Articles filed under Taxes & Subsidies
Onshore wind continues to be held back by the insistence of chancellor Angela Merkel's CDU party on fixing the minimum distance between wind turbines and residential housing at 1,000 metres. This move will "massively cut back the area available for wind energy", said the BEE. "It will throw regional and federal state planning [for wind energy] into chaos and endanger the whole wind sector," said Hermann Albers, president of BWE, the federal wind energy association.
The Board of Supervisors has voted to opt out of state tax exemptions for solar, wind, and farm waste energy systems. The board on Sept. 9 voted to approve a local law allowing Fulton County to “capture tax revenues” from the development of solar energy facilities and to ensure such facilities are “treated equally” with other commercial properties.
The South Dakota Board of Economic Development stepped off its normal path Tuesday. A majority of board members voted against a reinvestment payment that owners of Triple H Wind Farm had sought for the Hyde County project.
Both Fulton and Montgomery counties had shifted away from the full tax exemption offered by New York state in favor of Payment in Lieu of Taxes agreements in recent years. While PILOTS gradually phase-in full taxation of the land over a 15-year period, both counties have now abandoned that method of taxing renewable energy projects in favor of full-taxation.
In addition to being inefficient and hitting hard on electricity consumers, it cannot be ruled out that the electricity certificate system has contributed to knocking out other fossil-free electricity generation, namely a number of nuclear power reactors, which damages the electricity supply. This subsidy is only a free lunch for some shareholders and should be abolished, says chief economist Jacob Lundberg to DI.
“I felt giving this huge multi-million dollar company tax relief on the backs of our taxpayers is wrong.” The company “already receives subsidies from the government,” she added. Vickman said afterward, “They should pay their fair share of taxes.”
Rosebud County commissioners have hit the pause button on deciding whether a $500 million wind farm warrants a 50% tax abatement. Commissioners tabled a proposal Tuesday to lower taxes on the Clearwater Wind farm to be located near Forsyth. In the works since 2012, 120-turbine farm will generate enough power to electrify 300,000 homes.
With the federal tax credit for offshore wind projects about to expire, every day counts.
Beyond the immediate concerns with permitting, Vineyard Wind faces a tangle of logistical challenges and potential investor turmoil if the project continues to see delays. Anthony Logan, an industry expert with the renewables research firm Wood Mackenzie Power, has spent the past six years forecasting the wind energy field. He said that while Vineyard Wind, barring major disaster, remains poised to become the first industrial-scale offshore wind-farm in the U.S., the financial success of the project is dependent on qualifying for a federal tax incentive for wind energy projects, known as the investment tax credit (ITC).
The United States Department of Commerce has launched antidumping and countervailing duty investigations of utility scale wind tower imports from Canada and three other countries. The investigations will determine if the towers are being dumped in the U.S. and are receiving unfair subsidies.
Terra-Gen officials are focused on having amendments passed to Schuyler County’s zoning laws. Language added in 1990 does not allow building permits to construct wind farms. ...opponents to the project found the zoning language, which county officials were not aware existed.
U.S. offshore wind developers will need to optimize turbine advancements, supply chains and capacity markets to counter falling tax credits and beat the record U.S. price set in Massachusetts, industry experts told the US Offshore Wind 2019 Conference.
Committee co-chairman Sen. Cale Case, R-Lander, has been a major proponent of an increase in the wind tax. While he was interested in the potential of changes to the state’s wind tax structure, he didn’t think Wyoming needed to worry about its competitiveness with its western neighbors. Considering Wyoming’s placement geographically, Case said developers looking to feed Washington and Oregon with renewable energy wouldn’t be able to stay out of the state, despite a higher cost of development.
A new rule takes effect Aug. 1 that will provide the Oklahoma Corporation Commission with additional dollars to help regulate the development of wind energy resources in the state.
The House Ways and Means Committee approved a broad tax bill Thursday night that includes an extension of the biodiesel tax credit and incentives for biofuel infrastructure and wind power, but the legislation will face objections in the Republican-controlled Senate. ...The bill would revive extend the $1-a-gallon biodiesel tax credit, blender pump infrastructure credit, and a wind production credit along with several other credits through 2020.
On Wednesday, the Steuben County Industrial Development Agency (IDA) held a public hearing to gather comments on a plan to deliver $11.6 million in tax breaks to the Baron Winds Project — a $304 million project of parent company Innogy destined to locate 69 turbines in the towns of Fremont, Cohocton, Dansville, Wayland and Avoca.
In addition to changing property taxes, the bill would also establish a task force — three members from the House, three from the Senate, and two from county government with experience in wind energy valuations — to hold hearings and conduct research on wind farms that will be presented to the General Assembly by the end of 2019.
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.