Wind-power owners, developers and suppliers are preparing to soar under a new round of federal incentives. The news had 23,200 visitors—78% more than last year—blowing into the world’s largest conference on wind-generated electricity. On tap was February’s passage of the American Recovery and Reinvestment Act, which boosts production tax credits (PTCs) to reduce owners’ tax burden for the first 10 years of operation. Wind PTCs are extended two years, through Dec. 31, 2012. Developers also can claim an alternate investment tax credit (ITC) or Treasury Dept. grant to recoup 30% in the first year.
ITCs attempt to free up cash in a time of tight credit. “The value of the ITC or grant becomes more profitable than the PTC for wind projects with lower capacity costs or higher capital costs,” said Joshua Magee of Emerging Energy Research at WINDPOWER 2009, held May 4-7 in Chicago. As a result, President Obama’s ARRA package promises to increase wind-power installations after 2009, assuming that liquidity bounces back, Magee added.