Undaunted by its failure earlier this week, a bipartisan group of senators has introduced legislation to extend the federal wind production tax.
Sen. Chuck Grassley, R-Iowa, and six other senators are sponsoring the American Energy and Job Promotion Act. It would extend the wind production tax another two years, until the end of 2014. The tax credit is set to expire Dec. 31. It gives 2.2-cent per kilowatt-hour tax credit for wind energy production.
Grassley was the original author of the wind production tax credit back in 1992. Since then it’s been extended several times. But it also failed to get renewed on three occasions. The wind-power industry and interest groups say that uncertainty contributes to a boom-and-bust cycle of development. Critics, however, say it’s proof that the industry wouldn’t exist without government support.
The Senate deadlocked, 49-49, earlier this week in an extension of the wind production tax credit that was tacked onto a transportation bill. The amendment needed 60 votes for further action.
For more on the wind production tax credit, check out this December story by my colleague Jay F. Marks.