Press Release

UDALL: QUAY COUNTY WIND FARM ADVANCES 
FROM PASSAGE OF WIND ENERGY TAX INCENTIVE BILL

WASHINGTON - U.S. Representative Tom Udall (D-NM) is hailing House passage of legislation he has been pushing to extend tax breaks for wind and biomass electricity production. 

Under the Job Creation and Worker Assistance Act (H.R. 3090), which the House of Representatives today passed, the now-expired wind energy tax incentive would be extended for two years. Under law that expired last December, wind producers qualified for a tax credit, allowing them to take a 1.8-cent tax credit on each kilowatt-hour of energy generated. The credit has encouraged utilities to expand their investments in this power source and increase their reliance on clean, environmentally-sound infrastructure. Udall said that the measure not only encourages renewable energy, but is also beneficial to eastern New Mexico's economy.

"New Mexico stands to benefit from the passage of this wind energy tax incentive legislation," Udall explained. "We need to seize the opportunity that wind presents and make some real headway in the coming months and years. Doing so, will create new economic opportunities and jobs for our state."

Udall noted that Florida Power and Light Energy is currently surveying the possibility of bringing hundreds of windmills to Quay and De Baca Counties. When the tax extension becomes law, Udall said, the company will have another strong incentive to expand to the plains of New Mexico. 

Additionally, Udall praised the efforts of the New Mexico State Legislature and Governor Gary Johnson in approving legislation at the state level to expand renewable energy. The first, House Tax and Revenue Committee Substitute for House Bill 143, authorizes the statewide use of Industrial Revenue Bonds for the construction of renewable generation facilities, as well as an exemption from the gross receipts tax for the purchase of wind-power generation equipment.

The second, SB187/a, provides a production tax credit of $0.01 (one cent) per kilowatt hour generated, which credit is applicable against state corporate income tax. This measure complements the extension of the federal credit approved today, bringing the net cost of wind generation in line with fossil-source generation and allowing producers to sell into the market on a competitive basis.

"This is a wonderful example of the State-Federal partnership of government that I believe so strongly in. Combined, these measures provide incentives for both the construction of renewable source generation facilities, and position New Mexico to become a major producer of renewable electricity generation," Udall said.

According to Udall, a member of the House Resources Committee, the United States will produce 4,300 megawatts of wind energy this year. That's an increase of 1,700 megawatts over the 2,600 megawatts the nation produced last year.

Renewable, limitless and sustainable energy is an essential part of the nation's energy policy, Udall continued. "We need to take full advantage of the new technologies available to improve transmission capabilities. Congress needs to send the wind energy credit to President Bush as soon as possible and I want to see wind energy investments made in New Mexico as soon as possible. I pledge to help eastern New Mexico in seeing this dream turn into reality."

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