GE Study: Tax incentives for US wind farms more than offset by subsequent revenues

18June 2008
GE Energy Financial Services, a unit of GE unveiled today a study estimating that the US federal tax incentive for wind energy projects (the Production Tax Credit - PTC) which is currently set to expire December 31, 2008, more than pays for itself through tax revenues from the projects' income, vendors' profits, and individual workers' wages.

"Congress is debating how to pay for wind tax credits without realizing that, over time, wind farms pump more money into the US Treasury and state and local coffers than they take out". Kevin Walsh, Managing Director of Renewable Energy at GE Energy Financial Services, said."Our study shows that the wind farms more than pay for themselves through existing tax revenues..."

The study estimates that wind energy projects which began operating in 2007 have a positive NPV of US$250mn to the US Treasury after deducting the cost of the PTC. This represents a 5% IRR.

GE press release

GE study

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