Sanskrit scriptures open Legislative day
Officials continue break for wind industry
A controversial wind industry incentive will remain intact, for now.
The vote Monday follows a fierce debate between lawmakers about whether Oklahoma should honor its promises or eliminate a tax break approved years ago that many lawmakers now view as overly generous.
The incentive allows wind companies to get a refund on up to 85 percent of the income tax credits they never used. In one senator's words, it is a check that Oklahoma writes wind companies each year.
The incentive is a deal struck with wind companies to help lure more business to Oklahoma.
Senate Bill 888 would have ended that incentive early, ultimately saving the state $500 million to $750 million over the next decade, according to revenue estimates. The bill's author, state Sen. Marty Quinn, said the incentive was a bad deal that Oklahoma political leaders made with the then-new wind industry.
On the other side of the debate, opponents of the
bill said Oklahoma should stand by the promises made to businesses who choose to invest in the state. State Sen. Roger Thompson, R-Okemah, said that some companies have used the expected incentive revenue as collateral on bank financing.
“I know of other companies in our state who had a certain tax policy or structure that has been significantly changed in recent years,” replied Quinn, R-Claremore. “Just like average individuals back home, when economic conditions change or certain business situations change, they adjust accordingly.”
The vote on the bill failed 23-18.
There are ways that it can be reconsidered, but time is running out at the Capitol for legislation to get a final hearing. Lawmakers plan to adjourn by Friday.
Mark Yates, state executive director for the industry group The Wind Coalition, said it can take wind projects 12 years to become profitable, “so there’s nothing to apply that credit to.”
There is still one more bill amending the incentive that lawmakers can consider. House Bill 3716 would eliminate the credit refunds but allow them to claim the credit over a period of 20 years. It appears to be a measure that the industry would likely oppose.
“In many ways, this is the same exact impact,” Yates said.
Yet another proposal that was introduced and quickly abandoned would implement a gross production tax on wind production while protecting all existing wind incentives.
The proposal was a deal between House Republicans and Democrats, but opposition from the Senate likely sank the agreement before it was ever brought to the floor.