modification of the u.s tax code. topic the us tax code should be modified. federal tax credit of...
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Modification of the U.S Tax Code
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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.
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Background
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Wind Tax Credit Act
Production Tax Credit
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History
Enacted in 1992Renewed 6 timesWas set to expire in 2012
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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.
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Extensions
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CostsCurrent Costs.
Estimated Returns per Annum.
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Current Status
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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.
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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.
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Assumptions
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Key Factors Affecting the Decision Process
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ReferencesTaxation and Revenue Department,