The American Wind Energy Association predicts Investment in wind energy will drop by nearly two-thirds if Congress fails to extend a key tax credit that’s set to expire at year’s end.
The PTC provides an income tax credit of 2.2 cents per kilowatt-hour for electricity produced from wind turbines. Congress first enacted the credit in 1992 and has renewed it four times over the years. But lawmakers have also allowed it to expire three times before.
Wyoming wind producers are not just dealing with the potential expiration of the PTC. Developers must also contend with a lack of transmission capacity and out-of-state customers.
If Congress allows the tax credit to expire, solar energy projects would have the inside track for supplying renewable power to big market states like California that have renewable energy standards. Roxane Perruso, vice president of Power Co. of Wyoming’s 1,000-turbine Chokecherry and Sierra Madre Wind Energy Project that’s planned for Carbon County, said as much when he spoke with the Star Tribune.
Some industry watchers believe an entension to the tax credit will eventually happen, but that it again will likely be a short time deal.