![PTC Extension Update](https://fggscorp.com/wp-content/uploads/2020/11/ptc-extension-update-thegem-blog-default.jpg)
Latest News
November 12, 2020
From Tom Kiernan, AWEA CEO:
PTC Extension Update
December 19, 2019
Earlier this afternoon the Senate passed a spending and tax bill that will extend the current production tax credit (PTC) for wind for an additional year and raise the value of the PTC from 1 cent/kWh to 1.5 cents/kWh. The legislation was passed by the House yesterday and the President is expected to sign it into law shortly. This was a hard-fought victory for us and the result of sustained member company and AWEA advocacy on Capitol Hill about the value of the PTC to drive economic growth and reduce greenhouse gas emissions.
Below is some additional information about the bill:
- The 1.5 cents/kWh PTC (60% of the original PTC value, indexed for inflation) or 18% ITC in lieu of the PTC is available for projects that commence construction in 2020. Further exploration of IRS guidance may be needed, but our current interpretation is the following:
- If construction of a facility begins in 2019, then only a 40% credit (1 cent/kWh) should be allowed, and the continuity safe harbor should apply so long as the facility is placed in service by 2023.
- If construction of a facility begins in 2020, then a 60% credit (1.5 cents/kWh) should be allowed, and the continuity safe harbor should apply so long as the facility is placed in service by 2024.
- No solar ITC extension
- No storage ITC
- No direct pay or transferability provision
- No electric vehicle credit extension
- PTC for closed-loop biomass, open-loop biomass, geothermal, landfill gas, municipal solid waste, hydropower, and marine and hydrokinetic energy extended through 2020, with a retroactive extension from January 1, 2018
- Biodiesel credit extended at full value from 1/1/18 through 2022
- Credit extensions for fuel cell motor vehicles, alternative fuel refueling property, and 2-wheeled plug-in EVs through 2020