Congress should extend a wind power tax credit for one year as a bridge to an eventual phaseout, Sen. Lisa Murkowski (R-Alaska), the Senate Committee on Energy and Natural Resources’s ranking member, said Thursday.
Congress has generally extended the credit for two-year periods since its inception in 1992. But investment fled when the credit lapsed in 2004, and planned projects for next year already are down because the incentive’s future is hazy.
That formula “doesn’t make sense” because it fails to give investors “some level of certainty,” Murkowksi said at an event hosted by CQ.
Murkowski suggested Congress should extend the 2.2 cent per kilowatt-hour credit for wind power production so long as tax reform discussions next year lead to a plan for its gradual end.