Congress Considers Wind Power Tax Incentives as Part of the Economic Stimulus Plan

The $819 billion economic stimulus legislation currently before Congress includes a $13 billion provision to extend wind power production tax credits until 2012, according to a recent article in the Los Angeles Times.

According to the article, the recently-passed House version of the bill includes a grant program that would cover 30% of the upfront costs of investments in alternative energy. The program, intended primarily for the wind and solar industries, would allow tax credits to be converted into grants from the Energy Department.

Supporters of the grant program say that investors have previously used tax credits to offset tax liabilities, but that the recession has severely reduced the capital available for investment. The Senate version of the bill includes the tax credit extension but not the grant program.