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ARTICLE · 25 AUGUST 2005

Wind Power Financing In Canada And The U.S.

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The financing of wind farms in North America is heavily dependent upon the tax incentives available to investors in each local jurisdiction.

CanadaEnergy and Natural Resources
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Originally published July 2005

The financing of wind farms in North America is heavily dependent upon the tax incentives available to investors in each local jurisdiction. The tax benefits available in Canada, in the form of favorable tax deductions, have resulted in several recent tax-based public offerings of limited partnerships that invest in flow-through shares issued by wind developers.

By contrast, the "on-again, off-again" production tax credit in the U.S. has stimulated investment on a sporadic basis in privately financed wind farm developments.

The Canadian experience

In Canada, renewable energy production is a priority. Nowhere is this more obvious than in the realm of wind energy production. AU levels of Canadian government (both federal and provincial) have provided several incentives to promote investment in Canadian wind energy projects.

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