Reported by Staff

CHEYENNE ― Anindustry group says the Wyoming taxes on the wind energy industry would be the highest among Rocky Mountains states if all of Wyoming’s pending taxes take effect.

The Wyoming Power Producers Coalition is releasing a new report in advance of wind tax discussions scheduled for next week by the Wyoming Legislature’s Joint Revenue Interim Committee.

The report says a model 99-megawatt wind project would pay at least 37 percent more taxes in Wyoming than any other Rocky Mountain region state.

“Wyoming has a big policy discussion that needs to take place,” David Picard, a lobbyist for the coalition told the AP. “What amount of wind energy development do they want? Because clearly our analysis shows that Wyoming is much less competitive with our surrounding states.”

The wind industry hasn’t faired well in the corridors of the State Legislative House in Cheyenne during the last couple of years, losing tax battles in the past two legislative sessions. Last year lawmakers allowed a sales tax exemption for renewable energy projects to expire at the end of 2011.  That move was followed by lawmakers passing a $1 per megawatt hour wind energy generation tax this year that takes effect in 2012. The industry calculations accounted for Wyoming’s pending sales and generation taxes.

The tax figure comparisons are startling. For example,  the report notes that a 66-turbine wind farm producing 99 megawatts and costing $247.5 million to build would pay about $37.6 million in taxes in Wyoming over 20 years. The same wind farm would pay $8.4 million in taxes in Colorado, the state with the lowest tax burden for wind, according to the study.

For wind developers, it is the upfront sales tax burden that is most difficult to swallow. The model project would pay about $11.8 million at a sales tax rate of 6 percent. Picard said developers must account for sales tax as part of their project financing, rather than pay it with operating revenues over time.

“It’s that significant, steep initial investment that can make and break some of these projects,” he said.