American Wind Energy Association proposes to phase out Production Tax CreditDecember 17, 2012
American Wind Energy Association aims to get rid of the Production Tax Credit, eventually
The U.S. has shown strong support for wind energy over the past several years, but the country is currently debating the justification for extending the Production Tax Credit, which provides wind energy companies and their assorted projects with tax breaks. The American Wind Energy Association is a strong supporter of the Production Tax Credit, but the organization is well aware of the financial implications of the country’s continued support of wind energy. The organization has proposed a plan that could help address these issues without presenting inordinate strain on the U.S. economy.
Tax program provides financial backing for wind energy projects
Like other forms of alternative energy, wind energy is associated with a very high upfront cost. The costs associated with adoption have the U.S. government dumping significant amounts of money into projects that promise to offer returns several years into the future, if at all. The issue of cost is one of the reasons alternative energy has had trouble finding the support it needs. The Production Tax Credit exists to help wind energy projects take form, but Congress is keen on cutting the program in order to save money.
Organization proposes 6-year phase out plan
The American Wind energy Association is intent on keeping the tax program intact, at least for the next six years. The organization has proposed a 6-year phase out plan, at the end of which wind energy is expected to be cost-competitive with other forms of power. According to the proposal, the Production Tax Credit would be used to provide funding for promising wind energy projects, with this support decreasing over the next six years, eventually evaporating in 2018.
Extending Production Tax Credit could have strong benefits
The American Wind Energy Association believes that this approach will provide wind energy projects with the financial support they need while also giving wind energy companies incentive to find a way to make their energy systems competitive with other forms of power. The organization also notes that extending the Production Tax Credit will help secure jobs, which will be a benefit to the nation’s economy overall.