Production Tax Credit Incentives for Renewable Electricity: Financial Comparison of Selected Policy Options [December 20, 2013] [open pdf - 453KB]
"Under current law, the production tax credit (PTC) incentive for renewable electricity will expire at the end of 2013. Generally, congressional debate about the PTC falls within a spectrum of options. At one end of the spectrum, proposals have been made to eliminate the incentive. At the other end of the spectrum, proposals include making the PTC permanent. Other proposals, such as temporarily extending and phasing out the PTC over time, fall within these two extremes. This report examines selected alternatives for phasing out PTC incentives. [...] In December 2012, the American Wind Energy Association published a PTC phase out proposal that would result in the PTC being eliminated by 2019. Debate about energy subsidies is multi-faceted. Different energy sources receive different types of subsidy support over varying time periods. Comparing tax incentives and subsidies across all energy types is beyond the scope of this report. This report examines and considers possible options for renewable electricity PTCs, with a focus on phase-out alternatives. Generally, the goal of a tax credit phase-out approach is to reduce the incentive value over a period of time in order to encourage industry to reduce costs so that certain renewable power technologies might compete on an unsubsidized basis. [...] A detailed examination and analysis of this 'market-linked' phase-out approach is included in this report. Each phase-out approach differs in terms of complexity, implementation, and potential impacts to renewable electricity deployment."
CRS Report for Congress, R43340
National Agricultural Law Center: http://www.nationalaglawcenter.org/