rm ~oad 

C/I~umo",. NY H.mmond, NV 13&.1~ Cap. Vmt. nl, NY 1J61S 
1128 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1072

Janet flo.kon, B.a,ba,& fl ebd~n Rob .. , fl~bden 

331S1 01<1 Fa.m R~d I0760Gene,e. Rd. 107&0 GeneOl'e ~d. 

Ca~Vir>Cenl. NY 13M8 Ea,' COr>Co.d, NV 14n5~ Ea" Corocord. NV n5~ 

A.nn flei,mann klnn fl."mann !onite .... ""'., 

4187 rai"".w ~~d .187 Fa."';".., Road IU8 W.,.,. r Rd . 

Coot)". NY 14417 00.' ..... NY IU~7 W.,,~w. NY 14~69 

SlOwart f1""~1 ~1,~.t<ll.I1.nry MlcII.ltel1e~ 

U38 W.,n". Rd_ 311 W. Third S._ IS "'"""dal. O,iv" 

W.".w. NY 14569 0'10",,". NV 13126 Pinsford, NV 14534 

Tlwmo<l1"" J><M,Hili Joan 111" .... " 

15lau,eld.,. OrIV. 416B.ayS! 46 M";nStreet 

Pitt>ford, NY 14534 C.~ V>men<, NY 13618 St.mfo,d, NY 1216' 

Rltha'" Hinman Oebb1 HII",hey Lee Hlr"'hey 

46 Main $1,...,1 300 (nlp,,"wa Point Rood 300 Q.Tp,,",w, PoTnt Road 

Stamford, NY 11167 Hammond, NY 13&16 " ammond, NY 13&16 

Edwa, d A,. "lud,en" 1 bIn"", A, Hlud,e"'ki Rich"d Holt 

19174 Stony Point Road 291N Stony Point RaId 175 Rivero/de Df;'e 

Cap.VinCf'nl. NV 13618 Do" VI",e"l. NY IlLI8 New York, NV 10024 

Dawn HOI'l''I".i, Down Holy",k;, "arold Hop,;n, 

3m! lIa""V ~oad 308 VIII~y Rood 2953 O"nnlm Rd 

Pulaski" NY PYla,~j" NY 11141 varyr.bufl, NY 1_167 

Mal')' 10 Hopirln, Ago., Hou>tl<nO(jrt Joh,n Ho .... kn«~t 

2953 D~n~am Rd 8 771 MorganviHe Road ,091 Fo. M 

v."",bu'B, NY 1416] Sullo,d, NY 14143 Middl£bur,. NY 14~91 

I(.]tl" Hou.ekn«I>t Rllpi1 Hou>tknecl1t ",0"'.' "ou''''ne<.M 

Fa'io Rd. a 771 O'B.n," l~ R<>iI" 61 EIIicou ''''e, 

StaH .. rd,NY 14\43 SI.ffOfd, NV 141 43 Satavl., NY 14020 

Pel.,. "umphrey Slrll'l' Humphrey ';" Inn;' 

1446Sout~Rd. 144b ~uUr Rd. 20 Old Oak Pam] Road 

S<olt,vllle, NY 14,4& S<OI".;~ , NV 10,46 ,,"mmMd, NY 13&16 

Page I <I 
1129 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1073

KmnM.lfWm AI.n 1 .. lh .. d G~o"e I~nv 

1985 rffna c;.c~ 81l51<10fth Hwron M. 8655 fead!c_ 

Cb~, NY I]().II WolCott. NY lI.mb .. , •. NV It075 

Ma.k Jenny Pam lenny P.ukJ~ lenny 

6416 Rice Hill Rd 6416 Rice 11,11 lid 8655 dd;<~ 

8011an, N"I)40ZS !IoOion. NY )4(»5 1I~"lbU' I, IfY 14015" 

~.thy I.ole<! Pa .. 1 Ie""," Dr. V. le,le JoM,on 

ltn Snyd .... Rd. 147l SnVOc' ftd . SO Horo" Road 

V . ....... ""&. NY 14167 V'lySbU'a. NY 14167 Ch,pPf'wa 60". NY 1]623 

Dawn ""dan Ch.rle. I ...... Etlen lu,y 

54 Gull Hill Rood lSSl Humphrey Rood lS52 H~m phrev Rciad 

Voo.h"",vllle , I<IV C."" IIln""",, NY (.,ope Vince01, I<IV 

8obbi. ~.,Ie SI,..,.enhgle D.l'<'Il.m n.~ 1 

S514(_~m.nL.>n" 5574 eo.'~m.n l.3 ... l403 O .... "~III. (" R~ 

Hambu •• , I<IY 14075 ~.mbufl, I<IV 14075 W ...... , NY 14569 

Ed ... ,d ~om,",kl lohn Ko ra .. ewin 1<I."tv K""'e ... " 

l403 O,.nle,lIl. (If lid 3805 lit lOA 3805 !112M 

W., .. w, I<IY 14569 wa ... ",. NY U569 W .... w, I<IY 14569 

""ni'" KnT,hl lim Knll hl lIewrlyKolO 

Il81r<>C .. " 128 Leoc'~<1 1\800 eo...ntv~o"d 17 

W~'I 5enKa. Ny 14224 W~OI Sen~<a, NY 14224 Way~nd, tIY 14512 

0. .... 1 .. KOl. (>on"O Itow"ew.1oJ Paul K""' I~w\1r. 1 

U800 CountV IIc d )7 3845 Ce"lerll~~ ~d 3845 (en""I1"" M 

W ..... I."d. NY 14,n w.rw .... I<IY 14569 W.ffiI". ~y 14S6\l 

8a.b.,. Kr~u. 10'''Ph Krou. Ann K'eb. 

24D Po.tom," lid. 240 P.rlrm, " Rd , 251$ M~'" 51 

Gilbo • • ~y 11076 GllbH, "IY lZD76 V . ..... bu'l. 1<11 14167 

G,el r~b \ Aobefl ~y.1I D .... dtaMo~ 

2515 M.ln 51 J4\ Chi!>pewo Poinl ~o d 355lO Nysr~oule HE 

V.""bu'll, NY U167 ~.mrn<lnd, NV 13&o~ Cap. V""e nt, I<IY lJ618 
1130 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1074

Do,othy 1. ."'n~1 P~ull.,1pin'kl ~te, Ulv;n 

'1/ Redmon ~o.d 411Redm"nRoo1d 3810 E~d;d Ave. 

l13m'in. NY 14464 Hlmfon, NY 1(464 Petry, NY 14510 

lh lavin Hatry LeviI>S Janel Ubrock 

3810 fudld Ave. 110.25 3036 RT. 98 

Perry. NY 1,4SlO Sp,inlfield Cente,. NY 1346-8 V.ry.butl. NY 14167 

Jo~n Ubrocl< Bloi",,\.iIiOC ~. y lilac 

3036 RT. 98 1961 S~ndl n Rd 1961 St.ndi", Rd 

VI .... ,b",s. NV 14167 Ani", . NY 14011 ~ltJa. NY 14011 

ROI T. "nbe'B l ynn lom. nlD Ron \.o,.,lnto 

8186 Gmock M. 1.152 5t.ndl.~ Rd liS. 5t.nd[.h d 

WIIlI.m,'; II~, NY 14UI A\tie., NY 14011 Attie. , NV 140)1 

"'n~. M.c.ollisret hl~ Maca ll l,'e, Tnom • • Moto lll"., 

6195 Ed""n Rd 6295 Ed""n ~o 6l9S (<bon Rd 

N.~ es. NV 145\1 NIP"', NY \4512 N'ple>, NY 1A512 

Undo M3hM PlOVI Mok",,, "-lIce Molicki 

.1419 ~'Oll ~old 24\9 ~'I>tl ~o.d lln Cenlet11"" ~d 

Wa, .. .." NY 14569 Wa.u..,. NY U569 V.""bu,,, NY 14167 

Rlcha'd M.Iic~, 5" .. " M.1l1an naey Mallon 

un C""'Mine Rd 8'18urraulh, Rd sn 8u"""ln, Rd 

Vory'Du", N~ H lli7 Anic.o, NY 14011 At~'&, N~ 14011 

n,o,., •• M.,t" Thom •• ~,h a.rb .. ~ M., ...... 

7004 WI/nina Circle 70Q.1 W.rnt~c Or"' .. 1757 CO<J~"" P.nUI" 6 

Oe,bV. NY Perby. NY lI.mmond. NY H646 

o" .. d Ma, .. .., cat_In L. M~fl ~ "" . Jim 'u, 

1757 CQunty ~oo\e 6 19 C!;tV 111:lSulf.loRd 

11 ..... mand. NY 13646 Malone, NY Varysbu,&. NY 14167 

G.rr~t! McQofl~y DaUlt" M<CI .. llan tank e MdJ .. ILan 

n995!ale Ruute 178 13658 B.""l,..., D'~ 13658 Bayvoew Dr~& 

l1~nde,"'", 'n iJ6SO 1I"""'""n., NY "M&,,,," .. ~y 

Pille [ 10 
1131 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1075

M~rk T. MlKun Ad. Menapo<e Frank pa,~ 

2535 l'Iumpnrey Rd 46 Scnnu" ROld 46 Schnu" ~o.d 

C.~"'ir>C~nl. NY 13618 Hammond, NY 136.46 ".",mand, N~ 11646 

C.rol Me,kle William M .... I. Curt ",;11., 

2729Glo , ~d l1l9Glo,M Z~OS Krol' ~O>ID 

Artiu, NY 14011 Allito,NY14011 Wa<>a .... NY 14~69 

Dillon Mille, l"iubl'tI1 Millt . Det>",.h "'U" 

1205 K'otl Road nos K",u ROHd Oak 1.I'nd 

W ... ~ ... , NY 14569 W . ....... NY 14569 l'Iammond. NY 1364' 

Pe'e' Mill. Ken Mock Ch.r1~M""h$ M.D 

Oa.,.land 2611 S'/Ie, Rd 35438 NYSH In 

O';.,p .... by, NY Varytbu,., NY 14)67 (.,ope Vln<em, NY 

Ca ll ...... Moultrup Michael MoUltrup 5t~nM""'I"'p 

2101 S •• ndl.h RO>Id UOI Siandi'h R""d 2101 S •• ndish ~oad 

IInkl, NY\.4011 11m .. , NY 14011 IIWto,NY14011 

lim Ne';" ,~r "'. ,.,. N"""",,, 1l11.nNe_il 

28301lt!i<a <ul., Rd . 28.10 Ilillto <en I., Rd . 170 New~U "".d 

Wa, .. ,." NY 14569 Wa ... w , NY 14569 H""''''OM. NY H6.41; 

lind' .... Nled",hause' !!en N"de,h,,,se ' Da" .. II. Nled..mause' 

7 Raven'woad 4861 1'elth.,d, Rd 7 Ra""n,wood 

Cl!eekto ... asa, NY 14125 HlmbufS. NY 14015 Ch.e~loW·S·. N~ 14nS 

p.,nrl. I~ def".u .. t Phl~p;p Nif!d.m~use' N.~<'V O,~ ... 

4482 C'~$I'ldg. 0""" 4482CrHlridg" D,,,," PO 80. 566 

l1.mllUrg . NY 140lS ~.mb"" NY I(On W.dd4ng!O~. NY l3694 

(/In'O'Con ..... ! Glenn O'Conno, LYM O·Con~.' 

61n~I 362 61 77 RI. 36l 6117 RI. 362 

lIji", NY 14014 BI"" NY 14014 811", NY 14024 

Niok O'Conne, £11..,011 Geo"" Off 

6177R'. 362 2681 Sri,", Rd 26815yl~. Rd 

lIji", NV 14024 .... ""bu'l. NV 10161 V.'Y'bu, •• NY lun 

POle I Jl 
1132 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1076

Nora O'(IIeIH Willl,m O'(IIelli Ik>b On 

Ull~' 20A 3906 w~ne, Rd 2641 ~,on ~d 

V>""bu,," NY 14161 Wa,,,,,,,. NY US69 Wa' ...... NY 14SW 

011110" Ct. Robe" P.ndl~. l eon p.pI!e 

2621 ~,o" Ra 50 He'M ~o.d 150 o..lloi< Road 

WffSllW • NY 14569 o.lppew. B;oy. NY 13613 .... m"'opel, NV 136<16 

~on"l~ P3P~~ G.", Pa"ISh Nancy p."I,n 

150 OUIloI, ~o.d PO Ilo. n PO 1;0. 21 

H ...... mond. N" U646 V'", ~lIne " VA 23887 ~. lenUn""" VA 13887 

M~ry Perry r.!;n. Pj~tpon' MD B"1<V Poch 

3?S2 Bufffio Rei 190.y 811 Iton..o.m ~O'd 

W. , .. W. r.!Y 14569 Moton., NY 1..0"""" .... NY 14%9 

&i.n Poch ROni id Poch "'rolyn pon 

allR'n,omRo,d 811 R.nsom Ro.d 2832 ~o<koo,"", RD 

I..onc .. ,e" NY 14S69 l.ona"e" NY 14!r69 Wa'""",,, NY 14SW 

Pete' Po;l O.rdy pou, liele n PremQ 

183lBI ... ~ou ... RD 111 R;",,'l«Ige Raid 1197 Syle, Rd, 

W., .. w, NY 14S69 H'"""OM. NY U6A6 V.""bU'" NY 14167 

Jim R.,b She,,1 R .. I> I;m R.fferty 

15n Buffalo Rd 352] Buff .... Rd 3388 Buff.lo Rd 

1I'p/.bu,g. NY 14167 ".""bu", NY 14167 W.no ... ,!'IY 14569 

]0 R.fforty (>onn, Ramsev Ge'ald Ram'ev 

338.8 Bull&1a ~d 1240 SI~t. ~ou . 238 2240 SIne ~<I<Ite 238 

~""w, NY 14S69 W~, ...... WI' 14SM W., .. ",. NY 14569 

Chri, Raot Sleven R • .., And,el R.bec~ 

3800 Rt 2OA. 3300 Rt 20A 4651 0.. Or<~ rd Road 

W.'n .... NY 14569 W.n."". NY 14569 Albian, NY 

R"".ld R><hum~l .. Fred ... ick A, Robinson P.ul M. Robin""n 

4126 F.irvlew Rd. )11 ftiY<!.ll!'dle Rood In R;""'l ~g. Rood 

",,,110, NY 14427 H.mmoM. NV 13&o~ H. mmond, NY 131>16 

P' le I 12 
1133 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1077

Chr ltfRoh,u~f j'm Roh u~r RoO Road 

1816 M ... ~1e Ra 2826 Merk .. Rd 44~7U_t'lSI 

Anica.NV14011 Anlca. NV 14011 Wa ... w, "" 14~69 

Rulh,n"" Rood GuV R ....... b .. k~' Uto o, nb. ~ ... 

44g7 Uberty SI 1761 Countv Roy,,, 6 1761 ("" nlv Aout~ 6 

Warsow. Nv 14569 H.mmo"d, NV 13646 H."''''opd, NV 13601 6 

Gerald S.",I ~ m~ . Sa~rie V.llry San" . 

U18 MV .... Ro.d 618l Chamberl.ln Road 7438 Myo .. Roa d 

p..,,,,. NV 14530 5il .. , Spring', NY 145SO Per"" NY 14530 

Ge ... ld Sa"~~ II Cynthl> U. SaI •• If, '-'" Sari'''' 618Z C/lamberloin Ro.d 139 Thi"fedow" Drl.e 5 fo'eu..,n lane 

Srlv.r Spnng. , NV 145SO Aorj,"'ter, NY .... mmond,NY1.6oI6 

MIct. •• 1 Sa.' ie Jon See D.vfd \.thoefer 

P,O .. Bo, In 5 VineSt. nl' C .... n"" Rout. 6 

Ham'"<>r>d, IoIY 13646 Bat.via, NY 14020 .... mmond, NY BGoI6 

!len Schell Oiffo,d P. St/one~r ie"ny$f,,,,,, 

5 Vine St. 1560 Vi"",nt St'eet 117S1 Blatt Lock RoD<! 

~tavla. NY U020 Do. vl" , enl. NY ilL IS N.ol~'. NY 145 12 

100nG. s"rvo k>nn~. So"", StelleI' Sha'man 

11752 Blark lock o.a 1 tJ!I() Blade lO<k ~O'd lOO7lle,mltale Rd 

Nap l ... NY 14S11 Nople~, NY 14sn W~ ... w, NY 14569 

C!>e"/1 ~i"'ean. c..ol A. Slmp..,n A!nIe SliWinski 

8696Stat~ 1.12E 1023 ~,o n Point ~oad 66 C!>e,n .. t St. 

Th, .... Mile Bav. NY Hli9l C;ipe Vin""nt. NY 1l61B Sprlngville , NY 14141 

oa .. d Sliwin.kl Ed Sliwln,ki Jo"nW.rSiiwin,1<l 

66 Clre,nu' St. I0820Ailen Rood t08W AH ... Rood 

5QfI"gvllle, NY 141A 1 E •• t Cor><erd, NY 14055 Ea" Concord, NY I~05S 

M. n Je 5Yw,,,,kl Sue 51i,.1"._1 lori !>Io","'.kl 

UI6Z0 AI",n Rood 10820A ",n o.d 2018 f' ena. Ro;od 

E." Con<o,d, IIV \4055 Eo" Con,ord, IIV 0S~ V.,,,,bu'I, NY lU!? 
1134 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1078

Roch.rd Slowl~.kl Preston Smith R,th.rd A.Smlth 

2013 flfneh Rood 6808 S. "'lie'e't D •. 3684 "utherwood DtlY<' 

"' ....... b"'f.,Ny 14167 Co.tol~. NY 144n ... ",burt. NY 14015 

~.'e" Splo,ofhoH ~e.in Sp;.I~lho!f S.ook. Star!< 

7tI P.I"'~ IW~nu~ 70 P'I"'~' fw&noe 20 ~d Oak Point Ro.d 

Kenmo'e, NY 14117 ~e"mOf., NY I'll/ ".",mond, NY 136<16 

HenrySt .... Jane,S'''tk Cath"l" 5t~ven..," 

11] al"'O" 51 113 (linton St 21751. I..o .... "no ~"" , 

Ho", ..... N~ 13017 Ho",o,. NY BOH ".mmond, NY 13646 

Paul J. 5too< {)O,lon" Stt tel. )on"lfe. Te" ft. •. " 

1845 ClInton Street 17 6~Kt"" coun C .... rwood lone 

allff,lo, NY 14206 Woten",,!, NY 12185 .. end ... ,m Ho.bo<, NY 136~1 

Judy Tubollno R.dt Turner 5htrtey Turner 

19o14 Tuboll"" Ro~d 3242 Royce Rd 3141 Rcv<e lid 

llfa'I ... lle. NY 136S~ ", • ..,..bura. NY 14167 ,.. • ..,..bu ... NY 14161 

Robert Unlit Ruth Uhli, Pot"e" A. "'. ndorM.hie 

Z76S8 DlbIo" Pcint 27658 OObK," Pol"t 6 Phillips ... "" 

C,pe Vi"".,,\, NY 13618 CoP. Vln<.M, NY llbl8 ".",maM. N~ H&46 

P.lly V.np.non Jer"",. We'ner K1mbe.,~ f . While 

PO 80.61 J271 Rllo.o 3601 Crum'~ Roul~ ~ 

Wad<li",ion. NY 13694 V ....... bUfl. NY 14167 H.mmond, NV 13&46 

Rol>t"Whi'~ Slephen R. Wh1'~ Tom Wh;'e.ell 

2H8NesbFtt~d 3601 Cou~\y Ilc~\e 6 n Plu ... "t51. 

W.""w. NY 14569 l"Ionvnond. NY 13646 I'<>lOIi.m. NY 13616 

EdwardW;'dl M.dll. Wiedl ~r ~ Wiley 

S092 '-<>we' Court Rd S092 \DWI!t Coun Rd 168 Wiley Plr>. D. 

H.",OU'I , NY 1(075 l"I.mbufl, NY 14075 Clt~ "'"1C. "~ NY 

Rle~.n:l W1lry Ny,", Wlllri"$On Ted Wrl~lrrn>" 

168 W~ey Pa'" O. 2915 Ollng .... il'" Ce nter Rd. 291S 0 •• """,111. Ce"'e' Rd, 

C~p~ VI""e"\' NY .~.w. NV 1~569 W ....... NY 14569 

Page I H 
1135 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1079

JaneWHHam. Doniel "'. """nl)'. o..,d ""'o~llIin, 

3lon~" w 0<;"" 139 Ikjotiedow!1 Of;". 5168 lake S!1o,~ ~~ 

Q,frM P"~.NV RO<~f!."~f. NY fl.",bu,," NY 14015 

$u.~n Wood Connie won",." ",.,ntl Vouni 

&l5ou1n Wood. ROM 217 SI. Llw,"""e "ve. S6 '' ~ 11 

Ma'Y'mond, NY 1J&l6 Hommond, Nr 13&l6 M,"''''ond. NY 13&l6 

Palfl<la YounA Jan],. ZlmPDgtlO JOlepn M. hmpog'" M.D. 

5&lSH n 1075 Nesbitt Rd . 9501 ViII'ge Mill ~e 

Hammond. NY U646 Ofan,eo1l1e, NV "011 C~,efICeal. . NY 14031 

F .. n~ eec~ lulle be,k Mlch •• IJ,I!e<. 

3917 8ull.lo Rd. 1119 ~'ou Rd. 1129 ~'ou Rd. 

W. , .. w, NV 14569 W., .. w, NY 14569 W." .... , NY '4569 

Poge I l5 
1136 

Statement of Various Citizens of Ohio 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1080

U.S. Hous e of Represent<Jtlve s 

Committee o n W<JYs i nd Me an. 

Subcommittee on Sele<t Revenue Meis ures 

April 26, 2012 _ Hearln, on Certain hplrln, TiX Provision. 

Comments Submitted for the Record 

ihe unden'lned res,dents and property owners 01 th e Stateol Ohio respecUully submit the.e 

GommentS i~ response to the April 26. 2012 He~rlng on Ce rtain hplring Ta~ P.OIIision~. Ou, 

comments are limited to the P.oductlon Tax Cr!!<lit (PiC) 10. wind energy. 

E.ecut ive Summary: Th e PTe ... often c.edlted for most of the Krowth in the wl~d sector but 

attributing ma.ket actrvity to the ,ubsidy i. overly slmpll>tk and fail' to con.ider oth", crucial 

faCIO" d'lvlng development. When evaluat ed agaln't key economic and e,,"";ron,nent ctite " a. the 

cos. Gf tile subSidy h3. proven ,,""US Iv .. and the benefits.o Americ~n t~~payers minimal, If the PTC 

were to e~pl.e. the economks 01 tile Indu>try woUld .hift to Slates With renewable mandate •. 

Power mar~et. will u ltimately confront the re31 coot of wind en"rgy. and price it acco.dlnHly. The 

overall ,mpact on the indultry would I>e far less sever" t llan Pfoponent< claim'. 

Supportlnl Statemenll: 

HIIII Cost, Slnce adopled In 1991. III .. eo,1 of Ihe PTe lor .... Ind enersy ha, balloone" from $5 

mlllion!vea. In 1998 to $1.5 bilhon annuaUy 10day. The open.en""" sub,ldy 01 J.2t/kWh in aft .. r-Ia. 

incom~ rep.~.enh a pre· ~~ value of approximately 3.7C/kWh. In m~"y 'e"lon. of the count"! the 

PTe now equals. 0. Is Kfeater than. I~e wholesale price of power. Even if .he PTe we.e 10sun ... I, 

laxpay .. " aff' nlll obllgal .. d 10 cover n .. a.1y $10 blll!on In 13. c.edll, for wInd p,oJects buil! In th e 

la.1 dec~de. Thi.l. in additlon to Ihe $15 billion deb! for wind project. eligibl" under Section 1603 

Uncludlng antlclp.l1ed 1012 ".ants). 

In efficient: Since tile PTe I, uniform acrosslhe counl"! it i. hl&hly ln ~fflc ent, .upponlng poorly 

slled developm .. n! In .om .. a ... a. while In otll ... ar ea. ,upporting project. that would Mv .. b .. e" 

buill rega.dl .... of Ihf/ credit. This i< IfIle in T,, "a. and thf/ PaclOc Northwe,t wh"r" wind capacity 

.. ~~"eds tratlSmiSSlon up"city and wind IS curtail .. d' . I~ New Eniliand Ihe PTC li~ely pay. rno.e 

sub,Idy than 1. neces. ary owing to "",.esoive Slate man dales, Utilities in New England routinely 

.1sn lonl·le.m pow ... contracts for Wind ~t price, .ignlficanlly abov .. ma.k .. t. 

OIhe. factor. a dvanclnl wind development: The Indu.lry Insl,ts il', 3t rl.k of a .k>w·down wilhoul 

the PTC, Thi. view Ignofl'$ olh .. rcru".l laclo", d'lvlng d"velopm"nl lncludlng <tale mMdat .. and 

natural ga, price •. IIi, nOI pos,iM" "~y n -;lVail~ble data 10 id"ntilv . he .. ~tent.o which the PTC has 

contribUled 10 growth In Ihe s .. ,to..-'. In fact . demand for wind has .. ,oded recently du ... In part. 10 

, u"" ..... 0, .• 1. 2011 C.",., .. oIo~11 '.""""ny ~"p:lf"-ionc<!,IIou"'.I""/hu',"" ... b<o"'''''''''''~'''''''fi&~uo~·.r ", · 

~·,uba>mrnn'H""""fI;V·.r<I~0'Ii">'''''.n' ''<2_j )c>i<>I·''''rI .. 

, WI> .... nd BoI'"I ..... 2010 WIod rr<l>r>O'<><;Iin Marnr 1/""",. (lOll) tIIi h"pJf •• ,d,lbt,lo.f<.I"n"' .... ~"U"'~ 

482000.pd( 

, Joon. CC"''''It~~ O~ , ..... "". ""...." I~" ""'" ""<~gro""" ~"a,,,,g TO r"" '...,i" Far £1«.*; •• >'fOd",,/oI> From ~""" .... I>I. 5<><P<" (2005) J. M,pS,II_S<t.IO.,,,,,t>Q,K,.,,h,,",1!u,,,,. ,w,,,,, .. n.rd'\S79 

P3S" t 1 
1137 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1081

$,~t('. meeting their renewable. mandate., lowtor natural gas prices ful1het redu<:ed wind' • 

• !trae!iven"", a. It 'Iuel ~ver'. The EIA now 0rec~Sh fl~t growth In the w'nd 'O:CIO' for Ih" dec~de 

.egardless 01 what happens with the PTe'. 

Job lo .. es: ne..p~e billion. in public l undinll tl'>e wind 5ec to' uped" nced ~ net 10 ... 01 10.000 dl.ect 

and Indirect Job. in 2010 b,jnslng the !o", to 75J)OO' Job •. Most or Ihe remaIning Job. are 

tempo.ary con."uction positions requlrlnll peak 1.",.,,1, 01 del/e lopment year-afte'-y<e~' to maintain 

current le~els_ Attempts to a ttribute Job creation to the Plemust be lempe.l!<I wnh co.respondlng 

Job losse, due to hlshe ' renewable ,me'gv price •. The State 01 Vern,onl found th~t adding jv" 50 

MW. of ... newable energy at hish .. r-Ihan -ma.kel el""IrJelly prkO'. "had the delele .iou, el/ .. ct, of 

,e<hulfllng ,onsume, .PMlllne and Increa!lng the CO" of produe"on fo, Vermonl bu.ln .. " .. , "." La" 

yea ' •• v ... 1 electric r.'epaven in Minne'O' a paid more ,h~n $70 million In ~bove·ma'kf!t energy 

prke. due '0 the high "0., 01 wind '. 

E'lV ronm~nlal be nefits: Wind energy is an unp,edlct~ble, I/~ri~ble reSource Ihat tannat be relied 

on 10 serve load. II> primary benefit I. In reducing U.S. electllc carbon .. mi .. ion,·. Accord,ni Ihe 

Na"lgan''. ~ lour VU' ""'en.lon 0' the PTe could avoid an Incremental 170 million loni 01 CO2. Thi, 

'''''-<I ca.e ' ~,imale r.. nO! predic"'e>d on an actual wor~ing grid 'eglon. but II we accep' NalligaMI'~ 

e'limale the «>$I 10 tupavenl. a t lea>l $23/ton C02'. len·times the $1 .92/ton market p,ice 10. 

oflseu in Ihe Northea"ern ,tale. partklpatlni In IIGGI) The PTe i. a high-priced I/ehlcle lor very 

qu","oMble reductions of C02 eml«lon •. 

Conclu.lon , The ~ev question I. w~e'h , the benelit< oll~e PTC lor wind a.e wonh the co ... TI'>I. 

10'vear old . ubsidV is expenSIve. IneffiCient. has failed ,0 produce net·job Increase. that a'e 

$u.t ain"ble. and ,he cos' applied per ton 01 (02 I, mOre lIlan 10~ th .. mar~el pMce 0' carbo" under 

RGGI. The U.S. power m",~et has undergone significant ch~nge since Ihe PTe was ~dopted, 

including deregula tion. It is nOt po .. lb!e to i,olale Ihe ~tent 10 which the PTe contribules to wind 

.ecto, growlh'·. Without the PTC, p.ojl'C! economics w""ld hlft loslat". With RPS polkie •. The 

value of renewable credit. mlllht n.e in re,pons~ but powe, mar~el$ will ultimatelv eo n/,onl In ... 

,eal co., 01 w,nd energy, and prke il aceordinglV . 

• w ... , . "" a"""' .... . No'., Nd "' d~~"d.o' ~d, U e"-" 10 «,of-,,,, jOf) '-"""'" Wl<~'" "",,. i<>b I" I"" "'id1y 

~<I'" my" ",,","lbute 10 nu~ •• ~ 11,,, """ 01 r _f\<Iry. 11>1. ' ''' .. ~ • •• """",,1<: ~-"""u"' •. 

• 'it OPS. ,,,., £,,,",,,,,1< ,,,,,,,,,,, of V",."", 'Nd ,n rorlff. (2009) 12 

h"P:/lP".'i<.erv;"'. ''''''''I .• o'''o!I"";"IIfO''5'''1OWh~.''lOP P«%20f_lo;n''10T;>,," ,,,,' 

' W. II 51f .. , _ m .1 GO<I~ by,,,., WlI>d ( .... ~ 2011 ) 

h" ... lIdnll"~ 'J.",,,,! ... i<I ~/S8LOOOL41WSn02'103S914().lS173MZ4aoo6"J91"20.M,,, 11"""' •• _~.~w.j 

N'~I'''' pr~. '"' _.~..., ""'" It "'t.',"l"~ of, .. " . S'..nIy . """' .. so",. wind 0uiIt wi",,,", In. "'" """ 0"",, 

""'~ O<! .t m<",,,, ... t~1 .. " . ';\ """ ... ~.'" (1Il\l· 16). 1 .... c" .. "'" "II .. , 10 t>OI~",I.11y hill .... ' ",on SUI,,,,,. 
1138 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1082

Submitted by: 

JUII3 'f . Jol)nson 

P.O, 80. 230 

4891 (ai' US HW'/16 

U,b.ona, 01'110 43078 

h!!!. .. j9:1>~'O~@.< <~ ,()~ t 

(9371653-8355 

Dat .. . ubmlll .. d , Ma,/ 10, 201l 

Supplemental She .. , 

Comment~ .ubmined on behalf of the following re"d"M. and propeny owne'~ 0; tn e Siale ofonio. 

Georg .. Arnold Betty O'\eve' TM'''' OOMa, 

3020 Da1<t " ..... noo ~~90 SwW\e. ROM 433 Me ",d .. m, Ro..., 

Columbu$. 01110 ~209 Umana. 0 " 10 43078 Cab"'. ~",~:J009 

V.""'oaArnOl(l J" ....... l Ban"'l! MaryS_I 3020 0 , 1 .. A" ..... noe 60« E U5 Highway 36 5368"""10 51 Columb,,5, O"I~ 4~ Cabl ... OH 4lOO9 U,ban' Ohio 43078 

Sheklon Tell M ila K Banletl6044 Ma.y Jo I;'a ... lk> 

27 5es~1 Dnve E US l-I'Ilhwa y 36 2469 S PatIO"""" Rd 8eocley, Ohio 43209 Cable, OH 43009 M"""aniclll>utg. Ohio 430« 

Rebecca Taft G .. nd a R<>drig ...... Sl<!va Par,",,'" 27 Se.........,1 0._ 6047 E US HOijllWay 36 2469 S PatlOlIiew Rd. Eltillty, O~k> 43209 Cab .. , OH 43009 Io'eohanocsbu'll, Oh;" 4304-4 

5uL11n C M .. II'r>g 5am",,1 RodrigU8Z Joy", Thema 2610 Cha rlng R~ 6041 E US HighWay 36 8<18 N ludloW Rd . Calu brJ~ , OH 43221 Cable, OH 4lOO9 U,bana 01-1 43078 

Io'arkMa-de' Bel""ny BtoYI'~ Bru"" R TOOma 4580 Be nson Rd. 7451 E. US I-Iwy. 36 8<18 N. l..-llow Ril. Urt>ana , OH 43078 Cab .. , 01"110, 4300II Umana 0 1-143078 

Huer,.r Mader """'$ Brown DOIlQ Braden 4580 Benson Rd. 7451 E. US 1-IW\f. lti 539 CambMan Road Urbana. OH 43078 CIM>" OhIO ~lOO9 Call .... OH 43009 

loU'S Orie ..... r 0""'11 DoIl"er A'2a l" Harpeo.t 4490 Swisher Road 3J McAaamr; Road M62 Oal1mOOr Roan 

Urnana, OtIrD ~3078 Cab .. , O~io 43009 Grove Cily. 011'0 4 31 23-3331 

Pag~ 1 J 
1139 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1083

Scon Delong 

9343 Bean Road 

M"ChllnlC$bUrll. OhIO '13044 

Abiga~ DeL""!! 

11343 Sean Road 

Meeh,mK:sburll. Ohio 43044 

Way .... Taylo! 

1277 Yocom Roao 

Cab",. OH '13009 

Marda l;oylo! 

1277 Yocom RO(>(1 

Cab"'. OH 43009 

Robert B. Me Con"",W 

4saO E, 51. HWY J6 

Urbane Ohio 43078 

018n. Me Conne~ 

'1880 E. 5 1. HW)I J6 

Urtlana Ohio '13078 

JUk. Cool< 

1511 E. 51 RT 296 

Urlla"" 0 111043078 

R3Y PaO'QjIll 

3447 Rod<poinle COIIrl 

Co~ Oil '13221 

Sandra p,.",11o 

3447 RocIcpolnl .. Courl 

Colo Oil 43.221 

Stephen Parello 

3447 RocI<pcir1le CII<I" 

Cois Oh 43221 

Helen McKen.>je 

1331 U,S Hwy 36 East 

Cab"', Ohio 43009 

8.1 McI(IIhZ;" 

7337 U.S Hwy 38 EMt 

Cable. Ohoo 43009 

Wilham O. Coon.r 

1081 Cambrian ROMd 

Cab",. 0"., 43009 

DwigIU Olie<.'ar 

818 So 8;,d Rd 

Sprlnllfield Ohio 45505 

Ton)'ll o ne..,r 

8111 So. Si'" Rd. 

Springfotlld. Ohoo .5505 

Oavid Perd~a 

2171 S. Par~,"ewRd 

MecI1~nlcsburll Oh 43044 

Ma'ilytl P,,,,h,e 

2171 S. ParkYIeW Ro 

Mechanlcsbu'll Oh 43Qo1.o1 

Robot" II&h1inll 

'1730 E- County Une Ro"" 

Springfield, Ohio 45502 

Barb.r.lI&hllny 

4130 E. County U"" Road 

SPflngr",1d Ohio 45502 

Anlla Segretl 

6343 Posgah Roa<I 

MechanicslI"'lI. OhIO '13044 

Fran~ Seg''''; 

6343 Pitgah Road 

Ml'ChamCSbu'll, Ohio 'I30H 

Shannon Harpest 

2662 Oartmoor Road 

Gio,e CI , OH 43123 

Nancy Con"a. loa, Camb,]an Rd 

Cab"" Ohio '13009 

Ja"" 0 '1011"lIs 

7"55 Eaal US Hwy 36 

Cable, OhIO "3009 

B. Elal/>e Youn:gs 

7 455 East LIS Hwy 36 

Cable, 0"" ot:JQ09 

Mlc!\a"t And",",," RUCl«rI 

4 4 19 Fta1!oot Road 

C.b .... Oll io 43009 

Janel Ma le~ 8 Ru""e, 

" 4 19 Ftalfoot Raad 

CabMI . Ohio "3009 

Roge, Ha"erman 

2."95 Soolh lU<lJo'" R~ 

Ut1Iana, OH "3078 

Kim Hatlen,.,,,n 

2495 SOOth ludlow Rd 

U'b . ..... Of.! 430711 

Sandra Pen y! 

