News
Category:
Tax Breaks & Subsidies
Town balks at sharing wind revenue; Chairman pushes for legal shift
August 28, 2008 by Paul Snyder in Daily Reporter
August 28, 2008 by Paul Snyder in Daily Reporter
While Randolph's chairman is optimistic about a 145-megawatt wind farm development, he's bothered by how much money - or rather how little - the town will get in the deal. ...Under the Wisconsin Department of Revenue's shared revenue utility payment guidelines, $2,000 per megawatt of power generated is split between the county and town. The county gets two-thirds, while the town gets one-third.
For a 145-megawatt project, that would provide roughly $96,667 per year to be split between the towns of Randolph and Scott, which also would house some We Energies' turbines, while the county would take in about $193,332.
Also filed under [
Impact on Economy|
Wisconsin]
At Tuesday's Board of Education meeting at Jefferson Middle School, school officials decided to opt out of Section 487 of the Real Property Tax Law after hearing from Bill Daly and Rich Dixon of the Chautauqua County Industrial Development Agency. The law makes the installation of energy improvement systems - solar power, windmills - exempt from taxes.
By opting out, the district is placing the IDA in charge of negotiations regarding alternative energy should a company wants to develop wind energy in the county, Daly said. The IDA will be responsible for negotiating tax agreements for the county, city, towns and school districts.
Also filed under [
New York]
Wind energy industry anxious over tax credit
August 28, 2008 by Mark Steil in Minnesota Public Radio
August 28, 2008 by Mark Steil in Minnesota Public Radio
How big a deal is two cents? Well, it's a big deal if you're trying to produce wind energy. A federal production tax credit of 1.9 cents per kilowatt hour is set to expire at the end of the year. Wind energy producers generally expect lawmakers to renew the credit, but Congress has yet to act. With time running out, the wind power industry is scrambling. ...Xcel's Frank Prager said the end of the tax credit on December 31, is rippling through the wind industry. He said many U.S. companies are rushing to finish projects before the deadline.
School tax rate down in Lowville; Wind farm payments may drop as a result
August 28, 2008 by Steve Virlker in Watertown Daily Times
August 28, 2008 by Steve Virlker in Watertown Daily Times
For the first five years, starting with last year, the 195-turbine wind farm's payments are primarily based on the actual amount that would be paid in taxes on the 140 Phase I turbines. Since the assessed value of the turbines is essentially fixed, a drop in combined tax rates would ultimately result in a smaller payment.
Assuming the other major wind farm beneficiaries - the county and towns of Martinsburg and Harrisburg - choose to keep their levies stable, as well, the payment amount will certainly decrease, Mr. McAuliffe said. However, the extent won't be known until county and town tax rates are set in late fall, he said.
Also filed under [
New York]
Stealing from the rich? State's 'Robin Hood' plan may take away school districts' wind energy tax increases
August 25, 2008 by Doug Myers in Abilene Reporter News
August 25, 2008 by Doug Myers in Abilene Reporter News
Wind turbines are generating more than electricity in Coke County. They're also producing significantly more tax dollars for the Robert Lee Independent School District.
And that's the problem. Under the state's "Robin Hood" school funding formula that takes from more affluent and gives to less affluent districts, Robert Lee ISD could end up benefiting little from the cash windfall. ...Under the present system, the state "recaptures" funds from property-wealthy districts and uses them to assist with financing public education in school districts deemed property poor.
Also filed under [
Impact on Economy|
Texas]
Wind energy company welcomes government incentive
August 23, 2008 by Eric McCarthy in The Journal Pioneer
August 23, 2008 by Eric McCarthy in The Journal Pioneer
The two farms, Bartlett reported, represent a $250 million SUEZ Renewable Energy investment.
SUEZ will receive incentives of up to $2.8 million over 10 years from its Norway wind farm, based on a one cent per kilowatt hour rate.
The provincial government's 30-megawatt wind farm at East Point qualifies for up to $9 million in federal funds over 10 years.
