PTC renewed: Wind gets a multi-billion handout in ‘fiscal cliff’ deal

Part of the ‘fiscal cliff’ deal just negotiated by the President and House Republicans includes continuing the multi-billion handouts to the US wind industry.

As we had noted in previous posts, and presentations, the wind industry had threatened that,

without the existence of a $0.02/kWh tax credit/safety net for wind energy, the industry immediately goes into a tailspin, threatening to lay off more than 37,000 employees across the country, and stopping the development of almost 14,000 MW of planned wind projects.

As this editorial notes, the renewed PTC has massive costs associated with it.

According to the Congressional Budget Office, extensions of energy tax benefits will cost more than $10.3 billion over five years and more than $18.1 billion over ten years. The Joint Committee on Taxation reported that a one-year extension of the wind PTC alone would cost $12.1 billion.

So while the war on coal – and the affordable, abundant, secure, clean, domestic energy it provides – continues unabated, the federal government has committed to continue funneling billions of tax dollars toward the goal of making the wind industry “competitive.”

03. January 2013 by Jason Hayes
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