Renewable Energy Tax Credit News Briefs – October 2019

Monday, October 7, 2019

Two members of the House of Representatives introduced legislation Aug. 13 to extend the production tax credit (PTC) for some renewable energy technologies for which the credit expired in 2017. The types of facilities that would benefit from the extension are closed and open-loop biomass, geothermal, municipal solid waste, qualified hydropower facilities, and marine and hydrokinetic facilities. The bill will also provide these technologies the ability to take the investment tax credit. They would have to begin construction by Jan. 1, 2025, to be eligible under the bill. 

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The U.S. Department of Energy’s 2018 Wind Technologies Market Report reported that wind capacity additions continued increase through 2018 and the projections for 2019 and 2020 show that wind turbine development should continue to be just as active due in part to the PTC’s looming phasedown. The report says wind power should continue to thrive in 2021, even with the 20 percent decline in PTC. However, future growth of the industry could be blunted by a steady decline in federal tax support, limitations in transmission infrastructure in some areas and a growth in electricity demand, according to the report. 

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