During the month of October, the state of Texas reached a milestone for the very first time when the capacity of its wind generating system is more than the generation capacity of its existing coal-fired power plant. The problem is that the momentum might be broken after the proposal for cutting taxes has been passed. While it is beneficial for those applying for TX Tax ID, the wind generating system might slow down in progress.
The House of Representatives in the United States has given the approval for a legislation to reform the way that wind companies are being qualified when it comes to tax credits in investment and key production.
The original deal was that the current agreement will be preserved until the credits are eliminated in 2020 but the House bill took a proactive approach on the matter.
According to the CEO of the American Wind Energy Association, Tom Kiernan, the House tax bill is not in the slightest pro-business thus it will have a negative effect on more than half of the latest wind farms proposed to be installed in the United States. This will also affect one of the fastest growing employment sectors in the nation. He added that a conference should be conducted by the Congress as soon as possible in order to restore the trust of the businesses that are willing to invest billions of funds into the American infrastructure that could create jobs for the local.
The wind industry in Texas alone is responsible for more than 22,000 employments, both directly and indirectly. It is also responsible for a yearly lease payment to owners of land reaching over $60 million in 2016 alone.
The Institute for Energy Economics and Financial Analysis’ director of resource planning analysis, David Schlissel, the proposal will only benefit the coal industry. He added that under Obama’s administration this would not have been possible. They think that this is an unfortunate issue because there is a huge growth in solar and wind energy that locals are applying for TX Tax ID as they recognize the benefits to the state.