WindAction Editorials filed under Taxes & Subsidies from USA

U.S. Tax Priorities Sack Big Wind

The Senate bill should serve as the PTC/ITC blueprint for the final bill. Any changes recommended by the conference committee should be addressed swiftly and fall within the envelope of the Senate bill. This is an important step, but only first step, toward a level-playing-field between electrical energies that will, longer term, improve grid reliability coast-to-coast, border-to-border.
7 Dec 2017

GOP Tax Plan Resets Big Wind

Big wind’s complaint that the language reneges on a previous deal is entirely unfounded. The so-called ‘deal’  AWEA is trying to preserve … was a backroom negotiation between industry and Obama-era IRS lawyers to craft guidance that went well beyond the statute. Congress is finally taking corrective action. ...[T]he GOP tax bill is headed in the right direction on wind energy development. But if the goal was to simplify tax legislation, the GOP should go further and repeal the PTC altogether.”
10 Nov 2017

Wind PTC: Excessive Benefit Demands Repeal

Ptc_1992-2016_thumb Market conditions back in 1992 no longer exist. Big wind no longer needs the Production Tax Credit, and certainly cannot justify the extraordinary benefits received [3.5¢/kWh pre-tax]. Retaining the subsidy in light of lower installation costs and increased production serves only to further distort the market and bestow a bounty on big wind that far exceeds what 1992 lawmakers could ever have envisioned.
4 Nov 2017

Time to cut our losses on big wind

After billions in public hand-outs spanning nearly four decades, big wind has never been able to stand on its own and there's no reason to believe this will change. ...If yanking the handouts causes the industry to flat line then so be it. The US has elected a businessman at the helm who understands what it means to cut your losses. It’s time we did exactly that!
18 Nov 2016

IRS Overreach on Wind Power: Likely Illegal

According to the American Wind Energy Association, more than 15,000 MW of new wind is currently under construction or in advanced stages of development. Under the IRS’ loose rules, the number of MWs eligible for the full subsidy could easily double that. Yet, this change was not subject to public input or any type of budget scoring.
11 May 2016

Grassroots: NO to the Wind PTC

Our representatives know that the PTC is wildly unpopular. They’ve heard all the arguments. ..A stand-alone floor vote on the PTC would have put an end to its nonsense, but Congress preferred instead to coddle this costly giveaway safely in the corpulent folds of other, must-pass extender language.
14 Dec 2015

IRS rules for wind power: Legal or Not?

Clearly, the interpretation of what constitutes “begin construction” is important, yet at no time during the two years since the PTC was extended with this wording did the IRS bother to seek public comment under the Administrative Procedure Act ("APA"), the federal statute that requires federal agencies to provide notice and an opportunity to comment before promulgating rules.
24 Feb 2015

Vote NO on Big Wind

The debate is no longer about the fear of change or aesthetics. It’s about preserving the health, safety, and welfare of communities from developers hell-bent on sticking turbines on every free acre with transmission access no matter who’s in the way. More than twelve active lawsuits are pending against wind projects in as many states, and more are sure to follow.
31 Oct 2014

Saying goodbye to the Wind PTC/ITC

The wind PTC/ITC expired on January 1, 2014. The Senate Finance Committee passed the EXPIRE Act which would extend the wind PTC/ITC and dozens of other tax credits/deductions worth close to $85 billion. Senator Harry Reid does not have the votes to bring EXPIRE to the floor of the Senate and has, thus far, refused all efforts to amend the bill. He is aware that Senate Republicans, in part, intend to remove the PTC/ITC from the bill.    Senator Reid has made bold promises to the wind crowd about votes during the lame duck session to bring back the PTC/ITC but he is not in a strong position to deliver on his promises. Democrats are on the defensive and may well lose control of the Senate come November. If that happens, there is no certainty the wind PTC will make a return.
23 Sep 2014

Big Wind's Last Gasp

Windcapacity-eia_thumb The U.S. Department of Energy is touting that wind energy pricing dropped precipitously in 2013, but the report cited by the DOE presents a different story. We examine some of the trends in wind energy development in this latest essay.
3 Sep 2014

An Unending Production Tax Credit?

Last month when GE's Chief Financial Officer, Jeff Bornstein, complained that rules defining 'begin construction' were still too vague and holding up delivery of 400 to 500 turbines. "We expect that clarification to come from the Treasury ...We’ve seen that clarification and we think it is helpful.”
20 Aug 2014

New York Wind falls short... again

Nys-windgen-2009-2013_thumb By the end of 2013, wind energy represented 94% of the fuel used to meet New York State's RPS mandate. Twenty wind power plants are operating in the state with an installed capacity of 1,730 megawatts. We've been tracking NY's wind production figures since 2009 and its performance has not improved.  
28 Apr 2014

Negative pricing distortions of windpower

Duckcurve-caliso_thumb “The combination of the federal PTC and state RPS policies has shielded wind developers from the basic supply and demand forces present in a healthy competitive market. As a result, we are fast-tracking the construction of expensive renewable resources that are variable, operating largely off-peak, off-season and located long distances from where the energy is needed.”
16 Dec 2013

The diseconomy of the production tax credit

Proponents of wind energy insist that adding renewable energy to the grid reduces the market price of electricity by displacing resources with substantially higher operating (fuel) costs. Various studies have been performed that model the "price suppression" effect of wind and solar on ratepayer bills, however, assessing the actual impacts of an operating project on rates has proven more elusive.
10 Oct 2013

The diseconomy of the production tax credit

Proponents of wind energy insist that adding renewable energy to the grid reduces the market price of electricity by displacing resources with substantially higher operating (fuel) costs. Various studies have been performed that model the "price suppression" effect of wind and solar on ratepayer bills, however, assessing the actual impacts of an operating project on rates has proven more elusive.
10 Oct 2013

http://www.windaction.org/posts?location=USA&topic=Taxes+%26+Subsidies&type=Editorial
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