Wind energy incentive advanced

Lawmakers advanced a bill from general file April 24 that would incentivize companies that create sources of renewable energy.

LB104, as introduced by Omaha Sen. Steve Lathrop, would have added a new tier of incentives to the Nebraska Advantage Act for companies producing renewable energy for export.

Lathrop said Nebraska is the fourth largest producer of wind energy but lacks economic incentives for companies to invest in the state.

“Our state has enormous wind energy potential,” he said. “We have a time-sensitive opportunity that can significantly grow Nebraska’s economy.”

A Revenue Committee amendment, adopted 27-0, replaced the bill with provisions of LB501, a bill originally introduced by Kearney Sen. Galen Hadley.

As amended, the bill instead would expand the definition of qualified business to include renewable energy producers in the existing incentive tiers. It also would define sources of renewable energy to include wind, solar, geothermal, hydroelectric, biomass and transmutation of elements.

Omaha Sen. Jeremy Nordquist supported the bill, saying the discontinuation of federal production tax credits at the end of 2013 adds a sense of urgency.

“Developers have to start getting shovels in the ground before the end of the year to get the federal tax credit,” he said. “We need to get this passed and create this incentive so we can get these developments started.

Norfolk Sen. Jim Scheer also supported the bill. He said any initial loss of tax revenue would be made up in new business.

“I don’t care who owns these companies,” he said. “Nebraskans are going to build them and maintain them. This is about providing employment and income for rural Nebraska.”

Omaha Sen. Beau McCoy opposed the bill, saying the timing is not right for new incentives.

“I did oppose this in committee for the simple reason that there are a lot of priorities that have to be made this session,” McCoy said. “I think this is a priority. I just question whether it is a priority that has to be done this year.”

Senators advanced the bill to select file on a 30-0 vote.