wind energy that would be saved by the production tax creditAfter seeing the Production Tax Credit (PTC) extended through 2013 in the recent “fiscal cliff” legislation, the wind industry is now looking ahead to the tax reform debate. According to E&E Publishing several industry lobbyists are preparing for a renewed push for a longer-term extension of the PTC that would phase out over time.

Based on industry analysis of the impact of the PTC, the American Wind Energy Association proposed a six-year tax credit phaseout, which specifies that “The tax credit would start at 100% of the current 2.2 cents a kilowatt-hour for projects started in 2013, and be phased down to 90% of that value for projects placed in service in 2014; 80% in 2015; 70% in 2016; and 60% in both 2017 and 2018, ending after that.”

However, some members of Congress, such as Rep. Dave Reichert (R-Wash), aren’t optimistic about further extending the PTC. Congressman Reichert told E&E Publishing, “I don’t think there will be another attempt” to renew the credit.

How vital is the Production Tax Credit to the wind industry? What’s your take on the AWEA’s proposed six-year tax credit phaseout?