- The federal production tax credit (PTC) for renewable projects ended January 1 without any prospect for a near-term extension.
- Developers aren't clamoring for an immediate extension because of a change that was made to the PTC a year ago: instead of being in operation by the deadline, a developer needs to have started building the project.
- The federal system for providing incentives to renewable energy may be changed as part of a broader overhaul of the tax system.
The PTC is especially important to wind developers, lowering the cost of wind generation by $23/MWh for the first ten years of a wind farm's life. However, developers have signed contracts for scores of projects and will be busy for the next two years completing those wind farms so they do not feel a pressing urgency to extend the credit.