To the Group:

Our affiliate WindTower Composites is developing lower cost craneless towers for 1.5MW+ turbines. Because the $200K+ cost of the crane is eliminated, this package is usefull for smaller wind projects. However, small projects are encumbered by a PTC that unfairly bias towards larger projects and developers. After running the finance model it is clear that most of these small projects are able to use very little of the PTC. Even if the right partner where found, finding that partner is such a long process that most of these never get off the ground. Our estimates are less than one in ten. If the PTC could be adjusted to benefit small wind, the amount of these projects across the country would accelerate considerably.

I would suggest that a group be put together to recommend to Congress that the same benefits that investers recieve from putting money into oil well producer programs be created for small wind projects. These include in order of importance:
1) Allowing the credit to be used against active OR passive income for limited partners with no recourse liabilities. (this alone would be a considerable improvement and would reduce the effort to find interested investors and would cost the government very little).
2) Allowing 100% deduction on the capital cost the first year.
3) Allowing 15% of the dividend to be deductible and not subject to recapture.
4) Allowing these benefits to be exempt from AMT.
5) Putting this in place without expiration.

It is interesting when reading the reasons for Congress placing these incentives for oil investors many years ago that they strongly parallel the same benefits if they were in place for small wind. I would even suggest that if there was a concern that this would accelerate to bigger projects that a 20 MW cap be put in place. For an example of how a robust and large secondary tax credit market can be created is to look at how many low income housing credit sponsors there are and how much capital is available in those markets all because Congress created a long term incentive available to small time investors.

I can be reached at
WindTower Composites www.windtowercomposites.com or
tracy@windtowercomposites.com
801-380-4188