Wind Energy Gets a Second Breath of Life (News Note)

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wind trubinesHave you been following the “fiscal cliff” debacle?  Unless you spent the holiday season in a cave, the answer is probably YES.  One interesting detail tucked away in the recently passed compromise legislation is the renewal of the Renewable Energy Production Tax Credit (PTC) for wind power, now extended through 2013.

The PTC awards a 2.2 cents per kilowatt hour tax credit for wind, geothermal and closed-loop biomass and 1.1 cents per kilowatt hour for other renewable energy technologies. This lasts for 10 years for most technologies, including wind.  Alternatively, companies can request a lump-sum payment of 30% of the wind construction cost as a tax credit once the wind turbine starts producing power.

Also new for 2013, companies are allowed to claim the credit if construction begins before the end of this year.  Previously, the facility had to be placed in service (i.e., operating) before the end of the year.

According to the folks at Green-Buildings.com, the extension of the renewable energy credit should boost wind energy construction, at least for the first half of 2013.

What is your opinion of the tax incentives for wind energy?  Yeah or Nay?

Photo (c) berent.

 

Topics:  American Taxpayer Relief Act, Fiscal Cliff, Production Tax Credit, Renewable Energy, Tax Extensions, Wind Power

Published In: Construction Updates, Elections & Politics Updates, Energy & Utilities Updates, Environmental Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Melissa Dewey Brumback, Ragsdale Liggett PLLC | Attorney Advertising

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