Wind Tax Credits Needed in the USA
September 20, 2012 Taxation in USA
WASHINGTON D.C. – The US government needs to extend the tax credits available to wind power producers, according to several prominent American companies such as Starbucks and Levi Strauss.
In a letter to the US Congress dated September 18th, 19 large companies from the USA called for extension to the currently available Production Tax Credit (PTC) for the generation of electricity from wind power.
The PTC, which is set to expire at the end of 2012, grants a tax credit of up to 2.2 cents per kilowatt-hour of energy generated from renewable wind sources.
The signatories to the letter claim that not extending the tax credit would not only effect the wind-power industry, but would also have adverse effects on American businesses, as the credit reduces the marginal costs for all American companies which choose to purchase electricity produced from renewable sources.
In the letter the companies explained the benefits of wind power, saying “… because wind prices can be locked in up front,businesses incorporating wind into their energy portfolios are better equipped to hedge market volatility in traditional fuels markets caused by supply shocks.”
Currently wind power accounts for approximately 3 percent of all electricity produced in the USA, and the wind power industry currently employes over 75 000 people.
Photo by Sony200boy