AWEA URGES OHIO TO OPEN UP FOR WIND

Wind energy group urges Ohio to change tax setup
May 23, 2009 (AP via Chicago Tribune)

"…The American Wind Energy Association says Ohio's existing tax method could be a hurdle to boosting the amount of electricity in Ohio that comes from renewable sources [and wants Ohio leaders to change the state's taxes to attract wind energy developers and compete with neighboring states, where such energy projects would pay lower taxes].

"About a year ago, state lawmakers passed a landmark energy bill that requires 12.5 percent of electricity sold in the state to come from renewable sources by 2025. The requirement is being phased in, starting at 0.25 percent this year and escalating each following year."

Ohio has big wind assets and should not let weak tax policy cause them to go to waste. (click to enlarge)

"In a letter sent to Gov. Ted Strickland, the association has asked the state to consider charging a production tax on electricity generated by wind turbines, instead of requiring a tangible personal property tax on an electric utility's equipment…Last year, gas and electric utilities paid more than $620 million in tangible personal property taxes…Michigan, Indiana, Illinois, Pennsylvania and West Virginia have reduced or eliminated that tax, making them more attractive to potential wind energy developers…"

Wasting wind assets means wasting all these wind business opportunities. (click to enlarge)

"Strickland's energy adviser, Mark Shanahan, who also directs the Ohio Air Quality Development Authority, says he first wants to see state-by-state tax comparisons and evaluate some of the group's claims he thinks are inaccurate.

"Any tax change would require a comprehensive review of utility taxes to be fair, Shanahan said."