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Tax Breaks & Subsidies and Texas
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When Young County commissioners began discussing details of the abatement with special counsel Alan Carmichael last week, the majority seemed very interested in finding a way to maximize the amount of money Young County stands to bring in if the farm is built.
While that makes perfect sense up front, it could prove perilous to the entire project. With several other counties vying for wind farms from BP, it may not take much to sway the company one way or another. In Archer County, rumor has it that commissioners are planning to agree exactly to the proposal made by BP.
Also filed under [
Impact on Economy]
There's a price for subsidizing wind energy with taxpayer dollars
June 8, 2008 in Abilene Reporter News
June 8, 2008 in Abilene Reporter News
Much has been written about the merits or demerits of wind energy as a viable source of electricity generation for meeting the growing needs of electricity consumption in the United States.
No matter which side of the debate one comes down on, one issue is crystal clear. Trillions of taxpayer dollars are being poured into the wind energy corporations' coffers to enhance the return on investment strategies with a guaranteed commitment by federal, state and local governments for a 10-year period.
According to a recent report by the National Renewable Technology Laboratory (DOE), wind energy could account for 20 percent of the nation's electricity by 2030. To reach this target, wind turbines would have to produce 300,000 MW of power or 1,000,000 MW installed capacity. The 500,000 plus wind turbines would cost the taxpayers between $5-7 trillion.
Also filed under [
USA]
In reality, this project should generate for its investors about $2.46 billion over 20 years through the sale of power and Texas renewable energy credits, which are paid by Texas ratepayers. An additional $333 million in federal production tax credits will be added to the revenue stream, along with an anticipated county and school tax abatement (tax forgiveness) generally demanded by all wind project developers of between $125 million and $265 million, depending on the project cost. With the project taking advantage of almost half a billion in tax abatements and credits (some directly out of school district funds and state school funds), lease royalties of only $34 million to $112 million to benefit the state education fund hardly add up to "a good deal." Simply put, Texas public school children, and all Texas residents, will be harmed from a revenue standpoint if the Superior project is built.
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General]