The previous years have been characterised by great milestones and developments dealing with renewable energy. Some of these milestones include global investments related to renewable energy increasing by 17 per cent, renewable energy has accounted for 48 per cent of the modern generating capacity and that renewable energy has provided over 9.1 per cent of electricity (Evans, Strezov, & Evans, 2009) . Wind energy is among some of the sources of renewable energy. It is the cheapest source of renewable energy. The development of this renewable source of energy has been aided by income tax, whereby all businesses that produce renewable energy safe for the environment have income tax advantages. This paper looks into whether governments should support wind energy through tax credit and provide reasons why. The paper will also delve into the effect of tax credit during production of wind energy on wind energy investment once the tax credit has expired.
A tax credit refers to the amount of money that a taxpayer can deduct from all the tax that is owed to the government. The government has for over twenty years aided the development of wind energy by allowing the production of tax credit. The government should stop supporting wind energy through tax credit because wind energy has developed enough enabling it to compete with other sources of renewable energy. The amount of money that is generated through the production of wind energy has greatly increased hence wind energy should be exempted from being issued with tax credits.
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The wind power production tax credit will not affect wind energy investment once it is has expired. Wind production tax credit has achieved its original purpose which was to nurture a new and young industry into maturity. The extension of the tax credit would have really harmed the taxpayers and wind energy consumers (Hill & Thad, 2014). The wind power production tax credit should be avoided at all cost so as to reduce the dangers that will arise from continued use of wind energy that is subsidised. Some of these dangers include national debts which will greatly affect the taxpayers.
Renewable energy has greatly developed and as seen above its development is mostly due to the help from tax credits that were issued during the beginning of the development of renewable energy. Wind power production tax credit has served its original purpose and should now be removed in order to prevent issues like national debts.
References
Evans, A., Strezov, V., & Evans, T. J. (2009). Assessment of sustainability indicators for renewable energy technologies. Renewable and sustainable energy reviews, 13(5) , 1082-1088.
Hill, A., & Thad, A. (2014, October 23). The PTC Is No Longer Needed To Support The Wind Industry . Retrieved May 31, 2017, from Forbes.com: https://www.forbes.com/sites/realspin/2014/10/23/the-ptc-is-no-longer-needed-to-support-the-wind-industry/#28b5ebf45256
