Wind turbine construction jumps ahead of subsidy deadline

Wind turbine project developers are rushing to begin construction on projects before year's end, and thereby guarantee the projects are eligible for a tax credit (worth $0.023 per kWh) that expires on Jan. 1.

However, this isn't the first time construction has picked up ahead of a subsidy expiration. And since previous deadlines required projects to be completed (rather than just started) before a subsidy expired, the pressure on developers isn't quite as intense this time around.

Over the last two decades, Congress has allowed a wind tax credit to expire several times before later renewing it. Construction activity has generally fallen sharply following an expiration.

Wind turbine maker Vestas (VWDRY) has scored a slew of U.S. orders ahead of the deadline. The deadline also has implications for struggling turbine component/software maker American Superconductor (AMSC -1.3%).

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Comments (1)
  • youngman442002
    , contributor
    Comments (5123) | Send Message
    These have been around long enough to have a working report of actually how they are doing....I would suspect they are not as Profitable as they are sold....the ones I see are always down..not working...I don't know why they just are not turning
    26 Dec 2013, 02:18 PM Reply Like
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