Factsheet: Federal renewable electricity production tax credit PTC

Federal renewable electricity production tax credit PTC

Key Information
Description: 
The Department of Energy (DOE) make incentive payments, for electric energy generated and sold by a qualified renewable energy facility owned by a State or political subdivision. The federal renewable electricity production tax credit (PTC) is an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The duration of the credit is 10 years after the date the facility is placed in service for all facilities placed in service after August 8, 2005. In December 2015, the Consolidated Appropriations Act, 2016 extended the expiration date for this tax credit to December 31, 2019, for wind facilities commencing construction, with a phase-down beginning for wind projects commencing construction after December 31, 2016. The Act extended the tax credit for other eligible renewable energy technologies commencing construction through December 31, 2016. The Act applies retroactively to January 1, 2015.
Goal/Aim: 
Increase the share of renewable energy in electricity production. Support renewable energy projects.

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