Fiscal Cliff Deal Extends U.S. Wind Power Tax Credits

By New Release American Wind Energy Association
Published on January 3, 2013
article image
Photo by Fotolia/rukanoga
The fiscal deal extends a key tax credit for the wind industry for one year, and changes it in a way that will prod a lot of development in 2013.

The following news
release was provided on Jan. 1, 2013, by the
American Wind Energy
Association.

The United States’ 75,000 workers in wind energy are
celebrating tonight over the continuation of policies expected to save up to
37,000 jobs and create far more over time, and to revive business at nearly 500
manufacturing facilities across the country. The extension of the wind energy
Production Tax Credit (PTC), and Investment Tax Credits for community and
offshore projects, will allow continued growth of the energy source that
installed the most new electrical generating capacity in the United States
last year, with factories or wind farms in all 50 states.

The version included in the deal would cover all wind
projects that start construction in 2013. Companies that manufacture wind
turbines and install them sought that definition to allow for the 18-24 months
it takes to develop a new wind farm.

Leaders of the Senate Finance Committee included that
version in a “tax extenders” package they assembled in August, which made it
into the overall fiscal cliff deal that passed the Senate early Jan. 1 morning
and passed in the House that night. The bill is expected to be swiftly signed
into law by President Obama, who consistently supported the wind energy tax
credits throughout the process.

Wind set a new record in 2012 by installing 44 percent of
all new electrical generating capacity in America, according to the Energy
Information Administration, leading the electric sector compared with 30
percent for natural gas, and lesser amounts for coal and other sources.

However, America’s
wind energy workers have been living under threat of the PTC’s expiration for
over a year and layoffs had already begun, as companies idled factories because
of a lack of orders for 2013. Uncertain federal policies have caused a
“boom-bust” cycle in U.S.
wind energy development for over a decade.

Online Store Logo
Need Help? Call 1-800-234-3368