Tax Legislation Deadline Extension Good for Renewables
President Obama signed the tax legislation extending the deadline for renewable energy project construction by one year in order to apply for the 30 percent tax credit, eligible for conversion into US Treasury cash grants. American Wind Energy Association and various renewable energy organizations praised the support from the US Government.
“Order will be on the rise for new wind power, and investors will put more capital into the U.S. economy because of what happened in Congress. This is a great day for American workers. Factories across the country will restart production lines, recall workers and avoid layoffs that would have followed the loss of this key incentive for wind energy. With consistent policies like this one, wind energy can generate 20 percent of America's electricity within 20 years, and employ half a million Americans,” said American Wind Energy Association CEO Denise Bode.
Additional characteristics of the bill include December 2012 construction deadlines, which remained the same, and a 100 percent depreciation bonus for new equipment bought and used after September 2010 and through December 2011, which will allow the project to only depreciate following service.
One such renewable energy project set to take advantage of this extension is Mass Megawatts Wind Power Inc, a company that has a ten year payment option already in place and is expected to continue improvements in its mass production model for future use. Most recently, the team revealed a new design to their patented Mutli-Axis Turbosystem, which changes its vertical blade to the propeller, horizontal axis. To date, the new blades can be purchased off the shelf, though plans to mass sell them are in the near future.