The extension will allow US projects that began construction activities in 2014 to apply for the credit. It gives producers of wind power a $0.023/kWh incentive.
The Senate will now need to approve the bill before it becomes law. The Senate vote is expected to take place in the coming days as both Houses are expected to adjourn for the Christmas break next week.
Many in the industry had called for a two-year extension to the credit, which now would expire at the end of 2014.
The Senate Finance Committee approved a two-year extension to the PTC in April, as part of a package of tax measures.
The American Wind Energy Association (AWEA) said the extension creates uncertainty in the US sector. AWEA also warned of a dramatic slowdown to the industry, similar to 2013 when the PTC previously expired, resulting in a 92% drop in installations.