Construction delays from COVID-19 have wind and solar energy developers concerned about losing tax credits that expire if projects aren’t completed on time.
The projects at risk represent about $35 billion in investment, 35,000 jobs and about $8 billion in rent payments for landowners and state and local taxes, said John Hensley, vice president of research and analytics for the American Wind Energy Association.
The tax credits for wind and solar projects are time sensitive, containing preprogrammed step-downs in their value. To get the full credit, a project must be completed and online within four years. For example, a project started in 2016 needs to be online providing energy by 2020.
This year was set up to be a big one for wind installation, Hensley said. Tax credits for about 25 gigawatts of wind energy development projects are at risk. It takes 412 utility-scale wind turbines to produce 1 gigawatt of power, which is enough to power 190 homes. Hensley said.....................
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