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U.S. Renewable Electricity: How Does the Production Tax Credit (PTC) Impact Wind Markets?
Phillip Brown (au)
U.S. wind projects that use large turbines äóî greater than 100 kilowatts (kW) äóî are eligible to receive federal tax incentives in the form of production tax credits (PTC) and accelerated depreciation. Originally established in 1992, the PTC has played a role in the evolution and growth of the U.S. wind industry. Under existing law, wind projects placed in service on or after January 1, 2013, will not be eligible to receive the PTC incentive. Industry proponents are advocating for an extension of PTC availability, citing employment, economic development, and other considerations as justification for the extension. It is uncertain how the near- or long-term availability of the PTC incentive äóî in isolation of changes to other market factors äóî would either grow or sustain current wind development and manufacturing levels. Contents of this report: Background; Impact of Current PTC Expiration; Potential Impact of Extending the PTC; Other Factors That Affect U.S. Wind Development; Policy Discussion. Figures and tables. This is a print on demand report.
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