Articles filed under Taxes & Subsidies
Although the three commission members all voted to approve the agreement, they each acknowledged the risks associated with the wind farm and the uncertainties surrounding the benefits to electric customers. If the price of certificates representing the environmental benefits of renewable energy fails to increase as projected, then the contract could cost consumers in the long run, said commissioner Abigail Anthony. Additionally, much of the savings are expected to come on windy winter days when the wind farm is expected to displace more expensive oil generators or natural gas-burning plants that may charge a premium. If those savings are lower, the net benefits may be too, Anthony said.
The task forces are expected to determine by the end of June long-term solution possibilities that can be enacted this year, "to end the annual extenders drama and provide certainty to the taxpayers who utilize those provisions," Finance Chairman Chuck Grassley, R-Iowa, said in remarks on the Senate floor.
How to cope with corporate buyers passing over wind projects to pursue solar’s tax credits was the topic dominating the American Wind Energy Association’s annual conference in Houston last week. Unless wind developers can get prices down, the industry will see a 50% drop in new installations over the next five years.
An extension of the credits would need the backing of Senate Republicans to pass and would represent a bonanza for the solar and wind industries. Rooftop solar installer Solar City Corp. surged 34% after the 2015 deal was announced. BloombergNEF predicted the credits’ extension would lead to $73 billion in new investment and a 56% increase in new wind and solar capacity.
“In December 2018 and during the first quarter of 2019, we learned of allegations by federal authorities of fraudulent income conduct by the sponsor of these funds,” Berkshire said Saturday in the filing, without naming the sponsor. “As a result of our investigation into these allegations, we now believe that it is more likely than not that the income tax benefits that we recognized are not valid.”
To incentivize clean electricity, the bill would provide a production tax credit (PTC) or investment tax credit (ITC) to facilities that are at least 35% cleaner than average. It would be available as either a PTC with a maximum of 2.4 cents per kilowatt-hour or an ITC of up to 30%.
The Massachusetts Department of Public Utilities approved multibillion dollar offshore wind contracts with Vineyard Wind on Friday and, over the objections of Attorney General Maura Healey, authorized the state’s three utilities to collect an additional $168 million from ratepayers just for carrying the contracts on their books.
“There is no guarantee on how long the wind turbines will last, that being said we chose to have regular taxes paid rather than lower equal payments over the 30 years,” Wilde said. “The difference in the first year would be approximately $1 million and then decrease each year after. But there are variables as to how much they might decrease.”
As Massachusetts gets ready to issue its second request for offshore wind proposals, the state is weighing whether to speed up its procurement process to allow developers to reap federal tax benefits. Energy developers and environmental groups are encouraging the state to launch the solicitation as soon as next month.
Once the five years of exemptions are over, wind companies have been sending lawyers to county courthouses to file tax protests and lawsuits contending the value of their equipment is worth hundreds of millions of dollars less than the values assigned to them by county assessors. Wind industry representative claim they have good cause for their tax protests.
Two controversial wind energy bills that could be heard this legislative session calls for stripping companies' tax incentives and making them pay a new tax. Critics say the bills raise red flags for future business in Oklahoma.
A company claims Government assistance for a €26m wind farm project is being jeopardised by a farmer's refusal to comply with an agreement he made to permit cabling work to be carried on his land, the Commercial Court heard.
"The Jacksonville Journal Courier estimated that Jacksonville Public Schools would get about $75,000 in the very first year. ...When you put that into perspective and look at those dollars compared to annual budgets, we have an annual budget of right around $38 million a year. $75,000 a year I don’t think is enough to make an advertisement that’s saying that the local community is going to benefit at a number of $43.8 million,” Ptacek explains.
ISO New England is opposing Vineyard’s request and advised the company to wait until next year, when the renewable technology exemption it’s seeking will be available. “The auction is already underway,” said Matthew Kakley, an ISO New England spokesman. “A delay would be unfair to the hundreds of other market participants.”
The Wharton County Commissioners Court unanimously decided not to move forward with a 312 tax abatement application from Wharton Wind, LLC during its Monday session. The 5-0 decision came in front of dozens of people who packed the meeting room inside the Wharton County Annex Building in Wharton.
A Jan. 7 Federal Claims Court decision sided with the Treasury Department and ordered a wind energy developer to pay back $5.63 million in grants in lieu of tax credits, an inflated amount that stemmed from the company’s advantageous tax planning.
A rush to meet deadlines for securing production tax credits (PTCs) in the US could lead to project cancellations and postponements and put billions of dollars of revenue at risk, analysts predict. More than 23GW of new capacity is expected to be installed in 2019 and 2020, according to forecasts from Wood Mackenzie Power and Renewables (WMPR).
The feed-in-tariff needs to reflect the extraordinarily high costs faced by Greater Changhua 1 and 2a, mainly related to creating a local supply chain at scale, reinforcing the onshore grid infrastructure and building, operating and maintaining offshore wind farms in challenging waters where typhoons and earthquakes occur.
The price quoted by Nautilus was too high given the unsubstantiated benefits, and therefore an unacceptable burden for the state’s ratepayers. This includes the proposed OREC starting price plus the annual escalator. Board staff made this clear to Nautilus at multiple points during negotiations over the last three months, but the price never came down to an acceptable level.
RAWLINS – Dr. Rob Godby, an expert with the University of Wyoming Center for Energy Economics and Public Policy, told attendees at the annual Carbon County Economic Development meeting on Monday that a large wind production tax hike could hinder local production.