House, Senate To Face Off Over Wind Support
U.S. House Tax Bill Bad for Wind Energy; Renewable projects fare better under the Senate’s tax reform measure.
Sonia Smith, November 17, 2017 (Texas Monthly)
“Abundant wind, a self-contained electrical grid, and renewable friendly subsidies led Texas to become the national leader in wind energy…[Wind turbines have replaced pump jacks on the state’s landscape. Its installed] wind capacity has more than doubled in the last seven years, to 21,450 megawatts…[But] the U.S. House approved a bill provision that would retroactively cut the production tax credit (PTC) for wind, geothermal, and “closed-loop” biofuel facilities]. Critics say these changes, if they make it into law, will chill growth in the [industries] and derail billions of dollars worth of planned projects…[The renewable energy PTC provides a 2.3-cent per kilowatt hour tax incentive for the first ten years’ output of renewable plants that broke ground in 2015 and 2016. Under a] 2015 phaseout deal, projects breaking ground this year receive 80 percent of the credit, while those starting construction in 2018 and 2019 would get 60 percent and 40 percent respectively…[The House plan cuts the 2.3-cent-per-kilowatt-hour tax credit to 1.5 cents and retroactively changes eligibility. Provisions in the Senate version of the bill protect the PTC. The differences will force a showdown before the bill can be sent to the president]…” click here for more