2876 S! RI 5<1 

Urbana, Ollio 430711 

Ga,~ P .... syl 

2678 SI I'll 5'1 

Utllana, OhIO 43078 

Marc Sladle, 

2089 N Slate Route 560 

Urban", Of.! 43018 

Sllar~ S,ad",. 

2089 N. Stale Route 560 

Urbane, OH "3078 

G<eyg Ma"'" 820 Ca mbrian Rd 

Cab,,", 011 "3009 

Cynltlia rehan Marsh 

620 Ca,nbllon Rd 

Cabill. 011 43009 

JMnH~1\JI 

939 Old farm Road 

U,bana, 01\111 43078 

Anna Hahn 

939 Old Fa,m R<HId 

U,bana. Ohkl '13078 

Jom ~ewe 

7511 E. U S HlgllWlly J6 

C3b1e. OH '13009 

Je",,) !..ewe 7511 E_ U.S , Hig!lWay 36 

C3b1G. OH '13009 

Ba'f)'LCa ~1 

3011 S Par1r,,",w Rd 

MeCl>IInlcs.bu'Q. OIl '130« 

Jackl '" Call.,.,.,! 3011 S Par1r,ie", Rd 

MaCl>anicsbu'll, Oh 43044 

Am~ R Ropp 

3077 S PafW.e", RCI 

MachanlcsllulQ. 011 43044 
1140 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1084

~cII;e'lZfe L Callicoat 

3017 S Pa,k"iew Rd 

~t'Ch,nQburg. Oh '1304'1 

Joyoe G"Wlr 

JIln S Pa,~" .. w Rd 

~ .. Chanicsl>~,g, Oh '1 304'1 

James R. Cnilt 

177 ~cAaam5 Roa<! 

Cable . OH '13009 

All\OIIrE Cole 

177 ~cAd R1$ Ro»<! 

Cable . OH '13009 

Larry Peace 

'166 Gamb,fan Road 

Cable. Ohio '13009-96'17 

I .... n. Pea08 

'186 C.mt>rlan Road 

C.ble. OhKl 43OO9-96'17 

ucnary Teets 

<166 Camb'''n Road 

Cable Oh~ 3009~7 

Dea " Mo,,,,, 

B624 Co Rd 11153 

Enl Ul>eny. onoo 43319 

HolPy Whltake, 

8624 Co. Rd. ' 153 

Ea. .. Libeny. Ohio "3319 

LirJda Go,""'" Slale Roule 16 1 

~"""anlalbufg, Ohio " 300M 

La"y GoIdon 

Slale Rl>llie 161 

M"""anl<:!lhu'g, onoo " 30U 

Donn, Richaods 

18119 Old T,oy Pi~ .. 

Urbana OH ,,3079 

NaflC)l L . Friel<. 

3657 Slng~ Wind Way 

Urbana. OH 43076 

Pele, Cheetllam 

3465 Stone Quaff'll Road 

Urtrana. OH 43078 

EI .... belh Ch""mam 

3485 Stone O ... rry Road 

U,ban •• OM 4J078 

~afifyn S Poe 

3314 SI ...... Cuarf\' Rd 

Urbana. Onio "J076 

Ra""aliS P oe 

3314 Stone Ouart)' Rd 

U,~ana. onlo '13078 

Marl! A aak .. , 

7320 Long Po"" Rd 

Cable. Ohio "3009 

Jaime M. Baker 

7320 Long Pond Rd 

Cable. Ohio 43009 

John E, Woodruff 

89 U"P<flcott Rd Urborna. OH 43018 

1\,... Shroy. r 

lBO, Ens Road 

U,hana Ohio 4307B 

J.a '5hro~ 

lBOl ~ Road 

U' bana Ohio "3078 

loft Forrest 

831'1 Lonll Pond Rd . 

Mechan,csburg, OH 430« 

lIe'lh FOfleol 

B374 Long Pond Rd . 

~eCl1'n'~bu'g . OM 43044 

~nFo"eSl 

1592 S Slate ROYle 559 

WOOd ll""k. OH 4308~ 

LVnne Fe""t 

1592 S S,.,e Roo ... SS9 

Wood.tock. OH 430&4 

Ga~ Balley 

75(16 Hunl C!~me, Rd. 

~"""""""burg. all 43044 

SlIeila Ba le~ 

7506 Hunt CPyma, Rd. 

MecI1amc"btJrg. OM 430« 

Eliz;obo\h KtlCl ... a 

5280 Rush A .... . 

Columf>ua. OH '132 14 

Amanda M. Slanton 

J6 Nonh ~a'n StreeT 

~"chan;csl>oJ,g, OIl., ~3044 

Sleve" S BI,nlo" 

36 Noolh ~ain Slteet 

M<lchanic&llUfg. OhIO "304" Lindl ~illtIr 

3409 Stone QuarT)' R(I 

Urb",",. OM 43078 

Dan MiDe. 

3409 5 10fT. Qllarl)' Rd 

Ufbana. OH 4307B 

Joy J Moh, 

7258 Sell"", Heu'$e R09d 

Cable. 011.0 43009-9836 

Jeh" R. ~Ohf 

12M! School MOUN Road 

Cable, Olloo 43()()9.\1636 

S. IIdy ~cOavir:t 

4683 Easl US Mwy 36 

U,ban,. OM "3078 

B.ad McOovid 

4B83 Easl US Milly 30 

U,bana. OM 43078 

John R G'ewdon JR 3387 ·Stone Cuart)' Rd 

U,ba na Oh\o 4 307B 

i(""be<1)' A G.OWd,," 

3381 Stone Quarf\' Rn 

U,bana Ohle 43018 

David C .. "'" 8970 Long Pond Rd 

Cable. OM 43009 

TIlerH .. Carler 

6970 Long Pond Rd 

Cable. OM 43009 

Robe!I L, /\dams 

8050 'Mnnebage Street 

Grove C~~ OH 43123 

Page I 50 
1141 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1085

Ptl~~(s '" Adams 6050 WInnebago S!J e! 

G,o'e Crty OH 4312.3 

O~W S"lmonowicz 

8036 County Road 28 

bnesflekl. OH 43360 

Jean Salmon,"""", 

B036 Counly Road 26 

Zanesfield, OH 43360 

Allio.on \P'\Iy;~1 

3307 Sl(on" Quarry ,d 

Urban., Oh., 43078 

T""'mY VVy9al 3307 StOf'e Cluarry rd. 

Urbana, Oh., 43018 

Adam Ca"""ue 

32 Maple 51, 

London, OH 43140 

Suzann. GanllOn 

253 f'ar~way 81w. 

Ur!> .. "a. Ohio 43078 

UlIl18 GlOMOf' 

253 f'a,~way Blvd 

U,!>a"a, 011 43078 

Lotalne SenUlei 

2439 Van SultOn Ave 

Sp~n9fiekl . 011 45504 

James S<;hu ..... 

2439 V .. " B~'e" AVE 

sp""IIr .. ", OH. 45504 

Joyce Snk!e. 

3674 abbtly lane 

M&ehanl<:!lbuI9, OhIO 4JOot4 

Rk:h8,d Sn_ 

3874 abl>8y lane 

Mechan1cst>urg. OhiO 43044 

J ..... ph Ganr>Oll 

2!>3 "a_.y Blvd 

U1I>8na. 011 4307B 

WaHla", A!ctHOOI1 

943 E. Lawn A~~. Unil30 

U<t>ana , OH 43078 

Hrolen Atchison 

943 E. Lawn A ...... Unit 30 

Urba"a, 0 11 43078 

~ Amell 

lOOO7WS, RI29 

RORW<><><i, OH 43070 

BOOby Haw~in5 

10907W, 5T Rt 29 

Rosewood. OH43070 

511. AmeU 

10907 W. S~ RI. 29 

Rosewood, OH 43070 

Lilli Ann Johnso" 

4070 Pratl'" Rd 

Ur!>a"a, Oh 43078 

Slr!IlNen BranaebelfY 

1305 I(,ngsgale Rd 

5pnngfMIki. OH 45503 

1(1I&1en N eran<lf!t>eny 

1305 !(r"O'O • • e Rd 

SpnngfMItd, 011 45503 

AmbeTSW .. ;.,. 

815 Amhurs, Dr. 

UIb~na, OH 43078 

Ryan Swaim 

875 Amnurs' 0, 

Uroana. OH 43078 

Ga, ... l-1ull 

1043 Carnll""" Rd 

~b"' , 01143009 

Sandy 1-1,,11 

1043 Cambrian Rd 

Cable , 01) 43009 

OjAnne[)ou 

451 Sdoio 5 1. 

Urbana, 01-1 43078 

Roy Don 

'51 ScioIOSI. 

Urbana, 01-1 43078 

UII; Vita;" 

49440 Ben""" R~d 

1J,""na" 01-l43078 

Anthony N. V"ale 

4940 Benson Roa" 

Urb.nll_ 0 1-1 43078 

In"'n I\; Haili!lman 

2657 S ludlow Ra 

Urb" na, On 43078 

Baile'llh R Halle'man 

2657 S LUdlow Rd 

U,b~Ma . Oh 43078 

""'~ Ca~ Boo .... " 9661 s rale Roula 181 

Mec/1 .. ~icsbufll . OH .3044 

Vidly L~nn Bou""n 

96Bl S,a!~ Route 161 

Mechanicsburg. OH .3044 

B,ma ny L 8rennftf!"llln 

lW I W. 5 1. R.,29 "pI. O~ 

Urba"a. Ohio 43018 

J Th"",,",, R'11t)' 

12« Jac~ nn HOI RrI. 

U,Dana. 01-1 43078 

O_RI"'y 

12 .... Jac~so" H~ I RrI, 

U'Dana, OH 43078 

Todd Sims 

1636 JacUon HIIj Rd. 

Ura' ''a. 01-1 43078 

Un"" Sims 

'636 Jag,son Hj~ Ru 

Urbana . OH 43078 

Lllan"" R~en"", 

23115 Jacl<aon Hja< Ra 

U,bana , OH 43076 

O;weR!Q" .... U1 

2365 Jack.son HI~ Rd. 

Urb"" ... 01-1 43078 

!te,,,n Forrest 

2090 Twp. Rd UIO E 

Belleklnta,oe. OH 4331 1 

PIIgQ)' Fof'I'Ml 

2090Twp. R<I 'OOE 

Bellelonlaln ... OH 4331 1 

Page I 6 
1142 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1086

Kun FOffMt 

61~5~ge FoxO" 

Galloway. OH 19 

Kal .. Forrul 6145 Gt!o<ge Fo. 0,. 

Ga lowa . OH ~J119 

Denis GltCfg!" Gja'lna,is 

2575 HeaIMe' Downs 0. 

Springfiekl Onio 45502-

Georgia Qlanna,r. 

2!>75 He.ln .... Dowf" Or 

Sp,1<Igr",1d Otlia <15502 

Sylv •• lel C. Ou re~ 

3958 Sw<sh .... Rd 

Urbana, on;" <13078 

Non" ... J. Duffey 

3959 Swt$her Rd 

Urbana, Onio 43018 

Amy EHarr", 

2837 snon Cut Road 

Umana Ohio 43078 

RiCh",d J Harrls 

2837 snon CUI Road 

UI~na Ohi<> 4301~ 

Holly E Ha"", 2837 ShOll Cui ROad 

Urba"" Oh~ 43078 

Lee.J Harris 4315 E Slate RT. 296 

UIDa"a. Ohio 43078 

Beln Metherd 

327 W E!f<la<!way AIlI,] 

Ur~aha , Ohio 430]8 

Susan Lor~1\9 

838 E. Court SI 

UtI!Iana, onio 113078 

K""t M~1e< 

641 WnhOnglCn Av"-

UtI!Iana, Ohio 43078 

Usa Fetl/!'< 

820 S Ludlow 

Urt>ana, OhTo 43018 

Bill Brenneman 

3409 Ad .. 11 OrtYa 

Urbana. On", 43078 

Carmen B,enneman 

3409 AUell Orive 

Urbiona, Ohio 43018 

Eric Reinhard Sam, .. lsan 

460 Scioto SI 

Umana, Ohio 43018 

Cynlh;' JDhr\&Ol'l Sarrru" Jt.O ~ 

460 Scioto SI 

Urbana, Ohler 43078 

Magdalen Lore nz Samuelsort 

460 Scioto 51 

Urbana, Ohler 43078 

Oem.1d Anders SamuelAon II 

480 Scioto 51 

Urban., 01'1., 43078 

HZabeln JaM Sam .... I""'n 460 Scioto SI 

U'bana Ohio 43078 

E/le Rel nha'd Samoot..on J' 

460 Scioto SI 

Ur~ana, O~IO 43078 

MIlIlen .. ~ Champ 

4868 E US HI\jhway 36 

Urbana , OH 43078 

Luan~e Ridirngy, 

2385 Jacl\son HI~ Rd. 

Urbana, Ohio 43018 

Oavirl RidO!nou. 

2385 JaCllson Hili Rd. 

U'b~na . Ohio "3078 

NJlh" .... el Rldenou, 

2385 Jacu"" HiH Rd 

Urbana, Ohio 43078 

Tetry RiMpnouse 

1906 N. LudloWRd 

U,ban • • 0tl 43078 

Phyll<s Rittnnhouae 

1906 N. Ludlow Rd 

U,blln •. Oh 43078 

Jame. Boles 

11578 North Ludlow Road 

CalM, Oh", 43OO!1 

GeorglBnna Solei 

8578 Nonh LudlOW Road 

Cable, Oh", 43009 

C' ",lsea So ..... 

8578 North LudlOW Roar:! 

Cable. OMo4JOI)9 

Mary Fiaunce 

5518 NO<1I1ludlOW Road 

CJble, Ohio 4J009 

B",nd .. n Moo, .. 

201 WO!OI Wale, Sirnel 

U,bana. Oh., 43078 

Lau,," Moo,e 

201 Well Wah!r 51_, 

Urbana. 01'1'" 43078 

James B. McCo~ 

4273 Hu",l Rd 

U'Dana OH 43018 

SUU Me L. Mr:COjI 

4273 Hu",' Rd 

U!~:i,"a OH 43078 

Jonn B'~I 

!>(I27 Pra,,,. Rd 

Sp"nglieid Ohio 45502 

Tara Cnsl 

5621 p ,,.,,ie Rd 

Spr"Igroek! Ohio " 5502 

Truman JOII"Son 

767 Slale Route!r04 

Urbana, 01'1" 43078 

1(8le. JoMoQt1 

787 Slale Reule!r04 

Urbana, Ohio, 43076 

I\eb<!cca Blanton 

211\ E. St. Rte296 

1.J<tranlJ. OH 4)()78 

Marl< Sctnnirll 

3000 Stone OlUlfry Road 

Urbana, Ohio " 3018 
1143 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1087

"'arlsUe Sct.midt 

3000 SlOne Quarry Road 

Ulba",,", Ohio 43078 

O~v1d 0)'<1 

1191 Madden Road 

Cable. OIl", 43009 

Ja .,.,! Dye 

1791 M_en ROa<l 

Cable. Qh., 43009 

1.1 ,." Hftno.on 

1052 W SI. RI 296 

Urbana. 01'4 43078 

Vid!i Hemon 

1052 W SI. Rl 296 

Urbana, OH 43076 

Robefl A fo.ste' 

1440 S . Mutue! Union Rd 

C.ble. QH 43009 

Ga!1 S foster 

lUQS"'u!uaIUn,,,,, 

Cable, QH 43OO1i 

Wayne Guklen 

22~ Cofly SUeel 

YellOW SpMn9s. 0~io453a7 

Daniel Dve 

325112 Soulh Belmonl"' .... , 

Sprin911e1d, 01'4 4$$05 

Va.".;n 0)'<1 

325112 South Belmont" ..... 

Spr,ngr",ld, OH ~~ 

Joan Stad .. , 

1755 N 51 Rle 550 

Umaria, O~ic> ~3078 

CM.1es Sta~III' 

1755 N SI Rle sea 

Ult)a~ , Ohio 43078 

Ka1l'ly l.ewfs • 430 Nilson rd 

Mechanicsburg. OhIO 43044 

/\manda Lewis 400 WMaitlSl 

M"chan~bu'9. rutir> 43044 

Au"lIn Layne 

$$ School 51 

"'adUlntC$burg. OhIO 43044 

G,a"" Btal<eman 

41 Walnut 5t " ·114, 

"',,(;han~burg . Ohio 43044 

BradG"mes 

6314 County Road 10 

lan""r",lU. OH 43360 

RIdr Wllliam~ 

832Twp Rd 135 

Bellefontaine. Ollio 43311 

"'''I1Iha You"" 832Twp .Rd 135 

Bellefontaln •• Ol'lio 43311 

John W. Phill;p. 

62 SIal .. Roule 533 

Zane.r>ekl, Ottlo 43360 

l(allliet!n Oav" 7&40 County Road 12 

RU_Vlva"ia, OH 433<17 

Gary Oa ...... 

7&40 County Road 12 

Ru .... $ylv ...... , OH 433<17 

jail·" N. Eiliol 

6560 CoYnty ROad 10 

Zanufield,OIl 43360 

TotO H. Elliot 

6560 CoYnty Road 10 

Zanesr..1d 011 43360 

"'ary Mon ...... , 4492 County ROad 55 

BellafO<l13,na. OH 43311 

51" •• "'ortlJOe, 

4492 County Fload 55 

Bellef.,.,laine. OH 43311 

G_O Pool 

4043 Richey Rd • 

Van Wert, 01'4 4&891 

Vi(;kkoL. p~ 

4043 Richo!y Rd. 

Van W<ort, OH 45891 

7S~art 

7189Town.,,,I' Road 163 

"","I liberty. Ohio 433~7 

R..., .... Simnvart 

7 189 Town. h,I' Road 163 

West L,berty, O~IO 43357 

Susan Reames 

1113 CCllI\ty Road 5 S 

la"""r .. kI, 01'4 43360 

Cynth .. J~bo 

3401 C.R . 5 North 

Belillfonlalne, O~io 43311 

Tim Tlllrp.;on 

5205 51. RI. 6040 

Bellelont~,ne. Ollio 4331 ! 

Marcia 11I1m8" 

52055 RI.~ 

Bellefonlalne. OhIO 43311 

Penny Higgins 

3575 CR 171 

Welt ltl>erty. OH 43357 

Vocci WeeI<s 

283<1 Nclllngllam On .... 

Pa,ma, OH 4-4134 

Chad Ca'pente, 

~9CR26 

e.llefonl!Orn" , OH 4 331 I 

ANI Carpente' 

6529CR 26 

BeRefonta'ne, Ollio .3311 

lO""CUOp 

3919 Rd 142 Nmm 

Wes! Man.r",lII, OH 43358 

Ron Culp 

3919 Rd H2 North 

Weosl Man.field, 01-1 43358 

Dlana Cost;" 

4341 CR 10 

Belk:"'ntaine. Ohio 43311 

Jaoon 5haff&, 

15735 5""""y F'"ybY'Q Rd 

Anna, OH 45302 
1144 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1088

KaUn. Shaff ... 

15735 Sidl1"Y Fmyb~rg Roaa 

Atma . OhOo 4$301 

Jim ll. ~ 

6675 Cham"",n Ad 

Shelby, Ohio 44875 

Ka,eI Oavos 

6675 Cha",,,,,,n 1'1<1 

SIIfIlby. Ohl<> 44875 

~ .. Han 

6&47 Cllamp"," 1'1<1 

SII.lby. 0~1o 44875 

Deb Han 

66<17 Ch.mpjon Rd 

Shelby. Ohio «875 

B,en Hefl,",~ 

3429 S~_Rd 

SMlby, Ohio «875 

Alan Pnee 

7956 Remlinget Rd 

C"'.'I;~e . Ohio 44827 

Calhy PMce 

7956 Re'"""!je, RII 

C,eS1ione. Ohio 4 4827 

A'lette Kl<>g 490 laIo;eBh<>'" Or 

Wollard, Ohio «800 

Jghn wa,rington 

70011) SI Ale 96 

Tiro, Ohip «8al 

Gary BOgI;n 

5331 S1Ale61 S 

Shelby. OhiO 4~B75 

P_rS .... "'~' 1996Gu1l$Cove 

SlOW, 0~1o 44224 

Emftl;oS~"flclu 

1996 Gu~ COile 

Slew, Ohio 44224 

Lindsay HOlm, ... 

la2~ Ma~lne Lane 

Van Wo>rt, Ohio 45891 

loren Gledhill 

1256 R .. ",*,,~r ROM 

C.uUi .... Ohio 44627 

TomS!",,' 

421 B.en La" .. Spencervrlle, OH 45<181 

O~neS "''' 

421 BreI1.l aM 

Spe,,,,,,,,,,lIe. Ohio 4SS87 

Dawn Oavi, 

751 1So'llIate Or 

Spencerville. OH 4Seal 

Edna Ar",s\1ong 

27930 Oregon Road 

Peny.burg, Ohio 43551 

,.b'ry lou McNamee 

278 ENI Canter Wo>SI Mansliekl, Oh1043~ 

Lloyd MeN am .... 276 Easl Cenle, 

Wesl Manolle"', 01110 43358 

Joe Hug"..., 

63205181<1 Roule 540 

B~""IoI\la''''' . Oh", 43311 

Ur.daHughM 

6320 S ial. Roule 540 

BIlUelon!.llin • . Ohio 43311 

Patrk:la E. Lew,. 1466 so. Rt 292 So,,'h 

Zanetlr .. kI . OH 43l6O 

Catol Kllbl& 326 I'If<kllIuwe, Dr,,,,, G31"'" , Ohio 44833 

JoIn I(ablt: 

326 Wiklikrwe, Drive 

G.IIo", Ohio «e33 

aellly Reames 

4308 ST RT 273 W 

BeUe CMler, OH 43310 

lUke Rea"",. 4308STRT273W 

B<ltiI! Ceo1er, OH 43310 

WIIyn", L, wan"" 

7426 F"a!by lfoliRne< Roa" 

Convoy, 01-1 45632 

MocI1",,1 Burton 

15026 Bucl<lanll RIVf!' ROOIII 

Wap~~""ela, O~'" ~!MI95 

C"""ney Burton 15028 8uekJan<l Rille. ROlla 

W3pa~"""ta, onio 4S1!9S 

Jim Nieump 

426' lot"ll'lRo.ad 

51 Henry. Ohio 4S1!83 

Julie ,.,iekamp 

4281 llN"l\lf! Road 

St Henry, onio 4S1!83 

Kale N;"k~mp 

4281 L.onge Aoad 

61. Henry, Onio 45<183 

Phil "'","amp 

4281 l8nljll! R""" 

St Hf!ntV. Ohll) 4S1!S3 

Sarah NI(II\lI"'p 

4281 Lanoe Ro;KI 

St Hlmty. Ollie 45883 

""'" Berry 1217 BrOOKe Ave. 

CIOI .... , OH 45822 

Md,,,,,1 Beony 

1625 S!>"ngr,ekl Ave 

Wapa~"",,'a , Ohio 45895 

Sue S N""", 

&<76 CR 2 

Zan~.~eld . OH 4l36Q 

Keiltl R. N~SOt'I 

&<76 CR 2 

Zaoeslield. 01"1 43360 

Mary Ann Ho.r1ZIer 

BOJt 143, S55Q Co. RD. 29 

We.tliberty. Ohio 43357 

Paul O".ne H.rttller 

Box 143, 5550 Co. RD. 29 

West Liberty. Oni<! 43357 

Page. I 9 
1145 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1089

Am'i Fedler 

2.7 S<:a,leU D,Ive 

Be~ye""'e~, Ohio .5434 

Seoll Feche, 241 S<:arleltD,jye 

Beaye";,,,,,", Oh", 4$434 

MilO SellafIT"" 

16525 Wetzel Rd. 

Van W&I1, OIIio 45891 

r"'ryL Oa"is 129 ~""on 51 

Berea, Ohio 44017-2822 

Ma rl< Ffl8be1 

4149Wa,ehamRd 

Shelby. O~1o 44875 

Mallt A. Doenges 

10770 B<Jcldaf>d Holden Rd. 

Wapakoneta . OH 45895 

Temlet! Ooenll"S 

lOTTO eucklaf>d Holden Rd. 

'wapaltoneta. OH ~5895 

Daniel A lamllell 

loo Ridge 51. 

B"d<l"M, OH 45819 

Berne... Lefeld 

1931 ey"'.St.Henry Ro>ad 

51. Henry, Ohio 45863 

G80rge L"feld 1931 ayrl\,SI. Hen'~ RU 

51 Henry, 0"'" 45383 

Mana Coifman 

500 In Easl Main 51 

0 , .... "",'1e, Ohio 4533 I 

Dornn .. E Lange 

11569 Gry"WOOd Road 

Wapal(o",,'a. Of.! 45895 

i(ecU ScI1merge 

09736 Ceme~!"!, RII 

Wapakoneta , OH 45895 

P""",II lan(ltl 

11569 Glynwood Roaa 

Wapa~cneta , OH 45895 

BOJ 6eyU 

521 Hickory 51, 

5 1. H""!"!,, Ohio 45883 

Ma!"!, Beylte 

521 HrckOf)' 51 

51. HeN}'. OhiD 45863 

HaIry Hlllikamn 

!M39<t SR 3&4 

M'"stllr. Ohio 45665 

Ma'lle HailbONl 

0439<1 SR 3&4 

Minst~, ONe> 45865 

L,f>da Bef9man 

1899 SlIrle Roule 716 

Maria Stein, OH 45860 

C~n. B,ackman 

2073 au."·SI. H.,"!)' Rd , 

51. Hen!)" OhIO 45883 

E_n er.cltma" 

2073 BUIlt_51 Hen,.,. Rn. 

51, Hen!)" Onkl45883 

T)"" B ...... m"n 

2073 BUI"_5' He",.,. Rd 

51. Henry. O~IO 45883 

Tla",. Brackman 

19~ Eall"," Aven .... 

51 . tien!), O~io 45863 

ti.,.I11", Mille, 

2~ SPllf1g 5lfe"1 

51. H~N}' , Dill<> 45883 

J""h Mlijer 

2~ 5pri~!I SUeer 

5t HeN}', Onkl45883 

R<>Q<!r W. R~n~ 

16786Ran~Road 

Van \!\len, Ohio 45891 

LiU MikeseH 

4010 lange Rd. 

51. Hanry, OH 45883 

R_Miku"K 

4010 lanll" Rd 

S', Henry, OH 4!50883 

JalM1l R9tton 

11949 Srele Rou!a 109 

Ven<K1<><:t.. Oltio 4!>89<t 

JennIfer Rl\Idon 

1~9 sr~'" ROUIf! 109 

Ven<K1OGla, Ohio 4589<1 

Ca,oIE""", 

1723 BU'kem"jl"'-S1. HItn!)' 

" 51. Hen!"!'. OH 45883 

Chris R, Larrgenl(amp 

2859 Kceni!t Rd. 

51. Henry. OH 45883 

Diane M. langenkafl"4l 

2859 Koel\ig Rd . 

51, He"!),. 01"1 45883 

Joe Ma'!I8no 

12WMa",51 

l~ca. , Ot,,,, 44843 

Ma," Oe,," 12W Ma,n5r 

Lu<:u, Ohio 4 4lA3 

Tl\<>maa Manile 

913 AtIlr>gnam St 

Van Wen, OhIO 45891 

t(evio F'uHenkamp 

190 6u""ell.",'''' Sr. Hen!)' 

" 51 H<!,,!"!,. Ohic 458113 

Shirley Full ... 'l<am~ 

2190 Bu,IceIIS""", 51 Henry 

" 51 Hanry. On;" .5083 

Marga'.! 0 _ Rie"Cfllln 

4240 Baker Road 

C .... !'ine.OH 44827 

Nicholas Rlel!;chlin 

4240 Baller Road 

C,,"srl""'. OH 44827 

Ryan 5rel~"II 

4r08langa Road 

51. Hen!)" Ohio 4588 3 

G.eg N",'feld 

172451 Jo"ns Roaa 

Ma.ia 5lein, OH 458&0 

Page I 10 
1146 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1090

Jim'Mooch.rt 

12739 Mf:r,*-Vao Wl!rt 

County lin~ RQ;>d 

S!>''''''''IYiIIe, 0I11o~~1» 

l(itW>e<"!l~" 

1213!/ M8rC8r Va~ wen. 

Coulli)' LirIe !'Io"" 

Spencer"H", 0~1o 5BB7 

LCU>al31lg8 

.02 W Bf'!ntO<l SU.-el 

WAJ)<Ikoneta, OH 4&895 

M.<tI>.J Lar>ge 

402 W BeniOl1 StrHI 

Wo",,!v>nela , OH .&89~ 

Sneny Notan 

61010 Sunn~ Lake Ct 

SylVania. Of! 43560 

J""t",~ J, Noto n 

6 1010 Sunny a~e Ct 

SylVanlo OM" ~~560 

lia,oId 00)"1 

3005 ROBO Rd 

Swan""" Ohio .3558 

Vater .. Boyd 

3005 Raa~ Ro<Id 

Swanton. 01110 4355$ 

~phlle<u 

12032 W.~.~O<I ~·B"""Iar>d 

Wap

". . k"''''a , Of! 45595 

Sa""'" Berg 

12032 Wo"aI.D""Ia-Buckland "

wapakoneta . , 01110 45895 

Ann Siammen 

~217 Lange. Rd 

Stli"''Y, Onic 45883 

Eric Koesters 

S072 St.le Route 119 

SI. IiMI"/. OII"45883 

Ross Koe"ero 

5072 51. I'It •. 119 

SI. liflll)l , 01\" 4S6a3 

Arinda Betl 

3680 .sw.s~tr Ro.oo 

Crnllin., Of! 44821 

""O'15t,,"er 

61\6 R"",~nger 1'IQ;>d 

Crestli<Ie 01110 U827 

No Baisle' 

1539 flaatfoot l'load 

SBlnl '*"'Y. on" 45883 

~IIleB ""'r 

1539 Fleetfoot RDiid 

Sainll1enry, O~" 411883 

"'1og4n Culp 

39BO F.-.n Rlr:Iga CI 

ColumNI. Oh 43230 

.Ie" Cull> 

3900 f,-wm Rklge CI 

Columou •• OI-l 43230 

VIDIeRa Ii .. ~"a"" 

12 4~ n~ r""l)1 Rd 

Wapal<<>nela, ali 45Bg.s 

J' INI5 Ii",""," ~ 

121431nflltllal)l Rd 

w..P'~O""Ia, OH 45895 

Nate K"""", 

2105 Me rt.hon A'Ift 

Ooytoo, 010 45420 

Oa"'" Seflsrnit:!< 

122&8 BUcJ"af\CI H"OIen Rd. 

wapakO<leta, OH 45895 

Utlda 5fllIMno:lc, 

122&8 BucI<laf\CI H<»den Rd 

wapa ""~t3 , Oli 4S1195 

Jenny K9''fO" 2 105 Mer.hon Av,"""" 

OaytC>f' , OIi .5120 

Clayton L Meye .. 

539 Upland Road 

BatVoilage. OH 441~()'2852 

Tilom .. Show 

16289 NotIin\lhl m Or 

Wapal;"""lo, OM 45895 

POliter. A, S~ ... 

16289 NOIh"lIham Or 

Wapa~"""'3 Oti . 5895 

C~ J""M 

212 \ Univer .. ty BIY<! 

Llma, Ohlc .S8()5 

Kal ~ Sta~ 

6628 CR 10 

Z.nASllei!I, 0 111 .. 43l6O 

T"", Slaty 

6628CR 10 

Z.nHooid, Ohio 433BO 

D<>¥itI litH! IG540A WetLeI Rd 

an~. OH 45891 

I( ~J"",,I 

64 ~7 01<11l1li Rd 

Ma' .. Stein, Ohio 4f186O 

Carol JoMII 

&157 OlCling Rd 

M .. ,,. Stein, 01>10 4SB60 

PhWtip M, V"M!i ... 

16295 ~H nllh~", 0.-

W~pakOfleta. 0/>" 4S11g.s 

Mary A,," Wient .... 

16295 Nollmllh. m 0.-

wapa~""ela . Oh., 4S1195 

J • ..u McDona'<l 

IIl44 Co Rd 25 SD~II> 

BelleklnlaiM. Dnlo 433, 1 

Eltyn C W;o,ren 

1426 Fe&~1>y Wt$.I'ne' Road 

COfl~ . OH 45832 

Jo/In H"",o .. 

0!i21!4 Tri Townll\lp Rd 

New Bremen, On 458&9 

..... an liom ... 

OQ64 Til lawn.fIIp Rd 

New Br_n, Ohic 45669 

Trmy Homan 

05264 lri l"",,,"hiII Rd 

New Bremen. Onlo 45869 
1147 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1091

Jelln Homan JI. 

05264 Tn Town_hop Rd 

New 6 r"",",,,. Ohio 45669 

NeU Hgman 

05264 To Twm.tli(! Ad 

New 6remttn. Ohlc, 45869 

SI""e Hom .. " 052&1 Til Township Rd 

N~w a_no on", 451169 

p " trleIa JQl<epl'l 

22242 OU~OfI·f Am Ma "

SpenceN~"' . . Ohio 45867 

JeIln Jo..,ph 

22242 Mouno,,·ft.AmanClIl ". Spe()CervllJe. Ohio . 58.87 

Ch".b". Ande"Ctrl 62B7 Ad. 121 

Zann liekl. Oh", 4Jl8O 

Raben A"!lerson 

6287 RCI. 127 

z..nesliekl. O~io 43360 

JefrAM"''''''' 

B2B1 Rd. 127 

Zanesllekl. Ohio 43360 

lauten Ander""" 

6287 Rd. 127 

ZII"""IieId. Ohio 43360 

51""" Modi 

151189Rnm 

O\1awa. O~\o 45875 

5han MOC!< 

15989Rdm 

On.awa. Ohio 45875 

J~eph Burget 14578 AO~H 

Ottawa. O~io 45815 

Troy Ramp" 

881 NRPOIeOfl Rd. 

P,0. 80.,46' 

Kalida. Ohio 45853 

NAncy Ram'"", 

861 NII~Ie"" Rd 

P.O. 60.,46 

Kal""'. OH 45853 

Bradley J PolIS 

" '19 N Broad 51 

I\arlda. OH 450853 

I\atlle,;ne G . Potls 

619 N Broad 5 1 

!\a""a. O H 451153 

Oeoar" J MCln'yre 

,20 We., Main Street. P O. 

Bo. 100 

Kalida.. OH 451153 

Jennile, Horstrn." 

