Vestas Wind-Energy Tax Credit Needed for Colorado Jobs

According to a report in the Greeley Tribune, Colorado jobs have been spared from cuts by the world's largest wind maker for now, but next year may be bleak if a federal tax credit is not extended.

Vestas' Big Investment in Colorado

Denmark-based Vestas, which announced a restructuring complete with massive layoffs this week, has invested a lot in the state of Colorado in recent years -- $1 billion, the Tribune reports. $300 million of that investment has been in the town of Brighton, the Tribune reports. Vestas owns four manufacturing plants in the state, which include two in Brighton, as well as one each in Windsor and Pueblo, as well as an engineering facility in Lafayette. About 1,700 Coloradans are currently employed at Vestas facilities, according to the Denver Post.

Colorado's Big Worry

The bulk of Vestas' current 2,335 layoffs are taking place in Europe. However, the Denver Post reported, the company has stated that failure by the U.S. government to extend the Production Tax Credit by the end of 2012 will result in up to 1,600 U.S. jobs. According to former Colorado Gov. Bill Ritter, who is now the director of the Center for New Energy Economy at Colorado State University and who helped bring the company to the state, the job loss "would be a significant blow to Colorado."

According to the Denver Post report, Eric Bergland, interim president of Upstate Colorado Economic Development, said the state's impact wouldn't just stay with Vestas, as the company has served as a magnet for other businesses -- Weld County suppliers such as Hexcel and Bach Compsite, as well as the Great Western Railway, which ships Vestas' Colorado-manufactured products.

Colorado's Big Investment to Vestas

In order to get Vestas to come to Colorado in the first place, state and local governments provided a $4 million incentive package to the company, the Denver Post reported. $2.5 million of that went for the two Brighton facilities, which include a blade factory and a wind-turbine building plant, as well as the world's largest tower manufacturing facility, located in Pueblo.

The federal government also ponied up for Vestas' Colorado efforts. According to a February, 2010 speech given by Energy Secretary Dr. Steven Chu on the anniversary of the American Recovery and Reinvestment Act, $50 million of stimulus funds were given to the company in clean energy manufacturing tax credits.

The Production Tax Credit

According to an article by the Associated Press, Colorado's two U.S. senators, Mark Udall and Michael Bennet, both Democrats, have joined the fight to extend the tax credit, which is given to renewable energy companies, praising the credit for job growth.

Also fighting for the credit is Sen. Jeff Bingaman, D-NM, who is the chairman of the Senate Energy and Natural Resources Committee. According to Bingaman, there can't be just a short term extension either. "Unfortunately, the type of short-term extensions Congress is prone to passing puts American jobs in jeopardy," he said, stating that companies need a long-term policy in place that would allow them to plan for multiple years, the Associated Press reported.