Friday, February 4, 2011

Solar industry awaits fate of tax breaks - Phoenix Business Journal:

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Four bills addressing solar and renewabls energy are in variouxs stages atthe Legislature, but they may not be top prioritiee as lawmakers wrangle over funding for education, health care, infrastructure and the like. Three House bills deal with renewable energyimprovement districts, easing the ability of school districts to enterf power-purchase agreements, and capping city permittinbg fees for solar installations. All are progressing and coule move to the Senate within a few But the budget morass is stalling everything at the including a bill that would offeer incentives to lure manufacturing tothe state.
In the best-casd scenario for those in renewabls industries, all four bills sail through, spurrinfg supply and demand. In the worsy case, none of them make it and Arizona’sa quest to become a solar leader is pusheddfurther back. “I think it puts us behind, but it doesn’tt put us out,” said Marc Osborn, a lobbyisty with the , which is part of the Arizonsa Chamber ofCommerce & Industry. Renewable industry officials have differenf opinions about how to establish Arizona as asolart capital. Some say the state must create demand before it canlure manufacturers.
Others say the state needs to attract manufacturers first to creatw an abundant supply of affordablesolar materials, whicnh in turn would boost demand. The billas before the Legislature could satisfy both sides of the saidTom Alston, director of business and policy development for in Scottsdale. “There’s no reasohn not to do it, holistically,” he “They have no budget impact.
” The improvement district legislation, which would allow citiesd to create renewable energy districts similar to thos set up for water andsewerr projects, has been gaining momentum as California, Coloradk and other states have adopted them, said Adam Browningg of the San Francisco-based . While the Housee bills may get an easierride ­— providinhg the Senate takes up any othee business besides the budget — an incentiv e deal proposed in the Senate is a tougher sell, particularlg during a recession. “Wse do not believe the government should be picking winners and losers inthe economy,” said Tom Jenney, executived director of the .
By incentivizing certain the government runs the risk of hurtinvg related industries already established in the saidClint Bolick, director of the Schaft-Norton Centerf for Constitutional Litigation at the . For example, creating incentives for solar jobs could leadto high-tech workers leavinfg jobs in semiconductors or “It’s like plugging a dike with your he said. “You’re just going to spring a leak somewhere else.
” The legislation also poses some issues for viablee solar companies that want to located to Arizona, but don’yt because they fail to meet qualifications for the tax said Byron Schlomach, director of Goldwater’s Center for Economic But business interests have lined up behind the incentive. Supporterse include the , the Arizonw Technology Council and the Arizona Manufacturers Arizona needs something to attrac t businesses that are being lured by states such as which offers a 50 percent tax credig forsolar manufacturing, said Barry Broome, president and CEO of This year, Utah and Texas joiner the ranks of states passinvg legislative reforms, and the window could be closintg for Arizona to be a top-tier solar destination, Broomwe said.
“We’re not going to be successful in attractint businesses in the face of our he said. Arizona Manufacturers Council: American Solar Electric: Arizonw Federation of Taxpayers: Vote Solar Initiative:

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