Tag Archives: Production Tax Credit

Powering Down the Wind Subsidy

How Congress can achieve something by doing nothing.

The Wall Street Journal, December 12, 2013

The media are saying that the 113th Congress is on track to be “the least productive” on record—as if that’s bad for the country. Let’s hope gridlock lasts long enough to kill the crony capitalist special known as the wind production tax credit.

This subsidy that was supposed to be temporary is now 20 years old, providing a taxpayer gift to wind companies of 2.3 cents per kilowatt hour. The handout would cost $18 billion over the next five years. The good news is that it is due to expire on December 31 unless Congress acts to extend it, so House Republicans can accomplish something for taxpayers by doing nothing. Continue reading

Bipartisan coalition urges expiration of taxpayer subsidies for wind energy in 2013

November 25, 2013

WASHINGTONU.S. Representative Richard Hanna joined a bipartisan group of 52 House members in calling on Ways and Means Committee Chairman Dave Camp to allow the wind production tax credit (PTC) to expire at the end of 2013 as scheduled under current law.

Since its establishment in 1992, the tax subsidy for wind energy production has grown in both eligibility and cost. Today, the PTC subsidizes wind energy production at a rate of 2.3 cents per kilowatt. According to the Joint Committee on Taxation, a one-year extension of the tax credit would cost $6 billion and a five-year extension would cost more than $18 billion.  Continue reading

Local Wind Subsidies: New York State’s Money-Road to Nowhere

Special political favor at the local, state, and federal levels have created an artificial industry: industrial windpower. Massive turbines have resulted in negative ecological and economic effects. Rural towns and countryside across the USA have become the dumping grounds for massive infrastructure producing a paltry amount of remote, unreliable energy.

For many enjoying rural life, in particular, an invasion by industrial wind installations has turned environmentalism on its head.

New York State has more than its share of such malinvestment and damage. State Comptroller Thomas DiNapoli recently reported that tax exemptions by NYS’s Industrial Development Agencies (IDAs) were not creating jobs and were “shifting tax burdens” from mega-corporations to local residents.

Click here to read the entire article.
The article is from “MasterResource” – a blog dedicated to analysis and commentary about energy markets and public policy.

Why We Need to Terminate Big Wind Subsidies

by Paul Driessen, from Townhall Magazine, May 8, 2012

Unprecedented! As bills to extend seemingly perpetual wind energy subsidies were again introduced by industry lobbyists late last year, taxpayers finally decided they’d had enough.

Informed and inspired by a loose but growing national coalition of groups opposed to more giveaways with no scientifically proven net benefits, thousands of citizens called their senators and representatives – and rounded up enough Nay votes to run four different bills aground. For once, democracy worked.

A shocked American Wind Energy Association and its allies began even more aggressive recruiting of well-connected Democrat and Republican political operatives and cosponsors – and introducing more proposals like HR 3307 to extend the Production Tax Credit (PTC). Parallel efforts were launched in state legislatures, to maintain mandates, subsidies, feed-in tariffs, renewable energy credits, and other “temporary” ratepayer and taxpayer obligations.

This “emerging industry” is “vitally important” to our energy future, supporters insisted. It provides “clean energy” and “over 37,000” jobs that “states can’t afford to lose.” It helps prevent global warming.

None of these sales pitches holds up under objective scrutiny, and their growing awareness of this basic reality has finally made many in Congress inclined to eliminate this wasteful spending on wind power.

Entitlement advocates are petrified at that possibility. Crony corporatist lobbyists and politicians have built a small army to take on beleaguered taxpayers, rate payers and business owners who say America can no longer afford to spend more borrowed money, to prop up energy policies that drive up electricity costs, damage the environment, and primarily benefit foreign conglomerates and a privileged few.

Click here to read the entire article.

Please write to urge Ways & Means to end the Production Tax Credit

On April 26 the U.S. House Subcommittee on Select Revenue Measures (Committee on Ways & Means) held a hearing related to certain tax provisions that either expired in 2011 or will expire in 2012 (also known as “tax extenders”).

Any individual or organization may submit a written statement, however brief, by the close of business on Thursday, May 10, 2012, for consideration by the Committee and for inclusion in the printed record of the hearing.

Please write urging them to END the Production Tax Credit, the Investment Tax Credit, and any other federal support of industrial wind energy. Without the tax credit, the market for wind power generation will grind to a halt.

To submit a submission for the record please follow the instructions below. If instructions are not followed correctly or pertinent information is not included, the Committee reserves the right to refuse the submission.

Continue reading

Can wind power hold its own in the marketplace, without special tax treatment?

Here’s a good article from the Institute for Energy Research.
Assessing the Production Tax Credit

The article is not very long, be sure you read all the way to the conclusion.