After seeing the Production Tax Credit (PTC) extended through 2013 in the recent “fiscal cliff” legislation, the wind industry is now looking ahead to the tax reform debate. According to E&E Publishing several industry lobbyists are preparing for a renewed push for a longer-term extension of the PTC that would phase out over time.
Based on industry analysis of the impact of the PTC, the American Wind Energy Association proposed a six-year tax credit phaseout, which specifies that “The tax credit would start at 100% of the current 2.2 cents a kilowatt-hour for projects started in 2013, and be phased down to 90% of that value for projects placed in service in 2014; 80% in 2015; 70% in 2016; and 60% in both 2017 and 2018, ending after that.”
However, some members of Congress, such as Rep. Dave Reichert (R-Wash), aren’t optimistic about further extending the PTC. Congressman Reichert told E&E Publishing, “I don’t think there will be another attempt” to renew the credit.
How vital is the Production Tax Credit to the wind industry? What’s your take on the AWEA’s proposed six-year tax credit phaseout?