Tax Cut Package Brings With It Slow Fade Out Of Production Tax Credit

(WNAX) — The tax reform legislation approved by Congress last week does include the wind production tax credit, which is scheduled to sunset in 2019. South Dakota Renewable Energy Association Analyst Steve Wegman says he’s pleased Congress lived up to their end of the bargain by choosing to phase out the incentive over time, rather than cutting it altogether.

He says the Wind Production Tax Credit is critical for South Dakota’s wind energy industry, as well as for schools and state and county governmental agencies.

Wegman says South Dakota’s wind energy industry began in 1995 and ramped up for ten years, but now needs to upgrade equipment. He says the tax credit will help with that.

Wegman says wind projects currently being considered in South Dakota represent over 900 megawatts, or a $2 billion investment.