Wind tax exemption-repeal.25LSO-0423, 1.0
HB0252
FISCAL NOTE
FY 2026FY 2027FY 2028NON-ADMINISTRATIVE IMPACTAnticipated Revenue increaseGENERAL FUND$180,000 $740,000 $1,660,000 COUNTY DISTRIBUTION$280,000 $1,100,000 $2,490,000
Source of revenue increase:
This bill repeals the three-year tax exemption on electricity produced from wind
turbines currently provided in W.S. 39-22-105(b).
The three-year exemption, as repealed by Section 1 of the bill, would continue to
apply as currently provided in W.S. 39-22-105(b) to any turbine that first
produces electricity for sale prior to the effective date of the bill. The bill
is effective immediately upon completion of all acts necessary for a bill to
become law as provided by Article 4, Section 8 of the Wyoming Constitution.
Assumptions:
The above estimates are based on wind generation projects permitted by the
Wyoming Department of Environmental Quality, Industrial Siting Division. The
fiscal year amounts are based on the anticipated completion date(s) of projects.
The wind generation projects anticipated to be completed before the effective
date of the bill are assumed to still qualify for the current exemption.
The above estimates are also based on the anticipated name plate capacities of
permitted wind projects, and an average capacity factor of 35.6 percent. The 35.6
percent capacity factor is the average of annual capacity factors for Wyoming
electricity generation from wind in calendar years 2021 through 2023, as
published by the Energy Information Administration.
60 percent of the wind generation tax is proportionately distributed to counties
based on the relative percentage of assessed value of the generating facilities.
40 percent of the wind generation tax is distributed to the General Fund. The
total estimated revenue increases from repealing the three-year exemption are
$460,000 in FY 2026, $1,840,000 in FY 2027 and $4,150,000 in FY 2028. The total
estimated revenue increases are expected to continue increasing to $4,560,000 in
FY 2029, $10,350,000 in FY 2030 and $13,660,000 in FY 2031.
The Department of Revenue (DOR) states that this exemption repeal will require
more administrative work due to processing additional tax returns for wind
production that is currently exempt. Unlike the DOR’s other tax types, the wind
generation tax is still administered manually. Taxpayers must complete hardcopy
returns and pay by check. DOR received a quote from its third-party system
contractor two years ago of $595,000 to update its computer system for the wind
generation tax. DOR is not requesting additional funding for this bill.
Prepared by: Dean Temte, LSO Phone: 777-7881
(Information provided by Bret Fanning, Department of Revenue, 777-5220)