Sen. Rand Paul Calls for Shortened PTC Phase Out
A letter from Sen. Rand Paul, R-Ky., to Treasury Secretary Steven Mnuchin dated May 8 calls for Treasury to withdraw the 2016 continuity safe harbor for the wind production tax credit (PTC) and return it to the 2013 two-year window. The letter also calls for the withdrawal of current Internal Revenue Service (IRS) guidance that allows taxpayers to purchase wind turbines in a PTC-eligible year, then transfer them to a new project in a different year and still qualify for the PTC that was available in the original purchase year. The letter asks that wind energy be prohibited from qualifying for the PTC if it is sold onto the market at a negative value. Paul also recommends updating the definition of “physical work of a significant nature” under the beginning-of-construction requirement, requiring continuous construction and updating the list of acceptable delays to beginning construction.