The Obameter

Extend Production Tax Credit to encourage renewable energy

"Will . . . extend the federal Production
Tax Credit (PTC) for 5 years to encourage the production of renewable energy."

Sources: "New Energy for America"

Subjects: Energy, Environment, Taxes

Updates:

Congress extended the credit, but not for as long as Obama promised

Updated: Monday, January 4th, 2010 | By Catharine Richert

On the campaign trail, Barack Obama promised to boost the renewable energy industry.
 
One quick fix: extending the Production Tax Credit for the production of biofuels, wind and solar energy.
 
As part of the stimulus bill, producers are now eligible for a 2.1-cent per kilowatt-hour benefit. Other technologies, such as some types of hydropower, will get 1 cent per kilowatt-hour.
 
The bill extended the program for wind production from 2009 until the end of 2012. The tax credit for geothermal, hydropower and other renewable energy will be available 2009 until the end of 2013.
 
According to Rob Gramlich, senior vice president for the American Wind Energy Association, the three-year extension was a boon to the industry.
 
"It was a longer extension than we have ever had and the administration worked very hard to restructure the mechanism to work in the changed economic environment," he said. "So we give the administration very high marks on the tax credit."
 
That said, Obama is still three years short of his promise for the wind tax credit. And for other renewables, he's two years shy of meeting his goal. As a result, we're giving Obama a Compromise on this pledge.

Sources:

The Department of Energy, Economic Stimulus Act Extends Renewable Energy Tax Credits , February 18, 2009

The Union of Concerned Scientists, Production Tax Credit for Renewable Energy , accessed January 4, 2010

Advertisement
How to contact us:

We want to hear your suggestions and comments.

For tips or comments on our Obameter and our GOP-Pledge-O-Meter promise databases, please e-mail the Obameter. If you are commenting on a specific promise, please include the wording of the promise.

For comments about our Truth-O-Meter or Flip-O-Meter items, please e-mail the Truth-O-Meter. We’re especially interested in seeing any chain e-mails you receive that you would like us to check out. If you send us a comment, we'll assume you don't mind us publishing it unless you tell us otherwise.

Browse The Truth-O-MeterTM:
Subscribe: