Oklahoma wind credit

Oklahoma wind credit

April 06, 2017 | By Keith Martin in Washington, DC

Oklahoma is moving to repeal a tax credit for generating electricity from wind for projects put in service after July 1, 2017.

The credit is 0.5¢ on the electricity generated by a new project in the first 10 years after the project is put in service. It had been scheduled to expire at the end of 2020.

The credit can continue to be claimed on solar and geothermal projects completed by the original deadline.

The Oklahoma house voted 74-24 on March 9 to move up the deadline for wind farms. The Senate appropriations committee voted 34-6 to do the same on March 29. The bill goes next to the full Senate. The governor, Mary Fallin (R), called for the rollback in her budget message.

Fallin also asked the state legislature to impose a tax of 0.5¢ a KWh on wind electricity generated in the state. Mark Tygret, staff director of the House Fiscal Division, said legislation to implement the tax has not been submitted yet. If such a tax were imposed, Oklahoma would be the third state to do so. Wyoming taxes wind electricity at 0.1¢ a KWh. South Dakota imposes taxes of 0.065¢ a KWh on wind farms that commenced operating between July 1, 2007 and March 31, 2015 and 0.045¢ a KWh for wind farms that went into operation more recently.