United States

United States

US PTC extension bill introduced

Developers of US wind farms may be able to claim federal relief for another year if congress passes a new tax extension package.

The US House of Representatives and Capitol Dome (pic credit: Architect of the Capitol)
The US House of Representatives and Capitol Dome (pic credit: Architect of the Capitol)

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Democrat Mike Thompson has introduced a bill in the House of Representatives that would prolong expired tax credits or credits expiring in 2019, including the wind energy production tax credit (PTC) for one year.

If the proposed extension becomes law, developers could claim tax relief for projects started before 1 January 2021, a year beyond than the current deadline.

Congress had approved an extension and five-year phase-out of the PTC in 2015.

Developers beginning construction in 2019 receive 40% of the $0.023/kWh PTC for a project’s, but are currently due to receive no federal support for projects started beyond 1 January 2020.

Analysts at Wood Mackenzie Power and Renewables had forecast a surge in new US capacity being installed in 2019 and 2020 as developers rush to meet deadlines for securing tax credits.

However, they also warned that the scramble for specialised logistics to transport wind turbines, blades and towers could put some projects at risk.

The American Wind Energy Association’s vice president for federal affairs, Bree Raum, said: "As Congress considers clean energy tax policy, we encourage parity between technologies to boost competition and meet consumer demand for clean energy at the lowest possible cost.

"Accordingly, we would support tax extender policies that move toward that level playing field."

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