Federal Production Tax Credit for Wind Energy
|Nearly 500 facilities manufacture for the wind energy industry|
America needs a secure and diverse supply of homegrown energy resources to power the nation. We also need to put more people back to work. Wind energy delivers in both of these areas.
The federal Production Tax Credit (PTC) is an effective tool to keep electricity rates low and encourage development of proven renewable energy projects. Equipped with the PTC, the wind industry has been able to lower the cost of wind power by more than 90%, provide power to the equivalent of over 12 million American homes, and foster economic development in all 50 states.
The PTC is set to expire at the end of 2012, and it is crucial that it be extended immediately. Failure to extend the PTC will lead to significant job losses and roll back progress that we have made as a nation to diversify the U.S. electricity portfolio.
THE PTC FOSTERS ECONOMIC SECURITY
A vote for a PTC extension is a vote for creating American jobs and investing in proven clean energy technology.
- With the support of the PTC, the U.S. wind energy industry has achieved impressive numbers:
- Nearly 500 facilities across 44 states manufacture for the wind energy industry.
- 60% of a wind turbine’s value is now produced here in America, compared to 25% prior to 2005.
- Over 90% drop in the price of wind power since 1980, benefiting utilities and consumers.
- Average annual private investment of $15 billion over the past five years.
- With the threat of the PTC’s expiration, wind project developers are not making plans in the U.S. and American manufacturers are not receiving orders. Job layoffs have started already. The wind industry is facing the recurrence of the boom-bust cycle it has seen in previous years when the PTC was allowed to expire. In the years following expiration, installations dropped between 73 and 93%, with corresponding job losses.
THE PTC FOSTERS ENERGY DIVERSITY
|Historic impact of PTC expiration
on annual wind installation
A vote for a PTC extension is a vote for growing clean, homegrown, affordable energy resources.
- The PTC drives energy diversity by allowing developers to secure private financing for wind projects and bring them to completion. If wind energy is to be part of America’s energy mix, we must extend the PTC.
- With the PTC’s financing support, and wind power’s free supply of fuel, utilities and consumers see that wind power guarantees long-term stable electricity prices and are choosing to grow wind power in their electricity portfolios. In fact, wind provided 35% of all new U.S. power capacity in the last five years.
- The U.S. generated 2.9% of its electricity from clean wind energy in 2011. In Iowa and South Dakota, wind now generates around 20% of the states’ electricity needs. The U.S. is capable of growing to this level by 2030, generating 20% of our electricity from wind power on a national scale and providing 500,000 American jobs in wind energy.
Clean, affordable, homegrown American wind power is powering the U.S. economy with jobs and investment, and promoting the security and diversity of our energy supply.
Now is not the time to raise taxes on domestic renewable energy that makes America stronger.
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