Steven Mnuchin, President Trump’s Treasury Secretary has told legislators in the US that he will extend two tax credits that will help the wind energy industry weather the effects of the Covid-19 pandemic. The tax credits help developers finance projects.
In a letter sent to senators on 8 May 2020, Secretary Mnuchin said his department would modify regulatory guidance for the production tax credit (PTC) and the energy investment tax credit (ITC).
Developers are required to meet certain deadlines to qualify for the PTC and ITC, but Covid-19 has interrupted supply chains and made it unlikely some projects will qualify.
Secretary Mnuchin’s decision follows a joint request from bipartisan senators led by Senate Finance Committee Chairman Chuck Grassley (R-Iowa).
“Projects that have been waylaid by the economic disruptions of this pandemic can now proceed with more certainty. That means more certainty for American businesses and families at a time when stability is in short supply,” Senator Grassley said.
Alongside Senator Grassley, the original request to the Treasury Department for the change was made by Senate Finance Committee Ranking Member Ron Wyden (D-Ore), Senators John Thune (R-SD), Maria Cantwell (D-Wash), Senate Energy and Natural Resources Committee Chairman Lisa Murkowski (R-Alaska) and Ranking Member Joe Manchin (D-W Va).
Asked if the plan would help offshore windfarm projects in the US, Business Network for Offshore Wind president and chief executive Liz Burdock said, “Yes. It will help when it is actually modified.”
American Wind Energy Association SVP of Government & Public Affairs Amy Farrell told OWJ, “We appreciate the Department of the Treasury’s indication that it will update guidance to address wind energy challenges caused by Covid-19 and we look forward to reading the important details.
“We also are grateful to Senators Grassley, Wyden, Murkowski, Manchin, Thune and Cantwell for the letter that they sent to Treasury explaining the importance of this action.”