Energy Tax Credits in Line for State Review

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While it has been tasked with reviewing and making recommendations about the fate of dozens of tax credit programs from wind farms to ethanol in Oklahoma to next year’s legislature, the Oklahoma Incentive Commission is not exactly racing down the stretch.

Lyle Roggow, chairman of the Commission said afterward, “we’re making great headway.”  In last week’s meeting, the commission spent time being educated about economic incentives and whether they are producing a significant return on the investment of tax dollars.

He told the Duncan Banner the meeting was more about educating commissioners on how to proceed while also speaking about keeping and eliminating certain tax incentives.

The commission has already ranked which tax credit programs will get a first-year emphasis and review. They include an Aerospace Engineer Tax Credit as well as an Aerospace Engineer Tax Credit-tuition reimbursement and compensation. Both are through the State Tax Commission. The Engineer Tax Credit has an estimated incentive cost of $3,360,748. It’s an income tax credit that is allowed for a qualified employee of up to $5,000 a year. The second tax credit has an estimated incentive cost of $1,0005,917 and is a credit allowed for a qualified employer for tuition reimbursement to a qualified employee.

A credit for electricity generated by zero emission facilities, one with an estimated incentive cost of $26,631,050 will also get a first year review. The credit is based no the amount of electricity generated by a qualified zero-emission facility. A credit for manufacturers of advanced small wind turbines has an estimated incentive cost of $178,690 renewable energy. It is allowed for Oklahoma makers of advanced small wind turbine products including rotor blades and alternators.

Other credits are in either a second, third, or fourth year review or have been excluded.

An Alternative Fuel Vehicle loans program along with an Energy Efficient Residential Construction Tax Credit, an Ethanol Fuel Retailer Tax Credit, and Economically at-risk Lease 2 for Gross Production and a reestablished Production Rebate for Gross Production are scheduled for a second year review.

A clean Burning Fuel vehicle credit with an estimated incentive cost of $8,860,473 is also scheduled for year-two review.