Wyoming may tax wind energy generation

Wind farm in Wyoming

The Wyoming House of Representatives has given preliminary approval to a bill that would impose the nation's first state excise tax on wind energy generation. Wyoming Gov. Dave Freudenthal originally called for the bill in early February, and HB 101 has since been submitted by the Task Force on Wind Energy Committee.

“The industry is not entitled to a free ride,” Freudenthal said in his State of the State address. “In my lifetime, this is the first opportunity this state has had to diversify its tax base. I want wind energy. I believe it is good for the state. However, it must be on terms fair to the state and the citizens of the state.”

The proposed tax was $3 per megawatt-hour of energy produced; but the bill has since been amended and the tax reduced to $1 per megawatt hour. The revenue would be split between the state—which would receive 60 percent—and Wyoming’s 28 counties, which will receive 40 percent.

The excise tax would not take effect until three years after a wind farm has been in operation and taxes would not start being collected until 2012.

Wyoming has 40 percent of the “best wind resources in America,” according to Gov. Freudenthal. Wyoming had 1,101 megawatts of installed wind power capacity at the end of 2009.