President Obama Lends Support for Extending MTC Program

On Friday, President Obama called on Congress to extend the popular clean energy manufacturing tax credit (MTC) [Section 48C] program by approving an additional $5 billion in investment. This would more than double the $2.3 billion that Congress authorized last year as part of the American Recovery and Reinvestment Act (ARRA).

An investment of this size would create upwards of 40,000 jobs and generate more than $12 billion in private sector investment, which would lead to an additional 90,000 jobs, according to the president.

Looking further ahead, though, we need to make permanent the MTC and its attendant renewable energy credits, and include solar manufacturing equipment within the MTC (HR 4085). Permanency in the tax code would not only greatly increase America’s competitiveness, but also give the long-term certainty necessary to spur additional renewable energy investment and employment.

The Solar Energy Industries Association (SEIA) made a good point in a statement released Friday that the U.S. “can and should be the global manufacturer of solar products,” which will only happen with the sort of clean-tech investments supported by the administration.

As Congress returns from its recess this week, energy will no doubt be on everyone’s mind. Senate Majority Leader Harry Reid (D-NV) will have the unenviable role of trying to hash out a compromise between the many competing bills on the table before he decides to bring any one package to the floor. We hope that members realize that clean energy is necessary to ensure America’s recovery, and that increased investment in clean-tech manufacturing will be a crucial element in regaining our country’s leadership in the clean energy race.

As the president rightly put it, “If we keep on moving forward, if we refuse to move backward…brighter days are going to come.”