State Taxation Inequity Supports the Federal Wind Energy Program

Reference 1 reports an estimated cumulative magnitude of federal subsidies to the wind industry, over the past 10 years, is at least $18.6 billion. In 2005 federal subsidies for wind amounted to about $0.25 billion. Last year, during 2014, federal subsidies amounted to about $4.0 billion. Taxpayers in all 50 states and the District of Columbia paid their taxes to the federal government over the past 10 years to support wind subsidies. Only the states that have wind producers who own wind facilities receive subsidy allocations. As a result 11 states and D.C. having no wind production, received zero subsidies but still residents paid their share of the tax burden related to federal wind subsidies. Residents in nineteen states that have a small number of wind turbines, compared to Texas for example, paid more in taxes than received as a wind subsidy.

More inequities that are part of the federal wind program, identified in the ref. 1 report, will be reported here in the near future. We need to continue to press our representatives to stop wasting taxpayer money on the federal wind program.

Reference

1. “Estimating the State-Level Impact of Federal Wind Energy Subsidies”, Institute for Energy Research, November 2015