Another federal tax break in the USA available to wind power investors, in addition to the Production Tax Credit, is provided by the “Modified Accelerated Cost-Recovery System” established in 1986. Utility-scale wind projects can be depreciated over an accelerated schedule of 5 years.
Starting in 2008, wind projects could also claim “bonus” depreciation, a “special depreciation allowance”, of 50% in the first year that they are placed in service. Projects acquired and placed in service in 2011 were eligible for 100% “additional first-year depreciation deduction”. It reverted to 50% for 2012–2014, and in 2017, 100% first-year bonus depreciation was restored for projects acquired and placed in service in the years 2018–2022.