In another month, the wind PTC will finally expire after twenty-seven years. Taxpayers will still be on the hook for billions more in PTCs through the next decade but the burden should not increase. In that time, the wind industry has grown significantly reaching over 100,000 MW and now mainstreamed into the US electricity market. Big Wind is no longer a nascent industry, but one that must stand on its own, whether it's ready or not.
WindAction Editorials filed under Taxes & Subsidies
The US Treasury estimates the PTC will cost taxpayers $40.12 billion in the period from 2018–2027, making it, by far, the most expensive energy subsidy under current tax law. ...After billions in public hand-outs, the wind industry has never been able to stand on its own and there’s no reason to believe this will change. Tax credits are now a required component of the industry’s economics. The outcome of an expired PTC is evident: wind installations will crawl to a near stop.
The Senate bill should serve as the PTC/ITC blueprint for the final bill. Any changes recommended by the conference committee should be addressed swiftly and fall within the envelope of the Senate bill. This is an important step, but only first step, toward a level-playing-field between electrical energies that will, longer term, improve grid reliability coast-to-coast, border-to-border.
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.
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.”