The IRS flouted Congressional intent …and knowingly transformed the PTC phase-out into a 5-year PTC extension. Without reform, the PTC tax will grow to an additional $32+ billion in the next decade, not including the credits awarded projects already operating.
WindAction Editorials from USA
Big wind’s complaint that the language reneges on a previous deal is entirely unfounded. The so-called ‘deal’ AWEA is trying to preserve … was a backroom negotiation between industry and Obama-era IRS lawyers to craft guidance that went well beyond the statute. Congress is finally taking corrective action. ...[T]he GOP tax bill is headed in the right direction on wind energy development. But if the goal was to simplify tax legislation, the GOP should go further and repeal the PTC altogether.”
Market conditions back in 1992 no longer exist. Big wind no longer needs the Production Tax Credit, and certainly cannot justify the extraordinary benefits received [3.5¢/kWh pre-tax]. Retaining the subsidy in light of lower installation costs and increased production serves only to further distort the market and bestow a bounty on big wind that far exceeds what 1992 lawmakers could ever have envisioned.
As California considers a 100% renewable-energy mandate, the state’s legislators should be asking what happens to California’s energy profile when the sun doesn’t shine and the winds don’t blow.
“The 30-year eagle take regulations are another example of the Obama White House rushing poorly considered policy that will have significant impact. Given the history of collaboration between Big Wind and FWS officials, the motives behind this push should be questioned by Congress and the public.”