News reports have already alerted people to the fact that Congress has extended the Production Tax Credit ("PTC") for wind as part of its agreement to avoid the fiscal cliff. The bill – named the American Tax Relief Act of 2012 – extended the sunset date for wind through December 31, 2013. This extension gives
Economists Weigh in on the PTC Extension
Against the backdrop of election year politics and consideration of extension or elimination of the Production Tax Credits (PTCs), the Congressional Research Service (CRS) issued a report last week entitled, “U.S. Renewable Electricity: How Does the Production Tax Credit (PTC) Impact Wind Markets?” This report examines the possibility of an extension of the PTC, and the potential impacts such an extension (either long- or short-term) would have on the U.S. wind market. Not surprisingly, the conclusions are mixed and layered with uncertainty.
The report trumpets that 2012 will be a record year for the wind industry. Due in large part due to the pending expiration of the PTC, the U.S. wind sector deployed 10-12 GW of wind power this year—an unprecedented amount. However, all indications are that the expiration of the PTC will cause a severe market downturn in 2013 and beyond. No wonder the wind industry has been pushing Congress so hard for an extension. But does an extension make good economic sense?…
Only the Strong Survive: the post PTC Wind Market
My colleague Ed Einowski didn’t mince words in a recent article published by The Sindal Report. If the federal production tax credit (PTC) is allowed to expire at the end of this year, there will be a dramatic drop-off in wind installation starting in 2013. And these diminished opportunities will add up to significant…
Further update on Expiring Provisions
As I mentioned in my post yesterday, sometimes a chairman’s mark will change just before the committee marks up legislation. Chairman Baucus’s did. Here is a description of the now-included PTC/ITC proposal:
Description of Proposal
The proposal extends and modifies the expiration dates for the renewable electricity production credit and the 30-percent investment credit …
Follow up – Baucus and Hatch strike deal on expiring provisons
Earlier today, I reported that Senators Baucus and Hatch had agreed on a proposal to extend a package of expiring provisions. Details of that package have now been released here:
Unfortunately, it appears that extension of the PTC was not included. This does not preclude the Senate Finance Committee from adding it during its…
Possible Agreement on Extension of Tax Provisions, including PTC
Senators Max Baucus and Orrin Hatch, chairman and ranking member respectively, of the US Senate Finance Committee, have just announced that they have reached agreement on legislation to extend certain expiring tax provisions. The bill will be marked up by the Finance Committee on August 2.
The details of the proposal have not been announced. …
DOE Concludes 1603 a Big Job Creator
A surprise to no one involved in renewable energy, the DOE (via NREL) has just issued a report concluding 1603 created tens of thousands of new jobs.
See the report at http://www.nrel.gov/docs/fy12osti/52739.pdf
Stoel Rives Offering 50% Registration Discount at Project Finance: The Tutorial
Stoel Rives partner Ed Einowski will serve as a faculty member and speaker at Infocast’s Project Finance: The Tutorial, taking place next month in New York City.
This program, now in its 25th year, is truly a critical financial tool, as it provides insights into obtaining financing in today’s market environment. This is why …
President Proposes Permanent PTC Extension
On Wednesday, February 22, the White House and the Department of Treasury issued a report entitled “The President’s Framework for Business Tax Reform.” Among other proposals for reforming the way U.S. businesses are taxed, the report calls for a permanent extension of the Production Tax Credit (“PTC”) for renewable energy projects. In addition, the President’s…
Section 1603 Cash Grants for Renewable Energy Projects TeleBriefing
With the end of 2011 drawing near, many renewable energy developers are seeking to qualify their projects for the Section 1603 cash grant. Developers continue to try to understand the complexities surrounding the grant requirements, especially the determination of when projects are considered to have met the “beginning construction” requirement.
On August 24, I’ll moderate a Law Seminars …