Fortenberry Supports Legislation to Improve Tax Treatment of Wind Energy

Press Release

Fortenberry Supports Legislation to Improve Tax Treatment of Wind Energy

Congressman Jeff Fortenberry today joined with Congresswoman Stephanie Herseth Sandlin (D-South Dakota) to help introduce the Rural Energy Equity Act that expands opportunities for wind energy production in rural America.

"Wind energy can help create a more sustainable energy future for America," Fortenberry said. "Public policy can play an important role in encouraging wind power development and other renewable energy projects. This legislation makes construction of wind projects easier by repairing an inequity in the income tax code."

"As America works to diversify its energy portfolio, we need to be doing everything we can to ensure that innovative entrepreneurs in rural America have the tools they need to be a part of the new energy economy," Rep. Herseth Sandlin said. "Wind energy in particular is the great untapped resource across a large swath of this country, and this bill will help us expand wind energy projects in a way that bolsters economic development in rural America."

Under current law farmers can get grant and loan guarantees for community wind and other locally-owned energy projects under the Rural Energy for America Program (REAP). They often partner with wind developers to finance these projects. The developers are eligible for the federal Production Tax Credit for financing wind projects, but the credit is reduced if the project involves grants or loan guarantees from REAP. This legislation allows wind producers to be eligible for the full tax credit regardless of whether REAP funding is involved in the project.

As a member of the House Agriculture Committee, this is the latest of Fortenberry's initiatives to expand the opportunities for alternative energy in rural America.

Source