Grassley – the father of the PTC – stepped up to protect his baby. At the confirmation hearing for Secretary of the Treasury Steven Mnuchin, the senator asked if Mnuchin supported allowing the PTC phaseout to run its course undisturbed. Mnuchin responded that he did. Thus, it appears the IRS will not be ordered to rescind or negatively alter its “begun construction” guidance, and the administration will not propose a repeal of the phase-out statute.
Now, the wind industry hopes for a wind-friendly Congress in 2019 and beyond and a wind-friendly president in 2021 and beyond. Such a president taking office in 2021 would be just in time to address what seems will be an inevitable lull following the last of the 30-70 GW projects that “started construction” in 2016 being placed in service by the end of 2020 to meet the four-year safe harbor. We can only imagine where the wind industry and tax policy will be in 2021, but history suggests the road there will be an interesting one.