in News Departments > Policy Watch
print the content item



Hope for a revival of the wind production tax credit (PTC) has been buoyed, as a two-year extension of the incentive has made its way into a newly passed Senate Finance Committee tax extenders bill. An earlier version of the bill, released by Committee Chairman Ron Wyden, D-Ore., on Tuesday, did not include the PTC.

Sens. Charles Grassley, R-Iowa; Michael Bennet, D-Colo.; and Maria Cantwell, D-Wash., had pushed for an amendment to add the PTC extension prior to a committee markup hearing on April 3. The bill also includes a two-year extension of the investment tax credit (ITC). Both incentives expired on Dec. 31, 2013, and the legislation would extend them through Dec. 31, 2015.

The Senate Finance Committee passed the tax extenders package Thursday afternoon and has sent it to the Senate floor.

“We’re grateful to all the supporters of renewable energy on the Senate Finance Committee,” says Tom Kiernan, CEO of the American Wind Energy Association (AWEA), in a statement. He adds that the vote “provides a critical signal for our industry.”

According to AWEA, a number of Senators on both sides of the aisle highlighted the success of the PTC and ITC during the hearing. Grassley spoke at length in favor of the tax credits and called arguments against their extension from Sen. Pat Toomey, R-Pa., “intellectually dishonest.”

John Thune, R-S.D., then withdrew a proposal to phase down the PTC, saying that discussion belonged in comprehensive tax reform, not the debate over the extenders package. Sen. Michael Bennet, D-Colo., called the PTC “vitally important” to his state - an incentive that is “driving not just economic growth, but job growth and wage growth.”

Lately, loud support for PTC and ITC extensions has been prevalent among elected officials. Last month, 144 Congress members signed letters urging their colleagues to act quickly to revive the incentives. Twenty-six Senate members signed the letter to Wyden, and 118 House members signed the letter to Speaker John Boehner, R-Ohio. Furthermore, President Barack Obama’s recent fiscal-year 2015 budget proposal reiterated his call for a permanent PTC.

Nonetheless, some groups had urged the Senate Finance Committee not to include the incentive extension. For example, conservative advocacy Americans for Prosperity issued the following statement on April 2: "Wind energy companies have been receiving special handouts from the Obama administration for years and still haven't been successful. It's time for Congress to put an end to this corporate welfare and encourage a free market in the energy industry that will lower costs for Americans across the country."

Although the Senate Finance Committee reported out the tax extenders bill, which includes about 50 other expired provisions, the battle is likely far from over.

As David Burton, a partner at law firm Akin Gump Strauss Hauer & Feld, points out, the vote is “a first step in a long journey and unlikely on its own to create enough confidence to spur investment in the development of new projects.”


Trachte Inc._id1770
Latest Top Stories

Could New Desert Plan Spell The End Of California Wind Energy Development?

The California Wind Energy Association says it is disappointed with the draft Desert Renewable Energy Conservation Plan, which was recently released by state and federal agencies.


New U.S. House Bill Includes Wind PTC Extension

U.S. representatives have introduced the Bridge to a Clean Energy Future Act of 2014, which would extend the production tax credit (PTC) and other provisions through 2016.


Utility-Scale Wind And Solar Keep Getting Cheaper

A new study measures the levelized cost of energy from various technologies and suggests that the costs of utility-scale wind and solar power are catching up with those of traditional sources, even without subsidies.


The Song Remains The Same: Ontario Seeks More Science Before Lifting Offshore Ban

The Ontario government says the nearly four-year-old offshore wind moratorium will remain in place until the province fully understands the technology’s impact on the environment.


Why States Should Adopt A Renewable Portfolio Standard

A new study analyzes the potential benefits of state renewable energy mandates, as well as recommends what such policies should include.

Renewable NRG_id1934
Canwea_id1984
UnitedEquip_id1995
Future Energy_id2008