Vestas future in the US once again on the Congressional docket
American politicians in Congress will be discussing the Production Tax Credit (PTC) that provides wind turbine owners a tax rebate. The tax credit is one of 13 energy-related tax programs on the table for the US Senate Finance Committee tomorrow.
Republican senator Chuck Grassley represents Iowa, one of the most wind-friendly states in the US, said that the wind PTC will meet stiff resistance when the bill is debated.
A bill has already been proposed by a group of senators that would kill the PTC.
“For Vestas and other wind players, extending the credit into 2016 means that orders could be taken for 2017 and the turbines installed in 2018, if the IRS uses the same terms as before,” wrote analysts from the bank Barclay’s. “The previous arrangement expired in December, 2014, but allowed orders in 2015 and enabled installations in 2016, under certain conditions.”
Program often in peril
The PTC gives investors a wind farm a tax discount of 23 US dollars per megawatt hour produced by wind power in the first ten years.
The program was established in 1992 and has been allowed to run out nine times over the years before it was extended by US politicians.
Vestas has announced US orders in 2015 with a capacity of 1,575 megawatts (MW) out of a total of 4,289 MWs worldwide.