16'135 Road M 

OHawa, OH 45875 

Tracy Lee Rocha rd ..,,, 

12168·11. Road 16 

Ollaw a. Oh,o 451175 

Heathe, K"'man 

6365 Ind n Oa s Dr 

LOV&lanll. OH 45 140 

He alhetl\ohls 

P. O. BoxB9 

Kalida. Ohio 45853 

Palriclc Kohls 

P. O. Bo.,B9 

Kallda. 01ua 45853 

Eridta Kollts 

PO 801< 89 

Katlda. all'" 451153 

Aduen" Sw,.",* 1 OJ Ralph 5t""'l Bo. SS3 

Kall<la. O H 45653 

Ke~h Meye, 

16089 Rd. M 

Onawa. OH 45875 

J"Mir" , EdlllbtoCl< 607 N Fit\h 51 

Kalida Ohio 458.53 

EUI/''"'' v.I.I<tIl 16372 Rd, a 

Columb". G,,,,,,,. O~ 45830 

Joyce VYu h 

.8312 Rd, 0 

CoI,,,"bus G,ove. OhIO 

~~ 

Joh" O!1~lns 

PO 8o~ 36 

Kalldll, Oh", 45853 

08ry Kl&"'3n 

318 L~st 0, 

IO;allda. O~io .5853 

Mary KofIo~,n 

PO Bo~ 252. 18115 RdMI7 

Kalida. Onlo 45853 

Max,n" Bed\e, 

243~6 Aoad M 

CIov .. rd ..... Ohio 45827 

Ronald Beclcl!f 

24336 Roao M 

C""",dallt. Ohlo 45827 

K .. nnem Ba"nll'" 

107 Eut NOMhlaM 0""" 

Kalida.Oh'" 45653 

Jaclcoe 8 .... inger 

107 E,a0l NOfttllaf1(l Df,ve 

!(aliCIa. Ohio 45853 

Kare" Schroe<lar 

16861 U5224 

Coh,n,blls 0'0 ...... OhIO 

45630 

Jl>lla f 8a .... g .. ' 

408 We&' Main Sl 

K&lo<Ia. Ohio 45853 

MlUre'" Ooep~e< 

' 08 Carnat;"n 51(eel 

!\allda. on", 4S85J-On7 

Bflan Doepke' 

lDa Ca'natOan 5'",,"1 

!\aliOa. Ohio 4585J.(1727 

G,ev<>'Y Z~Ue' 

414 W. Northt.nd 0""" Katida. 01100 45853,05<15 

JiH hi .. , 

4 14 W, NO!1/1IaM Onw 

Kalida. Ohio 45a53~5 

Pag~ l IZ 
1148 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1092

Ciln Eve,. 

1123 lIu!U11SYlIIe·SI Henty 

" 51 Hen'y OH 

45883 

Corinr4 o.-n ~13~ Tww. F_ Onve 

Oubhn, OH 43016 

PIIWII~ 

PO Be. 729 

1I"1d1l OhIO 450853 

CIIII~I !(em·II",,1I 

PO 80.729 

lIalida. 0/110 4S653 

Anorew Gr_..so,n 

$,l! T\W"I F.1Ia Dr 

Cublin. OH 43016 

l_uMe_ 

25011 C_b·I.'On ........ 

" M .... S_. OH 4S116O 

Jim Cu~ 

11368 SR 47 e 

w..t Man11le4d. 0/100 43358 

lUI"" C~~ 

11388SR47E 

WIlli M .... lleld, Ohlc> 43358 

Joro Cull) 

"mSR47E 

Woosl MIonlliotld. Ohio '3358 c __ P O BOll 124 

........ U>e<ry. OhIo 43M? 

--

PO. BOll 124 

w.,t LiNrty. 0Il0043357 

""'"- 18280 L""'e< RINd 

Jach.,,, Ca~~" OH 4533-4 

O .... Hllm,."." 

1280 hylOr Rna<! 

w'nakonela, Ohio 4589S 

OIan' ~m""" 

'264101 la)llOl RINd 

Wapal<onelll. Ohio 45895 

"'a,\eine ScIIneode, 

16599 SouIhIarKI Rd 

Bolldnl. onoo 4S308 

OianIIF~ 

ISW8 BoIkJM Rd _IllS. 0/l0Q 45306 

R_Freule ' 8996 8oH<1n1 Rd 8(>1_"',. OhIO 45306 

ROlle" Sc.hn"""ng 133-48 LUlhm.n Rd 

I,!,nl"',. OhIO 45885 

A....", SargNr"Il 

11J88W11 .. 1W 

AIlna. 011", 45302 

OaO/ld R Bell 

15407 ~'II Roao 

.liMa. 01110 45301 

lar! Ann BeH 

150<01 Loc:hard R.,1tlI 

AMa. Ol>ia 45302 

Alan MIo:M,' 13171 Allee Rd . 

Anna. O!!,., 45302 

!(ely Mrcna.t 

13171 AIIIp ReI 

Anna, 01010 45302 -"-

1720551 RI 1 " 

AM_ 01110 45302 

Gilly RObb_ 

11255 PalQ) """'Ita Rd 

Maplewood. 01110 45340 

0&I0na 5nidtt 1117651. R1.1

19 

A""a . Ohio 45302 

Dennilo Radlcl! 

13080 Sidney F .. vt>utg RINd """a. OhIo 45302 

01_ Schn&ocM. 

16M9 Soull111oM Rd 

eo ....... , onoo 45308 

". .. ",wah. 

'0715 Ce"*'lty Rd 

WlI~k_. Ohoo 45195 

MocMte WlIllle' 

!H15 Ce,n"lel)' Rd 

WlIpRO<\'WI. Ohla 45895 

J_n Prang., 

18651 PalQ) Monl'" Rd 

Bolkl".. Ohic 45306 

RalJJh K .. ", 17.011$ Ii<'>~.nd I(;M Rd 

BOIk ..... OII'" 45308 

0 .. ". KeIIH 17011$ He.il.a Kin Rd. 

8oU<ins. en", 45308 

Tyle< ScII...-

16162 Boll"", Road _ ..... 0Il00 45306 

"' ....... 1Ie Ser1""..."" '6695 BOil"". ROad 

80''',,,,,.0Il00 45 308 

sl&pnen Monoln 

401 East 51 

Sotur-l, Oh", 4S306 

Linda Ralem,an 

1781 4 lodl·T .. o RINd 

.Jx:Icson C.",,,", onlo 453301 

la",. lOlZ 4 38 ....... aI/ioIII:I Clrf'4 

""''-'' .... 01110 43015 

tart\< fO!l1 13211 A ..... ~d 

........... 0 ..... 45J02 

Nathan Oavd&on 

13020 AlIoIa Road 

Anna. 01100 45302 

Joan RarlU 

13060 Sid""y Fre~bu'9 RINd 

"" .... 0"'" 4S302 RebKc;o (pr' 

10m 51-. R_ 274 

Anna, 0IIi<I 4S302 

Pas" 111 
1149 

Statement of Various Citizens of West Virginia, Virginia, Maryland, New 

Jersey, and North Carolina 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1094
1150 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1095

stltl" meeting the" 'l'newable mlnd~te._ lower n~1U,~1 g~s p.ices lurt~ r ,educed wlnd'S 

~n.~ctivene", as a 'Iue! '~ver·. The [1.0, now lo.ecut> 11~1 &rowth In the wind .ecto. 10. Ihi' dec~de 

regardless ol-what happen< with the pre". 

Job losou: Despite blll;"nsin public funding the Wind ",cto. e"pe.ienced ~ net loss of 10.000 direct 

and indirl'c\ jo bs In 2010 bringing Ih ~ toUI to 75.000' jobS. Most of the remaining JobS ~r e 

lempo.~rv conSlruction po.llion. reQuiring pea~ level. 01 development yea.·alle.·ve a. to maintain 

current le\lels. Altempts to at!flbute job trea tlon 10 the PTe must be tempered with corre'pondlng 

Job 1000<es due to higher re newable .ne'gy p.lce.<. The Stale of Vermonllound Ihal add ins just 50 

MW. of ,enewable energy at higher·tn..n·ma,ket electricity prices "had the delele,'ou. effects of 

re'hufflln@con.umer spendlnSandlncre asln@thecost 01 production lor Vermont businesses"" Last 

year. ru.,,1 <!lec!f]c .alepayers In Minne sota paid mor. th,," $70 million In above_marke' e nergy 

p.lce. due to the high co.t of w;fld' . 

EnvIronmenta l be ne liU: Wind ene'gy I. a n unpredictabl e. var'lable re , ou"e th at cannot be .~Iied 

on to ",rve load. lIS primary benefit I. in reduc ing U.S. electric carbon e",I"lon'l:. Acco,d lns the 

NJvl~ant". a four VU' u ten,io n 01 the PTC could a~o d an ncrem nt~1 170 mllliO" tOn , 01 C02. Thi. 

' be" ca.e' e>l;male I. not p.edicated on an actual wo.king 1I.ld 'eglon, but ilwe 3cceOl Nav H~nI' . 

estimate the co.t to {axpaver, is at lea" $23fton C02' , ten _limes the 51.92/'on mar~,," { price 10' 

ofl. etsln th .. No,{h" a<1ern .tates partIcipating In RGGII The PTe is a hi~h p'l<ed vehicle /0' ve 'v 

quenionable ,eduction. of C02 em''''on •. 

Conclu. io n: The key queulon 1. whelh ' the bene/It. 01 the PTC 10. wind a'e wonh the co.l, Thi. 

20.yea, old suboid'/" is e "",,"n.,ve, Ine/licient. ha l failed to produce net-job Incruse s lhM are 

. ust ainabl e. and Ihe <o ,t applll'tl per ton 01 C02 b mo,e Ihan lOx the markel pric e of carbon under 

RGGI. The U.S, powe, market ha. unde ,gone slBnlfocant change " nce the PTe was adopted, 

induding gulauon. II I. no' pon lble to isolale Ihe extent '0 which the PTC <o n\libule. to wtnd 

-",c'or growth '". Without 'he PTe. project economics would ' h lft 'o~tate. with RPS polkl e" The 

value 01 ,enewable c,edlU might ri", In re<pon se but powe, ma,ut< will ultimately <onfronl the 

.eal co .. of w"nd ene'gy, and o.ice 11 acco,dinc.lv. 

• w"" •• "" ~II>J~' v _ ~'" ~ "" ~"".n\ ~ydl " e .. " ". _ li,m iOb <ou",., <;In« '''V .,.,.... job I" ",~ et.d,";,y 

_,or "'W' ""nlr"lllll,e 1<11", ..... ..,. I ... "m 01 ••• ':trl,'rv. 'M ,"'., •• KOI>o(I\le ~",,,,,,, ... 

• VT UPS. f~ C<""~ ,,,,_""1 V" rn"'" ,_ '" ''''iff' 11CXl'J) 1> 

11~ dl""" :U_i<e .• """""~KD./pC."n <ws"lOWh """"' e""g o;"""af ... H .... 1 

• w~" Str .. , ,",,,,,., ""9 ~ ~~ to. _ 1M •• 20 111 

"" .. :II .. nli ..... "' '_I. ''''''SO 0(l(l 'OS 101:lO lS9HOot~1 ~14.1JQ6 1. lO, """MOd'J_~."" ..,>j 

• N'"",d"r 'O" " no "",oA "" ~_I' d.,.,mi""d _ ' " 51 ...... ~ .. '''nn 50"'" " 'noI ""''' wirhQ"' I ... oJ( n~ O"'y 

I_~ . t . ",.",,,nU! _ fit ~v., 4 ..... !leU_16) 1M <c ... ...,. oft,., b _""11., .... h,ct> .. ' II.In ~nl'on . 

.. 10"" CoM"' ~' .. "" "'.''''n to 

Page I 2 
1151 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1096

Supplemenla l Sheet 

Submilled by: Larry Thomn. PO 801 194 Clrde~;lI~. WV 26804 

Dale submltled : May 10. 2012 

Comment. wbmilled on behalf of Ihe followlns ,e,idenl' and p,operl¥ owne" ,n the 51.le. of Slate. of 

West Virginia. Virginia. Maryl.nd, New le,.e~, Nonh Carolina and Georgia 

AJ.~h!l!Mn 

IU£,l.keAv~_ 

e~himore. 101021212. 

emi" Tr'lIel 

8901 Wh.I~,.,ille lIoad 

Wha le"';lIe, MO usn 

10<1" Ten'l 

53 Algonquin Avenue 

Rockaway. fill 07866 

Bel~Ounham 

B8~ Ridgeview lload NW 

flovd. VA 241191 

Gary Ynll'SII' 

1530 Ridgeview RO<Id 

Floyd. VA, 2.091 

Loren Rob<!lIson 

1393 RldBevlew lid 

Floyd, VA 14091 

Sandr. Weeen"r 

4\0 MajeUre View Ln NW 

flovd, IIA 24091 

RI<k Webb 

481 R •• en, Run Ro.d 

Monterey, IIA 1446~ 

Gre" M. WiUengorg 

P.O. 702 

Fr.nkl ..... WV 

Mar l~n SI>o.."feld 

1671101«1'" W'V 

Oav(" 'IN 26260 

justin Carrleo 

1138 £Ogle Rock Road 

D.Id.nd, MOllSSO 

jimmy Tragle 

8901 Wh.Ie ..... ;l le ~o d 

WMlel"'ille, MO 21812 

John Tefry 

5 1 AI80n~"ln Avenue 

R""kawav. 10107866 

Gle"" R. SUllttde 

1820 TumlN',ry ()rive 

Ro~nd H,II. VA 20141 -2574 

Helen StClair 

2461 Rldatvle .. lld NW 

FloVd. VA 1409] 

lI~vmond SlCl i' 

2461l1idseview Rd NW 

n"",d, VA24091 

Todd Robe nso" 

1393 Ridsevlew lid 

Floyd, VA 24091 

Harold McC.1I 

.954.4 Pine fore,1 Road 

Copper lilli, Vir&inla 2407"1 

10110 ~.Ihao Stfoud 

699 Nolan lane 

Willi~m'bU '8 . WV 24991-

7224 

Peler SlIoenfeld 

161 B~ '.m Way 

Oavil, WV 26260 

MeHsa M. ca.rico 

1138 (081e Roc, ROiId 

Oakland. MD USSO 

Tooy~ 8Ql le~ 

PO eo~ 549 

Welt Jeffer1-Of\, NC 28694 

Annie kfoc~ Ii> MA, CJgs 

.9418 P.uer$tl<l Drive 

8enl Mountair, lIa 14059 

1",lIe s. M~ler 

805 Wooobe.!)' Ro.d 

lIichmond, VA 23229 

htl1leen IngoldsbV 

IOn Se.ver Creek Ro,d 

floyd, VA 24091 

Ri,ha,d Wage"e, 

4JO Majestk View lt1 NW 

floyd, VA 24M1 

Palt! Aeum 

3681 Blue Gr.!;; v.ll~y Rd 

61~eG"lS'. VA 24413 

Tammy BelOruly 

9>44 Pine fo,..,,1 Road 

Copper Hil l, V~glnl. 2407.9 

Vicl<; Alfano 

55 Skl"''''"' La ..... 

Elkil", WV 26241 

Marion Harl ... , 

1111 Bo~ 3 

Ke rens, 'IN 26276 

Page 1 ) 
1152 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1097

A<1hy, W Cl<>(ld., If P.me l. ()odds Mo",ret M. (ollin. 

PO So. ~17 PO Boo1l7 n07 4H camp Rd 

Monl"'''. WV 26281 MMI.O ... WV 2628) Mo,sanlown. WV16;08 

",,~nl A. CoUln. S. rb.,. UmiTnl O.vid Umlln, 

22tJ7 41-1 ( . mp Rd IIC n 60. 40S 11(7211<>.405 

Mo'g.ntown. WV 26508 Key",. WV 16726 ~ev . WV 26726 

Mitno.1 Um~linl l Detty Spinl. ~r3nk O·H. ,a 

He 72 80. 405 ~R18O»97 94 O"""ld 51 

( eve', WV26126 l(ey"" , WV 26126 Key..". WV 2H26 

ludV 0'1i'~ Mlch.el Mo.gon WOVM Sj>iu le 

94 O",h.,d St RT 4 eo. 231 RRleod1 

~ev.e r. WV 26126 Kevse., WV 215726 ~ev.er. WV 26116 

Mi~eWu.~, Kave T~o", ,, ta,,.,. Thorn •• 

151 Redbud Kl\lln PO eo. 194 PO SD>. 194 

fori ~M"" WV 26802 ("",,,.llle, WV 26804 Clt<I~vl . WV 26B1l4 

Barbo,. Deon E.~ A.o. Tom firor 

PO So. 192 41.) Iflo lIiUlane 4111,;. Kill Ltn" 

fronklln. WV 16807 fr. nkl'". WV 20807 fr.n~lIn, WV 26807 

Art Hoolon Ch arte, 81l e1 VI'glnl' Bale. 

11(:7880' 191 I-IC 70 Owe 402 He 10 00"1 401 

~ive ton, WV 26814 SYiarGrove. 2~815 S~ ~' G" .... . W112~8J 5 

~olln Jan J. OitfOfd Mille, ill 

ISO Nort~ llkewood Dr, 206 MO\lo\ Ve'I\Q" liInc 

~~el ~~ . WV 261 1 SJ>err .. ilie. VA 22740 

Pa g.1 ~ 
1153 

Statement of Various Citizens of Wisconsin 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1098

U.S. HOUH 01 pre entatIv H 

CommlttH "" Way. and Mean . 

Suh<ommlno. "" <t ov.n~. Mu.u, •• 

Ap!"il16, lOl l· Hurln, on C.rtaln hpirln. Tn Pro';'I"", 

Commenll S<.Ibmlued lor the Record 

The unders;gnod re,ldents .nd "'ope,,,! own .... ' 01 .he Sta' e 01 W .. con.<in ,e,p.ttluny .ubmlt Ih.,e cOm men" In 

,e,,,,,,,,,, to lhe April 16. 1012 .. e.tlne on C.n,,1n £ic"";'" T." P,cYkiO"L au. comment< a." Ilmlled to Ih. 

Productl"" Ta; C .... dil {PlCl !or wind ."e,r'1. 

b,""utiv,. Summary: T~. PIC Is olle" c,e<flted 10, m",t 01 ,,,... S'OW'" in 'h" wind •• c\o. bu, Sltr,b1Jllng ma ~.' 

activily to , .... ..,blidy I< ove rly , imo ll,!", and bil, to con.Jd .... olhe, c.utlal I. ct<>r, d'i"lfIlI d .... k"'m.nt. When 

..... Iu>led IBoln,' ~.y ..,,,ooml< on<! e""';r""",.,,, Cti' .... lI, Ihe ,,," 01 t"'" ,ub,Jdy ha, P'O".., e . ",,,,,,,. alld the 

bef\flit< '0 Ame,",a" '''p.y. .. minimal. 1f !J>o ~T( we'.'O ".pi ••. 'he oconomicJ olt"" """'trywoo'd~;ft '0 

St.le. with ",newob!e mo"""'u •. Power tTl" .... " w"1 ul."".lel, ,,,,,f'OI1I tl>e .eal ccsl 01 wir>d ~e'g'/ , ~~d p'lce it ~,o,djfllliv . OYe"'" Impact on'h~ induWywould b<'.13, I"" .e ... ,~ Ih;n 1"0"",,,,">11' ct.i"" . 

SUPportinI5'.'e",.n' o.: 

1,1t Coli' !"tIfICt! .dopad '" 1992, the mil 01 11t~ pre /0' wlM oQe.rgy Ito, b.IIco ned from S, mlnlen!",,", i" 1'l96 

'0 SI.S billion ' nn"olly tod. \,. n,,, open· ended .lob,ldy cf 1.2C/'<Wh In . 11 .,·, •• income 'op·,....nll . P,.·t .. ~.I"e 

ofoppro.l",alely 3.U/l<Wh.ln m,ny (O, ioJ\> oIlh.,,,.nl,,, lite PKnow equat •• or i'I lre;w 'ha n, lite whol .... I. 

p.ic. 01 powe , . hen if lit. PTe w.'" ' 0 '""'.t, la.paye" .r. 1111 1 obl~aled I" COli.' nea,,," \10 billion \~ ta .. croditf 

I", wind p,o/ect, built In .lte I.,t d..."de. Tltl' i, In addltio" to 'he $l5 blllioon debt for wind !>'oject, ."Bible under 

Sect"'n 160] IlnclvclinB " ""cipol. d 2012 8'1""1. 

'nel1"«Ie"" Since ,tw. ~TC" "nllo,m arm" 'M toonl", ,I i, hl.h ly In" fl i<' e~1, ,.,pp<>rl1na """,,Iy , i,"d de...,lop",e", 

in $O",e • • u . while i" olne • • rea. ,uPpC<1in8 prnjoct< 'n3\ would ~o •• b<oen bOllt ,..~.d"''' of ' he c",di •. Thi. i. 

trU" in T'~I and ,h. p.dro< Northwe,1 wh.,. w!nd <.",<lty ""eod. " . o,m",1oo Citp.tilHnd wind I, <u,ulled'. 

In New £n8"''''' \he PTe liltely ~~V' more .u bli~V 'h"" ,. nece''' f"1 OWinl to ~U:'H".e 5 •• " ",a"dal.'. Utiliti", in 

New ffllll.nd ,,,ullnelv "8n ktng·, o,m powo' wnlracU 10' wind at I>'ke. ,ig"if",. "IIV above markel. 

Othe. l",o" ad"anclncwind devolopm."" The IMUU"I ln ';>II 11 " 01 l. ~ ala .Lew·a""," '''illt''''l tn. PTC. TI>i~ 

viti,.. It''''f~ o. ne, <Mf.1 ~"of' d,lvlngd ... loomo nt (ndudlni "". ",. nd •• el .nd n .. u .... S .. p.ree •. II il "'" 

Pl>"lble B;ven .~.lIab ~ d.to to Id ~n ity 'he ."'"Of .0 Wltla. l~e PIC It., c"nlribul.d to I"' .... ~ I" 1m. .oc.o,'. In 

fact, d"mand 1o, wind !\a, . roded •• cen'l~ du". Tn pO,I, 10 >late< mee tlr\i 1",,1. 'enewable ",.nd.,,,~. lOw,", 

nalu,"1 go. 1" "'.' 'l>rtMf (OaUC<!d lnd '.II'~II...,n ... ao a "uel ",.e", The WI ""wloream h. g.owth 'nlm. 

w,nd "'''0' I", ,hi. d"ad •• ", .. dle .. ,,' what hopp-en< Wltn ,he PTe'. 

, U""", •• oul. 20ll CO<1I! ...... ion.1 TeUI",o,w ~up//K1.n<eJ''''''''.lo.'lte .. in''.ubcom'''iUelHn'''li,.\ion ... nd· 

""OI"IIgltt·.ubcomml"_ ..... rly ... nd·.nvl.on ..... nt·,Ul%1(1'!f;~H"lnr·m..<lnB 

' Wi,er ond llalin •• " 10)0 Wind l~"""k>giH "'O"'~l /loJlOlf, (2011) YiI ~np:/l ... c!.II>I. I""I •• !.m.".""rls/jbnl4Slo-.pdf 

' J""T' C<>mnml...,on '~OIio n, P",,..,,,lowAnde""'g,,,"...tp.I<>,Ing fO fo.> ,,~ Fa, flfflrocry P,O<JrJr:!i<m r",..,. 

R<~ .. mblo >OU«n (1005114 htf"':J/" ....... l<t-go./pubtlultOn,dotml/fu""''' •• tdownll.kI !~ 1~ 

P~Ke I 1 
1154 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1099

Job loose" Del.plU. bMcm.ln pu~ ", "'ndin. tI>~ "'I'd "",to' e.""'I~"""d I net 10 .. of 10.001 dl"'« and lndl'''''t 

Job' I~ ZOIO brlnlin, ,ne ,otallO 1~.OOO' JOM, 1,0"'1 of Ine ",al",nl job< a,. '.mpo,ary C<)''''fOrtl"" po,I!1O'" ,.q"lfln, peak 1.",,1< 01 d ..... lopm.l'. V.~~I1 .f·V"a' to m_lnWn curren' ~I._ Auempu 10 attrlbut. Job croa1ia" 

10 t~e P1e mun be lemi><"~ .. lIn ror'e",,,,,d;naJob 10"'" due tol!lgll"' r.n .... \tk'..I'11' ...... Pli<u, l~e!.llU' of 

Vo..,.,,,,,. IouI'd 'hat .dd,"tl Ju>1 ~ MW. 01 renewable ,,"e'S'/ al hiine,-Ihan ·mar':el ~Iric, v p~<e. "".d 'ne 

<lele'orious .lfoe", of ,e.hufflinJi con",,,,., ,p.mllnl and incr •• ,lnlln. coo;, of production io, Ve'",,,,,, 

b""n .... u · .. l.'t V"a" ""al electric ra e~ .. in MIM.IOtl c.ia "",ro. tnan $10 million In aDoVe·market ene flV 

price-< due '0 Ihe ~h <0<1 01 "'lnd' , 

Envtronmenlal benell'" Wind ...... "y ;. an ~npr.d"l.ble. variable reKl"rc.lhat "'Mol be relit<! on 10 se",. "'ad. I .. prima ... n.ner.1 II In redo>tln, V.S, e lt'Ctlinarl>on em"Won" ","""Prnllne N3.II_n,', • Io.Jr .,..,.r ~ .. eru",n 01 

Ih~ P1t: <oukl ~","d I""."",,,,,,., 170 ",illl"" ,on. of (02 Thl. "be .. ,~ •• " e.tim.le ,. not Q •• dl'~led "" ~n 

oet".I .. o,l<lnAlrid '''''''''. b", if .... """'Pi N""ipnl"e<tI", ... I~" "''' to ... p.yef1lut I,a" $21/10n COl' , len· 

11m ... Ihe $1_92/'on ma"" prlct for " 't..etl l" ,..., Non"", .. ".", ,'01" po"kipo~n8 In RGGH The PTC «. lugh _ 

pricot! ."McJe for ..... ry qlJe1tlo .... bl. red"tlk>r1. of COl eml"lon,_ 

Conclusion: 1"" i<ey qu."lon I, w"ether I~e benen" of Ihe PTe fo, WInd ar" worth I"" ",,1. 1h(; ZO-.,...., okj 

."b.1dv i. " ",,,n,"'" lneWcient. Ion r.llot! 10 p.<>duc<: ... Hob inc'.~.e. that .' •• ", .. tn.ble, .nd th. ",n applied 

P<" Ion of C02 r. mo,. Ihan 10. tI>e ma"e' P'tc" of ca'bon under ~GGI.1h. U.S. powe' mn., n., unde'IOn. 

'11~lffC.nl t/lanllft <rnce I"" PTe ... a< 'dopled. ,,,,Iudlnl derell"latlO<!. II " ""I po" ;b,,, to l<olo,e ~e .. ,en' 10 

.. hldo thor! PTe conl,lb"tu lo ... ind ieClor Inl' .... ". ~out 1M PTe. p'oiHt e,onomki """,lei 'hilt 10 1131e5 ""Uh 

RPS policie .. l~e ".'ue of ,enewable. "edits ml,M t;'" in .. ",on,. buI powel mark ... \.,lIl . 1'lm .. el ~ CO<1"Onl llIe 

'~ l coSI 01 .. Ind e ... ,IV. ond prke II a<<o.d ",I~ . 

, \V, ... _.d 801 .. ' .... - Note: No .,d • ...."de,,, aud", e,.;.1 to tonli,m lob <0101'1., Sin« .n~ ,,,,,,,,job,,, l!1e .,..,trlclty 

.«tor "I~" (an'ribu,. 10 ",cr~.""1 ,m, to" olelrct,,Qty, I~ I. ~., ... ttenOm+c ok-'I1",,,lu>, 

• VT OPli. ,~ . Cr"" .... it 1m""". 0/ v.,,,",,,, ~d 'n ratin. (lOO9112 

~ItP:J/pubUt>"""'e,""""""I.~""/pIi>n .. il I)P5 Iiol(l\'/lr lle"lop.~20fH<lIioI'Oin"-lOllrilt ,pd 

, "".11 ~r"" "",m. 1 Goug~d Dy me WiM [IIUV l!lul 

Mt p:J I ",,"n. _ w>f. com/.niclc/SB IDOO 1414051702 ]0]59 Z 404 S71l1;( 244006J91410,M",1 ?morI.I""It' ....... y;.j 

• ""'~"t p,ovido> no Miail on ...... it. """,mined 011."". !.Iud~ .. wm""..,,,,,, wind ""'I! ... ,,""'" ,h. PTe ."d ""t~ 

looIced a, 1 .. " ,,,nM,.1 ben.n, ""., ....... " llOl1-lIil. llro .. m .... ' 01''''' .. poten,;;'1Iy Iril~" t,,"n $21/'''"' 

"Join, Camml"".. en Ta,, 'lon 14 

P~ge I 2 
1155 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1100

Supplement. t 5~e" 

Dale submitted: "1.~ 91h, KIl2 

WINDtOW5, WMO/I.ln I"dependent DII,en' Opposlna Wlrrd TlJ.bl"" 51t_ loI.nitow<>c & '.",aUnU Countl~' 

a:C~£. Olume! (ounty C; l'~n' '0' ~~>POI\"ble (M.gV - c..lumel (OUpIV 

IICC~WE, B,,,,,,n Count'/ CTli,en.Io, ~e.pon.I~le W,nd {""'IV- ~")"'n CoY nt'/ 

Con"".ned (Otl, en, 01 Smelse. & P.rI, fo",",nlp, Gr.nt (ountv .",;aenu - G",Oi County 

Cmw:emed (iH,en< 01 T",mo •• I ..... (oun,,, _ frem..eal •• u, M"",oe. Rock, .... ClO.-e. ~nd O.ne (ountle. 

Fo.e>! \"olce - Sl (rol. County 

Fo ..... rd Wind F.e.ory ..... "'im' eoarftlon- F""d du liIe (ou nt'/ 

G' ..... mo.e C"""ltu,I"".' "'.~I",n - Brown C"unl, 

W."em WI"",,,,,n land""," ... Alii.",. - Moo'"" "'"nIV 

tn •• K.>,"V 151(1.1 ' ok""" ~<I 

8or<n"rdI. (.0. ", Ullc-t",nW 

COf""HIM!I\,.GH.1cI 1004' ........ _110"" 

Cr."';~ D>w<r 1591 ~51 

",,~ ... ~v·" 96l C"'H .... H 

DnI ......... ~ .. "" 1"'0 ~Iw ... 'on. T.aII "'" 1 

Dir"'I. ",,.,,,. 4OO1u,"I" C""'." ~Nd 

Dy"'''', D.,. 21n2,,_.,ANd 

E .... ~ ~Ibo'" ~IM851ow"h 1 M 

!'II_.C..01 "19~l'omp ...... 

.... ' ... '.11"':.1.. 6215 C"""W Rd 

'"""'. R><tIol i9"-lUOi""" 

GoI>l. ",.a 11140ll·HW.·ll4 

G".,C.,' IOl5 ".do., 1\0 

G ... , .... 1015 ,,"",. .. 1\0 

G,« ... "w.~ NJlJO County R""" 6 

~ocIr1< ... O'" ~46n II,,,,,IV lit 

Ho,,,", u"". • 1 '-1 !.I 

"'fso:n""' .. ~nj" 9t5 o:ok>nool " ... 

~1"<Io<",.". "'bon 2961C""",~ Rd H~ 

H<><', ~"" ~lllB '"RG. 

Hoorth, A" 014113 M ... "'le Rd 

Ho~._rl!l" ls.l iv«Hi~[)f 

'""" ......... M ... 1151201 """",," 

1 ..... ,I ..... l.. WIOGI H"" .... ~ ... "" 

1""""'"._ ..... 11IiC""".;Ro"'P 

Jol""U>o.MI>O 29J42I(t1n" .. 

"" .. W's.ll n 

GfftftlC. I. Wl s.lI16 

Pl!nm .. , WI S410i 

Gfftfts.,WtSOOJ 

,"I» OW. WI ~)801 

Il<Pt'.,WI54" 5 

Do"''''.WI~II~ 

""' ...... "'. 111 1 ~228 

OI'Ko,,;WI ~3014 

c,M".lIIt ~U' 

G ... o""'.WI"-l126 

CIu . .... ~ •• WI s.oos 

Hijb.,t WI s.l129 

""~!i_.WlS.U:ut 

M~ltI<ot, lIIl~ l28 

...... "" ... WI W2I6 

o.iI",,,. WI 5301. 

""OIl",,". WI 5371 • 

G,..." s.. •• WI W300 

C.!>o C"", WI 51807 

~.I.W l.G 

OI~'on. WISJOIA 

, __ ru."WI SlOl8 

N.w R~. WI \4017 

5I!~. WI SJOlll 

Emerokl, WI \4013 

E...-.... WI S4011 

Page I 3 
1156 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1101

"'~~ ""'" W.IDI Did; ~d a.~"" W'UIll' 

K .. I&I1. loMen 7_NC."~~' .. ",.i<"". 'Ill H(J)l 

Kiol/Wl. """"'w 1II'.m~~t'lD SlI_.W'~lj)gf) 

io ~.u.. """" NOlO WIO~'O F,>< C, •• k (), J"'IO'I.WI~1017 

.,, >< . "' •• 0 WI4#.1 ~I'~1 0;.00>1>0. WI ~JUI 

KI ... ~tk"" ~Sl S. OIhWeol , • ." .... 110. WI ~1~)6 

I(n""._' 1301(11;05"_ K_.<1ON. WI ~116 

I(ne~.'., ... F,."". 1~6I(t,"'O 00" U ' •• WI \.400. 

1(o(tI.A<lri< U5Wom""S, G, • ." 8 .... , W< ~JOl 

Ked ••• "" ...... ~.l .j(!..,_d GI ..... e.f. 'II' SUI6 

~.M."l. 8116 DKl</MO<1 ft. G, .. ,; •• ,. 'II, ~1l6 

... "., ...... N31JOSi . .,dd §~ Chi'''''', 'II, ~3014 

.""""'<~l ""<It .... lil00 ftO<~1 C\ o."", .. k.W'~m 

."J< ... . ,...,. ~1~III(Iw;o..Md 00""' . ... W'":/Oll 

K"'i' .... "". 'II09U"""' .... "" Mhl>i<o<. WI S'U! 

lo"'I>O<t. "~ . 1l1i18Oln ;, CleO/I."., 'II, SoIOOS 

lo" . To ........ l'lIP"" Md GrHnI • • f, 'II' ~UG 

1..>< •• TV'P<' }'l1P." Md ~nI ... f. 1'0" S'UG 

loft.".,". 00.." 1,6'11-.,,,$1, O' ...... ,k. 'II' "208 

1 ...... I).1e 1880Cf\'MdQ 0..., 1.01«, 'II' S4oOO> 

1,...,.GIo< .. lMOOj MdO, 0.... lA ••• WI S4QO!; 

lodwia. "<11'" NII'SF", .. ,IIIuIfW'j I.od~ WI 

l""",<&. ~ ... "'" W~J!!'J 0,'""""1' Ad. CN/too. 1'0', SJOI. 

