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newsroom
CONGRESS EXTENDS WIND ENERGY PRODUCTION TAX CREDIT FOR AN ADDITIONAL YEAR Early Action by Congress Will Spur Sustained Growth, Help Fight Global Warming Pollution and Strengthen America’s Energy Security The Production Tax Credit (PTC) for wind and other renewable energy technologies will be extended for one additional year – through December 31, 2008 – as part of a tax and trade policy bill passed during the closing hours of the 109th Congress. President George Bush is expected to soon sign the measure into law. The PTC, which was scheduled to expire on December 31, 2007, provides a 1.9 cent-per-kilowatt-hour (kWh) tax credit for electricity generated over the first ten years of a project’s operation. “This is the second time that Congress has approved an extension of the production tax credit before it expires, and this continuity is vital for the U.S. wind energy industry,” said American Wind Energy Association (AWEA) Executive Director Randall Swisher. “The extension needs to take place at least eight months in advance of expiration to avoid a slowdown in the market, so this action by Congress comes at the right moment: the timely extension provides the stability that companies need to plan for growth and meet the nation’s fast-increasing demand for renewable energy.” “Extending the credit now – a full year before it was set to expire on December 31, 2007 – is enormously important,” said AWEA Legislative Director Jaime Steve. “This timely action by Congress will boost significant upward growth and investment for wind energy, spurring thousands of new jobs and millions of dollars in rural economic development while also bringing cleaner air to all Americans. Extending the credit is also an investment in fighting climate change and increasing America’s energy security.” AWEA gives special thanks to Senators Harry Reid (D-NV), Charles Grassley (R-IA), Max Baucus (D-MT), Byron Dorgan (D-ND), Kent Conrad (D-ND) and Jeff Bingaman (D-NM) for recognizing the PTC as an important national priority and ensuring its inclusion in the tax bill passed before Congress adjourned for the year. On the House side, the leadership of Rep. Bill Thomas (R-CA), Charles Rangel (D-NY) and Jim McCrery (R-LA) was critical in gaining an extension of the PTC. Wind energy is growing in the U.S. at a record-breaking pace. The U.S. wind energy industry is on track to install about 2,700 megawatts (MW) of capacity in 2006, making wind the second-largest source of new power generation for two years in a row behind natural gas fired plants. The new capacity installed in 2006 will produce on average about as much electricity as is used by 700,000 to 800,000 homes or the entire state of Rhode Island. According to AWEA, new wind energy installations may reach 3,000 MW in 2007. AWEA, formed in 1974, is the national trade association of the U.S. wind energy industry. The association's membership includes turbine manufacturers, wind project developers, utilities, academicians, and interested individuals. More information on wind energy is available at the AWEA web site: www.awea.org. # # # |
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