Production Tax Credit for Wind Energy Extended

Joanna Schroeder

Several wind energy tax credits have been extended with the passage of the bill to avert the “fiscal cliff”. The tax credits are estimated to save up to 37,000 jobs while reviving business at nearly 500 manufacturing facilities across the U.S. according to the American Wind Energy Association (AWEA). Both the Production Tax Credit (PTC) and Investment Tax Credits for community and offshore projects will help the wind energy industry continue to grow. The bill will cover all wind projects that start construction in 2013.

Energy produced from wind set a new record in 2012 with 44 percent of new electrical generation coming from wind energy according the Energy Information Administration. Despite this accomplishment, the uncertainty over the future of the tax credits caused many manufacturing companies to idle production lines and lay off workers. AWEA said uncertain federal policies have caused a “boom-bust” cycle in U.S. wind energy development for more than a decade. A long-term commitment to policy, including the PTC could end this cycle.

“On behalf of all the people working in wind energy manufacturing facilities, their families, and all the communities that benefit, we thank President Obama and all the members of the House and Senate who had the foresight to extend this successful policy, so wind projects can continue to be developed in 2013 and 2014,” said outgoing AWEA CEO Denise Bode.

Rob Gramlich, who becomes the AWEA interim CEO on January 2, 2013 added, “Now we can continue to provide America with more clean, affordable, homegrown energy, and keep growing a new manufacturing sector that’s now making nearly 70 percent of our wind turbines in the U.S.A.”

Alternative energy, Electricity, offshore wind, Video, Wind