CRS report on energy tax credit

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The production tax credit (PTC) for renewable energy, a corporate tax credit available to businesses producing renewable energy through a number of green technologies, expired at the end of 2013. The PTC provided a per-kilowatt-hour tax credit to businesses based on the amount of electricity generated through qualified energy resources, such as wind.

Although the tax credit has expired and been reinstated multiple times over the years (most recently in 2009 by the American Recovery and Reinvestment Act), Congress is still divided whether to reinstate it or not. Therefore, the Congressional Research Service (CRS) was asked to create a report outlining the pros and cons of the production tax credit for renewable energy sources as lawmakers consider whether to reinstate it once more.

The report analyzes the spectrum of outcomes: eliminating the tax credit, making it permanent, and various phase-out options for renewal. Opponents of the PTC view it as the federal government “picking winners,” whereas proponents view the PTC as an important tool to help kickstart the fledgling renewable energy industry. For more information and to read the full report click here.

Sources: Congressional Research Service, E&E News