Created under the Energy Policy Act of 1992, the Production Tax Credit (PTC) provides a per-kilowatt-hour tax credit for electricity generated by qualified energy resources. The American Recovery and Reinvestment Act of 2009 allows taxpayers eligible for the federal renewable electricity production tax credit (PTC) to instead select one of the following options:
- A federal business energy investment tax (ITC) credit generally equal to 30% of eligible costs.
- A grant from the U.S. Treasury Department equal to the value of the ITC.
The table below outlines the tax credit in-service deadline and credit amount as they apply to different facilities.
|
Resource Type |
In-Service Deadline |
Credit Amount |
|
Wind |
December 31, 2012 |
2.2¢/kWh |
|
Closed-Loop Biomass |
December 31, 2013 |
2.2¢/kWh |
|
Open-Loop Biomass |
December 31, 2013 |
1.1¢/kWh |
|
Geothermal Energy |
December 31, 2013 |
2.2¢/kWh |
|
Landfill Gas |
December 31, 2013 |
1.1¢/kWh |
|
Municipal Solid Waste |
December 31, 2013 |
1.1¢/kWh |
|
Qualified Hydroelectric |
December 31, 2013 |
1.1¢/kWh |
|
Marine and Hydrokinetic (150 kW or larger)** |
December 31, 2013 |
1.1¢/kWh |
|
Table Source: www.dsireusa.org |
||
Currently the Production Tax Credit (PTC) is scheduled to expire on December 31, 2012. Uncertainty over its future is already causing renewable energy developers to suspend development activities until the future of the Production Tax Credit is resolved.
Senator Debbie Stabenow (D-Mich.), has recently introduced Senate Amendment 1812, which would extend the production tax credit (PTC) for one year, until the end of 2013, as well as extend the 1603 investment tax credit, and the 48(C) manufacturing tax credit. In addition to other provisions, the amendment (#1812) would also extend the Cellulosic Biofuels Producer Tax Credit (PTC) and the Accelerated Depreciation Allowance for Cellulosic Biofuel Plant Property through 2013.