Wind Farm Tax Revenues More Than Pay For Incentives to Build Them: GE Study
by Matthew McDermott, Brooklyn, NY on 06.19.08
UPDATE: Andrew Leonard says about our post: "nowhere in the post is it even mentioned that G.E. is a major player in the global wind turbine industry, a fact that makes the report from its Energy Financial Services subsidiary ridiculously self-serving." He has a point. We regret the error.
In case anyone needs some economic arguments as to why the renewable energy incentives stalled in the Senate should go forward: A new study released by GE Energy Financial Services provides some solid evidence that it isn't just clean energy which is created by wind farms.
Wind farms bring in additional tax revenue
The report estimates that in addition to $15 million in state taxes per year during construction, $6 million in local property taxes and $1.5 million per year in state income taxes would continue indefinitely after construction. Sales taxes were not calculated in this study but would obviously add to the state tax benefits.
This is on top of federal taxes: GE model’s show that the total Net Present Value to the US Treasury of wind farms built in 2007 was $2.75 billion, while the total cost of the Production Tax Credits used to incentivize these farms’ construction was $2.5 billion. The result is a net inflow to the US Treasury of $250 million.
Job creation increases in short and long term
Additionally, the report states that it is estimated that 17,200 jobs are created per project during construction and 1,600 long-term jobs are generated per project when the farm is in operation.
Now, the next time someone tries to tell you that we shouldn’t be subsidizing renewable energy you got some statistics to throw at them instead of the usual (but true) “the fossil fuel industry is heavily subsidized, so why not alternative energy?”
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Just to put this in a different light:
Instead of reading this statement as "Taxes on renewable energy pay for the subsidies" read it as "[profits] on renewable energy pay for the [investment]"
This means two things.
1. Subsidies are pointless, renewables are profitable enough to make the investment worth while.
2. The government has taken 250 million dollars from renewable energy companies, inhibiting their ability to reinvest and rapidly improve.
I don't think ANY industry should be subsidized. Give tax breaks to renewals if you want to encourage it, but nothing else.
I love it, but since GE is a major components producer
for wind, it's hardly an unbiased report.
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He has one of the best web sites and ideas I have seem in a while.
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http://push.pickensplan.com/profile/Markie