Yes, there are a variety of state and federal incentives for wind projects of all sizes. The most well known is the federal production tax credit (PTC), which provides a specified amount per kilowatt-hour produced by the project. Wind project owners then use this tax credit to offset their tax liability. A limitation for the PTC for farmers is that it requires sufficient tax liability to take full advantage of the credit. Farmers can still take advantage of these types of programs by working with investors or developers who are able to use the credit.
USDA also has loan and grant programs (“section 9006” program) for farmers interested in wind energy development.
Many states now have a variety of subsidy programs to encourage wind energy development. It’s important to talk to an expert to get the most up-to-date information about the programs that are available.
For more information: Farmers’ Guide to Wind Energy: Legal Issues in Farming the Wind.
Contributor: Christy Anderson Brekken, Oregon State University
