Renewable resources electricity generation exemption.

12LSO-0096.L1

                                                         

FISCAL NOTE

 

This bill extends the sales and use tax exemption on equipment used to generate electricity from renewable resources with a total net rating capacity of not more than 25 kilowatts, or where the entire renewable energy system is for off-grid use.

 

This exemption is currently in place so the fiscal impact will not change.  However the exemption would be based, in part, on the number of small wind turbines sold in Wyoming.  From American Wind Energy Association (AWEA) figures for 2010 there were approximately 100 of these wind turbines sold in Wyoming.  The average cost per wind turbine based on their figures is $17,375. Basing the sales and use tax on a statewide average of 5.38%, the revenue decrease would have been $93,478 for calendar year 2010. Since these sales are driven by federal incentives, it is not appropriate to base the future trend of this exemption on normal market factors. The Department of Revenue has no idea whether there are any purchasers of large wind turbines for off grid use. These turbines would also be exempt under this statute as it is currently drafted.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by:   Dean Temte, LSO  Phone: 777-7881

Information provided by Dan Noble, Dept. of Revenue; 777-5220)