TRADABLE TAX CREDITS
WHEREAS, clean air, energy efficiency and increased use of renewable energy
resources are key goals for all municipalities across the country; and
WHEREAS, an incentive designed for municipal-owned utilities, such as a
tradable tax credit, would ensure that diverse fuel sources are promoted in all
sectors of the electric industry and potentially available to all electricity
customers; and
WHEREAS, Congress and the Administration are currently reviewing legislative
options to promote the increased production of renewable, advanced and clean
energy resources; and
WHEREAS, renewable generating resources and advanced clean generation
technologies are more expensive to construct and operate than traditional
generation resources; and
WHEREAS, the federal government needs to provide incentives to encourage
these facilities; and
WHEREAS, conventional tax credits under the Federal Tax Code do not create
incentives for municipalities to make investments in clean energy production; and
WHEREAS, in order to receive an incentive to promote alternative resources in
their communities, municipalities that generate electricity would need the ability
to sell the tax benefits to customers or private entities who can utilize them, and
pass the savings along to consumers,
NOW, THEREFORE, BE IT RESOLVED, that The U.S. Conference of Mayors
supports tradable tax credits for municipalities who make investments in clean
and renewable technologies for generation of energy, such as the tradable tax
credits included in the Senate-passed energy bill that provide incentives for
municipalities to produce energy from renewable resources and clean coal
technology.