WASHINGTON – U.S. Senators Kevin Cramer (R-ND) and John Hoeven (R-ND) helped introduce the “PTC Elimination Act” today, a bill to completely phase out the federal production tax credit (PTC) for renewable energy sources like wind.
“The wind production tax credit is fundamentally unfair and has long outlived its expiration date,” said Senator Cramer. “Our bill helps level the energy market by forcing this disruptive tax credit to finally expire.”
“We reached a bipartisan consensus to phase out the wind PTC in 2015, recognizing that the technology has reached commercial-viability,” said Senator Hoeven. “This legislation ends the extension. We need to ensure that we have a level playing field, helping maintain a more diverse energy mix and better ensuring homes and businesses have power when needed most.”
The bill specifies any new projects would need to begin construction by the end of this year to qualify for the credit, as is the case under current law. This affirms the extension for 2020 is the last extension the credit will receive.
The bill is being led by Senator James Lankford (R-OK). It is also cosponsored by Shelley Moore Capito (R-WV) and was introduced in the House of Representatives by Representative Kenny Marchant (R-TX).
“This production tax credit was established to help the then-fledgling renewable energy industry. Now, if you drive through my state and many others with countless wind turbines, you can see that the wind industry in particular is no longer a start-up, new energy source,” said Senator Lankford. “The wind industry simply does not need special help to thrive anymore. I am disappointed that even though Congress concluded four years ago that the credit served its purpose and should be phased out by the end of 2019, the PTC was instead extended for the twelfth time at the end of last year. With $26 trillion in national debt and ever-present deficit spending issues, we must return to the spirit of the 2015 agreement and let this market-distorting credit expire for new projects at the end of this year. I am grateful to work with Senators Cramer and Hoeven, and Representative Marchant to ensure we actually get this resolved.”
This is the latest effort by Senators Cramer and Hoeven to ensure this PTC expires this year. Recently, Senator Cramer led a letter signed by Senator Hoeven to the Senate Finance Committee Chairman urging him to oppose another extension of the PTC. Earlier this year, Senators Cramer and Hoeven introduced an amendment to the American Energy Innovation Act - an energy bill being considered in the Senate - to repeal last year’s extension.