Tax exemption-small scale/off-grid electricity generation.

13LSO-0299.L1

FISCAL NOTE

The fiscal impact, in the form of decreased sales and use tax revenues, is indeterminable.

The decrease in sales and use tax revenue from this 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 small wind turbines sold in Wyoming.  The average cost per turbine based on their figures is $17,375.  Basing the sales and use tax on a statewide average of 5.38 percent, the revenue decrease would have been $93,480 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 information regarding whether there are any purchasers of large wind turbines for off grid use.  These turbines would also be exempt under this bill.  The number of turbines installed in 2011 looks to be roughly one-half of the 2010 figures.  This is based on a graphical representation as numeric figures were not available.

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

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