Tax incentives gone with the wind

Boyda says she voted against energy bill because credits for renewable sources were cut

? Congress may have knocked the wind out of attempts in Kansas to increase wind energy, officials said.

The energy bill signed by President Bush stripped out future extension of production tax credits for wind energy and other renewables.

U.S. Rep. Nancy Boyda, D-Topeka, said she voted against the bill because of that.

“This decision was one of the hardest I’ve had to make in Congress,” said Boyda, whose district includes west Lawrence.

An earlier version of the bill passed by the House would have cut billions of dollars in tax breaks for large oil companies and used that money to invest in biofuels and wind energy.

But the Senate removed those provisions.

“Biofuels and wind energy offer tremendous promise both for America’s energy future and for the Kansas economy,” Boyda said.

Jim Ploger, manager of climate and energy programs for the Kansas Corporation Commission, said the production tax credit will continue for 2008, but unless Congress acts to extend it further, then it will end.

Without the tax credit, Ploger said, wind development would slow down considerably.

“It plays havoc with financing,” he said.

But Ploger said he has heard that when Congress reconvenes next year, there will be a push to extend the tax credit beyond 2008.

As it stands, the energy bill marks the first increase in auto fuel standards in 32 years.

The measure increases fuel efficiency to an industry average of 35 miles per gallon by 2020. Current standards are 25 mpg.

It also requires a six-fold increase in ethanol use.