Buried in the fiscal cliff deal resolved on New Year’s Day was a one-year extension of the renewable energy production tax credit. While this outcome is a victory for clean energy sectors like wind and biomass, the extension falls short of a long-term solution ASBC and allies like the American Wind Energy Association were pushing for. In 2009, Congress extended the wind production tax credit until 2012. The production tax credit amounts to 2.2 cents per kilowatt hour generated for 10 years.
The revised credit applies to projects started in 2013 but it will remain in effect for two years so that developers will have time to finish them. The PTC will spur investment in these clean energy technologies and will help the United States remain competitive in the global clean technology marketplace, creating jobs and moving toward a clean energy economy.
Looking ahead, there is movement in Congress for a gradual six-year phase-out of the PTC. One plan being pushed would reduce the amount of the credit by 10 percent a year until it would stop altogether in 2018.