The US lawmakers agreed on a last minute deal to avert the fiscal cliff situation and as part of the deal also extended a tax credit system to the wind energy industry.
The lawmakers have agreed to extend another year of the renewable energy production tax credit, which was set to conclude in 2012. Bob Dineen, president and CEO of the Renewable Fuels Association said that the extension of the tax credit facility allows the industry to compete on a fair level as oil firms get exploration benefits from accelerated depreciation.
The lawmakers also changed the rules to allow projects that begin construction this year will become eligible for tax benefits in the coming years even if they don't start operating this year. Experts said that the eligibility was important as the uncertainty over the tax credit led to delays in several renewable energy projects in the country.
Luke Metzger, director of Environment Texas said, "We are poised to tap into even more wind power, and the tax credits are critical for making sure that happens."
The wind production tax credit provides a 2.2 cent tax break for every kilowatt-hour of energy during the first ten years of a wind farm project.