Sunday, February 27, 2011

Agency says wind energy tax hit fears were hot air

Sunday, February 27, 2011

The State Tax Commission was withdrawn what had a dire report that sales tax rebates for wind energy developments of the next two years a unexpected $47 million bite out of Idaho tax revenues would take.

The Agency said legislative budget writers Tuesday discounts are a "net neutral event as far as impact on the General Fund revenue."

Wind energy developers who feared this alleged budget hit their hopes extending the tax rebates past its June 30 end scuttle could said this latest turn of events great news.

And joint finances write appropriation Senator Dean Cameron, co-Chair of the Budget Committee, the budget cuts for fiscal said the turnaround means 2012 probably not as deep as a few days ago to be feared.

"It will be even more difficult." "It is still painful" said Cameron. "But it is not as hard as we, thought two weeks ago."

The State that announced to the time that wind power developers, including the likes of General Electric Co. made quickly and unexpectedly good 2005 working spur the industry to a finding discounts the 6 percent in sales taxes paid on equipment that produces electricity.

Revenue, with lackluster December combined hit revenues and costs for Idaho matches up to $70 million had opened the new federal tax code, c.l. "Butch" Otter had predicted what Gov't in January would be a 35 million US-dollars deficit to $ 185 million. As a result, Cameron warned to prepare for deep, deep cuts public schools and Medicaid.

This latest news on the wind energy rebates, legislation that significantly reduced the cost of conformity of the Swiss Federal tax administration leaves the projected deficit around 92 million $.

And there is a number that could still fall, better than expected should have Idaho tax returns during the remaining months of fiscal year 2011.

So what happened? In your letter wrote Tuesday, the Commission, that a further review of the tax payments were determined that the wind energy company claims almost payments and their accompanying rebate simultaneously submitted.

"The submittal of the claim, the receipt of the tax from the vendor and the actual payment of the rebate occur in a small window of time" wrote Commissioner Sam haws. "The bottom line is that based on our experience so far of the claims existing operations and processes, it should be a net neutral event as far as impact on the General Fund revenue."

This is good news for wind energy companies such as exergy development, General Electric, ridgeline energy and shell, which the 2011 legislature to extend the 6 percent tax want discounts this year out.

Many industry advocates say, discounts, along with other State and federal incentives such as cash grants from the U.S. Treasury, critical helps Idaho's modest wind resources on terms you use, which fired with traditional forms of electricity produced by dams, coal or natural gas can compete.

Legislator to decide on the discounts to extend something to examine other have to.

Tuesday tax economists beneath John Church of Boise State University published a report in most energy develops 300 megawatts of exergy 120 million dollars in would produce from all sources over the next quarter century, and a further $50 million in royalties to the private owners of rural property where turbines are built.

"The discount still more jobs, more clean energy have the only means it and hopefully create a better future for the State of Idaho," said exergy President James car kulis, whose undertaking funded the study.

Wayne Hammon, Otter's budget Chief, on Jan. 28 said - if the original message purported hit to public tax revenue was made by the discounts-, the Republican Chief Executive could no longer support an extension of the rebate in its current form in terms of the budget implications.

Hammon back immediately a phone call Tuesday seek comment on whether the tax of Commission Otter's letter would change mind.

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