by Institute for Energy Research
Institute for Energy Research
December 03, 2013
This paper examines the distributional impacts of the wind production tax credit (PTC). The top ten proxy PTC-taking states in 2012 received over 72 percent of the total PTC subsidy transfers for 2012. These top 10 states include Texas, Iowa, Oklahoma, Illinois, Minnesota, Washington, California, Colorado, Oregon, and North Dakota. According to our calculations, taxpayers in 30 states and the District of Columbia paid more to the federal government in 2012 to support wind subsidies than wind producers in those states received. Of those 30 net losing states, 11 states and the District 2 of Columbia had no wind production and received zero subsidies but still paid their share of the tax burden related to federal wind subsidies. We estimate that five states are net payers of more than $100 million: California, New York, Florida, New Jersey, and Ohio.