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Tax Breaks & Subsidies and Wyoming
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Sales tax exemptions designed to encourage alternative energy development in Wyoming may be hurting local communities' ability to cope with the impacts.
But the tax incentives are also bringing such projects to Wyoming, and communities should consider the long-term benefits, including good jobs and new opportunities, a state lawmaker says.
The tax exemption "sunset" date was extended from 2008 to June 2012 during last year's legislative session.
Companies building alternative energy projects, such as wind farms, enjoy an exemption from paying sales taxes on materials during construction. ...Despite the potential long-term benefits, proposals such as the Glenrock-area wind farms have up-front costs communities have to shoulder, including bringing roads up to par and increasing some social service and law enforcement programs. Usually, increases in sales taxes boost local governments' coffers as projects take hold.
DOUGLAS -- The monetary impact on Converse County of a proposed wind project in Glenrock may be realized as soon as construction starts through impact assistance payments from the state Department of Environmental Quality's industrial siting division.
From that division, Tom Schroeder prepared the county commissioners Tuesday for what he said could be a "fast and furious" process as Rocky Mountain Power files its application for an industrial siting permit this fall. In conjunction with the permit, the state Industrial Siting Council will decide what sort of money it should approve for the county as impact assistance fees.
State permits are required for all projects with construction costs of $163 million or more. The council evaluates the socio-economic and environmental impacts of the construction work on communities before issuing construction permits. The assistance fees are intended to help communities address impacts.
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