Time’s running out for wind operators to get federal tax credit

Wind farm operators in Oklahoma and other states who intend to build new facilities are facing a year’s end deadline if they want to get a federal tax break before it expires.

The federal renewable electricity production tax credit or PTC has a deadline of Dec. 31, 2019. Operators who begin construction of wind farms by the end of the  year will still be eligible for the credit which is an inflation-adjusted per-kilowatt hour tax credit.

The IRS says the duration of the credit is 10 years after the date the wind farm is placed into service.

The Production Tax Credit was originally created in 1992 and renewed and expanded several times since then.

The tax credit amount is $0.015 per kWh in 1993 dollars for some technologies and half of that amount for others.

Applying the inflation-adjustment factor for the 2017 calendar year, and the 20% step-down required by H.R. 2029, the production tax credit amount is as follows:

  • $0.019/kWh for wind