The 1889 Institute, an Oklahoma state policy think tank, recently published a two-page fact sheet, “Wind Energy Tax Credits,” discussing how detrimental wind energy tax incentives are for the state’s economy.
The fact sheet briefly discusses the history of wind energy, outlines zero-emission tax credits, highlights the problems with wind-generated energy, explains cronyism, and suggests solutions moving forward.
“Wind credits are estimated to cost the federal government about $1 billion in lost revenue each year,” said Byron Schlomach, the fact sheet’s author and 1889 Institute State Policy Director. “These credits result in a revenue loss for the state, estimated at $88 million for the current fiscal year and $123 million in 2017.”
Schlomach adds that wind energy is thought to have many benefits; however, in reality, the perceived benefits are an economic waste. Wind is an unreliable source of energy and the electricity it generates cannot be stored on a mass scale. This means that there must be an investment in duplicate conventional generation that, due to its backup nature, is relatively costly. In addition, windmills pose a threat to the environment, harming landscape and birds alike.
“Repeal of the credit, allowing currently credited projects to continue, but not allowing credits for future projects, would minimize the incentive’s future negative impacts on the state’s revenues and economy,” said Schlomach.
For more information regarding Oklahoma’s wind energy tax credits, visit www.1889institute.org/cronyism.html.