A new wind farm is getting millions of dollars in tax breaks. As the Houston Business Journal reports:
The 300 megawatt Sage Draw Wind farm — which is selling electricity to Irving, Texas-based Exxon Mobil Corp. under a power purchase agreement with the farm’s owner, Denmark-based Ørsted — is set to draw $22.56 million in tax incentives over the course of 10 years. The $206.5 million facility is covered by tax incentive agreements with government entities in the area of the farm, including a $14.76 million Chapter 313 agreement with Southland Independent School District near Lubbock, Texas, according to documents published by the Texas comptroller Nov. 9.
The question is, why should this massive Danish corporation, which is worth billions, get special tax breaks? Tax incentives for renewable energy projects are costly and have an array of unintended negative consequences—all at the expense of the taxpayer. Tax breaks like the ones offered to Sage Draw Wind Farm are a transfer of wealth from ordinary Texans to multinational corporations.
The Foundation has published several research papers on Chapter 312 and 313 tax abatements for renewable energy projects. You can read them by clicking on the links below: