November 10 (Renewables Now) - US Senate Republicans on Thursday unveiled their tax overhaul plan and it does not include changes to the production tax credit (PTC) for wind energy.
The American Wind Energy Association (AWEA) said the proposed Senate bill honours the terms of the five-year PTC phase-out passed by Congress in 2015 after a bipartisan agreement. The House version of the legislation proposes to cut the value of the credit and change the start of construction terms for qualification.
AWEA said the House bill's "drastic" changes are already "sending shock waves through the market." It cited estimates by Bloomberg New Energy Finance (BNEF) and Goldman Sachs, according to which, new wind projects could be slashed by half if the House proposals become law. As reported by Bloomberg, the proposed changes would see BNEF's forecast for 38 GW of new wind additions in the US through 2020 cut to 19 GW.
"The Senate has shown leadership in putting together a tax plan that works for U.S. wind workers, rural communities, and consumers who want affordable, reliable wind energy – but the fight to preserve America’s wind jobs isn’t over," said AWEA chief executive Tom Kiernan.