Wind energy group urges Ohio to change tax setup
The American Wind Energy Association says Ohio's existing tax method could be a hurdle to boosting the amount of electricity in Ohio that comes from renewable sources.
About a year ago, state lawmakers passed a landmark energy bill that requires 12.5 percent of electricity sold in the state to come from renewable sources by 2025. The requirement is being phased in, starting at 0.25 percent this year and escalating each following year.
In a letter sent to Gov. Ted Strickland, the association has asked the state to consider charging a production tax on electricity generated by wind turbines, instead of requiring a tangible personal property tax on an electric utility's equipment.
At issue is hundreds of millions of dollars. Last year, gas and electric utilities paid more than $620 million in tangible personal property taxes, according to the Ohio Department of Taxation.
Michigan, Indiana, Illinois, Pennsylvania and West Virginia have reduced or eliminated that tax, making them more attractive to potential wind energy developers, according to the wind association.
"We respectfully request that you work with us to craft a more comprehensive solution, a solution that will provide flexibility and efficiency for developers seeking to invest a minimum of $6 billion in Ohio's economy," The (Cleveland) Plain Dealer quoted the letter as saying.
Strickland's energy adviser, Mark Shanahan, who also directs the Ohio Air Quality Development Authority, says he first wants to see state-by-state tax comparisons and evaluate some of the group's claims he thinks are inaccurate.
Any tax change would require a comprehensive review of utility taxes to be fair, Shanahan said.
Related News

Power firms win UK subsidies for new Channel cables project
LONDON - New electricity cables across the Channel to France and Belgium will be a key part of keeping Britain’s lights on during winter in the early 2020s, after their owners won backup power subsidies in a government auction this week.
For the first time, interconnector operators successfully bid for a slice of hundreds of millions’ worth of contracts in the capacity market. That will help cut costs for consumers and squeeze out old coal power plants.
Three new interconnectors are currently being built to Europe, almost doubling existing capacity, with one along the Channel Tunnel and two on the seabed: one between Kent and…