Perhaps the most significant missing ingredient in the debate over tax breaks for wind-electricity projects in South Dakota is a spread sheet showing, by existing project, the taxes paid, the taxes forgiven or rebated, and the taxes projected through the lifespan of each installation. It also would be worthwhile to see a spread sheet about the potential effects on taxes and tax breaks from wind-power legislation offered in 2013 session. Perhaps the state Department of Revenue could collect this data and present it to the Legislature.
There is a major bill introduced by Sen. Larry Rhoden, R-Union Center. Its lead sponsor in the House is Rep. Roger Solum, R-Watertown. The bill is SB 195 and it has been referred to the Senate Commerce and Energy Committee, chaired by Sen. Ried Holien, R-Watertown. The Legislature appointed a special task force in 2011 to study wind energy, chaired by Rep. Solum.
The tax analysis becomes highly important because, as one wind-power advocate told me in a conversation last week, “Jobs shouldn’t even be part of the discussion.” Jobs are important to consider. There are the jobs at the wind-blade plant at Aberdeen, for example, and during the construction phase. But it is true that wind farms aren’t big producers of ongoing jobs. Once the towers are and the turbines are turning, the major benefit at that point is the tax revenue. It would be worthwhile to know whether the tax breaks given up front are worth the tax revenues ultimately received.
#1 by interested party on January 27, 2013 - 11:47 am
Curious, Mr. Mercer, whether you have ever uncovered South Dakota’s proceeds from electricity generated by the Bonneville Power Administration via the main stem dams?
#2 by Pierrely Conservative on January 28, 2013 - 1:59 pm
http://www.state.sd.us/drr2/businesstax/statistics/2012/constructionfundstats2013.pdf
I believe this is the information Mr. Mercer seeks. You need to look back at each individual year to get the differences and amounts. The state has refunded $95.3 Million since 1996 and refunded $16.043 Million in 2012.
I think we need to stop subsiding wind….if it were so profitable and effective the Investor-Owned Utilities would be putting up wind left and right.
Stop refunding my sales, use, and contractor’s excise tax towards a poor economic development area, instead spend the money on education or something better.
#3 by Pierrely Conservative on January 28, 2013 - 2:07 pm
2012 Tax Refunds
ADP Tax Services $180,834.30
Baldwin Filters $5,476.83
Big Stone Power Generation Facility $76,236.24
Buffalo Ridge II Wind $8,900,775.97
Fremar LLC $111,981.57
Gavilon Liberty Grain $272,205.80
MinnDakota Wind $2,121,028.95
Missouri Valley Renewable Energy $1,406.97
NorthWestern $578,364.21
PrairieWinds SD 1 Inc $508,234.34
Premier Bankcard Inc $4,066.81
SD Wheat Growers $354,749.85
South dakota Wind Partners LLC $256,228.41
TransCanada Keystone Pipeline LP $4,199,018.50
TOTAL $17,570,608.75
**correction to last post total ~$17.5 Million in 2012.
#4 by beenthere on January 28, 2013 - 9:12 pm
No,the major benefit shouldn’t be the tax revenue,it should be the electricity produced. But is it produced at a competetive price ???
#5 by Bob Mercer on January 29, 2013 - 7:49 am
What I’m looking for is a simpler analysis: How much is received in taxes at all levels of government (state and local) vs. how much is forgiven/refunded/exempted.
#6 by Pierrely Conservative on January 29, 2013 - 12:27 pm
Wind Competitive? LOL…lets just say this…Coal costs about 3 cents and Wind 6+ cents. Coal is by far the cheapest or was the cheapest resource to produce electricity. Our broken federal govt. is trying to make coal so expensive with all these environmental regs that it won’t be feasible to produce electricity from coal. Nuclear, Natural Gas, and maybe Hydro are all cheaper resources than Wind when producing electricity.
Bob – You should look at Rev.’s site under business tax then stats for information about tax information you seek. Somewhere within that unorganized mess you will find your gem.