M.Ip".,_ Go,,! 17Hlllwy'l T"", _~ WI l" 

M."". .... , Ai ... UUll.a>Cn.".1 ~d t(iOI.W'SllIU 

M<.AII,," '. TIOCY JIO rSt_t .... T~.I Gr .. " a ••. w< ~lll 

"'<"",0..,,,," 11.>e'.o'm,,!"""'D G ... _Ot •• W'~13 

",.WI" 1l.I.4 ._1··1 ..... _11< JM"_, WI ~J5'6 

M""Ie",,,,, Kx,J ~16~M_ l>t o.P .... W'~IIS 

"' .Ie<.AnMt!~ ~9.a .. wyti<l G .... _O".W,~13 

"''''' .J'''~'' 294a~wyiol G .. n_Ot •. W'~O!3 

"''''0 ... 0<><>.....,. IlOUW[)(I, .. ,~~ S'c ..... d. 'II, SlSlO 

MiI< ..... IOOll IlOUW 00< .. , ~a B,,,,,,,,,,,. W' SlSlO 

"' ..... '.r. DoM;t C, .30 M<.4"O", [)r MOllltow<><. W' 5'110 

Mu .... ,.~,_ N2JII-! (1"/ T,""" B ( . ".un ... , WI S'llti 

"'..,"' •• ....,.ty I1h""'otvR~ .. S", PI'~'" WI ~[),l6 

M","""""",«'" lOOll.<lJ"4~ Str_ 0<1>1< .. 0,'11; 

Ob"",,,,,,,,,,, .S91 Coo ... ,_n M . 0....., ... WI ~2011 

"'01. ~d'l>\ N1426 (tv Rd ,,8 """",Du,,, W, So211 

P"" Molo"", [lS41 Kro/:_ ~.w-."" .... W1 §!I116 

'ou"", Mdv llllH"'S' 0100. 'II, §!Il~ 

.",,""'1<h. M"~HI 6601.' .......... Rd otn"' .. ", WI §!lIar; '"""",,,",_. _1P .. ~"""'Rd Doom" .. 'II, 54111O 

•• ~ ... k.""d,.w HS8S (ewtlH . ..... " Xew."" .... w. §!Il.I6 

Page I 4 
1157 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1102

P.I",.I. Mlth ... 1680JJ.o"'!H>Ct ... ~.,.... ... i<I'''''"' WI .... 21A 

_,»nell g<)'j Pot. St H,". ,~u .. , 1" ' ..... 40 ~ .. om."".M .. 1. W1O'il~ Cod,l t Ro f_.W ~1019 

R.dln". Anllo 1910CtVMP GIoO_ 0 ..... WI won 

. .. tr.O ... 1541 OiOI"'oo . .... G, .. oIN !. W' .... 116 ._".AIIi\.> Ulll r""'''IAo." "'i.hi(ot. WI ~<218 

~"I"" '''M'~ 16lLCtI"d<:l 00., !.iou. W' ~~ 

'100000.0 .. 1<1 \JU~IU" ..... "owo<. WI .... 1I0 

Solm. (;0" ... 1J016C," ~ Nowto" W, 5)061 

~"m.~"'" IOJj9~U~","Ad ~...tooW' 

k"'''''...,.Got ........ 17030.1. SI ...... ,'0 ...... 1"' .... 110 

k"u ..... ~O' ... 85'l'1 North "'~bu!y 0" K ...... '.""'. W' 5304C 

k"u,~. ~."c .. 1n~HWI\d G, .. oI~.!. WI $0116 

Set ... , All." '",10:'" 1" .. ",,.. Ad at........,; ~. W1 ~J006 

~iDI< •. M" 699< aOn" . ' HIM Ad, ...... oIeo!, W. $oIUG 

Sho01.r_ 401 s. ..... h •• "- .... ". .... WI 5]501 

Som ........ . 1100 P",!I»n, Ad .•• , II o.~"~ $OlIO 

s,."~ ... s.,.~ lill. S .. "", ~~. 0..-.". W' S-OlOl! 

" .... ~ •• <!v ~IOS U~~, Monda .... WI ~1~10 

ron"".o.nitI J~'IQ!o< __ • 00 ....... 1'" s.<ll ' 

Tl>Io>.AI .. 8oa~S'o ... " .... 1lo ....... WI .... 1I4 

T1>io' ••• 1'" 8O!l~ S,,,.,. I\oH G ... oIHf. WI SOU6 

T~'''' 8Mb 3011'-"" lid. Ot."",t. W, S02Q8 

V,n Goo..,. ... M.,I. N17M'""'. ~>II~. ~."""><" 1"1 .... 116 

v." l .... ~ •. MIW, 7176(ooOlr_'" G ... ", •• 1. 1"154116 

VOOOO. 8001'''. "'. "M n8~. 8,,"' ..... " SI. '~II< chu,., WI so '"0 

v ....... S .... , Oonok! ]71,5 •• POI', ''''',a. ~., G, .. " , .. !, WI ~4116 

V<o!GlU'''.", :;. .... r 1"6124 W 8,.,,,,, II<! 5,.,,,,,, WI5]OO1; 

V"'",O .... Nl6991 10l0i. •• " '" .... <a., •. \Yl54lil1 

w",n,mW\. ~"""'. ~11&S!_rM, "",.,.<<IO,WI3411! 

WM'. , llt><I. la6)) Ao<.r" . D." .... '~ 1", SOlOS 

Wit.", ....... ~ .. I. 118H"~M (U'" (ltv, WI 51801 

WUco. , M. ,t 16I8 r W<>Cf .... . ~. ~1Ii<Ot. W' S'llB 

w_.n~._ 111~""'_(OO" ~tw<otW'S.IU 

W<><"ol..o.s- '11 M"'h ..... 5. Chi""n, W1 5l014 

W""~I ~ .. okI '11 M' nh",," 51 Ch,ken. WIIlO!' 

Amll«l",K.,f'i l89(1~'~ Rd_ ..... nlNI. W' SOl16 

~R"h".! lU16I. CounIVHwr. Y MW.lcot, W' SOlIS 

B.bo. Btl •• 6066 Ctv lid. NN lItOnl"'. Wl ~41M 

IIoK/o.,OL e""".II<. 81117 ("''"'1 n: W G' .. ",o'f. WI .... 116 

CI.II,'otr>t< lauonoC! G,"O 8 ..... WI 541.1 

~.8.",. 11131' r"",. ~ Rd K .... U(I .. , w, .... 116 

(:Om" ...... a.,Ioo,. 1_fO~""'d O .. m .. '" WI >OllIS 

Crott>. at .... , illS "' •• It ...... (; ... n S ..... WI s.<lO) 

Page I S 
1158 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1103

DI"~.~h"', W.~0'1 cr,., ~...,..H CNIt..,.WI ~lO.4 

[",.ft" l09lOl_Rd M ... ,bolWI54121 

f ......... " 10I G"~"_ K .... .." .. , WI .... 116 

f<lll.,.R_' H JJOII\ A, •. 0 • ., Ulo, WI 1400\ 

G",bo,Il,S,""" 2lSIJ MNd ... ~ ~". O . ..... WI 5otl U 

H.II .... ,I lilHt,.do. 0." ... ~, W, $4001 

J"Q" ... ~b!< 18JH O .. I<I.S, G ... n e.,. 'M 54)(1.1 

j.,. ... , g,i." "0. 1I<I. 46J m~ort U k •• WI 1]010 

K"I,8i1 lIUO"' !i1. Two IliwrJ, WI !.41Al 

Klug.ll<lb W 4804 Ct •• " A ,'~o. WI 1]()9] 

&n.at, BlIGDi<l<JMofIRd G,,,,;~,'. W, '1-1116 

""'1'1'."_', OIJ179 ~. S ..... O~ .. Chi' ...... W, 13014 

~ __ ... a,ocI 160) S""""""OoIh 011 .. W ......... WI 

N.,..,.,. S.d~ 1114 (OU"ly ~d I:) c", .. uk •. W, 501005 

Obon, M.", <191 C-oo-I>« .. "wn Rd, Pt ..... '" WI '1-1108 

P"~'. 6"," WJ~WCu_1W "~"'''.WI54I<9 

P"_"JohOnn. 13911 0","'0.- M",""", W15<1I8 

P<lCP.8""" 31S6 M. , I."" 0. P ... . Wl54IlS 

Po~P. ,...., Wi81] C"",,"" Chiloo". WI 11OlO 

'ooopt. ail 'l'J'IPoiI<S, l;'lIOChu ... WI 54100 

I~.- l'JM1100. ~ .. £ ..... okI.WI540!J 

><h..,. •• Bonl>""" 6USH>gho,iew Od 0.''''''''. Wi 'l-'1OII 

\<h' ....... " ..... llll B.,."" .. od rwo~,",,~ WI suO! 

"" 'bo, B . ... 'B16,n,h lid 'w •• _~ WI 54101 

5<." ..... e.I, " 7~1 «><Jot, .... 110 G .... ". •• I. W' IU16 

s .. « .... r .... tll8l7 «><Jq" Th",1. e ~ ... ~'>4l16 

,,,_90-" J16J61n". Ct G, .. n I., . WI ~101 

1I1~.F'."" ~OI!" s."" ~.,.. G ......... WII4L16 

'''n"" 1Itt"". 1'16 1Cou!)"I1<1~~ CUb.> rlly, W. 51801 

V.n &eek, &;1m 64S\G_."d O...., .. k, WI 14108 

nGoeI ....... a, .. <IO Hl1I101 ..... nH .. k<I (_. "" ... , WI54116 

~.nllo!.,"",,"'fI 68i0"'''''''~d G" ...... , WI '>-IlZ6 

n""" ~.". b •• o JS611lOl .... Mor M. G .......... ~ '>-1116 

" .. n ... J.tl" 2166 S. """,lI(Ioy 0< G ... nB,v.WI5-f)11 

110· 1· ...... _ 1146 Counll' 1I0o<I HI! ("110 (111'. WI5"l81l1 

1'0'''''''.''' NUWCtyTrt;8 ~_'U<>H.. WI 5'216 

Wendl."".I11 ... ". 3197"' ~M G ........ " WI !o<i1l6 l_.,B ... <IO WUI~ WipI<r Rd CIIt"cn. WI S101' 

B •• ~. R.1lK<;o 4ot'OJowol'_ J>I.".-.W'H81S 

B".JoIl,O'j C W'III\O(_t,R ... d~ CN""". WI SlOlO 

Bom""",",. C ..". 18(lO/W ("Rd.t f_'-'II~. WI SlSl6 

BMfllkJ.C')<I' 67.,SIoI..Rd GINnl ... l. WI '1-'116 

8,.Uf)O~ COllin 1l16SUt~St M",,,,,,,<K. WI !'110 

a<IU. D.n i1J4 W."",_ Rd G, .. fli of.ol. WI '>-1116 

Page I 6 
1159 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1104

0", •• [)on. llPC", Ad P a.., ub. WI 'WOO~ 

D.oot.~" 6192Doo1ofOr. llo...,.,,,. WI .HOI 

£poI."'. Iri< IUO' """~I"," Aood NotwaJl:.,WI ~~," $ 

f"'-""e. ColI""" 610H .... A ... d G,"." ' I. W, S4U6 

o.~, (.on dv W4011-1iW'f-1 I' i~ Wt o;.o'1 9 

HO(o.. I!.r"". IOIl-lS .... .. _ G,"fIi .... !. WI S.1I6 

Jo~<»o" Co,1 l!l'l) w.,,1do Ad. G' .. "'9!. WI ~U16 

"!.I. C." .. 1,15 . ..... ~""I' ~ ... A uOQ.tof, WI 511ll 

(I .. ,',le 'Sl >. i,n 511~1 10 .. ",.11<. WI S)S)6 

"", ...... H l,lHf"",Ao;r<l G, .. ", •• !. WI S41 I6 

"_ .... c.~ 0419I!o'~iIC. 1!oI"'" Roild 0. P., •• Wi ..... l.lS 

".", .... 1.<>. CINI, l~S)IIOO'A ... 1""">1<1. W, 5401l 

u,",'OII.t.oInv 1019"" Me ..... , Dt. W .. , Be<><l. WI SlOOQ 

,-"lc'. CI>IISI, l!l4O H'~ Ro.>d G, •• ", .. ,. WI "'U6 

"',,,,,nO<!. Ow'> WSJ6E f.,o 5",lnp Ad Hj~ WI""129 

M ... ,.("*'>'I W61'9 COlI." A"... Y 8"""ru.iti. Wi SJ006 

MitOl • • a ....... ' 18-062901n 5, E ...... OI. W' 0;.0013 

P ..... C!Ir .. ,,"" Nl'i>I Town H. a.o ~_"_. WI SoOni 

Poh .. _. ",," UOli ... ""bu.. R .... """'"=01. WI 0;.1118 .""Vj co,,,,H Wlt66 C"""'" ~ .. " .... ~ 00<1,,,,,. WI SJOI' 

I<"""l,~. l o66Oy .dl Olonwood dt\>. WI "'OJ) 

ioit,CI"" W4821 DIe'.ood ChiI_. WI SlIII4 

iop<, .. d. (,". WllIOC".dN ", Wi >lOll 

.... ~',M .. p'.' NSIIl'IMoo"''''''' HllbM. WISOll!1 

S!." ..... CoII< ... '2'lOCTVRDW G .... .(. WI ~U16 

oeI".'~"" 1161 eou.-. ... ~o W ..... ", ... 1. W, SU16 

r""., .. m.n. <h~ 2U6~HI"" c .... 0 .... W. 56J801 

"mu.·.' ......... 13~B'OMM G, ••• , •• ,. WI ~4 116 

V.nG ........... Clfol N26~1, H...,..l (_Iun ... WI .... 116 

V.ns..,.,. , ~".C<I N68~1 flm Ad Hi!bOr!. WI .... 1l9 

""." lIoos"l. 00,0IY" 1009 Chotln SI. 1,,,10 01.". WI S4HO 

~.""""" ... n, '<>SI1uo 36StM;UR_ G"."'"I. \\/1 .... 116 

v ..... e".~ .... lOll P.", ~o G,"", .. I. WO !.OIl6 

Vo.I ... , CUr! ll890yW G,"", .. I. W' !.OIl6 

w.nd •• lIN« 1911 "F''''''' G, ••• ,.,.1, W' ~ U6 

-.- II,. W.......,. II<! G,"",.,.l, WI ~U6 

"'i.."0..". .. 4SOl 1,1," M (hilton. WI 5JOI' 

~ .... ,,,,,,.g- 21l~~""'61 D .. 'P 'I WI~1 

....... '<O<\.EtIc 513 ~,.Il G'H. 8 ••• Wt ... 1II1 

""'1<'1'. D.,,,. J810!.<llm'll, Rd ~", •• WI"'U5 

Bo<o~o.l." , .. 2 .. SI." .. ..,.1I two Ri ...... WI $42 .. 

B. r ... Wi.., 16421 H""' .'2 '_AI ..... WI !.O2 .. 

!II ... .", C""nlo 1.91W. " .... ~d. 11<;11100. WO .... 110 

c.oItm.on, ...... '" 610;.0A.fI<o,, . G,"fIi .. !. WI S.n6 

Pag!! I 7 
1160 


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a..~"'n.O .. n 11M Wl>«I ... ln 5. c. ... ,,;.. W. 5l~1I 

CooI<.o. .. I<I(; WUIMC"""tyRdv B'_"'~". WI S.lOO6 

~~,At>Ic~ I~SOCtYRMdPP G'NfIi .. t W'. SOIlG 

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C.,"",.". r",' ~ 61~ RofIH. Rd. G'.M~". WI ~116 

{Nk'.""o. 1(0,,,,, ,g'>O~_iO OtOM, .t. W'~lOll 

Cook, k.",O W6JOoo c"""" M V EIr_~ • .n'Ie. W, Sl0(J6 

" .. mOf. ~."", lOUP .. -..pt.· ..... W.u"" ...... W. 

0 .... ,. H~ ", 'JOl Ct, H ... H Cub.> C;1V. W. ~1801 

D.ltor. .O<\' .lIG1U.~ .... ~ Cub.> <;;'". WI 53801 

DirIIJ~C'-vl '001 "''11'' Cor ..... RooO ~ •• W'''lIS 

EII/I"" . ~.,,,,, 111121011> 51 0«. P . ... , W. \.4001 

!n~oo..lM"" 1f>9SJ k....., ,_ 0 ... ". WI SUI. 

[nl,l .... .SJOoo .... OJ,,. Rd M .. _WI~U2J 

GO"""<I'I, M.,III. l7l2 cmllno 0 " G",n'>\" WI ><)11 

G",,,,,,~I 1IoIo 1250 MUd""'!\ideO Orw. Dt~ ... WI"'lS 

H._~,hJ"" 14S10Cr" .. ,.,..O, Mi,hi''''. Wls.n3 

'''''''!<-kII.'''" GS'I HwyW G .... ,,~,. WI $<lUG 

, ...... 1<>"',. R<Ifl!!' ~lOlO ('. Tou", 8 ~_ ....... , WI S'216 

;o'''' , ..,..n IiGC W10lOQ '''' Cr<ofk '" Io<h" .. , WI :iJ017 

~"''''''' .'l'''' '' 1116 Ro<,leoce_' M~"'''', WIS'128 

l.~.,," ... , Dio1lllo .101 S, WoI>"., ..... Ot ., WI~I'S 

, .. ",.W.".. 1JI6280101< 0.0, ...... WI.!>OoOO> 

M.n ... w •. f",L~ 1l1B .... C .. .,.IRd ~;... Wl33Or11 

""GM. To"" 120 eoooll' ~Oo>d 0 Gioowood City. WI ~ll 

M~"._1 lOoo6~ ... o.h ...... S~.Wl310 U 

1I._".M.ry W}O'J!; ...... ory . ROo>d (;1,;,.." WI BOI' 

' 0" .. , '10111 Wl6WC">1~' ~. >O'l>o<t. Wt 501119 

RoO.", • ...,. S'><v W109~ C.~ Rd [<1«1. WI5X11~ 

R"""',PaI Jill Mo,';10<1 ft. G, .. ftl .. " WI S4116 

~'_I,~o'"y N266S S H.mpi< ft. o\.ppI<-I"", Wt \491' 

SU""';.!i~ .l211 1'1_10"" M, G",nl .. !, WI S41l6 

~k'-''''''Y ~]l&fo,,,' M ••• ,,,,, C. G, •• "~. WIS4)I] 

5' .. " ....... S70S. I.tn<Olo 5\ MO"Ii<e~o, WI 53510 

, .. " .... G .. ' V 296\ c.,""tYM ~I! Cu ... Oil', WI 53807 

VOl! DoH. r .... 6OSIG..." ...... ~. t>o...,,,~. WI S4~ 

V. n II ......... , ... 3~1tiHI~ft" .. G, .. " IH! "I' So!U6 

V, n2 .. 1ar>d, rr .... 7Jn;Cou~tY_ pp G, •• "IN'. W' S41l6 

V.,b<1 .... D<KOII,y 7GCl S</ow.hn ~Oo>d G,"olHf, WI S41l6 

WoI1<t,Cothv 70'1LOld Hwyn Go •• "IN'. WI 501116 

Woi1<I. M.rI:. 70'1LOId~W"l37 G, .. nlN'. WilAIl6 

WII«>"' ....... 26181100 C,ook. Rd M)!hO: .... WI 'A218 

ll'80Io.uo,. G.,,,,, ""4il~wy n Ch~""'. Wt UQI' 

HolT""'". ft,." &on GIo.....,... Rd llt"~\ .... WI 141011 

ott .. ,lat.>ho", '~I7I<J., Rd. i>Lo " '>'iiIe. W>UI18 

I""'....,., s.,,; IW9 M'.l'lNWn' '" w •• , 8."". W+5JO'IO 

1M, !<.>Ihv ISlas h'lWII, "d "'_WlS.l1A 

Pa8" t 20 
1173 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1119

AprH 26111. 2012 

P.O. eo~ Sa9 

Moo,oe, MI _SI61 

PMne' (7lo4) 682 .... 000 

Fall: (73<1) 'n9 .... ~ 

~~n!_,~ 

De~r Memebers o! V ,S. HoUse o! Represlmtatives WaY5 and Mean~ Commiltl'e. 

VENTOWER Industric~ . .. u!ility·soolc Wind to'I'VC'f /TIilnUfilctUrcr b(l.-.cd In Monroe. 

M'chigan urgei Congre'i$ to e~tend the 'ene"Wable energy proollclion ta~ (;fool! (PTC) as 

qulcicly a, possible. 

As iI start·up company and Ihe only Wln<l tower manufacturer in Michigan. the PTC " 

critical \0 sUstainIng our m<IIT)l!fltum and ensuring contlnuoo growth. VENTOWER was 

incorporated In 2008 and mad~ a $25 million dollar investment in Monroe. 1.41 \0 

construct and operate s!ale of the art wind tUrbine tower mllnufacturlng fachity. OU,,"g 

cons\fuction period which started in March o! 2010 and Wa'i substatialy completed In 

August of 2011, the projKt ae3ted over 100 construction jobs. ~urr~nlfy employs 46 

people and has the potential to staff 150 pos~ian$ at ioU capacity. 

VENTOWER Industries wor.dorce currently consists 01 10% U.S, Armed Serviee 

vete,ans and produced new lObS for 20 unemployed persons. Furthermore, 15 of ou, 

employees have Oeen IIble \0 significanll;r improve Of completely change their ~ocal;OO 

tnrough ca'eer training al \fade scllools, community colleges or universi~es. Futit1er, 4 

of our employee& who &ought work out~ de of Michigan (lue to adve'&!! ecQnomiG 

conditions we,e able 10 return due 10 opportun~ es Cfeated by VENTOWER. 

Witll the. uncertainty of tna PTC"s future, our ptesent and pending custome's ~re 

reluctanl to ~an bOil! &ho'Herm and lonl/·te,m projKts. Tnls undermin<les our ability 10 

,eacn capacity and places our business and eXlSt ~ employees in j&opa,dy_ 

On behalf of all of us al VENTOWER lli"ongly urge this committee to lake up an 

extension of the renewaDle energy proollCtion tax crecm as soon as possible 

Respectfully. 

Gregory Adanin 

Presiden~ and Cf .. ef Executive Office! 

VENTOWER Indust'ies 

111 Borchurt Park On~e 

P.O. Box 589 

Momoe, MI48151 

(734) 662 4005 

lIad ",n@ row~' .COm 

ventowef.com 
1174 

Statement of Vermonters for Clean Environment 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1120

U.S. HouS!! of Represent atives 

Committee on Ways and Means 

Subcommittee o n Select Revenue Measures 

April 26, 2012 - Hearing on Certain Expiring Ta~ Provisions 

Comments Submitted for the Re cord 

The .. nders.gned esld~nr. ~nd prop~r v owners oflhe SLUe of Vl'1'mon l respe ctf .. lly submit th"-je 

comments In response 10 Ihe April 26. 2012 HearIng on Certain hplrlngTax Provisions. 0 .. , 

commenl. are limited 10 the ProducIlon Tax Credit (PTC) fo. wind en",IV. 

Executive Summa ry: The PTC Is often credited tor most of th~ growth In the wind sector but 

aurlbuting miO.ket a ctlyay to the subsidy i. O\'erly simplistic .nd ~i ls 10 conside, other cr .. cia l 

fdelo" drivin8 de yelopment. When eyal .. ated asaimt key eco nomic ~nd environment criteria, the 

cost of the s .. bsidV has proven n<",sive a nd the benefits 10 America n liI.paye .. mInimal. If the PTC 

were to e~pj.e, the economIC!) of tile Industry wou ld shifl to States wlt~ renewable maMd ates. 

Power markets will .. Itim.lely (onlrOnl the real cOSI 01 wind enersv, and price it accordin8lv. The 

overall impact on the industry would be far less severe than p'oponents claim'. 

Supportlnl Stll1emenu, 

HI8h Cost: Since ado pled in 1992, the CPSI of the PTC for wind energy has ballppned from $5 

million/ve..r in 1998 to $1.5 billion ann .. allv today. The open·ended subSidy of 2.2C/kWh In after-tax 

income .epre , e nts a pre-,ax value of ~pp,o"imately 3.lC/kWh. In many region. of rhe country ,he 

PTe now equa l •. o. I~ 8realer tniln. t he wllDle.ille price of powe •. Eve.,,, the PTe were to ... ruer. 

taxpayers are .tlll obligated 10 ctnIe' nearly $10 billion in tax credit> for wind projects built in the 

~SI decade. Thi~ I. in addition to ,ne $15 biliion debt for wind projects e ligibl e under Section 1&03 

{including 3ntitlpat~d 2012 granlsl. 

I.,elncient: Since th e PTe Is unifo rm across the cou ntry it is highlV ioe fficie"t, suppo rting poo rly 

sited de velopment in some 3.ea, wh ile In olher area s , .. ppom"8 projects ,hal would have been 

bull' .ega.dle" of ' he c.edit. Th is is tr .. e in Tuas and the Pacific Nonhwesl where wInd capaclly 

e~ceeds transmissio n tirpadtv and Wind Is ,urtailed'. In New England the PTe likely pays mO ... 

subsidy than is neces.ary owing to auressiveSnre mandates. Utllitie. in New England routinely 

sign long·term power contracts for wind at prices significantly above ma,kel. 

Other filctors advanci ng wlod development: The ind .. st .... In,ists U', it risk of a slow·down without 

the PTC Th& view ignores o lher crucial faclors drivlnl develoomenl lncl ud,ng ,tale mandate. and 

natural ga, price,. Ills /101 possib le giv~n available dala to Identify the e>le nt 10 which the PTe ha, 

cOl'1rib,,' ed 10 growth In the sector'. In fact. demand for wl"o nas .. roded rlXellllv due. In part, 10 

, Uno ..... oul. lOll C<>nI:'""'o",,' T."irnony ~"p :If><Wn< """"".;t""" "" '"'III'Ubc<>",,,,',,e •. '",,e,,,'go1lOO ."~ · oveni""·."0c0mrn" .. e ...... '!"I ·."~ ... """"""'.r "El%8O%~3·jolnN"'.rI". 

, WI"" 0,," 8o~"J'" 1010 Wi"" Ttch/lO'oqin l.IQ,*~1 ~, (1011) IIiI ~tlP:JI •• I~. t>I.JOIIle"'_""''''''t''' .... ,_ 

48lo..~f 

• J,,'N C"",,,,i"'e "" r.''''IOO, I>rt!,on, ,,, ... "04 6rxkq""''''' 1'010-'''19 To To. '~it1 fat !~<frl<H~ Pr<>du<li<><> f"'''' I'"""wub'" x-<P. (1005) 14 "tlp."t/WWW.f<t.I<W/.,....i<.tIon'.I"ml'lfu"".".,,<Io""'&'d.157g 

Pase ! 1 
1175 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1121

slates meellng Iheir renewable m~ndaleS, Lower naw",1 ga~ prices further reduced wind', 

allr.aCliveness3s a 'fuel s~ver'. The EIA now forec~us /Ial growlh in Ihe wind seClor for Ihis dIKade 

regardle" 0/ what happens wilh Ihe PTe'. 

Job losses: Despite billions In publk fu nding the wind .ector .... perienced a nello" of 10.000 direct 

and indirect job!> In 2010 brinsing the total 10 7S,OOO' jobs. MCI5\ olthe remaining jobs are 

temporarv construction posltio", requiring pea~ 1"""ls of dew!opmenl yt>ar-alter'y,!ar to maint ain 

current levels. Al tempts to altrlbute job creation to Ihe PTC must be tempered with corresponding 

job lones due 10 higher renewable energy prices. Th e Slate of Vermont found lhat adding just 50 

MW, of renewable energy at highe r-than-market electrkity pri,,,, "had Ihe delet"nous effects of 

reshuttling [onsumer !>pending and in(rea,lne the cost 01 production farVe/mont buslne"e.·.· Last 

year, rura l ele'lrk: ratepayers In Mlnnesola paid more.than S70 million In above· market energy 

prlc", due to the high [o,lol wind'. 

Environmental benelil$: Wind energy i, an unpredict able, variable resource tha t c~nnot be relied 

on to ~rve load. Its prim.!rv benefit I, In reducing U.S. electric carbon emissions. According Ihe 

av,g~nll, a lour year eKtension 01 the PTC could ~void an incremema l 170 million tam of C02 This 

"best case" estimate is not predica ted on an actual wor~ing grid region, but II we accept Nav isant" 

i!sHmate Ih~ 'OSlto taxpayers IS alleast S23jlon C02', ten-llmeithe $1,92/ton market price for 

olfsets in th" Northea"ern .tales partkl~ "3t ;ng In RGGli The PTC i'"3 high-prk"d vehicle for ve...,. 

questionable redUctions of C02 emissions. 

Conclusion: The key question is whether the benelits of the PTe for wind are wort~ Ihe COlt. This 

20'Ve~r old subsidy is eKlM'n,ive, inefficienl, h~, failed 10 produc" net_job "><"" •• e<tllal are 

~u"ainable, and the cost applied per Ion 01 C02 Is more than l Ox the m~rkcl proce 01 carbon under 

RGGI. The U.s. power markel has undergone signlflcanl change since tile PTC WaS adopted, 

Includi ng de regulation. It is not FIOuible 10 isolate the e~ i!ntto which the PTC contributes to wind 

sector gfowth''', Without the PTe, project economks would shlfl lO states with RPS policies, The 

value of renewable ((edits might rise in respon~ but power markets will ultimalelv confront the 

real cost of wind energy, and price it according IV. 

• W, .. ' on, 8oIi"i~" - "<>1'" No ;n.Iel"'"""'" .""ito ~.;" '0 «",r~", job CO\JnU, S''''' ... ". nO", j<>b i<J the olo<\ridty 

•• <:10< mu<I <o"'';'''ne '0 in"~ .. I,,, tile «'" of eif'C"idl'l, ,,.. ..... ., ... """""mlede->1I",uM. 

• vr IlI'S, ~ £cmo",,* Im"""rs of VH,"onr FNd Ir1 'arilt< 120C)9111 

~"pJlpubl~"."""" ,,o'lpQ""'"alOf'!;"~OWM~"llll'~~lQfeed"2(>ft'UOTJrflf.pdr 

, wall SI .. .,. _",.1 Gotlg.d loy t~ Wind ( ..... . lOlll 

h'''' II"" ~, ... >j,,,,,,,,, ''Kle~IOOO14l>1QSI1Ol10159Z404511J6U44O\l6391420_h'mllmod· ""IIt .... \Oo. " .... i 

• N.wI(""' 1I'0001d .. "0 de!aiI oro ",,*1, <l<!tetn1I""d 0_'. Study .. ..,"' •• .."". wT"d tnfolt wj,hO"' tile PIC .... 0"'. 1oo~<I .. l<ott ....... "'. 1 ~~i' "" ... 4 ."." ('OIJ.1G). n,., .0., .... off .. , i> "",..,,,. 1'. hiBh., ,,-, ~nlt"". 
1176 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1122

Supplemental Sheet 

Su bmiuell by: Aru;~tt~ Smjth 

Ve rmonte" lor . (Ieane. EnvjrOnment 

789 Baloer Broolo Ro"d, Oanb~, VTOS]39 

802-44(,·2094 

Oal," . ubm!tted : M.y 10, 2012 

Commen!. submitted on behalf oflhe following residen" ollhe Sla" of Vermont: 

»f1Ih V~ke Micha el M~mmoUti ShaunHn Groul 

22 Avon lid 1(, High St, Klnn~y Hill Road. 

Chester, VT 05143 V~rgenn"<. VT OS4~1 Newa,k, VT OS871 

5tevt legge. )r Jan CIaU.!nl Eli,abeth GroUI 

210Hay,,<lId lIall farm Road 46~ Kinnev f1~1 Aoad, 

Ki,bV, VT 05824 Newark. VT 05871 N~w.rk, VT 05871 

Alan C. Gun.f<on ~en Moriarty Jillian h nvel> 

4375 Roule 30 NOrlh 2272 Mye,sRd Sheldon Brook Road. 

Bomoseen, VT 05732 Shaft,t>u!y, VTOS262 ly~dorrvn eVT 

AllenG,out (andke •. Shaffer Mike Man,mann 

465 Kinney I-lill Rd. 701 Long Rd, 413 Burke HoUow Rd 

New.rk, VT OSg71 Wal!,';"Id, VT 0567] East BurhVT 

Pauy Mannlne M~uld. Tu,ok Steven B,ody 

92 Brook. Road 170 Spoone, Point Rd , 627 West Field, 

IIIDflhlield, VTOS663 Ca~llelDt1 VT 05735 Manche.ter, VTOS254 

SeDU MaMini Silvi3 M Hay Marlo']e Kram ... 

92 Brook.< Road 375 Howard Brpok Rd 1893 Valley Ro,d 

N""Mield, VT 05&63 NeW' .. ,k, VT osen lowell, VT 05847 

S:ilndr. Fln~ MIChel. Ke llogg Aon'" l>Imb~J1on 

480G~n''''' Hill [a" 1'>113 Pleasant SL 9 North Sire .. ! 

HUbbardton. VT05132 W •• , Rutland. VT Middletown Spring., \IT 

MIchael Horner David Howe Donald Nelson 

480 Ginlon Hill Rd 635h. ~evOr. PO 80. In 

Hubbardton, VT 05732 Wallsneld. VT 05673 Albany. VT 05820 

lorraine M.lItl~ Avril Howe Shi,iev Neloon 

51 Strawberry Hill 63SMrkeyDr, PO 110.192 

lyndonl/ille. VT 05851 Waitsfield, VT 0~6n Albany, Vf 05820 

Fr~n<i.l-le.ley leah G,out Geor,e. BaStlM 

184Z 1,land Pond Rd 71 Kinney HIli Road 1747 Cormie, Nd. 

Newark, VT 05871 Newark, vr OS871 Oan\l1lle, VT 05828 

Page I 3 
1177 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1123

\lir&ini~ 8Jltien Al e~ M. Hit<hcot.k Eh13belh Coopef" 

1747 Cormie r Rd .. 384 HiIChrock Rd. 4911""", & Tree~ lan~ 

Danville VT 05828 Pin.ford. VT Middletown Sprin8S. \IT 

Jose~ 1'(0t> cynthl. Elarb<.r Katie Ander>on 

73 5~adv l;!M 1417 Maple Ridge PO 60. 199 

New.~. VT 05871 Newark. VTOS871 East Burh. \lT05831 

M3110ry J.",b Vi(kl 8,onson lind. W. 5aparolf 

n ShadVYne 604 Barnum Road U9 Saparoff Yne 

New.~. \IT OS811 BriStol. VTOS443 B. ' ten. \IT 

{,in GrOUI ,1010 Pritchard Gera ld R. Saporoff. M.D. 

