House Committee: Foreign Companies Benefited From Section 1603 Grants

Posted by SI Staff on January 17, 2013 No Comments
Categories : Policy Watch

The U.S. House of Representatives' Energy and Commerce Committee has released a new report stating that non-U.S. renewable energy companies have ‘benefited extensively’ from the U.S. Department of the Treasury's Section 1603 program, which was popularly utilized by solar projects.

The report, part of the committee's ongoing investigation into the implementation of the 1603 program, says that one out of every four dollars from the program benefited foreign firms – i.e., U.S. subsidiaries of ‘large European and Asian corporations.’

‘The 1603 green energy program failed to deliver the jobs promised, and now we learn that a significant portion of these taxpayer-funded grants are benefiting foreign competitors rather than boosting American industry,’ says Oversight and Investigations Subcommittee Chairman Tim Murphy, R-Pa.

‘We will continue our rigorous oversight of this program to help protect taxpayers' dollars, now turning our attention to the sourcing of major components manufactured overseas for stimulus-supported projects,’ he adds.

According to the committee, the 1603 program has been criticized by a number of groups, including some Senate Democrats.

The full report, called ‘American Taxpayer Investment, Foreign Corporation Benefit,’ is available here.

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