(Oklahoma City, Oklahoma) False and misleading financial figures related to wind industry tax incentives and distributed by the Oklahoma Council of Public Affairs have thankfully been exposed for just that by Governor Mary Fallin and the Oklahoma Office of Management and Enterprise services according to the executive director of The Wind Coalition, an advocacy group representing Oklahoma wind developers, manufacturers and customers. Governor Fallin and OMES released their data related to wind industry and many other state incentive programs Monday.
Jeff Clark said, “I commend Governor Fallin and OMES for taking a strong stand in refuting the false and misleading claims made by OCPA. Unfortunately, spreading such false information has become a pattern for an organization which has partnered with other anti-wind political activists in an attempt to discredit an industry which is a vital member of and economic contributor to Oklahoma’s energy sector.”
According to statistics released by the governor and OMES, the FY 18 financial savings claimed by OCPA related to four wind industry-related incentives falls short of reality. “I am certainly no mathematician, however, I am much more confident trusting Governor Fallin’s figures than those of political activists with an axe to grind. Governor Fallin was one of the first state leaders to step up to the plate in the late 1990s, when as Lieutenant Governor, she actively recruited the wind industry, and its economic and environmental benefits, to Oklahoma. While Wind Coalition members disagree with the governor’s proposal to levy a state tax on wind production, we have always appreciated her willingness to consistently stand up for our industry, and in this case, by refuting erroneous claims made by a partisan political organization.”
Below are Governor Fallin’s clarifications to the four wind industry incentives cited by OCPA:
Repeal Zero Emission Tax Credit for Any New Projects or Activity Effective on July 1, 2017
The impact in FY 18 would be minimal. New facilities (not yet operational) are not built into the budget. The impact would be in later fiscal years when other facilities drop off. The impact would “stop the growth” of the credits taken.
- OCPA Claimed Savings – $15M
- FY 18 Revenue – $0*
Cap Zero Emission Tax Credit Liability Payout at $15 million Annually Effective July 1, 2017
Assuming the cap applies per tax year beginning with tax year 2016 claims that are filed in FY 18, the impact would be a gain of approximately $50 million, however that could bring a substantial risk of litigation. If the cap begins with tax year 2017, the impact for FY 18 would be $0*.
- OCPA Claimed Savings – $50M
- FY 18 Revenue – $0*
Cap Ad Valorem Reimbursement for Wind at $15 million Effective July 1, 2017
Capping the ad valorem reimbursement would violate the Oklahoma Constitution unless done by a vote of the people, which would push back the impact past FY 18 if it were to be approved. The exemption is in the constitution as well as the obligation to reimburse the counties for the lost revenue.
- OCPA Claimed Savings – $15M
- FY 18 Revenue – $0*
Repeal Sales Tax Exemption on Wind Turbine Sales Effective July 1, 2017
According to the Oklahoma Tax Commission, there would be a state sales tax impact of $45,000 per turbine. In doing analysis for SB 96, the tax commission projected 115 turbines sold in FY 18 for a total state sales tax impact of $5,175,000.
- OCPA Claimed Savings – $40M
- FY 18 Revenue – $5.2M*
