Ill Winds Blow for Energy Production Tax Credit

single wind turbine Photo Joanna SchroederThings could be looking bleak for a federal tax credit that helps wind power projects. This article from Bloomberg Businessweek says the production tax credit is facing a bumpy ride as Congressional Republicans look for a bigger tax break overhaul.

“Maybe there will be some in the Senate who will try to revive it but I really do think it’s dead in the House,” said [Representative Charles] Boustany, a Louisiana Republican and member of the House Ways and Means Committee, said in an interview today in New York. While the credit might be revived as part of lame-duck legislation after the November elections, that seems unlikely, he said.

The 2.3-cent per kilowatt-hour production tax credit, which pays owners for power produced during a project’s first decade, expired at the end of last year. A broader tax reform proposal released last month by Representative Dave Camp, chairman of Ways and Means, would reduce the amount project owners can claim to 1.5 cents, boosting government revenue by an estimated $9.6 billion.

President Obama has proposed a permanent extension and expansion of the production credit at a cost of $19.3 billion over the next decade. His efforts might be boosted by Oregon Democratic Senator Ron Wyden, who is planning a vote on restoring the measures in the next few months.

Meanwhile, officials with the American Wind Energy Association promise to stay engaged in tax-reform discussions.

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