71 Kinnev H,U Ro.d lJS CoI~mbJa 0 ....... 129 S.p.rofl lane 

New.~. vr 05871 Hubbardton, vr Barton. VT 

Tim & Joan King Unda Pritd""d Rob Pfonh~(mer 

1991 Cenle, Pond Rd. 335 ColumbIa Dr"'e. 339 Mich.ud Dr 

NeWil~. \IT 05871 Hubbardl"". VT Sulton, \IT 05867 

tdWesolow Stephen Thu"lon Lol.Maple 

179B Min,,, Rd. 89 Di<lmond 1,I.nd In 221 EuriCh f.rm R".,d 

t.owell. VT 05847 Ferri,bur,h, VT054S6 Wail.fie ld, \IT 05673 

Rvan Deppert MatV Pema l Roge. Maple 

166 Morgan Rd. 2611 H.mlHhi", Hol low ~d .. 221 [uriclt firm R".,d 

Tl nmouth. lIT OH77 llllne , VT Waitsfield, lIT OS673 

laM Dtppett Tt~nnv Robb Christie Wright 

1 66 MO'i.n Road 19 Michaud D •. 4247 Whipp ~ Hollow 

T1nmoulh, VT 05771 Sulton lIT OSS67 FIOtence . \IT 05744 

Ma rsol Kemp"" Del"n Wamer ~kh.rd Chapman 

l!U Town Form Road 80. lSO 4247 Wh pp ~ Hollow 

W Alban~. lIT 05820 low. lI, lIT 05841 Florence. \IT 05744 

C. Brlan Gluck dl.. 11. Won.en cha~1 Bradlev 

271 GlUCk Rd. 86S Twin Bridse ~aad 1014 Clark HOllow Rd . 

W. GI""~'. \IT O~a7S Holland. VT 05830 Po~l n"V, \IT 

MaDel Houshton Annes,,,-! Pollard Noreen Hession 

668 UI ~ Rd. 2756 No~~S! r Rd. 1224 Em HIli Road 

Cr.ltsbury Common. " £. Hardwkl<. VT OS836 Newa.k. lIT 

laurie Glff Al lison M. C'nuveen,. G,eg Uliu,am 

322 Center"~1 Rd. 1165 Center Pond Rd . 423 EoSI Tlnmoulh Rd. 

Alb.PV, lIT" Newa(k. lIT 05871 Wesl Rutjand. 1fT 

P08,,- 14 
1178 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1124

Eli,tlelh Nason Me,edith Heleh Diare M""ar 

423 ~st nnmouth Rd 40 Church Str~et 2&OWv\le I1IlI 

W~'I RuUand, 'IT tan Hacdwld, 'IT C. ;olt.byl)' Cemmon, VT 

fred '>che l' EIi,.tlelh Champagne £lir>O< Osbern 

1'0 8e~ 182 17C!'IurwSI, "8 IlII> la,t Nation ~<l 

Albany. 'lT05820 St, John,bury. 'IT Q~ft.b~1)' Common. VT 

Kar~n Jenne Sacah'leeel O,oHne 8 •• dJ<"I 

~O 8009B 1117 Mapl~ Hill Road 646 W Tinmollth Rd 

Derby Une 'IT 05130 PI.infif;!d 'IT 05667 Clarendon,1IT 

Aila John.ton Catherine M 5arg\ml DOIJglu B,adley 

HJORT 133 1()<14 Elh." Allen Hgy. 646 W Tlnmoulh Rd 

I .... 1fT 05777 "'eTienne. VT 05491 O.,,,,,don,'11 

Oa.;d Zimmerman Will Young ~erry Lane 

3]01 Rle.122 39~ Kettle F.rm Road 1728 We.t Road 

She rfield, 'IT Westfield, VT 05874 West RUlland, 'IT 

Willem Post Carol Broun. HURh T ~empe, 

1555 Hilt.ide lIoad 91 Ocoeen Eli.abeth ~ •• m In. 243 Beattie Road 

WlXld.lod, VT 0~1 SUllOI', VT SClllh Londonderl'/, VT 

stepne.> Gor",.n c.,,1e Young GleM umllbe ll 

SIl4 Hawk Pine Road 394 Keltle filrm Road 80 Marble 51, 

Norw1d1, IIT05055 Westfield, VT 05874 We.t Rutland, VT 

GlenOa Nye [ji,abelh M. Chl'.ha~1 ~athv Hepbu'n 

~D Boo 1246 84 New Stt~e\ )451 Ha".boro Rd, 

OerbV, VT 05829 N blnv, VT 05820 Walling/o.d, VT 

AlIena J. Ge.hard Anna Mo,.~ Gee'ge H.oII,,'d 

293 Mill Vill~8e Road PO Bo>: 194 3451 Hon.bOfc Rd , 

Craftsbury Cern mOl', VT C.~/ lbury Com men, 'IT W~ltfnglo.d, VT 

M~rth. Richard. George Plumb lynne Kina.bury 

Waitsfield VT 3GS Plumb Rd. 684Cro .. R~d 

W;uhinglo-n. VT 05675 WaltsAeld. IITG51>73 

J.nn a~d Bob "i."n 

1 215 r"mle Rd. Robbin CI~rk Siwi~ llo 

Danville, VT 05828 lO141rish Hili Road 518 Mam Streel 

lowell- VT 05847 We'l Rulland, 

P~ul BrOlJn. " 

92 Queen ilizal>foth F~rm In, Rand.11 Kocl1 Stacy By,ke 

Sutlon, VT 1026 Jac" Hill Road 190 Gr;lIIs Ro~d 

fall (alai •. 'IT C,aflsb",."., VTG5B26 

Pagf. ! 5 
1179 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1125

Dt. S~ndy Miva Luis Garti. Step~.nie Wtjght ~ennedy 

PO BcJl441 4211 Whipple Helllo,", 156 Chu1<!> St. 

C."Ie\on,VT o~ns flo'ene~, vr05144 Rutland, VT 

Oel" .... Gervai, li •• J. Gire;a MI""~~I Gohl 

113 Morg.n Rd 4277 WNpple Hollow lJS 5e1uth M3in S\(~et 

W"I Rutland. VT flo/ene ... VT OH44 l1 rd wid. VT 05843 

Thorn • • W COllY Cjalre Va" Vliet Greg elV."1 

911 Georgi~ Mt Rd 101.schoolhou~e Road PO Bo. 36 

f. ,f~ •. VT New.ri;, VT 05.87J Sh ff,~ld , VT 

Oorls M Co"V Ion DIy I'""ea Mill, 

911 GeOl!i3 Mt Rd lJII17 Maple Rjdge fl,,'ence,VT 

hiri . VT New~tl\, VT 05871 

carol Aldrich 

pfi. Milnes ~ell"V 1,,,11 4110 WMpp le Hollow 

454 M>ddle RII, IS Main Slfeet Horenu.1fT 

N Clare ndon, VT 0!>759 Winooski, VT 

Heidi Rkh 

J.ne Milnes D.vjd P. Wri&hI 1796 (hene~ Ro.d, 

454 Middle Rd. PO Ro. 1001 Lowe ll. VT 

N C1a rendon, VT 05759 Middletown Spring., VT 

Peler Romans 

OeMI lIddV M"/ Y lou WillilS 7 B.rton Dr 

P.O. 800 86 13 Montvert Rd. G,e enl-boro, Vr05841 

Weslfield.1fT Midd letown Spnn(l$.. VT 

Rlc~rd S, CIMII'n 

Je"n UddV Tammie fiJreo 1707 Whippl e Hollow 

P.O. Bo. 86 861 (rO>5 Road flott nt e, VT 05744 

W ... tfleld. vr Ira . VT 05777 

Fred yramie 

~",e" Shaw It .. !!" ft. Turco 544 Btlgo ~o;.d 

POBo.551 867 C,os' Road Cast Itt"", vr osns 

tlardwiek VT O~843 Ir". VT OS777 

~~thy Loramoe 

Mike Nelsen Ch,hlin. MeOonnel1 544 BeI&O o~d 

P.O. 80. 240 1126 Black i~ , Ro~d Castl elon. VT OSn5 

Albany, VT Cr3flSbu~. VT 05826 

Ca,oIe G. Mayo s 

SI •• e E. Wrighl Roby"lnob 104 Connelly Rd 

169 Yeung Road PO Box 23l Cast e~on , 'IT 05715 

Craf~>hury Common. '" (an Burke, VrOSS32 

V.le"e De.m.ral. 

tla"i,on Snapp Vincenl J~cob. Jr. 1517 Brook !load 

113 Benll1l1l Road, PO Bo. 23l West Bur1<f, VT 0587\ 

W3 its!ield, VT 0567 3 Ean Sur~e, VTO!>S32 

Pase. ! 6 
1180 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1126

There,.. B~'~e 

426 Bello Road 

Ca,!leto". VI 05715 

Rober! Me"ner 

488 Wood, Road SoUI~ 

Warr"l1, VTOS614 

Jo~n Aberth 

2074 W~'I Hili Ro~d 

Rod.",,!, VIOS669 

10M Hale 

170 Spooner PoTn! Rd , 

CUllEton, VT 

Paul A. ~enyon 

&99 Frony U1f\e 

B.ldport. VI 

I~ ne G.tn~ow 

736 Mac~. lle lIoad 

Ha,dwick, \IT 

Oa"J Donaid<.on 

114 Old Summer cam" 

Waitsfield, VI 05673 

John Oo".ldlon 

114 Old Summer Camp 

W.llslle ld, VI 05673 

meen ~ennedy 

393 lta!~ nl 51, 

Ne wpon , VT 05855 

Vane". M, Holmll"T" 

1482 GOil Farm R<»d 

Plmlofd VT 

5tonlev M. Shap'ro MO 

2706 III 133 

I •• , VT 05777 

Scotl McLane 

1179 ~o.gla Min, lid, 

f31. .~, VT 

Meloclie Mclane 

1179 Geo.g" Min Rd. 

fal.b., VT 

Laura Blac~ 

595 Fra nk u.rd Rd, 

Sh.ewlbu"!, VI 

Don l1oull~ton 

668 U.le Rd. 

Craftsbury Common, VI 

Richard C HIIC«k 

31 Wlndd.ilne 

Ve"ennes, vr 

Patricia Turn e" GIII 

1369 Mapl~ RidK~ Rd . 

New~'1I, VI 0~71 

lohnJ,GiJI,I,_ 

1369 Maple RTdge lid, 

New.,k, VI 05871 

Sue "Oll~r 

462 E •• I TinmO!llh Rd. 

Well Rutland, VT 

Ed Delln 

2239 Hambot-o 1I0.d, 

Walltnllio.d, VI 05773 

lune _.M P Coo~ 

C'~hlburv Common. VT 

M •• k Whitworth 

1224 East Hill Road 

ew~n.. VI 05871 

E,ie Rosenbloom 

P,O.BoX38S 

Ha"land, VT 

G.lw.v KiMell 

1118 Tn. HigllwaV 16 

Sheffield, VI 05866 

Darb •• a Bristo) 

U18 Tn, .Hsnwav 16 

Sheffield, VI D.SS66 

leff TaVror 

1415 East St""'t 

Oa.endon, VI 

Kate laylOf 

1415 E.<I Street 

CI.'endon, VI 

C •• ol Ge~rv 

2285 Walkef Mo~nt.in 

W""t Rult.lf\d, VT 

I.me, RM, 

Montpelle., Iff 

Nancy Wes\ 

IOHfi Belgo Rd. 

C.slleton, VI 

11m welt, 

1086 BellO lid, 

CiSI ~lo n, VI 

VICIOtTa t anka 

44() 8elgo Rd 

CiSilelen, VI 05735 

Nichol •• Lanko 

44 Bel!o Rd 

Castleton, Vlosns 

lame. M. Tilh-o, 

Palme, Hill Rd. 

Waitsfield VT 05673 

lohn Ge~ry 

128S ~~, Mountaifl 

West RUlland , VI 

Mar.k Py~. 

307 S.die fo" R<:I. 

Pla,nfield, VI 

Page 17 
1181 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1127

OebQr~~ BI'ir 

1190Squ~reRo.d 

[d~n MillS, VT 

john S, l,iccardi 

58 W. 8Ird.e~e E~ . 

<ueton, VT 0511S 

Robert R. Holland, MO 

PO Bo~ 99 

llilsburg. V1 

Stt ph.nit KaplIn 

1026 j~ck Hill Road 

051 CI.i., VTOS65Co 

G.rY Luca,jno 

1105 Bel,o Ro.d 

Cutleton. \1105735 

G~illu<,,'ino 

1,105 Bel,o Ro.d 

Cnlleton.1IT 05735 

k~"el A. Cody 

1143 Hopk,n, Hill Rd . 

I-I.rdwick. VT OSS4J 

Willi"",O",ton 

92 May. Road 

Springfield. vt 

IIllYa Burto" 

92 MilYS Road 

Springfield. V1 

laura Bunon 

92 Mays Road 

Sprln,fi ld . VT 

Bob Michoud 

29 Mlchilud Or, 

Sunon V1 058&7 

Manl~n Healey 

-1842 Isl.nd Pond Rd 

New'rI<.1I1 05871 

Melvin 6 A\drkh 

4770 Whipple Hollow 

f!o'enc~. VT 

fr.nk SL1n e~ 

liT TraditiMS Co.ntlM 

127 won. Club Or. _123 

Bollon, VTOS477 

JimWilbu, 

2920 UndO!< the Mt. M 

Sout~ Londonderry 

Sandy Wilbur 

2920Unde, the Mt, Rd 

South lon<iondeff'y 

MarcP.vllck 

2165 Cente, Pond Road 

New.r~. 'IT 

SI. nley Iw.n,.i 

'>09 Hollow Aoad 

New.r~. VT 

J.m~.lk>lIangn 

509 Hollow Road 

New .... vt 

C.,ol Ma ,,,nl 

2426 ColII~,vilie ROiId 

(,.rl5bu'V. V1 05626 

F"rn~ Fai"" 

PO 80:0- III 

194 Wood la~e 

81i1~don. 'IT 05733 

lin thrlllla"a 

558] Whipple liollow Rd 

FI"re~<e. VT 05144 

Than Ch';,lian. 

5583 Whlpp)," I-Iollow Rd 

Flo<ence. VT 05744 

Mike Gechi 

&448 Whlppl. liollllw Ro.d 

Flortnce, VT 

Ann Marie Ougg~1l 

1429 Maple Ridge Rd. 

Newa,k \lTOS871 

Robert Dugsa" 

]4Z9 Maple Ridge Rd. 

New.rkVTOS871 

KillhlH~ GedJa 

&448 Wklppl. H"lIow Read 

Fle'enc". VT 05744 

Chli, s,;w,"" 

1498 Aboollliill M . 

New.,k, VTOS811 

Clndv Sawlck, 

1498 Abbollliil\ Rd . 

Newark, vr05871 

Pam :5<)kor 

l~S Stm! Forest Road 

We't Rulland VT 05777 

(orl SoI:ol 

ISS State Forest Ro.d 

We,t Ru\land 'IT 05777 

Annette Smith 

789 B~kt, 8,<)Ok Ro,d 

Danbv. lIT 05739 

C.roie Naquin 

Wl North 5lrtet 

Montpelier. VT 

Pa,e.! 8 
1182 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1128

Vestas. 

Written Comments for the Record: Hearing for Certain 

Expiring Tax Credits 

House Ways & Means Subcommittee on Select Revenue Measures 

April 26, 2012 
1183 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1129

Pag.2of. 

Thank you lor ttle opportunily 10 provide writlen comments lor the record on tile hearing tleld in the 

sub&omml1!ee on Apnl 26, 2012. on e~p;ring ta~ jlfovi,ions. On behalf olltJe 3,000 U.S. 

emptoye(l$ al Veslas, I urge an immediate ~ten5ion of the renewable energy Produdion Tu 

Credit (PTC). Extending ttJe PTC will en~ure ttJe continued development ofwlnd energy ~nd the 

dome..tic nul~ctureof Wind turbine~ that willle~d 10 II he~lttlier economle and energy future for 

America. 

Wind energy Is II SIJCCe" &tol)' of which Coogle" can be proud. The PTe hn been II very 

elle<:Iive 100110 drlvi~ II new .",ergy economy in AmerICa Due largely 10 the PTC. the wind 

induslry now represents a manufaclUring base Ihat empklys tens 0/ thousands 01 U,S W01"kers in 

tligh-wage, high·s~"1 jobs across Ihe COUnl1)' Predictable, Iong·term la~ and energy policies are 

critical to Ihe cOntinUed grOWlh of w'nd energy a5 a low·cosl <:!omltStic soulce 01 ~eclticily in Ihe 

U.S. 

Ves"'s Is the sl!COIld largest wind turbine manufadure. in the U.S. and Ihe number·one global 

wind manufacture<", a9 measliled by wind turbines installed. We design, manufacture and su~fy 

wind turblnes for wind power planls arouml the world, and are prOUd 10 be e sign;(.cant part oI tha 

manUlaclUring renaiss.ance happening in Ihls counlry. We do not develop or own Wind power 

plants in North America. 

Ttl<! Ve,tas parent OtganiUltion is bilsed In Denmark With a lOO·year h,story of making t>eavy 

equIpment. Ou, U,S. headquartefsare In Portland. Oregon. and our presence 1$fett In nearty 40 

U.S. !.tate~. Our U.S. opera~ons Include: 

Four manufacturtng facilities producing indust'ial-scale hlades, nacellfls amllowef" 

Three technology re&earch and cevelojlmenl lacllities 

~rvicing more than 4,000 wind turbines al more Ihan 100 wind parb 

20 wnstruction sit"s in I I s!ale ~ 1n 2012 

Warehouse and repelr fac1!Tties 

Proculllment of suppUes and wmponents 

Sales and back-olfrce organizat>on 

We have been doing bUSiness In the U.S. for fTlOre thaI' 30 yeaf$, supplyinll more than 11 .000 

Wi'1d turbines ]n 26 states Th15 represent.s mOle Illan 9.600 MW of new. clea'1, secore: domesoc 

el)ergy supply prov'dill!l enough e4eclncity to POWef about 2 II million Amellcan homes. 

Economic Impact of the PTC 

From 2008 to 2011, the U.S. experienced an enormous inaea,.., In Wind e""'gfdev"iopmenl 

This three-year windoW wilh consistent tal policy in place has been the Iorlgest timelrame the 

industl)' has ever had to make: investment decisionl, Invntments in WInd energy have been 

between $10 bilijon to $20 billion per yeallince: 2006, 

During this period, there tlai been a signmcant increase In domestic Wind energy manufacturing 

caPKity. largely due to the stab11ily of the Ionger·term lax policy regime. Ve$tas alont! constructed 

four manulaClUring facilities and our technology and research centefS, and develope<! Olil entire 

supply chaIn. investing more than $1 Dil lion in the U.S. economy. 

Our Amelican manufacturing base not only serves lhe U.S. market. bulalso eJCports products to 

Canada. MeJCico. and Brazil. among other countries. The PTC hilS helped drive our American 

export business. With the robust U.S. wind market ertQoodered by th e PTC. we we'e able !o size 

our manufacturing piaI'll where we could support an expotl market 100. 

We are proud to employ more than 1 .BOO Americans a! our Colomdo facilities, aimOlI1 aQ of whom 

were hired from 200B to the present AI fuU operat'ng capacity. those /ac!ones can employ more 
1184 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1130

P"!Ie301 . 

than 2.500 people These are ski~ed·labor pos~;ons that pay competiti~e wages wilh generous 

medical and relirement benerns. Wl1hotJ1 a longer lerm PTC In place. VeslC'ls will nol be able 10 

ramp up these plants to full capacity. Unless cond~ions change. ane' completing Ihe manufacture 

oIturblnes under order for 2012 delivery, we will have 10 make tough dedsions on whether we can 

continue to employ the number of people cunenUy working for us In these plants and in olher U.S 

facilities. 

Veslas elsa creates jobs in rural America. We have more than 800 ski lled lechniclans woo prO'lKle 

!SeN"'e for our in51;111ed turbines. Our Iechnician5 and thair families live and work In fUl'iIl areas 

where the turbines are tyll'ically In$talled - places Ihiit have been hil hard by Ihe economic 

receSilion. 

Wind energy is a major American indUstry, maturing inlo ill mainstream energy source, We at 

Vestas. just like olher miinufacturers. have brought thou .... nd .. of new jobs and balions in nl!!W 

irwe5trnent to Americ:or. 

Long.term Poliq Support Nacusary 

The development cycle "fwind Pfojed~ begins well befor .. the lurbines .. re In~t aUed. PmjeI;t 

conceptualization to comple~on can lake two 10 t~ree years. Wind developers require months 10 

sile the~ projects, negotiate power-pufCllaM! agreements and Obtain necessary permits. Only 

when 11Y!se. prerequisiles are well in hand do tlY!y issue bids for turbines. The turbIne bidding and 

contract neyot!ation proce» o:an take "",nths. Most orders from our ,"",Slom,,,s I re placed at leiiSt 

one year ~ advance of project completior1 because manufacturers need significant lead lime to 

r.ehedule. acqulre and nsemble t~ e lhousands of component part& needed to ooild a wInd turblr1e. 

We buik! wind turbines based on orders from cor customers. and each order Is u~lQue . Once" 

lurbine is bulH. it must be transported to I~e $ile, constructed and tested, Uk., tile construction of 

any mooern power plant. the development of a wind projed ent;oil5 considerable site prepilration 

and ea rt ~· mO\/lng Ol"'ra~on5. complexiogistics. and heavy construction, 

The timellne for pfOject development from turbin" order to a wind farm proou<;ing eleclficity is 

typically 12 to 18 menth$, That does not Indude all of th .. regulatory and ,lling approvals that 

delleiopefs muSI &eCUre beforecomplellng an order With a turbine manufacturer such as 

Vestal. For example, the turbines that Vestas and other manufacturers will deH~e, and inltall by 

the end of2012 Were actually ordered in 2010 and 2011 . 

Vestas has built a supply chaIn stretching from coast-IO-coast. There are mere ttlan 8,000 

component parts in a wind lurbine. Vestn works with more than !lO U.S. ccmponenlS suppliers in 

30 states. Tn.. domestic content of One class of Vestn wind turbines has grown 10 80 percenl, 

and tlla lndusliy average e~ceeds 60 percent. This Is a huge Il)Cfease In tha past lew years and 11 

direct indicator or how many manufacturIng jobs have been created In the United Stites. Theile 

ccmpan!es provide the Ihoos.ands of component pans needed to construC1 a WInd turbine. For 

eKllmp!e. a slgniflCanl amount 01 the steel in our lowers and nacelles is produced in North Carolina 

steel mins, We purchase rubr'canlS, eledric.at CO'f'ponents, arod hydraulics from Teus. Cranes 

and welded materials are rourced OUI of lows. We re<:entty entered Into an agreement 10 

purchaM! gearboKes !rom a supplier tha.t has bui lt a new manulilCturing facility in Georgia_ Each 01 

these suppliers will be dIrectly 'lf1paC1ed if the PTC is not extended, and the communjt~S in whoeh 

I~ey do business will feel the pain "'the downtum In business. 

Exlending the PTC now will allow wind power plant developers to p~ce orders lor 2013 Currently, 

lew. if any, 2013 orders am being placed Thl!; impilCls nol only the manufaclurer but the supply 

chain as weli We o,der COfI1ponent pans base<! on the mar~et We anticipate, often before orders 

are placed Supprlllrs require significant lead tim!! 10 ensur .. they have produced the parts 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1131

necesul}. to meet our customers' needs. When orders slow down due to a looming expl'abo" of 

th" PTC, OU' suppl""s' businesses sufler 

Uncertainly Is Hailing Investment 

Nothing i5 more un\ettling to aUf bus'ne .... than laell of regulalory and fis",,1 certainty. Ve~l~s 

interacts with North Ametican wind developers on ~ daity baSis. A~llOUg~ the PTe does not expir" 

unlit Ihe end of 2012. the imp~cl is being fea MOW. We h~ve IIlready heard from some of tI1e 

largesl wind ~alopels Ihal they will signifICantly reduce - 0' even slop - placing any new turbine; orders unlillhe'e is certainly Ihe PTC will be exlended beyond 2012. Some oflhese 

de~elopers , including the largest in North America, Ne,IEra, I\a~e announced Iheir decision nOl to 

inveSI in wind energy in Ihe U.S through public filings with the Securit",s and Exchange 

Commission and In discussions wijh the Investment community. They are turning Ihei' wind 

energy Invest,"","1 dollars \0 olhlll countries around Ihe globft. 

The loomIng expiralion of the PTC Iorces companies 10 make hard decisions today. In anticipation 

oj fewer domeslicinstallaticlMs. we ha~e already seen layoffs by wind power plant de~elopers and 

the supply chain. Unless an extension Is approved quickly, there will be mo.e, A reporl relea..ed 

on December t2. 2011 , by Na"lIIant Consulting. II respected non.p .. rti,...n consuHing firm. 

estimates 37,ooa dom stie jobs could be Ios.t lth ~ PTe is not e~tended. Thai is a 5!gnific:anl 

numb . lind many communities aCloiiS lhe country would be imp .. ctetf. An immedtate extension 

01 the PTC would allev: .. t" compaoOes from h .. vi<lg to make difficult decisions to termio .. 1e 

empk>yees. and would instead al low those oompamn to locus on drivIng new investments and 

c,eating new jobs 

The PTC " .. s .. lways enI'Jyed blpal1isan support Similar to many other tax credits th .. t have 

incenlivized the development of enerllY technologle5. We sometimes get caught up in political 

disCUSSions "boot various Iorm5 of energy, Extending the PTC i& not about green, or ,ed at blue. 

lor that matler. It is about Amer"' .. n manufacturing, American jobs and Investing in American 

energy, If yau truty believe in an -.. II of tne above" energy strategy lor Amerie .. , then we must 

extend the PTC and continue to tap wind "n~rgy , one 01 our most ~bundant domest", resoul'lOe:; 

along with othel reneweble lind \riId~ionBI energy aSiets. 

Jon Chase 

Vice President, Government Rel .. tions 

Veslas-Amencan W",d Technology, Inc: 

!IOO 17" Sireet. NW Suite 12M 

Washington. DC 20006 

202·955·Q{J93 

joc\le@vestas.com 
1186 

Statement of Viejas Band of Kumeyaay Indians 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1132

!:-n\lliIIO "'a},i;lnoJn1.-~t\~,$ul,"ljlil'ions(iimnjl.hQ"sc:_g,tV, Suhmil {ol l()wing ~ a WQrd dO(unlcnt, 

indlldlng addrt:lS, p/lfJoe number. cn1niJ adJrcs> 

The Honorable Dave Camp, Chairman 

Ways and Means Committee 

U.S House 01 Representatives 

1102 Longworth House Office Building 

Washington D.C_ 2051 5 

Subject: Apri126, 2012, Hearing on Certain Expiring Tax Provisions: extension of the 

w'nd energy production tax credit (WEPTC). Suhmitted testimony of the Vlejas Band' of 

Kumeyaay Indians, Hon. Anthony Plc:o, Chalrmall; P O. Bo~ 908, Alpine, CA 91903: tel. 

619-445-3810, ~as.com 

Dear Chairman Camp: 

Oil behall of Ihe Viejas Band 01 Kumeyaay Indians. I wallt to urge your commlttee nm to 

approve extension of lhe wind anergy production lax credit (WEPTC) until and unless 

the wind energy industry and the executive branch guarantee that in planning, financing, 

and approving wind energy projects they will ellsure that: 

a. The environmental impacts of such projects are fully and thoughtfully c:onsiderecl, 

In accord with federal laws, regulaliolls, alld executive orders- including but not 

limited to the National Environmental Policy Act (NEPAl, the Na~orlal Historic 

Preservation Act (NHPA) and the American Illdian Religious Freedom Act 

(AIRFA): 

b. Proposals and plans for such proje<:ts are subjected to govemment-Iogovernment consultation wilh federally recognized Illdian tribes before their 

locations are selected and they are decided upon; alld 

c. in slich c:onsideratron alld consullation, a full and reasonable range of 

alternatives to particular proposed projects is realislicaUy and thoroughly 

>lSf;ccscd 

If you ask them, the industry arid the agencies will undoubtedly tell you that Ihey already 

ellsure such thiflQs, but in our experience w,lh the proposed Oc:oWlo Wind Energy 

Facility (OWEF) and Similar prOjects on federal public lands in the Southem California 

oesel!, thiS is simply rIOt true. The agenCIeS, ostensibly actiflQ WIth the ellc:ouragement 

of the White House. ale putting approval 01 Wind (arn:! solar) energy projects on a "fast 
1187 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1133

hack" that short-circuits and en~lronmental impact assessment and consultation with 

tribes and short-changes communitfes directly affected by the industrial turbines. 

Our Tribe and others support the development 01 clean energy, but not et the expense 

of ollr treasured natural and cultural environment. Tile OWEF, to provide one example, 

will if carried oul. devastate a desert landsCClpe of great cultural and spiritual 

significance to us, which is full of sites containing the bones of our ancestors and our 

ceremonial places. Yet the project sponsor and the Bureau 01 Land Management 

(BLM) have prepared an environmental impact statement (EIS) under NEPA that treats 

our ancestral sites as mere objects of archaeological interest thaI can be "avoided" by 

not constructing wind turbines directly on them, The same EIS gives no serious 

consideration to a range of realistic alternatives, and effectively ignores our critical 

comments and defers important studies and reports until after Ihe final siting and 

planniflQ decisions afe made - the very decisions suct1 studies and reports are 

supposed to inform. Meanwhile BlM hi'ls in~ii'lled ' consulrntion" under NHPA by putting 

a pre-<leveloped agreement in front of us and expecting us to sign il. This agreement. 

too, treats our spiritual and ancestral places as mere collections of artifacts interesting 

to archaeologists. 

This sort of behavior is deeply insuning to us, i'lnd the results threi'lten Ihe whole 

cultural identity of the Kumeyaay, Quechan and Coccpah Peoples_ It is also wasteful of 

time and money. and delays clean energy development rather than facilitating it. 

Unfortunately. the OWEF is nol an isolated examp"'; BLM is fasl·tracking the review 

and approval of wind and solar projects throughout the desert where we and olher tribes 

have li~ed since lime out of mind, and their pertormance in each case resembles what 

we are now experiencing with the OWEF 

Again, in principle we sl.lpportlhe development of deen energy. i'lnd would be plei'lsed 

to participate In a real consultation aooul altern alive ways to provide it, but we are not 

prepared to sacrifice our rel igklus practices, cultural identity and ancestors' remains 

wl1icl1 tile Uniled Stales is asking lIS 10 do. wYiy destroy In less Ihan one gefleratiofl 

what look thousands of years to create? The BlM and 001 are expecled to issue a 

decision to IIpprOlie the project this week. SO that the Treasury subsidies can lIest this 

year. The use ollederal money to destroy our culture is not acceptable 10 my People 

We urge you 1'101 to extend tax credits 10 wind energy projects untillhe Irldustry arid the 

executive branch commit 10 real environmental impact review, real consideration 01 

alternatives. and real tribal consultation. 
1188 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1134

Please contact me if you would like me 10 speak mQre with you and your Committee 

about this issue. I may be reached at 619-659-2323, 

Sincerely, 

Anthony R Pieo, Chairman 

"iejas Band of Kumeyaay Indians 

Cc: 

Tribal leaders 

Senator Barbara Bo~er 

Senator Diane Feinstein 

Congressman Duncafl Hunter 

Congressman Brian Bilbray 

COflgressman BQb F,lner 

Secretary Ken Salazar, Department of Interior 

Bob Abbey, DireclQ( BlM 

Jim Kenna, Siale Director, BlM (California) 

Margaret Goodro, BlM Rekj Manager, BlM EI Centro 

A!lgelina Havens, County of Imperial 
1189 


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Tho rh)fl .... ~bl. POI 11M 

a..;""." 

IJ,S. lIm...,"nl.!" ..... ,.ti_ 

WII)'O'o<I M""". SubooUIf\1'lI« 

nil Scl<c1 R""..,~ M~ 

ltol L""~"'X1b II ...... Offi« (\";Id,o, 

Wo;hirII!t<>n.D_C.2Q5IS 

'Th .. k )00 fo< )"Ollr ;.,._ m """"""B thIIt Amai<:JID b<!.;i ........ >nil WlI'"J"'fS 110., • • "'" 00<1. 

IIIaI holpo L<l "",,",0" 11><" «>1'1<",,,,,,.1 oo:!iyitico. y""" CQIlIh1,unonll<>!hi> i....e ha,o trul~ made 

• d,ffercnto ond il <k>co ""' II'> O""I'\>1'«'.,C"\l, 

T~. OISIri<I ofC"I"",bll Enlf<J>rl ... l-'1"" h.os inttu$rd ctT\pl~)"''''''~ d; ..... !fird Ibt Ill< ba:s<:. 

."d .1IlIan«d tho l.,.,g·tcmI r,,,,,,1 h<allh of "ur .... ';"n·~ ",,";I4l. II". "laI ,,,,,1 \I> '/KQW1I~~ """"""",de"""""""", in "'" Oi<"k,~rCollUtlb" m:l1 ~)'O" ",,,,,, ... <1 lilt prtJi!t"h1 "" 

quiokly'" pDlSibl •. 

The D,,,,;'I ot'Col"h1b,. Rtviuli .. 1ion At1 of 1991 (Ao1) oI1.nbo!i;r;e.d «<taln rNonI to,~ ""pm<Ii,,,,,,,, ~, """""rage j'Iri.OIe in ... lme-nI in bu,i...-. .. ,0 reo,dents w,lkin Ibc fruorpri .. 

lo.tno. Todo). r <;Ir) "'P"" ,h:1t the ",'.ll,\hllity 01' 11>0>0 10<>1, has 'n .... siSl'i!iCMl1 d,fforence' 

Zot(I 1>01«"' ""pilll gai"" 1 .... "'1ffI1 "r in"Qtme'" """"Ii" ~as bdp<d '" .ntra<t ""'J<>r- .. wC\l,nn .. teial i,.;';;I1' .... .,oj de,-.k>po .. m~, moj", c~ in II>< Oi .. ric,: 

"Th< SS.O(J(I fi..,.ti .... I>0""'bu~ ... '<~It ha$ he lped boo .. Di<trio, ho,,' • ...r~ 

dnon>tically. witlt ,j,,~Le fao'ily I>omo oaIo. , j:ling hy ,,",.0 ... 1 Lh<tuoan<J unil!: 

~""""'i<' Zono .mployer ... , oredj .. lIa", ~"""td • bu:<,nc« .,.-""l1li,,'''' tIw bu help«! 

,,, ~ttroct and ~.;" thoulli<ab or tMtri..1 job. and Inc:n:tse bu., .... pI'Ofilabili(),; 

Sl~ .,ill;, .. "rEnl..-pn"" 7-'1"" b"nIl proce«k M"" 1.vetJ.gCd _il,,,,,,ly I him"" 

dollvs of pnv~le 'n"a""",,' capil4l and ll'-", .... ,<d tb<>u.<.u>d$ of [}i'triOl)ol><: and 
1190 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1136

~I"", IMIl$7I)1'1m;U["" ofbondilw boen ~U<d '~ 11"."...... d<;>l"'" ~km<ttwy....u 

... .:onJ;uy tdtI.,l", ;""ludi"l: 'radi'i"' .. I .. ..J public <"-1<1 ""t.><.ol •. 

Put ,;m,"y, I~ Diotrirt Of Columbi. En'crp;J< l.Im< ~ boelt. ro:tS;'l<nl and ""n'in.....t 

..... ""' •. I .,..all) "wm:i ... )'''''' '"1'1"'" "" ,hi, i ...... """ 1Irg< yo" '" eM"'" ,~., e""V"'" loia p'ompt. and f"""",bl< actl"" 00 'his cn,;ea! iniliati.-e. 

cc: 'n .. 'k"~~ RidwdN •• L 1UnL10I$ ..... ml>cr The Ilunotubk EIUloor t!'~n..,. N""",~ Dolo!!;". 
1191 

Statement of Warren Blesch 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1137

Name: ~m:n Ok~h 

Organization :R."nch~r in Texas 

Address: 190 CR J 13 Goldthwaite, Te.\as 76844 

Phone Number: 32.5.451.0~ O 

Cont~ct E-mail Address' "- m~ l@p'u rtcrin .O;{\ln 

Title of Hearing: Hearing on Certain E~plring Ta~ Provisions (I'Te) 

J live in a 10\\11 of 1800 in roml TeXlls. After lhe droughts ~nd high ~'O>1 orr~'<:ds.. we ,1< ... ..:1 our 

local wind ptoj~'Ct to nol be ,'m,,:cled, The proj\."C1 is will nOI be buih ",ilhuUI an cxwmioll of the 

PTC. 

The projc~1 will bringjobs lu lIur area fur L'()n~lroctiun filling hOlels and rL"Slnumnts. Tile 

royahi('S will be spent llIany liin~ over fuding uur ,'ollllnuni!y. 

