What is the Federal Renewable Electricity Production Tax Credit (PTC) and how does it affect wind generators?
Authorized by the Energy Policy Act of 1992, the Production Tax Credit (PTC) is a 2 cent per kilowatt-hour (kWh) corporate income tax credit for electricity generated by qualified energy projects, including wind power. Available during the first 10 years of operation, the PTC is adjusted annually for inflation. When the PTC is allowed to lapse, wind energy production declines. Thanks to the hard work of our industry leaders through the American Wind Energy Association (AWEA) and individual companies, Congress has passed a 3-year PTC extension for the wind industry (along with additional incentives) that will help avoid a recurrence of the boom-and-bust policy cycle that the industry has experienced from time to time.
