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Home » Renewable Energy Tax Rate Inflation Adjustment Proposed

Renewable Energy Tax Rate Inflation Adjustment Proposed

Published by admin on Thu, 01/30/2020 - 12:00am

Lincoln – The tax on owners of renewable energy generation facilities would be indexed to inflation under a proposal heard Jan. 24 by the Legislature’s Revenue Committee.

Current law requires the owner of an energy generation facility that uses wind, solar, biomass or landfill gas as a fuel source to pay a tax of $3,518 per megawatt of nameplate capacity, a facility’s intended full-load output. Under LB 818, introduced by Gordon Sen. Tom Brewer, the state Department of Revenue would, each year beginning Jan. 1, 2021, adjust the nameplate capacity tax based on an inflation index.

Brewer said the Legislature created the nameplate capacity tax to replace the property taxes wind turbine owners otherwise would have paid so the tax should be recalculated over time to reflect inflation.

– Unicameral Information Office

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