PTC Extension Advanced by Obama

President Barack Obama repeated his call for the permanent extension of the production tax credit (PTC) of $0.023 per kWh and the investment tax credit (ITC) of 30{82e5879b62f9f0cbb622da6aeaafa5e16d37c32fcd77ff762e12cec7a1007225} as a component of the 2016 budget totaling $4 billion.

This is not the first time that Obama has advocated that the tax credits be made permanent, but so far he has not succeeded in persuading Congress to cooperate. Very recently, all that the law makers can manage was an extension for one-year to end in 2014.

The permanent extension of the tax credits has been a consistent element of President Obama’s budget proposal.   The Wind Energy Association’s senior vice president of government and public affairs, Rob Gramlich, said that in releasing the budget proposal, the White House evidently realizes the advantages of having in placed a stable and long-term tax policy on wind.

As the President has mentioned in his State of the Nation address, America is the world’s number one in the production of wind energy, but to be able to maintain that status, Congress should act.

As per the budget documents, extending the ITC and PTC in the next ten years will cost the US government approximately $31.5 billion.

The 2016 budget also contains a fund amounting to $ 4 billion to push US states to make deeper and faster reduction of power plant emissions and a $7.4 billion support for clean energy technology projects.

Almost three fourths of said fund will be channeled to the Department of Energy along with over $710 million to advance the use of power from geothermal, water, wind, and solar energy as the cost of these technologies are reduced. It also includes $193 million finance clean energy integration and grid modernization.

However, Obama’s plan is only the initial step in the drawn out budgetary process that is expected to see Congress, which is dominated by Republicans, advance its own budgetary priorities when the party submits its own budget proposal in the spring.

Photo Credit: heritagefutures via Compfight cc

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