The IRS flouted Congressional intent …and knowingly transformed the PTC phase-out into a 5-year PTC extension. Without reform, the PTC tax will grow to an additional $32+ billion in the next decade, not including the credits awarded projects already operating.

The multi-national, multi-billion-dollar wind industry and its group-think sycophants in the media blew a collective gasket this month following approval of the U.S. House tax bill (HR 1). It seems that House lawmakers shrugged off 25-years of subsidy lore by daring to rein in the open-ended, unlimited wind-PTC tax that now costs Americans over $5 billion annually. [1]

The House was right to take aim at the wind PTC, and the Senate should follow suit.

Ignoring Congressional Intent

The provision of HR 1 causing the biggest uproar is the “Special Rule for Determination of Beginning of Construction,” which clarifies when a project is considered to have started construction. …

“The Icebreaker Windpower project can be seen as entirely moot: there will be no meaningful benefit to Ohio and its citizens. The chimera of jobs and a boosted economy will never become material; the obvious loss to bird and bat life scarcely needs a comment.”

The heat is on for supporters of the six-turbine LEEDCo Icebreaker Windpower project offshore of Cleveland.

A show of “yeas” at the November 8^th public meeting of the Ohio Power Siting Board (OPSB) at Cleveland City Hall failed to make a dent in the logical and passionate opposition. A few dozen supporters at a public meeting is not material for a facility that is uneconomical and environmentally invasive–and unneeded except for a poster child of what was Obama energy policy.

It is surprising that the OPSB has not closed the file on the now called “Icebreaker Windpower.”…

“Big wind’s complaint that the language reneges on a previous deal is entirely unfounded. The so-called ‘deal’  AWEA is trying to preserve … was a backroom negotiation between big wind and Obama-era IRS lawyers to craft guidance that went well beyond the statute. Congress is finally taking corrective action.”

“According to the Joint Committee on Taxation, the GOP bill will save taxpayers $12.3 billion in PTC-subsidies over 2018-2027. … [T]he GOP tax bill is headed in the right direction on wind energy development. But if the goal was to simplify tax legislation, the GOP should go further and repeal the PTC altogether.”

The GOP tax bill dropped last Thursday and it sent shock waves through the wind industry. Turbine makers Vestas and Siemens saw notable declines in stock value and the American Wind Energy Association (AWEA) blasted Republicans for reneging on a “tax reform deal” already in place.…

“Market conditions back in 1992 no longer exist. Big wind no longer needs the Production Tax Credit, and certainly cannot justify the extraordinary benefits received [3.5¢/kWh pre-tax]. Retaining the subsidy in light of lower installation costs and increased production serves only to further distort the market and bestow a bounty on big wind that far exceeds what 1992 lawmakers could ever have envisioned.”

The American Wind Energy Association’s latest market report touts an industrial- wind-energy construction pipeline of 29,634 megawatts, that, if all built, will bring the US installed capacity to nearly 115,000 MW.  Installed capacity stands at 85,000 MW today.

You can bet that all (or most) of the new megawatts will meet the Obama/IRS requirements for full-tax credit eligibility. As we’ve written before, the Production Tax Credit ‘phase-out’ was little more than a 5-year extension of the PTC after Congress looked the other way while the IRS implemented its own definition of the phase-out.…