Wind Energy Production Tax Credits to Expire

wind farms, wind energy production tax credit, alternative energy, The wind energy production tax credit (PTC) is set to expire at the end of 2012 unless legislators extend its provisions.

The PTC is scheduled to expire for new wind generators entering service after the end of 2012, according to the U.S. Energy Administration. Other PTC-eligible technologies may continue to receive this tax credit for facilities that begin operation during 2013.

First enacted in 1992 as part of the Energy Policy Act, the PTC is a credit based on annual production of electricity from eligible resources.

The United States had less than 1.5 gigawatts (GW) of installed wind capacity in 1992. By the end of 2011, wind capacity stood at more than 45 GW, about 4 percent of U.S. power generating capacity, and provided 3 percent of total U.S. electricity generation.

Although amendments to the original law have expanded it to a wide variety of renewable resources and technologies, the original PTC applied to generation from tax-paying owners of new wind plants, as well as eligible biomass power plants.