Wind generators are receiving tax advantages that are causing an uneven playing field in the energy market, according to U.S. Sen. Shelley Moore Capito (R-WV) and eight of her Republican colleagues.
“The wind production tax incentive was originally intended by Congress to support a technology that was too expensive in its early stages. It was supposed to be temporary in order to level the playing field with other power generators,” wrote the senators in a July 21 letter sent to U.S. Senate Finance Committee Chairman Chuck Grassley (R-IA).
“However, over time, the reverse has occurred,” they wrote. “These tax provisions have become a competitive advantage to wind generators.”
Sen. Capito and her colleagues noted that the wind production tax credit (PTC) for producing electricity from wind will not be available for facilities that begin construction after the end of this year.
“We believe it is appropriate for the credit to expire as scheduled,” they wrote.
Specifically, a project may claim the wind PTC for the first 10 years of operation. The PTC was enacted in 1992 and scheduled to expire on July 1, 1999, and since then has been extended 12 times. Most recently, the wind PTC was extended for one year as part of the December 2019 appropriations package, according to Sen. Capito’s office.
“The wind industry is now mature and does not need more taxpayer subsidies. This would only exacerbate the distortive effect of wind on electricity markets,” according to the senators’ letter. “Some parties continue to seek a further extension of the wind credit, possibly when Congress considers extensions of expiring tax provisions or through the appropriations process. We oppose any such wind credit extension.”
Among the members who joined Sen. Capito in signing the letter was U.S. Sen. John Hoeven (R-ND).