Federal energy tax credits may sound like arcane policy matters with little import to the average person. Such credits, however, are important to a Maine project that could help reduce pollution and reliance on oil. Without tax credits, an Aroostook County wind project will be delayed by a year or more. Maine’s congressional delegation, especially Sen. Olympia Snowe, who helped write the tax credit language contained in the Senate energy bill, must convince their colleagues to support wind power tax breaks.

The tax breaks are popular – and effective. When Congress extended the tax breaks last year, demand for wind turbines increased so quickly that Evergreen Wind Power was unable to buy any for its Mars Hill project. The company hoped to install up to 35 wind turbines atop the mountain in central Aroostook County by November 2004. But uncertainty about federal tax credits left the project in limbo.

The tax breaks, of up to 1.9 cents per kilowatt-hour for renewable power from wind or biomass, can reduce a project’s cost by about a third. The tax breaks were created decades ago to encourage technological advances in renewable energy. They have never been made permanent and must be periodically renewed by Congress. The latest renewal came last year but it only extended the credits to projects that can be completed by the end of this year.

Evergreen Wind hoped to be in this category, but was unable to buy turbines for Mars Hill because they were quickly snapped up by other companies taking advantage of the tax credits.

The Senate version of the energy bill would extend the tax credits to projects that are completed by the end of 2008. The House bill, however, does not. The two versions will be reconciled later this summer. The tax credits should be in the final version.

The Mars Hill project could reduce annual emissions of carbon dioxide by 120,000 tons and sulfur dioxide by 420 tons if it displaces dirtier forms of energy generation such as coal and oil.

The project, which has undergone state and federal review, should not

be held up due to a tax break with proven benefits. Congress should not only extend the renewable energy tax credits, it should ensure that they remain in effect to bring more certainty to a growing industry.