Wind Tax Credit
Senate Passes Farm Bill Containing Small Turbine Tax Credit
The U.S. Senate approved creation of a new small wind turbine tax credit as part of a broad-ranging farm policy bill, but farmers, home owners, and small business owners will have to wait until at least next year for this proposal to become law. AWEA and its member companies worked all year to build support for the ITC and to advance it further through the legislative process than ever before.
Under the Senate farm bill, the small turbine Investment Tax Credit, or ITC, would cover 30 percent of the cost of a system up to a level of $4,000 for residential or commercial applications. The credit would be available for one year, through Dec. 31, 2008.
Earlier this year, the House of Representatives passed its version of farm legislation (H.R. 2419) containing a similar version of the small wind ITC. Some time after Congress returns next year, House and Senate negotiators will attempt to reconcile the differences between these bills. Only then could a final farm bill be sent to the President to be signed into law.
The small turbine ITC had also been contained in an earlier version of an energy policy bill, but was removed along with all other tax items at the insistence of the Bush Administration and the inability of the Senate to break through a procedural hurdle.
Source: American Wind Energy Association