The American Wind Energy Association (AWEA) responded to a critical report on the federal production tax credit (PTC) by the Institute for Energy Research (IER) by saying that the PTC “more than pays for itself” through carbon-free power and economic development.
The IER issued a report Dec. 2 saying that while some states get a net financial benefit from the PTC, others are net payers. IER estimated that 30 states and the District of Columbia paid more to the federal government in 2012 to support wind subsidies than wind producers in those states received.
AWEA responded in a Dec. 3 “fact check” blog by saying that the “fossil-fuel funded” IER was spreading “misinformation” about wind energy.
AWEA said that the PTC “is far smaller than the cumulative incentives provided to other energy sources, and has been so successful at driving private investment that it more than pays for itself by creating additional tax revenue.”
AWEA said that wind power has generated $25bn in private investment, paying handsomely to landowners and private communities. Every state in the union, including 70% of U.S. congressional districts, has an operating wind project, manufacturing plant, or wind-related jobs, AWEA said.
A congressional deal in January 2013 extended the PTC and stipulated that projects that begin “construction” – as defined by the Internal Revenue Service – by the end of 2013 will still be eligible.
The trade group also said that tax incentives for the energy sector are nothing new, dating back to 1913. A copy of the AWEA blog can be found at: http://aweablog.org/blog/post/fact-check-ier-finds-it-hard-to-kick-habit-of-attacking-wind-power