By Editors of Power Engineering
Oklahoma Governor Mary Fallin has signed legislation that would end the state’s tax credit for new wind developments, StateImpact Oklahoma reported.
HB2298 moves the end of the tax credit from 2021 to July 1.
“I’m grateful to the industry for their ambitious successes, as well as their willingness to work with the state to address our challenging budgetary circumstances,” Fallin said.
Senate Pro Tem Mike Schulz, R-Altus and one of the sponsors of the bill, said the state can no longer afford the tax credit due to extraordinary budget challenges. Fallin also called for an end to the subsidy in her 2017 budget proposal.
The Tulsa World noted the tax credit’s use grew from $3.7 million in 2010 to over $113 million in 2014.
Though some wind power entities, including the Wind Coalition, said the industry had cooperated with state leaders on the phase-out, Virinder Singh, director of regulatory and legislative affairs for EDF Renewable Energy, said the Rock Falls wind facility in Oklahoma’s Grant and Kay counties could lose millions of dollars.
“We’re respectful of the state’s fiscal challenges,” he said. “In this case, the policymakers have overshot and came up with a deadline that clearly sends a message that can’t be walked back to financiers of all kinds looking at Oklahoma for further business investment.”