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For Immediate
Release:
Date: January 30, 2008
Contact:
Representative Dan Ahlers – 605-940-3071
Chris Moller, Brookings DRA member, 605-693-3293
Silvia Christen, DRA Staff – 605-691-2715
Local Investment Incentive For Wind Energy Rejected By House Committee
The House Taxation committee, on Tuesday, killed a bill that would create tax incentives for companies that allow local investors in the state’s wind farms. House Bill 1296, sponsored by Representative Dan Ahlers, District 25 from Dell Rapids, was killed by a committee vote of 3-11.
“Dakota Rural Action was very frustrated
to see that this bill was killed by the Taxation Committee,” said
Chris Moller, DRA member from Brookings. “The income potential for
the state and the local landowners is incredible, and we should do whatever
we can to encourage local ownership in the development of our wind resources.”
“Basically this bill is a reimbursement to encourage private investment
in wind energy. If Florida Power and Light would come to SD and want to
set up a 100MW project and they wanted to apply for this it would say
well, if you’ve got 25% private ownership, then you could qualify
for this,” explained Ahlers during the Tuesday hearing.
“This is just a refund of the sales use and construction excise tax. It’s a wash for the state on the front end. On the backside we gain on property taxes. We also gain on private investment and we know that the profit on that stays in South Dakota. It doesn’t travel to Florida or Minnesota or wherever these large companies are headquartered.”
“Local ownership of our wind resources brings money straight to our rural communities, it allows South Dakota to use wind to power our own homes and ranches, and it gives us control of the industries that are working in our state,” Moller said.
Hunter Roberts, speaking on behalf of the Governor’s Office of Economic Development, opposed the bill claiming that there were potential problems with requiring in-state investment which could land the state in legal trouble over the interstate commerce clause. Rep. Joel Dykstra also spoke against the bill.
However, Rep. Ahlers doesn’t agree. “The bill doesn’t restrict out of state investment, in fact it encourages out of state investors that want to come in and if 25% of their investment is private then they are entitled to apply for this tax rebate.”
“The opposition didn’t offer any solid facts or legal determination that this bill created conflicts for the interstate commerce clause. They opposed this bill based on assumptions that I don’t feel are well grounded,” said Ahlers.
Representative Marc Feinstein, District 14 in Sioux Falls, moved that the bill be passed out of committee saying, “We have other legislation for renewable energy in front of us this year, and we have to make a statement to the state. South Dakota has to make a stand in a positive way for ourselves and future generations. We are being contradictory by saying no to this type of legislation. I think it’s a very positive thing,”
“Dakota Rural Action applauds Rep. Ahlers’s efforts to bring legislation that encourages local ownership of our wind resources,” said Moller. “We are disappointed that the bill was not supported by the legislature, but we feel strongly that Rep. Ahlers’s work on HB 1296 will lead to a continued conversation about how our policy will shape the wind energy industry in South Dakota.”
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Dakota Rural Action is a grassroots family agriculture
and conservation group that organizes South Dakotans to protect our family
farmers and ranchers, natural resources, and unique way of life.