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.