How much government incentive SUEZ Renewable Energy NA will receive for energy generated at West Cape wind farm was not disclosed. Bartlett noted only power sold into the domestic market qualifies. Much of the electricity generated at West Cape is destined for the export market.
Also filed under [
Canada]
Marseilles sets Enterprise Zone expansion vote
August 22, 2008 by Jo Ann Hustis in Morris Daily Herald
August 22, 2008 by Jo Ann Hustis in Morris Daily Herald
The request was submitted by Chicago-based Invenergy Wind LLC., which has constructed 66 wind turbines in the Grand Ridge Wind Farm project south of Marseilles, Seneca and Ottawa, and plans to place 200 more turbines in the area.
The approximately 17.5-acre E-Zone extends from south of Ottawa to Marseilles and Seneca in La Salle County, and east through Grundy County to Morris.
Also filed under [
Illinois]
The Westminster government has been accused of putting the development of green energy at risk, by shelving plans to subsidise projects in the Scottish islands.
It means companies setting up renewable energy schemes in Shetland, Orkney and the Western Isles face paying up to 40 per cent of their annual turnover on crippling transmission charges.
The government had planned to bring in a "cap" on the charges to make sure the renewables industry was not put off from developing in these key locations.
Also filed under [
UK]
County Road Dept. to receive $100,000 from wind farm impact fees payment
August 19, 2008 by LeAnne Kavanagh in Glacial Reporter
August 19, 2008 by LeAnne Kavanagh in Glacial Reporter
Also filed under [
Impact on Economy|
Montana]
JPMorgan analysts are recommending investors take a neutral stance on electric utilities and independent power producers, a less upbeat position than the securities firm took earlier this year. ...The firm also said it has received calls from a number of investors worried about T. Boone Pickens' high-profile plan supporting wind power could hurt power prices.
Also filed under [
Impact on Economy|
USA]
Mandates on the use of renewable energy would have a profound impact on the environment, but at what cost?
August 10, 2008 by John Dorschner in Miami Herald
August 10, 2008 by John Dorschner in Miami Herald
A crucial argument about the best way to combat global warming comes down to two alternatives that may seem deceptively simple:
• Force utilities to make a certain percentage of electricity from renewable resources, such as solar and wind.
• Make utilities pay a stiff fine for the greenhouse gases they produce from coal and natural gas, then let the utilities figure out the most economical way of reducing their emissions. ...The debate boils down to three key points: Are renewable standards the best way to deal with greenhouse gases? How expensive are renewables, particularly in the Southeast? And what's the best renewable for Florida?
[Stewart] Umholtz, Tazewell County state's attorney, last week said he will pursue legal action against his own County Board's decision to extend an existing enterprise zone, allowing a wind farm development to be eligible for a sales tax abatement. He seeks an Illinois Attorney General's Office opinion on the matter.
One of the points Umholtz disagrees with is the issuance of a 3-foot extension many local governments, including the city of Peoria and Tazewell County, utilize to extend their enterprise zones.
Also filed under [
Illinois]
No action on energy as Congress adjourns
August 2, 2008 by Steve Mufson and Paul Kane in Press Democrat
August 2, 2008 by Steve Mufson and Paul Kane in Press Democrat
After two months of fever-pitch debate over how to deal with the soaring price of oil, Congress left town Friday without doing anything on energy.
The final day featured a group of raucus Republicans who remained on the House floor after an adjournment vote was passed, the microphones turned off and the lights dimmed, demanding that Democratic leaders return and take action on comprehensive energy legislation.
Also filed under [
Energy Policy|
USA]
Tuscola man drops wind farm lawsuit, says he plans to refile
August 1, 2008 by Daralyn Schoenewald in Abilene Reporter News
August 1, 2008 by Daralyn Schoenewald in Abilene Reporter News
A lawsuit brought against the Taylor County Commissioners Court in April for granting what the plaintiff claims are illegal tax abatements to wind farms in the county was dropped Thursday with little fanfare.
