Library filed under Taxes & Subsidies from Oklahoma
The Oklahoma Tax Commission has said it expects to pay nearly $12 million to producers of renewable energy — mostly wind farms — in zero-emission tax credits this year. The commission projects those payments to swell to $19.1 million by 2018.
Dank said the wind tax credits, among the most costly issued by state government, benefit some companies that are selling the power they generate to other states. "The Oklahoma taxpayers are being asked to subsidize electric customers in Tennessee and Alabama," he said.
Rep. David Dank, chairman of the Task Force on State Tax Credits and Economic Incentives, said the fact that the tax credits being analyzed are transferrable is particularly troubling. This means the tax credits are frequently sold for less than their value to reduce the tax liability of companies in an unrelated industry.
A moratorium on a state wind energy tax credit still will go into effect July 1, but the length of time it will last has been cut in half. Curt Roggow, government relations consultant for The Wind Coalition and the city of Enid, said the state's moratorium on the production tax credit has been reduced from two years to one year, following state budget talks last week.
The Senate Bill 1267, which calls for the scrapping of a number of tax credits, has been approved by the Senate. It will reportedly save $25million, with $600,000 of that earmarked for the zero-emission facility tax credit. The zero-emission tax credit was passed in 2005.
Wind industry officials are worried that pending legislation to put a two-year moratorium on tax credits for electricity generated by zero emissions facilities could kill the industry's growth prospects in Oklahoma.
Producers, lobbyists and analysts are watching closely as Congress continues to weigh numerous tax provisions related to both renewable sources and to traditional oil and natural gas. Action this week was in the Senate, where an overwhelming majority approved an amendment dealing with tax breaks for renewable energy to House Resolution 3221, the Foreclosure Prevention Act of 2008. ...One analyst and an electricity producer, in fact, were watching one issue specifically - the extension of a tax credit through 2009 for producing electricity from renewable sources, such as wind. Simply put? They were hoping for a longer extension.
OKLAHOMA CITY (AP) - Consumers who purchase wind turbines to provide electricity for their homes would get a tax break under a bill approved Tuesday by the Oklahoma Senate. Under the bill, consumers could get a 40 percent tax credit on the cost of a wind turbine. Critics said it was not economically feasible for most homeowners since the average cost of a wind turbine for home use is about $50,000. Some objected to the bill because it also gives the same tax credit to solar energy devices. Sen. Mike Johnson, R-Kingfisher, called the bill "irresponsible."
Wind power is booming — not necessarily because of the environmental benefits, but because of the cash they spin off.