Iowa Congressman Bruce Braley has introduced a bill to extend the Wind Energy Production Tax Credit for seven years. The Democrat from Waterloo says it would provide producers with incentive to expand their wind energy production.
Braley says the tax credit has historically been extended in only one or two year increments. "One of things this bill will do is provide a more predictable market for producers and investors who know that there’s going to be a longer term tax credit," Braley told reporters by phone Thursday. The Wind Energy Production Tax Credit was first introduced in 1992 by Iowa Senator Chuck Grassley.
Braley says the measure allow a credit against income taxes for producers of wind energy. The credit is set a 2 cents per kilowatt hour and is designed to make wind competitive with other forms of energy production. Braley says the biggest hurdle is getting his bill approved is convincing lawmakers to the seven year deal.
"That’s been an obstacle that has been confronted in the past and I’m sure it will be an obstacle that we’ll have to face here," Braley said. Iowa is currently ranked fourth in the nation in wind energy production.