Legislation has been introduced that would make it easier for farms and small-business owners to invest in wind energy. The Wind Energy Promotion Act has been introduced by House Agriculture Committee Chairman Collin Peterson, D-Minn., and would expand the eligibility of those who can receive benefits from the Renewable Energy Production Tax Credit. This legislation would not limit the ability of the current beneficiaries of the PTCs to continue receiving them.
PTCs are only useful to corporations and to individuals with large amounts of taxable investment income. As a result most wind energy investments today are made by foreign multi-national companies and not by groups of Americans who want to join together to produce renewable energy.
The Wind Energy Promotion Act would amend the tax code to allow up to $40,000 of the PTC to be used against ordinary income. This passive loss exemption is similar to a $25,000 passive loss exemption that currently exists to encourage investments in oil and gas development and real estate.
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