Looming deadline for PTC extension is major focus at Windpower 2012
Posted: June 5, 2012 Filed under: Uncategorized | Tags: Policy, tax credits, Wind Energy
The American industry will soon pass a milestone of 50 gigawatts (GW) of cumulative capacity
Has the rich era of the Production Tax Credit (PTC), which has helped promote wind energy, come to an end? That’s the question Steve Leone of RenewableEnergyNews gets to the nub of as he looks at the implications of the sunsetting of the credit.
“But there is a tangible shift occurring across North America and the pending expiration of the PTC looms over companies large and small. The generation-based tax credit is set to expire at the end of the year, and though the PTC appears to have plenty of anecdotal support on Capitol Hill, it has so far failed to garner the political resolve needed to ensure its extension.
“That has caused plenty of jitters across the American industry, from developers reluctant to take on a project to manufacturers who are seeing their orders drying up. There are plenty of indications that a policy solution could be found but with that come other questions: Will the credit be extended for one year only?; If so, what comes after that?; and is the continued reliance on tax credits really the best long-term solution?
“A recent New York Times editorial made the case that real estate investment trusts and master limited partnerships could open up new avenues for wind investment by allowing projects to tap into capital that hasn’t been there before. But the industry has coalesced around the push for a PTC extension, though differences remain in how long that extension should be,” he writes.
“American Wind Energy Association CEO Denise Bode indicated the organization is pushing for a one-year extension, with the hopes that a longer-term solution can be found the following year.”