Wind farms boost tax base for local US governments
Wind farms have boosted local tax bases and generated new revenue as they expand across the United States, especially for rural areas, Moody’s Investors Service said in a report this week.
“What we’re seeing is wind farms generate new operating revenues, lower the tax burden for local residents,” Moody’s analyst Frank Mamo told Reuters.
“In many cases, local governments are using this new money to address what was a growing backlog of deferred capital expenditures.”
In Adair County, Iowa, construction of 10 new wind farms has grown the tax base nearly 30 percent over the last decade, giving it money to fix bridges and streets.
Wind farm taxes are also paying over 40pc of debt service for Webb Consolidated Independent School District in Texas, Moody’s noted.
In Jackson County, Minnesota, a wind production tax generates nearly 20pc of the county’s annual operating revenues and helped fund construction of a new public works facility.
Nearly half of the country’s installed wind power capacity is located in Texas, Iowa, Oklahoma and California, the report showed.
Yet wind power is growing elsewhere. At least 400 counties in 41 states had wind farms as of January, more than double the number that had them 10 years ago, Moody’s found.