US extends PTC until end of 2014

UNITED STATES: The US Senate has approved a bill to extend the Production Tax Credit (PTC) for the wind industry for another year, taking it to the end of 2014.

The US Senate has approved the PTC extension

The bill, which has now been sent for approval by President Obama, was passed by a 76-16 vote late last night. The House of Representatives approved the bill on 3 December.

An extension allows US projects that began construction activities in 2014 to apply for the credit. It gives producers of wind power a $0.023/kWh incentive.

A one year extension casts doubt on the willingness or ability of Congress to revisit the PTC in 2015, said Luke Lewandowski from Make Consulting.

"This results in long-term doubt that will undoubtedly have severe consequences on the domestic supply chain," he said.

The Senate Finance Committee approved a two-year extension to the PTC in April, as part of a package of tax measures. Chairman of the committee, democrat Ron Wyden, voted against the bill to try and force a two-year extension.