Please ensure Javascript is enabled for purposes of website accessibility
Home / Construction / Obama pushes wind tax credits

Obama pushes wind tax credits

President Barack Obama speaks April 25 at the University of Iowa, in Iowa City, Iowa. The president is heading to the political battleground state of Iowa this week to prod Congress to act on his agenda. The president will visit TPI Composites, a wind manufacturer in Newton, on Thursday to highlight his push for tax credits to encourage investments in clean energy technologies. (AP File Photo by Carolyn Kaster)

Republicans cry foul over ‘campaign stops’

By David Pitt
Associated Press

Des Moines, IA — A central Iowa wind turbine blade manufacturer again was serving as a backdrop for President Barack Obama, this time for a speech Thursday in which he was expected to argue for Congress to renew wind energy tax credits.

It’s Obama’s second visit as president to Newton, a city of about 15,000 east of Des Moines.

In 2009, he spoke on Earth Day at the wind industry manufacturer Trinity Towers. This time, he was going to the TPI Composites factory, which builds wind turbine blades, each almost half a football field long and weighing as much as 20,000 pounds.

Former Iowa Lt. Gov. Patty Judge, who is campaigning for Obama, said repeat visits to Newton made sense because it was a town that had struggled with deep unemployment but had worked hard to dig out of the recession through renewable energy jobs.

“It’s starting to come back as the rest of the country is,” she said. “I think it’s just a pretty good symbol of what we’ve been through and the hope for the future.”

Obama is trying to pressure a reluctant Congress to extend tax credits that expire at the end of the year, and he likely will find a sympathetic audience in Newton, where about 1,000 jobs are centered on wind energy generation.

“I think there’s a real sense of pride that he has taken such an interest in our wind industry and we’re also glad that he knows the extent to which the production tax credit is critical to jobs in Newton and Jasper County,” said Dan Kelly, a local real estate agent and state legislator.

The Newton visit is considered a presidential policy event by the White House, separate from a campaign stop planned for later Thursday in Des Moines.

The Republican Party of Iowa, however, sees little difference.

“Taxpayers in Iowa are fed up with having to finance President Obama’s campaign stops while at the same time they are suffering as a result of his failed economic policies,” according to a statement attributed to GOP Chairman A.J. Spiker.

Democrats hold a registration edge in Jasper County, and the party especially is strong in the county seat of Newton, but Obama also could be drawn by the community’s history.

Newton was the corporate headquarters of Maytag Corp., and the appliance maker once employed more than 4,000 workers there and at local washer and dryer factories. Whirlpool Corp. bought Maytag in 2006, then closed the company’s operations in Newton.

The community has struggled, but the wind energy companies have helped a great deal, Mayor Chaz Allen said. He said the area’s ongoing recovery illustrates a point often made by the president: that new technologies can reduce the nation’s dependence on fossil fuels and create jobs at the same time.

“What he’s trying to push here is renewable energies and we’ve been able to be successful at it and put people back to work,” Allen said.

TPI Composites and Trinity Structural Towers, which makes the tower bases for wind turbines, have helped fill some of the job needs for Newton, but unemployment remains a problem, Allen said. The county’s unemployment rate has fallen from 8 percent in April 2011 to 7.1 percent last month, according to data released this week. That’s still far above Iowa’s overall rate of 5.1 percent.

Allen said the wind industry could create more jobs in Iowa, which is a national leader in wind production. About 20 percent of the all electricity generated in Iowa comes from wind, according to the Iowa Utilities Board. That’s up from less than 6 percent in 2007.

“Having that question mark out there about whether the production tax credit will happen or not is putting all this in jeopardy,” Allen said. “We need to have that production tax credit and we need to have it for a longer term.”

Obama also is expected to push for expansion of a 30 percent tax credit for manufacturers of advanced energy products, including solar panels, fuel cells, and equipment to support wind energy and renewable fuel distribution.

About $2.3 billion in tax credits were created in the 2009 Recovery Act. The administration wants Congress to provide another $5 billion to expand the program.

The White House said the wind industry nationwide supported 20,000 direct jobs with more than 30,000 manufacturing jobs making machines and parts to supply the industry.

Even supporters of the wind industry in Newton note, however, that the jobs pay less than the appliance manufacturing jobs they replaced.

Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Leave a Reply

Your email address will not be published. Required fields are marked *