![]() 301) in December 2015 and the Bipartisan Budget Act of 2018 (H.R. The PTC has been renewed numerous times, most recently by the Consolidated Appropriations Act of 2016 (H.R. In 1992, Congress passed The Energy Policy Act that established the Production Tax Credit (PTC) for wind energy, providing a tax credit of 2.3 cents per kilowatt hour of wind energy produced for the next 10 years of the facility’s operation. The history of federal wind tax credits goes back more than 25 years. Making more expensive energy choices directly affects household budgets and our international competitiveness. It is time for Congress to pay attention to consumers’ pocketbooks and rethink tax credit extensions for these industries. While fossil fuel prices have been declining and electricity demand has been relatively flat, electricity prices have increased by 56 percent between 20, with the largest increases coming from many of the states that promoted the establishment of wind and solar energy through state subsidies and mandates for their production. Not only are taxpayers subsidizing these industries, but American consumers are also paying more for electricity. Treasury estimates that the Production Tax Credit will cost taxpayers $40.12 billion from 2018 to 2027, making it the most expensive energy subsidy under current tax law. The Production Tax Credit for wind and the Investment Tax Credit for solar are federal incentives that are paid for by the American taxpayer. ![]() Despite the fact that wind and solar energy now provide 8 percent of the country’s electricity, the 116th Congress is again looking to extend their tax credits. If wind and solar truly make sense, the free market will support them without the need for subsidies and mandates.įor decades, Congress has provided lucrative federal tax subsidies to the wind and solar industries in order to establish those industries in the United States.Countries like Germany, Great Britain and Spain have invested in wind and solar power only to have higher residential electricity prices than the United States.the costs of maintaining backup electricity 24/7 to compensate for wind and solar’s intermittency) are not included in estimations of the cost of wind and solar power, leading to gross underestimation of the costs of these energy sources. These tax credits fundamentally distort markets and strain the grid in ways that are economically unsustainable.
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