US fiscal cliff deal extends wind energy tax credits

The fiscal cliff deal approved by Congress on Tuesday includes an extension of the wind energy tax credits for wind projects built in 2013 and the industry  industry is breathing a sigh of relief as a reported 37,000 jobs will be saved.

The wind energy tax credits were set to expire at the end of 2012 which would have effectively brought wind projects in America to a halt.

The American Wind Energy Association has said that the extension of the credits will save around 37,000 jobs and revive business at 500 wind turbine factories. However, the boom and bust cycle will still have an effect on the wind industry.

Recent reports have suggested that the credits could provide a 2.2 cent tax credit for each kilowatt-hour generated by a wind project in the first 10 years, or a payment of 30 per cent of the construction cost. The tax credits led to a boom in wind power in 2012, and new wind power installations represented 44 per cent of all new electricity capacity created in the U.S. in 2012, according to the Energy Information Administration.