modification of the u.s tax code. topic the us tax code should be modified. federal tax credit of...

Modification of the U.S Tax Code

TopicThe US tax code should be modified.

Federal tax credit of $10/MWH (MegaWatt-hour ) of wind energy production.

The tax credit begins the first year of generation and extends for a total of ten years.

Background

Wind Tax Credit Act

Production Tax Credit

History

Enacted in 1992Renewed 6 timesWas set to expire in 2012

PurposeDesigned to promote wind power as an overall strategy

to increase renewable energy in the United States.

The mission of the Energy Department is to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.

Wind is a valuable renewable energy source. Limitations like cost and space needed to build make it hard for some wind turbine projects to get off the ground. Hopefully, advancements can be made so that there is a way to store the energy that is produced via wind turbines in the future.

Extensions

CostsCurrent Costs.

Estimated Returns per Annum.

Current Status

 Supportive Engineering and Scientific Studies

Allows wind power to be competitive with other sources of energy.

New technological developments allow wind energy to be stored to help control energy fluctuations do to inconsistency of the wind.

New turbine technology.

Ethanol energy is an example of an energy source that relied on PTC and is now able to stand on its own.

Non-supportive engineering and scientific studies

Wind power industry does not need help of federal government. The Renewable Portfolio Standard has been the main factor

associated with increase in wind power. The Renewable Portfolio Standard (PRS) mandates a certain

amount of energy from states come from renewable resources by a certain date.

Wind is an unreliable source of energy. Wind energy cannot compete with other sources of energy. Ie.

Coal, natural gas, and hydroelectric power. The PTC creates perverse incentives for companies to develop

wind energy where it is not need and sell it at a loss because they know they can make more money from the tax credit.

Assumptions

Key Factors Affecting the Decision Process

ReferencesTaxation and Revenue Department,