Legislation has been introduced into the US House of Representatives that would extend production tax credits for wind energy by five years.
The Growing Renewable Energy and Efficiency Now (Green) Act – introduced by Democrat Congressmen Mike Thompson and Richard Neal, and was sponsored by a further 46 Democrat members of Congress.
Under the proposals, the PTC for wind would be preserved at the current phaseout levels for 2019 and 2020 (60% and 40%, respectively), and then extended at 60% through the end of 2025.
Currently the PTC scheme is due to expire at the end of this year.
An investment tax credit (ITC) for solar energy would also be extended at 30% to 2025, and then 26% in 2026, 22% in 2027 and 10% after that.
The Green Act would also provide new credits for investments in energy storage, biogas and waste-to-heat power.
It also encourages residential investments in green energy and energy efficiency, expands incentives for energy efficiency and conservation in homes and buildings with updated standards and supports widespread adoption of zero-emission cars, vans, and buses through tax credits for purchasing vehicles.
Thompson said: “This bill uses our tax code to expand the deployment of renewable energy by extending and expanding the federal tax incentives to promote clean energy technologies and supports widespread deployment of zero-emissions vehicles.
“All this is an investment in creating new efficiency and emissions models to reduce our carbon footprint.
“And it’s a down payment on our work to tackle climate change and pass on a better world to our children and grandchildren.”
American Wind Energy Association chief executive Tom Kiernan said: “Thank you, chairman Thompson and chairman Neal, for recognising the key role that wind and other domestic renewable energy industries play in economic development, especially during these challenging times for our country’s economy.
“Federal incentives for renewable energy sources have proven their value, helping our country usher in millions of dollars in economic investments and reach over 120,000 jobs in the onshore wind industry alone.
“This legislation continues these successful policies and helps unlock the full economic and environmental potential of the American wind industry.
“Timing is crucial here to provide needed support for the wind industry as we work to overcome the significant challenges caused by Covid-19.
“Providing direct payment for the tax credits is especially important in helping the industry mitigate these difficulties.
“With quick action, the onshore wind industry looks to build on its 50-state footprint of job creation and economic development and the offshore wind industry stands ready to deliver another 83,000 jobs and $25bn of annual economic output within the next decade.
“We look forward to working with chairman Thompson, chairman Neal, and the House in passing this important legislation.”