Articles filed under Taxes & Subsidies
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.
The Ministry of Economic Affairs yesterday cut the preliminary feed-in tariff for offshore wind energy developers over the next 20 years by 12.7 percent due to falling installation costs, dealing a blow to developers that were expecting it to remain the same.
Renewable energy supporters are bracing for a fight in the next legislative session. Help state lawmakers give to solar and wind companies must be renewed when lawmakers return to Austin in January.
“The amount to be raised by taxes was $12,000 less than last year, but because of the windmill assessment [reduction], there wasn’t much we could do,” Jones said.
Brian Hermanson, the Kay County district attorney, said he was shocked that Rock Falls Wind Farm and Blackwell Economic Development Authority officials came up with the tax avoidance plan in secret and then sprang it on county officials at the last minute. “They didn’t tell us about it until it was all over and the wind farm was built and it was time to assess,” he said. “I was shocked at the manner they did it. I was shocked that they would try to cut the school systems from the money they had coming and the county health system from what they had coming and county government, for that matter.”
Pending lawsuits over a northern Oklahoma wind farm’s property tax liability could have more than $1 million worth of implications for state education funding, according to Brady Barnes, superintendent of Newkirk Public Schools. But while the suits await action in court, leaders of Kay and Grant counties, the Oklahoma State Department of Education and a subsidiary of Électricité de France are attempting to strike some sort of agreement that would prevent what Barnes says could be a $550,000 impact on his district come January.
Energy company EDF Renewables intends to reverse its controversial Rock Falls Wind Farm bond agreement that had complicated school financial situations for northern Oklahoma districts, according to company representatives. The decision was made after an Oct. 24 meeting with school superintendents and will likely preserve revenues for those districts.