The production tax credit (PTC) has been the primary federal incentive for deployment of wind power in the United States since it was first enacted as part of the Energy Policy Act of 1992. The PTC establishes a production incentive for qualifying proj...
June 4, 2015
minute read time
The production tax credit (PTC) has been the primary federal incentive for deployment of wind power in the United States since it was first enacted as part of the Energy Policy Act of 1992. The PTC establishes a production incentive for qualifying projects during the first 10 years of commercial operation and has been renewed eight times since its initial passage; renewals have often occurred near to or soon after expirations. Most recently, the PTC was extended by one year through December 31, 2013. This analysis explores the potential effects of PTC expiration and various extension scenarios on future wind deployment with the Regional Energy Deployment System (ReEDS), a model of the U.S. electricity sector.