The Enid News and Eagle, Enid, OK

March 26, 2011

Seeking credit

Producers of wind energy hoping moratorium ends

By Joe Malan, Staff Writer
Enid News and Eagle

— Last July, a one-year moratorium went into effect regarding a tax credit for wind energy production in the state of Oklahoma.

Wind energy developers are hoping the moratorium is lifted this coming fiscal year, which begins in July, said Curt Roggow, government liaison for The Wind Coalition and the city of Enid.

“At this point in session, a moratorium has not been extended,” Roggow said. “Hopefully that will be the case as we close out the session in a couple of months.”

The production tax credit in question gives wind energy companies a half-cent per kilowatt hour credit for energy produced.

Two companies, RES Americas and TradeWind Energy, have leased land in Garfield County to potentially construct wind turbines for generation of electrical energy.

Senate Bill 1267 last year had called for a two-year moratorium on the tax credit, stating the “provisions of this subsection shall cease to be operative on July 1, 2012. Beginning July 1, 2012, the credit authorized by this section may be claimed for any event, transaction, investment or expenditure or other act occurring on or after July 1, 2012, according to the provisions of this section.”

But the moratorium was revised in House Bill 3024 to state, “No credit otherwise authorized by the provisions of this section may be claimed for any event, transaction, investment, expenditure or other act occurring on or after July 1, 2010, for which the credit would otherwise be allowable until the provisions of this subsection shall cease to be operative on July 1, 2011. Beginning July 1, 2011, the credit authorized by this section may be claimed for any event, transaction, investment, expenditure or other act occurring on or after July 1, 2010, according to the provisions of this section. Any tax credits which accrue during the period of July 1, 2010, through June 30, 2011, may not be claimed for any period prior to the taxable year beginning January 1, 2012. No credits which accrue during the period of July 1, 2010, through June 30, 2011, may be used to file an amended tax return for any taxable year prior to the taxable year beginning January 1, 2012.”

A new piece of legislation, House Bill 1285, introduced by Rep. David Dank, calls for a task force to examine each tax credit, including the wind energy production credit in question, and determine whether each is functioning as it should.

The bill is being considered by the Senate.