Have you been following the “fiscal cliff” debacle? Unless you spent the holiday season in a cave, the answer is probably YES. One interesting detail tucked away in the recently passed compromise legislation is the renewal of the Renewable Energy Production Tax Credit (PTC) for wind power, now extended through 2013.
The PTC awards a 2.2 cents per kilowatt hour tax credit for wind, geothermal and closed-loop biomass and 1.1 cents per kilowatt hour for other renewable energy technologies. This lasts for 10 years for most technologies, including wind. Alternatively, companies can request a lump-sum payment of 30% of the wind construction cost as a tax credit once the wind turbine starts producing power.
Also new for 2013, companies are allowed to claim the credit if construction begins before the end of this year. Previously, the facility had to be placed in service (i.e., operating) before the end of the year.
According to the folks at Green-Buildings.com, the extension of the renewable energy credit should boost wind energy construction, at least for the first half of 2013.
What is your opinion of the tax incentives for wind energy? Yeah or Nay? Share in the comment section, below.
Photo (c) berent.