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Home > Blogs > Ohio politics > Archives > 2010 > June > 03 > Entry
House, Senate appear to agree on “green energy” tax breaks
House and Senate negotiators on Thursday, June 3, appeared to reach agreement on tax incentives aimed at attracting renewable energy projects such as wind farms and the jobs that come along with them to Ohio.
The House Ways and Means Committee voted 12-5 on a modified version of Senate Bill 232, sponsored by Sen. Chris Widener, R-Springfield, and approved last month by the Senate.
The full House and Senate were expected to approve the new version later Thursday and send it to Gov. Ted Strickland who is poised to sign the bill, said Amanda Wurst, Strickland’s spokeswoman.
“It’s a good jobs bill,” said Wurst.
Under the legislation, companies that qualify would pay annual fees based on how much energy their projects generate instead of property taxes, both real and tangible.
Widener said the legislation could produce as many as 1,000 jobs.
Revenue from the taxes goes to school districts and local governments and a coalition representing these groups objected to the bill.
One wind project is pending in Champaign County.
Widener and other backers say tax incentives are needed to help Ohio catch up with other states in attracting renewable energy projects. The fees in the bill are comparable to fees in neighboring states, said Widener.
Ohio now is last in the Midwest in the amount of renewable energy capacity the state has and in renewable energy facilities, Widener said. Also, the energy bill passed in 2008 requires that 12.5 percent of Ohio’s electric energy must be generated from renewable sources by 2025.
Ohio’s current effective tax rate for renewable energy technologies is up to eight times higher than neighboring states competing for the same projects, according to the American Wind Energy Association.
County approval would be required for companies to receive the tax breaks and counties could increase the per megawatt fee up to $9,000. Otherwise, the top per megawatt fee would be $8,000.
Highlights of the bill:
*It would apply to solar, hydroelectric, biomass, solid waste (noncombustive), biological methane, wood by-product, wind, geothermal and fuel cell alternative energy projects.
*It also would apply to clean coal, nuclear and cogeneration alternative energy projects.
*Solar projects would pay $7,000 per megawatt.
*All other projects would pay these fees based on percentage of full time employees from Ohio in construction and installation jobs: 75 percent, $6,000 per megawatt; 60-74 percent, $7,000 per megawatt and 50-59 percent, $8,000 per megawatt.
*For solar projects, at least 80 percent of construction and installation employees would have to be from Ohio; for other projects, at least 50 percent of the employees would have to come from the state.
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Comments
By J
June 4, 2010 9:19 AM | Link to this
First, people complain about not creating new jobs, then a bill that can create jobs doesn’t address foreclosures. If they addressed that, then they’d be intruding in private business. Man, we’re stupid. You give tax breaks as an investment, like buying something to save on electric bills. Investment.
By Max
June 3, 2010 6:30 PM | Link to this
Perhaps I’m just plain naive….the State is nearly bankrupt. Tax breaks? The legislature can do this and nothing to curtail foreclosures? Anti-incumbency is certainly in order here.