Federal tax credits for renewable energy production is set to expire December 31, leaving some wind power project developers concerned. The credit pays 2.3 cents per kWh of electricity generated by wind.
Only projects that are completed are able to qualify for the credit. However, when Congress extended the program in 2012, they allowed projects to qualify for the program as long as it was in construction, or a minimum of 5 percent of its total cost was invested before the end of the year.
The extension was part of a deal to avoid a federal credit default (also called “the fiscal cliff.”
Advocacy groups hope to keep the incentives intact, while opponents argue that the break burdens taxpayers.