American Wind Energy Association celebrates extension of wind energy Production Tax Credit

American Wind Energy Association (AWEA) CEO Tom Kiernan recently released a statement celebrating the extension of the wind energy Production Tax Credit (PTC).

The extension was included in a spending and tax bill that President Trump signed into law on Dec. 20, 2019. The package will extend for one year the PTC under section 45 for wind and other technologies. The bill also increases the value of the PTC to 1.5 cents/kilowatt-hour.

“This bipartisan bill is a major win for American consumers,” Kiernan said. “It means more business for over 500 U.S. factories building wind turbine components, and it means more opportunities for job creation and economic development in the rural communities hosting wind farms,” said Kiernan. “We appreciate that Congress has recognized wind and other renewable’s role in building a strong economy while also reducing carbon emissions.”

Previously, wind facilities were eligible for a reduced PTC of 40 percent through the end of 2019, and the credit was set to expire at the end of 2019. Under the extension, wind projects that began construction in 2019 are eligible for the 40 percent credit, and those that start construction in 2020 will be eligible for a 60 percent credit.

The bill also retroactively revives and extends the full PTC through 2020 for closed and open loop biomass, geothermal, municipal solid waste, marine, and hydrokinetic and qualified hydropower facilities.

The package did not include an extension of the Investment Tax Credit (ITC) for solar and other technologies, an expansion of the ITC for energy storage technology, or an extension of energy credits for offshore wind facilities. Solar, fiber-optic solar equipment, fuel cell property, micro-turbine property, combined heat and power property, and qualified small wind projects are eligible for a reduced ITC in 2020 as part of the planned phase-down of the credit.