Fact Checks


  • FACT: The PTC is a credit used by businesses to expand their renewable electricity generation capability and provide jobs and expand the market for renewable electricity

  • The Renewable Energy Production Tax Credit (PTC) is not a cash handout from the government. Instead, it is "a per-kilowatt-hour [federal] tax credit for electricity generated by qualified energy resources" – and only applicable to businesses who are already successfully generating power. Thus, it has the effect of leaving more of the money from sales of wind-generated electricity in the private sector. (Source: Department of Energy, http://bit.ly/sPVfSX).
  • The one-year PTC extension included in the 2013 bipartisan fiscal cliff bill will cover all wind projects that start construction this year. Companies that manufacture and install wind turbines sought that revised definition to allow for the 18-24 months it takes to develop a new wind farm. (Source: American Wind Energy Association, http://bit.ly/TFZUKp)
  • The PTC extension saved jobs. ACORE President and CEO Vice Admiral Dennis V. McGinn notes, "As a result of the extension, over 37,000 American jobs will be saved, more renewable energy jobs will be added to our recovering economy, and domestic wind turbine manufacturing will resume in America's 500 wind turbine manufacturing facilities." (Source: American Council On Renewable Energy, http://bit.ly/Vw8TQ7)
  • The PTC extension also helps ensure that our wind turbines continue to be manufactured domestically, instead of being imported from overseas. In a statement from the American Wind Energy Association, interim CEO Rob Gramlich says, "Now we can continue to provide America with more clean, affordable, homegrown energy, and keep growing a new manufacturing sector that's now making nearly 70 percent of our wind turbines in the U.S.A." (Source: American Wind Energy Association, http://bit.ly/TFZUKp)
  • The PTC works. According to the National Renewable Energy Laboratory, "In 2011, wind power was again (for the sixth time in seven years) the second-largest new resource added to the U.S. electrical grid in terms of gross capacity additions." (Source: National Renewable Energy Laboratory, http://1.usa.gov/PU0IpB)
  • According to the leading wind energy trade group, the PTC has resulted in a 90% drop in the price of wind power since 1980, benefiting utilities and customers. (Source: American Wind Energy Association, http://bit.ly/wys7NI)
  • In 2012, a group of 19 business and investment leaders called for continued support of the PTC, including Starbucks, Levi Strauss, North Face, and New Belgium Brewing, among others. They note that allowing an expiration of the PTC is equivalent to "levying a tax on companies committed to buying American energy" and, "In today's economic climate, a tax hike on American businesses buying American renewable energy is unwarranted." (Source: Ceres, http://bit.ly/SZdtaI)
  • Business certainty is important to maintain a healthy American wind industry. Michael Bernier, a senior manager at Ernst & Young who specializes in renewable energy tax credits, highlights the business certainty that the PTC extension provides: "Providing that certainty of 'OK, we're going to get this tax credit,' that helps you mitigate your risk." (Source: Fox Business, http://fxn.ws/10UCer6)
  • The PTC extension has garnered bipartisan praise around the country. Governor Sam Brownback from Kansas said the tax credit inspired $3 billion in wind power investment in Kansas during 2012 and maintenance of the program was necessary to "continue to build wind energy and the jobs and electricity that is associated with it." (Source: Topeka Capital-Journal, http://bit.ly/WkJ6GF)
  • Prior to the 2013 extension, the PTC received bipartisan support from over 100 members of the House of Representatives. One strong supporter of the PTC, Sen. Charles Grassley, R-Iowa, noted that the PTC is just one of many energy incentives in the U.S. and added, "No single energy tax incentive should be singled out over others before a broad-based tax reform debate takes place." (Source: Sioux City Journal, http://bit.ly/TOaaPT)
  • Senator Mark Udall, D-Colo. credits the PTC for local economic growth in his state. His website says, "The Production Tax Credit for wind has helped attract clean energy businesses to invest in the United States, including Vestas, which created almost 2,000 jobs in Colorado." (Source: Senator Udall, http://1.usa.gov/MywZBc)
  • Congressman Steve King, a Republican from Iowa, tells a story similar to Senator Udall's. Congressman King highlights the PTC's effects in his state, "Iowa was the first state to generate 20 percent of its electricity from wind. Now, wind supports as many as 5,000 Iowa jobs, and $11 million in annual land lease payments to Iowa farmers. Iowa wind has prompted $300 million in private investment in Iowa manufacturing facilities." (Source: Congressman King, http://1.usa.gov/ZS3Ud8)
  • The PTC has strong public support as well. In a May 2012 United Technologies/National Journal poll, almost two-thirds—64 percent—of those surveyed said that Congress should extend federal tax credits that encourage production of alternative-energy sources, such as wind, that was due to expire at the end of 2012. (Source: National Journal, http://bit.ly/KRLSzx)

Latest Tweets

EnergyFactCheck
#Renewable #energy is making the #power system more reliable, secure and economic! Get the facts: https://t.co/7S23YPtcvV
EnergyFactCheck
America’s biggest #grid operators are reliably integrating large amounts of #renewable #energy today! https://t.co/miAoLWKfsv
EnergyFactCheck
Business Groups Send Dept. of @Energy Analyses Showing Diverse Energy Sources Protect Electric Reliability. Read:… https://t.co/ECJ5vV2CJv
EnergyFactCheck
Since 2008, the cost of five clean #energy technologies has declined between 40% and 94% https://t.co/8ZnWeNomui… https://t.co/uIqkYeGPWb
EnergyFactCheck
New world record for cheapest #offshore #wind just set in Denmark by @VattenfallGroup https://t.co/dX8AvEFH1W https://t.co/Kqqea2bQ3j

DAILY FACT

Events

No events