Bill would clarify wind turbine taxes

Wind turbine sites could not use credits for real property taxes paid to reduce their nameplate capacity tax liability under a bill advanced from general file April 21.

Prior to the passage of an omnibus wind energy bill last session, wind turbines were taxed via personal property taxes. The personal property taxes were replaced by a nameplate capacity tax of $3,518 per megawatt, which was intended to offset personal property tax revenue.

When the nameplate capacity tax was created, a provision was added that permitted property tax paid on wind turbines that exceeded the nameplate capacity tax to be used as a credit toward the nameplate capacity tax.

As amended by a Revenue Committee amendment, adopted 35-4, LB360 would clarify that depreciable tangible personal property used to generate electricity would continue to be exempt from property taxes, but real property would not be exempt. The bill was introduced by Bellevue Sen. Abbie Cornett.

The bill also would limit nameplate capacity tax credits to property taxes paid on depreciable personal property that exceed what would have been required under the nameplate capacity tax.

The bill would take effect Jan. 1, 2010.

Lawmakers advanced LB360 on a 33-0 vote.