State Renewable Energy Goals in Jeopardy Due to Prolonged Federal Tax Credit Lapse, According to Platts Study
BOULDER, Colo., Aug 23, 2004 PRNewswire
State-level renewable portfolio standard (RPS) goals are in jeopardy due to the lapse of the 10-year 1.8 cents/kWh federal production tax credit (PTC), according to a study from Platts.
Although the report, "Does the PTC Work?" found that the PTC is unlikely to yield a significant direct market impact as a stand-alone policy because renewable energy market growth has historically been driven by state-level policies, study author Brandon Owens notes that the indirect role that the PTC plays in supporting state RPS goals is the most significant indicator of the value of the credit. "If the ultimate achievement of state-level RPS goals is contingent upon the presence of the federal tax credit, then the future market growth of renewables will depend upon the simultaneous presence of both policies," says Owens.
The report also finds that, if reinstated, the PTC will transfer wealth from federal taxpayers to electricity ratepayers located primarily in RPS states. According to the study, if the PTC is reinstated, ratepayers in California, New York, Minnesota, New Mexico and Arizona, will benefit from $1.7 billion in reduced tax payments by owners of renewable energy facilities over the next 12 years. "Does the PTC Work?" is now available from Platts.
Platts, a division of The McGraw-Hill Companies (NYSE:MHP), is the world leader in providing energy information. For nearly a century, Platts has helped to enable ever-changing global energy markets enhance their performance through such offerings as independent industry news and price benchmarks. From 14 offices worldwide, Platts covers the oil, natural gas, electricity, nuclear power, coal, petrochemical and metals markets. Additional information on Platts real-time news and price assessment services, publications, databases, geospatial tools, conferences, magazines, research and analytical services and energy financial services is available at http://www.platts.com.
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SOURCE Platts
Jim Keener Platts +1 (720) 548-5624 james_keener@platts.com
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