Wisconsin energy companies are closely watching the progress of a bill the U.S. Congress is set to vote on within the next few weeks, which would decide whether to extend federal tax credits for producing and consuming renewable energy. 

The New Energy Reform Act of 2008, part of a series of energy bills floating through Congress this week, would extend tax credits for individuals or companies investing in clean and renewable energy sources, or those purchasing eco-friendly products such as hybrid cars. If Congress does not reach a consensus, the tax program would expire at the end of the year.

U.S. Rep. Tammy Baldwin, D-Wis., said the impacts of the tax incentives have been “extraordinary,” and are a key component of growth in the renewable energy industry.

“There are 73 full-service solar electric and solar hot water installation firms active in Wisconsin — more than double the installer base in 2005,” Baldwin said in an e-mail to The Badger Herald. “This growth in investment in renewable energy would not have been possible without the tax credits.”

Baldwin added she remains hopeful the bill will pass in the House, but said more uncertainty surrounds the proposal in the Senate. 

“We must continue to invest in renewable energy — and also encourage the greening of homes and businesses — if we are to reduce greenhouse gas emissions and become energy independent,” Baldwin said.

Wisconsin state law has mandated 10 percent of energy produced in Wisconsin by 2015 must come from renewable sources.

Scott Reigstad, a spokesperson for Alliant Energy, said failure to extend the tax credit would not hurt current projects but could halt the remarkable growth the renewable energy industry has seen in recent years.

“We will move forward our renewable projects already in progress,” Reigstad said. “Our larger concern is more into the future. Not extending the tax credit could cost jobs and prevent growth in the wind and solar power sectors.”

Alliant Energy has invested $1 billion on wind projects in Iowa, Minnesota and Wisconsin. Several other renewable energy plans are in the works throughout the state, including the University of Wisconsin Biofuels Project, which aims to find more efficient ways to convert plants to ethanol.

Barry McNulty, a spokesperson for We Energies, said not extending the credits could stunt growth for the renewable energy industry in the state. He added it could hurt the producers of the energy, as well as the suppliers and manufacturers of the equipment needed to harness it.

“Manufacturers of wind development and solar technology have indicated that if the tax credit is not extended, it will make it harder and harder to produce and market their equipment,” McNulty said.

In addition to the tax credit issue, the proposal also aims to lift restrictions on offshore drilling for areas at least 50 miles offshore in the Gulf of Mexico and off the Atlantic Coast. The proposal is supported by the “Gang of 20,” a bipartisan group of congressional legislators who favor energy conservation.