Production Tax Credit (PTC)

The Production Tax Credit (PTC) provides financial incentives for renewable energy facilities in the U.S., offering 2.3 cents per kWh for wind, geothermal, and closed-loop bioenergy, and 1.1 cents per kWh for other technologies. While the PTC has driven significant wind capacity growth and cost reductions, the document argues that Congress's pattern of allowing the credit to expire and then granting short-term extensions has created a 'boom-bust cycle' that jeopardizes financing, jobs, and long-term development.

• The Production Tax Credit (PTC) provides tiered financial incentives for the first ten years of a facility's operation: 2.3 cents per kilowatt-hour (kWh) for wind, geothermal, and "closed-loop" bioenergy, and 1.1 cents per kWh for open-loop biomass, landfill gas, municipal solid waste, small irrigation systems, and certain hydroelectric upgrades.
• The PTC, alongside state renewable electricity standards, significantly expanded U.S. wind power between 2007 and 2014, leading to a nearly fourfold increase in capacity, an average annual investment of nearly $15 billion, and a cost reduction in wind electricity generation of over 40 percent over three years.
• The wind industry has suffered from a 'boom-bust cycle' because Congress has extended the PTC six times and allowed it to expire six times since its enactment in the Energy Policy Act of 1992, with installations dropping between 76 and 93 percent following expirations.
• Short-term and last-minute extensions of the PTC are insufficient because the planning and permitting for new wind facilities can take two years or more, creating uncertainty that hinders financing and project starts.

APA

Union of Concerned Scientists (2008). Production Tax Credit (PTC). https://www.ucs.org/resources/production-tax-credit-renewable-energy

Chicago

Union of Concerned Scientists. Production Tax Credit (PTC). 2008. https://www.ucs.org/resources/production-tax-credit-renewable-energy.

Wikipedia

{{cite report |author=Union of Concerned Scientists |title=Production Tax Credit (PTC) |date=15 July 2008 |url=https://www.ucs.org/resources/production-tax-credit-renewable-energy |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{unionofconcernedscientists2008production, author = {{Union of Concerned Scientists}}, title = {{Production Tax Credit (PTC)}}, institution = {Union of Concerned Scientists}, year = {2008}, month = jul, url = {https://www.ucs.org/resources/production-tax-credit-renewable-energy}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }