Tax reform to affect wind farms

Under the previous taxation schedule, wind turbines were taxed at 100 percent of their value during their first year in operation. Then their taxable value gradually decreased to 30 percent in year 15, after which it does not change.

Now wind turbines’ taxable value will start at 80 percent and bottom out at 30 percent in five years. This will result in significantly lower tax revenue for communities that are home to wind energy installations.

Doug Duimering is a project manager for Exelon Wind, a corporate wind energy developer. Exelon Wind and local firm Great Lakes Wind have formed a partnership known as Blissfield Wind Energy, and together the two are seeking to install industrial wind energy facilities in the Blissfield area.

“Certainly it’s not something that Exelon Wind has advocated for,” said Duimering of the new taxation schedule. “We advocate for a level playing field for property values.”

Duimering says if the project becomes a reality and construction begins in 2012, Exelon Wind will make payments directly to its host townships in lieu of the personal property tax. Yet he says he does not see the tax code changes as a major disincentive for Blissfield area residents to embrace wind energy development.

“Even with those issues, there is still a compelling amount in property tax paid,” said Duimering.

 

Copyright 2011, River Raisin Publications, Inc. For James McClenathen's full story, please see the Dec. 14, 2011, edition of The Advance, which also features a story from an MSU student on the tax issue in relation to wind farms.