WaJ"n'n IIlc ~h 

R){){ Ihnch 
1192 

Statement of Wharf and Dock Builders, Pile Drivers, and Divers Local 

Union #454 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1138
1193 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1139

U~,.«l S.u" .. II,,,,,,, "f ReI" ... .,""'",·,'> 

C"",m,n"" II" W")'.~...J M"""" 

MJ' "lime i. [)a"u K<>n<:insk • . t llln "'rrc"",,,,,,lw " fthe Wharfo"d Dt><~ Builder,;. I' II~ U,;,'." .. w...t 

DiY<",,> I.oxol (In;o" H fth~ Me""!"",li",,, 1t~~ "."'1 (.\,undl " I"l'hilo.,kl"hi. ond Vicin".' (MltC). " I" 

,I" .. l)n,,~d ,,~""roo<><l "rc.'l"''''''''' .,,<1 J",f"-",' "r America (UHC&JA'. 

I am "'ril'''~ on behalf",."", ",,,rn"" ... anJ ai~ na'"" cM""CO,,,,,," wh,,~....., ''''cr) ""1"-"'" "rl~" ",,"vy 

fQUnda,;"n. m.rine """"'rue" ,,n. ornd ""rn""·"" al <I",' n~"b-.. thn..,,~b<>u' PC""!yl' ~ni. ... N~w J~"",). 

[}cl.""",. ~"d M.F)"I~'I<! ", ~"" Ina, }'U" , uPI'''" .• n" \"bl. ,n ,iI"", ufeX'e'Mlinll'lI<- Win" I.nell:.) 

l'ovdu«I,,,, 'l a, (,,,,,,i, befor" 'he Won and M"",,,, <,:",nmi""". "f,h~ U_S, II "","" M R"I,,,,-,,,,,""i,,,, foW I"" roU,,"i~ """ ... ,: 

I. The Jc...-.I<>p,n""'9f ""I<! ro"'" wI!! pm' ide .i<>I»' ,1\0, P'" • jj""~le ""~ .. "i'h "",Ji".1 bo:<",nu. .,I<! a ""i""""", ",';1" dil:";'" v. orki"~ i" tho " 'in<! .ndU. IF)" f.., n, <"".''''''''011. '" c",i".,""nM 

.... , d""' n. 'j' ,"" on",,,,r~,·,u,,, "fwit>(! ",l.,c;l ~"n'",,"CntS"1I "'qui't. high k~cl "r~ill '''~ 

1'<l,,,,~ ,,,,,_ '" nrd~r 10 an""" I'<'opl. W"U "'.,,' 'h .... ""lui .... ,,"'"1S ""'), "il1l .. ,e t<)" po'd ~ 

Ii,.,.bl,· ,,~ ,. "i,h """fI,s. n, •••• in """, ... " '0 Ih,' ,.",i~~ i"d"",)" ",h;<h i. b<t.M:d on ""yin, "''''pI<-" 'lie 10;"'. ",iU, ,~, ",,"eli ... "rod .",pl"yinW U,.," "" ~ ,,'of' ,i,,," »", ... :2 . 0"., till 'he DOIl. .,.;I'rnal"", <I",l>od, land .nd oIT.I...,,,, w."d ba>..'<l P""c, "ttl ""1'1"''' OO VO(l 

JOM h~ l'lll) . 

. 1. n,e liS I)()i; .",i"'" ~" '"~' h) ~~U(). <I", de_d l'!»"""" "f54.0(lOMW "r"IT<I~"",wi"d ""oj"","." , .. l IS """Id < .... ~ 4J.1I(1) p.,m"mc,,' "I"""""'" W,lh "'" .,,,,,,,,;a,.d mai",.., .. """, IO""_11J><I "I'"",~i,""'d, · 20,] d;roc\jobs pt,~"n ... 1 MW, 

4, 1 he pnIC,r"r,hi •• ~"""n"< """, •• ",e01 c~ " "" ",.n jn In.-- """ Or'he ,'" ...... '<1 w,,,d '''d .... oy 

wII,eh h:" c",~,,:d .II(1)i""""" """" 43 u,,"' . 

5, 1;"','.101';"'" .. Ind p;;o .... , ,,~<>--u. i" "<",ie,,I.,. ,.''(<hQ'e ,,,,'OJ,,,, ... will "'" ""I~ heIr ,)oc, 'h" ..... "", 

"f i\m~,k .... &Crt,.. ,he <OU"I')' wi", art: empl,,)"""I> 'h,' " .. ,ouf"",,,,,, "r"i"d P""w 

"""1''''''''''" '" ~""P II ... ,. ,,~ . ~"w. bIl, h will h<:lp ,h",u . "d. ,,'''''' I1S chi",,,, ill ."'lui.i,,!: " ],," 

.. ,,,,<,,,h,,,,, I~ ,'''' ",i"d p"",on.'<l rndu.s,'Y' 

6, On:'h"", "'J><! ~,,~, r",j~OI ' ." , .. N.";n~ p"""""d up oJ><! il<>" n ,h,' '''',,'' Ihru"~IIo"I ,It.: N"rt/1 

1' ... 1. I""", P'"jet" ",iii t"'"'~ ""''''"'''''. ",- b'gh <!uuhoy j"b$ '" Il<:;ig". c,,~'''''''';''~' """,uf.t"'~_ m"inM~""' •. "~d ""~'pO".tiO". All M,,'hich wi ll ",lid ,I> new OI""""':lio" 

prujc-<,> ,,-qui,inl!! '''''- ,, i« .. or "u, ;G~A'otY ~'m'"",I"", ,,100 " ill ""'1'1(» 0", ",,·m"'" 

7. Il)' de'clop;n~ "ind pO"'"" ,n... u .s ... itl ... hl. '" r.d"ct·"'" In'p'.ni"y "r r" ., ~ lu~ b """d II, 

1""'" ''''' If.S, «:"""m~ fro", f""-"'II" "'''''''':>.'00 ,e n,,, oil ,II<- ... ,'enu. u.<.,,<>.b,1'<l "i,h !h" 

d""'.O-1io """,,,,,Ii,," "rwirtJ pO""' he", 'n , .. U_ """ ..... t>«'f'<-",Ir ... " ........ ail<' ,"xc". w...t ..,10, ' ........ 
1194 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1140

&. (JtT.~"", .,,,1 t~nJ ~a,.,J ",ind """~'''f''''1'1'OfU "Il"", '''< n"'~ t;~~ It", N,on" 1", .. ~nd ,100 

Mid""", •• ha"<~ '" "'pt"",· j"'" I",,, '" ,"" 'u"'i"~ u,'~ 1I101>;,li,,,,,;,,,,. 11.11 wil! t>c In.,.h .,,','" ,'11""", "n" """ "Il<c,'~~. ", "",",'e 0 d"me ';~" 'Old P<''''c, irn!,,,,<y " 'ith ~.'me .. '" S<'PI"'" 

"P" ... 'i ..... '. . Chi"";,,, fo«i' 'ucl p"or ""';0". i'I!~"e",' .. ,he- bo,~ ".it- ol"""i. I",wor fro", I",,,,,,,ed «,.1 

and di."", ,,"',,] ,,' run d in) ",,"oril"noru,(rn. Chi"" ,,·. I~~ 'loa, il> .... ,iao<c "" imp""ed 10,.;1 

'ud ;. ~";"g '0 ..J"" ''''';, "",."om;o ~"'" '~ ~ ;n''' .... , l"lI.l''...,Ju.''''n e",u. "nd b)' """'1',,<1011. 'heir ..... on ("",c ,h",.,S" ",,_,,10 r<1~,"d prnbl~m"" en;"" ",,<:b '0 ~ild J O,OOI)MW of ;n"sll"d 

,..;,I<II"I"cr;n ,onI.r'" rod""c ,ltcir dop<,ldona "" ti.»sil (""I. a,1<I ail.,-"", 'ho hcal'" probl." .. 

o,."ei"leJ ,,;." f, ... it r"", fired otc",,,;,, l'Ia" " by 20lU. 

IU. flo"'" i' lIrcU' p<~c",ial II,. ,"" "'l"lni"Q ".U~ mod" ";,, .. p<",e'<""'I"lnt"" '" Chin •••• 'hc 

US ,~rn:n' I)' onj<»,; a ,,,,,h,,,,I" Hk"' .d, ~",aKu 'wtr e M, .. in p.-.>du""M " f ,he.., """'P"""''''<. r,, ~ Chi.,.,..., "III b< ~ m"J'" ctm""","."r,, "~ ~c"".,,] "t"l<i,y: 'hi. i. an "P""""""l' In 

"" ~ "n" demo"' ,,(,he ,rad. I"' '''' 'a"et belw .. " "'" 'wo na,i"",,- 'l'h< U_S_ can be. IlfOlling 

"""'.;".- 'he m~n"r.""nnH or"ind p(> ..... "","[>(Inon" t~[>Q"<d'i> Chino. 

II . ' ·h< U.S "rrc ... wh., ,he W;OO inJu.,ry IIOC-.)'. ~ .'"l"u ~"rh;~h') >kilied '''-'r~e l$. a ll ~~"e l"n' 

<du,,",ion i"r"'>lrue,.' ..... _ >I"" 'c· ~kall y ""v.nla~,"<-'u> • ..,. III mo"u("",UI". ""","b'~. o...J 

1I"~ '"r<''' ";11<1 r>""'" """\(".1'''''''' "' '"~ p..ue01 I""o,i",,, "",., u"J ub"",d. 

I. 11", US ~.,;,"",IIlOl"'''ul>l " :"~rl\Y 1 •• 1><"",,,1}' ''''tII ~' ''' 'ho, ''''' p<>I,,""ai (",.",n""", "-.,,J r<''''''''i" "I< IJS ~ lI,u, ,im,,, 1I"'~'tr U,"" . II "urn ... " ."li,,,,.III<:ne""nll o~p""i<y, 

2. Orr'h',,,, "'nJ to k!.~ lI y "'i,w II, "'."1.1 lite pOw • .,. """''''I\pti'," ""'-11s M,"o E"'" ' I~~i.", "" .. l iS «"' ... , oili<:>; whith ",,""<-,Un' to.- 18">10 of US ""wer """,u,np,I"". 

J . 'fh"",nd, ,loa ' po".", nn"~ore wi" .. '~r~I" .. Hrea' thd, I"' a~ /lur;"11 'h" 0.13) when ~n".um",i"" 

",-.,J.> a, ••• 'hoi' ~ ... -"a".,.1. 

~. Wind r"""'.- """""" ",HI Pfl)' il"" 'h~ 1''"@'''"''I'''''.rpr...,J,,,,'ionina.-...a, like 1M No"h I. ... , ,hn, 

ha,O"" eve< ","in l!- n""d ro ~l<c"ki') . , ;.(,,~Ic p n<c. not ' ''ltic,·' '0 prko i""rca"", du,' ,,, 

>;' .. a';,"," bc)'OllJ nur 1'>I~"on. ~"",,,,I. 

, . Wirn! I",w.,r h., ,~." n"" t.", .. , ,nili,l.-. CUn pur",1."" r<' ''~r m . ",hle ... ,,", ~" 'e"''' ' "r 10 )~U" 

'" 1><"", "'i,h,,,,, b<in¥ ,ubJ<"" '0 ""'u'ile 'utl pr;"" Inc r""st •• 

6. W""" "tw ,.,", 1",,"<1 "illd 110"'''' ope,.,."", h"v<: 1><:"" I" "p." .. ,I"" Ihr ""~ }t":" ,h.,", will btl ~ 

corn,;p-.,,,ding ",,,,,,:tl,,., in "'~"h""'" ~. "mi .. i""" in the am"u,,' 0.70 milli .. n ",OIne '011$ of 

tQ~. ,hi, i; '''Iui~~l h' ,,, ""'I<)' in~ 12 milli"" """ r ... ,n, "[11'1"""''' .,," or "'J"~;"I! IJS p<'''~r 

~"ni.""',i " "mi .. ;nn h)-) .... 

7. WinJ I"'''o.-.",..-.'i""o "ill "ro';& clean cI~"i" 1><'''''' '0 US lJ, bo.n ""n'<: ~ plas,,"" hy po".-a'r 

qu"li' ~ '"a' !lao '-n """n '''UU"'' ~.nl ;,,, ,,,,,, ,,~,, ""J ","pi,,",,'Y p""''''m ~ in ",h.",i", 

I><al'h ~ I"'upk. 

¥. I" I,"",,,,,. "1T.h",,, ,, ,,~ ""'''~ nIT Ihe c, .. '" ur P""n"'~ in 1\1"1. ""'.Y ,I>< ['"'''1'''"''' !tov. i"".IIt<! ~.I)UtJ~IW . """"gh pOw~r '" ~co~ 'h" 'ill.hlS on In !,J ",itli"" "",,,.:, """ In 'h" US. Ily 

2020,100 Cur<.,,,,,,", e"",-",. ,,, IM'ail 4{I.'IOO MIV "'offsho",,,lnd. """"II" ,,, PO"'" 13 ",illi"n 

US h"m.." a' a «1<, o f 10.76 [Ji llion d"lIa .. 0 ~ar _ 

/'I"d .... P" ,,-•• U;-"Mc..-di,,~ly ~r"n ~. One Nudear """"", "rud"ci ~ I600MW "(po"'.' will ,."", a" " .. imatt", plu. ormhlu,. $ 12 n;lI"", d.-'tI.~~(lJ ,"~" ~r" d"" ...... ,,, h"ild. All 

C"""""'I;"" t,,>l <."i",nW. a", eM· ... 1C<l . " "")' "~H 'I<Vcr """"",,otJ '"l~ intI> . "e."'." lhe lU, u", 
1195 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1141

Inc'''a$< in 'he !>"k~ "hied .• "preY •• o""""~. labor, ~"', h~« .... ~ ,~ .. , ""~, ' ", ... '" a 

<.n~in'y. nlll . fIO .. i~;hl} . 1'",,1 ••• ,..,,,,,k,.,. ~~'''' ... ''' "''''I<' wi,h ,~, plo"" I ... In", il 'n~ 1<1''''. os 

y"". 1<1",""oin. ,110 1I".",k<l "a,", <Ij'pO<»l . lIe. ",",ui,,, ,,"tini'~<"<I. wi,h ,'" ~",i "ip"",<1 """Un 

d.,,~. A, ~ ",.,,1, "'''''I~''' """~, flIdli,;"" h,wc ho<l '" bc«>mt mtlj"",,'I~< "'3"" """'Il" l!>clll';"s. 

" "".,hjnw 'he) ,,~~ ne,-er 'n'oo.1.<1 '" 1>0.'. ~" ''';''H II"oIea, " -a",, "n ,'k i. K "j!n'''Cilll' . Y'" 

"",'nllcipOlI,,1 co",, and """,) ri ••. rh" ... dd,,,,, al ,t..: F,,~">h;ma n""Je~' pO"",,,la", in Jap<l<1 

has ,.,,,I1<d In ''"''' ""I;',y compl;.""" ",qui"'m"n" , .... , will aJd ne ... and .... d;';..,nal «,.1 

Inc"',...,,~, "'" al","-II)' r......, ~i,",,~ ,""'. . I' r<>d ""jn ~ tlc",,,..,II) ~Iu 11",,10", I~'''~' will ""nlim", 

In inc",.",,,w, Ii....,. N""lo~, I>",,"et 'S ".". "h"~p aIK ...... ';'·". 

1 (;, ,,<1.· (J;k 

("l"I>Lle Oil. ,,'hi,·h all p.:' '''''hcmlCOI "..,.I",,~...., do";,"" r"J'n"", _,,,hje" 'et P"« I .... ·"' .... •• d"t"~ 

'~n' S bc}"nJ ou, No,ion. """",,1. pricc mII"luul"l i<>" by d",,,,,,,l< 0,><1 l"km.,lonal oil 

.""CI".",.... ~,><I" " ~, ~<I"""' ,in~ '''bal ~~'''.f><l ru,o" """ ~ pro<l<>cl>_ 1)<", .. "Il}"'''' '~I"l ,II., II,.,,,, "HI be "",",C in ,ho MiMI" 1: .. , in 11"-' I\t: ~, fI,·" )·e.". leI.'",,., .w!'.' WII1,h. """''' 

r",,1 c.".,;u'''pll"" ""od, "fell[,," ."" Indi~ be """",.sing. ",. i",,"''''nIl1 

1\ C .... tl ne: 

(i~,..)Ii"" i, "',' ."""1' "0", i, I, I:>< c<'oni"~ ""afTh,d. l~ ,~, ",all) a, d~m.nJ al" ,,), "", ,."ip.' 

'''PI'ly ", ,,,I ~W in 1,,'Mcd r"'o~, In 'h< ea..,.-,( "",""_""-' ~a,.-.Ii...., pnc",.,he poi"" ,""",&;n. h'SIl 

"""n " ,11<>,,1.1 lot! IU""" ""tau,"" .11) .... "".., 1 . ... hippo."<I owfSea> ", ,c,~ ,Ik.' prj.ce Is hl~h<'. 

1I,,,,,,by ol;,"i".Ii"1I an) p<"."'ial "" 'i,,1l.> ,,, ,I>< d<.m."i" _ Ii"" '"ns,,,,,er, Tt>tloo)" " .. , ,,,,'"m 

•. ~"...,. m"", ,dl,,,,d Oao<>li,,,, Ih,,,, ;' .. ~, h"" I" "u~N.'i.,,,·.l>b,of)' , 

IIIlI •• d , 

The"..,..., ofl11.:«o:' u~ "" ""me h •• 'inll r,..,1 ;" """"nU) ",ked 'h ..... gho," ,be Nonh E3" 1m 

o--.nog""' $3 <j~ • H.II",,- I'hi, i~ r ... fMII h~"p ~>l"-'cl.lI~ in Ii~hl ~r ,,,,, f,., ,104' "e h.,·e lIoJ 

" ...., M ,I", wonn,'" "Inl"" " "",or.!. Wh., ",11 " ,,' p,i.·~ Of 1I0me I k~'i,,", 1' ",,1 ~ i". ",.1 

" '1,,,," I"" ) "'" '' r"m' nO"'. $6.00 1"-" ~allon'l "'be p";e,· " f DI" ... 1 1'",,1 f""",,,,,,,.,oo,;"n 

,,,,,,,,,,,,,,",.,,,. ". "r,nn..., .by. all<' "'''I:'"l' ft"mj~" "n~~' (o~t d"lIa .... 'n ".11 """ 'h» at""""" ,\I",,) ~~11<'<'1 Di< . ...,1 III ~ ill pri"~ '" $~,OO 1"" ~.II"" 

TIM: I'fic~ of",,,,, .. 1 ~ ... i. "I><ar ,ijl'" """. bu, I. "",,', 13" 10" , fo. ,wa ..... """," 

I. r"",li!lg i, 'h" ""w "'d"~"QIIJ' ,1\:0, l,-"pe~ill~ up ~." <1",." Qr 10101" .... 1 (;~. ,h .. ,,~'" 

,m<~ "")M" "'''''h_ """'ki,~ ", . 1C"hnol y IhO) "", '~n> "'" ,,,.., ~n ~""Ir<)nn>.~ ... II ' 

.. fe ,"~., .. of".,,, .. llI-a. '''''''''n. n"'rea",' ,j~"ifiea n' h~ .I'h rcla,ed <onc~m'J 

a """da"'d "ill< ,1M: n""-"-'" orl r",,~I,,~ ouch a~ I",IIU''''' wa'''' W!>Ie .. ~nd 'h~ 'nc"'~'"-"<I (1<>''''''''' ' ,<:0, ,,~nh q~n''''' i" ."' . . .. I><", "'r:><:~ill" i.1U~i"lI pi"" •. ,'hi, "OU!~ .d"t"",ly 

,,0..-<;' ,Ik.' .1'1'",,'."<1 ,,'" "f ""'~; ~.'<" ""'.'" <>rl1."'r~! 110'; ,,,,,t'l,,n ,,,,ul';n~ in 

I\J,,,,", ' "ppl) ~.'i'n",,,,, 1>(1, ",a~ing;' '" 'he ",o,keL 

2. C""'o "a'~r~j W" can "" .~p"n~ '" wI><", 11'. no, Cl><31'.jUS' IIl,,"'~e, f",,11 fu~1 "",,"<I 

pro.l"",,~) 1' "rr,l'<". nrJ0l'I>n , When pn .. " "r~ny .',)n'uno<li') a n> ol"'Bp ,110;"~"" ""Iy 

I""",~= ~"tlll><",r"", ,"" p,k~ "III "~~n'u aH) ri .. ·u .. ';ll"'ri'~ i~ ",a~h.d. Ki[lh' now 

"'" n''IJ",ily ,,{ """ ele,,'oic J,,,,,,<,,olj,,~ l~an' " u,><let tlo,'d"",""111 """ "'" "'''''''''"''i!", .• '" '" II<' 1""' ~",tI jn~ ""t~"' II"" 1I'1",,,.U "1'11",,,,, plll"I' CII",e on Ii"" 00'" ~h' p "ill 

Maw",1 ga' be H-.c,,"/ I, ,ur\: "''''" "" "" cncnp '" I, I. ''''.loy. II, 01,,",1' ,,, ""n,,,,1 II"' i. 

on ,I>< "/\ole <01. ,,," "' ~, \\ha' dl",,,,,n' "ill ",ocll "'" c"",om.1"? Yu" con bo, j, ""n', bo 

bl~"nc_ 

III O il . nd C., b. I; .. , 

"he oil and """ "><1",,.,. I .... njU)N "' ~ b"'3~J .,><1 ."b..i<lle, lrum ,1>0.' begin"'n~ day. " r,hi. 

Ind,,,.,,,, on.! lo,,1o;s ron'anl,o e'U,,)"jn~ II><.., >unu' "'n"fj,y I'D .. 1m" ,I", roll"' • . !',,"'n~ un .,;ac, r,~"", Oil "'" ~">1 0{,1",,,,, "'~ ~"'9" .,,.. ",I>l>,Ji., i,I"".!~. d, •. ;.0",," .";,, ... ," ,lie_ ~"lIa,. r,~u,.., 
1196 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1142

•• I"" ~ ~illi<l" <lull.", 1>'" ~~t. ,,·hH. ',,",r "";nlOW lI>e """,,"", hi~h"' $12 nill~," <iolla .... 

C,,,"'<lt,in~ ,M, t.<>ml"'"k. likt E1<Xoo MI)bOl.~,. II<ge,;, p"bll~ly lnldcd.,01 ",><I ~'" "O"'I"UlY in 

,h~ "",Id. n<lla.!, n.,., IIJ'<>-.:I. S<j ~ \>i1ll"" <l<)1I'I"$;n "'" I .. , <{o."e, ,he'" <houlJ 11;,"" 1o" t>rcok • 

.,. , o""idk, (",I",""" o,,,nl"'n;ey in lI$hl or"Ila' ''''') cam.' ,II< cOn,...me", e" l>"n,.,. Th .. ,m"""",,, Ihins 10 """~mtl<' all<'~1 ."boid, .. , .,'<1 'uX b,c ~, i. ,II"~ ,II< "";pi.,,, "to;o1~ 1It,..,r. .. may "'" 1"') lh< hi!! bu' ""mcor'" ~I"" will. .nd In ,his."..., i" ~ lI>e "," .. ,icon coMume' whl>;. 

I"'.vln~ mu"" r,,, f' .... il n,d pmJ .... 1. 'r..J.o) II,,," <, .. 0' b<f,''" i" II,,, 1'/1>1. poic", l<:n-ll • ..,li"" ~'" up 

~o"'" (I,. 13 .. ''''' yoa .. 01"".,. 

F ..... il f"o", "w"","~<,J ">I)3)". ;u><l I\'ill «moin ,1W1" priced frum he", forn ~t<l . f """UI' u<I, 

""<',e " "heap ""","c or »o ",~ , ''''Iii eo"<)"",, d~ .'1.".J "" n~ ,I",," . in rot!;"ul., China 8nJ 

InJla .• ,oJ ""i'II<,~o"",,,, i. yoi,,~ kJ ,'ut ,11<;,"", of,·,,,,,umpti,,,, """~ in """,.10 b,,,,,,f,, ,II< 

A"'~rk." '"0,,0""'"', 1' " .. ,1 ru.l a.., "U1 ,""op ,"' ". .• ,><\ will '1\)11.., "~ •• r i" II, .. ["1>,..,. 

IV W in" r ...... i. lI>e 'hc.\pe>I. ",<'><1 Inbl~. an.J c~~""., IOnn 6(1""""'( ,hoi ~." be ulil,,,·,, ,0 

m<~' ,II< , I,.;,,,,, S' a,e. gro .... i"g POW"' ,,,,ed. f", 'ile fi,llo", j,,~ "'''''' .. " 

I, 1'" .... e, ,""" Wind Stne,a""n oa,,', ~ .h.wro !)v.,.,.,a< 

Win.) I'""., prod",,'ion .. "IS "illlken:as ... '''"' ',one U «)n'l""",ol ro.iS ~mp. NCO",O mon' 

officio"', ~"J the u"" of 1"'!I"'''"tti, .... ,,;11 yiold m"", P''"O<' 

J. W,nd PO"'" l< 0'" , ulti«:1 ", rri"" ,nc",a"" rJ,.., '0 .,'on"" 1>0)''''''' nur N~h",,', """,,,,,1, Tile 

I"ic,' of r" .... n !\.Iel_ "ill dl"'~~'< rI", ,We' ,n., I"',g 'en" "u' ,"" pIke "f"'ind PO"'" ",Ill &;;,..._, . WiM """'" prlrj • ..", _,..,11"0 """"Iqpnwnl ofa Win~ I'o" ~''''' II>.!"",,} ",ill help "'pl"<o ,"" j~ "" 

Ii>o1 II'hon ."'''I'''"i"", li~o $''''''.'' .• nd C",",,,,,,I,,,illips d"",d ,"oi1" ",fi",·ric. i" N,'''' Jo,""y . "rJ l'onn'~I' .n'", """.I'inw ," I"" I, ... ofh..,Klftd.' <>fd,re<:, juh .. ''''IL" ,,,,,I, "fir-.du<lr}' ,d.,<:0.1 

""'" io. job •. ~"""'~ "ith .11 of Ih • • """"i.,,,,] "'.X,,",. Tho," I"" in". r,""iJcd ."'IOI",,hl< "-IIg« 

"'I~ bcno..r,1& ."d ." "PI'L'nunil} '" "'!in:. W'n.) r""<r P"',;<C1S a"" a Wind P""", • ..J InJu>1<} 

ca" "If.e, '~i y I" •• i"j"blr ~"J '" J"II~ "'. 

S. Wln~ I'ow", can I"'Jd,,,, •• Icnn ckcuici'y lO "" ~,m>.J in .I",,'rk ~,," th.lllhcn COUld I>< ~Il'''l!.d 

dlld d';"." ohe'r>I)' .hmuwl~'u' ,t.., Nnnh Eo<l. EI«l<k Cd'"~ dte cu,,,,,,'I)' ,"" 0 ,i.bl" O1"i<>" 

l'C"dl'"'' ,h."r .l<oi ,·< Ih. PO"'" f,om ""n'·cn';on.:&I ... UIT ..... I:Iul " i,h Ih., dc'.~",,""'" "I' "lTshurc 

",;,111 I>""'<r .Iccer;" ear. ,,"uW I>< ehl'!!«l "" I>~",j )' ",,,,,, ... ~Ie 1>""'" 'her.h), ",duoln~ "". 

depende"cc "" g""'Ii"e"" 'he fi"" ,In,. ~'".., g"""Ii"" "a. o""d 'n PO"'" ""ne nf'hc n, .. CO"" 

CONC L USION 

WlIllh" de".I"",,, ... , ~f" IT.1v;><e "i"d i"L>"'" t... c~pe",k .. 1 y"". h ''''' in<n:~~-.) c",", ,,,,ph I" y ",,-

Why ;" u n"...".., "htJ ""nh , uPl"lninK'! U,""""",, i, Is ,he ''''I} la,!!c ",ale .,tJ vlabl,' ""'8" ~ o f pow or 

proJ,""'n" 'h., ea" do w~ , lI""plo j",,~ n..:en .. y'nS;' '''''~'''')' 11>< 'h,n)" )'COI\>: "".I"". ou' """~. ,~, 

1" .. ,,1 flO'" which i.< """her .""op. nM ",,,,,,, .. ble. Will wind 1""'<1 JI~I1,,""<d <Ie""",,,i'>' be< cll<.)lO' In Il,. 

'1,lu«? y"" W,,,d PO'"'' "ill t.: u, ili'c~ hen:.nd abruu<l "" ~n ~"" '"",ea.in)!. b<t",. Ihi' "illl<ud 10 Q 

IN""',,,,, in p,<I<I",,'ion ",,,n •• n<i" "on"'ronJ'n~ n:docI,o" In 'h< .",.j kJ prod, .. ,· dew;c'I)". 

Ow oe"n,. ,,} ha, b',~n olr • ..Jdi"lI q..,li\~ ; 0"" for fa, 'oo I"",,: ,"" "inJ ihJu"lr}' <an ",wr.« ' hi, ".n.1 

0 ... nQlion 1Ia. ",liN on r.,<>il an.! n".:\,·,,, f"d r", 'h,· prodLK",;"n of "u,"''''''oi'''"",,·., n«"<II f,,, a I<>n~ 

,im", i. i, ""I\' ti",o fu ... "h."ge. N""loar uno! f",,\1 fu~l. ha, ~' p!""~ in Out .""'l:Y I""'l""'"m I"",fol;" . 

1>1.r';1 i. ,ime U,,' ,hi, .".~} pmJlIdj,,,, l><'t1f"lj(} .""1",, '" """OM"l""" "r"h"' "lToh,,« \\,i.><I power 

oil,,<$. ciC'a". $",hl". '~""w."lc . u'lIh~ oc~l" 1''''''' p,od"",ion w><l., 9"'" <Qlll<ot. <lqI W~l l -"",,, .. , 'Jf' ,1,01 

or '1>n:i~n ~v~n'~ ""'> 1NlJ .'u' , ....... ,rol. 
1197 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1143

~",'it r",,1 ....,.",,,,,. n ...... j<»«I .. b.kJ;<, , ... , ..... !l" V.S. d"","." ,,~ rokJ rO!. rot .1",,,,,. 

co.'OI}". 'I .. ·• ,,. ...... ",,,,,,Ik« >lj," < .... p f'"i<'" "' ,I", pu"'r. ,.,"'" ~ .... "' 10><.1 "ro .. ,,,, ... luw""",. h.",,,~ r",,1 ~ri«oo~ 11>< "'~' .... j, .. , ... ,",v."", """o ...... r<1\Io.! ";111 ' 0) ".,h """.ro"" 1."""1 

"'r ....... '"' !)OI" , idn; or"", ll<i." .... lIi,'Of """e b,'e" ,...., """". G.< rri«, I'< "P, """'. he .. ,", r",,1 

pri<><. or< "11; ""'T" ....... ;OI".;hOpped 0' ........ in<J 00 'Op orll1., It,S. <l,1, .. 0. ,,"" """<0" """' . ".~. 

11'1<"""'" "hil. With ,"," kll!h<' "","ie.1 ..... """,. '0"", ~oo i. " '" pi<~ ~~ " .. WI ror Ial< ........,,;an,! _"''''w .... ~ IheOil .. .JOo< '.dd<l'Y. ,Ii< _" pmlital>kiod"'''Y ". ", ... It_ 

Out- """"t.m....d n<if';~ ''' ''''rl~l''' '"PI''''' ,,,, .• ,,,.,i<>n .. r'lI< Wi .... r .. """ P~"""~i"" r .. ,

erNi'lo ,,., <til ... '" ""..-ok'!' ,,10<1 """"'. ,t< ,i ........ <,"no. Pb;., V<II< V .. '" ... ,,,od ,I\<- \I"iOMl 

rail'" Prod",,;(., 'I:', ("milL 

c""'l<illl.,...,,,,,,, .. ,, .. L"""I IJn"," OJ, 

( -........ ,111.,..<=1>1";'< 

l(><a l Un;'", S, 
1198 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1144

W Musial and B. Rnm. Large-Sc<llc OIT~hOll' Wind Power in Ihe Uniled Slot~"S: A~S:\l1lelll of 

Opponunitie:; and Barriers. Golden. CO: Nalional Renewabk- Energy t aoormoly (NR!.:t ) 201 U. 

Nme: NRE!, is in Ihe proc~s ofupdaling ilS jobs and ecooom;c (kYclopmCnl lmp;let$ model for 

tile U.S. Tile job;; analy~is in Ihe lOIO ""fl<l" is bn>Cd ufl<ln daln fmm European projects. 

il American Wind EllCrgy A%(X'ialioll. Felkrnl PrOOucllon Tax ("rOOit tor Win<l En~rll..Y Fn.:1 

Sh ~1 lO I I. htlp :I/DwC"lt.Qrg/is~ uc!'ifedera "'pol ic)" lIpl\llld C-F cl-S ~l.pdf 

iii DcpllrtrocnlofEnergy. 20"/. Willd Ellcrgy by 20JO: Incrca>ing Wind Energy's COIl1r1butk>tIIO 

tl>e U.S. Ek~lrici y Supply. Golden, CO: Oepartment of Energy 2008 

;Y!\I. Sch\\"Prt~. o. lleimiller. S. Jlu)mes. W. Musial. As.<csslncnl ofOflSh<lrc Wind Energy 

Re50Quttes for the Uoi,~ SIJles. GOlden, CO: National Renewable Eoergy 1 ... 10011110')" (NReL), 

2010 

v EllrDp<'all Wind Energy AS5()/;iation. Will(! in our Sails. Nowmb<r 2011. 

hllp: I/ \\"ww.cwea.orglfileadn,jn/ew~a dl>Ct nlC"lsld QCumc,,!sIp\lblicali'mJ; report~ 2H20 _ Offsoor 

e_rcjlO"_wcb.pdf 

vi Calcu[;uioll illISl:d upon a 40"10 ClIpa<:ily fu~tm 

vii European Wind "Il~rgy A»ociPlion. Wind in our Sail~. N(}\"em~r 1011. 

hllp:/lwww.c .. c.ll.orglfilead ... inJew~~ doctlllle .. sld QCunlcll!slp\lblirnliolu report~ 2H20 _ Offsoor 

e_ll:port_ web.pdf 

~iii Calculali')n bu~ed "POll a 40";\' capilcit)' fUlnr 

i~ "m~all Will(! Energy A$KICbtiOlI. Wind in our Sails. Nowmbcr 2011 

hup:/I" ww.~"<::I.urWr.lc:ldminl~ .... ·ca_ dOi:"m~rllsldOi:llmCnl sl public"lioll"""portsl2J 410 _ OfTshor 

c repo" .... eb.pdf 

x-Calcul;'ion b.1s.:od upon a «00/0 eirp&":ity ractor 

xi IXpartmcll! of Energy. 20% Wind En~rgy by 2030: Increnslog Wind Encrgy'~ ComribuliQlllo 

Ihe U.S. Electrici1Y Supf'ly. Golden, CO: IkrartmcIl1 ofEner~ 2008 

xi; http:J",. .. W ..... 51m~smon.com ne\'s/t""~~YS1ate-clcc1ric-l!rid·"~mlor-$l\y~ .. O\ lIl.gc.-llot·li~cly17 1J893.html 

xiii hnp:l/ w,,\\".ca~\\"il1d.orgme"sI208.hlm 

xiv American LUll,. Associ,"iorl. (2011 J. Stflte ofillc Air: 2ullo 

hUp:/i""w,, .stnlroiiheair.org/20 I I/faclsJ 

xv Amcri.'lIrl Lung Association. (101 I). SI~'C or thc Air: 2011. 

hllp:I/WI< w. Stat co ii h~ air. nrg/2 0 I l!h .... alt h-ri ~k slhca h h -ri~ ~~- p;1 rt ieie .In 111 1 

xvi A WEA U.S. Wind Indll~11)' Annual Mnrlo;el Rcpol1 Year F.ndinil 2011 
1199 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1145

WHITE COUNTY 

Economic Developm ent 

,,,,,.,,~ 101 ... ,.. .... r.n .... . OJ,. ", .. ,10<110, I.~' .... ..- 'l<.j U~'l I ~",joJ.;u.;. -"'" ..... __ .. 

nE; Hearin~ on Certain Expiring Tax f'1'Q"isiqns 

t. Con ni " Nciningcr, Ihe economic dc~cloplUcn! diri.'<:lor for Whi'e Counl},.lndiana, rcspc~lfuny 

urge COII~"'S~ In I."xlcIld 11,1." wind en,,'l:." "roducoinn lnx "",di, (PTe ) ~s quickly 0'1"',,;111.', 

Indiana is a state 1hal is flIirly new lQ wind dcv"'~lncnt. bUI ,,-r aln:ady ha" .. OJ'W I JIKl f,,·IW of 

"ind energy in production today, \I ilh the pol~nti~1 for evcn n1(m; nc<\)ss 'he northern half of Our 

SIlI.C. Unfonun",dy. We h;w" 31",00.1), watched wind P!"l)jcci'$ be curtailed due to the u()Ccrwi,uy 

oflhe PTC'. Our \I ;lId fuml~ arc employing locallX-<>pk and Dclletiling ~lIl"t'"Sid~nls "iln low~r 

w~~s due 1<) Ihe u,cre!lSC<l lISSI-"5sed valu;uiOJll in our 'Qunl)'. 

