Impact of the Production Tax Credit on the U.S. wind market
December 12, 2011
A December 2011 study by Navigant Consulting based on statistical forecasts finds that if Congress extends the Production Tax Credit (PTC) for wind, it will create and save 54,000 American jobs in the next four years and provide a host of other benefits for Americans.
About Navigant’s Production Tax Credit (PTC) Report
The PTC is a tax incentive that encourages development of clean energy projects. The wind energy PTC will expire in 2012 unless Congress takes action.
The Navigant report forecasts U.S. wind energy capacity, wind jobs, and economic and environmental impacts of two scenarios: (1) the PTC expires at the end of 2012, and (2) the PTC has a four-year extension and expires in 2016.
Extending PTC Boosts Jobs; Letting PTC Expire Kills Jobs
Extending the PTC will create 17,000 new American jobs, boosting the manufacturing sector by one-third, according to the study. In addition, U.S. wind investment will grow to $16.3 billion in 2016, and annual wind installations will be 8-10 GW through 2016.
However, with no PTC extension, the U.S. wind market will shrink significantly in 2013 and beyond: For instance, the report forecasts that total wind-supported jobs will drop by nearly half in just the first year after the expiration, from 78,000 jobs in 2012 to 41,000 jobs in 2013.