The Window For Wyoming’s Wind Industry
November 3, 2017 | Cooper McKim | Inside Energy
“We need to have these projects in the ground and fully operational by the end of 2020 to qualify for the production tax credit so that is the driver of doing these projects now,” she says.
The production tax credit, or PTC, is a federal subsidy that provides a couple cents for each kilowatt/hour of wind energy produced. Though it began in 1992, the U.S. Congress renewed a five-year phase-down plan with bipartisan support for the PTC at the end of 2015. It was a part of a spending bill to keep the government from shutting down.
The benefit applies to any wind project started before the end of 2019, though there are ways for projects to qualify for the PTC up to the end of 2020. The tax credit is then counted for ten years after the facility begins service. Meyer said the PTC makes projects like Rocky Mountain Power’s economically viable and it’s not just her company that’s taking advantage.
“I think we’re seeing a real spurt now in activity because of the production tax credit and the idea that it will probably drop off after this final push,” Meyer says.
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