''''rg~ I'rodOClion from wind belps ,nOr<! Ih:mjll5tlhc wind d~v<:lo""r, il h:clps tlw whole 

~OI1lI1lUl1ily . Th~ earlier the PTC i~ ,,-xt~ndcd. the more dl3nec of investments being madc in 

n'ral communilks . . . Ille he'Jn of America. Winllllcvdopmcill pr~V('S "ur j,'rmIJnd with 

sl1slail1ablc energy ;lnd SU5111iMble agriculture. 

TIle PTC drive~ billiolls ofdollal'!; in privale in~CSln1<.'1\I Lllllomc!:ffi"'n American wind pOwer 

l"dch y~ar. 1 have 5\.":11 1M wind rann in White (".(Iun l), n:"it~l;zc uur C()n,11\\ll1;ty - bringing in 

~onslruclion jobs at Ii,.., •. mainlenan"~ jobs in Ihe long tenn. ~nd genel'llljnlll\.'h'nuc for our local 

school;; ~nd hospitHls. Jncn.-a;;in~ the amu\lnt of power that OIlf coumry gCI!' from cll'lln, 

homegro"n. -a/To"bblr re,;ourccs is 3n exc<'llenl way for liS 10 dccn!3o;e "ur dependence on 

foreign oils - and CI1;;ur" Ih.ljobs, from wind technicians to manufucluring wind compOnents. 

will continue 10 suppan our fan,ilies. 

J urge the committo>e 10 lake up an extension oflhe ,,;nd energy production laX credit ~t Ihe 

etlrliesi oPP<lf'lunily. Than~ you tor your ~oru;;d~r"Jliol1. 

Connie M. N~ining.er 

Eeol>Qmit IXvelopmenl Djr«l()r 

White County El:'<mOlT\ ic [kVl,'I()pm~tH Organ;,ull;on 

PO "~ [031. Monticello. [N 47')60 

I'l l: S14 583-6~~ 7 

eMA [L: lc.:lo@whiICCQUnl)'indintl:t.us 
1200 

Statement of Whitley County Community Foundation 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1146

N:1lllc: Sepf('mlx:r i\IcConncll. G~l'CU!lvc Director 

Org aniltation : Whidc}' Coumy Communi ' Found:uion, 11'1(;, 

Address: 400 N. \Vhitlc)' Street, C()lumub Cit)'. IN -16725 

Phone: 260·24-1-5??4 

Contact e-maiJ: ~l C;. @grll!liLc m 

Title o f H eating: Heating on tax eXlender~ held by lhe House Wa.rs and i\[eans 

SubCQmminec Oll Select Rcn'nue \'Ic:l~urcs 

On behalf of the citj~en~ ofWhi!le)" (oumy. Indiana. I urge rou to approve the 

imrnedi~lc reinstatement of th" cxpircd chantabk· gil'ing incentil'e5 which allow 

or~;\ni~~tions such as our Community roundation to assIst indil'iduals (through 

scho!arshlp~) and uon.pmfit charitable organizations set\'ing our community, 

Within !he pll~t month I was c(lmacted by ~ potentbl donor who wa~ intcrC$lCu in 

e~tablishing a nursing scholarship for students from our community \~a the Charitable 

I Rt\ Rollv\·cr. She w~~ uisapl'oinled and fru~rrafed 10 know th~r the 1R1\ Ro Um'ct i~ 

,WI currentl)' ;\I'ailablc and Ih ... gifl has been pUl nn h"ld. \Xlorthy. {lesl'IVing ud"'(1[~ 

arc currentl)" being u~T'rived iin~lJcial :lssismncc due to the f~ct that rhis ptovisk,n is 

ullavailable. Wbik thi~ i~ but a small example of a situation ill Whit.!c)' CoullIy, J am 

confident there llt~ a rn ri~d of other gifts thaI could be wOTking for the good o f 

c(omm unitic ~ Ihroughoullh<, countrl' if Ihcsc. pWl'isions w(")ulJ be rcinslalcJ. 
1201 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1147

To Ways and ~IcDns Commiutt Apti1 25, 2012 

Wildlif~ Acou~tics, H leading mUllufa<;tu",,. ufl;liQ3coustics recording O;.'\juipml."1l1 ",..'tl ill site 

Ur\ ''y ~ f(,r wind f.ums. based in Concorn. MA urge s COIIl!ress 10 c.."lcnd the \\'ind cncrl!Y 

production 1:1." ~",dil (PTe):lS quickl} as pussihl", 

Our gm"ing ,lIId prolitable company designs, manurac!Ures and supports pnxhlcls in the United 

SllItl'S. The wind ~n~r!l"\' market represents a gm"ing mar";;! St'gmenl comributing to the 

addition orsmlTand manuracluringjoM in Ihe United Slates. With Illll unl·l'rtail1ty of the PT(" s 

future. we a,.., cOl1eenled ubllul the finuncial impact to the C0111P.lI1Y. how this will alT~t future 

gNI'1h und cmployment headcount. and the Joss of up 10 SJM in pOtential rc~enuc should th~ 

PTe extension fail. We stn"lngly "l1:~ thi~ commiU~e tn innoedialcly take up (In extl'l~~ion of til" 

wind energy prodllction ta.~ credit. 

Thank you for th i~ ~onsiderntion 

Mona . Di«.'\:lor nfSales Md Marketing 

Wildlife A~OtISII~'S lnc, 

970 Sudbury Rnrnl 

('on..-ord. M,\ 01742 

on;~: (978) 369-5225 

mon @wtld l"f".C(lIo~l <'i,com 

hJYdI_w. ild llf". co~.tiu. c01!' 
1202 

Statement of Wind Clean Corp 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1148

Tim "' all ~y 

Wind CI"'111 Corp 

200 Airport Rood 

Coleman. TX 768.l~ 

325.-625_1 S9'J (work) 

ti!!mlallley w;!!dcl~3PC(1rp.~"m - work email 

I. Tim ~bnl~y. am Or><: oflhr~"<! panncN" ho own and opernlC Wind Clc:'n Corp. II complm}' thm 

provide, ~'1alIngs and assembly of wind lowers. Ille Hllai "lerin lhc [lI'ooucliO<1 r("()(e;;~ for wind 

10"cr i!<'Clious. prior 10 belngship~110 the SllC for erection. Our compony has been In oosiMss 

since 2001. w~ curren11y ~mpIOY\lppro"il1l:11e\y 80 employ .. '<'sbul have ~11lpl(>yed 3, many as 

150. We have S<.'en tile drnm~lic ehh and flow Ihal1h~ cSpinl1ion and renewal oflh~ I'TC h:15 

cuu~d o,'cr these pasl II years. a~ ~vidcnccd hy Our tlumt3ti(>JI in c'fnl'loyus. The !>cst lhin,g 

lhe sovernmem can <k> 1(> Cn.'Ule johs is t(> continue 10 inv"sr, ~ 11K- I'Te, in rhe wind indl1 try. 

A lhr .... year extellsioll Orl~ PTe will aUow our inv..stm~nl in this industry 10 grow and 

generale more j"bs rm our nalion and our communilY. II will enable our company, an<l 

cOInpanks like ours in this indUSlry, to do 10"1l. 1<:"" pla""ing and jnvt'Slins. "hicll is critical for 

success in an)' industry. 

Colcma(1.1 e~<ls, is a f""r!;""t ~sa",pk ofa j'OQr Tnas ru",1 c,)mmu"ity. The popula,ion ~ abour 

5.()(}(} JI"Ople wilh unl)' aboul 9.000 in Ihe whole WUnl)'. Our company pmvidcs l;uod paying 

jobs, with SOlid ""ndit~. i""ludin" h~ahh insur:lfIC~. f"r this comlllun,ty, Thc 1110rcjobs "C 

provide Ih~ greater posili\'~ impact to Ihe Colcnwn communit) and ils dtiorens. Wind Clean has 

a strong "'~mm tment to 111,' conlfllUriity, pm"idingjobs ami suppbrting ci~i~ ~n<l charitabk 

orgllnjz.~tions with donations nnd volunteers. so lhm we o:an h3r~ a din.-c1 impact on itnpm\'ing 

lhe qualit)' of IIIi: in Colcmnn County. This is wh~, i\mcr1cllll sm3111>u~incss docs heR We 

~ilHply Wilnt our gOl'e"llnentl() giv~ us Ihe best o pp!lrtunily for uctess, 

I re~p"clfully urge Congress to !,: ~I this Qm" righl an<l eXlcn<llhc PTe for Ihc" ind ;ndustry for 

aJl<)ther Ihre~ year.;. Once Ihis extension is cOnlpleted. I bel; .... ~ rhe industry , htluld be able to 

sus~1in il.elf w;thoUI suhsidiC'S in the ruIUn:. Y''S, this w;1I be ~n ""'penS\);n IIIe fetler:ll budge!. 

E.lutlllC tax rel'enue and jobs cn:alcd ~ Ih~ !!-f'O",h in QIir indllSlt)' ll ltt~ lh:m QITSl:I ,his cost 

More iml'Ortan'Jy, lbe pusiti,'c impact will CO"' ;n]1" 00 "~II pllSt tJ>c, ,,-~pi.r~tiQn ofrhe I'TC in 

! OI5. 

h~ wind indUSll)' is a key compo~"1 in 3 l1stai""bl~ long leml energy policy that die Unir~d 

Smt~s budly needs. All fom,s ofenc~y gencr",ion haW" I'I~cc in Ihi, poli"y. Our goal.hould 

..., complNc energy imkp"'odcnce. This " ill "'qui.., Illore oil and gas ~xplornl;on as w~11 as 

developmcnl of rcnc""ble ""er~,)' indtlSlrics. This i$ ",h:.t the Am:rican people nt.'e<I and wanl. 

nO" and in Ihe fmure. for ge!>e11'tti,ms '0 come. 
1203 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1149

I Bppr~..::iah' (hI.' oPpor1untt)' to pr~~nl my inpul to this hearing. I sincerely hope my voice is 

heard. for the sake ofthl." C'oll.'man community and this counuy. 

Rcspcc1l11lly, 

Tim MDnlcy 

Vl'lOwner 

Wind Clean COI"J\ 
1204 

Statement of Wind Energy America, Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1150

Wind (""rgy Amorita. Inc .. jI leadin& "in<! project devdopo:-r baS<"<! in Ed~n P",irie. MN ul"g<'s 

Congrt'SS 10 extend the wind elll:rgy productiun t~ x credit ~1'TC J as quickly 3;; po~ iblc . 

We mre 3 small t)llsineh . and ~re being di.....:1lY- 3fTe<:led by lhedelny. as it take~ many years 1u 

dev.Jop Qne oflhe e projects. ngre~,; hould TlOt wait lQ cs!.>nd ti,e credit until j ust befurf" or 

afkr it ~xpi Te!;. 

Wilh tm., uncerminty of the PTC'$ future , "C are ,~Iuct~ntly windin~ down a ~i~nilii."llIt p<)nion 

of our US "ind !kl'clop",ent activity and instead are planning layo fT~, This "'ill reJult in Ihe loss 

of million. of dollal'5 orne" inve' lme'll. con lructiunjob~, tax 001131'5 and cUlnmonity Ilcnd,ts 

in lho: US. as a direct rei;ult of Congress . deb)' in pa.,ing ~ limely e.xtenSiQu of the PTe. 

We slrongly UI1,'1: this committee tu imm(<diatcly Ulk ... up:tn extensiull oftll.: wind •• ,""!\)' 

production ta.x cn.~it. 

Urian flill 

ChiefDe~cjopm''1lt Officer 

Wind Energy Americnlt .. , 

12 100 Singlet"", Lalli: 

Ed(~l Pnliric, ,l,IN 5534..1 

(888) 521-90'}<) 

Ilhill®." indene'gyamerii.·a.cum 

~" :w ..... " in4.e IlCl1OO!.n!£.!i<La c£!!ll! 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1151

~.J 

W[NDPARTNE RS FINANCE 

M~y 10, 2012 

The Honorable Dave Gamp 

Chairman 

Hou~ Committee on Wa'f\ and Me .... 

1102 Lomgworth Ho",.. Office Building 

Wasi)ington, DC 205}5 

The Hllnotable Soand". M, levin 

Ranking M~mm.. 

H""", Committee on Wa~. and Me.", 

1139E Longworth House Office Building 

Wnhington, DC 20515 

.. _ -~­ ' .... Jo_ N ___ M." .... 

ffl .. "· .... o 

- ...... -.-

I, Ken V.II~ and Pre51de~t 01 WPF, has bet!'l3ctovelyjnvolwd in the wind j"dust", since"200l. Due to 

th~ ITC."d fTC 1603 (coml)ine<l <IS rrc) Ihlt wa. put In place in 2009. Ihe distributed wind Biffieratlon 

irnlu.r'Y II"' 8rown , ubnantlaUy "",,' the I"".r couple of yea" and i, olten able 10 compele with larger 

"reiects. 

Now with Ihe ~.sible expitation of the ITCprosrams and no replacement me.:haolsm in place. the 

di511ibuted fileneration),aoout to die complelel~. especi~ ly In the lOOkw· 10 MW iiled Ploje<:l~. The 

2!!b! W~Vl0 51~bilile the induillV I. to p~ss a long term ITe pr(>gr<lm. The ITC ls needed .ince the PTC 

d(>e. not WO<~ I(>r 5mallllr pr(>ject •. When project'llet aDmie 10 MW'., then l he PTCcan mme likely be 

used, 

The allvent 01 the Ile .nd .... peci.Uy Ihe lliOl Cash Grant has made.~ sub<l.mtal econo",ic difference. 

Proj""B linallv are able !O bring in inve~to" !O I,nance the ",illionl of dolla" needed 1m each prOject. 

Local inve'to" help d.M> IlKaliled employment and economic benefits. The millions of dollars inve<ted 

in the loca l community c,ute mOre 10Cilli,ed labor and retail jobs. The prOjects themselve~ create 

Inrome for landowner •. ind property ta~ levenue 10' thecommunltY1lnd schools in e.cess of 20 - 40 

vears. The.pre -developmentcollS create Io.:a l job" which Citn be .several vea" before projectl qu.r.ty 

for Ihe ITC. UnfortunatelV beau." of the forthcoming explration, and the difficultie , working with local 

utilities, there I. now very little new de .... ,opment happening in U ... dlstribut01d gener.tion market. 

Thus It Is Imperative that the He for smallet pro/""ugel extended. 

The improved efficiency of the wind turbi"", them ... lves has dramatically impro .... d the turbine 

performarn:e w~lc.h has hed a poo;ltive Impaol on dlst'lbuted sen ...... lion Srowth and c",t effectivene ... 

This imorovement" partlallv due to Ih~ ITC.Tn", provided a du.er path for the industry Krowth. The 

ITCe>rten.iOll will enable manufacWren to COIIllnue to make the "Hded Inve~tments to imp,OV<! 

perform,,"ce .irKe they need losee a .t. bl ... m"rket to justlfV the inv ... stment expense. It iHOflU'lv"ble 

that with the fTC e~ten.ion and continuing !urblne efficiency Improvement<, and a. NatlJral gas pnces 
1206 

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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1152

inettale in the ne ar future, wind will be th~ low cost e le.:tricif'l provider without the use of tax credits, 

li~ely within fIVe yeat5. 

The renewJ()B olille ITC for renewable ene.rgy Is also a malter 01 paritt and la·rness. The BO~mmen! 

subsidIzes every form 01 energy in this country and to not. provide renewable energy ~ portIon of the 

same benefit. ~ just plain wrong. All the Industry Is asking for ilre benefits that are somewhat close to 

what the oil and gas indultry receive Irom Iheir non .... pirlng lax credils, and wllkh In turnal'lO help<; 

the environment. The other option i. to discontinue Ihe billions 01 dollars olbenefits thjt 011 and gas 

receive from the government which would make the playing field fair. 

An e.ample 01 aClivily is WPF I, wor~ing with two fortune.500 cempanie-. that have a sunainability 

requirement and are ",rlously locking at producing their own renewable energy electricity. We can 

provide electricity lower than theIr current electricity rates. But, Ihe companIes will not move th ~e 

projects forward without iI breJk·evM relurn on their investment whith canonty happen with h~ ITC. 

I ilP!lred~le your reading this letter ~nd anVilssistance lor tMe fTC ~~tenslon. f~eI free. to c.1I meil any 

ClueSl;ons. 

Ken Valley 

Preside'll 

WindPartnel!; Hnanee. llC 

900 IOSCenler 

80 South fi@hlllStreet 

Minne.polls, MN 55402 

612·371·2040 
1207 

Statement of WindGuard North America, Inc. 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1153

Dcar ~<lics and Gentlemcn; 

WimlGu~rd Nurth America. Inc .• a leading wind conslIlmm bas,"tI in Springfield. Virginia, 

lIt);cs Congress III extend Ille "ind energy production I:~~ credil/PTC) as quickly as possibk. 

WimlGulird prtlvides its clients ~nginecring ser'o'ices of the highest standards in all areas of 

"';1'1<1 energy ulilir.ation, With the PTC's future being W uncl'11ain. our eorporJte hadquurten; 

in Germany is St!riollslyconsidcring Closing its US ofHcc and inswad of inwsling about S2 

million in fUrlhcor scr\'ices and possibly a wind tunnel hen:. runding. St!rviccs and starf 

",rourecs remain in Eul'Opt'. This will resul! in the luss ofncw n""~tment. jo~. I,,>. dollars 

and induSlry benefits shirti0ll.~w~} from the US. as a dir<:et resul! ofCon~s' <Ida)' in 

passing a timely extension ofthc PTe. 

We strongly urge Ihis commilil'C to imme<l':!t!'ly lake up an extension oflhe wind energy 

producti!>o a~ ere<lit. 

Thanlc..)ou vcry m\lch for }our lnne and c.lipccially your cunsidc,~tioo. 

Cordially. 

Martio Schmidt-Bremer Jr. 

Chief 0r-:mt,ng Ollkcr 

WindGuard North America Inc. 

7670 Northern Oaks Cuun 

Sprillgfidtl. VA 22153·3546 

! (571)331-7927 

m.~~hmidl.bremer€wintll!.uard.com 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1154

Statement of the Residential Energy Efficient Ta~ Credit Industry Coalition 

before the 

Subcommittee on Select Revenue Measures 

Committee on Ways and Means 

United States House of Representatives 

NMember Proposals Related to Certain Ta~ Provisions ThaI 

Either hpired in 2011 or Will Expire in 2012" 

April 26,2012 

",_n., "11 .. , .... , ...... , .. ,,~f1M'..,. .... _ " ....... . 1""·"""'11 ... 1'.,."",,_ ......... , .... ....... ,.'bOr" .. lMJ. .~.i¥< "' <'; _'"'",'~ ... ,\>I:: Nio»~I'" i-';'~·';:.,o, ••• "'1'->")'.).""'" ,. ..... ....,_ .... 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1155

The Window and Door M.Jfluf~cturers AS5OCiat iofl (WDMAJ would like 10 thaflk Cha irmafl 

T,ber~ Ranklflg Member Neal ilnd Ihe m~/s of the SUbcommittee for theopportunil'110 

provide this statement regarding Ihe residential energy ~Ifklency (2SC) t~x (ledit and the vllal 

role it has played in increasing energy effiden"" and creating Jol>~. 

Founded in 1927, WOMA is the premier I",de assoclatlon representing the luding 

manufactu,ers of reSidential and rnmme rcial ..... I"do ...... door and ~ylight produc15 forlhe 

domesli["and export. r~eh. WDMA membe .. ·are IIKused on i olal Producl Perlormance'" 

p,oducts thai a,e designed and b';IIIIO performance·ba.ed standa.ds. WOMA mem~ .. are 

leading Ame fica's eflo. u to develop and utllile ene.gy e lf1cienl windows, doors ind s~vljghts 

lor bot h new and repluement construction. 

We JPplaud the Subcommillee's e~amlMtlon of tax provlslons Ihat e xpIred In 2011 and will 

uplre In 2012. Our le<!lmony will co,nmenl i" gener,,1 on Ihe goals o f e"ergy elflc~ney I" 

building, and specificallv on Ihe ;mpona"ce o f Ihe 2S( tax credit to allai"'''g the dual 

objecll"". of s aving energy a"d spurring l"venme'li in U,S. job creatton. 

M~~tl!)1 Our ~!! o!!.'. ~~n ~ils I !:!!o!,lgh ~!!!.;I.o .... ,_ ~ " nd Sl!y!lg!!l .!tep/ace"",nt 

Much has been -Silid a"d ..... rille" about redudnglh~ nation' •• ellance on fore lsn o il and 

Invesllng1n rene ..... able energy t echnologies-bol h Important SO.'S-bul not as much alle nl;o" 

has been paid 10 Ihe Il'r)pacl Illai Impro~iflg the energy e fflclertcy of e~istlns buildings could 

have on reducing e""rBV consumption, and, as a re.ull, redue)"! ou, dependen-ce on foreign 011 

and othe r fossil fuel •. 

Re, ldentlal "nd commercial building. account for 4 l percem o f all e"e'BY use i" Ihe U"iled 

States (U.S.), while U.S. build;,,!. alone ac<:ounted for 7.4 p<?r~~nt of global ene,BY con.umplio" 

In 2008.' Significantly contributing to th at energv cons umplion is Ihe "IKk of nearly a billion 

single-oan" wlndo ...... still in use in resld"ntial buildinss ala"". As Ihe Gliforni" E""rgy 

Commissio" nOle., Ihe amoU,,1 01 en"rsy 10" e arn year through I"emele"t ..... Indow. and doors 

Is equivalent to the amount 01 011 the nation . e<eives from the Alaska pipeline.' 

Any natio"al energy tax policy "e~'lo make rep lacing IneHl,ienl windows and doo" .. hIgh 

priority If we a re 10 make im prov~ments in the o~erall e fficiency of our "at ion's residemial and 

commercial building .tock. 

esldenlial Energy Eff clen£LI~ Tax ped ll 

Enacted •• pan of III" Ene rgy Policy Act 0' 200S, the origi".1 purpose of In" Resldenttal Energy 

Effldent hx (redlt (Internal Revenue CodeSectfon 2Sq w~s to sa~e ene rgy. IiOWe~e(, In recent 

years, the 2S( Inee"tf~fll ha~ achle~ed two compelling natIonal goalS: 

S-aving energy by making energy efficIent home Improvements mOr~ a ffo.dable tor a 

wide sJ)Ktrum of Ihe AmerIca" public; and 

' 1011 By;""'" E,..,IV Do •• 8-. u.s, Oep-l"",.n' ol Ene'I., om. o of[". 'J'I £lno.'l<'<' .~d R.,..wable in .. J'I 

I "To<I;&v'. W;n<lowo." C>tlf<)." .. [".'lV (c"""I .. "'n, (oft •• ", .. " ~". J'I C<nl ... , _,<O"'~"' '''' ''I1'1< "''''.O " , 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1156

Saving thous"nd. of U.S. manufacturing and can."ucl;an Job,. 

We b .. lie ..... th~l ~ properly focu.ed r .. sidenllallax credil can erlkiMlly and eU .. cllvely .pur 

private in ...... ,m .. nt In en .. rgy •• wing m .. asures. Whil" nkhe populations ut ili." other tax credlu. 

the1:5C tax credit i. brOild·ba.ed. By all accounts. il was hUGely popular with the Amer>can 

homeowner. p~rtkularly the middle class, In 2009 and 2010. Internal Revenue 5e",lce (IRS) 

prelil"(1lnary daM for 2009 ~haw' t~xpayers with adjust...:j Gra .. Income 01 und~r $HlO,OOO 

claimed two,thirdsofthe credit.' 

AI.., ~nown iI.,h .. Nonbmine .. En .. rgy Property [r .. dit. 25[ pravid .. , .. cr .. dlt lo homeowner. 

who mak .. Qualified .. n .. rgy ellkien"! ir"pra .... menl5. Including window •• doo" and ,~ylighl5. to 

an niSling resid .. nce . In 2009 and 2010, the credit w~. increa ... d to 30 percent aflhe cost 01 

Improvements up to $1,500. For 2011. 1M 2SC credit wiS reduced to 10 percentollhe C~I of 

Improvemenl. UP to $100 for windows ;o nd skvJi£hu a nd $500 fa, eKlerlo, doo, •. Th .. 25C lax 

<redil expired ~t the end of 2011. Many of Ihe producl5 that qualified tor Ihe 25t lax c,edll, 

Incl uding windows, doors and skylig hts, are manUfactured-and later installed-in Amerfca. 

unlike "lternative energy SOurCes that have benefited from other federal Incentives. 

Th .. nalian', housing industry I. ,lowly .ecove.ing from a prolang .. d .Iump, which has had a 

p.ofound Imp.ct on the window, door and ,kylighl industry. Re.ldenti,,1 window s..-.I", fa. n~w 

construction dropped 65 percent from 34.1 million units in 2005 to Just 11.9 million units in 

2010: Thi~ has resulted in over ~ one·lhl,d decline in employment In OUr InduSlry ~I nce 2005.' 

Further. private residentia l investmenl remained near , .. cord low leve l, at 2.5 percent of gra .. 

domestic product fa. the fourth quarter of2011 -in comparison to it. histaricaW'3ge of 

approximat$ 5 percentcl 

As a ."suit, Iher .. has be .. n a demonstrable shift In Ihe last few yea .. 10 Ihe r .. mod .. llng and 

relrofit market for the window, door and .kyli~ht industry,~ pu" .. d in oart bV the 2St tax credil. 

The 25C t3X credit in e ffect lor 2009 and 2010 was tremendously ' ''tcesslul in .upporting tM 

Industry and Its workers du,ing the worsl housing downturn .Ince World War It. The la~ ,r .. dit 

c~n be directly tied in au, Ind ustry to Ih .. p.eservation and creal ion of Amerk~n jobs and 

ke<!p ln8 plants and production lint's open. 

Thi,shllt to the remodel InS and .etrofit ()'Iar~et is evident in compari..,n to new t'Iome sales 

ave' the past five yea.s. While lotal remodeling activity declined somewhat, II certainly 

weathe,ed the econamicdownlurn much belle. than n .. w home construction, In large part due 

to the increa.ed 2SC energy lax incentivesCangre .. enacted in 2009. 

The following chart courtesy of the National Association of Kame Build .. rs (NAHBI plots new 

home sa les (left axi'l and tOlal remod .. ling .. xpendilure.lri£ht axis). The data indiQlle. that 

,emodeling p"nditur"5 tared bette r over the 2008 through 2011 period than new home ",Ies_ 

In<f,v'<I"~ h. ~~'Ym' Pr~"mIn.,vo.,~, lOO!l, 5 ... ;"j", 01 ""'''''' ~ B~I~"n, WInter ZOU. M"h~ P."II] 

• MMA./WOM" ~ 1,<lu"'vji ... IlIk.r Rr\41tW and "'.ca,~ 10lQ 

• U.s. 8"ro~ 01 ~_ :;to""'" d.", 

' U,S, B", .. ual £'''..,'''It .. ''''I .... d ... 

, 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1157

The ta. credil program ~r~ylded a floor Dn remodel ins: aCI"'ilv. whlch has declined Dnly 32 

percent since Its peakeomp"red tp 76 percent Ipr new hpme 5111es. 

I 1,000 

i - i ~, 

~ _OIl 

,. 

New Home Sales and Remodeling 

( . .;~.' 

,,~ ' 

". '.. ~" ' 

.~ ' 

"'" • 

'---. ... -' -....... " . :::: j W'''.OOO t 

::: i ~ ... mo ~ 

$10.<.,., 1 ~ 

I 2SC tao credil programs /rP!'l1 a 

remodeling pe'specllye a.e signJf1canl (selling asi de Ihe Ipng_run omergy efficIency benefits fl" 

hpmepwn .... ). 

Fpr ta~ y<>ar 2009, JRS dala In dicate 525.1 blilipn pf remodel1og eJ(pen~es In cpnneclipo 

wilh Ihe sectlpn 25C tao credit 

NAHB estima"!s Ihalth,s leyel pf ,emodelinB ~ctiYitv was ilsiOClated wIth 278.610 fIJIItime jobs 

~ 1]S,540 pf these )pbs were In the cpnstructlon aod remodeling~eclprs 

Hpmeowne •• 'OK")",,d "Ia~ benefit 01 $5.17 bilHpn frpm the 25C credit 

93 per'''nt pf !a.pay ..... claimIng Ih .... n"'gV c, .. dit had adjusted g'oss locom .. pf 

$200.000 pr Ie •• 

The 25C credit Is claimed pn the 5<lmv tilM fprm (5695) as 11 similar rempdeling credil, the 

seclipn 250 credil, which prp~ides a npnrefundable 30 I"'rcenltax credll tp cpn,ume .. lor the 

purchas .. and IMlallalion 01 certain pOw ... r p.pduol1pn proll<'rtV fl" a hom .... Typical u!ie' ind ud ... 

spla'. Seotherm31, 'uel cells, and small wind ene.sv. The credit i5 uncapped. meaning that all 

, 
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lIualifie<l e_pel'lses may be claimed. Labor cosn are eliKible. and un like section 25C. the section 

250 cf<!dlt can be (Ia lm<!d aKainSI the AMr.' 

The map tlelow tracks Ihe number of la'pay<!" in each Siale tllat claimed eilher Of both Ihe 

25C al'ld 25D ta. credit. although NA.HB <!51imates thai nearly 90 pe,cent of claims were 2SC 

related. IntUitively. larger Sl ates 11'1 terms of populaliol'l had larser l'Iumbers of la.pa)lers 

clalmil'lS Ihe credits. 

Number o f Taxpayers Claiming a 

Residenli .. 1 Energy Tax Credit 

I. 

. -_.,- _ -.- _ .. II;> 

-.-

11'1 the l'Ie>l map, a slightly different picture emerges. This map presents the perceniaKe 01 

laxpayers In each sta le who claimed either Of both the 25C and 250 ta. credits in 2009. A clear 

concentr;otion of tn credit use can be seen for states in Ihe Northeast and upper Midwest. 

Why? There are two lead Ins explanations. First., homeowne .. In nales in cold weather climates 

have more 10 gain Irom enerSy-efficient improvements in te rms 01 re<3uUld utilily 

blll$. However, thNe 1$ nO reaSOn to believe that Warm wealher homes could "at also be nefit 

from enerGy-effielenl improvement$-

'AithoUlh ,h .... rod. _. "'" .110 .. ' •• p.v." tod"m _"on ..... 2SC«.d" ""In" ,~. AMT. '~ Mu.l"MT 

.p.'''''" .... p!<o lly allow< ,.,_'" to d.1m ,"",10><> 2SC .nd O\M' " .... on. l. ,,,,,,,rtund.bIo ''''' cr.,"" ••• iM' AMT. 

1M ilmpl •• ""iI~t!orw.,d 'PprOK~ U>N i" >eel"'" 250 off." ~ ",<><Ie' 10< i",pfO\l'''I 'he , •• ".", Z5C .. , uedi •• 

A ~ to, «.~~ 'hOI It><l1rdb labor om, .. nd l> . u'o .... 'iull'j AMI -prete,'od I> il1np'e . ""lh' o!W.,~ _ 

off"",I • • . 

, 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1159

Percent of Taxpayers Claiming a 

Residential Energy Tax Credit 

I 

.' ( 

Thus, the second explanation, and the stronger one, is that the states w ith relatively more 

common use of the energy tax credits ,,1<0 conldin older homes. The follow ins map detail,the 

median year of construction for housing units in each .tate. and there i. indeed a rough 

correlation between tax credit use and older hOUSing w ith concentrations of both in many 

northern states. 

Median Year of Houses Built 

( 

_._-

-_ .... -.'". --.... = ..... - -- A I>omeowner with a 50-year-old home is much more likely to Improve their residence than a 

homeowner who has purcha<ed a newly constructed home, with new construction more 

common in the southern part of the nalion. 

, 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1160

The last map tracks the total amount of the tax credits claimed. OVerall. in 2009 taxpayers 

cla imed nurl~ $5.9 blll;on In 25C and 25D ta~ credits. For the two tax credits combined, 93 

percf!nr ofro .. cl'f'djr clolms _re mode b~ ro .. poyers ... 110 hod 011 odJusted "ross Illcome of 110 

m~ tholl $200,000, which Is indicative of a middle cia .. tax program. 

Total Amount 01 Resldentl31 

Energy Tax Credit Claimed 

With respeCllo the 25C.credit for energy·efficient remodeling of "",nlng homes, Ihe IllS d313 

Indicates a total of $2S.1 billion of qua lified expenditures in 2009. 

Because the tax credit In 2009 was limited to $1.500 per raxpayer, nor aU 01 this activity 

generaled tax credits. In lact, according 10 the IRS data, just a lillie more Ihan 71 per<:e nl of 

these costs (S5.404 billion versu. potential S1.539 billioni were allowed in the 25C <3lculation 

due to the $1.S00 IImlt_ Moreover. due 10 olher lax lules. only $S.I 72 billion of t~e $5.404 

billion were allowed as realized 25C tax c.redlls. 

The first portion of the 2SC credit uuge i. relaled 10 energy-efficient building envelope 

Imp.ovements. wllh 13 peteent of Ihe 25C claims associated with Insulation. 34 per<enl with 

windows and s~y ights, 9 percent with doors and another 9 percent with qu alified 'oofing 

materials. The second p~rt of tt.e "edit dealt witt. ene.gy-s;lvlng ~pp!iance install ~t ion, with 16 

p"rcenl of the tot~1 2SC claim. conne<:ted to qualified heat pump". air conditioners, water 

~ealers and stove,: 11 percent with qualified natura l gas. propane. oil furnaces or hot wale. 

botiers; 3 percenl with ad~anced ma in air circulating fans used with a natu ra! g~s. propane or 

oil lu rnace. 

An e~onomic impaci model has been developed bv NAHB that enable. estimBting tOlal 

emplovment and economic income impacts from home building 3nd .emodeling! The mOdel 

• ~n~:J/ww"'" M,OtIl "h ... i<,~.~.1>e<tk>rl ~134&.~""'i<Co"' n' O'IOlS.)&<O;oM~ lll , 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1161

uses Bu.eau 01 Economic Analysis (BEAl data and BEA input·output table. to gene",te 

«ooomic Impacts by sector. The following table p.esent. the imp~cts that re.lllt from $100,000 

01 remodeling activity. 

