Congress is considering closing the wind energy production credit at the end of this year. This could affect a number of property owners and businesses that have set up wind turbines in California if the credit ends.
There is the possibility of benefits being restored retroactively in 2014. However, even under such circumstances, the wind industry believes that such a lapse would slow down construction of additional wind farms.
This production tax credit was first put in place in 1992 and has been renewed on a number of occasions since that time. Still, support of the credit has been dwindling in part due to budget shortage issues that keep arising in Washington, D.C.
Even political uncertainty concerning the direction of tax and tax credits could cause a slowdown in the wind industry. There is also a wide assortment of interest groups opposed to any further extensions of this tax credit. Besides Congressional representatives opposed to any further extensions, there are also competitors in the energy industry that feel that the wind industry should be able to stand upon its own. These competitors also accuse wind industry lobbyists of playing a political game.
Tax credits will come and go. What is important for individuals in particular industries is to be able to put a plan into place in the event that credits do expire. Tax strategies can often include taking advantage of tax credits when these exist and discontinue specific business practices when the credits do go away. Accomplished tax attorneys can help in any case to make certain taxpayers are in compliance with all federal and state tax codes, and that these individuals can legally take advantage of tax credits that are offered.
Source: The Washington Free Beacon, “Congress May Let Tax Credit for Wind Industry Expire,” C.J. Ciaramella, Nov. 4, 2013
