Articles filed under Taxes & Subsidies from Oklahoma
"If we don't do something truly meaningful this session, not next session, another $70 million is literally going to be gone with the wind," Brecheen said. The senator said the bill would end corporate welfare payments, not by eliminating the tax credit, but by eliminating the refundability aspect of it.
Giving teachers in Oklahoma a raise is past due. WindWaste was established on the premise that more funding for education was critical, and the industry that has profited most in recent years from Oklahoma subsidies should contribute.
If the state has been reimbursing county school districts for wind’s ad valorem taxes, then this has not expanded the total funds to school districts at all; it has just forced the state to transfer dollars from the General Revenue Fund that otherwise would have been earmarked for school districts across the state to those rural districts near wind facilities. Robbing Peter to pay Paul does nothing to help education.
Legislative panels on Thursday passed House Bill 3710, which would put a $35 million cap on the zero emission tax credit. Last year, lawmakers decided to sunset the tax credit in 10 years for new production. The clock began ticking July 1.
Two bills, one in the House and another in the Senate, have proposed capping the state's zero emission tax credit. In 2016, Oklahoma paid $74 million in zero emission tax credits, which the legislature is proposing to cap at $5 million or $10 million.
Yates said the legislators don’t understand that the tax credits were built into the business models when the wind industry companies won state approval to build wind farms in Oklahoma. “These projects are not profitable for the first 12 years of existence,” he explained. The Wind Coalition leader said for the state to go back and change the rules “of the game so dramatically after these projects are already up and spinning, the investment is there and now to go back in and change is devastating.”
McBride is proposing a $1 per megawatt hour tax on wind power, as well as eliminating the industry’s manufacturing sales tax exemption. Other lawmakers want to cap incentives already awarded to existing projects. After 20 years, McBride said it’s time to stop subsidizing the wind industry.
Wind energy advocates are speaking out as lawmakers confirm one piece of their proposed budget plan includes placing a gross production tax on wind energy. The tax could be 4 percent for 36 months and 7 percent after that.
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.
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.