By: Lindsay Sisk, Gable Tax Group
There’s no denying that renewable energy is a hot topic in the marketplace. Companies are either utilizing it or finding ways to create it. On a personal level, I receive phone calls on a monthly basis regarding solar energy for my home. Having owned solar panels in the past, I can definitely relate to the cost savings and advantages that occur in the long term.
However, until recently, I was unaware of how large the market really is and how jurisdictions are generating tax revenue by encouraging renewable energy companies to establish a presence in their state.
Living in Southern California I drive past the Mojave Desert, which is located north on your way to Mammoth Lakes, CA. If you’ve ever driven by you’ll notice thousands of wind turbines. Which got me thinking, who manufactures them? Who buys them? And my sales tax mindset automatically thinks, what kind of tax revenue is this generating? Luckily, I have some great contacts that have provided insight, but of course I put Google to work.
What my research found is, of course, it depends. There are quite a few jurisdictions that have tax incentives in place to encourage wind turbine growth. For instance, Oklahoma previously had tax incentives in place to drive business to their state, but are expiring in July of 2017.
State’s with rural landscape and the resource needed, wind benefit from this market. It generates jobs for locals and provides additional revenue for the taxing authorities. I’ve also discovered on an international level wind turbines are installed in the ocean, which is gaining popularity in the United States as well. Which only makes my mind spin more with all of the red tape that must be involved with who gets the tax money, but that’s for another blog post, isn’t it?
Are you in the renewable energy sector and need sales tax guidance? Let us help you! It’s what we do best. Call us for a Free Consultation at 888.872.6579 or email us at Info@Gable.Tax.
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