AEA & Coalition Applaud NC Legislature for Taking Action Against Costly Subsidies

Budget Agreement Sunsets Energy Tax Credits; More Work to be Done on REPS

WASHINGTON — The North Carolina legislature recently reached an ​agreement on a budget that phases out tax credits for industrial solar and other forms of more expensive, less reliable energy production. Known as the Renewable Energy Tax Credit, this subsidy harms North Carolina jobs and economic growth. In recent weeks, AEA led a coalition of local leaders and business owners to shine a light on the harmful effects of government subsidies and mandates for expensive energy.

American Energy Alliance President Tom Pyle issued the following statement:

“By striking down taxpayer-funded subsidies for the wind and solar industry, North Carolina lawmakers have taken an important step toward getting the state’s economy back on track. North Carolina’s agriculture and manufacturing sectors rely on affordable energy, and this bill will help lower those costs—leaving North Carolinians with more money in their wallets and enabling local businesses to create more jobs.

“But there is more work to be done. North Carolina’s renewable energy mandate, which forces families and businesses to buy more expensive energy from wind and solar, remains an impediment to the state’s economic growth. I encourage North Carolina’s principled leaders to continue to fight for their citizens by taking steps to repeal this costly mandate.”

North Carolina House Majority Leader Mike Hager said:

“If you really, truly want to see the best for North Carolinians, if you truly want to see the economy boom, then we’ve got to reduce energy prices or hold the line – and that’s why our recent budget eliminated harmful renewable energy tax credits.

“If we’re looking at where the state needs to go, and we look at all the other states, all the countries around the world, and find me a place where we’ve implemented solar energy, wind energy, green energy policies and the price of energy actually went down or is where we are right now – you don’t see it anywhere. That’s why North Carolina needs to freeze our runaway mandates and develop a long-term, low-cost energy plan for the future.”

Bob Luddy, Owner of CaptiveAire Systems in Raleigh, said:

“In many cases, efforts toward sustainability increase capital costs that might otherwise be used for innovation, and efficient manufacturing cannot flourish in states that subsidize inefficiency and punish productive manufacturers.

“As the owner of the largest privately held manufacturer of kitchen ventilation systems in the United States, our cost of doing business is already high enough. I am happy to see the North Carolina General Assembly take a step toward requiring solar and other sources of alternative energy to stand on their own, rather than propping them up with taxpayer dollars. The money manufacturers will save on taxes will allow us to employ more individuals and create more products. It is my hope that North Carolina lawmakers will take further action to address the renewable energy mandate currently spiraling out of control.”

The budget provisions that phase-out tax credits for industrial solar and other forms of less affordable, more expensive energy come shortly after AEA launched a paid media and grassroots initiative targeting North Carolina’s costly Renewable Energy Portfolio Standard, which currently mandates that 12.5 percent of the state’s electricity come from costly renewable energy resources by the year 2021.

As part of its advocacy campaign, AEA, along with a coalition of public officials, policy experts, and members of the business community, convened for a roundtable forum to raise awareness of lawmakers’ responsibility to their constituents in providing affordable, reliable energy.

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