Documents filed under Taxes & Subsidies

Removing Big Wind's "Training Wheels": The case for ending the federal production tax credit

Dismukes-removing-big-winds-training-wheels_thumb David E. Dismukes, a professor, associate executive director, and director of Policy Analysis at the Center for Energy Studies, Louisiana State University, lays out a clear description of the wind production tax credit and how the subsidy has become an unnecessary handout for an industry that, after 20-years, is unable to stand on its own without government assistance.
1 Nov 2012

Follow the Money! Article I and Article VI constitutional barriers to renewable energy in the U.S. future

Ssrn-id2163041-ferrey_thumb Attorney Steven Ferrey examines the constitutional barriers to State renewable energy policies, specifically the Constitution‘s Supremacy Clause (Article VI) and Commerce Clause (Article I). These constitutional articles establish hard legal limits on what states can and cannot do by regulation. In addition, as states collaborate on renewable energy policy, the Compact Clause raises distinct constitutional limits.
17 Oct 2012

Negative electricity prices and the production tax credit

Exelon-northbridgegroup_thumb This important document prepared by the Northbridge Group explains how the wind production tax credit has distorted the competitive wholesale energy market thus harming the financial condition of other, reliable generators on the system. The executive summary of the report is provided below. The full report can be accessed by clicking on the link at the bottom of this page.
14 Sep 2012

Linowes testimony before the House Science, Space and Technology Subcommittees

Linowestestimony_wexhibits_thumb This month, two subcommittees of the House of Representatives Science, Space, and Technology Committee[1] held a joint hearing, “Impact of Tax Policies on the Commercial Application of Renewable Energy Technology.” Windaction.org's Lisa Linowes was one of nine witnesses who testified. A summary of Ms. Linowes testimony follows. The full text of her testimony can be accessed at the links at the bottom of this page.
19 Apr 2012

Economic impact evaluation of wind turbines in the vicinity of the Naval Air Station Kingsville

Bishop_cisd_ecr_developmnet_economic_impact_evaluation_and_recommendation_package_12-12-2011_thumb EC&R Development is proposing the construction of a wind power electric generation facility in Nueces County Texas. EC&R Development is an active franchise taxpayer, as required by Texas Tax Code Section 313.024(a) and is in good standing. After reviewing the application using the criteria listed in Section 313.026 and the information provided by EC&R Development, the Comptroller's recommendation is that EC&R Development's application under Tax Code Chapter 313 not be approved.
12 Dec 2011

White House memo on Renewable Energy Loan Guarantees and Grants

Summers_renewable_energy_memo_thumb This explosive memo authored by White House advisers Carol Browner, Ron Klain, and Larry Summers explains how "double-dipping" by wind developers is resulting in the total government subsidy for loan guarantee recipients exceeding 60% against small private equity, as low as 10%. The appendix included with the memo is excerpted below. The full memo can be accessed by selecting the link at the bottom of this page.
25 Oct 2010

High Cost & Low Value of Electricity from Wind

High_cost___low_value_of_electricity_from_wind_thumb It has become well known by those in the energy industry that wind industry officials and lobbyists continue to understate the full and true cost of electricity from wind and have been successful in creating a false “popular wisdom” about wind energy. Energy analyst Glenn Schleede takes the gloves off and explains the real story behind wind energy's price and how it's high cost fails to match the value of the electricity produced. Mr. Schleede's paper can be accessed by clicking on the link at the bottom of this page.
4 Feb 2010

Flaws in and solutions to integrating renewable energy resources in New England

Williamshort_rpsflaws_thumb William P. Short III, a leading expert on renewable energy, delivered a compelling presentation at the Energy in the Northeast 2008 Conference held in Boston on Nov 17-18, 2008, outlining the flaws in present-day REC-based RPS programs and offering a comprehensive solution to revise these programs in order to offer ratepayers meaningful economic benefits in excess of the cost the RECs.
18 Nov 2008

Federal energy subsidies and support double between 1999 and 2007

Fedsubsidiesenergymarkets2007_thumb Federal electricity subsidies and support per unit of production (dollars per megawatt hour) varied widely by fuel in FY2007, according to EIA. Coal-based synfuels (refined coal) that are eligible for the alternative fuels tax credit, solar power and wind power received the highest subsidies per unit of generation, ranging from more than $23 to nearly $30 per megawatt hour of generation. The smallest subsidies on a per unit basis were for coal, natural gas and petroleum liquids, and municipal solid waste, all at less than $0.45 per megawatthour of generation.
1 Apr 2008

Independent Economic Assessment of the Proposed Bluewater Offshore Wind Farm

Pacereport_thumb Pace Global Energy Services, LLC (“Pace”) was commissioned by Delmarva Power and Light (“Delmarva”) to independently assess the economic impacts of the proposed Bluewater Wind off-shore wind farm (the “BWW Project”) on Delmarva’s Standard Offer Service (“SOS”) customers. The review undertaken by Pace was based solely on publicly-available information and data sources. The report can be downloaded by clicking on the below link.
8 Nov 2007

IRS Creates Safe Harbor for Wind Energy "Flip" Transactions

The Internal Revenue Service has published a revenue procedure establishing a safe harbor with respect to allocation of production tax credits from wind energy facilities. Section 45 of the Internal Revenue Code (IRC) provides for a renewable electricity production credit for each kilowatt hour of electricity produced by the taxpayer from a qualified energy resource, including wind, at a qualified facility and sold to an unrelated person during the taxable year. The credit continues for 10 years from the time the facility was originally placed in service. Wind energy projects frequently are owned and operated by LLCs formed between a wind developer and one or more investors interested in earning returns from operating cash flow and IRC ? 45 credits from the project. The IRS previously had announced that it would no longer rule on any issues for partnerships (LLCs generally are treated as partnerships for federal tax purposes) claiming the IRC ? 45 production tax credit.
24 Oct 2007

http://www.windaction.org/posts?p=2&topic=Taxes+%26+Subsidies&type=Document
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