Production Tax Credit Extended

The economic stimulus package signed into law by President Bush on March 9 (the Job Creation and Worker Stimulus Assistance Act of 2002 – H.R. 3090) includes an

extension of the renewable energy production tax credit, which expired at the end of 2001. This 1.5¢/kilowatt-hour (adjusted for inflation) tax credit for production of electricity from wind, solar, biomass, and geothermal sources of energy has been a major factor in the rapid growth of the wind energy industry in the U.S. over the past few years, and its extension was considered critical. The legislation extends the Production Tax Credit retroactively to January 1, 2002 through the end of 2003. Renewable energy proponents are still hoping to enact a five-year extension of the Production Tax Credit as part of the comprehensive energy legislation being debated by Congress.