Bipartisan group proposes two-year PTC extension

UNITED STATES: A bipartisan group of senators is attempting to resuscitate the production tax credit (PTC) by introducing legislation proposing a two-year extension for the subsidy.

The 'American Energy and Job Promotion act' is sponsored by senators including Iowa Democrat Chuck Grassley, who sponsored the original PTC bill.

Last week an attempt to extend the PTC failed in the US Senate on Tuesday. A one-year extension of the credit was tacked on as an amendment to a transportation bill now before the chamber.

Earlier this year, a similar effort was made to add the PTC as an amendment to payroll tax legislation. The wind industry saw the legislation as its best hope to win a near-term extension of the $0.022/kWh incentive.

A number of wind developers and manufacturers have said they are considering their plans in the US. In January, an Iberdrola spokesman said: "We are still pursuing selective opportunities in the US. But if we can’t [complete a project] in 2012, we don’t plan on building it in 2013 unless and until a PTC is passed."

Additionally, Vestas has said it will make US job cuts of around 1,600 if the PTC is not extended. 

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