A proposal to stop paying refunds of Oklahoma’s wind tax credit is stuck in the legislative doldrums.
The Senate rejected House amendments to Senate Bill 888, which originally ended an ethanol tax credit. Many lawmakers, including Sen. Casey Murdock, were concerned about the effect cutting off refund payments for wind tax credits would have on Oklahoma’s reputation.
"Why in the world would we run legislation that kicks sand in the face of some of the largest investors not only in the United States but in the world and tell them we don’t want them playing in our sandbox?" Murdock said.
Senator AJ Griffin said making wind tax credits non-refundable could lead to higher electric rates, something that would hurt Oklahoma’s ability to compete economically with Texas.
"They’ve got 22 million people. We’ve got fewer than 4 million. They have all of the same natural assets that we do. We have to be able to complete, and we have long competed by providing some of the country’s least-expensive utility rates," Griffin said.
Sen. Marty Quinn said paying refunds to wind companies costs the state $70 million a year.
"It’s a subsidy, and we can’t afford it. How many times do we have to overlook that point?" Quinn said.
Though the Senate rejected the House’s changes to SB888, lawmakers may try to hammer out a compromise this week. Republican leaders have said SB888 would be their go-to if lawmakers couldn’t agree on a wind gross production tax.
