Right after I wrote to you about how 2015 had been a very good year for our company, I discovered some great news. Only thing is, I didn’t realize how phenomenal it was going to be.
As you may have heard, congressional leaders have just agreed on a multi-year extension of renewable energy tax credits. This new budget deal, to add $660 billion in new spending, will now go to the Senate for bipartisan approval. This is huge news for the wind industry and for us.
For the industry as a whole, it means relief from the repeated boom-and-bust cycles that have been the norm over the past two decades. Investors need stability and some degree of certainty and this new budget deal will now give them this assurance.
For us, this is some of the best news ever. The current Production Tax Credit (PTC) and alternate Investment Tax Credit gave no absolute assurance that these tax breaks would continue. Now, A LOT of new investment capital can enter the wind energy sector. It's positive for everyone on a long term basis – the more energydeveloped, installed and produced, the bigger the credits. Everybody wins!
So, now that we know these tax credits are slated to continue through at least 2019,that’s just what we need to support wind energy’s growth. For example, did you know that these federal tax credits helped to reduce the cost of American wind power by 66% over the past six years? The technology has improved, of course, but these tax credits have been critically important. This is hugely significant for the future growth of our company.
What a great year-end present!
President & CEO