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IRS Increases Amount Wind and Renewables Receive Via Production Tax Credit

The IRS wrote yesterday in the Federal Register that it is increasing the amount that developers of wind and some other renewable projects can receive via the production tax credit. The credit was set at 1.5 cents per kilowatt-hour in 1993 dollars and was indexed to inflation. The IRS has regularly updated the credit since then.

Wind, geothermal and closed-loop biomass projects will now get 2.3 cents per kilowatt-hour of electricity produced, up from 2.2 cents.

Electricity produced from open-loop biomass, small irrigation power, landfill gas, trash combustion, some hydropower, and marine and hydrokinetic renewable energy will continue to get 1.1 cent per kilowatt-hour.



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