Legislation is being developed in Nebraska that could become a national model for incentivizing wind development in ways that benefit rural communities.

The US Department of Energy study 20 Percent Wind by 2020 concluded that ramping up wind generation to 20 percent of the nation’s electricity would create 3,000 or more permanent jobs in many Great Plains and central US states. But the degree of benefit will always be greatest when local people share in the ownership of wind projects and the wealth they create. The benefits are further multiplied when local businesses become the builders and suppliers of wind farms.

The Nebraska Legislation would eliminate 75 percent of the sales tax on wind turbines and towers for all projects. Most states charge no sales tax on wind equipment. But the Nebraska proposal has a unique twist. The wind project could get the final 25 percent and avoid all sales tax on the equipment by having substantial ownership by Nebraskans, meeting thresholds for input purchases from Nebraska businesses or contributing stock in the wind farm to local employees responsible for maintenance of operation of the wind farm.

Developers who want the 100 percent exemption will need to develop their wind farms in ways that help build local wealth and businesses. The legislative language should be finalized by the time you are reading this. To receive a copy or discuss it, contact me, Chuck Hassebrook, at chuckh@cfra.org.