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02 Jan 2013: U.S. Wind Tax Credit
Extended in ‘Fiscal Cliff’ Compromise

The last-minute tax deal brokered by U.S. lawmakers to avert the so-called “fiscal cliff” included a one-year extension of the wind energy tax credit, a subsidy that industry officials say is critical for the growth of the wind energy sector. The bill, which now awaits President Obama’s signature, preserves the

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2.2-cents-per-kilowatt-hour credit for all wind energy projects that begin construction in 2013, allowing projects that are not completed until 2014 to qualify, as well. While the wind energy sector achieved record growth in 2012 — accounting for 44 percent of all new electricity generating capacity in the U.S. — industry leaders say the possible expiration of the tax credit forced some turbine manufacturers to idle factories and lay off workers during the latter half of 2012. The lack of a long-term federal policy has created “a ‘boom-bust’ cycle” in the wind energy sector for more than a decade, according to the American Wind Energy Association (AWEA), a trade organization. “We thank President Obama and all the Members of the House and Senate who had the foresight to extend this successful policy, so wind projects can continue to be developed in 2013 and 2014,” Denise Bode, the CEO of the association, said in a statement.

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