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Production tax credit (PTC) — Energy Glossary | Pilot Energy

Written by Pilot Energy | May 26, 2026 4:22:23 PM

Production tax credit (PTC)

Category: Policy

A US federal tax credit paid per kilowatt-hour of electricity generated from qualifying renewable sources over a 10-year period. Wind projects have historically chosen the PTC over the ITC. Under the IRA, the PTC base rate is 0.3 cents/kWh, scaling to 1.5 cents/kWh with prevailing wage and apprenticeship requirements.

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