US congressional leaders have agreed to a five-year extension of renewable energy incentives in a last-minute push to pass a $1.1 trillion government spending and tax package.
Democrats said they’ll end a 40-year ban on crude oil exports in exchange for Republican support for wind and solar power tax credits, among other concessions.
The bills were revealed overnight and the House and Senate are expected to consider the legislation this week and possibly into next week.
The $650bn tax bill renews around 50 business and individual tax breaks that have expired or are about to lapse, including a five-year extension for production and investment tax credits.
The PTC pays 2.3 cents/kWh during the first 10 years of wind farm operation and the ITC is worth up to 30% of the costs of developing and building wind projects.
After the renewable energy incentives were allowed to briefly expire in 2013, installations of new wind farms fell 92%. The tax breaks were reinstated in 2014.
Wind development has attracted more than $100bn in private investment to the US economy since 2008, said the American Wind Energy Association. The federal tax credits have helped the industry to lower costs by more than 50% in the last five years.
Image: (US Congress)
US agrees energy incentives
Congress agrees to extend wind and solar tax credits as part of larger package
By EBS