" 

Proprietors' Corporale Total , 

The job. are mea,ured on it full ·time equivalent (FTEl buis. Thus. "'AHS e'lim~le. Ihat every 

$100.000 of remodeling activity creates 1.11 jobs On a" FiE basis. 48.6 percent 01 those Jobs 

a." In the construction and remodeling secto •. ~ 

Pulling all the data t08ether, the IRS data and the NAHB economic impact model Indicate thai 

for 2009, a total of278.610 fuU ·time Jobs Were in connection with tl>e 25C credlt-135,540 of 

these Jobs wefl' in the cOlIStruclion and remodeling sectors. The program supported 

approximately SIJ.2 billion in wag'" for tll""e workers and 57.5 billion In net bu,lnes~jncome. 

TreasufYlnMlector General Rel!!!rt on Residential Ene<gy Credits 

On April 19. 1011, the U.S. Department 01 Treasury Inspector Gene .. 1 for Tall Administration 

I .. ued a ,eport. on the ,e. idential energy efllclent ta~ cre<lits (IRC 2SC and 2SDj and came to the 

conclusion lI>at Inadequate p,ocesses W'''e In place to verify eligibility for the credits. 

SpedfiCilIIy, the report stated that: 

The IR5 con",,' verify (emphasis added) whelher Indi~iduals da/minIJ Res(dential r "erIJY 

Credil' ore enlitled 10 them '" fhe time Ih<,/, la" ,,'IUlns a'e p,oc<',.ed. TI,e IR5 dof'S fla/ 

,eQuire ind,viduols top,ovide ally rhird' pcrrydacumellfalion .uppo,liflg I/o .. punha, .. a/ 

Qualify/fig hame imprav .. menl producu and/or costs OSSOCiruN willi mak'n!} ener!3'Y 

rn~ Ol'oel ''''~ ... :! o! H ...... e.,,'Id"' •• "" "'0<1 " .. 8 .... t"" U,S. [co .... ",w. NAI+~ £...,....." ... 

, 
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wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1162

efficiency impfovem~nlS anrl wherher theu: olloli!itd pllfCh05r5 onrl/or Imp,ove~fII5 

oNef" morle to Ihelr principol tesirlences. '0 

Wllile Ihe report did twle. number o f deficiencies With Ihe IRS process for establishing 

verlflcation of eligibility lor the crerli!. some olthe credits claimed are legitimate desplte the 

inability 10 <1l1abl,sh eliglbliity for Ille cre rl'l. In addilion. the IRS nOles IIlal1l can Improve II. 

processes 10 add addition al sa feguards and improve Its ability to verify eligibility. WDMAstand. 

ready 10 assist rll .. l overnme nt in making .. " .. Ihallhe credit I. only 8ai"8 to mase wllo truly 

dese rw! ti"lt> benefit. 

To th31 end, WDMA has ,ecommended consumer-friendly vedfiQJtlon te<hn,questo tile IRS 

WIth Ihe goal of improving the .ystem for assuring tha t tile tax credit claimed On returns are 

;!ttually for qualifying energy eH;c;enl windOWS. doo •• ~nd skylights. Currently. 00 

documenlatlon Is provided on lax returns about the qualifying product. Taxpayers must 

maintain document ation In the event of an a udit. 

There a, e a ""fiety of mel hods that should be e xplored 10 ptovide an identifying numberor 

cGele Illat could be inclUded on lax relurns 10 help the IRS establish the eligibilitv of ;r product 

lor tile t,,_ credit, which could be implemented for u ... with e lectronic tiling. WDMA Will 

(anUnue to work witll Congress and the IRS 10 Impro~e the system of producl ve rificaUon. 

Conduslon 

Without quesllon. the n"tion Is I;lclng the Iwln challenge s of reducing ene/gy consumplion 

while spurrlng/ob creation. The 2SC rnldentlal energy efficient tao credit encourages mlddle_ 

class homeowners to undertake imporlant and beneficial ene'BV saving upgrades, wh ich in turn 

supports AmericanJob, acraSS Ihe housing Industry supply chain- fram manufacturing 10 

dlmlbulion to sales 10 Installallon. The 25C credit has been popular because II works. 

The 2SC t~. credit has broad support among window, door and .kylight manufacturers. 19 

Industry e)(ecutives senl a letter to the Kous ... andSen"te in February 2012 supporting a robust 

e~leflSlon oflhe 25Ct;lx c'edll. ~nowlng the $1.000 level would eHeClrvely leverage consumer 

activity and job prese",ation. A copy 01 the le iter 15 Included In the appendix of this statemenL 

WDMA would like to thank tile Subcommittee for tl>e opportunity to provide this slaTement 

and loo~s forward 10 work1ng with it in e ,tending Ihe 25Clilx credit "I a level that will support 

the na!ion's energy goals While creilting and preserving American Jobs. 

for More Information Contact 

6.mG;lnll 

Dlre clor of Legi,latlve Affairs 

(2021367·2346 

bgilnn@wdma.com 

.. ' .'ca.» ... w ... ~ NOt bt.b~'t.eo to '1y Ehl;to~i'" 10' """" \lol fn.' J11 0-0'<11,,: T, ... ",,,, In,,,,,,,.,. G.~," 

lot T • • """, ... 1>11", "",. I.reoc . Nu",bo< 01l ~ H)38. Apr~ 1.9. lOll 

, 
1217 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1163

American W indow, Door and Skylight Manufacturers for 

Energy Efficiency and Jobs Preservation 

February 28, 2012 

To All Membe .. of the U.S. Senate and House of Re presentatives 

Re: htension of the 2SC Residential Energy Efficiency T ... Credit 

We the unde .. ;gned manufacture ... prodUCing Ihe majority 01 the nal;on's windows. doors and 

skylighls, are writing 10 urge yO\Jr support for a robun e~lension 01 the residentia l energ~ 

efficiency (25C) tax tredi! that l"xpired a t the end of 2011. When set a! the $1.000 level. Ihe 25t 

"'~ credit creales and preseNes America" jobs and promoles energy efficiency by helping owners 

of existing homes afford higher eff1dency products such as windows, doo .. and skyligl'lto. 

ReSidential remodeling activity spurred by an elevaled 1SC la. q edit in 2009 and lOla waS crilical 

10 mal"lainlng our economic vitality. In 2009. IRS data indic.atei the enhanced tncredit spurred 

Ame'icans to Invest $250.1 billion Oil remodeling and effiCiency upgrades associated Wilh 25t. 

Moreover,.lhe prog'am supporled 278.610 Jobs, apprOximately S13.2 billion in wages and 507.5 

billion In net business Inco.,.,e according to an analysIs by the Nall(mal AssociatIOn of om~ 

Builde's. 

The loss of Ihis Ince ntive before the housing markel r .. coveu wi!! conlinue to hamper Ihe creallon 

and p,eseNat;on of vita l u .s. manulact urlngjobs. With th .. tao credit5ubslantia lly reduced fm the 

remodel1ng/reuofit market In 2011, window and door produulon in the u.s. dec,ea<ed 22% in me 

fitS! quarter of 2011 from Ihe last quarte, 0120tO. Extending Ihis incentive unlil !he housing 

market further stabilizes will prOleCI valuable U.S.-based manufacturing job. up and down the 

.upply chain. 

We urg .. yoursupport fo r an extension of a robust 2SC ta>rc, .. dit, ~nowing the $1.000 leve l would 

effectivelY leverage consumer activity and job preseNation. As you know. the credit ben .. fiU 

consumers b~ allowing them to choose from iI menu of energy effic1ency options and dete,mine 

which product wor~. best for tl'le i. needs. It c,eate.lobs and benefits homeown .. ,. by reducing 

th .. ;r energy use, lowering the'r ene'IY bills and improving thei, homes, 

Thank YO\l ln advance for your consideration of this issue, we look lorward to working wl\h you to 

include an extension of the 25C residential energv efficiencv credit in tax legi,latlon currently 

being ~onsldered In Congress. for additional Information, please conlacl Be" Gann, dire<:tor of 

legislative aHairs. Window & Door Manufacture .. A",oe13110n (WDMA), 31 (02) 361·2346 or 

bgann@wdm3.com. 

SIncerely, 

America n Window. 000, & Skylight Ma nufacturers {see att ached) 

9 
1218 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1164

~f7.!~ Prelide-n! &. CEO 

AndefWn Co<pot~i<I " 

e.~POr1, Mlnnll"'lo 

~.nd,! O. Emer",~ 

PrWdoon\ &CEO 

taoade WindOW$ 

SWQne Vl lley, W •• l\lnglon 

Iu,>-.!<\

AI,,, 

. 

M.,tow 

~ 

P,eol<;lt.,t& COO 

H • .....,. ... ild .... ,.od..." 

W.lth' m, '$~hu~1t$ 

Sle""" 541$00 

V.I'. & Gfol'ler" M.~ 

K.I._. Inc. 

Grand R.pld •• Mlch;g.n 

4_~ .......... f :-ynn Morst~ I'tesiMnl 

Ply ~ .... Window. 

~noOre. 'IO'llnl' 

~C:C ~"'Oelman 

1"_1 

SuntlM! WiO>dQws 

Tem~t'nGe, Mkni8.n 

SIPYi! 00nIwr 

~~M·~ttt 

Weil.nd Slidl". Doors & Window. 

Oceilllokle. c..~IDtnl. 

JI/''''' Burris 

Pt-eoidol'nI .. CEO 

A.5ooc1.1led M.t~b. UC 

C~y;aho . hlfl, Ohio 

~7~G..-,.... Den"I. M.ne, 

"0 

OI.rnpio.. Window 

OnclM.tl. Ohlo 

DominI< T"1018111 

P<&dMI&C£O 

Hurd WindowJ &. 0-. 

Medford, Wisconsin 

~~-' Chow"",nl CEO 

The MitIW\ Cornponle. 

Warroad, Mlnne"'l~ 

801lMul~t 

ChairlNn &. CEO 

'raVi. 000< IfI(. 

ug.rc~e~. Ollio 

/..&..:£ -,." .--(2....<...,- D.';d~nOim 

"0 

1M,m.· T, ... Door'I 

MaIO",", ONe 

'" 

G..;Irge Simmonl 

P,aldem &. (to 

I .F. Rich w~ .. Doon 

r<lew.n, ~'W"II 

Thoma, C. Chen 

"HiMnl 

CrynoI Window &. 0-STIle"" 

FII>$hIna. ~I'W York 

11., C. Wendt 

"0 

JUD-WfN .... c. 

KI.moth F. II., Orelon 

~~ ill1d: .~" 

PfWsId.nl , ((0 

P~U. Corporallon 

~ 

~U • • I""'i 

rp mtr"lefSOll 

000 

Sierra Pacific Induotrl ... 

R~cldinl. ulifOfn;" 

fimotlly 8. i~ 

"'eo!oHnt & ((0 

VUUM Am.ric.o 

fOri ~I. South CarDUn. 
1219 

Statement of Winergy Drive Systems Corporation 1 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1165

Terry R.. Royer. PI' 

Win .. rgy DrIve SySfems Corporation 

l401 Madeline 1.;iOC 

£Igh\, IL60 1 24 

847-53 1 - 7434 

T.' q y .J'qycr@wl"crgy·w:oup.&<),,' 
1220 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1166

My name i~ Terry Roy~r. and I ~m the Cf.O uf Winew Oriv~ Systems Curpbr:ltion. I would 

like \0 share my views abl.lllt the impact th~ Production Ta.~ Cretlil (PTe) n3s had on the. 

wind indu5try. While the wind industry has utililed other tll~ incentlves to ~~fn a foothold 

in the U.S. enerlO' marketplace. the u'''lerlying PTC has. by f~r. been the most dfectivc 3t 

gen~rating the private ~plr:al and investment cert<1inty th ~t a ny Industry n~ed~ t.Q grow ~nd 

prol;per. 

Let me b1lck up Fur 3 n,orneot to glveyoll a Iltlle backgroll'ld on Wlnerl:)l and how we fitln!() 

this convers~tlou. Winerl\)' Drive Systems Corporation is ~ division u[ Wlnergy Ag. an 

operating unit.ofSiemens AS. Winergy OriveSystems CurtJO",Uon isthe US operating arm. 

which WlIS Incorporated In 2001. We ~n: headquanered In Elgin. IL, a WeStern suburb of 

Chicago. Wl nergy Is the world le~der In gearbo. es for wind turbines. 'r he searbox is the 

keY c"mp"nen! Inside G wind turhine. We oper.m: two fuctorlc. In Elgin and supply 

gearboxes to th~ top wind turbine manu ac urer~ In the United$ctes. 

Wlnergy taned here in the United States as~embllng and t~ ~tl ng gearboxes with II 

~mployees In 2001. In th~ p,st six-)",ars whePlthe PTC h~s nol betln allowed 1<1 e.xpire. thl! 

d<'llland it treated ha~ contributed to the expansion uf our company, and h5 helped u~ 

weather the recent ""ouomic downnorn. In ZOOq we openet! a new facility. Today we have 

360 empluyees ~upportlng our cusrumers with Ihe building of our products. Revenuefrom 

rhe wind hldllstry acrnunl5 for 100% of my comllany's tornl in[Orn~. 

As oue of the nearly SOO wind mauufaclIlring facilities ill the U.S .• we are just one (;XlI"'ple 

of the tritl",,1 roJe the PTC has played In th e growth of OUC ~~rtor. Theacct!ss to Ilnancing 

and the overall rnarke t rnnalnty tha t the PTC has provided to investors, h.~ led to the 

atc<,I .. "'ted growth ofwind farnls projens In th e U.s. In JU St the last siX year5. 36.094MW 

of wi nd hav" been co nstructed under a conslstel\tPTC· tills is over 80% orthe tOl.ll wind 

m~1:awatts In the U.s. Th~.,;e projects ,Icmand hUH~ pi~c"s of equlpm .. nt. Intricate 

engin .... ri ng. and a 5km~d Cflnstructlon force. Due to the ecu nomics of logistics and 

transporratJou c05t~.lhe wind Industry has quickly reallze<lthal making these paru; in lhe 

U.s. actually INds to lnwer cost!; and mon: emdenC)', So. th~ growing dcntand for the 

Cflnstl1lction "fwind projects. bnlUght on by the invest"r r~spons~ to the PTC. has led to a 

",pld II:rowth of U.s. wind manufacturing. Ind .... '(I. In 200S only 2S% of the comj>Qnenl 

pans of a "~nd project were built in the U.s, Now. we are making mort! tha" 60% of 

( onlpnnellt parts in the U.S. This l~ ~ m :nd tnat m"st (ontinue. Over 15,000 c~iSlin g luhs 

In 11'10'. Indo~try depend on it. nut 10 mention tens "fthousandsofpolenlial jubs. 

In addltlon to thiS growinG domesUc ~pply cllain. technology innovaUultS have also 

,ontlnued to push wind enerGY rur1 her dnwn th e rest curve. The o~t Qf wind energy has 

come down 90% sillee I<JKO 3nd capital costs have dropp."J 33% sinet> 2006 (HIt>Qn.bcrg 

New Energy Finance). Companies Ilke my own c"ntribm..d to the.e technolo~i"'l 

innovallons that Increased effidency and drove down costs. InnuvatiOfls in gearbox 

technologies th 1 WlnefID' ha s 1<'<1 ~re a kq inl'ut to th e wst re<1uctions we ha~e seen Over 

the la st four years. Win d ene rgy technology continues to improv~ as the Industry scales up. 

Th ... PTC has benefittt1 not just the manufacture", and d~ ... elopers. bur th e American 

"Iectrlclty C<ln}umer and th e U.s. <'ConomY3S 3 whole. Wind energy nOw provldes n"3rly 

3% of Amerlca's ~Iectridty. wilh that "mnller surpassing 2[1% h' the Slates of Iowa and 

Soulh Oako"'. Ov"",II. wind .. nergy h~~ accounted for 35% of~JI new el~c r!c gen .. r~tin~ 

L":IlIaclty in the la<l nve years. increasing the diversity and enefID' ""curity of ou r munt/)'. 
1221 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1167

Th" wind Indu"try has g"n~rnte<l Investment npWlIrd or $20 billion annually, which is 

greater than the economic Imp~ct on U.S. COP from the Colombia, P~nallla, and Smith 

Korea free trnde agrel'mcnts combined (Senute finun,e CommlllN' Statement. 

In/llfl!)· 

It I~ Imper~UVl' th~t the PTC remain In plaC'(' for the ncar-futurr so tllat prlv:lte Invcstnwnt 

cunUn))es to grow this m.rket and so lhat U.s, manurac!\lring jobs continue to be t reated. 

The PTC is no! a h~ndo"L It is a business lax credit. with fu"ding b.ased solely on project 

pcrlomlance. nOl ""alu~lion by governnlen! oJljdals. Without a me<:hanisnl with whkh to 

fund wind Ilrojects past 2012. manufacturers like W'"l'rgy a .... • alll.'ady Lustng business: I 

e~pect Witlcrgy orders for 20L2 aud 20ll to f311 by nearly 60%. which will lead to 

llbsequ~nt job losses. Industry-wide, 37,OOo./obs will hi- lost if the PTe is not extcnded. 

(2011 N~viganl Study). 

Thank you for your c(lnsid .. raUun of the PTC (')Ctcnsiotl - for drivi ng eeOI)(lmi£ growth. 

energy diversity am! U.S. manufilcturing.1 would he more than williuS t(l meet with Y(lu 

In person to dlscus~ such ~ cr'tlC31 tOllle and the err""t on US ManufJcturlnl! lobs_ 
1222 

Statement of Winergy Drive Systems Corporation 2 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1168

April 24,2012 

J lousc Ways and Means COll1mitl~"i: 

To Whom It M3}' Concern: 

Pleas<: work together to create ~n extellsion of the PTe I,hich is vilal to the wind energy 

indUSlry, 

I have hcen with Winergy Oril'C SySlems COl'('lOralion since 2006. II is hard to beliel'e, 

but J urn already consillcred ~n "old·limcr" here. The I'TC may hal'c be...'tl ~mund ~while 

bill our indu.try was truly in its infuney still in 2006. This induslry is nol ready 1,1.1 slonll 

on Its Q"n y~t. Whene"cr Ihe PTC is expected to c"pire - we ~"c sign)fkant drop ofis in 

our orders [Uld in tum Ihe order.;; we plDce nil Ollr vendors. This is alrclldy afTceting my 

vendors in Ohio und in Illinois, J also buy materials from businlo;;scs luc;j(l'd in 

Wisconsin. Tcnnes~ee, New Jersey. NclI' York. 're.'la!> CIC. We arc working hard 10 

illcrca~ our dnme~tic spend. 

We are doing great work h~re! We arc developing viable long ten" energy !SOurces, wilh 

linle impact on the en"ironment. lowering our dcpcnllencc on fordgn oil. increasing our 

national SL'Curily, providing good jobs In Amcricans and the list goes on and on. 

Plcase do HOI lei ncgmiw cX"lImplcs in the rcnl'wllbk cncrgy field such us Solyndrn 3nd 

how thaI w~nl bad - tarnish Ih~ entlre industry. We need Ihis lax credil. "e need ~ou 10 

I,ork IOgcther 10 make it huppcn und Amcricu needs these jobs to continue! My fmnity 

~hsolulcly IlCI.-'tls me 10 maintain my jub - please hclp us to remain cfnphl)'l'd. 

Sinecrel)·. 

Therc.'i.lI Burda 

JJuyer 

WiliNg)' Drive SySlems Corpol":ltloll 

140 I M~dclillc Laoc 

Elgill, II. 60124 

847·531-7415 

rh ¥~. b!!!d.!!f!!..-" in.:m,v1Q.uQ,i,:O.!)l 

rillc of Hcariog: Heuring 00 CCrt:lio Expiring Ta,, Pril\'isions 
1223 

Statement of WOTC Solutions, LLC 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1169

John L. Whil~ 

WOTC Solulion>. LLC 

nOlO W. 87th 51. 1>I",y. Sl~. 101 

Lenexa. KS 66115 

888.313.5696 

j'l:hjIWL"'.9k"~Uli~.'(),n 

Chaimtun Tiix'l"i Announces Hearing on Cenain Expirin!" Ta.~ I'ro\;sions 

Dear Qtairman Tiberi and t>kmocrs "fthe House Ways and t>leans SUOC0111111iul-e on Select Tax 

EX1~nd~rs: 

'Ik fedeml Work OpPQrtunil~ Ta.~ Cn."<.i;1 ("WOTC) is On<' Qflhc few mcanin\:ful 

..... sour<:cs 3v;.ilablc [0 111'11' the ~hard lu hire'" wa rc lar~,'<:l calc~udcs iind productjve work in 

t(xby's stubbornly Ilarsh job ~n~;runm~·1lI . Th~ p"'l"ffl' and h;SI0l}' ofWOTC h"" ptUv<:n ;tlo oc 

an elfl.'Cl;w 1001 to movc lh~sc workers from lali·IISt"" 10 Illx·poy"rJ'. In each Oflhc \VOTe 

1"'8<'1 cBte.&ori~5 . it is hard 1o argue Ihallh" di!>!nily end ""If·respecl inherenl in w,,",ing "",,,,r,lS not only Ihe worker, but in fOCI be"",fils our .suciel~' al alll~vds. We OUl1SC'koos = s .mall 

busi"""",. and wc utili).e the WOTC 10 help OIlrer smaU busincsS!.."!!IO: 

lI ell' WOT ..., lj !; ihl~ ClIlcll j~~ or ,. rk~rs lind d"" ,,"1 ,,'ork. n~lio,," id~; 

IIdl' "1111,1 0,'( ... lbst hi..., rh h~n1 to hi ",," ",·ftlllll)" "h",in th e WOTe nd II",. I..-

in <~ 1I1i i, cd t" lIir. "'flrt'. 

\VOTe has n<H yel bc~n """,,,~-d fUr 2012, another vi~1im ()flh~ cum.'n! P.c. i:ricilocl.,. Th~ 

nccplion 10 lhi~ "W; c~nuin cat~!:o,;"~ ofvel"rnns "hieh were addcti in 181~ 2011. While 

d~arly wen.inl~m;~d.lhis uddilional WOTC catc\:ory created I"" rNju;re,nenlthal uH 50s1atc 

WOTe officcs hav" to re"mi" in place. 11 ,Iso requires rundin!;.l0 assist what will be a r<:lativcly 

slllall number ofempluyers being hdpcd with Ihis la. . "I"lIi. silualion port~nd~ 10"" a sad 

e.x3mple ofgo,en.mcnt iuefJ",cicncy di",clly eallS'--d t>y ConlP""ssional inaclion. Renewing 

WOTCenjoys b,-oad support from larse bugin~"Ss and ~mplo)e~ sm"ps- who u!<i: lh;s ra.~ brcak In 

hi", from Ihe "hard to hi"," "ori<er pool. particularly thru;e hiring al 1m, emry I"wi. As Ihin,gs 

cl'~nlly sland. \\~ are hearing a L"On1-lanl str(:am ... rcomplbint'i Imm our ("'jub cre~ljng"'l small 

business clicnl, lr)'i"g 10 make hiring.ded'ion'. and [heir ,,",COl,ntan!., Tllis conlim,~d 

IlnC~r1~inl)' add~ 10 An alre~Jy Jifticull h"s ne~s dim~IC, 

Much is hein!; rnnJe nrll1e-gender !',lIp. 11 is nnt di!lkuit In sec 10"", WOTe can bc 

charaelc"rir.ed ~ a ",~o'"cn 's issUl!"" in ~ic" of lh~ foliow;,,!:, 
1224 

f 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1170

AccordlnJ!. 10 IJ'()I"CIl E/ltr~pn! l<!j'r, \lumclI OWI..ro 49'l'. of US finn. IU 201() (many of 

th"m SIO:dl sllln op~)anrt lhey b< cam ~ the majority ofille US worHo""" for the first lime 

in IJS hislory; 

A key c~legory of ware digibililY ure TANP redpi~nL~, 90"/0 DflANP rt'<:ipictlls U'" 

young women and mDtilel"S, 15% bet" .... n:!U and 39 y .. ttrS old; 

A si?.at>le ~n: l1lagc (15%) ofrc ~a,in!!. wore ,·Iiglble Velernl1~ are \lDlnen, 

Tn" pl~ or ~ ",es~gl: i;; 10 5;i)licil your help in ""dng Ihi;; lUX Im:ak ((lr snmll 

bu~iness cuntinued, h \}10 our tOrl,ide ... blt cffons in Ihi, I~gis iv" ~""n3 WI: t~n t~1I }'OU Ih~1 

WOTC elljo}s suppon ,m fI<Ilh si ~i oflhc aisle: R~pub icUlli tD"""II)' "ie." il ll. a ta x h""ak 

need,'<l by "job crealing" .mall bu,i~~~ in a lough ''COllOmY; Dem()<:r.IIS correclly 'i.'" il as a 

"allluble and prMen 1001 for 1M good work of mMing "hBrd 10 hires," from las-tlminillg 'HItOn' 

and uncmploym~m rolls inlO 13S·p<Jyj""job:s, Enlploycrs h3ve 10 h3"~ ccnainty as yo~ ha~c INcn 

loll! i)y them lhm"ghoulthi~ proc'''SS, " "d. from its Inany y~ars ofsucce~s it is <I~~ r Ihal worc 

.wrles. WOTe is Ilnt! orlhose rare iss"" 5 Ih31 is !)crlCtici:lllO ;III ~onc~ml'd. inchtding: 

Those .<In<crned wilh bell.in!: Ihe hard t" hire find decent wo rk; 

The "hdr,l lo h;rt-~ w(lrkcr ulcl(ories ;1 lar1(ct ~ ind uding frlon~ Iryinl( 10 l 1H)' on 

Ih r'[lhl side of Ihe law d (lUI of~' ~i, t inurcenl;nn), hclping mo,'. 

Ihem from lu·duinine "1.r~l'Ilm S~ 10 IU"f/fly;ng ci i~_e ; 

[ml)to),e ... w;lIing 10 g;"c fclon ~ and olher hard 10 "ires ~ . "Rncc, n,a nl' nl all 

tmllloytrs rul:g lin ~ 10 l~ y Mnont in thi~ lough economy; 

GO\'ernmcnlal budgcI' III e'-tr!Jcnlgc! reli.rrrom lower tfeidi,'ism rilles, . 1111 

fronl hu,'ing pools ofkllHd 10 hi ..... wurkersJlil),;" ,!: IlI_\t-S rH lher Ih." being 

UI lUt fd b)' lUes. ,' nd •• ~ menlionfll nbo\'t, Ih WOTC uffiefs will ~II h~H 10 be 

m~nn~d allli funded 10 handle only 'be sma ll num bcrs uf vflf rMns who now 'lua lif,l' 

"'biell isjusl a <luI' W~~If of "~ Iu lf ~~ (Iuliano. 

We art happy 10 ~polld 10 your committee's ,peei;it questions as our tOm""ll), is Ihe 

rrecmi nent e~f"'rI in 1m, lidd uf using 1m, WOTe lu h«lp hard 10 hires and the eml'lo> rs I\'ho 

hire Ibent. (E,g., In a ~ignificanl <·.~a ", plc, we ~rc currentl} <'ngaged \I;lh lile $Ial" of Ohio 10 

help ~v~ry Ohio rek''''ing fdQn Ill1d gainful elllplC)) n'~nl, With ViOTe in "'l<i~le~.c we provide 

this ,'"Iuable sen'icc I" Ohiu DI no cu,\, Wililoul WOTe this cflecliw prol:\t:lnl will b<! losllO 

Ohiu. Jnd 10 alilhe Olher Slale! al'king Ihal it he dupliculcd in lheir me.} IVc', e prow" (hat Ihe 

worc call h<' hanlcs5l'd 10 materially twlp " ilh o~ oflQday', bi8Sc~1 alleng s: ~"flablin8 lhe 

b;;rd 10 hire find d~enl "ork, 011t'- ofth~ ~"': 11 Ihlngs aboul Congrei~ IS ils bringing log~lhcrof 

so many ;nd;\';du8!s ,,-ilh "ar ~d I>..ckgrmmd. Iu hdp make gv"d I,,,,,,, \VOTe;s ~ good xamp e 

oflh.11 ~nd de""rws reMW" !. WOTe 11'tlrko, 
1225 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1171

TestimDl1Wllliam F. Jones, Jr. 

Senior Vice President & CFO 

YMCA of Greater Plttsbur,jh 

420 Fort Duquesne Soulevard , Suite 625 

Pittsburgh, PA 15222 

Hearing on "Certain Expiring Tax Extenders" 

House Committee on Ways and Means, Select Revenue Measures Subcommittee 

April 26, 2012 

Chairman Tiberi and members of the Subcommittee, my name is William Jones. [ 

am the Senior Vice PreSident and CFO of the YMCA of Greater Pittsburgh, an 

organization that has been in exIstence for 158 ye(lrs. My Y serves in excess of 

100,000 residents of Western ~nnsylvanla through our 19 branches, 4 reSident 

camps, and 45 after school and day camp sites. 

The purpose of my testimony Is to support the. extension of the New Markets Tax 

credit (NMTC), which expired on December 31, 20 11. We urge Congress to enact a 

long term or permanent e~tension of the program. 

The Community Renewal Ta~ Relief Act established the NMTC as a bipartisan effort 

to revitalize urban and rural communities by using tax Incentives to attract private 

sector capital. Congress has e~tended the NMTC in 2008, 2009 and 2010. The 

NMTC Is achieving Its Intended goa l of attracting private sector capital to low 

income communities to stimulate economic activity, spur revitalilatlon, create jobs 

and Improve communities. Over the ilistory of the program, 2003·2010, about $21 

billion has been Invested In low income communities through the NMTC. The total 

project cost of busillesses financed by the Nf1TC comes to more than $32 billion. 

The Credit has financed about 1500 bUSinesses that have created over 300,000 

Jobs, Including over 200,000 Jobs In the construction industry. 

Clearly, this program Is an effective Incentive for getting private sector capital to 

distressed communltles. According to a survey done by the Government 

Accountability Office, 88% of investors Indicated they would not have made the 

investment without the NMTC and two thirds said they Increased their investments 

In low income communities because of the Credit. Demand for the NMTC has 

e~ceeded the "mount available by over $190 billion since 2003. 

The NMTC Is an e~cellent investment for the federal government. The total cost of 

$1 in NMTC investment to the federal government, measured by lost tax revenue, 
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IS approximately 26 cents. When the NMTC was extended for 2010 and 2011 with 

$3.5 billion in annual credit autnority, tne JOint Tax Committee's revenue estimate 

Of the program was $1.81 billion, 

All NMTC Investments are to benefit businesses located in low Income communities 

where poverty r(ltes are 20% or more and where incomes do not exceed 60% of 

area median. In 20 10, 72% of NMTC Investments were made in ilreas even more 

distressed thiln required by Iilw. These Investments help to create employment 

opportunIties ilnd revitalize the communIties. 

The NMTC has had a huge Impact on economkally distressed communltfes. Billions 

of dollars have nowed into communities traditionally left out of the investment 

mainstream and hard hit by the recession. An example of this In Pittsburgh is our 

20 10 $13 million NMTC transaction that a!iowed us to complete the funding of a 

br(lnd new full service YMCA facil ity In the Hill District neighborhood in Pittsburgh. 

This branch will serve hundreds of children ilnd filmjl les in an extremely 

economiCillly distressed ilreil thilt did not nilve the type of filclllty or much needed 

sodill services thilt the Y provides. We couldn't hilve built this filcil ity without the 

NMTC progrilm. 

Thilnk you for holding a hearing on the eKpirlng tilX provisions. We urge you to 

enact a long term. or permanent extension of thIs. program. 
1227 

Statement of Zachary Nickerson 


wwoods2 on DSK499XVN1PROD with WAYS & MEANS79894A.1173

I. Zachary Ni~kerson. 11 pnal~ ;tndent ofEnvir(lIlm~ntal )olity antl M:lIlugcmtnt froOl 

$eavilk. NJ. n.:spe.-tfully urge Congress to ~xlcnd the wind energy "rodueliol1 tax e",'tlit (pre) 

>I, qnk~ly a> p<)s~iblc. 

Ifwc as a natioo nrc going It> build t>ur 21 ~ ,,"enltll,)' economy around clean. dolll~Stic 

source;; ofencrgy. then "'ind energy will unqucstionably be a large piI" of Qllr flnn n'. III t>rdcr II) 

SUpfIO" thiS VllU l American industoy. n'~ponsib c for creating thousands of manufacturing. 

instullolion and maintcMncej"bs in Ih~ last few }cars alone. "hile c~31in~ dean, ren.c,.'ublc 

cnc rgy tMI dOl:s IlO1 pollule our health. (luI' enVirQnment.. or ~onlribule 10 global etimale change. 

Ihen the I'Te is On indispensible tool. 

On~ i",j~p"ndent~'C() l1omic study of lh~ impacl "flbe I'TC fonnd Ih.11 il is 31 3 critical 

k\'d in delennining th "compelitivelK"5~ ofwintl-genemtctl elc'Clri~ily, and Ihat th" potential for 

pl'<)fiLll,lc wind llOwer with Ihe curreni I'Te 8ul;>sidy alHQnnlS 10 more lhaU .$I' vcn ti",c~ e_' isti!!g 

demand IQT ciL'.;rriCt\Y in the entin: U.S_ !Lu cr 31., 20 1! ). Clearly, this oue po lic ~ luIS tm: 

poI~ltliallO havc an c!lonnotls inrp.1ct Oil Ille "'~y we gCI\Cmtc tlcclricity in Ihi§ country, as has 

tx:cn showu by the dramatic wo",h or Ihis induslJ)' rl"Ccnlly (A \\lEA. 2011). AllQlher 

iudcpentlcnl -study $ho,,",,'<1 how uncerutinty over the r.ttc oflile I'TC has affccled the intlustry in 

Ill.' Ill.SI, ewaring a boom-bust cycle ;n which pt.'Ople an: war)' of m3king long-t~nn ;nVl'SuMllIs 

BarrJd~le. 20 10). It ;$ in our bt"S1 inll.'f~"S t to p ..... vldc Ih., tcnainly that bu i~!ft.'S n~ 10 muh 

_~man invl'S lm~nt.s by renewin& Ih~ I'TC "-1 !lOOn as possible, for as luog as pos5ible. and not 

waiting untillhe last minute or until after it has 31n.·~tl y cxpin.·d 10 do so. 

I again urge lhe committee to mke up 3n extensi()n of the wind energy production t~~ 

C,,-"<Iil right ay. 
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lathQI) Nickerson 

2 Win~hesh,r CL 

S~wine. NJ 08230 

(609)425·5 11 2 

znick .. rson 12@gmail.com 

Rcf~re"c~s: 

A WF-A. (2011). Federal PI<lduClioll Tax Credit for Wind ElJcrg..v. Alllen1'/l1J 11'",11 £""rl!J' 

~.!S(,,"U/lioll , Retril'wd al hllpJI~w<·a.orgl;s~,,<...tfed~r~l polic..v uploadfPTC-Fact·Sh<'l:I.pdf 

BamKlalc,l\'I, J, (20 10), Im)XIc\ ofpublic policy tli>e .. rtainl), on renewuble en<'rgy 

itWtilmcnt: Wind power Rnd Ihe production IDS credi!. £""(8)' /'011",. RClrie\'et! al 

hup:lf\\"ww.scie"ctdir«t.comls.:i~ncelar1ide'piilS()JO [4215 1 0006361 

LII, X. Tellou. J. McElroy, 1> 1. B. NielS('n, C. 1'. (2011 J. Th~ imp.tJct ,If prodllCtifln 1:1.". 

rn..Jit~ on the prolit~bl~ prodUction of ciccll'icily from "inJ in the U.S. E",,'Xl' P"J[(J" I(elrie,'ed 

at hltp :!lww"'.scic""edi=1.com ~icuccla"iclc piilS030142151100317X 
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1230 

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