Momentum Building to Revive (Or End) Renewable Energy Tax Credit

As Congress revs up its efforts to tackle comprehensive tax reform, interest in the Production Tax Credit (PTC) from both sides of the issue is growing. The PTC, a per-kilowatt-hour tax credit for renewable electricity generation, originated in the Energy Policy Act of 1992, has been renewed and expanded numerous times. Significant changes were made in 2009 legislation, most notably allowing qualifying facilities to opt instead for the federal business energy investment credit (ITC). The ITC for PTC-eligible technologies is generally equal to 30% of appropriate costs. Key to the American Taxpayer Relief Act, enacted in January 2013, were provisions extending the deadline for wind energy facilities by one year to December 31, 2013, and extending permission for PTC-eligible facilities to claim the ITC through 2013. Although the chances are almost nil that Congress will enact tax reform legislation by the end of the year, proponents and opponents are mounting intense lobbying efforts to pressure Congress for or against PTC extension. This effort includes the Governors’ Wind Energy Coalition (for) and the group Americans for Prosperity (against). It is important to note that many in the renewable energy industry will still be able to claim the PTC through 2015 because of special consideration provided in the January 2013 Act.

Contact:  Carol Connor, cconnor@mogelsweet.com