Wind industry rushing to obtain tax credits before end of year

U.S. wind industry is rushing to qualify wind development projects for a government subsidy known as the Renewable Electricity Production Tax Credit before the Dec. 31 the deadline.

The U.S. wind power industry is rushing through turbine orders and deals to qualify wind development projects for a government subsidy before Dec. 31, The New York Times reported. Wind projects qualify for a tax credit of 2.3 cents a kilowatt-hour for the first 10 years of production if they begin before the deadline. The deadline for the tax credit, known as Renewable Electricity Production Tax Credit (PTC), was initially pushed back by one year from Dec. 31, 2012.

"What we see right now is a race to the finish line, where we're trying to get projects signed," said Mark Albenze, chief executive of the Wind Power Americas unit of Siemens Energy, according to the Times. "It's a little bit of a different dynamic, whereas in [2012] our projects teams were the ones stressing out in December and now it's our acquisition team."

Wind companies qualify by either showing construction has started based on "physical work of a significant nature" or when 5 percent of the whole cost of the project is incurred.

More information on how the expiration of the tax credit will impact the wind industry can be found at PennEnergy Research

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