PRODUCTION TAX CREDIT EXTENSION

Description: Under present law, an income tax credit of 1.5 cents/kilowatt-hour (adjusted annually for inflation since 1992) is allowed for the production of electricity from qualified wind energy facilities and other sources of renewable energy. The current value of the credit is 1.9 cents/kilowatt-hour of electricity produced. The credit was created under the Energy Policy Act of 1992 and applies to electricity produced by a qualified wind facility placed in service after December 31, 1992, and before January 1, 2008. The tax credit is useful only for utility-scale wind turbines, not smaller turbines used to power individual homes or businesses.

Current Status: On August 8, 2005, President George W. Bush signed into law a 2-year extension of the vital wind energy Production Tax Credit (PTC) through December 31, 2007. The extension was contained in the tax section of broad-ranging energy policy legislation (H.R. 6, or Public Law # 109-58).

 However, another extension is needed in order to allow the wind industry to move steadily forward without an every-other-year period of painful job cuts and stalled production brought on by delays in extending the credit. Long-term extensions of the PTC are vital to the continued growth of electricity from wind and we're asking you to help us convince Congress to extend the Production Tax Credit until December 31, 2010

Dear [ Decision Maker ] ,

I am a concerned constituent writing to request that you cosponsor S. 2401, the Alternative Energy Extender Act, sponsored by Senator Grassley. The bill would extend the Production Tax Credit (PTC), which provides a 1.9 cent-per-kilowatt-hour tax credit for electricity generated from wind turbines and other renewable energy sources, for an additional three years through December 31, 2010.

The wind industry appreciates the recently passed 2-year extension, which has allowed projects to move forward. However, with the PTC set to expire on December 31, 2007 the industry faces a short window of opportunity for strategic planning.

The additional 3-year extension proposed in S. 2401 would provide the industry more certainty and stability, ensuring steady growth. A long-term PTC commitment will also help drive down the cost of wind energy by stabilizing the supply chain, therefore driving down material costs.

The continued development of wind energy helps diversify America's electricity markets, reduces our reliance on imported energy thereby improving national security, and spurs rural economic development.

Thank you for considering my request that you cosponsor S. 2401.

Sincerely,

Campaign Launched:
July 21, 2006