Legislative Background on Wind Energy
Recent Action by Congress on the Wind Production Tax Credit
Congress created the Production Tax Credit (PTC) as part of the Energy Policy Act of 1992. The PTC provides an income tax credit of 2.2 cents per kilowatt hour of electricity produced by wind turbines for the first 10 years of production. The purpose is to level the playing field among wind, coal, and natural gas. The PTC has expired and been renewed numerous times, including under the American Recovery and Reinvestment Act (AARA) of 2009. The AARA also provided that developers of wind projects could choose to receive a 30 percent investment tax credit or an equivalent cash payment in…
