Congress recently passed a tax and trade policy bill that included a one-year extension of the production tax credit (PTC) for wind. Details of the PTC include a credit price of 1.9 cents per kilowatt hour, an annual inflation adjustment, and a 10-year term for wind turbines to generate credits. President Bush is expected to sign the bill into law soon.
The PTC is now available through December 31, 2008, giving the wind sector two full years of tax stability. The U.S. wind energy sector has been plagued by inconsistent growth because of the short-term, temporary nature of the PTC.
“Extending the credit now – a full year before it was set to expire on December 31, 2007 – is enormously important,” said Jaime Steve, Legislative Director for the American Wind Energy Association. “This timely action by Congress will boost significant upward growth and investment for wind energy, spurring thousands of new jobs and millions of dollars in rural economic development while also bringing cleaner air to all Americans. Extending the credit is also an investment in fighting climate change and increasing America’s energy security.”