Wind-based energy could soon become a reality for Garfield County, but a potential moratorium on tax incentives for wind energy companies could impede the county's progress in that endeavor. If the bill is signed into law, it could mean a stop on certain tax credits, including the Production Tax Credit.
Wind-based energy could soon become a reality for Garfield County, but a potential moratorium on tax incentives for wind energy companies could impede the county's progress in that endeavor. If the bill is signed into law, it could mean a stop on certain tax credits, including the Production Tax Credit.
ENID - Wind-based energy could soon become a reality for Garfield County, but a potential moratorium on tax incentives for wind energy companies could impede the county's progress in that endeavor.
Last Friday, the House and Senate agreed on a $6.68 billion state budget bill for the upcoming fiscal year, beginning July 1. The bill must now be signed into law by Gov. Brad Henry.
If the bill is signed into law, it could mean a stop on certain tax credits, including the Production Tax Credit, a credit that benefits companies that produce wind-based energy.
Brent Kisling, executive director of Enid Regional Development Alliance, is worried if the moratorium is indeed imposed, it could cost the county jobs and thousands of dollars.
"I …
... more [truncated due to possible copyright]ENID - Wind-based energy could soon become a reality for Garfield County, but a potential moratorium on tax incentives for wind energy companies could impede the county's progress in that endeavor.
Last Friday, the House and Senate agreed on a $6.68 billion state budget bill for the upcoming fiscal year, beginning July 1. The bill must now be signed into law by Gov. Brad Henry.
If the bill is signed into law, it could mean a stop on certain tax credits, including the Production Tax Credit, a credit that benefits companies that produce wind-based energy.
Brent Kisling, executive director of Enid Regional Development Alliance, is worried if the moratorium is indeed imposed, it could cost the county jobs and thousands of dollars.
"I fear that if that goes through and it's signed into law by (Gov. Henry), it will negatively impact the possibility of our two wind developers that are developing in Garfield County," Kisling said.
Two companies, TradeWind Energy and RES Americas, already have leased 100,000 acres of land in Garfield County to build wind farms. One of them would be a 200-kilowatt wind farm.
The 200-kilowatt wind farm alone would be an approximate $200 million investment in the community, Kisling said.
Kisling said the land the two wind energy companies own now is out for bid, which means they are trying to sell the land to electric companies.
Once the companies sell the land, they can start building wind turbines for the electric companies to use.
The Production Tax Credit gives wind energy companies in Oklahoma a half-cent per kilowatt hour credit, Kisling said.
If the moratorium is imposed, it could cause the two companies to delay production of their respective wind farms until at least 2012, when the moratorium might be lifted.
But there are Oklahomans working to make sure the moratorium of the credit is rescinded from the budget.
Curt Roggow, government relations consultant for The Wind Coalition and the city of Enid, is one of the individuals working on persuading the governor to throw out the moratorium on the Production Tax Credit.
"At a time when there's a deficit in the state, we want to think about ways to improve the economy," Roggow said. "Slowing down the construction of wind farms is not a solution to build a recovery from (the recession)."
Roggow said he was working with legislators on the issue Monday, and hoped a solution would be reached by today or Wednesday.
Roggow said in general the moratorium on certain tax credits will affect more than the wind energy industry.
"The business community is very upset because the moratorium on a number of tax credits are a direct hit on small businesses around the state of Oklahoma," Roggow said.
If approved, the moratorium on the Production Tax Credit would take effect July 1 and last two years.