Wally Lafferty and Paul Dvorak Editor’s note: Mr. Lafferty and I published an earlier version of this editorial in the April issue of Windpower Engineering & Development. We now have the benefit of a more thorough financial review which is reflected in the dollar values here. Critics of the Production Tax Credit cite a report…
Estimating the turbines not built, jobs not created, taxes not paid
By any standard, the Production Tax Credit (PTC) was a great success. It lowered the tax rate for developers that encouraged a boom in wind-farm construction. Although the PTC expired in 2014, construction begun that year could still claim the credit. Activity was vigorous. AWEA says 12,700 MW were under construction last year. Better yet,…
Where is the estimate of foregone tax revenue which should have come from wind farms that have NOT been built due to expiration of the PTC?
This article is authored by Wally Lafferty. Critics of the PTC cite a report from the Congressional Joint Committee on Taxation that asserts there is a direct cost to the taxpayer of $13.8 billion over five years due to the wind tax credit. What most people don’t know is that this estimate was calculated — according…