Library filed under Taxes & Subsidies from Oklahoma
Oklahoma paid nearly $143 million in subsidies to wind companies in 2015, between property tax reimbursements and the zero-emission tax credit, according to a study released this week.
A $4.5 billion wind farm and transmission line announced last week by Public Service Co. of Oklahoma and a sister utility needs a quick answer from Oklahoma regulators so the project can fully qualify for federal tax credits for renewable energy.
[T]he initial assessment for their property was valued at around $187 million which the company is required to pay taxes on to the county. Following an informal protest a second assessment to about $177 million. Now the company is asking for the value to be lowered to around $60 million. ...The Excise Board ruled against Taloga Wind and upheld the second assessment.
Events in Oklahoma have raised concerns over states’ readiness to continue subsidy support in an era of budget cutbacks and fiscal constraints, while potential trouble is also brewing in California, Iowa and Texas, suggesting that the industry’s ability to lobby effectively on crucial issues will soon be put to the test.
A simple way to make up some of that shortfall is for wind developers to pay sales tax on their purchases, just like nearly everyone else in Oklahoma. Each new wind turbine, which is manufactured somewhere else and shipped into Oklahoma, could net the state about $90,000 in sales tax revenue.
Oklahoma's Former Governor, Frank Keating, explains in this 60-second advertisement how he made a mistake in passing a law that helped fund the wind industry in his state and handed the bill to the state's taxpayers.
House Bill 2298, by Speaker Charles McCall, R-Atoka, and Senate Pro Tem Mike Schulz, R-Altus, sets the expiration date at July 1 rather than allowing it to continue until 2021.
While wind energy is clean and renewable, it creates relatively few permanent jobs and most of the power (and the profits) go out of the state. ...The petroleum industry pays taxes on the energy it produces and creates an enormous number of jobs and wealth inside the state.
The Oklahoma Senate has overwhelmingly voted yes on a bill that would move up the sunset date of the state’s wind power tax credits to July 1.
House Bill 2298, by Speaker Charles McCall, R-Atoka, would end the zero-emissions tax credit July 1, more than three years earlier than its current sunset date. The bill passed, 74-24, over the objections from some lawmakers that it could jeopardize wind projects already in an advanced stage of development.
Oklahoma wind developers are fresh off a record-setting year. Only Texas installed more wind capacity in 2016, a fact that thrusts the Sooner State's power markets into a sudden transition and is agitating opponents along the way.
Gov. Mary Fallin, R-Okla., recently released her proposed 2018 executive budget, which includes two new anti-wind tax proposals. The first proposal would end the zero-emission tax credit for wind facilities placed in service after 2017. The second proposal would begin taxing the production of wind energy at $0.005/kWh produced.
Signing this legislation was simply a mistake. What was promised to cost the state less than $2 million annually when I was in office has soared to $113 million for the 2014 tax year and is expected to cost billions in the future. Wind farms average 10 percent to 13 permanent jobs, which hardly lives up to the promised employment growth. ...As your former governor and a proud citizen of Oklahoma, I encourage us all to work together to end this subsidy no later than July 1, 2017.
State Rep. David Brumbaugh, author of House Bill 2246, said the cost is much more than officials first had in mind when they created the credit. He also said that wind generation has exceeded the goal set by former Gov. Brad Henry that renewable energy should make up 15 percent of the state's power generation by the year 2015. It's now at 20 percent, Brumbaugh said.
Oklahoma would become the second state to impose a tax on wind power, and its tax would be the nation's highest, under a proposal announced Monday by Gov. Mary Fallin. In her executive budget, Fallin proposed a 0.5 cent per kilowatt hour tax on electricity from wind generation. She also wants to sunset existing tax incentives for the wind industry earlier than planned.
State Sen. Bergstrom has filed a bill that would cap tax credits at $25 million statewide for electricity generated by zero emission facilities, including wind energy, and another that could use the savings to provide a graduated teacher pay raise over the next three years.
Outgoing Senate Finance Chairman Mike Mazzei addressed the Incentive Evaluation Commission recently in support of a report that examined the cost versus benefits of the state’s Zero Emission Facility tax credit. The PFM consulting group determined the cost significantly exceeds the benefits of the program, and recommends that the credit termination date should be accelerated.
An Oklahoma tax credit that provides millions of dollars to the wind industry yearly is overly generous and should be curtailed sooner than planned, according to a consultant's report considered by a state committee Friday.
A group opposed to wind power incentives said Oklahoma's budget could be on the hook for as much as $5.2 billion in future claims through 2030 if the state's zero-emissions tax credit is allowed to continue, an amount the wind industry said is highly inflated.
Windwaste, an advocacy group pushing for a more equitable taxation on the wind industry, says under the current tax law, recent wind farm generation growth announcements and projects in the works could cost the state more than $2.4 billion over 10 years.