The PTC, which had expired December 31, 2003, will be extended retroactively from that date to December 31, 2005. AWEA also continues to support a longer-term extension (to December 31, 2006) now included in the corporate tax/JOBS (Jumpstart Our Business Strength) bill (H.R. 4520) still pending before Congress. The JOBS bill also calls for creation of a new tax credit to encourage the use of small wind systems for homes, farms and small businesses.
The delay in extending the PTC came following a banner year for the U.S. wind industry, in which it installed a near-record 1,687 megawatts (MW) of generating capacity — enough to serve nearly half a million average American homes. This year, a sharp drop in new installations is expected due to the absence of the incentive for nine months.
Since beginning the PTC extension effort, AWEA and its allies have achieved a number of milestones, including:
• Attracting 76 sponsors to the original stand-alone House PTC bill (H.R. 570, by Rep. Mark Foley, R-FL), including numerous members of the tax-writing House Ways and Means Committee.
• Gaining 15 sponsors on the original stand-alone Senate PTC bill (S. 395, by Sen. Chuck Grassley, R-IA), including numerous members of the tax-writing Senate Finance Committee.
• Gaining support from the Bush Administration through inclusion of a PTC extension proposal in the last three budget proposals and the Bush-Cheney energy plan.
