1. What is the wind production tax credit (PTC)?
Results for "PTC" in WindAction Editorials
As the White House and Congress negotiate a massive Covid-19 stimulus, the wind and solar industries are pushing for more PTC/ITC extensions. They are shameful and our political class can't be trusted. This letter to Congressional leaders emphasizes why the subsidies should expire as promised in 2015.
In another month, the wind PTC will finally expire after twenty-seven years. Taxpayers will still be on the hook for billions more in PTCs through the next decade but the burden should not increase. In that time, the wind industry has grown significantly reaching over 100,000 MW and now mainstreamed into the US electricity market. Big Wind is no longer a nascent industry, but one that must stand on its own, whether it's ready or not.
The US Treasury estimates the PTC will cost taxpayers $40.12 billion in the period from 2018–2027, making it, by far, the most expensive energy subsidy under current tax law. ...After billions in public hand-outs, the wind industry has never been able to stand on its own and there’s no reason to believe this will change. Tax credits are now a required component of the industry’s economics. The outcome of an expired PTC is evident: wind installations will crawl to a near stop.
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.
The IRS flouted Congressional intent …and knowingly transformed the PTC phase-out into a 5-year PTC extension. Without reform, the PTC tax will grow to an additional $32+ billion in the next decade, not including the credits awarded projects already operating.
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.”
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.
This essay, the fourth in a series aimed at correcting the most harmful wind energy-related policies of the Obama era, examines how the U.S. Department of Energy has set aside its scientific objectivity and has assumed the role of chief advocate for wind power in the federal government. Prior essays can be found here, here and here.
This essay, the third in a series aimed at correcting the most harmful wind energy-related policies of the Obama era, examines how pro-wind federal law enacted in 2011 now compromises U.S. aviation safety and military assets. Prior essays can be found here and here.