Federal Production Tax Credit Adjusted for Inflation
Due to an inflation adjustment, the federal production tax credit on the sale of
electricity produced by wind, closed-loop biomass, geothermal energy and solar
energy has increased from 1.8¢/kWh to 1.9¢/kWh. This change, which applies to
electricity produced on or after January 1, 2005, was announced in the April 8,
2005 edition of the Federal Register . (The credit amount for electricity
generated by open-loop biomass facilities, small irrigation-power facilities,
landfill-gas facilities and trash-combustion facilities remains 0.9¢/kWh.)
Unless Congress renews the production tax credit, it will expire January 1,
2006.