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Renewable Energy Tax Credit News Briefs – September 2018

The American Wind Energy Association (AWEA) announced July 26 that its second quarter results show a record amount of wind capacity is under construction at wind farms throughout the country. AWEA’s U.S. Wind Industry Second Quarter 2018 Market Report states that U.S. wind farms have surpassed 90 gigawatts, with the near-term U.S. wind-farm development pipeline growing 13 percent over the previous quarter. The wind energy production tax credit sunsets in 2019.

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Hawaii Senate Bill 3077 was effective July 5. The bill expands the renewable fuel tax credit cap by lowering the production threshold. The credit period now begins in the first taxable year in which a taxpayer begins renewable fuels production of at least 2.5 billion British thermal units (BTUs) per calendar year. Previously, the period began when a taxpayer began production of at least 15 billion BTUs of renewable fuels per calendar year. The bill is applicable to tax years beginning after Dec. 31, 2017. 

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The Solar Energy Industries Association July 25 recognized and praised the newly introduced H.R. 6538. The bill authorizes certain long-term contracts for federal purchases of energy. The General Services Administration is now allowed to enter into 30-year renewable energy power purchase agreements. Under current law, only the U.S. military can enter into power purchase agreements for longer than 10 years. 

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A report by Environment America Research and Policy Center released in July, “Renewables on the Rise 2018: A Decade of Progress Toward a Clean Energy Future,” states that the past decade has seen explosive growth in the key technologies needed to power America with clean, renewable energy. Environment America also found that state and federal policies, including the federal investment tax credit and PTC, have helped enable the dramatic rise of wind and solar power. From 2008 through 2017, there was a 39-fold growth in annual solar generation, representing an increase of 75,123 gigawatt hours, this according to the report. In addition, Environment America found that if renewable energy generation grows by 14 percent per year, slightly more than two-thirds of the current rate of growth, wind and solar alone will produce enough electricity to meet all of the nation’s current electricity needs by 2035.

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EDP Renewables, SA, through its fully owned subsidiary EDP Renewables North America LLC, announced Aug. 2 the planned construction of Headwaters II Wind Farm in Randolph County, Ind. These wind turbines will be part of a $300 million wind farm that will qualify for the PTC. This 139-megawatt (MW), 15-year PPA with Facebook to power its data center. Headwaters II Wind Farm, which is expected to be operational in 2020, will produce enough clean electricity to power the equivalent of more than 52,000 homes each year. EDP Renewables currently operates 801 MW of wind energy projects in Indiana. 

Journal Category:

Renewable Energy Tax Credits

Authors:

Novogradac

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