Documents filed under Taxes & Subsidies
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.
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.
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.
Jonathan Lesser of Continental Economics delivered this presentation which addresses the flaws of the wind PTC and the hidden costs of wind power. An excerpt of his presentation is below. The full presentation can be accessed by clicking on the link(s) at the bottom of the page.
The Exelon presentation details how the wind production tax credit is distorting the wholesale power market and financially harming other clean, reliable resources. An excerpt of the presentation is below. The full presentation can be accessed by clicking on the link(s) at the bottom of the page.
This month, two subcommittees of the House of Representatives Science, Space, and Technology Committee 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.
The Senate Committee on Finance Subcommittee on Energy, Natural Resources, and Infrastructure has scheduled a public hearing on March 27, 2012, on renewable energy tax incentives.
Nearly 200 residents of Indiana responded to a call for signatures asking Congress to let the production tax credit to expire. The text of the letter is below. The full letter with signatures can be accessed at the link.
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.
The U.S. Congressional House Budget Committee prepared this document which discusses the failure green energy subsidies to produce meaningful job growth. An excerpt of the report is provided below. The full report can be accessed by clicking on the link(s) at the bottom of this page.
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.
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.
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.
Texas oilman T. Boone Pickens is on a mission, and wants you to support his energy plan away from imported oil and towards natural gas and wind power. But commentator Will Wilkinson says to be wary of what you hear beginning at 4 minutes 36 seconds.
Energy expert, Glenn Schleede, explains how federal subsidies make wind power an easy choice for T. Boone Pickens but a losing proposition for American taxpayers.
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. The original purposes of tax credits for wind energy - i.e., to encourage technology development and commercialization, gain a foothold in energy markets, and be more competitive with older, established energy sources - have been more than satisfied:
The following letter was one of many set to Congressional representatives and senators from across the U.S. Thousands of individuals granted permission for their names to appear on the letter requesting that the Congress vote no on any further extensions of the wind PTC.
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.
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.