The 1603 tax credit plan was originally funded by the stimulus plan but ran out in December. Now the president wants the $10 billion program revived. Republican leaders are not so sure that is a good idea.
The administration originally claimed that just over 100,000 jobs were created by the plan which pays a direct subsidy to certain companies engaged in “green” energy projects. The House leadership would like to see where the administration got its numbers. A deadline of March 29th was set.
Guess what? No information on where this job creation number came from was presented to leadership. Yes the president is pushing harder for the credit.
One of the reasons the House asked for proof of job creation (aside from obvious partisan reasons) is because the Wall Street Journal looked closely at the 1603 tax credit plan and couldn’t find the numbers secretary Chu touted.
(From NCPA.org and the WSJ)
The 1603 program was an important part of the government’s push to encourage investment in alternative energy.
- It gave $10.7 billion to 5,098 businesses for 31,540 projects, according to the Treasury Department.
- Recipients were generally reimbursed 30 percent of their costs after projects were finished.
- Those businesses claimed on federal applications that they created 102,883 jobs directly.
But the Journal found evidence of far fewer. For example:
- About 40 percent of the funding, $4.3 billion went to 36 wind farms.
- During the peak of construction, they employed an average of 200 workers apiece — a total of roughly 7,200 jobs.
- Now, those projects employ about 300 people, according to the companies and economic development officials.
Below is an interview with the author of the of the February 25th WSJ article.