BOISE, Idaho — On Monday, Idaho State Representative, Jeff Ehlers (R-Meridian) introduced House Bill 317to the Revenue and Taxation Committee, which would tax the future development of commercial wind turbines in the State of Idaho. A "commercial wind turbine" is defined by the legislation as "a wind energy conversion system with a nameplate capacity of fifty (50) kilowatts or more that is designed, intended, or operated to generate electricity for sale, lease, or other commercial use"
The bill would be "a local tax on windmills," said Ehlers. He explained, "If the voters do not approve of such a project, an excise tax would be imposed on those wind turbines." If approved, the bill would require wind turbine developers to pay $25,000 for each vertical foot of build.
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Ehlers said that for the average wind turbine, the total build-out would require $2.5 million to be paid in excise tax. The money raised from this specific tax would go to the state tax commission to pay state refunds, then retained by the tax commission, and any excess would be paid into school district facilities, in that order.
In response to the bill's introduction, Representative Edward H. “Ted” Hill (R-District 14) asked Ehlers, "How big is that excise tax? Are we going to go gangster on it and really make it hardcore? That's what we want to hear."
The question drew laughs from the committee. Ehlers replied, "Not sure if I've ever been accused of going gangster."
"For the benefit of the committee, that qualifies as gangster in the eyes of the Chairman," commented Revenue and Tax Committee Chairman, David M. Cannon.
The bill comes on the heels of an executive order issued by President Trump that effectively halted the development of the Lava Ridge Wind Project, which would have seen around 400 wind turbines built on Bureau of Land Management property in Lincoln County. The Idaho Conservation League estimated that the project would provide power to approximately 325,000 homes in the Magic Valley.
The Idaho Legislature has since issued a joint memorial voicing continued opposition to the project.
Rep Steve Berch (D - Boise) expressed some skepticism regarding the bill. "I'm going to support the motion to have a hearing on this, but I must say that I'm a little bit concerned about the notion of taxing the free market out of doing things that are legal and I'm concerned about the precedent this might set in others as well," said Berch.
The bill will now receive an official hearing in committee.
