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US 'reneges' on tax deal

AWEA slams proposed legislation that would scrap PTC

US 'reneges' on tax deal image

A tax Bill proposed by the US House of Representatives contains provisions that threaten the wind sector, said the AWEA.

The proposed legislation would strip away the Production Tax Credit rather than allowing for the gradual phase-out agreed just two years ago, the trade body added.

"The proposal puts at risk over $50bn in planned investment supporting manufacturing, rural jobs and homegrown energy growth," added AWEA. 

Congress passed a bipartisan five-year extension and phase out of the PTC in 2015 which is proceeding on an 80%-60%-40% schedule that winds up after 2019.

The new Bill changes the terms of PTC qualification defining start of construction, according to the AWEA.

"Investors who put billions of dollars into factory orders and construction contracts cannot go back in time to meet the revised requirements," it said.

"The House tax proposal would also terminate an inflation adjustment, cutting the value of the credit by half or more."

Image: US Government

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