Tuscola resident Dale Rankin, an opponent of wind energy, filed the lawsuit in April alleging that wind energy equipment is not eligible for tax abatements under the state tax code.
Rankin said he decided to "nonsuit," or essentially drop, the lawsuit because of what he called "procedural issues."
However, he said he plans to refile the lawsuit.
State money major factor in windmill plan in Green Tree
July 30, 2008 by Margaret Smykla in Pittsburgh Post-Gazette
July 30, 2008 by Margaret Smykla in Pittsburgh Post-Gazette
The borough has applied for two Department of Environmental Protection grants, each for $168,000, to fund a proposed $173,000 windmill and solar electric system. The borough would pay $5,000 toward the overall cost.
Borough Manager Dave Montz said if one or both grants are awarded, the total amount will not exceed $168,000.
Council President Mark Sampogna said, however, he is unsure if council will approve the project, even if funding is secured.
The height of proposed installation, 100-feet to 120-feet, could have a negative impact on the appearance of the park, he said.
Also filed under [
General|
Pennsylvania]
Congress blows hot and cold over tax breaks for wind energy
July 27, 2008 by Kent Garber in US News and World Report
July 27, 2008 by Kent Garber in US News and World Report
Over the past few years, wind energy has experienced a tremendous, if precariously fragile, boom.
Last year alone, wind-power capacity jumped 21 percent in the United States. Wind is now one of the country's fastest-growing electricity sources, buoyed by strong consumer demand, mounting concerns about fossil fuels, and-perhaps most notable-vital government support.
But uncertainty about key federal tax credits threatens to knock the wind out of the wind-power industry.
Also filed under [
USA]
The production tax credit pays about 20 dollars per megawatt hour.
So a single wind turbine like one at Wildorado, can make up to 45 dollars an hour or over 400 thousand dollars a year.
This money is essential for developers because it can cost hundreds of million dollars to build a wind farm.
"Most of the companies I've visited with say wind energy would not be financially feasible without this federal tax credit that goes with production," said Congressman Mac Thornberry.
Also filed under [
USA]
The Westfield and Ripley school districts, as well as some municipalities such as the town of Portland, have chosen to opt out of the tax exempt status wind energy developers are eligible to receive.
"Wind farms fall under some tax exemption which taxing jurisdictions can reject (opt out of)," Peter Gross of Babcock and Brown explained. "This requires that we get a PILOT (payment in lieu of taxes) agreement with the county, otherwise our assets would be assessed at their full value, resulting in a tax payment that would kill the project economics.
Also filed under [
New York]
Cattaraugus County Legislature to assess lawyer fees for wind farm
July 21, 2008 by Kathy Kellogg in The Buffalo News
July 21, 2008 by Kathy Kellogg in The Buffalo News
The Cattaraugus County Legislature will decide Wednesday whether to spend $25,000 on a law firm to help negotiate payments from future wind farm developers within the county.
Several lawmakers have stated they hope to keep the Cattaraugus County Industrial Development Agency from collecting a percentage of a project worth several hundred millions of dollars, and several said they first want to meet with lawyers in person before agreeing to a contract. The requested $50,000 appropriation was halved after the Finance Committee amended the legislation during the initial round of discussion last Wednesday.
Also filed under [
New York]
A federal clock is ticking on an ambitious Texas Public Utility Commission plan to build transmission lines to funnel wind energy from West Texas to metropolitan areas.
The wind energy industry revolves around a production tax credit that expires Dec. 31. After more than one false start, there is no guarantee Congress will extend it.
Expansion will halt, some warn, if lawmakers don't take action this summer.
"We don't want lines to just be standing out there," Sweetwater Mayor Greg Wortham said of the planned transmission lines. Wortham is also director of the West Texas Energy Consortium.
Until a turbine is producing juice -- no credit.
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