Chadbourne & Parke

Does production tax credit extension mean a more likely phase-out?

Congress finally got around to extending the production tax credits (PTCs) and investment tax credits (ITCs) for wind, geothemal, biomass, marine, landfill gas and hydro projects. That is not news. However, in extending these credits, a precedent was set for future tax credit policy. Developers can prop open a closing tax credit window by starting construction of a project this year. This is a double-edged sword — it will spur investment in the short term, but it could also provide Congress with a palatable pathway to ramp down these incentives.

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