Incentives and community benefits[edit]
U.S. landowners typically receive $3,000–$5,000 annual rental income per wind turbine, while farmers continue to grow crops or graze cattle up to the foot of the turbines.[124] Shown: the Brazos Wind Farm in Texas.
Some of the 6,000 wind turbines in California's Altamont Pass Wind Farm aided by tax incentives during the 1980s.[125]
The U.S. wind industry generates tens of thousands of jobs and billions of dollars of economic activity.[126] Wind projects provide local taxes, or payments in lieu of taxes and strengthen the economy of rural communities by providing income to farmers with wind turbines on their land.[124][127] Wind energy in many jurisdictions receives financial or other support to encourage its development. Wind energy benefits from subsidies in many jurisdictions, either to increase its attractiveness, or to compensate for subsidies received by other forms of production which have significant negative externalities.
In the US, wind power receives a production tax credit (PTC) of 1.5¢/kWh in 1993 dollars for each kW·h produced, for the first ten years; at 2.2 cents per kW·h in 2012, the credit was renewed on 2 January 2012, to include construction begun in 2013.[128] A 30% tax credit can be applied instead of receiving the PTC.[129][130] Another tax benefit is accelerated depreciation. Many American states also provide incentives, such as exemption from property tax, mandated purchases, and additional markets for "green credits".[131] The Energy Improvement and Extension Act of 2008 contains extensions of credits for wind, including microturbines. Countries such as Canada and Germany also provide incentives for wind turbine construction, such as tax credits or minimum purchase prices for wind generation, with assured grid access (sometimes referred to as feed-in tariffs). These feed-in tariffs are typically set well above average electricity prices.[132][133] In December 2013 U.S. Senator Lamar Alexander and other Republican senators argued that the "wind energy production tax credit should be allowed to expire at the end of 2013"[134] and it expired January 1, 2014 for new installations.
Secondary market forces also provide incentives for businesses to use wind-generated power, even if there is a premium price for the electricity. For example, socially responsible manufacturers pay utility companies a premium that goes to subsidize and build new wind power infrastructure. Companies use wind-generated power, and in return they can claim that they are undertaking strong "green" efforts. In the US the organization Green-e monitors business compliance with these renewable energy credits.[135]