Tax Cut Extension Helps Wind Developers
Most of the focus of the extension of the Bush era tax-cuts centered on tax benefits for wealthy and middle-class Americans. However, one industry is also set to benefit from the compromise deal reached by Democrats and Republicans last week.According to the American Wind Energy Association, the 1603 investment tax credit to develop renewable energy also received an extension–a one-year extension for projects such as the construction of wind energy projects.
Denise Bode, CEO of the American Wind Energy Association said, “This is a great holiday present for the 85,000 American workers in the wind energy industry, tens of thousands of whom will now be able to get back to work in a sector that has been a bright spot in the recession so far. Orders will be on the rise for new wind power, and investors will put more capital into the U.S. economy because of what happened in Congress.”
In New York State the extension couldn’t come at a better time. Horizon Wind Energy, the largest wind developer in the state has three major wind projects, (Maple Ridge Wind Farm I and II and Madison Wind Farm) that have already been constructed with plans for more projects in the works. Another company, Northwind and Power is also looking to construct wind turbines in the Town of Litchfield, NY however, according to Patrick Doyle, President and CEO, the project may not get off the ground soon enough to benefit from the extension of the 1603 investment tax credit.
New York State Energy Research and Development Authority, (NYSERDA) recently launched their own green initiative that will provide up to 30% of funding to help New Yorkers install small-scale wind turbines. And according to NYSERDA, a partnership formed with Clinton Community College and Hudson Valley Community College implemented the Nacelle Turbine Troubleshooting Learning system to support a wind energy training program and even unveiled two, 5-kilowatt wind turbines at HVCC’s TEC-SMART facility in Malta, NY. All in the name of investing in green energy.
It’s evident that the Obama Administration’s campaign promise to aggressively invest in renewable energy is baring fruit with the one year extension of the 1603 investment tax credit. Also, the invitation of Denise Bode, CEO of AWEA to attend the signing of the bill at the White House only bolsters the Administration’s intent to keep its promise to reduce our dependence on oil.