Wind Power Poised for Record Year, Despite Initial Tax Law Concerns

• The number of contracts signed for wind power projects hit a record of 3,500 MW in Q1 2018, according to the American Wind Energy Association, signaling that 2018 should be a strong year for the renewable resource.
• There are now 33,449 MW of wind projects under construction or in advanced development in the U.S., a 40% increase from last year and the highest level since AWEA began compiling the metric at the beginning of 2016.
• Despite fears that changes in the tax code would slow wind power development, the tax equity market, the key financing vehicle for wind projects, appears to have adapted and survived intact.

Congress Passes Tax Credits for Solar and Wind: ‘Sausage-Making at Its Most Intense’

The biggest federal policy development of the year for renewables plays out on Congress’ last day of work in 2015.

 

Lawmakers in the House and Senate passed a spending package today that includes multi-year extensions of solar and wind tax credits, plus one-year extensions for a range of other renewable energy technologies.

The pair of bills, which included tax extenders and $1.1 trillion in funding to keep the government running for the next year, passed hours before lawmakers adjourned for the holidays.

Congress Is on the Verge of Passing Multi-Year Extensions for Solar and Wind Tax Credits

Lawmakers reached a compromise as part of a spending package. Will there be enough votes to pass it this week?

 House Republicans unveiled legislation late Tuesday night that included multi-year extensions of tax credits for solar and wind. 

The credit extensions were attached to a broad set of spending measures as part of a negotiation with Democrats over lifting the ban on exports of U.S. crude oil.

Legislative Developments on Federal Renewable Energy Tax Credits

Now that a government shutdown was temporarily averted, both chambers face significant legislative challenges. Among the legislative challenges are several bills that need action before pending expiration dates. One bill that must be addressed is a tax extenders bill, which may impact the renewable energy industry.

Over 2,000 Organizations Call On US Government To Extend Tax Provisions, Including PTC

More than 2,000 organizations signed a letter last week calling on the US Government to extend a variety of expired and expiring tax provisions, including the vaunted PTC.

The Production Tax Credit has been integral to the growth of the US wind industry, and as the American Wind Energy Association (AWEA) notes, “is a big reason” why the US wind industry is the “most productive in the world with enough wind energy produced annually for 18 million American homes.” In its annual US Wind Industry Annual Market Report for 2014,the AWEA reported on the value of the PTC, where in states like Iowa it helped wind energy attract $10 billion in cumulative investment to support 6,000 jobs.

IRS Unveils Favorable PTC Guidance On 'Start Of Construction'

On Wednesday, the Internal Revenue Service (IRS) published Notice 2015-25, which provides guidance the wind power industry has been waiting for since the extension of the production tax credit (PTC) in December.

Notice 2015-25 provides that any wind power project (or other PTC-eligible project) that started construction prior to 2015 has until the end of 2016 to be placed in service so as to avoid the application of either the "continuous construction" or the "continuous work" standards promulgated by the IRS in Notice 2013-29.2.