All 50 members of the National Governor's Association have signed off on a letter to Congressional leadership calling for a five-year extension of renewable energy tax credits. While talks continue, particularly in the Senate, Democrats and Republicans have been unable to agree on budget offsets said to be needed to pay for the extended tax credits. One more vote on the credits is expected in the Senate before Congress adjourns for their August recess next week.

In their letter to Senate Majority Leader Harry Reid (D-NV), Senate Minority Leader Mitch McConnell (R-KY), House Speaker Nancy Pelosi (D-CA) and House Minority Leader John Boehner (R-OH), the governors said the tax provisions would encourage the development of renewable energy sources and promote energy efficiency. But since a letter advocating the credits was sent to Congress' tax writing committees last February, "efforts to advance them have fallen short. Extending these credits is critical and action must be taken as soon as possible."

"Renewable energy plays an important role in our nation's energy security, and governors have pioneered a wide array of innovative energy policies in their states," the letter says. "To supplement state efforts, governors support the development of federal tax incentives, including clean renewable energy bonds, to promote clean, secure, and affordable energy to fuel America's future."

The governors also called on Congress to develop more incentives for programs that help families and businesses use energy-efficient building techniques, materials, and equipment. "Extending incentives for energy efficiency and conservation will slow the growth of future energy needs, minimize ratepayer costs, and lessen potential environmental impacts."

In the limited time left in the 110^th Congress, any bill passed by the Senate is likely to be reconciled with legislation similar to that passed by the House. However, the House legislation as currently structured and a bill that Senate Democrats have long supported both face threats of veto from the White House.

25x’25 continues to make the extension of the federal renewable energy tax credits a top priority and is actively working with state alliances and partners to communicate the urgent need for Congress to bring this matter to closure. "The policies currently in place to develop and nurture non-fossil fuel based energy sources have been short term and in many cases intermittent. Such on-again, off-again policies have made long-term investment in new technologies and interest in renewable energy difficult to maintain," said Bart Ruth, policy committee chair of the 25x'25 National Steering Committee.