In order to be financially competitive, most wind projects need to take advantage of federal and, where available, state tax incentives. It is critical to understand the role and mechanics of tax incentives while developing a commercial-scale community wind project because these incentives can represent one-half to two thirds of the total revenue stream over the first 10 years of operation due to the Federal Production Tax Credit (PTC) and Modified Accelerated Cost-Recovery System (MACRS) or other type of depreciation that can be applied to wind energy assets. You will need to consult a tax professional in the early stages of project planning to ensure that your financial projections are valid and accurately take into account the project’s tax burden and benefits.
A Survey of State Support for Community Wind Power Development by Mark Bolinger of Lawrence Berkeley National Laboratory, published March 2004. The report is part of series called Case Studies of State Support for Renewable Energy.
Lawrence Berkley National Laboratory published this report, written by Mark Bolinger, to address concerns regarding the interaction between the USDA Farm Bill and the federal Production Tax Credits for wind energy projects.