Articles filed under Taxes & Subsidies
Sen. Randy Smith, R-Tucker, spoke in favor of the bill. He said when the Legislature created the tax break in 2001, it should have added a sunset clause. He added that other industries don’t receive as generous a break.
But Reed, a New York Republican who supports the tax credits, says their [tax credits] preservation should not be taken for granted as Congress attempts to reform the byzantine US tax code for the first time in a generation. Tax reform is expected to be the next major legislative battle following healthcare reform. “There are no guarantees in Washington,”
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.
After the committee recommended legislators indefinitely suspend Ohio’s portfolio standards, the Legislature sent to Kasich’s desk a measure that would have delayed implementation until 2019. Kasich vetoed the bill two days after Christmas.
Swanton Wind sought to have GMP buy power from the planned wind farm under prices established through PURPA; however, the pricing regime Swanton Wind applied under expired in September, 2016. Green Mountain Power fought that effort, saying that Swanton Wind filed its application too late. The Public Service Board agreed,
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.
As the O’Brien County Assessment of Wind Energy Conversion Property ordinance requires, MidAmerican Energy Company (MEC) recently reported to the assessor’s office the final net acquisition cost figure for the recently completed and commissioned O’Brien Wind Energy Project located in northern O’Brien County along Highway 18 near Sanborn.
The new treasury secretary, Steven Mnuchin, has voiced his support for the current five-year phase-out of the production tax credit (PTC), easing fears that it might be scrapped to help pay for big cuts to corporate tax rates. But some of the changes being proposed could curb the availability of tax equity and the amount of tax benefits for projects, increase the cost of debt, and ultimately drag down internal rates of return for developers.
Wind power generators received $600 million in federal subsidies last year, helping to drive an increase in electricity prices for consumers. Data collated by Australian Power Project, which advocates a sustainable national energy policy, showed $588.7m was paid to wind farm operators.
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.
While the PTC has fueled big booms in US wind installations, it has also added a layer of complexity to the market by requiring many developers to secure tax equity. That additional complexity has been especially prohibitive for smaller developers and those based in other countries.
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.
Renewables producers will have to repay any financial support received in addition to the feed-in tariff to the national electricity system, according to a decree published by the industry ministry.
Congress’ renewal of the production tax credit in 2015 gave wind farm developers a powerful incentive to retrofit turbines, said Alex Morgan, a New York-based analyst for Bloomberg New Energy Finance. Thousands of turbines totaling 9,700 megawatts across the U.S. are between 10 and 20 years old, making them a prime target for upgrades, she said.
Plus, when the new subsidies are combined with existing federal cash, the amount in subsidies NextEra and Invenergy will be collecting will exceed the prevailing wholesale price of electricity in the state by nearly $13 per megawatt-hour.
Contention over wind development started in 2011 when the Michigan Tax Commission (STC) arbitrarily changed the taxing methodology and depreciation on wind turbines. The change lowered taxable values on turbines along with a faster depreciation rate.
With a four-year construction window for projects already qualified under the full PTC, does the smaller tax credit still matter? asks Karl-Erik Stromsta The US wind production tax credit (PTC) may have started its terminal decline on 1 January — dropping to 80% of its former value, on its way towards nothing in 2020 — but industry experts say it still has some kick in it.
The US wind industry would be wise to “lay low” as the Trump administration settles in, rather than mounting a noisy lobbying campaign, advises Gabriel Alonso, chief executive of EDP Renewables North America, one of the continent’s most important wind developers.
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.