Front Generator Wind Turbine

Iowa has a lot at stake as tax breaks for wind-power producers are set to expire at the end of the year.

Iowa gets nearly a quarter of its power from wind energy, a higher percentage than any other state in the nation. We feel that usage of renewable energy is something to be proud of.

Iowa is on track to get as much as 50 percent of its power from the wind when a 448-turbine, $1.9 billion MidAmerican Energy project is completed in 2015 and the cross-state Rock Island Clean Line project to deliver the energy is finished in 2017, said Harold Prior, executive director of the Iowa Wind Energy Association.

It is estimated that the wind-energy industry in Iowa accounts for 3,000 jobs worth a combined payroll of nearly $70 million a year. Landowners make roughly $12.6 million a year in lease payments by allowing turbines on their land.

Tax credits and tax breaks certainly need to be carefully scrutinized. Some of them have their place -- as an avenue leading to a better situation. For example, tax increment financing districts are created to encourage development. New buildings and businesses are given tax breaks for a number of years before eventually adding to a community’s tax base, generating more revenue.

The government, through the federal Renewable Fuel Standard, has guaranteed a market for biofuels.

Prior said if Congress kills the wind tax credit, “They’re getting into the business of picking winners and losers.”

As Iowans, we understand. However, we could also argue that doling out tax credits is another form of picking winners and losers.

We have previously editorialized that aiding the wind energy industry, with an eye squarely on future national benefits, has been a good strategy. We supported congressional approval of a one-year extension of tax credits a year ago.

How long do we continue that? Modern history tells us that once subsidies are granted, they become very difficult to remove -- even if a time frame is put in place at the onset.

Does the wind energy industry deserve tax credits?

That shouldn’t be the question. Our leaders, past and present, have correctly pointed us in a direction of diversifying our energy sources.

Armed with the noble goals of becoming more energy efficient and independent, we feel that the industry has deserved the tax credits it has been receiving.

Today’s question should be: Can this industry now stand on its own?

If the answer is no, it is our belief tax credits should be extended. Allowing the industry to crumble, after all that has been invested, should not be an option.

If the answer is yes, it’s time to allow the tax credits to expire

Coming up with the correct question is the only way we get the right answer. What we need is some straight talk on whether this industry can fly on its own. If so, make it do so.

That should be the same barometer for any American industry.

More wind turbine news.