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.