ScholarWorks

Title

Renewable Energy Tax Credit

Authors

Paul Augustine, Department of Economics, Boise State UniversityFollow
Cass Jones, Department of Economics, Boise State UniversityFollow
Kevin Ward, Department of Economics, Boise State UniversityFollow
Lynn Dunn-Benson, Department of Economics, Boise State UniversityFollow

Document Type

Student Presentation

Presentation Date

4-16-2012

Faculty Sponsor

Scott Lowe

Abstract

In 2005, the renewable energy tax rebate program was created to exempt renewable energy producers from paying the state’s 6% sales tax. This incentive has caused a boom in wind farms in Idaho. Wind power capacity alone went from 0 MW in 2005 to 471 MW in 2011. The senate voted 17-18 against an extension on the tax credit in April 2011. The reason the senate voted against the tax extension is that it appeared the program was adding $50 million dollars to the state deficit.

It was later revealed by the Idaho Tax Commission that the program was revenue neutral.